Document:

ex10-1.htm

RUBY TUESDAY, INC.

SALARY DEFERRAL PLAN

THIS INDENTURE is made on the 7th day of January, 2015, by Ruby Tuesday, Inc., a corporation duly organized and existing under the laws of the State of Georgia (hereinafter called the “Primary Sponsor”).

W I T N E S S E T H:

WHEREAS, the Primary Sponsor established by indenture dated June 1, 1968, the Morrison Employees Retirement Savings Trust (the “Plan”), which was first amended and restated, as the Morrison Restaurants Inc. Salary Deferral Plan, by indenture dated December 31, 1993, and which was further amended and restated, as the Ruby Tuesday, Inc. Salary Deferral Plan, by indenture dated April 8, 2001, and subsequently amended by the First through Seventh Amendments thereto and which was subsequently further amended and restated by indenture dated October 7, 2009 and subsequent amended by the First and Second Amendments thereto; and

WHEREAS, the Primary Sponsor now wishes to amend and restate the Plan primarily to consolidate changes made to the Plan that are required for resubmitting the Plan to the Internal Revenue Service for an updated favorable determination letter as a Cycle D filer; and

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

WHEREAS, the provisions of the Plan, as amended and restated herein, shall apply to Plan Years beginning on or after January 1, 2015, except to the extent the provisions are required to apply at an earlier date or to any other members to comply with applicable law;

NOW, THEREFORE, the Primary Sponsor does hereby amend and restate the Plan in its entirety, generally effective as of January 1, 2015, except as otherwise provided herein, to read as follows:

  

 

RUBY TUESDAY, INC.

SALARY DEFERRAL PLAN

 

	  	 	  	
PAGE

 

	
SECTION 1

 

	 	
DEFINITIONS

	
1

	
SECTION 2

	 	
ELIGIBILITY

 

	
13

	
SECTION 3

	 	
CONTRIBUTIONS

 

	
14

	
SECTION 4

	 	
ALLOCATIONS

 

	
19

	
SECTION 5

	 	
INVESTMENT FUNDS AND INVESTMENTS OF TRUST ASSETS

 

	
20

	
SECTION 6

	 	
PLAN LOANS

 

	
21

	
SECTION 7

	 	
IN-SERVICE WITHDRAWALS

 

	
24

	
SECTION 8

	 	
PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT

 

	
27

	
SECTION 9

	 	
PAYMENT OF BENEFITS ON RETIREMENT

 

	
30

	
SECTION 10

	 	
DEATH BENEFITS

 

	
31

	
SECTION 11

	 	
GENERAL RULES ON DISTRIBUTIONS

 

	
32

	
SECTION 12

	 	
ADMINISTRATION OF THE PLAN

 

	
33

	
SECTION 13

	 	
CLAIMS REVIEW PROCEDURE

 

	
36

	
SECTION 14

	 	
MISCELLANEOUS

 

	
39

	
SECTION 15

	 	
PROHIBITION AGAINST DIVERSION

 

	
41

	
SECTION 16

	 	
LIMITATION OF RIGHTS

 

	
41

	
SECTION 17

	 	
AMENDMENT TO OR TERMINATION OF THE PLAN AND THE TRUST

 

	
42

	
SECTION 18

	 	
ADOPTION OF PLAN BY AFFILIATES

 

	
43

	
SECTION 19

	 	
QUALIFICATION AND RETURN OF CONTRIBUTIONS

 

	
44

	
SECTION 20

	 	
SECTION 16 OF SECURITIES EXCHANGE ACT OF 1934

 

	
44

	
SECTION 21

	 	
INCORPORATION OF SPECIAL LIMITATIONS

 

	
45

	
APPENDIX A

	 	
LIMITATION ON ALLOCATIONS

 

	
A-1

	
APPENDIX B

	 	
TOP-HEAVY PROVISIONS

 

	
B-1

	
APPENDIX C

	 	
SPECIAL NONDISCRIMINATION RULES

 

	
C-1

	
APPENDIX D

 	 	MINIMUM DISTRIBUTION REQUIREMENTS 	D-1

  

 

SECTION 1

DEFINITIONS

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

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

  (a)   “Employee Deferred Account” which shall reflect a Participant’s interest in contributions made by a Plan Sponsor under Plan Section 3.1.

  (b)   “Company Matching Account” which shall be divided into the following two subaccounts:

    (1)           the “Pre-2007 Company Matching Subaccount” which reflects a Participant’s interest in matching contributions made by a Plan Sponsor under Plan Section 3.2 for Plan Years beginning prior to January 1, 2007; and

    (2)           the “Post-2006 Company Matching Subaccount” which reflects a Participant’s interest in matching contributions made by a Plan Sponsor under Plan Section 3.2 for Plan Years beginning after December 31, 2006.

 (c)     “Voluntary Contribution Account” which shall reflect a Participant’s interest in Voluntary Contributions made by a Participant to the Fund pursuant to Plan Section 3.3.

 (d)     “Rollover Account” which shall reflect a Participant’s interest in Rollover Amounts.

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

1.2   “Affiliate” means (a) any corporation which is a member of the same controlled group of corporations (within the meaning of Code Section 414(b)) as is a Plan Sponsor, (b) any other trade or business (whether or not incorporated) under common control (within the meaning of Code Section 414(c)) with a Plan Sponsor, (c) any other corporation, partnership or other organization which is a member of an affiliated service group (within the meaning of Code Section 414(m)) with a Plan Sponsor, and (d) any other entity required to be aggregated 

 

  

 -1-

 

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

1.3   “Annual Compensation” means an Employee’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 a Plan Sponsor and its Affiliates during a Plan Year to the extent that the amounts are includible in gross income (to the extent contemplated by Treasury Regulations Section 1.415-2(b), but limited to the extent contemplated by Treasury Regulations Section 1.415-2(c) (including amounts realized from the exercise of non-qualified stock options)), to the extent not in excess of the Annual Compensation Limit for all purposes under the Plan except for purposes of determining who are Highly Compensated Employees.  Notwithstanding the above, Annual Compensation shall be determined as follows:

(a)      Annual Compensation shall only include amounts received for the portion of the Plan Year during which the Employee was a Participant for purposes of (1) determining, with respect to each Plan Sponsor, the amount of contributions made by or on behalf of an Employee under Plan Section 3 and allocations under Plan Section 4, and (2) applying the provisions of Appendix C hereto for such Plan Years as the Secretary of the Treasury may allow;

(b)  for all purposes under the Plan, Annual Compensation shall not include reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation, and welfare benefits;

(c)     in determining the amount of contributions under Plan Section 3 and allocations under Plan Section 4 made by or on behalf of an Employee, Annual Compensation shall include tip income only to the extent of the greater of (1) the amount actually reported by the Employee to the Plan Sponsor, or (2) the amount the Plan Sponsor is required to report in accordance with Code Section 6053(c);

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

(e)     in accordance with Code Section 414(u)(12), Annual Compensation shall include any differential wage payment (within the meaning of Code Section 3401(h)(2)) made by a Plan Sponsor to an individual who does not currently perform services for the Plan Sponsor by reason of qualified military service (within the meaning of Code

 

  

 -2-

 

 Section 414(u)(5)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Plan Sponsor; and

(f)     for purposes of applying the annual addition limits in Appendix A, Annual Compensation:

(1)           shall be measured by the limitation year;

 

(2)           shall include compensation paid to the Participant by the later of (A) 21⁄2 months after the Participant’s severance from employment with the Plan Sponsor, or (B) the end of the limitation year that includes the date of the Participant’s severance from employment with the Plan Sponsor, if such compensation is regular compensation for services during the Participant’s regular working hours, or compensation for services outside the Participant’s regular working hours (such as overtime and shift differential), commissions, bonuses, or other similar payments, and the compensation would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Plan Sponsor; and

 

(3)           shall not include any other post-Termination of Employment compensation.

1.4   “Annual Compensation Limit” means $265,000 (for 2015), which amount may be adjusted in subsequent Plan Years based on changes in the cost of living as announced by the Secretary of the Treasury.

1.5   “Appeals Fiduciary” means an individual or group of individuals appointed to review appeals of claims for benefits payable due to a Participant’s Disability made pursuant to Plan Section 13.4.

1.6   “Beneficiary” means the person or trust that a Participant designated most recently in writing to the Plan Administrator; provided, however, that if the Participant has failed to make a designation, no person designated is alive, no trust has been established, or no successor Beneficiary has been designated who is alive, the term “Beneficiary” means (a) the Participant’s spouse or (b) if no spouse is alive, the Participant’s surviving children, or (c) if no children are alive, the Participant’s parent or parents, or (d) if no parent is alive, the Participant’s estate.  Notwithstanding the preceding sentence, the spouse of a married Participant shall be his Beneficiary unless that spouse has consented in writing to the designation by the Participant of some other person or trust and the spouse’s consent acknowledges the effect of the designation and is witnessed by a notary public or a Plan representative.  A Participant may change his designation at any time.  However, a Participant may not change his designation without further consent of his spouse under the terms of the preceding sentence unless the spouse’s consent permits designation of another person or trust 

 

  

 -3-

 

without further spousal consent and acknowledges that the spouse has the right to limit consent to a specific beneficiary and that the spouse voluntarily relinquishes this right.  Notwithstanding the above, the spouse’s consent shall not be required if the Participant establishes to the satisfaction of the Plan Administrator that the spouse cannot be located, if the Participant has a court order indicating that he is legally separated or has been abandoned (within the meaning of local law) unless a “qualified domestic relations order” (as defined in Code Section 414(p)) provides otherwise, or if there are other circumstances as the Secretary of the Treasury prescribes.  If the spouse is legally incompetent to give consent, consent by the spouse’s legal guardian shall be deemed to be consent by the spouse.  If, subsequent to the death of a Participant, the Participant’s Beneficiary dies while entitled to receive benefits under the Plan, the successor Beneficiary, if any, or the Beneficiary listed under Subsection (a) or, if no spouse is alive, Subsection (d) shall be the Beneficiary.

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

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

1.9   “Catch-Up Contribution” means contributions made pursuant to Code Section 414(v) and Section 3.1(c).

 

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

1.11         “Company Stock” means shares of any class of stock issued by the Primary Sponsor or any Affiliate and constituting “qualifying employer securities” within the meaning of ERISA Section 407(d)(3).

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

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

1.14     “Disability” means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.  The determination of whether or not a Disability exists shall be made by the Plan Administrator and shall be substantiated by competent medical evidence; provided, however, that the Plan Administrator may treat a Participant as being subject to a Disability if the Participant provides a copy of a valid determination by the U.S. Social Security Administration that the Participant is disabled under the federal Social Security Act.

  

 -4-

 

1.15     “Distributee” means an Employee or former Employee.  In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order (as defined in Code Section 414(p)), are Distributees with regard to the interest of the spouse or former spouse.  Effective for distributions made on and after January 1, 2008, a non-spouse Beneficiary of a deceased Participant who is either an individual or an irrevocable trust, where the beneficiaries of such trust are identifiable and the trustee provides the Plan Administrator with a final list of trust beneficiaries or a copy of the trust document by October 31 of the year following the Participant’s death, shall be a Distributee with regard to the interest of the deceased Participant, but only if the Eligible Rollover Distribution is transferred in a direct trustee-to-trustee transfer to an Eligible Retirement Plan which is an individual retirement account described in Code Section 408(a) or an individual retirement account described in Code Section 408(b) (other than an endowment contract).

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

(a)      any Deferral Amounts;

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

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

1.17   “Eligibility Service” means a six-consecutive-month period beginning on the date on which the Employee first performs an Hour of Service upon his employment or reemployment with the Plan Sponsor.

1.18  “Eligible Employee” means any Employee of a Plan Sponsor other than an Employee who is (a) covered by a collective bargaining agreement between a union and a Plan Sponsor, provided that retirement benefits were the subject of good faith bargaining, unless the collective bargaining agreement provides for participation in the Plan, (b) a leased employee within the meaning of Code Section 414(n)(2), (c) deemed to be an Employee of a Plan Sponsor pursuant to regulations under Code Section 414(o), or (d) a Highly Compensated Employee or an Employee who, as of the Employee’s date of hire, the Plan Administrator reasonably determines based on his then rate of pay will be a Highly Compensated Employee in one of the next two immediately subsequent Plan Years following the Plan Year of the Employee's date of hire.  A Participant who is first identified as a Highly Compensated Employee with respect to a Plan Year shall cease to be an Eligible Employee as soon as that identification can reasonably be

 

  

 -5-

 

made following the first day of that Plan Year.  In addition, no person who is initially classified by a Plan Sponsor as an independent contractor for federal income tax purposes shall be regarded as an Eligible Employee for that period, regardless of any subsequent determination that any such person should have been characterized as a common law employee of the Plan Sponsor for the period in question.

1.19  “Eligible Retirement Plan” means any of the following that will accept a Distributee’s Eligible Rollover Distribution:

(a)          an individual retirement account described in Code Section 408(a);

 

(b)          an individual retirement annuity described in Code Section 408(b) (other than an endowment contract);

(c)          an annuity plan described in Code Section 403(a) or an annuity contract described in Code Section 403(b), unless the Distributee is a non-spouse Beneficiary of a deceased Participant;

(d)          a qualified trust described in Code Section 401(a), unless the Distributee is a non-spouse Beneficiary of a deceased Participant;

(e)          an eligible plan under Code Section 457(b) which is maintained by a state or political subdivision of a state, or any agency or instrumentality of a state or political subdivision and which agrees to separately account for amounts transferred into such plan from this Plan, unless the Distributee is a non-spouse Beneficiary of a deceased Participant; or

 

(f)          effective January 1, 2008, to the extent permitted and in accordance with the rules applicable under Code Section 408A, a Roth individual retirement account described in Code Section 408A, unless the Distributee is a non-spouse Beneficiary of a deceased Participant.

If any portion of an Eligible Rollover Distribution is attributable to payments or distributions from a designated Roth account (as defined in Code Section 402A), an Eligible Retirement Plan with respect to such portion shall include only another designated Roth account and a Roth IRA.

1.20  “Eligible Rollover Distribution” means any distribution of all or any portion of the Distributee’s Account:

(a)          including any portion of the distribution that is not includable in gross income, provided such amount is distributed directly to one of the following:

 

  

 -6-

 

(1)           an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) (other than an endowment contract); or

(2)           a qualified trust as described in Code Section 401(a) or an annuity contract described in Code Section 403(b), but only to the extent that:

(A)           the distribution is made in a direct trustee-to-trustee transfer; and

(B)           the transferee trust or contract provides for separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution which is includable in income and the portion which is not includable in income; and

(b)           excluding:

(1)           any distribution that is one of a series of substantially equal periodic payments made (not less frequently than annually) 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 (10) years of more;

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

(3)           any distribution which is made upon hardship of the Employee;

(4)           except as otherwise provided in this Section, the portion of any distribution that is not includable in gross income (determined without regard to the exclusions for net unrealized appreciation with respect to employer securities); and

(5)           if the Distributee is a non-spouse Beneficiary of a deceased Participant, any distribution other than a direct trustee-to-trustee transfer to an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) (other than an endowment contract).

1.21 “Employee” means any person who is (a) a common law employee of a Plan Sponsor or an Affiliate, (b) a leased employee within the meaning of Code Section 414(n)(2) 

 

  

 -7-

 

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

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

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

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

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

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

(b)           received Annual Compensation in excess of $115,000 during the immediately preceding Plan Year (for determining Highly Compensated Employees for the 2015 Plan Year), which amount shall be adjusted for changes in the cost of living as provided in regulations issued by the Secretary of the Treasury, and was in the top-paid group of employees for such preceding year; or

(c)           is a former Employee who met the requirements of Subsection (a) or (b) at the time the former Employee separated from service with the Plan Sponsor or an Affiliate or at any time after the former Employee reached age 55.  The determination of who is a former Highly Compensated Employee is based on the rules applicable to determining Highly Compensated Employee status as in effect for that determination year in accordance with Treasury Regulation Section 1.414(q)-1T, Q&A-4 and Notice 97-45 or later guidance under the Code.

Pursuant to Code Section 414(q)(3), an Employee is in the top-paid group for any year if an Employee is in the group consisting of the top twenty percent (20%) of Employees of the Plan Sponsor ranked on the basis of Annual Compensation determined, without regard to the Annual Compensation Limit, paid to Employees during such year (the “top-paid group”).

 

  

 -8-

 

1.26  “Hour of Service” means:

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

(b)       Each hour for which an Employee is paid, or entitled to payment, by a Plan Sponsor or any Affiliate on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence;

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

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

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

(f)       The Plan Administrator shall credit Hours of Service in accordance with the provisions of Section 2530.200b-2(b) and (c) of the U.S. Department of Labor Regulations or such other federal regulations as may from time to time be applicable 

 

  

 -9-

 

and determine Hours of Service from the employment records of a Plan Sponsor or in any other manner consistent with regulations promulgated by the Secretary of Labor, and shall construe any ambiguities in favor of crediting Employees with Hours of Service.  Notwithstanding any other provision of this Section, in no event shall an Employee be credited with more than 501 Hours of Service during any single continuous period during which he performs no duties for the Plan Sponsor or Affiliate; and

(g)       In the event that a Plan Sponsor or an Affiliate acquires assets of another corporation or entity or a controlling interest of the stock of another corporation or merges with another corporation or entity and is the surviving entity, or if an Employee of a Plan Sponsor was previously employed by an entity that becomes under common control or ownership with the Plan Sponsor, as determined by the Board of Directors of the Plan Sponsor, then service of an Employee who was employed by the prior corporation or entity shall be counted in the manner provided, with the consent of the Primary Sponsor, in resolutions adopted by the Plan Sponsor which authorizes the counting of such service.

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

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

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

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

(b)        who

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

(2)      is not registered as an investment adviser under such Act by reason of paragraph (1) of Section 203A(a) of such Act, is registered as an investment adviser under the laws of the State (referred to in paragraph (1) of Section 203A(a) of such Act) in which it maintains its principal office and place of business, and, at the time the fiduciary last filed the registration form most recently filed by the fiduciary with such State in order to maintain the fiduciary’s registration under the laws of such State, also filed a copy of such form with the Secretary of Labor;

 

  

 -10-

 

(3)      is a bank as defined in the such Act; or

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

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

1.30  “Named Fiduciary” means only the following:

(a)  the Plan Administrator;

(b)  the Trustee;

(c)  the Investment Committee;

(d)  the Investment Manager; and

(e)  the Appeals Fiduciary.

1.31  “Normal Retirement Age” means age 65.

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

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

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

1.35  “Plan Year” means the calendar year.

1.36  “Retirement Date” means the date on which the Participant terminates employment on or after (a) attaining Normal Retirement Age or (b) becoming subject to a Disability.

1.37  “Required Beginning Date” has the meaning ascribed to it in Section 5 of Appendix D.

 

  

 -11-

 

1.38  “Rollover Amount” means any amount transferred to the Fund by a Participant, which amount qualifies as an eligible rollover distribution under Code Sections 401(a)(31), 402(c)(4), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), and any regulations issued thereunder.

1.39  “Termination Completion Date” means the last day an Employee or former Employee completes his fifth consecutive Break in Service.

1.40  “Termination of Employment” means a severance from employment (within the meaning of Code Section 401(k)(2)(B)(i)(I)) of an Employee from all Plan Sponsors and Affiliates for any reason other than death, Disability, or attainment of a Retirement Date.  Any absence from active employment of the Plan Sponsor and Affiliates by reason of an approved leave of absence shall not be deemed for any purpose under the Plan to be a Termination of Employment.  Transfer of an Employee from one Plan Sponsor to another Plan Sponsor or to an Affiliate shall not be deemed for any purpose under the Plan to be a Termination of Employment.  In addition, transfer of an Employee to another employer (other than a Plan Sponsor or an Affiliate) in connection with a corporate transaction involving a sale of assets, merger, or sale of stock, shall not be deemed to be a Termination of Employment, for purposes of the timing of distributions under Section 8.1, if the employer to which such Employee is transferred agrees with the Plan Sponsor to accept a transfer of assets from the Plan to its tax-qualified plan in a trust-to-trust transfer meeting the requirements of Code Section 414(l).

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

1.42  “Trustee” means the trustee under the Trust.

1.43  “Valuation Date” means each regular business day or any other day which the Plan Administrator declares to be a Valuation Date.

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

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

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

1.45  “Voluntary Contribution” means a non-deductible contribution to the Fund made by the Participant pursuant to Section 3.3.

 

  

 -12-

 

1.46  “Year of Service” means each successive twelve-month period of employment measured from a Participant’s employment anniversary date during which a Participant has completed no less than 1,000 Hours of Service.  If a Participant ceases to be an Employee and is subsequently reemployed by a Plan Sponsor, such Participant’s “Years of Service” shall not include any periods of service prior to such Participant’s reemployment.  Notwithstanding the foregoing, any individual who was an employee of Morrison Restaurants Inc. immediately prior to the effective date of the distributions by Morrison Restaurants Inc. to its stockholders of all of the outstanding shares of common stock, respectively, of Morrison Fresh Cooking, Inc. and Morrison Health Care, Inc., but who did not continue in the employ of Ruby Tuesday, Inc. immediately after such distributions, shall not be given credit for any Year of Service with Morrison Restaurants Inc. completed on or prior to the effective date of such distributions.

SECTION 2

ELIGIBILITY

2.1  General Rule. Each Eligible Employee shall become a Participant as of the first day of the first payroll period coinciding with or next following the later of the date he (a) completes his Eligibility Service or (b) attains age 21.

2.2  Current Participants. Each individual who was a Participant on December 31, 2014 shall continue to be a Participant as of January 1, 2015.

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

2.4  Former Employees Who Were not Participants. Each former Employee who completes his Eligibility Service but terminates employment with a Plan Sponsor before becoming a Participant shall become a Participant as of the latest of the date he (a) is reemployed, (b) would have become a Participant if he had not incurred a Termination of Employment, or (c) becomes an Eligible Employee.

2.5  Rollover Amount. Solely for the purpose of contributing a Rollover Amount to the Plan, an Eligible Employee who has not yet become a Participant pursuant to any other provision of this Section 2 shall become a Participant as of the date on which the Rollover Amount is contributed to the Plan.

2.6  Mergers and Acquisitions. In the event that an individual becomes an Eligible Employee of a Plan Sponsor by reason of (a) an acquisition by the Plan Sponsor of substantially all of the assets of a trade or business or a controlling interest in the ownership interests of another entity; or (b) a merger of the individual’s prior employer with and into the Plan 

 

  

 -13-

 

Sponsor, then any such individual who becomes an Eligible Employee may become a Participant on any earlier date than otherwise provided hereinabove, in the manner and subject to such conditions, if any, provided in resolutions adopted by the Plan Sponsor.

SECTION 3

CONTRIBUTIONS

3.1      Before-Tax Contributions.

(a)           Deferral Amounts.  The Plan Sponsor shall make a contribution to the Fund on behalf of each Participant who is an Eligible Employee and has elected to defer a portion of his Annual Compensation otherwise payable to him for the Plan Year and to have such portion contributed to the Fund.  Except to the extent permitted under Section 3.1(c), the contribution made by a Plan Sponsor on behalf of a Participant under this Section 3.1(a) shall be in an amount equal to the amount specified in the Participant’s deferral election, but not greater than fifty percent (50%) of the Participant’s Annual Compensation.  Pursuant to Section 4 of Appendix C, the Plan Administrator may further restrict the amount which Highly Compensated Employees may defer under this Section 3.1(a).

(b)           Limit on Deferral Amounts. Except to the extent permitted under Section 3.1(c), Elective Deferrals shall in no event exceed $18,000 (for 2015), as adjusted in future years by the Secretary of the Treasury (the “Code Section 402(g) limit”), in any one taxable year of the Participant.  In the event the amount of Elective Deferrals exceeds Code Section 402(g) limit, as adjusted, in any one taxable year then,

(1)           not later than the immediately following March 1, the Participant may designate to the Plan the portion of the Participant’s Deferral Amounts which consist of excess Elective Deferrals, and

(2)           not later than the immediately following April 15, the Plan may distribute the amount designated to it under Paragraph (1) above, as adjusted in accordance with Code Section 402(g) and applicable Treasury Regulations to reflect income, gain, or loss attributable to it, and reduced by any “Excess Deferral Amounts,” as defined in Appendix C hereto, previously distributed or recharacterized with respect to the Participant for the Plan Year beginning with or within that taxable year.

The payment of the excess Elective Deferrals, as adjusted and reduced, from the Plan shall be made to the Participant without regard to any other provision in the Plan.  In the event that a Participant’s Elective Deferrals exceed the Code Section 402(g) limit, as adjusted, in any one taxable year under the Plan and other plans of the Plan Sponsor and its Affiliates, the Participant shall be deemed to have designated for distribution 

 

  

 -14-

 

under the Plan the amount of excess Elective Deferrals, as adjusted and reduced, by taking into account only Elective Deferral amounts under the Plan and other plans of the Plan Sponsor and its Affiliates.

(c)           Catch-Up Contributions. A Participant who is eligible to contribute Deferral Amounts to the Plan and who has attained or will attain age fifty (50) on or before the last day of the Plan Year shall be eligible to elect to defer a portion of his Annual Compensation otherwise payable to him for the Plan Year and have such portion contributed to the Fund on his behalf as Catch-Up Contributions in excess of the limits on Deferral Amounts set forth in Section 3.1(b) or any limit otherwise established by the Plan Administrator with respect to Highly Compensated Employees under Section 3.1(a).  In addition, amounts contributed pursuant to Section 3.1(a) or this Section 3.1(c) may be treated as Catch-Up Contributions to the extent such amounts exceed any limit on Deferral Amounts that may be determined pursuant to Section 3 of Appendix C hereto (this limit and the limits in the preceding sentence being collectively referred to as the “Applicable Deferral Limits”).

 

Catch-Up Contributions made pursuant to this Section 3.1(c) by a Participant shall be in an amount equal to the amount specified in the Participant’s deferral agreement and may be made on a payroll period basis or an annual basis in accordance with the administrative procedures provided by the Plan Administrator, but shall in no event shall the contributions exceed $6,000 (for 2015) in any calendar year, as adjusted in future years by the Secretary of the Treasury (the “Code Section 414(v) limit”).

 

Contributions made pursuant to this Section 3.1(c) shall not be taken into account for purposes of implementing the limitations set forth in Section 3.1(b) and Appendix A hereto.  The Plan shall not be treated as failing to satisfy the provisions of Appendix B or Appendix C, as applicable, by reason of the making of the Catch-Up Contributions as described in this Section 3.1(c).

 

The portion of the contribution made by a Plan Sponsor under this Section 3.1(c) that will be treated as Catch-Up Contributions will be determined as of the last day of the Plan Year.  Amounts contributed by a Plan Sponsor pursuant to this Section 3.1(c) or recharacterized pursuant to Section 3 of Appendix C that do not exceed the Applicable Deferral Limits will not be treated as Catch-Up Contributions but will be treated as Deferral Amounts. Amounts contributed pursuant to this Section 3.1(c) or recharacterized pursuant to Section 3 of Appendix C that exceed the Applicable Deferral Limits will be treated as Catch-Up Contributions; provided, however, that the contribution under this Section 3.1(c) or any amounts recharacterized under Section 3 of Appendix C for any Participant shall not be treated as a Catch-Up Contribution to the extent that those amounts and all other Elective Deferrals of the Participant under the Plan and other plans of the Plan Sponsor and its Affiliates for the taxable year exceed the Participant’s Annual Compensation.

 

  

 -15-

 

The excess of the amounts treated as Catch-Up Contributions for a Participant under the Plan and other plans of the Plan Sponsor and its Affiliates over the Code Section 414(v) limit and amounts that are not treated as Catch-Up Contributions solely because they exceed the Participant’s Annual Compensation, will be distributed to the Participant in the same manner as Deferral Amounts are distributed pursuant to Section 3.1(b).

 

(d)           Deferral Elections.  The elections under this Section 3.1 must be made before the Annual Compensation is payable and may only be made in such manner and subject to such rules and limitations as the Plan Administrator may prescribe and shall specify the percentage or dollar amount, as applicable, of Annual Compensation that the Participant desires to defer pursuant to Section 3.1(a) and/or 3.1(c) and to have contributed to the Fund.  Once a Participant has made an election for a Plan Year, the Participant may revoke or modify his election to increase or reduce the rate of future deferrals, as provided in the administrative procedures established by the Plan Administrator.

 

3.2       Matching Contributions.  Effective January 1, 2013:

(a)           Each Plan Sponsor proposes to make matching contributions to the Fund in an amount equal to a discretionary percentage, to be determined by the Primary Sponsor, of a Participant’s Annual Compensation deferred by the Participant pursuant to Section 3.1(a), not to exceed the first six percent (6%) of such Annual Compensation, which matching contributions may vary based on classes of Participants and on the percentage of a Participant’s Deferral Amount being matched; provided that such contributions will be nondiscriminatory in accordance with the regulations under Code Section 401(a) and will not discriminate in favor of Highly Compensated Employees.   

(b)           In the case of a Participant who is identified as a Highly Compensated Employee during a Plan Year, the Plan Sponsor proposes to make a matching contribution on behalf of such Highly Compensated Employee, in liew of any matching contribution on behalf of such Highly Compensated Employee under Section 3.2(a), in an amount equal to the lowest percentage of a Participant's Deferral Amount for which a matching contribution under Section 3.2(a) is being made for an Participant.

(c)           For purposes of determining the amount of matching contributions to be credited to a Participant’s Company Matching Account, all or a portion of a Participant’s years of employment with a predecessor employer may be counted if the Participant became an Eligible Employee of a Plan Sponsor by reason of (1) an acquisition by the Plan Sponsor of the assets of a trade or business or a controlling interest in the ownership interests of another entity; or (2) a merger of the individual’s prior employer with and into the Plan Sponsor or an Affiliate; in the manner and subject to such conditions, if any, provided in resolutions adopted by the Plan Sponsor.

 

  

-16-

 

(d)           With respect to contributions under Subsections (a) and (b), the Primary Sponsor may, in its discretion: (1) make such contributions as of the last day of any time period specified by the Primary Sponsor, (which period may be no shorter than a payroll period and no longer than a Plan Year); and (2) require that a Participant be an Eligible Employee as of the last day of such period to be eligible to receive any such contribution.

3.3  Voluntary Contributions. Subject to such rules and limitations as the Plan Administrator may from time to time prescribe, each Participant who is an Eligible Employee may contribute as a Voluntary Contribution to the Fund an amount of his Annual

Compensation not in excess of ten percent (10%) of the Participant’s Annual Compensation for the Plan Year.  Voluntary Contributions shall be made to the Fund through regular payroll deductions or in such other manner as shall be agreed upon by each Participant and the Plan Administrator.  The Plan Administrator may, at any time, suspend the making of any further Voluntary Contributions.  The Plan Administrator shall revoke as soon as practicable any election in effect pursuant to this Section 3.3 with respect to a Participant who is identified as a Highly Compensated Employee with respect to the Plan Year.

3.4  Rollover Amounts. Any Eligible Employee may, with the consent of the Plan Administrator and subject to such rules and conditions as the Plan Administrator may prescribe, transfer a Rollover Amount to the Fund (which may include without limitation prohibitions against transferring certain categories of Rollover Amounts to the Plan); provided, however, that the Plan Administrator shall not administer this provision in a manner which is discriminatory in favor of Highly Compensated Employees.  Rollover amounts may not include amounts that would not be includable in the Employee’s gross income if such amounts were not rolled over.

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

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

SECTION 4

ALLOCATIONS

4.1  Allocation of Contributions. As soon as reasonably practicable following the date of withholding by the Plan Sponsor, if applicable, and receipt by the Trustee, Plan Sponsor contributions made on behalf of each Participant under Plan Sections 3.1 and 3.2, and Voluntary Contributions and Rollover Amounts contributed by the Participant, shall be allocated to the Employee Deferred Account, Company Matching Account, Voluntary Contribution Account and Rollover Account, respectively, of the Participant on behalf of whom the contributions were made.

 

  

 -17-

 

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

 

4.3  Allocation of Expenses.  Plan expenses that are payable from the Trust that are not paid by, or are reimbursable to, the Plan Sponsor may be allocated to Accounts in any manner (whether or not pro rata) permitted by ERISA and the Code and the rules and regulations promulgated thereunder.

SECTION 5

INVESTMENT FUNDS AND INVESTMENTS OF TRUST ASSETS

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

 

(a)     All investment directions of contributions shall be made in such multiples as prescribed by the Plan Administrator. Participants may change the investment of contribution to their Accounts in accordance with the procedures established by the Plan Administrator, but in no event less frequently than once per calendar quarter. New investment directions shall be effective as of the date that such directions are processed by the Plan Administrator in accordance with the procedures established for such purpose.

 

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

 

5.2  Directions to Transfer Between Individual Funds. A Participant and each Beneficiary of a deceased Participant may elect according to the procedures established by the Plan Administrator, to transfer, in such multiples as the Plan Administrator may prescribe, portions of his Account between Investment Funds.  A Participant and each Beneficiary of a deceased Participant shall have the right to make an election under this Section 5.2 no less frequently than once per calendar quarter.  An election under this Section 5.2 shall be effective

 

  

 -18-

 

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

5.3  Application of Elections. A Participant or Beneficiary of a deceased Participant who makes an election pursuant to Plan Section 5.1 or Plan Section 5.2 may apply the new investment direction to his current Account, all future contributions, or both his current Account and all future contributions, as applicable, except to the extent the Plan Administrator may otherwise prescribe.

 

5.4  Company Stock Fund.  One of the Investment Funds that shall be maintained is a Company Stock fund; provided that the Plan Administrator may impose any restrictions on investment or reinvestment in the Company Stock fund as it determines are appropriate.

 

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

5.6  Qualified Default Investment Alternative.  The Plan Administrator may establish a qualified default investment alternative.  A “qualified default investment alternative” shall mean a qualified default investment alternative as defined in regulations issued by the Department of Labor pursuant to ERISA Section 404(c)(5), or any successor thereto, that is designated by the Plan Administrator.  If all or a portion of the Account of a Participant or Beneficiary who fails to make an affirmative investment election as to such portion of the Participant’s Account is to be invested in the qualified default investment alternative, the Plan Administrator shall provide to such Participant or Beneficiary a notice explaining the Participant’s or Beneficiary’s right to designate how contributions and earnings will be invested and explaining how, in the absence of any investment election, such contributions will be invested and give the Participant or Beneficiary a reasonable period of time after receipt of such notice to make such designation, all in accordance with regulations issued by the U.S. Department of Labor pursuant to ERISA Section 404(c)(5) and shall provide such other information to the Participant or Beneficiary as may be required by such regulations.

SECTION 6

PLAN LOANS

6.1  Eligible Individuals. Subject to the provisions of the Plan and the Trust, each Participant who is an Employee shall have the right, subject to prior approval by the Plan 

 

  

 -19-

 

Administrator, to borrow from the Fund.  In addition, each “party in interest,” as defined in ERISA Section 3(14), who is (a) a Participant but no longer an Employee, (b) the Beneficiary of a deceased Participant, or (c) an alternate payee of a Participant pursuant to the provisions of a “qualified domestic relations order,” as defined in Code Section 414(p), shall also have the right, subject to prior approval by the Plan Administrator, to borrow from the Fund; provided, however, that loans to such parties in interest may not discriminate in favor of Highly Compensated Employees.

 

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

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

6.4  Interest Rate. Each loan shall bear a “reasonable rate of interest” and provide that the loan be amortized in substantially level payments, made no less frequently than quarterly, over a specified period of time.  A “reasonable rate of interest” shall be that rate that provides the Plan with a return commensurate with the interest rates charged by persons in the business of lending money for loans which would be made under similar circumstances.  Notwithstanding the foregoing, to the extent that any loan interest rate is subject to the provisions of the Servicemembers Civil Relief Act of 2003, it shall not exceed six percent (6%) per annum.

6.5  Security. Each loan shall be adequately secured, with the security for the outstanding balance of all loans to the borrower to consist of one-half (1⁄2) of the borrower’s interest in the Participant’s vested Account, or such other security as the Plan Administrator deems acceptable.  No portion of the Participant’s Employee Deferred Account shall be used as security for any loan hereunder unless and until such time as the loan amount exceeds the value of the borrower’s interest in the Participant’s vested amounts in all other Accounts.

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

(a)     $50,000, reduced by the excess, if any, of

 

  

 -20-

 

 

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

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

 

(b)      one-half (1⁄2) of the value of the borrower’s interest in the vested Account attributable to the Participant’s Account.

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

6.7  Loan Term. Each loan, by its terms, shall be repaid within five (5) years, except that any loan which is used to acquire any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as the principal residence of the borrower may, by its terms, be repaid within a longer period of time.

6.8  Minimum Amount. The Plan Administrator may impose a minimum loan amount.

6.9  Maximum Number of Loans. The Plan Administrator may limit the number of loans that a borrower may have existing under the Plan at any one time.

6.10    Default. The entire unpaid principal sum and accrued interest shall, at the option of the Plan Administrator, become due and payable if:

 

(a)      a borrower fails to make any loan payment when due (including the expiration of any applicable grace period);

 

(b)      a borrower ceases to be a “party in interest,” as defined in ERISA Section 3(14);

 

(c)      the vested Account held as security under the Plan for the borrower will, as a result of an impending distribution or withdrawal, be reduced to an amount less than the amount of all unpaid principal and accrued interest then outstanding under the loan; or

 

(d)      a borrower makes any untrue representations or warranties in connection with the obtaining of the loan.

 

  

 -21-

 

In that event, the Plan Administrator may take such steps as it deems necessary to preserve the assets of the Plan, including, but not limited to, the following: (1) direct the Trustee to deduct the unpaid principal sum, accrued interest, and any other applicable charge under the note evidencing the loan from any benefits that may become payable out of the Plan to the borrower, (2) direct the Plan Sponsor to deduct and transfer to the Trustee the unpaid principal balance, accrued interest, and any other applicable charge under the note evidencing the loan from any amounts owed by the Plan Sponsor to the borrower, or (3) liquidate the security given by the borrower, other than amounts attributable to a Participant’s Employee Deferred Account, and deduct from the proceeds the unpaid principal balance, accrued interest, and any other applicable charge under the note evidencing the loan.  If any part of the indebtedness under the note evidencing the loan is collected by law or through an attorney, the borrower shall be liable for attorneys’ fees in an amount equal to ten percent of the amount then due and all costs of collection.  Notwithstanding the foregoing, a loan may be satisfied upon a Participant’s termination of employment by distributing the note evidencing the debt as part of an Eligible Rollover Distribution; provided, however, that the Trustee, custodian or administrator for the Eligible Retirement Plan indicates its willingness to accept such property.

 

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

SECTION 7

IN-SERVICE WITHDRAWALS

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

     (a)  expenses for (or necessary to obtain) medical care that would be deductible by the Participant under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income);

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

 

  

 -22-

 

     (c)  payment of tuition, related educational fees, and room and board expenses, for up to the next twelve (12) months of post-secondary education for the Participant, or for his spouse, children or dependents (as defined in Code Section 152 and, for taxable years beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B));

 

     (d)  payments necessary to prevent the eviction of the Participant from his principal residence or foreclosure on the mortgage on the Participant’s principal residence;

     (e)  payments for burial or funeral expenses for the Participant’s deceased parent, spouse, children or dependents (as defined in Code Section 152 and, for taxable years beginning or after January 1, 2005, without regard to Code Section 152(d)(1)(B));

     (f)  expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income); or

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

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

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

     (2)           the Plan Sponsor shall not permit Elective Deferrals, including catch-up contributions as described in Code Section 414(v), or after-tax employee contributions to be made to the Plan or any other plan maintained by the Plan Sponsor, for a period of six (6) months after the Participant receives the withdrawal pursuant to this Section.

     (b)       the Plan Administrator relies on the Participant’s certification by execution of a form provided by the Plan Administrator, unless the Plan Administrator has actual knowledge to the contrary, that the need determined under Plan Section 7.1 cannot be relieved

 

  

 -23-

 

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

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

 

     (3)           by cessation of Elective Deferrals, or

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

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

7.3   Hardship Withdrawals on Account of Beneficiary Hardship.  To the extent provided in regulations issued by the Secretary of the Treasury, if an event would constitute “hardship” under Sections 7.1 and 7.2 if such event occurred with respect to a Participant’s spouse or dependent (as defined in Code Section 152), such event shall constitute “hardship” if it occurs with respect to a person who is a designated, primary Beneficiary with respect to the Participant.

7.4   Withdrawal of Rollover Amounts and Voluntary Contributions. Subject to the rules and conditions as the Plan Administrator may prescribe, by request, a Participant may receive a distribution as soon as administratively practicable of all or a portion of the balance of his Rollover Account and Voluntary Contribution Account.  Any request for a distribution under this Section shall be made on the forms and in the manner prescribed by the Plan Administrator and, if such request is granted, such distribution shall be made in a lump sum.

 

7.5   Special Rule for Distributions During Uniformed Services.  A Participant who is performing services in the uniformed services (as defined in Chapter 43 of Title 38 of the United States Code) while on active duty for a period of more than thirty (30) days shall be treated as having been severed from employment during such period for purposes of Code Section

 

  

 -24-

 

 401(k)(2)(B)(i)(I) and may elected to receive a distribution of all or a portion of his Employee Deferred Account, including Catch-Up Contributions.  Any request for a distribution under this Section must be made in the manner prescribed by the Plan Administrator and in accordance with rules and conditions as the Plan Administrator may from time to time adopt.  If a Participant elects a distribution pursuant to this Section, the Participant may not make Elective Deferrals, including Catch-Up Contributions, or Voluntary Contributions to the Plan or any other plan maintained by the Plan Sponsor during the six-month period beginning on the date of the distribution.

 

7.6   Age 591⁄2 Distributions.  Subject to the rules and conditions the Plan Administrator may prescribe that are not inconsistent with this Section, a Participant who has attained the age of at least 591⁄2 may elect to receive a distribution of all or a portion of his vested Account.  A Participant may only receive a distribution under this Section once per Plan Year.

 

SECTION 8

PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT

8.1           Time and Form of Payment.

(a)           In the event of a Termination of Employment, a Participant whose vested Account exceeds $5,000 may request that payment of his vested Account be made at any time after the Participant’s Termination of Employment occurs. Payment of a Participant’s Account shall be in the form elected by such Participant under Plan Section 8.1(b).  All payments will be made as soon as administratively feasible following a Participant’s request.  No distribution of the Participant’s Account will be made without his consent prior to his Required Beginning Date or death.

(b)   Payment of a Participant’s vested Account may be made in the form of a lump-sum payment in cash; provided, however, a Participant’s interest in the Investment Fund investing primarily in shares of Company Stock may be distributed in the form of whole shares of Company Stock if the Participant so elects, in the manner prescribed by the Plan Administrator.  Notwithstanding the foregoing, with respect to distributions made before January 1, 2010, a distribution in whole shares of Company Stock may be made only if the Participant’s interest in the Investment Fund investing primarily in shares of Company Stock equals or exceeds the value of hundred (100) shares of Company Stock.

(c)   In the event of a Termination of Employment, a Participant whose vested Account is $5,000 or less shall have his vested Account distributed as soon as administratively feasible thereafter, as follows:

(1)           for a Participant whose vested Account is $1,000 or less, such Participant shall have his Account balance distributed in a lump sum payment to the Participant; and

 

  

 -25-

 

(2)           for a Participant whose vested Account is greater than $1,000, but $5,000 or less, such Participant shall have his Account balance distributed to an individual retirement plan of a trustee or issuer designated by the Plan Administrator, unless the Participant elects in writing to have the payment made directly to the Participant or to another individual retirement plan.  The Plan Administrator shall notify the Participant in writing that the distribution may be transferred by the Participant to another individual retirement plan.

8.2           Valuation of Account.  The balance of a Participant’s Account which is to be paid under this Section 8 shall be determined as of the Valuation Date coinciding with or immediately preceding the date the Account is valued for imminent payout purposes pursuant to normal administrative procedures and shall be increased by any contributions allocated to the Participant’s Account after that Valuation Date and reduced by any distributions made from the Participant’s Account after that Valuation Date.

8.3           Changes to Vesting Schedule.  If a Plan amendment directly or indirectly changes the vesting schedule, the vesting percentage for each Participant in his Account accumulated to the date when the amendment is adopted shall not be reduced as a result of the amendment.  In addition, any Participant with at least three (3) years of Vesting Service may irrevocably elect to remain under the pre-amendment vesting schedule with respect to all of his benefits accrued both before and after the amendment, unless after the amendment, any such Participant’s nonforfeitable percentage at any time cannot be less than the Participant’s nonforfeitable percentage determined without regard to such amendment.

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

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

(a)   his Employee Deferred Account, Voluntary Contribution Account, Rollover Account, and his Pre-2007 Company Matching Subaccount which shall be fully vested and nonforfeitable at all times; and

(b)           his Post-2006 Company Matching Subaccount (other than the portion of his Company Matching Account attributable to Qualified Matching Contributions or Qualified Nonelective Contributions, both as defined in Appendix C, if any, which shall both be fully vested and nonforfeitable when made) computed according to the following vesting schedule:

 

  

 -26-

 

	 	 Full Years of 	 Percentage	 
	 	  Vesting Service 	  Vested 	 
	 	 Less than 3	  0%	 
	 	 3 or more 	  100%	 

 

(c)           Notwithstanding anything to the contrary in Subsection (b), any Employee who was eligible to participate in (whether or not actually contributing to) the RTI Franchise Management Association, Inc. 401(k) Plan (the “Franchise Plan”) who was less than 100% vested prior to the transfer of accounts from the Franchise Plan to this Plan (the “Franchise Plan Transfer”) (disregarding any acceleration of vesting, if any, approved by the RTI Franchise Management Association, Inc. in connection with the Franchise Plan Transfer) shall be vested in his Post-2006 Company Matching Subaccount attributable to Plan Sponsor contributions as follows:

 

	 	 Aggregated years of service under the	  	 
	 	 Franchise Plan and the Plan 	 Percentage Vested	 
	 	 Less than 1	  0%	 
	 	 1 	 20%	 
	 	 2 	 40%	 
	 	 3 or more	 100%	 

Any Participant in the Franchise Plan who was fully-vested under the Franchise Plan prior to the Franchise Plan Transfer (disregarding any acceleration of vesting, if any, approved by the RTI Franchise Management Association, Inc. in connection with the Franchise Plan Transfer) shall be fully-vested in his Post-2006 Company Matching Subaccount.  If an acceleration of vesting was approved by the RTI Franchise Management Association, Inc. in connection with the Franchise Plan Transfer, amounts transferred in connection with the Franchise Plan Transfer shall be vested to the extent of such acceleration.

8.6           Cash-out/Buyback.

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

(b)           If a Participant who has received (or has been deemed to have received) a distribution of the vested portion of his Account is reemployed by a Plan Sponsor or an Affiliate prior to his Termination Completion Date and (1) if the Participant’s Account was partially vested, and the Participant repays to the Fund no later than the fifth anniversary of the Participant’s reemployment by the Plan Sponsor or an Affiliate all of 

 

  

 -27-

 

that portion of his vested Account which was paid to him or (2) if the Participant’s Account was not vested upon his Termination of Employment, then any portion of his Account which was forfeited shall be restored effective on the Valuation Date coinciding with or next following the repayment or the Participant’s reemployment, respectively.  The restoration on any Valuation Date of the forfeited portion of the Account of a Participant pursuant to the preceding sentence shall be made first from forfeitures available for allocation on that Valuation Date, to the extent available, and secondly from contributions by the Plan Sponsor.  Only after restorations have been made shall the remaining net income be available for allocation under Section 4.

SECTION 9

PAYMENT OF BENEFITS ON RETIREMENT

9.1           Time and Form of Payment.

(a)           A retired Participant whose Account exceeds $5,000 may request that payment of his Account be made at any time after the Participant attains a Retirement Date.  All payments will be made as soon as administratively feasible following a Participant’s request.  No distribution of the Participant’s Account will be made without his consent prior to his Required Beginning Date or death.

(b)   A retired Participant whose Account is $5,000 or less shall have his vested Account distributed as soon as administratively feasible after the Participant attains a Retirement Date.

(c)           (1)           Payment of a Participant’s vested Account under subsection (a) or (b) above may be made in the form of a lump-sum payment in cash; provided, however, a Participant’s interest in the Investment Fund investing primarily in shares of Company Stock may be distributed in the form of whole shares of Company Stock if the Participant so elects, in the manner prescribed by the Plan Administrator.  Notwithstanding the foregoing, with respect to distributions made before January 1, 2010, a distribution in whole shares of Company Stock may be made only if the Participant’s interest in the Investment Fund investing primarily in shares of Company Stock equals or exceeds the value of hundred (100) shares of Company Stock

(2)           In the event a Participant attains a Retirement Date on or after attaining Normal Retirement Age, distribution of such Participant’s vested Account balance under subsection (b) above shall be made in the form of a lump sum payment to the Participant.

 

  

 -28-

 

(3)           In the event a Participant attains a Retirement Date prior to attaining Normal Retirement Age, distribution of such Participant’s vested Account under subsection (b) above shall be made as follows:

(A)           for a Participant whose vested Account is $1,000 or less, such Participant shall have his Account balance distributed in a lump sum payment to the Participant; and

 

(B)           for a Participant whose vested Account is greater than $1,000, but $5,000 or less, such Participant shall have his Account balance paid to an individual retirement plan of a trustee or issuer designated by the Plan Administrator, unless the Participant elects in writing to have the payment made directly to the Participant or to another individual retirement plan.  The Plan Administrator shall notify the Participant in writing that the distribution may be transferred by the Participant to another individual retirement plan.

9.2           Vesting; Valuation of Account.  The Account of a Participant who has attained a Retirement Date or has attained Normal Retirement Age shall be fully vested and nonforfeitable.  The balance of a Participant’s Account which is to be paid under this Section 9 shall be determined as of the Valuation Date coinciding with or immediately preceding the date the Account is valued for imminent payout purposes pursuant to normal administrative procedures and shall be increased by any contributions allocated to the Participant’s Account after that Valuation Date and reduced by any distributions made from the Participant’s Account after that Valuation Date.

SECTION 10

DEATH BENEFITS

10.1           Eligibility for Payment.  If a Participant dies before receiving a distribution of his vested Account, his Beneficiary shall receive the Participant’s vested Account in one lump sum as soon as administratively feasible following the death of the Participant or, if the Beneficiary so elects, at any later date permitted under Section 11.

10.2           Vesting.  The portion of the Participant’s Account that is vested shall be determined under Section 8 or 9, as applicable.

10.3           Death Benefits under USERRA.  In case of a Participant who dies while performing “qualified military service” (as defined in Code Section 414(u)(5)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan, if any, had the Participant resumed and then terminated employment on account of death.

 

  

 -29-

 

SECTION 11

GENERAL RULES ON DISTRIBUTIONS

11.1           Adjustments for Income. Accounts shall not be adjusted for earnings or losses incurred after the Valuation Date with respect to which the Account is valued for imminent payout purposes.  Prior to distribution of an Account, the Account shall be reduced by the amount necessary to satisfy the unpaid principal, accrued interest, and penalties on any loan made to the Participant.

11.2           Direct Rollovers.

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

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

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

(b)           Notwithstanding the foregoing, if the Distributee is a non-spouse Beneficiary of a deceased Participant and a direct trustee-to-trustee transfer is made to an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 409(b) (other than an endowment contract):

(1)    the transfer shall be treated as an Eligible Rollover Distribution;

 

  

 -30-

 

(2)    the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity (within the meaning of Code Section 408(d)(3)(C)); and

(3)    Code Section 401(a)(9)(B) (other than clause (iv) thereof) shall apply to such plan.

 

11.3           Required Minimum Distributions. Notwithstanding any other provisions of the Plan, distributions will be made in accordance with Code Section 401(a)(9) and the regulations issued thereunder, including the incidental benefit requirements, administered in accordance with the requirements of Appendix D hereto.

SECTION 12

ADMINISTRATION OF THE PLAN

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

12.2           Operation of the Plan Administrator.  The Primary Sponsor shall appoint a Plan Administrator.  If an organization is appointed to serve as the Plan Administrator, then the Plan Administrator may designate in writing one or more persons who may act on behalf of the Plan Administrator.  If more than one person is so designated with respect to the same administrative function, a majority of such persons shall constitute a quorum for the transaction of business and shall have the full power to act on behalf of the Plan Administrator.  The Primary Sponsor shall have the right to remove the Plan Administrator at any time by notice in writing.  The Plan Administrator may resign at any time by written notice of resignation to the Trustee and the Primary Sponsor.  Upon removal or resignation of the Plan Administrator, or in the event of the dissolution of the Plan Administrator, the Primary Sponsor shall appoint a successor.

12.3           Fiduciary Responsibility.

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

  (b)        The Plan Administrator and each other Fiduciary may employ persons to perform services and to render advice with regard to any of the Fiduciary’s

 

  

 -31-

 

 responsibilities under the Plan.  Charges for all such services performed and advice rendered may be paid by the Fund to the extent permitted by ERISA.

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

12.4           Duties of the Plan Administrator.

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

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

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

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

 

  

 -32-

 

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

 

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

12.7           Action by a Plan Sponsor.  Any action to be taken by a Plan Sponsor shall be taken by persons duly authorized by the Plan Sponsor, except, subject to Section 16.1, amendments to, termination of, or termination of a Plan Sponsor participation in, the Plan or the Trust, or the determination of the basis of any Plan Sponsor contributions, may be made only to the extent authorized by written resolution or written direction of the board of directors or appropriate governing body. Nothing herein shall be construed to prohibit the board of directors or appropriate governing body from delegating to any officer or other appropriate person of a Plan Sponsor the authority to take any such actions as may be specified in such resolution or written direction.

12.8           Appeals Fiduciary.  The Primary Sponsor shall appoint an Appeals Fiduciary.  The Appeals Fiduciary shall be required to review claims for benefits payable due to a Participant’s Disability that are initially denied by the Plan Administrator and for which the claimant requests a full and fair review pursuant to Section 13.4.  The Appeals Fiduciary may not be the individual who made the initial adverse determination with respect to any claim he reviews and may not be a subordinate of any individual who made the initial adverse determination.  The Appeals Fiduciary may be removed in the same manner in which appointed or may resign at any time by written notice of resignation to the Primary Sponsor.  Upon such removal or resignation, the Primary Sponsor shall appoint a successor.

12.9           Corrective Action.  Notwithstanding any provision of the Plan to the contrary, the Plan Sponsor may make corrective contributions, allocations, or distributions or take any other corrective action required to comply with, or otherwise permitted by, any program provided pursuant to applicable law, including without limitation the Employee Plans Compliance Resolution System or any successor guidance.

 

  

 -33-

 

SECTION 13

CLAIMS REVIEW PROCEDURE

13.1           Notice of Denial.  If a Participant or a Beneficiary is denied a claim for benefits under the Plan, the Plan Administrator shall provide to the claimant written notice of the denial within ninety (90) days (forty-five (45) days with respect to a denial of any claim for benefits due to the Participant’s Disability) after the Plan Administrator receives the claim, unless special circumstances require an extension of time for processing the claim.  If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day or 45-day period, as applicable.  In no event shall the extension exceed a period of ninety (90) days (thirty (30) days with respect to a claim for benefits due to the Participant’s Disability) from the end of such initial period.  With respect to a claim for benefits due to the Participant’s Disability, an additional extension of up to thirty (30) days beyond the initial 30-day extension period may be required for processing the claim.  In such event, written notice of the extension shall be furnished to the claimant within the initial 30-day extension period.  Any extension notice shall indicate the special circumstances requiring the extension of time, the date by which the Plan Administrator expects to render the final decision, the standards on which entitlement to benefits are based, the unresolved issues that prevent a decision on the claim and the additional information needed to resolve those issues.

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

(a)           the specific reasons for the denial;

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

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

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

(e)           in the case of a claim for benefits due to a Participant’s Disability, if an internal rule, guideline, protocol or other similar criterion is relied upon in making the adverse determination, either the specific rule, guideline, protocol or other similar criterion; or a statement that such rule, guideline, protocol or other similar criterion was 

 

  

 -34-

 

relied upon in making the decision and that a copy of such rule, guideline, protocol or other similar criterion will be provided free of charge upon request; and

(f)           in the case of a claim for benefits due to a Participant’s Disability, if a denial of the claim is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the denial, an explanation applying the terms of the Plan to the claimant’s medical circumstances or a statement that such explanation will be provided free of charge upon request.

 

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

(a)           request a full and fair review of the denial of the claim or determination that a domestic relations order is a qualified domestic relations order by written application to the Plan Administrator (or Appeals Fiduciary in the case of a claim for benefits payable due to a Participant’s Disability);

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

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

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

13.4           Application for Review.

(a)           If a claimant wishes a review of the decision denying his claim to benefits under the Plan, other than a claim described in Subsection (b) of this Section 13.4,  or if a claimant wishes to appeal a decision that a domestic relations order is a qualified domestic relations order, he must submit the written application to the Plan Administrator within sixty (60) days after receiving written notice of the denial or notice that the domestic relations order is a qualified domestic relations order.

(b)           If the claimant wishes a review of the decision denying his claim to benefits under the Plan due to a Participant’s Disability, he must submit the written application to the Appeals Fiduciary within one hundred eighty (180) days after receiving written notice of the denial.  With respect to any such claim, in deciding an 

 

  

 -35-

 

appeal of any denial based in whole or in part on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate), the Appeals Fiduciary shall:

(i)           consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment; and

 

(ii)           identify the medical and vocational experts whose advice was obtained on behalf of the Plan in connection with the denial without regard to whether the advice was relied upon in making the determination to deny the claim.

Notwithstanding the foregoing, the health care professional consulted pursuant to this Subsection (b) shall be an individual who was not consulted with respect to the initial denial of the claim that is the subject of the appeal or a subordinate of such individual.

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

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

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

13.8           Decision on Review.  No later than sixty (60) days (forty-five (45) days with respect to a claim for benefits due to the Participant’s Disability) following the receipt of the written application for review, the Plan Administrator or the Appeals Fiduciary, as applicable, shall submit its decision on the review in writing to the claimant involved and to his representative, if any, unless the Plan Administrator or Appeals Fiduciary determines that special circumstances (such as the need to hold a hearing) require an extension of time, to a day no later than one hundred twenty (120) days (ninety (90) days with respect to a claim for benefits due to the Participant’s Disability) after the date of receipt of the written application for review.  If the Plan Administrator or Appeals Fiduciary determines that the extension of time is required, the Plan Administrator or Appeals Fiduciary shall furnish to the claimant written 

 

  

 -36-

 

notice of the extension before the expiration of the initial sixty (60) day (forty-five (45) days with respect to a claim for benefits due to the Participant’s Disability) period.  The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator or Appeals Fiduciary expects to render its decision on review.  In the case of a decision adverse to the claimant, the Plan Administrator or Appeals Fiduciary shall provide to the claimant written notice of the denial which shall include:

(a)           the specific reasons for the decision;

 

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

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

(d)           a statement describing any available voluntary appeal procedures (if any) and of the claimant’s right to obtain information about such procedures as required by ERISA and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA following the denial of the claim upon review;

(e)           in the case of a claim for benefits due to the Participant’s Disability, if an internal rule, guideline, protocol or other similar criterion is relied upon in making the adverse determination, either the specific rule, guideline, protocol or other similar criterion; or a statement that such rule, guideline, protocol or other similar criterion was relied upon in making the decision and that a copy of such rule, guideline, protocol or other similar criterion will be provided free of charge upon request;

(f)           in the case of a claim for benefits due to a Participant’s Disability, if a denial of the claim is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the denial, an explanation applying the terms of the Plan to the claimant’s medical circumstances or a statement that such explanation will be provided free of charge upon request; and

(g)           in the case of a claim for benefits due to a Participant’s Disability, a statement regarding the availability of other voluntary alternative dispute resolution options.

SECTION 14

MISCELLANEOUS

14.1           Anti-Alienation.  No benefit which shall be payable under the Plan to any person shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, 

 

  

 -37-

 

encumbrance or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person, nor shall it be subject to attachment or legal process for, or against, such person, and the same shall not be recognized under the Plan, except to such extent as may be required by law.  Notwithstanding the above, this Section shall not apply to a “qualified domestic relations order” (as defined in Code Section 414(p)), and benefits may be paid pursuant to the provisions of such an order.  The Plan Administrator shall develop procedures (in accordance with applicable federal regulations) to determine whether a domestic relations order is qualified, and, if so, the method and the procedures for complying therewith.  In addition, a distribution to an “alternate payee” (as defined in Code Section 414(p)) shall be permitted if such distribution is authorized by a qualified domestic relations order, even if the affected Participant has not yet separated from service and has not yet reached the “earliest retirement age” (as defined in Code Section 414(p)).

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

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

 

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

 

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

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

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

14.3           Withholding of Payments.  If any person who shall be entitled to any benefit under the Plan shall become bankrupt or shall attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge such benefit under the Plan, then the payment of any such benefit in the event a Participant or Beneficiary is entitled to payment shall, in the discretion of the Plan Administrator, cease and terminate and in that event the Trustee shall hold or apply the same for the benefit of such person, his spouse, children, other dependents or any of them in such manner and in such proportion as the Plan Administrator shall determine.

 

  

 -38-

 

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

 

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

SECTION 15

PROHIBITION AGAINST DIVERSION

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

SECTION 16

LIMITATION OF RIGHTS

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

 

  

 -39-

 

SECTION 17

AMENDMENT TO OR TERMINATION OF THE

PLAN AND THE TRUST

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

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

17.3           Plan Termination.

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

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

17.4           Payments Upon Plan Termination.  In the event of the termination of the Plan or the Trust with respect to a Plan Sponsor, the Accounts of the Participants with respect to the Plan as adopted by such Plan Sponsor shall be distributed in lump sum payments in accordance 

 

  

 -40-

 

with the applicable distribution provisions of the Plan pursuant to the instructions of the Plan Administrator; provided that the Trustee shall not be required to make any distribution until it receives a copy of an Internal Revenue Service determination letter to the effect that the termination does not affect the qualified status of the Plan or the exempt status of the Trust or, in the event that such letter is applied for and is not issued, until the Trustee is reasonably satisfied that adequate provision has been made for the payment of all taxes which may be due and owing by the Trust.

 

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

17.6           Accrued Benefit Not to be Decreased by Amendment.  Notwithstanding any other provision of the Plan, an amendment to the Plan –

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

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

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

SECTION 18

ADOPTION OF PLAN BY AFFILIATES

Any corporation or other business entity related to the Primary Sponsor by function or operation and any Affiliate, if the corporation, business entity or Affiliate is authorized to do so by written direction adopted by the Board of Directors, may adopt the Plan and the related Trust by action of the board of directors or other appropriate governing body of such corporation, business entity or Affiliate.  Any adoption shall be evidenced by certified copies of the resolutions of the foregoing board of directors or governing body indicating the adoption and by the execution of the Trust by the adopting corporation, or business entity or Affiliate.  The resolution shall state and define the effective date of the adoption of the Plan by the Plan Sponsor and, for the purpose of Code Section 415, the “limitation year” as to such Plan Sponsor.  Notwithstanding the foregoing, however, if the Plan and Trust as adopted by an Affiliate or 

 

  

 -41-

 

other corporation or business entity under the foregoing provisions shall fail to receive the initial approval of the Internal Revenue Service as a qualified Plan and Trust under Code Sections 401(a) and 501(a), any contributions by the Affiliate or other corporation or business entity after payment of all expenses will be returned to such Plan Sponsor free of any trust, and the Plan and Trust shall terminate, as to the adopting Affiliate or other corporation or business entity.

SECTION 19

QUALIFICATION AND RETURN OF CONTRIBUTIONS

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

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

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

SECTION 20

SECTION 16 OF SECURITIES EXCHANGE ACT OF 1934

Notwithstanding any other provision of this Plan, to the extent required, the persons subject to the reporting requirements of Section 16 of the Securities Exchange Act of 1934 shall be subject to such withdrawal, investment and other restrictions necessary to satisfy Rule 16b-3 promulgated under such Act.  This Section 20 is intended to comply with Rule 16b-3 and shall be effective only to the extent required by such rule and shall be interpreted and administered in accordance with such rule.

 

  

 -42-

 

SECTION 21

INCORPORATION OF SPECIAL LIMITATIONS

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

 

WHEREOF, the Primary Sponsor has caused this indenture to be executed as of the date first above written.

RUBY TUESDAY, INC.

By: /s/ James J. Buettgen

James J. Buettgen

President, Chairman, and Chief Executive Officer

ATTEST:

/s/ Brian Wanamaker

Brian Wanamaker

Assistant Secretary

  

 -43-

 

APPENDIX A

LIMITATION ON ALLOCATIONS

SECTION 1

Except to the extent permitted under Plan Section 3.1(c) and Code Section 414(v), if applicable, the ‘annual addition’ for any Participant for any one limitation year may not exceed the lesser of:

(a)           $53,000 (for the 2015 Plan Year), as adjusted under Code Section 415(d); or

(b)           100% of the Participant’s Annual Compensation (as modified by this Appendix A).

 

 

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

SECTION 2

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

(b)           Participant contributions shall be determined without regard to:

(1)           Rollover Amounts;

(2)           repayments of loans made to a Participant from a plan;

(3)           catch-up contributions as described in Code Section 414(v);

(4)           repayments of amounts described in Code Section 411(a)(7)(B) (in accordance with Code Section 411(a)(7)(C)) and Section 411(a)(3)(D) or repayments of contributions to a governmental plan (as defined in Code Section 414(d)) as described in Code Section 415(k)(3);

 

  

 A-1

 

(5)           repayments that would have been described in Paragraph (4) except that the plan to which such repayment is being made does not restrict the timing of repayments to the maximum extent permitted by Code Section 411(a);

(6)           employee contributions to a qualified cost of living arrangement within the meaning of Code Section 415(k)(2)(B); and

(7)           employee contributions to a simplified employee pension plan which are excludable from gross income under Code Section 401(k)(6).

SECTION 3

For purposes of this Appendix A, the term “limitation year” shall mean a Plan Year.

SECTION 4

For purposes of applying the limitations of this Appendix A, all defined contribution plans maintained or deemed to be maintained by a Plan Sponsor shall be treated as one defined contribution plan, and all defined benefit plans now or previously maintained or deemed to be maintained by a Plan Sponsor shall be treated as one defined benefit plan.  In the event any corrective actions are required to be taken with respect to this Plan or with respect to another defined contribution plan pursuant to any program described in Section 12.9 of this Plan as a result of the annual additions of a Participant exceeding the limitations set forth in Section 1 of this Appendix A and Code Section 415, because of the Participant’s participation in more than one defined contribution plan, such actions shall be taken first with regard to this Plan.

SECTION 5

The provisions of this Appendix A shall be construed in a manner consistent with the provisions of final Treasury Regulations issued under Code Section 415 and any successor guidance.

  

 A-2

 

APPENDIX B

TOP-HEAVY PROVISIONS

 

 

SECTION 1

 

 

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

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

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

(1)           an officer of the Plan Sponsor or any Affiliate whose Annual Compensation was greater than $170,000 (as adjusted for changes in the cost of living as provided in regulations issued by the Secretary of the Treasury for Plan Years) for the calendar year in which the Plan Year ends, where the term “officer” means an administrative executive in regular and continual service to the Plan Sponsor or an Affiliate; provided, however, that in no event shall the number of officers exceed the lesser of (A) fifty (50) employees; or (B) the greater of (I) three (3) employees or (II) ten percent (10%) of the number of Employees during the Plan Year, with any non-integer being increased to the next integer.  If for any year, no officer of the Plan Sponsor meets the requirements of this Paragraph (1), the highest paid officer of the Plan Sponsor for the Plan Year shall be considered an officer for purposes of this Paragraph (1);

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

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

For purposes of determining ownership under Paragraphs (2) and (3) above, the rules set forth in Code Section 318(a)(2) shall be applied as follows (i) in the case of any Plan Sponsor or Affiliate which is a corporation, by substituting five percent (5%) for fifty percent (50%) and, (ii) in the case of any Plan Sponsor or Affiliate which is not a 

 

  

 B-1

 

corporation, ownership shall be determined in accordance with Treasury Regulations which shall be based on principles similar to the principles of Code Section 318 (modified as described in Clause (i) above).

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

(c)           “Required Aggregation Group” means:

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

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

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

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

(i)           the present value of the cumulative Accounts (excluding catch-up contributions as described in Code Section 414(v) made in the Plan Year in which the determination is being made) under the Plan for all Key Employees exceeds sixty percent (60%) of the present value of the cumulative Accounts (excluding catch-up contributions as described in Code Section 414(v) for the current Plan Year) under the Plan for all Participants; and

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

(I)           any Required Aggregation Group, and

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

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

 

  

 B-2

 

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

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

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

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

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

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

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

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

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

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

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

 

  

 B-3

 

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

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

 

  

 B-4

 

(C)           For purposes of determining the present value of the cumulative accrued benefit under a plan for any Participant in accordance with this Subsection, the present value shall be increased by the aggregate distributions made with respect to the Participant (including distributions paid on account of death to the extent they do not exceed the present value of the cumulative accrued benefit existing immediately prior to death) under each plan being considered, and under any terminated plan which if it had not been terminated would have been in a Required Aggregation Group with the Plan, during the one-year period ending on the Determination Date or the last day of the Plan Year that falls within the calendar year in which the Determination Date falls.  In the case of a distribution made with respect to a Participant made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting a five-year period for the one-year period.

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

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

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

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

(ii)           in the case of a “related rollover” (as defined below) between plans which qualify under Code Section 401(a), 

 

  

 B-5

 

(a) the plan providing the distribution shall not count the distribution as a distribution under Subparagraph (C) of this Paragraph (3), and (b) the plan accepting the distribution shall consider the distribution part of the accrued benefit under this Section.

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

 

 

SECTION 2

 

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

(b)           (1)           The percentage referred to in Subsection (a) of this Section for any Plan Year shall not exceed the percentage at which allocations are made or are required to be made under the Plan for the Plan Year for the Key Employee for whom the percentage is highest for a Plan Year.  For purposes of this Paragraph, an allocation to the Account of a Key Employee resulting from any Plan Sponsor contribution attributable to a salary reduction or similar agreement shall be taken into account but allocations of catch-up contributions as described in Code Section 414(v) shall not be taken into account.

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

 

  

 B-6

 

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

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

 

SECTION 3

 

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

 

	 	Full Years of 	Percentage	 
	 	Vesting Service 	Vested 	 
	 	Less than 3	0%	 
	 	3 or more 	100%	 

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

SECTION 4

Notwithstanding anything in the Plan to the contrary, this Appendix shall only apply to the extent required by Code Section 416 including, without limitation, Code Section 416(i)(4).

  

 B-7

 

APPENDIX C

SPECIAL NONDISCRIMINATION RULES

 

SECTION 1

 

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

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

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

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

(d)           “Qualified Matching Contributions” means Matching Contributions of the Plan Sponsor or an Affiliate to the Employee Deferred Account of a Participant who is not a Highly Compensated Employee which are immediately nonforfeitable when made, and which would be nonforfeitable, regardless of the age or service of the Employee or whether the Employee is employed on a certain date, and which may not be distributed, except upon one of the events described under Section 401(k)(2)(B) of the Code and the regulations thereunder.

(e)           “Qualified Nonelective Contributions” means contributions of the Plan Sponsor or an Affiliate to the Employee Deferred Account of a Participant who is not a Highly Compensated Employee, other than Matching Contributions or Elective Deferrals, which are nonforfeitable when made, and which would be nonforfeitable regardless of the age or service of the Employee or whether the Employee is employed on a certain date, and which may not be distributed, except upon one of the events described under Code Section 401(k)(2)(B) and the regulations thereunder.

SECTION 2

 

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

 

  

 C-1

 

(a)           the actual deferral percentage for the Highly Compensated Eligible Participants for the Plan Year must not be more than the actual deferral percentage of all other Eligible Participants for the preceding Plan Year multiplied by 1.25; or

(b)           the excess of the actual deferral percentage for the Highly Compensated Eligible Participants for the Plan Year over that of all other Eligible Participants for the preceding Plan Year must not be more than two (2) percentage points, and the actual deferral percentage for the Highly Compensated Eligible Participants for the Plan Year must not be more than the actual deferral percentage of all other Eligible Participants for the preceding Plan Year multiplied by two (2).

The “actual deferral percentage” for the Highly Compensated Eligible Participants and all other Eligible Participants for a Plan Year is the average in each group of the ratios, calculated separately for each Employee, of the Deferral Amounts contributed by the Plan Sponsor on behalf of an Employee for the Plan Year to the Annual Compensation of the Employee in the Plan Year.  In addition, for purposes of calculating the “actual deferral percentage” as described above, Deferral Amounts of Employees who are not Highly Compensated Employees which are prohibited by Code Section 401(a)(30) shall not be taken into consideration.  Except to the extent limited by Treasury Regulations Section 1.401(k)-2(a)(6) and any other applicable regulations promulgated by the Secretary of the Treasury, all or part of the Qualified Matching Contributions and Qualified Nonelective Contributions (other than Qualified Nonelective Contributions that are treated as Matching Contributions pursuant to Section 5 of Appendix C) made pursuant to the Plan may be treated as Deferral Amounts for purposes of determining the “actual deferral percentage.”

The Plan Sponsor may in its sole discretion contribute Qualified Nonelective Contributions or Qualified Matching Contributions with respect to a Plan Year, provided the contributions are made no later than the last day of the Plan Year following the Plan Year for which the Qualified Nonelective Contributions or Qualified Matching Contributions are made.

 

SECTION 3

 

If the Deferral Amounts contributed on behalf of any Highly Compensated Eligible Participant exceed the amount permitted under the “actual deferral percentage” test described in Section 2 of this Appendix C for any given Plan Year, then before the end of the Plan Year following the Plan Year for which the Excess Deferral Amount was contributed, (a) the portion of the Excess Deferral Amount for the Plan Year attributable to a Highly Compensated Eligible Participant, as adjusted in accordance with Code Section 401(k) and applicable Treasury Regulations and reduced by any excess Elective Deferrals as determined pursuant to Section 3.1 previously distributed to a Participant for the Participant’s taxable year ending with or within the Plan Year, may be distributed to the Highly Compensated Eligible Participant or (b) to the extent provided in regulations issued by the Secretary of the Treasury, the Plan Administrator

 

  

 C-2

 

 may permit the Participant to elect, within two and one-half months after the end of the Plan Year for which the Excess Deferral Amount was contributed, to treat the Excess Deferral Amount, unadjusted for earnings, gains, and losses, but as so reduced, as an amount distributed to the Participant and then contributed as an after-tax contribution by the Participant to the Plan (“recharacterized amounts”).  The income, gain, or loss allocable to such Excess Deferral Amount shall be determined in a similar manner as described in Section 4.2 of the Plan or in any other manner permitted by applicable Treasury Regulations.  The Excess Deferral Amount to be distributed or recharacterized shall be reduced by Deferral Amounts previously distributed or recharacterized for the taxable year ending in the same Plan Year, and shall also be reduced by Deferral Amounts previously distributed or recharacterized for the Plan Year beginning in such taxable year.  For all other purposes under the Plan other than this Appendix C recharacterized amounts shall continue to be treated as Deferral Amounts.  The portion of the Matching Contribution on which such Excess Deferral Amount was based shall be forfeited upon the distribution or recharacterization, as the case may be, of such Excess Deferral Amount.

Notwithstanding the foregoing, if the Plan satisfies the actual deferral percentage test through correction by distribution of Excess Deferral Amounts for any Plan Year, any Excess Deferral Amounts attributable to a Highly Compensated Eligible Participant who is eligible to make Catch-Up Contributions, shall be retained in the Plan and treated as Catch-Up Contributions under the Plan.  To the extent that the Excess Deferral Amount would exceed the applicable dollar amount specified in Code Section 414(v), as adjusted, such amount shall be distributed in accordance with Subsection (b), below, of this Section 3.

 

    (a)    For purposes of this Section 3, “Excess Deferral Amount” means, with respect to a Plan Year, the excess of:

 

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

 

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

(b)   Distribution of the Excess Deferral Amount for any Plan Year shall be made to Highly Compensated Eligible Participants on the basis of the dollar amount of Deferral Amounts attributable to each Highly Compensated Eligible Participant. The Plan Sponsor shall determine the amount of Excess Deferral Amounts which shall be distributed to each Highly Compensated Eligible Participant as follows. 

 

  

 C-3

 

(1)    The Deferral Amounts allocated to the Highly Compensated Eligible Participant with the highest dollar amount of Deferral Amounts for the Plan Year shall be reduced by the amount required to cause that Highly Compensated Eligible Participant’s remaining Deferral Amounts for the Plan Year to be equal to the dollar amount of the Deferral Amounts allocated to the Highly Compensated Eligible Participant with the next highest dollar amount of Deferral Amounts for the Plan Year. This amount is then distributed to the Highly Compensated Eligible Participant with the highest dollar amount of Deferral Amounts, unless a smaller reduction, when added to the total dollar amount already distributed pursuant to this Paragraph (1), equals the total Excess Deferral Amounts.

 

(2)     If the total amount distributed under Paragraph (1) of this Section 3(b) is less than the total Excess Deferral Amounts, the procedure in Paragraph (1) shall be successively repeated until the total dollar amount distributed is equal to the total Excess Deferral Amounts attributable to Highly Compensated Eligible Participants.

 

If a distribution of the Excess Deferral Amounts attributable to the Highly Compensated Eligible Participants is made in accordance with Paragraphs (1) and (2) of this Section, the limitations in Section 2 of this Appendix C shall be treated as being met regardless of whether the actual deferral percentage, if recalculated after such distributions, would have satisfied the requirements of Section 2.

 

SECTION 4

 

The Plan Administrator shall have the responsibility of monitoring the Plan’s compliance with the limitations of this Appendix C and shall have the power to take all steps it deems necessary or appropriate to ensure compliance, including, without limitation, restricting the amount which Highly Compensated Eligible Participants can elect to have contributed pursuant to Plan Section 3.1(a).  Any actions taken by the Plan Administrator pursuant to this Section 4 shall be pursuant to non-discriminatory procedures consistently applied.

 

SECTION 5

 

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

(a)           The contribution percentage for Highly Compensated Eligible Participants for the Plan Year must not exceed 125% of the contribution percentage for all other Eligible Participants for the preceding Plan Year; or

 

  

 C-4

 

(b)           The contribution percentage for Highly Compensated Eligible Participants for the Plan Year must not exceed the lesser of (1) 200 % of the contribution percentage for all other Eligible Participants for the preceding Plan Year, and (2) the contribution percentage for all other Eligible Participants for the preceding Plan Year plus two (2) percentage points.

Notwithstanding the foregoing, for purposes of this Section 5, the terms Highly Compensated Eligible Participant and Eligible Participant shall not include any Participant who is not eligible to receive a Matching Contribution under the provisions of the Plan, other than as a result of the Participant failing to contribute to the Plan or failing to have an Elective Deferral contributed to the Plan on the Participant’s behalf.  Notwithstanding the foregoing, if Qualified Matching Contributions are taken into account for purposes of applying the test contained in Section 2 of this Appendix C, they shall not be taken into account under this Section 5.  The “contribution percentage” for Highly Compensated Eligible Participants and for all other Eligible Participants for a Plan Year shall be the average of the ratios, calculated separately for each Participant, of (A) to (B), where (A) is the amount of Matching Contributions under the Plan (excluding Qualified Matching Contributions which are used to apply the test set forth in Section 2 of this Appendix C) and nondeductible employee contributions made under the Plan for the Eligible Participant for the Plan Year, and where (B) is the Annual Compensation of the Eligible Participant for the Plan Year.  Except to the extent limited by Treasury Regulations Section 1.401(m)-2(a)(6) and any other applicable regulations promulgated by the Secretary of the Treasury, a Plan Sponsor may elect to treat Deferral Amounts and Qualified Nonelective Contributions as Matching Contributions for purpose of determining the “contribution percentage,” provided the Deferral Amounts, excluding those treated as Matching Contributions, satisfy the test set forth in Section 2 of Appendix C.

The Plan Sponsor may in its sole discretion contribute Qualified Nonelective Contributions or Qualified Matching Contributions with respect to a Plan Year, provided the contributions are made no later than the last day of the Plan Year following the Plan Year for which the Qualified Nonelective Contributions or Qualified Matching Contributions are made. Notwithstanding the foregoing, Qualified Nonelective Contributions and Qualified Matching Contributions that are taken into account for purposes of applying the test contained in Section 2 of this Appendix C shall not be taken into account under this Section 5.

 

SECTION 6

If either (a) the Matching Contributions and, if taken into account under Section 5 of this Appendix C, the Deferral Amounts, Qualified Nonelective Contributions and/or Qualified Matching Contributions made on behalf of Highly Compensated Eligible Participants, or (b) the nondeductible employee contributions made by Highly Compensated Eligible Participants exceed the amount permitted under the “contribution percentage test” for any given Plan Year,

 

  

 C-5

 

 then, before the close of the Plan Year following the Plan Year for which the Excess Aggregate Contributions were made, the amount of the Excess Aggregate Contributions attributable to the Plan for the Plan Year under either Section 6(c)(1) or (2), or both, as adjusted in accordance with Code Section 401(m) and applicable Treasury Regulations to reflect any income, gain or loss attributable to such contributions shall be distributed or, if the Excess Aggregate Contributions are forfeitable, forfeited.  The income allocable to such contributions shall be determined in a similar manner as described in Section 4.2 of the Plan.  As to any Highly Compensated Employee, any distribution or forfeiture of his allocable portion of the Excess Aggregate Contributions for a Plan Year shall first be attributed to any nondeductible employee contributions made by the Participant during the Plan Year for which no corresponding Plan Sponsor contribution is made and then to any remaining nondeductible employee contributions made by the Participant during the Plan Year and any Matching Contributions thereon.  As between the Plan and any other plan or plans maintained by the Plan Sponsor in which Excess Aggregate Contributions for a Plan Year are held, each such plan shall distribute or forfeit a pro-rata share of each class of contribution based on the respective amounts of a class of contribution made to each plan during the Plan Year.  The payment of the Excess Aggregate Contributions shall be made without regard to any other provision in the Plan.

For purposes of this Section 6, with respect to any Plan Year, “Excess Aggregate Contributions” means the excess of:

(a)           the aggregate amount of the Matching Contributions and nondeductible employee contributions (and any Qualified Nonelective Contributions or Qualified Matching Contributions) and, it taken into account under Section 5 of this Appendix C, the Deferral Amounts actually made on behalf of Highly Compensated Eligible Participants for the Plan Year, over

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

 

The determination of the amount of Excess Aggregate Contributions under this Section 6 shall be made after (1) first determining the excess Elective Deferrals under Section 3.1(b) of the Plan and (2) then determining the Excess Deferral Amounts under Section 3 of this Appendix C.

 

(c)    Distribution or forfeiture of nondeductible employee contributions or Matching Contributions in the amount of the Excess Aggregate Contributions for any Plan Year shall be made with respect to Highly Compensated Eligible Participants on the basis of the dollar amount of the Excess Aggregate Contributions attributable to each Highly Compensated Eligible Participant. Forfeitures of Excess Aggregate Contributions may not be allocated to Participants whose contributions are reduced under this Section 6. The Plan 

 

  

 C-6

 

Sponsor shall determine the amount of Excess Aggregate Contributions which shall be distributed (or forfeited, if forfeitable) to each Highly Compensated Eligible Participant as follows.

(1)    The Matching Contributions and nondeductible contributions allocated to the Highly Compensated Eligible Participant with the highest dollar amount of such contributions for the Plan Year shall be reduced by the amount required to cause that Highly Compensated Eligible Participant’s remaining Matching Contributions and nondeductible contributions for the Plan Year to be equal to the dollar amount of such contributions allocated to the Highly Compensated Eligible Participant with the next highest dollar amount of Matching Contributions and nondeductible contributions for the Plan Year. This amount is then distributed to the Highly Compensated Eligible Participant with the highest dollar amount of Matching Contributions and nondeductible contributions, unless a smaller reduction, when added to the total dollar amount already distributed pursuant to this Subsection (1), equals the total Excess Aggregate Contributions.

 

(2)    If the total amount distributed under Paragraph (1) is less than the total Excess Aggregate Contributions, the procedure in Paragraph (1) shall be repeated until the total dollar amount of Matching Contributions and nondeductible contributions distributed is equal to the total Excess Aggregate Contributions attributable to Highly Compensated Eligible Participants.

 

 

If a distribution of the total Excess Aggregate Contributions is made in accordance with Paragraphs (1) and (2) of this Section 6(c), the limitations in Section 5 of this Appendix C shall be treated as being met regardless of whether the actual contribution percentage, if recalculated after such distributions, would have satisfied the requirements of Section 5.

 

 

SECTION 7

 

Except to the extent limited by rules promulgated by the Secretary of the Treasury, if a Highly Compensated Eligible Participant is a participant in any other plan of the Plan Sponsor or any Affiliate which includes Matching Contributions, deferrals under a cash or deferred arrangement pursuant to Code Section 401(k), or nondeductible employee contributions, any contributions made by or on behalf of the Participant to the other plan shall be allocated with the same class of contributions under the Plan for purposes of determining the “actual deferral percentage” and “contribution percentage” under the Plan.

 

Except to the extent limited by rules promulgated by the Secretary of the Treasury, if the Plan and any other plans which include Matching Contributions, deferrals under a cash or deferred arrangement pursuant to Code Section 401(k), or nondeductible employee 

 

  

 C-7

 

contributions are considered as one plan for purposes of Code Section 401(a)(4) and 410(b)(1), any contributions under the other plans shall be allocated with the same class of contributions under the Plan for purposes of determining the “contribution percentage” and “actual deferral percentage” under the Plan.

  

 C-8

 

APPENDIX D

MINIMUM DISTRIBUTION REQUIREMENTS

SECTION 1

GENERAL RULES

(a)           Effective Date and Precedence.  The provisions of this Appendix D will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.  The requirements of this Appendix D will take precedence over any inconsistent provisions of the Plan.

(b)           Requirements of Treasury Regulations Incorporated.  All distributions required under this Section will be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9).

(c)           TEFRA Section 242(b)(2) Elections.  Notwithstanding the other provisions of this Appendix D, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

SECTION 2

TIME AND MANNER OF DISTRIBUTION

(a)           Required Beginning Date.  The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date.

(b)           Death of Participant Before Distributions Begin.  If the Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed as follows:

(1)           If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, then, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 701⁄2, if later.

 

(2)           If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, then, distributions to the Designated Beneficiary will 

 

  

 D-1

 

begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

(3)           If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

(4)           If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 2(b), other than Section 2(b)(1) of this Appendix D, will apply as if the surviving spouse were the Participant.

For purposes of this Section 2(b) and Section 4 of this Appendix D, unless Section 2(b)(4) of this Appendix D applies, distributions are considered to begin on the Participant’s Required Beginning Date.  If Section 2(b) of this Appendix D applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 2(b)(1) of this Appendix D. If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under Section 2(b)(1)), the date distributions are considered to begin is the date distributions actually commence.

(c)           Forms of Distribution.  Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year, distributions will be made in accordance with Sections 3 and 4 of this Appendix D.  If the Participant’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the regulations issued thereunder.

SECTION 3

REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME

(a)           Amount of Required Minimum Distribution For Each Distribution Calendar Year.  During the Participant’s lifetime, the minimum amount that will be distributed for each Distribution Calendar Year is the lesser of:

 

  

 D-2

 

(1)           the quotient obtained by dividing the Participant’s Account Balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s age as of the Participant’s birthday in the Distribution Calendar Year; or

(2)           if the Participant’s sole Designated Beneficiary for the Distribution Calendar Year is the Participant’s spouse, the quotient obtained by dividing the Participant’s Account Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the Distribution Calendar Year.

(b)           Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death.  Required minimum distributions will be determined under this Section 3 beginning with the first Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant’s date of death.

 

SECTION 4

REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S DEATH

(a)           Death On or After Date Distributions Begin.

(1)           Participant Survived by Designated Beneficiary.  If the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the longer of the remaining Life Expectancy of the Participant or the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as follows:

(i)           The Participant’s remaining Life Expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

(ii)           If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, the remaining Life Expectancy of the surviving spouse is calculated for each Distribution Calendar Year after the year of the Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year.  For Distribution Calendar Years after the year of the surviving spouse’s death, the remaining Life Expectancy of the surviving spouse is calculated using the age of the surviving 

 

  

 D-3

 

spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.

(iii)           If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is calculated using the age of the Designated Beneficiary in the year following the year of the Participant’s death, reduced by one for each subsequent year.

(2)           No Designated Beneficiary.  If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the year after the year of the Participant’s death, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the Participant’s remaining Life Expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

(b)           Death Before Date Distributions Begin.

(1)           Participant Survived by Designated Beneficiary.  If the Participant dies before the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as provided in Section 4(a).

(2)           No Designated Beneficiary.  If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

(3)           Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin.  If the Participant dies before the date distributions begin, the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Section 2(b)(1) of this Appendix D, this Section (b) will apply as if the surviving spouse were the Participant.

(4)           Alternative for Distributions to Designated Beneficiaries.  In lieu of receiving distributions as required under Subsection (1) and (3) above, the Designated Beneficiary may elect to take distribution of the Participant’s entire

 

  

 D-4

 

 interest on or before the December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

SECTION 5

DEFINITIONS

As used in this Appendix D, the following words and phrases shall have the meaning set forth below:

(a)           Designated Beneficiary.  The individual who is designated as the Beneficiary under Section 1.6 of the Plan and is the designated Beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-4, Q&A-1, of the Treasury Regulations.

(b)           Distribution Calendar Year.  A calendar year for which a minimum distribution is required.  For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the Participant’s Required Beginning Date.  For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Section 2(b).  The required minimum distribution for the Participant’s first Distribution Calendar Year will be made on or before the Participant’s Required Beginning Date.  The required minimum distribution for other Distribution Calendar Years, including the required minimum distribution for the Distribution Calendar Year in which the Participant’s Required Beginning Date occurs, will be made on or before December 31 of that Distribution Calendar Year.

(c)           Life Expectancy.  Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations.

(d)           Participant’s Account Balance.  The Account balance as of the last Valuation Date in the calendar year immediately preceding the Distribution Calendar Year (“Valuation Calendar Year”) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the Valuation Calendar Year after the Valuation Date and decreased by distributions made in the Valuation Calendar Year after the Valuation Date.  The Account balance for the Valuation Calendar Year includes any amounts rolled over or transferred to the Plan either in the Valuation Calendar Year or in the Distribution Calendar Year if distributed or transferred in the Valuation Calendar Year.

(e)           Required Beginning Date.  Required Beginning Date means April 1 of the calendar year following the later of the calendar year in which the Participant attains age

 

  

 D-5

 

 701⁄2 or the calendar year in which the Participant retires, except that in the case of a person described in Section 1(b)(2) of Appendix B the Required Beginning Date shall be April 1 of the calendar year following the calendar year in which the Participant attains age 701⁄2.

SECTION 6

2009 SUSPENSION OF REQUIRED MINIMUM DISTRIBUTIONS

Notwithstanding any other provision of the Plan or this Appendix, a Participant or Designated Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code Section 401(a)(9)(H) (“2009 RMDs”), and who would have satisfied that requirement by receiving distributions that are (i) equal to the 2009 RMDs or (ii) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant’s Designated Beneficiary, or for a period of at least 10 years, will not receive those distributions for the 2009 calendar year unless the Participant or Designated Beneficiary chooses to receive such distributions.  Participants and beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence.

 

 

D-6ex10-2.htm

MORRISON RETIREMENT PLAN

 

THIS INDENTURE made on the 7th day of January, 2015, by RUBY TUESDAY, INC. a corporation organized and existing under the laws of the State of Georgia (the “Primary Sponsor”);

 

W I T N E S S E T H:

 

WHEREAS, the Primary Sponsor maintains the Morrison Retirement Plan, which was amended and restated, under an indenture dated November 1, 2004 and was amended by the First Amendment thereto dated January 9, 2007 and the Second Amendment thereto dated February 17, 2009; and

 

WHEREAS, the Primary Sponsor again amended and restated the Plan in its entirety, under an indenture dated October 7, 2009, to reflect the First and Second Amendments, respectively, and to update the Plan for changes required by the Pension Protection Act of 2006 and other subsequent legal changes; and

 

WHEREAS, the Primary Sponsor now wishes to amend and restate the Plan primarily for the purpose of resubmitting the Plan to the Internal Revenue Service for an updated favorable determination letter as a Cycle D filer; and

WHEREAS, the Primary Sponsor also wishes to amend the Plan to offer a new special window optional form of payment to certain terminated participants under the Plan who: (i) are not yet eligible or required to commence distribution of their benefits under the Plan; or (ii) are eligible to commence distribution of their benefits under the Plan but have not yet commenced distribution (or been required by the Plan) to do so; and

WHEREAS, the provisions of the Plan, as amended and restated herein, shall apply only to Plan Years (as defined in the Plan) beginning after December 31, 2014, and only with respect to participants who perform an Hour of Service (as defined in the Plan) in Plan Years beginning after December 31, 2014, except to the extent the provisions are required to apply at an earlier date or are not required to apply until a later date to comply with applicable law.

 

NOW, THEREFORE, the Primary Sponsor does hereby amend and restate the Plan in its entirety, generally effective as of January 1, 2015, except as otherwise provided herein, to read as follows:

 

  

 

MORRISON RETIREMENT PLAN

 

TABLE OF CONTENTS

 

	  	  	
PAGE

	
SECTION 1 

 

	
DEFINITIONS

	
1

	
SECTION 2 

 

	
ELIGIBILITY

	
14

	
SECTION 3 

 

	
FUNDING

	
14

	
SECTION 4 

 

	
DEATH BENEFITS

	
15

	
SECTION 5 

 

	
RETIREMENT DATES AND RETIREMENT BENEFITS

	
16

	
SECTION 6 

 

	
PAYMENT OF BENEFITS ON RETIREMENT

	
18

	
SECTION 7 

 

	
PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT OR DEATH

	
28

	
SECTION 8 

 

	
ADMINISTRATION OF THE PLAN

	
32

	
SECTION 9 

 

	
CLAIM REVIEW PROCEDURE

	
34

	
SECTION 10 

 

	
LIMITATION OF ASSIGNMENT PAYMENTS TO LEGALLY INCOMPETENT

 DISTRIBUTEE AND UNCLAIMED PAYMENTS

 

	
 

38

	
SECTION 11 

 

	
PROHIBITION AGAINST DIVERSION

	
40

	
SECTION 12 

 

	
LIMITATION OF RIGHTS

	
40

	
SECTION 13 

 

	
AMENDMENT AND TERMINATION

	
40

	
SECTION 14 

 

	
ADOPTION OF PLAN BY AFFILIATES

	
45

	
SECTION 15 

 

	
RETURN OF CONTRIBUTIONS

	
45

	
SECTION 16 

 

	
INCORPORATION OF SPECIAL LIMITATIONS

	
46

	
APPENDIX A 

 

	
LIMITATION ON BENEFITS

	
A-1

	
APPENDIX B 

 

	
TOP HEAVY PROVISIONS

	
B-1

	
APPENDIX C 

 

	
ACTUARIAL EQUIVALENT FACTORS

	
C-1

	
APPENDIX D 

 

	
MINIMUM DISTRIBUTION REQUIREMENTS

	
D-1

	
APPENDIX E 

 

	
FACTORS

	
E-1

  

 

SECTION 1

 

DEFINITIONS

 

1.1  “Accrued Benefit” means an annual pension expressed in the form of a single life annuity which shall be (a) in the case of a Participant who has not reached Normal Retirement Age, the portion of the benefit to which he would be entitled at Normal Retirement Date determined pursuant to Plan Section 5, based on the years of Credited Service (or Benefit Service) completed by the Participant at the date of determination, (b) in the case of a Participant who has reached Normal Retirement Age, the Participant’s benefit determined pursuant to Plan Section 5.2 and (c) in the case of a Participant who has reached his Deferred Retirement Date, the benefit determined pursuant to Plan Section 5.3.  Notwithstanding anything to the contrary contained in this Plan, no further benefit shall be accrued under this Plan on or after December 31, 1987.

 

Notwithstanding anything in this Section to the contrary, if the Plan’s Funding Target Attainment Percentage is less than sixty percent (60%) for any Plan Year, no benefits will accrue under the Plan for any Participant as of the valuation date for such Plan Year, unless during such Plan Year, the Plan Sponsor makes a contribution to the Trust (in addition to any minimum required contribution under Code Section 430) equal to the amount sufficient to result in a Funding Target Attainment Percentage of sixty percent (60%) or greater.  For purposes of the immediately preceding sentence, no “prefunding balance” (as defined in Code Section 430(f)(6)) or “funding standard carryover balance” (as defined in Code Section 430(f)(7)) may be used to satisfy the contribution to the Trust.

 

1.2  “Actuarial Equivalent” means, with respect to a given benefit, any other benefit provided under the terms of the Plan which has the same present or equivalent value on the date the given benefit payment commences.  Except as otherwise specified in this Section 1.2, for the purpose of establishing whether a benefit is the Actuarial Equivalent of another benefit, the present or equivalent value of benefit payments shall be determined by the use of actuarial equivalent factors adopted by the Plan Administrator, as set forth in Appendix C of the Plan and

(a)  in the case of a benefit other than in the form of a lump sum cash payment, the interest rate established by the Plan Administrator, as set forth in Appendix C to the Plan, and

 

(b)  for purposes of calculating the present value and distributing a Participant’s Accrued Benefit in the form of a lump sum, the Actuarial Equivalent shall be determined by using the applicable interest rate for the last full month immediately preceding the first day of the Plan Year in which the date of distribution is to occur and the applicable mortality table, each as designated by the Secretary of the Treasury under Code Section 417(e)(3).

 

  

 

(c)  In establishing the value of a lump sum payment, the benefit payable to a Participant commencing at his Normal Retirement Date shall be used, unless his termination of employment occurred after his Early Retirement Date in which case the benefit payable to the Participant at his Early Retirement Date shall be used.

 

1.3  “Actuary” means an actuary, enrolled by the Joint Board for the Enrollment of Actuaries, selected by the Primary Sponsor to provide actuarial services for the Plan.

 

1.4  “Affiliate” means (a) any corporation which is a member of the same controlled group of corporations (within the meaning of Code Section 414(b)) as is a Plan Sponsor, (b) any other trade or business (whether or not incorporated) under common control (within the meaning of Code Section 414(c)) with a Plan Sponsor, (c) any other organization which is a member of an affiliated service group (within the meaning of Code Section 414(m)) with a Plan Sponsor, and (d) any other entity required to be aggregated with a Plan Sponsor pursuant to regulations under Code Section 414(o).

 

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

 

1.6  “Annual Compensation” means the amount paid to an Employee by a Plan Sponsor (and Affiliates for purposes of Appendix B hereto) during a calendar year as wages, salaries and other amounts received for personal services actually rendered (including, but not limited to, commissions paid salesmen, compensation for services on the basis of percentage of profits, tips, bonuses and overtime), to the extent not in excess of the Annual Compensation Limit.  Income from sources outside the United States otherwise excluded from gross income under Code Section 911 shall be included in Annual Compensation.  Annual Compensation does not include contributions to this Plan or any other pension plan to which a Plan Sponsor contributes directly or indirectly, deferred compensation, stock options, and other amounts which receive special tax benefits.  Notwithstanding the above, Annual Compensation shall be determined as follows:

 

(a)  for purposes of applying the benefit limits in Appendix A, Annual Compensation:

 

(1)  shall be measured for the limitation year;

 

(2)  shall include compensation paid to a Participant by the later of (A) two and one-half (21⁄2) months after the Participant’s severance from employment with the Plan Sponsor, or (B) the end of the limitation year (within the meaning of Appendix A) that includes the date of the Participant’s severance from employment with the Plan Sponsor, if such compensation is regular compensation for services during or outside the Participant’s regular working hours, commissions, bonuses, or other similar payments and the compensation would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Plan Sponsor; and

 

  

 -2-

 

(3)  shall not include any other post-severance compensation;

 

 (b)  for all purposes under the Plan, Annual Compensation shall include any amount which would have been paid during a Plan Year, but was contributed by a Plan Sponsor on behalf of an Employee pursuant to a salary reduction agreement which is not includable in the gross income of the Employee under Section 125, 132(f)(4), 402(e)(3), 402(h) or 457 of the Code;

 

 (c)  in accordance with Code Section 414(u)(12), Annual Compensation shall include any differential wage payment (within the meaning of Code Section 3401(h)(2)) made by a Plan Sponsor to an individual who does not currently perform services for the Plan Sponsor by reason of qualified military service (within the meaning of Code Section 414(u)(5)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Plan Sponsor;

 

(d)  for purposes of Plan Section 5, no Annual Compensation paid after December 31, 1987, shall be taken into account; and

 

(e)  notwithstanding any other provision of the Plan to the contrary, if Annual Compensation for any prior determination period is taken into account in determining a Participant’s benefit accruing in a Plan Year commencing on or after January 1, 1994, the Annual Compensation for that prior determination period shall be subject to the Annual Compensation Limit in effect for that prior determination period.  For this purpose, for determination periods beginning before the first day of the first Plan Year beginning on or after January 1, 1994, the Annual Compensation Limit shall be deemed to be $150,000.

 

1.7  “Annual Compensation Limit” means $265,000, which amount may be adjusted in subsequent Plan Years based on changes in the cost of living as announced by the Secretary of the Treasury.  In determining any benefit accruals in Plan Years beginning after June 30, 2002, the Annual Compensation Limit for Plan Years beginning before July 1, 2002, shall be the dollar amount as previously in effect under Code Section 401(a)(17), as modified by Plan Section 1.6(e).

 

1.8  “Appeals Fiduciary” means an individual or group of individuals appointed to review appeals of claims for benefits payable due to a Participant’s Disability made pursuant to Plan Section 9.4.

 

1.9  “Beneficiary” means the person or trust that a Participant designated most recently in writing to the Plan Administrator, provided that, if the Participant has failed to make a designation, no person designated is alive, no trust has been established, or no successor Beneficiary has been designated who is alive, the term “Beneficiary” means (a) the Participant’s spouse or (b) if no spouse is alive, the Participant’s surviving children or (c) if no children are alive, the Participant’s parent or parents, or (d) if no parent is alive, the legal representative of 

 

  

 -3-

 

 Participant’s estate.  The spouse of a married Participant shall be his Beneficiary unless that spouse has consented in writing to the designation by the Participant of some other person or trust, and the spouse’s consent acknowledges the effect of the election and is witnessed by a notary public.  A Participant may change his designation at any time.  However, a Participant may not change his designation without further consent of his spouse under the terms of the preceding sentence unless the spouse’s consent permits designation of another person or trust without further spousal consent and acknowledges that the spouse has the right to limit consent a specific beneficiary and a specific optional form of benefit and that the spouse voluntarily relinquishes both of these rights.  The spouse’s consent shall not be required if the Participant establishes to the satisfaction of the Plan Administrator that the spouse cannot be located, if the Participant has a court order indicating that he is legally separated or has been abandoned (within  meaning of local law) unless a qualified domestic relations order (as defined in Code Section 414(p)) provides otherwise, or if there are other circumstances as the Secretary of the Treasury prescribes.  If the spouse is legally incompetent to give consent, consent by the spouse’s legal guardian shall be deemed to be consent by the spouse.  For purpose of this Section 1.9, an individual shall be the spouse of a Participant only if the individual was married to the Participant during the one year period ending on the earlier of the Participant’s death or the date on which payment of benefits commences.

 

1.10  “Break in Service” means the failure of an Employee, in connection with a termination of employment other than by reason of death or attainment of a Retirement Date, to complete more than 500 Hours of Service in any calendar year.

 

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

 

1.12  “Credited Service” means (a) a year or a fractional part thereof, prior to July 1, 1985, for which a Participant received credit towards pension benefits in accordance with the applicable provisions of the Plan in effect before July 1, 1985 and (b) each calendar year on or after July 1, 1985 during which an Employee has completed no less than 1,000 Hours of Service.  In the event an Employee becomes a Participant or resumes active participation on other than January 1, following a period of authorized leave of absence not exceeding 24 months or a Break in Service or in the event a Participant retires or otherwise terminates employment on other than December 31, he shall receive Credited Service for such calendar year regardless of whether he has completed 1,000 Hours of Service during such calendar year.

 

Notwithstanding anything to the contrary contained in the Plan, no Credited Service shall be granted to a Participant for any period of employment with a Plan Sponsor or Affiliate on or after December 31, 1987.

 

1.13  “Deferred Retirement Date” means the first day of the month coinciding with or next following the earlier of the date subsequent to the Participant’s Normal Retirement Age (a) on which a Participant actually retires or (b) on which his employment ceases to be substantial.  For this purpose, a Participant’s employment will be substantial for a calendar month if he 

 

  

 -4-

 

performs forty or more Hours of Service (except for Hours of Service credited as a result of back pay) in such month.

 

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

 

1.15  “Disability” means a physical or mental condition arising after the original date of employment of the Participant which totally and permanently prevents the Participant from engaging in any gainful occupation or employment with a Plan Sponsor. The determination as to whether a Participant is totally and permanently disabled shall be made by the Plan Administrator based (a) on medical evidence by a licensed physician designated by the Plan Administrator; (b) on evidence that the Participant is eligible for disability benefits under any long-term disability plan sponsored by the Plan Sponsor; or (c) on evidence that the Participant is eligible for disability benefits under the Social Security Act.

 

1.16  “Disability Retirement Date” means the first day of the calendar month coinciding with or next following the date the Participant attains age 65.

 

1.17  “Distributee” means an Employee or former Employee.  In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are Distributees with regard to the interest of the spouse or former spouse.  Effective for distributions made on and after January 1, 2008, a non-spouse Beneficiary of a deceased Participant who is either an individual or an irrevocable trust, where the beneficiaries of such trust are identifiable and the trustee provides the Plan Administrator with a final list of trust beneficiaries or a copy of the trust document by October 31 of the year following the Participant’s death, shall be a Distributee with regard to the interest of the deceased Participant, but only if the Eligible Rollover Distribution is transferred in a direct trustee-to-trustee transfer to an Eligible Retirement Plan which is an individual retirement account described in Code Section 408(a) or an individual retirement account described in Code Section 408(b) (other than an endowment contract).

 

1.18  “Early Retirement Age” means the date on which the Participant has attained age 55 and has completed five (5) years of Credited Service.

 

1.19  “Early Retirement Date” means the first day of the calendar month coinciding with or next following the date the Participant retires after reaching his Early Retirement Age but prior to his Normal Retirement Date.

 

1.20  “Eligibility Service” means the completion by an Employee of no less than 1,000 Hours of Service in the twelve-consecutive-month period beginning on the date on which the Employee first performs an Hour of Service upon his employment or reemployment with a Plan Sponsor, or, in the event an Employee fails to complete 1,000 Hours of Service in that twelve-consecutive-month period, the completion of no less than 1,000 Hours of Service in any calendar year thereafter, including the calendar year which includes the first anniversary of the date the 

 

  

 -5-

 

Employee first performed an Hour of Service upon his employment or reemployment.  Notwithstanding anything contained herein to the contrary, Eligibility Service shall not include:

 

(a)  in the case of a Participant who has a Break in Service, all years prior to the calendar year in which the Break in Service commences which would otherwise constitute Eligibility Service until the Employee completes one year of Eligibility Service subsequent to his date of reemployment; and

 

(b)  in the case of a Participant who does not have any vested rights under Plan Section 7, all service during calendar years which would otherwise constitute Eligibility Service before the calendar year in which the first of five consecutive Breaks in Service commences if the number of consecutive calendar years in which the Participant incurs a Break in Service equals or exceeds the greater of five or the prior aggregate number of the calendar years before the calendar year in which the Break in Service commenced.

 

1.21  “Eligible Employee” means any Employee of a Plan Sponsor other than an Employee (a) who is covered by a collective bargaining agreement between a union and a Plan Sponsor provided that retirement benefits were the subject of good faith bargaining, unless the collective bargaining agreement provides that the Employee shall be eligible to participate in the Plan, (b) a leased employee within the meaning of Code Section 414(n)(2), or (c) any other individual who is deemed to be an Employee of a Plan Sponsor pursuant to regulations under Code Section 414(o).  In addition, no person who is initially classified by a Plan Sponsor as an independent contractor for federal income tax purposes shall be regarded as an Eligible Employee for that period, regardless of any subsequent determination that any such person should have been characterized as a common law employee of the Plan Sponsor for the period in question.

 

1.22  “Eligible Retirement Plan” means any of the following that will accept a Distributee’s Eligible Rollover Distribution:

 

(a)     an individual retirement account described in Code Section 408(a);

 

(b)     an individual retirement annuity described in Code Section 408(b) (other than an endowment contract);

 

(c)     an annuity plan described in Code Section 403(a) or an annuity contract described in Code Section 403(b), unless the Distributee is a non-spouse Beneficiary of a deceased Participant;

 

(d)     a qualified trust described in Code Section 401(a), unless the Distributee is a non-spouse Beneficiary of a deceased Participant;

 

(e)     an eligible plan under Code Section 457(b) which is maintained by a state or political subdivision of a state, or any agency or instrumentality of a state or political 

 

  

 -6-

 

subdivision and which agrees to separately account for amounts transferred into such plan from this Plan, unless the Distributee is a non-spouse Beneficiary of a deceased Participant; or

 

(f)    effective January 1, 2008, to the extent permitted and in accordance with the rules applicable under Code Section 408A, a Roth individual retirement account described in Code Section 408A, unless the Distributee is a non-spouse Beneficiary of a deceased Participant.

 

If any portion of an Eligible Rollover Distribution is attributable to payments or distributions from a designated Roth account (as defined in Code Section 402A), an Eligible Retirement Plan with respect to such portion shall include only another designated Roth account and a Roth IRA.

 

1.23  “Eligible Rollover Distribution” means any distribution of all or any portion of the Distributee’s Accrued Benefit,

 

  (a)  including any portion of the distribution that is not includable in gross income provided such amount is distributed directly to one of the following:

 

  (1)  an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) (other than an endowment contract); or

 

  (2)      a qualified trust as described in Code Section 401(a) but only to the extent that

 

(A)  the distribution is made in a direct trustee-to-trustee transfer;

 

(B)  the transferee plan agrees to separately account for amounts transferred (including a separate accounting for the portion of the distribution which is includable in income and the portion which is not includable in income); and

 

(b)     excluding:

 

(1)  any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated Beneficiary, or for a specified period of ten (10) years of more;

 

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

 

  

 -7-

 

(3)  except as otherwise provided in this Section, the portion of any distribution that is not includable in gross income (determined without regard to the exclusions for net unrealized appreciation with respect to employer securities); or

 

(4)  if the Distributee is a non-spouse Beneficiary of a deceased Participant, any distribution other than a direct trustee-to-trustee transfer to an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) (other than an endowment contract).

 

1.24      “Employee” means any person who is employed by a Plan Sponsor or an Affiliate for purposes of the Federal Insurance Contributions Act, who is a leased employee within the meaning of Code Section 414(n)(2) with respect to a Plan Sponsor, or who is deemed to be an employee of a Plan Sponsor pursuant to regulations under Code Section 414(o).

 

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

 

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

 

1.27  “Fund” means the amount of the cash and other property held by the Trustee pursuant to the Plan.

 

1.28  “Funding Target Attainment Percentage” means, for a Plan Year, the ratio (expressed as a percentage) which:

 

(a)  the value of Plan assets for the Plan Year, reduced by any prefunding balance (as defined in Code Section 430(f)(6)) and any funding standard carryover balance (as defined in Code Section 430(f)(7)), bears to

 

(b)  the present value of all benefits accrued or earned under the Plan as of the beginning of the Plan Year.

 

Notwithstanding the foregoing, (1) the amounts in Subsections (a) and (b) of this Section shall be increased by the aggregate amount of purchases of annuities for Employees other than highly compensated employees (within the meaning of Code Section 414(q)) which were made by the Plan during the two Plan Years preceding the year for which the Funding Target Attainment Percentage is being determined, and (2) the amount in Subsection (a) shall be increased by any security provided by a Plan Sponsor consisting of (A) a bond issued by a corporate surety company that is an acceptable surety for purposes of Section 412 of ERISA, (B) 

 

  

 -8-

 

cash, or United States obligations which mature in 3 years or less, held in escrow by a bank or similar financial institution, or (C) such other form of security as is satisfactory to the Secretary of the Treasury and the parties involved.

 

1.29  “Hour of Service” means:

 

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

 

(b)  Each hour for which an Employee is paid, or entitled to payment, by a Plan Sponsor or any Affiliate on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence, and such hours shall be credited in accordance with the provisions of Section 2530.200b-2(b) and (c) of the U.S. Department of Labor Regulations or such other federal regulations as may from time to time be applicable.

 

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

 

(d)  Solely for purposes of determining whether a Break in Service has occurred, each hour during any period that the Employee is absent from work (1) by reason of the pregnancy of the Employee, (2) by reason of the birth of a child of the Employee, (3) by reason of the placement of a child with the Employee in connection with the adoption of the child by the Employee, or (4) for purposes of caring for a child for a period immediately following its birth or placement.  The hours described in this Subsection (d) shall be credited (A) only in the computation period in which the absence from work begins, if the Employee would be prevented from incurring a Break in Service in a year solely because of the credit, or (B), in any other case, in the next following computation period.  In no event shall an Employee be credited with more than 501 Hours of Service during any single continuous period during which he performs no duties for the Plan Sponsor or an Affiliate.

 

(e)  In the case of Hours of Service to be credited to an Employee in connection with a period of no more than thirty-one days which extends beyond one computation period, all such Hours of Service may be credited to either the first or second computation period.

 

  

 -9-

 

(f)  Hours of Service for hourly paid Employees shall be determined from the records of hours worked or hours for which payment is made or owing.

 

(g)  Hours of Service for Employees other than hourly Employees shall be determined on the assumption that each Employee has completed one hundred ninety (190) Hours of Service during each month he would be required to be credited with at least one (1) Hour of Service during such month.

 

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

 

(i)  For purposes of determining an Employee’s eligibility to participate and vesting, Hours of Service shall include Hours of Service with a company heretofore or hereafter merged or consolidated or otherwise absorbed by a Plan Sponsor, or all or a substantial part of whose assets or business have been or shall be acquired by a Plan Sponsor (hereafter a “Predecessor Company”):

 

(1)  if a Plan Sponsor continues to maintain a pension plan of such Predecessor Company; or

 

(2)  if, and to the extent, such employment with the Predecessor Company is required to be treated as employment with a Plan Sponsor under regulations prescribed by the Secretary of the Treasury; or

 

(3)  if, and to the extent, granted by the board of directors of a Plan Sponsor in its sole discretion effected on a non-discriminatory basis as to all persons similarly situated consistent with Code Section 401(a)(4) and the Treasury Regulations promulgated thereunder.

 

(j)  For purposes of determining a Participant’s benefit, Hours of Service may also include Hours of Service with a Predecessor Company to the extent granted by the board of directors of the Primary Sponsor in its sole discretion, effected on a non-discriminatory basis as to all persons similarly situated consistent with Code Section 401(a)(4) and the Treasury Regulations promulgated thereunder.

 

(k)  Hours of Service will be credited with respect to qualified military service in accordance with Code Section 414(u) and applicable Treasury regulations promulgated thereunder.

 

  

 -10-

 

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

 

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

 

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

 

(b)  who is

 

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

 

(2)  is not registered as an investment adviser under such Act by reason of paragraph (1) of Section 203A(a) of such Act, is registered as an investment adviser under the laws of the State (referred to in paragraph (1) of Section 203A(a) of such Act) in which it maintains its principal office and place of business, and, at the time the Fiduciary last filed the registration form most recently filed by the Fiduciary with such State in order to maintain the Fiduciary’s registration under the laws of such State, also filed a copy of such form with the Secretary of Labor;

 

(3)  is a bank, as defined in such Act; or

 

(4)  is an insurance company qualified to perform investment advisory services under the laws of more than one state; and

 

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

 

1.32  “Named Fiduciary” means only the following:

 

(a)  the Plan Administrator;

 

(b)  the Trustee;

 

(c)  the Investment Committee;

 

(d)  the Investment Manager; and

 

(e)  the Appeals Fiduciary.

 

  

 -11-

 

 

1.33  “Normal Fund Payment” means:

 

(a)  In the case of a Participant who is not married on the date payments to the Participant are to commence under the terms of the Plan, a single life annuity, payable in monthly installments;

 

(b)  In the case of a Participant who is married on the date payments are to commence under the terms of the Plan, a joint and survivor annuity, payable in monthly installments, which is an immediate annuity for the life of the Participant with a survivor annuity for the life of his spouse which is fifty percent (50%) of the amount of the annuity payable during the joint lives of the Participant and his spouse and which is the Actuarial Equivalent of a single life annuity;

 

(c)  In the case of a Participant who dies while married before payments are to commence under the terms of the Plan, an immediate single life annuity, payable in monthly installments for the life of his spouse, which is fifty percent (50%) of the amount of the annuity which would have been payable during the joint lives of the Participant and his spouse and which is the Actuarial Equivalent of a single life annuity if:

 

  (1)  In the case of a Participant who dies on or after the date on which the Participant attains the earliest retirement age under the Plan, the Participant had retired with a Normal Fund Payment on the date of his death; or

 

  (2)  In the case of a Participant who dies before the date on which the Participant would have attained the earliest retirement age under the Plan, the Participant had:

 

(A)  Separated from service on his date of death (unless the Participant had earlier separated from service);

 

(B)  Survived to the earliest retirement age under the Plan;

 

(C)  Retired with a Normal Fund Payment at the earliest retirement age under the Plan; and

 

(D)  Died on the day after the date on which he would have attained the earliest retirement age under the Plan.

 

(d)  Notwithstanding anything contained in this Section, if the Actuarial Equivalent of the Participant’s vested Accrued Benefit, expressed as a lump sum payment, is $5,000 or less, a lump sum payment in cash.

 

In the event of a mandatory distribution greater than $1,000, if the Participant does not elect, in accordance with Plan Sections 6.2(d) and 6.2(e), to have such 

 

  

 -12-

 

distribution paid directly to an Eligible Retirement Plan specified by the Participant in a direct rollover, or consent to receive the distribution directly, then the Plan Administrator may elect to leave the Participant’s Accrued Benefit in the Plan until the earlier of (i) the Participant’s Normal Retirement Date, or (ii) the time the Plan Administrator pays the distribution in a direct rollover to an individual retirement plan designated by the Plan Administrator.

 

Any annuity may be purchased from an insurance company designated by the Plan Administrator in writing to the Trustee, and may be distributed to the Participant, his spouse or his Beneficiary, as the case may be.  The distribution shall be in full satisfaction of the benefits to which the Participant, his spouse or his Beneficiary is entitled under the Plan.

 

1.34  “Normal Retirement Age” means the date on which the Participant has attained age 65 and has completed five (5) years of Credited Service, or in the case of an Employee who becomes a Participant after age 60, the fifth anniversary of the date on which he becomes a Participant.

 

1.35  “Normal Retirement Date” means the first day of the month coinciding with or next following the date on which a Participant attains Normal Retirement Age and actually retires.

 

1.36  “Participant” means any Employee or former Employee who has become a participant pursuant to Plan Section 2 and who has not received a full distribution from the Plan of his Accrued Benefit.

 

1.37  “PBGC” means the Pension Benefit Guaranty Corporation.

 

1.38  “Plan” means the Morrison Retirement Plan.

 

1.39  “Plan Administrator” means the Primary Sponsor or any person designated by the Primary Sponsor to serve in this capacity.

 

1.40  “Plan Sponsor” means individually the Primary Sponsor and each Affiliate or other entity which has adopted the Plan.

 

1.41  “Plan Year” means the period commencing July 1 and ending June 30 each Year.

 

1.42  “Primary Sponsor” means Ruby Tuesday, Inc. or its successor in interest.

 

1.43  “Qualified Optional Survivor Annuity” means a joint and survivor annuity elected under Section 6.2(b) (which is the Actuarial Equivalent of the Participant’s vested Accrued Benefit and as to which the Participant’s spouse is his Beneficiary), payable in monthly installments, which is an immediate annuity for the life of the Participant with a survivor annuity for the life of his spouse which is 75% of the amount of the annuity payable during the joint lives of the Participant and his spouse.

 

  

 -13-

 

1.44  “Retirement Date” means Normal Retirement Date, Early Retirement Date, Deferred Retirement Date or Disability Retirement Date.

 

1.45  “Social Security Maximum Taxable Wage Base” means the maximum taxable wage base under Code Section 3121(a)(1) as of the Participant’s termination of employment expressed as an annual amount.

 

1.46  “Trust” means the trust established under an agreement between the Primary Sponsor and the Trustee to hold the Fund.

 

1.47  “Trustee” means the trustee under the Trust.

 

1.48  “Vesting Service” means each calendar year during which an Employee has completed no less than 1,000 Hours of Service.  Notwithstanding anything contained herein to the contrary, Vesting Service shall not include service in years prior to the calendar year in which the Employee attained age 18.

 

SECTION 2

 

ELIGIBILITY

 

2.1  General Rule. Each Eligible Employee shall become a Participant as of the January 1 or the July 1 following the later of (a) the date on which the Employee completes his Eligibility Service or (b) attains age 21.

 

2.2  Re-employment. Each former Participant who is vested in all or a portion of his Accrued Benefit and who is reemployed by a Plan Sponsor shall become a Participant as of the date of his reemployment.

 

2.3  Frozen Status. Notwithstanding the foregoing Sections 2.1 and 2.2, an Eligible Employee who is not a Participant in the Plan on December 31, 1987 shall not become a Participant thereafter.

 

2.4  Military Service Credit. Notwithstanding any provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.

 

SECTION 3

 

FUNDING

 

3.1  (a)           Minimum Funding.  It is the Primary Sponsor’s intention that unless a waiver of the minimum funding standards described in ERISA Section 302 or Code Section 412 is obtained, each Plan Sponsor shall contribute to the Fund such amounts as are determined by the Actuary to be necessary to fund the benefits provided under the 

 

  

 -14-

 

Plan.  For this purpose, the Plan Administrator shall establish funding standards for the Plan, which shall be maintained by the Actuary, who will be responsible for determining that such standards meet the funding requirements described in ERISA Section 302, Code Section 412, and Code Section 430.

 

  (b)  Forfeitures.  All forfeitures arising under the Plan shall be used to reduce the cost of the Plan and shall not be used to increase any benefits payable under the Plan.

 

  (c)  Additional Funding.  Notwithstanding the other provisions of this Section 3.1, each Plan Sponsor shall have the right, but not the obligation, to contribute such additional amounts as it, in its sole discretion, deems necessary or desirable to maintain the actuarial soundness of the Plan, and a Plan Sponsor shall also have the right at any time to discontinue contributions hereunder.

 

3.2  No Contributions by Participants. No contributions by Participants shall be required or permitted under the Plan.

 

3.3  Waiver of Plan Sponsor Contributions.  Notwithstanding anything herein to the contrary, contributions by a Plan Sponsor may be waived in whole or in part in any Plan Year during which a substantial business hardship has been sustained, as determined in writing by the Secretary of the Treasury pursuant to Code Section 412.

 

3.4  Deductibility.  All contributions to the Plan by a Plan Sponsor are made subject to the condition that such contributions are fully deductible for federal income tax purposes under Code Section 404.

 

SECTION 4

 

 

DEATH BENEFITS

 

4.1  Death Benefits of a Participant in Pay Status. Upon the death of a Participant who is receiving payment in the form of a Normal Fund Payment under Plan Section 1.33(b), or who is receiving an alternate form of payment under Plan Section 6.2(b), the Beneficiary or joint annuitant shall receive any benefit which is then payable to the Beneficiary or joint annuitant.

 

4.2  Death Benefits of Married Participant not in Pay Status. If the Participant dies while married after becoming vested pursuant to Plan Section 7.2, but before the commencement of payments under the Plan, the Participant’s surviving spouse shall receive as a death benefit a Normal Fund Payment described under Plan Section 1.33(c).

 

4.3  Form of Payment.  Any benefit payable under this Section 4 shall be paid in accordance with the provisions of Plan Section 6 or Section 7, whichever is applicable, after receipt by the Trustee from the Plan Administrator of due notice of the death of the Participant.

 

  

 -15-

 

 

4.4  Other Distribution Rules Applicable.  Any annuity may be purchased from an insurance company designated by the Plan Administrator in writing to the Trustee and may be distributed to the spouse.  The distribution, if any, shall be in full satisfaction of the benefits to which the spouse is entitled under the Plan.  Any benefit payable under this Article 4 shall be paid in accordance with and subject to the provisions of Article 7 after receipt by the Trustee from the Plan Administrator of due notice of the death of the Participant.

 

4.5  Certain Death Benefits for Qualifying Military Personnel.  In the case of a Participant who dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed and then terminated employment on account of death..

 

SECTION 5

 

RETIREMENT DATES AND RETIREMENT BENEFITS

 

5.1  Early Retirement Date.  Each Participant who reaches his Early Retirement Age while an Employee shall be entitled to retire as of that date.  A pension shall be payable to the Participant as of his Early Retirement Date which shall be determined in a similar manner as the pension payable pursuant to Plan Section 5.2 is determined, but based on his years of Credited Service (and Benefit Service) as of his Early Retirement Date.  Such pension shall commence on either (a) his Early Retirement Date or on the first day of any month thereafter, as selected by the Participant, in which event such pension shall be reduced by the applicable factors pursuant to Plan Section 1.2 for each year by which the commencement of such pension precedes the Participant’s Normal Retirement Date; or (b) his Normal Retirement Date.  The pension shall be payable pursuant to Plan Section 6.

 

5.2  Normal Retirement.  Each Participant who reaches his Normal Retirement Age while an Employee shall be entitled to retire as of that date.  A pension shall be payable to a Participant as of his Normal Retirement Date which shall be the sum of his Future Service Retirement Income as determined pursuant to Subsection (a) of this Section and his Past Service Retirement Income as determined pursuant to Subsection (b) of this Section.  The pension shall be payable pursuant to Plan Section 6.

 

  (a)  Subject to the provisions of Plan Section 1.1, for each year of Credited Service commencing on or after January 1, 1986 and prior to his Normal Retirement Date, a Participant’s Future Service Retirement Income shall be an annual amount equal to the sum of (1) .25% of the Participant’s Annual Compensation not in excess of the Social Security Maximum Taxable Wage Base and (2) 1.25% of the Participant’s Annual Compensation in excess of the Social Security Maximum Taxable Wage Base.  In no event will the pension payable hereunder be less than thirty-six dollars ($36.00) multiplied by the Participant’s years of Credited Service commencing on or after January 1, 1986.

 

  

 -16-

 

  (b)  The annual Past Service Retirement Income of a Participant as of January 1, 1986 shall be equal to the greatest of the following:

 

(1)  the sum of (A) .25% of the Participant’s High Five-Year Average Compensation which is not in excess of $14,400 and (B) 1.25% of the High Five-Year Average Compensation in excess of $14,400, both multiplied by the Participant’s years   of Benefit Service (as defined below) as of January 1, 1986.

 

(2)  Thirty-six dollars ($36.00) multiplied by the Participant’s years of Benefit Service as of January 1, 1986.

 

(3)  The retirement income the Participant had accrued as of January 1, 1986 under the provisions of the Plan in effect as of that date.

 

For purposes of this Section 5.2(b), a Participant’s High Five-Year Average Compensation shall mean the annual average of a Participant’s total compensation (including Annual Compensation, overtime, and bonuses but excluding non-recurring components of compensation identified by the board of directors of the Primary Sponsor) for the five consecutive calendar years beginning in 1976 during which the Participant participated in the Plan which produces the highest average, or if the Participant has less than five years of Plan participation as of January 1, 1986, any lesser number of consecutive calendar years in which the Participant participated in the Plan.  “Benefit Service” shall mean completed calendar years of service and calendar months of service until January 1, 1986.

 

5.3  Deferred Retirement.  A Participant may remain an Employee after his Normal Retirement Age.  The pension payable to a Participant who retires as of his Deferred Retirement Date shall be determined in a similar manner as the pension payable pursuant to Section 5.2 of the Plan is determined but based on his years of Credited Service (and Benefit Service) as of his Deferred Retirement Date.  The pension shall commence as of his Deferred Retirement Date, and shall be payable in accordance with Plan Section 6.

 

5.4  Disability Retirement.  If a Participant shall become subject to a Disability while in the employ of a Plan Sponsor, the Participant shall be entitled to receive a pension commencing as of his Disability Retirement Date.  The pension payable under this Section 5.4 shall be determined in a similar manner as the pension paid pursuant to Section 5.2 is determined.  However, during the period the Participant receives a Social Security disability benefit, the Participant shall accrue an additional pension pursuant to Section 5.2(b) based on the assumptions that (1) the rate of his total compensation within the meaning of Plan Section 5.2(b) during the period of Disability is the same as was in effect on the date his Disability commenced, and (2) the Participant completed 190 Hours of Service during each month of Disability.  Such pension shall be payable pursuant to Plan Section 6.  If prior to his Normal Retirement Date a Participant ceases to be subject to a Disability at any time after his Early Retirement Date and does not resume active employment with a Plan Sponsor, he shall be entitled to receive a pension commencing on the first day of the month following the date on 

 

  

 -17-

 

which he ceases to be subject to a Disability.  The amount payable shall be determined in a similar manner as the pension paid pursuant to Plan Section 5.1 is determined, but based on the pension he had accrued on the date he ceased to be subject to a Disability.  If a Participant ceases to be subject to a Disability before his Early Retirement Date, but after he has completed at least five (5) years of Vesting Service, he shall be entitled to receive a pension determined in a similar manner as the pension paid pursuant to Plan Section 7 is determined, but based on the pension he has accrued as of the date he ceased to be subject to a Disability.

 

SECTION 6

 

PAYMENT OF BENEFITS ON RETIREMENT

 

6.1  Timing of Payment.  The Accrued Benefit of a Participant who has attained his Retirement Date or has attained Normal Retirement Age shall become fully vested.  As of a Participant’s Retirement Date, he shall be entitled to his Accrued Benefit which shall be paid in accordance with this Plan Section 6.  Payments to a Participant shall commence no later than sixty (60) days after the end of the Plan Year in which the Participant’s Normal Retirement Date or Deferred Retirement Date occurs; provided, however, if the amount of the payment required to commence on a given date cannot be ascertained by that date, payment shall commence retroactively to that date and shall commence no later than sixty (60) days after the earliest date on which the amount of the payment can be ascertained under the Plan.  A Participant who attains Normal Retirement Age but who has not terminated employment may request that payment of his Accrued Benefit commence as of the first day, of any month following the date the Participant attains his Normal Retirement Age.

 

6.2  Form of Payment.

 

  (a)  Any pension payable pursuant to the Plan shall be in the form of a Normal Fund Payment unless the Actuarial Equivalent of the Participant’s vested Accrued Benefit, expressed as a lump sum payment, exceeds $5,000 at the time he or his Beneficiary is entitled to the commencement of payments and he elects, during the applicable election period, not to receive the Normal Fund Payment by execution and delivery to the Plan Administrator of a form provided for that purpose by the Plan Administrator.  For purposes of this Section, the term “applicable election period” shall mean, with respect to a Normal Fund Payment described in Subsection (a) or (b) of Plan Section 1.33, the 180 day period ending on the first date on which the Participant is entitled to payment, and with respect to a Normal Fund Payment described in Subsection (c) of Plan Section 1.33, the period which begins on the first day of the Plan Year during which an Eligible Employee becomes a Participant and which ends on the Participant’s death.  In the case of a married Participant, no election, other than the election of a Qualified Optional Survivor Annuity, shall be effective unless spousal consent is obtained in accordance with the provisions of Plan Section 1.9.

 

  

 -18-

 

If an election is made, the Participant’s Accrued Benefit shall be paid in the form set forth in Subsection (b) of this Section chosen by the Participant by written instrument delivered to the Plan Administrator prior to the date payments are otherwise to commence.  Any waiver of a Normal Fund Payment under this Subsection (a), made prior to the first day of the Plan Year in which the Participant attains age 35 shall become invalid as of the first day of the Plan Year in which the Participant attains age 35, and provisions of this Subsection (a) shall apply unless a new waiver is obtained.

 

(b)  The alternate forms of payment are:

 

  (1)  In the case of a Participant who retires as of his Early Retirement Date, a life annuity providing for monthly payments for the life of the Participant which shall be payable in a greater amount or in full during the period before he becomes eligible for his old age Social Security benefits and, if applicable, a reduced amount after he becomes eligible for old age Social Security benefits.  The adjusted pension to which the Participant is entitled under the Plan and under Social Security shall be as uniform as possible before and after the Participant becomes eligible for old age Social Security benefits;

 

  (2)  A 100/50 percent joint and survivor annuity, providing for monthly payments, the value of which shall be the Actuarial Equivalent of the Participant’s Accrued Benefit as of the date on which he is entitled to commencement of payment.  This is an actuarially reduced pension payable to and during the lifetime of the Participant with the provision that, after his death, a pension equal to fifty percent (50%) of his reduced pension shall be payable to and during the lifetime of the joint annuitant selected by the Participant;

 

  (3)  A 100/75 percent joint and survivor annuity providing for monthly payments, the value of which shall be the Actuarial Equivalent of the Participant’s Accrued Benefit as of the date on which he is entitled to the commencement of payment.  This is an actuarially reduced pension payable to and during the lifetime of the Participant with the provision that, after his death, a pension equal to seventy five percent (75%) of his reduced pension shall be payable to and during the lifetime of the joint annuitant selected by the Participant.  If the joint annuitant is the Participant’s spouse, then this form of payment is a Qualified Optional Survivor Annuity;

 

  (4)  A 100/100 percent joint and survivor annuity providing for monthly payments, the value of which shall be the Actuarial Equivalent of the Participant’s Accrued Benefit on the date on which he is entitled to commencement of payment.  This is an actuarially reduced pension payable to and during the lifetime of the Participant with the provision that after his death a pension at the rate of one hundred percent (100%) of his reduced pension shall

 

  

 -19-

 

be payable to and during the lifetime of the joint annuitant selected by the Participant;

 

  (5)  A life annuity providing for monthly payments for the life of the Participant with a guaranteed term certain of ten (10) or twenty (20) years as specified by the Participant the value of which shall be the Actuarial Equivalent of the Participant’s Accrued Benefit as of the date on which he is entitled to commencement of payment; and

 

  (6)  If the Actuarial Equivalent of the Participant’s vested Accrued Benefit, expressed as a lump sum payment, is $7,500 or less, a lump sum payment in cash.

 

If a Participant dies before expiration of the guaranteed period certain, payment shall be continued to a Beneficiary who may elect to receive a single lump sum payment.  If the Beneficiary should die after having received at least one payment, any further payments shall be made to any alternate Beneficiary designated by the Participant, or in the absence of a surviving alternate Beneficiary, to the estate of the last surviving Beneficiary, in a single lump sum.

 

(c)  The election of an alternate form of payment under Subsection (b)(2), (3) or (4) shall be invalid if the Participant or his joint annuitant dies before the date on which the monthly payments are to commence.  The election of the alternate form of payment under Subsection (b)(5) shall be invalid if the Participant dies before the date on which the monthly payments are to commence. In all such cases, monthly payments, if any, shall be payable in the form of a Normal Fund Payment.

 

(d)  The Plan Administrator shall furnish to the Participant a written explanation of:

 

(1)  the terms and conditions of the Normal Fund Payment, including a general description of the conditions and eligibility and other material features of the alternate forms of payment under the Plan,

 

(2)  the Participant’s right to make, and the effect of, an election not to receive the Normal Fund Payment, including a general description of the conditions of eligibility and other material features of the alternate forms of payment under the Plan,

 

(3)  the rights of the Participant’s spouse as described in Subsection (a) of this Section, and

 

(4)  the right to make, and the effect of, a revocation of an election pursuant to this Section.

 

  

 -20-

 

  (e)  In the case of a Normal Fund Payment described in subsection (a) or (b) of Plan Section 1.33, the written explanation shall be provided to the Participant not more than 180 days prior to the first date on which he is entitled to payment and not less than 30 days prior to such date, provided that if:

 

    (1)  the Plan Administrator clearly informs the Participant that the Participant has a right to a period of at least 30 days after receiving the notice to consider the decision of whether or not to elect a distribution and a particular distribution option; and

 

    (2)  the Participant and, if spousal consent is otherwise required by the provisions of this Plan, the spouse of the Participant, after receiving the notice, affirmatively waive the 30-day period;

 

then the distribution may be made as soon as practicable but no sooner than the eighth day after the explanation is provided to the Participant.

 

In the case of a Normal Fund Payment described in Subsection (c) of Plan Section 1.33, the written explanation shall be provided to the Participant in whichever of the following periods ends last:

 

    (3)  the period beginning on the first day of the Plan Year in which the Participant attains age 32 and ending on the last day of the Plan Year preceding the Plan Year in which the Participant attains age 35;

 

    (4)  the period beginning one year before and ending one year after the Employee first becomes a Participant; or

 

    (5)  the period beginning one year before and ending one year after the provisions of this Subsection become applicable to the Participant.

 

In the case of a Participant who separates from service before attaining age 35, the written explanation shall be provided in the period beginning one year before and ending one year after separation from service occurs.

 

(f)  The Participant may revoke any election not to receive payment in the form of a Normal Fund Payment at any time prior to commencement of payments, and may make a new election at any time prior to the commencement of payments.

 

6.3  No Distribution Prior to Normal Retirement Age Without Consent. Notwithstanding any other provision of the Plan to the contrary, if the Actuarial Equivalent of a Participant’s vested Accrued Benefit exceeds $5,000, it shall not be distributed prior to the Participant’s Normal Retirement Age (or, if later, termination of employment)  without the written consent of the Participant and, if the Participant is married, his spouse (or if the Participant is deceased, his surviving spouse).  However, in the event of a mandatory 

 

  

 -21-

 

distribution that is greater than $1,000, if the Participant does not elect, in accordance with Plan sections 6.2(d) and 6.2(e), to have such distribution paid directly to an Eligible Retirement Plan specified by the Participant in a direct rollover, or consent to receive the distribution directly, then the Plan Administrator may elect to leave the Participant’s Accrued Benefit in the Plan until the earlier of (i) the Participant Normal Retirement Date, or (ii) the time the Plan Administrator pays the distribution in a direct rollover to an individual retirement plan designated by the Plan Administrator.

 

6.4  Annuity Starting Date. Payments under the Normal Fund Payment shall be determined according to the amount of the Accrued Benefit of the Participant on the date on which the Participant is entitled to commencement of payments, i.e. the annuity starting date.

 

6.5  Required Minimum Distributions. Notwithstanding any other provisions of the Plan, distributions will be made in accordance with the requirements of Code Section 401(a)(9), including the minimum distribution incidental benefit requirements, as administered in accordance with the requirements of Appendix D hereto.

 

6.6  Rehires; Suspension of Benefits.

 

  (a)  For purposes of Sections 6 and 7, if a Participant is reemployed by a Plan Sponsor after the payment of his pension has commenced or if the Participant continues to be employed by a Plan Sponsor after his Normal Retirement Date, the payment of that portion of his pension attributable to contributions by Plan Sponsors shall be suspended for each month during which he performs substantial service for a Plan Sponsor.  For purposes of this Section, a Participant will be deemed to perform substantial service for a calendar month if he or performs forty (40) or more Hours of Service (except for Hours of Service credited as a result of back pay) in such month.

 

  (b)  The payment of a pension which has been suspended shall resume no later than the first day of the third calendar month after the month in which the Participant ceases to perform substantial service for a Plan Sponsor.  Upon resumption, the initial payment shall include the amount of the payment owed for the calendar month of resumption and any amounts which were withheld during the period between the cessation of the performance of substantial service by the Participant and the resumption of payment, reduced by any offsets described in Subsection (c) of this Section.  Although resumed benefits generally shall not be actuarially adjusted to reflect the suspended benefits, a Participant shall receive a pension upon resumption which shall be no less than the Actuarial Equivalent of the benefits, if any, payable under Section 2 of Appendix B to the Plan.

 

  (c)  Upon resuming payment of a pension under Subsection (b) of this Section, there shall be deducted or offset from the payments an amount equal to any payments made by the Plan to the Participant for any months during which the Participant performed substantial service for a Plan Sponsor, provided that the amount 

 

  

 -22-

 

of the deduction or offset shall not exceed in any one month 25% of that month’s retirement benefit payment which would have been due and owing to the Participant, except that the initial payment made upon the resumption of benefit payments shall be subject to deduction or offset without limitation.

 

  (d)  The payment of a pension shall not be suspended as provided in Subsection (a) of this Section unless the Plan Administrator notifies the Participant of the suspension by personal delivery or first class mail during the first calendar month in which payments are to be suspended.  The notification shall contain a description of the specific reasons why payments is being suspended, a general description of the provisions of the Plan relating to the suspension of benefits and a copy of those provisions, a statement to the effect that applicable Department of Labor regulations may be found in Section 2530.203-3 of the Code of Federal Regulations and a statement that the Participant may employ the claims procedures described in Plan Section 9 in order to obtain a review by the Plan Administrator of its decision to suspend payment.  If a reduction or offset is to be made to a Participant’s pension under Subsection (c) of this Section, the notification shall also describe the periods of employment with respect to which payments were previously made from the Plan and during which the Participant performed substantial service for a Plan Sponsor, the amount of pension subject to reduction or offset and the manner in which the Plan intends to reduce or offset the retirement benefit.

 

  (e)  A Participant who is receiving a pension must notify the Plan Administrator of any employment, and in connection therewith the Plan Administrator shall be entitled to request from the Participant any reasonable information which the Plan Administrator deems necessary to verify whether or not the Participant is employed.  The Plan Administrator may, at any times and at any frequency as it deems reasonable, require any Participant who is receiving a pension, as a condition to receiving any future pension payments, to certify to the Plan Administrator in writing that he is unemployed or to provide information sufficient to establish that he is not performing substantial service for any Plan Sponsor.  If the Plan Administrator becomes aware that a Participant who is receiving a pension from the Plan is employed and is performing substantial service in a month for a Plan Sponsor and has not notified the Plan Sponsor of that employment, the Plan Administrator shall be entitled, unless it is unreasonable under the circumstances to do so, to assume that the Participant has performed substantial service for that month.

 

  (f)  A Participant who is receiving a pension shall be entitled to request the Plan Administrator to determine whether any specific contemplated employment for a Plan Sponsor by the Participant will constitute substantial service.  Any request shall be treated as a claim for benefits under Plan Section 9, and accordingly the Participant shall be required to follow the claims procedure described in Plan Section 9 in presenting a request.

 

  

 -23-

 

  (g)  In order to be entitled to the resumption of payment of a pension, the Participant must notify the Plan Administrator in writing that he has ceased to perform substantial service.  The notification by the Plan Administrator which is described in Subsection (d) of this Section shall describe the procedure which the Participant must follow in notifying the Plan Administrator that he has ceased to perform substantial service for a Plan Sponsor and shall include the forms which the Participant must file with the Plan Administrator in connection therewith.

 

  (h)  If a Participant, the payment of whose pension has been suspended, resumes employment with a Plan Sponsor, his pension shall be recomputed upon his subsequent retirement to reflect payments previously paid to him.

 

6.7  Restrictions on Payments to Highly Compensated Employees.

 

  (a)  Notwithstanding anything contained to the contrary in this Plan, the annual payments to a Participant who is among the twenty-five (25) highly compensated employees (within the meaning of Code Section 414(q)) who receive during their most recent year of employment with a Plan Sponsor the greatest Annual Compensation (determined without regard to the Annual Compensation Limit) shall not exceed an amount equal to the payments that would be made on behalf of the Participant under a single life annuity that is the Actuarial Equivalent of the sum of the Participant’s Accrued Benefit and the Participant’s “other benefits” under the Plan.  For purposes of this Section, “other benefits” includes loans in excess of the amounts set forth in Code Section 72(p)(2)(A), any periodic income, any withdrawal values payable to a living Participant, and any death benefit which is payable from the Plan not provided for by insurance on the Participant’s life.

 

  (b)  The restrictions of this Section will not apply, however, if:

 

(1)  after payment to a Participant described in this Section of all benefits described in this Section, the value of the Fund equals or exceeds 110% of the value of the Plan’s current liabilities, as defined in Code Section 412(1)(7) or any successor provision pursuant to Treasury Regulations under Code Section 401(a)(4);

 

(2)  the value of the benefits described in this Section for a Participant described in this Section is less than one percent (1%) of the value of the Plan’s current liabilities, as defined in Code Section 412(l)(7) or any successor provision pursuant to Treasury Regulations under Code Section 401(a)(4);

 

(3)  the value of the benefits for a Participant described in this Section does not exceed $5,000; or

 

(4)  the Plan has terminated and the benefit received by the Participant is non-discriminatory under Code Section 401(a)(4).

 

  

 -24-

 

(c)  Furthermore, the restrictions of this Section will not apply if, prior to the receipt of the otherwise restricted amount, the Participant enters into a written agreement with the Plan Administrator to secure repayment to the Plan of the otherwise restricted amount.  The otherwise restricted amount is the excess of the amounts distributed to the Participant (accumulated with reasonable interest) over the amounts that could have been distributed to the Participant under Subsection (a) above (accumulated with reasonable interest).  The Participant may secure repayment of the otherwise restricted amount upon distribution by:

 

  (1)  Entering into an agreement for promptly depositing in escrow with an acceptable depositary property having a fair market value equal to at least one hundred twenty-five percent (125%) of the otherwise restricted amount;

 

  (2)  Providing a bank letter of credit in an amount equal to at least one hundred percent (100%) of the otherwise restricted amount; or

 

  (3)  Posting a bond equal to at least one hundred percent (100%) of the otherwise restricted amount.

 

6.8  Direct Rollovers.  Notwithstanding any provisions of the Plan to the contrary that would otherwise limit a Distributee’s election under this Section 6, a Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of a distribution pursuant to this Section which is an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover so long as all Eligible Rollover Distributions to a Distributee for a calendar year total or are expected to total at least $200 and, in the case of a Distributee who elects to directly receive a portion of an Eligible Rollover Distribution and directly roll the balance over to an Eligible Retirement Plan, the portion that is to be directly rolled over totals at least $500.  An Eligible Rollover Distribution to which Code Sections 401(a)(11) and 417 do not apply may commence as soon as practicable but no sooner than the eighth day after the notice required by Treasury Regulations Section 1.411 (a)-11(c) is given, provided that:

 

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

 

  (b)  the Distributee and, if spousal consent is otherwise required by the provisions of this Plan, the spouse of the Distributee, after receiving the notice, affirmatively waive the 30-day period.

 

6.9  Limitations on Accelerated Benefit Distributions.  The following restrictions shall apply to the payment of benefits under the Plan except to the extent the Plan is exempt from the requirements of this Section 6.9 by reason of Code Section 436(d)(4).

 

  

 -25-

 

  (a)  If the Plan’s Funding Target Attainment Percentage for any Plan Year is less than sixty percent (60%), the Plan shall not make any Prohibited Payment after the valuation date for such Plan Year.

 

  (b)  If the Plan’s Funding Target Attainment Percentage is at least sixty percent (60%), but less than eighty percent (80%), the Plan may not make any Prohibited Payment after the valuation date for such Plan Year to the extent the amount of such Prohibited Payment exceeds the lesser of:

 

(1)  fifty percent (50%) of the amount of the payment which could be made without regard to this Subsection; or

 

(2)  the present value (determined under guidance prescribed by the PBGC, using the interest and mortality assumptions under Code Section 417(e)) of the maximum guarantee with respect to the Participant under ERISA Section 4022;

 

provided, however, that only one payment under this Subsection may be made to a Participant, his Beneficiary and his “alternate payee” (as defined in Code Section 414(p)) under a “qualified domestic relations order” (as defined in Code Section 414(p)) with respect to such Participant’s Accrued Benefit for any period of consecutive Plan Years to which the limitation of this Subsection applies.  The allocation of the payment among the Participant, his Beneficiary, and his alternate payee shall be in the same manner as the allocation of the Accrued Benefit, unless the qualified domestic relations order provides otherwise.

 

  (c)  If the Plan Sponsor is a debtor in a case under Title 11 of the United States Code or similar Federal or state law, the Plan may not pay any Prohibited Payment until either (1) the Plan Sponsor ceases to be a debtor in any such case, or (2) the Actuary certifies that the Funding Target Attainment Percentage of the Plan is not less than one hundred percent (100%).

 

  (d)  For purposes of this Section, a “Prohibited Payment” means:

 

(1)  Any payment in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of Code Section 411(a)(9)), to any Participant or Beneficiary whose annuity starting date occurs during any period that a limitation under this Section is in effect;

 

(2)      Any payment for the purchase of an irrevocable commitment from an insurer to pay benefits; or

 

(3)  Any other payment specified in regulations issued by the Secretary of the Treasury under Code Section 436(d)(5)(C).

 

  

 -26-

 

(e)  Notwithstanding any other provision of this Plan, this Section shall be construed in a manner which is consistent with Code Sections 430 and 436 and the rulings and regulations issued thereunder.

 

6.10  Limitation on Unpredictable Contingent Event Benefits.  Notwithstanding anything in the Plan to the contrary:

 

(a)  If a Participant is entitled to an Unpredictable Contingent Event Benefit that is payable in a Plan Year, such benefit will not be provided to the Participant if the Funding Target Attainment Percentage for such Plan Year either

 

  (1)  is less than sixty percent (60%); or

 

  (2)  would be less than sixty percent (60%) taking into account the payment of such benefit.

 

   (b)  Notwithstanding the foregoing, Subsection (a) of this Section will not apply for any Plan Year (effective as of the first day of such Plan Year), upon payment by a Plan Sponsor of a contribution (in addition to any minimum required contribution for the Plan Year) equal to:

 

  (1)  In the case of paragraph (a)(i) of this Section, the amount of the increase in the funding target of the Plan (pursuant to Code Section 430) for the Plan Year attributable to the Unpredictable Contingent Event Benefit; or

 

  (2)  In the case of Paragraph (a)(ii) of this Section, the amount sufficient to result in a funding target attainment percentage (as defined in Code Section 430(d)(2)) of at least sixty percent (60%).

 

(c)  For purposes of this Section, “Unpredictable Contingent Event Benefit” is any benefit payable solely by reason of:

 

  (1)  a plant shutdown or similar event, as determined by the Secretary of the Treasury; or

 

  (2)  any event other than the attainment of any age, performance of any service, receipt or derivation of any compensation, or occurrence of death or disability.

 

(d)  Notwithstanding any other provision of this Plan, this Section shall be construed in a manner which is consistent with Code Sections 430 and 436 and the rulings and regulations issued thereunder.

 

  

 -27-

 

SECTION 7

 

PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT OR DEATH

 

7.1  Termination of Employment.  Transfer of a Participant from one Plan Sponsor to another Plan Sponsor or to an Affiliate shall not be deemed for any purpose under the Plan to be a termination of employment of the Participant. For purposes of this Section only, Morrison Fresh Cooking, Inc. and Morrison Health Care, Inc. shall be deemed to be Affiliates of the Primary Sponsor from and after the effective date of the distributions of the common stock of Morrison Fresh Cooking, Inc. and of the common stock of Morrison Health Care, Inc. to the stockholders of the Primary Sponsor.

 

7.2  Timing of Payment of Vested Accrued Benefit. If a Participant ceases to be an Employee for any reason other than the attainment of Retirement Date, he, or his surviving spouse, shall be entitled to receive that portion of his Accrued Benefit in which he is vested as of his termination of employment according to the following vesting schedule:

 

	
Full Years of

Vesting Service

	  	
Percentage

Vested

	  	  	 	  
	
Less than Five

	  	0% 	 
	
Five or more

	  	 100%	 

The pension payable to a Participant, or his surviving spouse, shall be determined in a similar manner as the pension payable pursuant to Plan Section 5.2 is determined but based on his years of Credited Service (and Benefit Service) as of his termination of employment.  Such pension shall commence on what would have been his Normal Retirement Date, except that the pension payable to a Participant or his surviving spouse, who consents to payment prior to what would have been his Normal Retirement Date shall commence upon, or any time after, what would have been his Early Retirement Date, reduced by the applicable factors pursuant to Plan Section 1.2 for each year by which the commencement of such pension precedes the Participant’s Normal Retirement Date.  The pension shall be payable pursuant to Plan Section 6; or Section 4.2, as applicable. Notwithstanding the foregoing, if the present value Actuarial Equivalent of a Participant’s vested Accrued Benefit is $5,000 or less, payment shall be made with a reasonable period of time after the end of the Plan Year in which the Participant’s termination of employment occurs.  However, in the event of a mandatory distribution that is greater than $1,000, if the Participant does not elect, in accordance with Plan sections 6.2(d) and 6.2(e), to have such distribution paid directly to an Eligible Retirement Plan specified by the Participant in a direct rollover, or consent to receive the distribution directly, then the Plan Administrator may elect to leave the Participant’s Accrued Benefit in the Plan until the earlier of (i) the Participant’s Normal Retirement Date, or (ii) the time the Plan Administrator pays the distribution in a direct rollover to an individual retirement plan designated by the Plan Administrator.

 

  

 -28-

 

7.3           Special Lump Sum Window Benefit.  Notwithstanding any other provision of Plan Sections 4, 5 and 6 to the contrary:

(a)           any Participant (i) whose most recent termination of employment was on or before February 2, 2015; (ii) who as of the date that the distribution of his or her Accrued Benefit is processed pursuant to an election made pursuant to this Section 7.3 has not returned to employment with the Primary Sponsor or any Affiliate since his or her most recent termination of employment (the “Window Determination Date”), (iii) whose vested Accrued Benefit has a lump sum present value of $25,000.00 or less determined as of the annuity starting date described in Section 7.3(d); and (iv) who (A) has experienced a termination of employment with a vested Accrued Benefit but has not become eligible to commence distribution of his or her vested Accrued Benefit under Sections 6 or 7 as of the Window Determination Date; or (B) has become eligible to commence, but has not commenced or been required by the Plan to commence, distribution of his or her vested Accrued Benefit under Sections 6 or 7 as of or prior to the Window Determination Date (an “Eligible Window Participant”) may make an election on or after February 2, 2015 and on or before March 31, 2015 (the “Window Period”) to receive his or her Accrued Benefit pursuant to this Section 7.2.

(b)           An Eligible Window Participant (1) who has not otherwise become eligible to commence distribution of the vested Accrued Benefit (or portion thereof) under terms of the Plan as of the Window Determination Date; or (2) who has become eligible to commence, but has not commenced or been required by the Plan to commence distribution of the vested Accrued Benefit (or portion thereof) under the terms of the Plan as of or prior to the Window Determination Date may elect during the Window Period to commence distribution of the vested Accrued Benefit (or portion thereof) in one of the following forms:

(i)           An Eligible Window Participant may elect to receive the distribution in the form of an Actuarial Equivalent (A) lump sum (determined as of the date distribution is to be made on the basis of the Participant’s unsubsidized benefit commencing on or after the Participant’s Normal Retirement Age, as applicable), or (B) a Normal Fund Payment or, subject to any applicable eligibility criteria, a Qualified Optional Survivor Annuity.

(ii)           A Participant who has become eligible to commence distribution of his or her Accrued Benefit may elect any other form of payment described in Section 6.2.

(c)           The period to make a payment election under this Section will be the Window Period, provided that such election may be revoked until the Window Determination Date. Proper elections must be postmarked or received in the manner required by the Plan Administrator on or before the last day of the Window Period, 

 

  

 -29-

 

provided, however, that the Plan Administrator will permit Eligible Window Participants whose elections are postmarked or received by the Plan Administrator in the manner required by the Plan Administrator by the last day of the Window Period to correct any errors or deficiencies in the election within a reasonable period of time following the end of the Window Period as determined by the Plan Administrator.  The payment election process under this Section 7.3 is subject to the consent, timing and explanation rules under Sections 6.2.  The payment election under this Section 7.3 of a Participant who is married as of his or her annuity starting date, determined in accordance with Section 7.3(d), is subject to the spousal consent rules of Section 6.2.

(d)           The Plan Administrator shall commence payment of any distribution elected by an Eligible Window Participant as soon as administratively feasible following confirmation of the Eligible Window Participant’s eligibility to receive distribution of the vested Accrued Benefit (or portion thereof) under this Section 7.3, but no earlier than March 1, 2015.  An electing Eligible Window Participant’s annuity starting date will be the first day of the calendar month in which payment of the Accrued Benefit (or portion thereof) is made or commences during the Window Period.

(e)           In the case of payments made other than in a lump sum, the Accrued Benefit attributable to an Eligible Window Participant who has not yet reached his or her Early Retirement Age shall be actuarially adjusted for years prior to attaining such Participant’s Early Retirement Age in accordance with the factors set forth in Appendix E.

 

(f)           Notwithstanding any other provision to the contrary in this Section 7.3, the following Participants shall not be an Eligible Window Participant:

(1)           any Eligible Window Participant whose election is postmarked or received, in the manner required by the Plan Administrator, after the calendar date on which the elections by other Eligible Window Participants selecting the lump sum form of payment first equal or exceed a collective payment amount of $330,000;

(2) any Participant whose vested Accrued Benefit is subject to a domestic relations order that has been delivered to the Plan Administrator, or for which the Plan Administrator is on notice that it may become subject to a domestic relations order, but which the Plan Administrator has not determined to be a qualified domestic relations order before the Window Determination Date;

(3) any Participant who is eligible for a Disability benefit under Section 5.4;

 

  

 -30-

 

(4) any individual receiving or eligible to receive death benefits under the Plan; or

(5) any alternate payee receiving or eligible to receive benefits under the Plan.

7.4           Forfeitures. As of a Participant’s death or termination of employment, that portion of his Accrued Benefit in which he is not vested shall be forfeited, and any forfeitures resulting from the operation of this Section 7 shall be used to reduce the cost of the Plan by reducing future Plan Sponsor contributions.

 

7.5           Cashout/Buyback

 

(a)  For the purpose of determining a Participant’s Accrued Benefit only, the Plan shall disregard years of Credited Service (and Benefit Service) performed by the Participant with respect to which the Participant received a distribution of the present value of his vested Accrued Benefit attributable to his years of Credited Service and Benefit Service.  For this purpose, a nonvested Participant shall be deemed to have received a distribution of zero dollars.

 

(b)  In the case of a cash out described in Plan Section 7.4(a) which is less than the lump sum present value of the Participant’s vested Accrued Benefit immediately prior to the distribution, the Accrued Benefit due to his termination of participation in the Plan attributable to Credited Service (and Benefit Service) that is not required to be taken into account is the Accrued Benefit multiplied by a fraction, the numerator of which is the amount of the distribution and the denominator of which is the lump sum present value of his total vested Accrued Benefit immediately prior to the distribution.

 

(c)  The Accrued Benefit of a Participant which is disregarded under Plan Section 7.4(a) shall be restored upon repayment to the Plan of the full amount of the distribution with interest on that amount compounded annually at the rate of 120% of the federal mid-term rate as in effect under Code Section 1274 at the beginning of each Plan Year from the date of distribution to the date of repayment, or upon reemployment if the Participant received a deemed distribution of zero dollars; provided that:

 

(1)  The distribution received under Plan Section 7.4(a) was less than the lump sum present value of the Participant’s Accrued Benefit, and

 

(2)  The Participant resumes employment covered under the Plan and makes repayment within five years of the resumption of employment.

 

7.6           Change to Vesting Schedule. In the event that an amendment to the Plan directly or indirectly changes the vesting schedule of the Plan, the vested percentage for each Participant accumulated to the date when the amendment is adopted shall not be reduced as a result of such amendment.  In addition, any Participant with at least three (3) years of Vesting Service 

 

  

 -31-

 

may irrevocably elect to remain under the vesting schedule in operation prior to the amendment with respect to benefits accrued both before and after the amendment.

 

SECTION 8

 

ADMINISTRATION OF THE PLAN

 

8.1  Trust Agreement.  The Primary Sponsor shall enter into a Trust with the Trustee for the management of the Fund, which Trust shall form a part of the Plan and is incorporated herein by reference.

 

8.2  Operation of the Plan Administrator.  The Primary Sponsor shall appoint the Plan Administrator.  If an organization is appointed to serve as the Plan Administrator, then the Plan Administrator may designate in writing a person who may act on behalf of the Plan Administrator.  The Primary Sponsor shall have the right to remove the Plan Administrator at any time by notice in writing.  The Plan Administrator may resign at any time by written notice of resignation to the Trustee and the Primary Sponsor.  Upon removal or resignation, or in the event of the dissolution of the Plan Administrator, the Primary Sponsor shall appoint a successor.

 

8.3  Fiduciary Responsibility.

 

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

 

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

 

  (c)  To the extent not prohibited by law, each Plan Sponsor shall indemnify and hold harmless each person constituting the Plan Administrator from and against any and all claims, losses, costs, expenses (including, without limitation, attorney’s fees and court costs), damages, actions or causes of action arising from, on account of or in connection with the performance by such person of his duties in such capacity, other than such of the foregoing arising from, on account of or in connection with the willful neglect or willful misconduct or gross negligence of such person so acting.

 

  

 -32-

 

8.4  Duties of the Plan Administrator.

 

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

 

   (b)  The Plan Administrator shall establish rules, not contrary to the provisions of the Plan and the Trust, for the administration of the Plan and the transaction of its business.  All elections and designations to be made under the Plan by a Participant or Beneficiary shall be made on forms prescribed by the Plan Administrator.  The Plan Administrator shall have discretionary authority to construe the terms of the Plan and shall determine all questions arising in the administration, interpretation and application of the Plan, including, but not limited to, those concerning eligibility for benefits.  All determinations of the Plan Administrator shall be conclusive and binding on all parties, including, without limitation, Employees, Participants, Beneficiaries, and Fiduciaries, subject to the provisions of the Plan and the Trust and subject to applicable law.

 

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

 

   (d)  The statement of specific duties for a Plan Administrator in this Section 8.4 is not in derogation of any other duties which a Plan Administrator has under the provisions of the Plan or the Trust or under applicable law..

 

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

 

8.6  Investment Committee.  The Primary Sponsor may, by action in writing certified by notice to the Trustee, appoint an Investment Committee to direct the investment of the Plan.  The Investment Committee shall consist of one or more persons and the Primary Sponsor shall have the right to remove any person constituting any part of the Investment Committee at any time by notice in writing to such person.  A person constituting any part of the Investment Committee may resign at any time by written notice of resignation to the Primary Sponsor.  

 

  

 -33-

 

Upon removal, resignation or death, the Primary Sponsor may appoint a successor to that person.  Until a successor has been appointed, the remaining persons constituting the Investment Committee may continue to act as the Investment Committee.

 

8.7  Action by the Primary Sponsor or a Plan Sponsor.  Any action to be taken by the Primary Sponsor or a Plan Sponsor shall be taken by resolution or written direction duly adopted by its board of directors or appropriate governing body; provided, however, that by resolution or written direction, the board of directors or appropriate governing body may delegate to any officer or other appropriate person the authority to take any such actions as may be specified in such resolution or written direction.

 

8.8  Employees of Commonly Controlled Businesses.  Except as provided in Section 3 of Appendix B to the Plan, all employees of all corporations which are members of a controlled group of corporations (as defined in Section 414(b) of the Code), all employees of all trades or businesses (whether or not incorporated) which are under common control (as defined in Section 414(c) of the Code), and all employees of all corporations, partnerships, or other organizations which are members of an affiliated service group (as defined in Section 414(m) of the Code) and all employees of any other entity required to be aggregated with a Plan Sponsor pursuant to regulations under Section 414(o) of the Code shall be treated as employed by a single employer.

 

8.9  Appeals Fiduciary. The Primary Sponsor shall appoint an Appeals Fiduciary. The Appeals Fiduciary shall be required to review claims for benefits payable due to a Participant’s Disability that are initially denied by the Plan Administrator and for which the claimant requests a full and fair review pursuant to Section 9.4.  The Appeals Fiduciary may not be the individual who made the initial adverse determination with respect to any claim he reviews and may not be a subordinate of any individual who made the initial adverse determination.  The Appeals Fiduciary may be removed in the same manner in which appointed or may resign at any time by written notice of resignation to the Primary Sponsor.  Upon such removal or resignation, the Primary Sponsor shall appoint a successor.

 

8.10  Corrective Action.  Notwithstanding any provision of the Plan to the contrary, the Plan Sponsor may make corrective contributions, allocations, or distributions or take any other corrective action required to comply with, or otherwise permitted by, any program provided pursuant to applicable law, including without limitation the Employee Plans Compliance Resolution System or any successor guidance.

 

SECTION 9

 

CLAIM REVIEW PROCEDURE

 

9.1  Notice of Denial. If a Participant (or other person entitled to file a claim for benefits under ERISA) (a “claimant”) is denied a claim for benefits under the Plan, the Plan Administrator shall provide to the claimant written notice of the denial within ninety (90) days

 

  

 -34-

 

 (forty-five (45) days with respect to a denial of any claim for benefits due to the Participant’s Disability) after the Plan Administrator receives the claim, unless special circumstances require an extension of time for processing the claim.  If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period.  In no event shall the extension exceed a period of ninety (90) days (thirty (30) days with respect to a claim for benefits due to the Participant’s Disability) from the end of such initial period.  With respect to a claim for benefits due to the Participant’s Disability, an additional extension of up to thirty (30) days beyond the initial 30-day extension period may be required for processing the claim.  In such event, written notice of the extension shall be furnished to the claimant within the initial 30-day extension period.  Any extension notice shall indicate the special circumstances requiring the extension of time, the date by which the Plan Administrator expects to render the final decision, the standards on which entitlement to benefits are based, the unresolved issues that prevent a decision on the claim and the additional information needed to resolve those issues.

 

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

 

   (a)  the specific reasons for the denial;

 

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

 

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

 

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

 

   (e)  in the case of a claim for benefits due to a Participant’s Disability, if an internal rule, guideline, protocol or other similar criterion is relied upon in making the adverse determination, either the specific rule, guideline, protocol or other similar criterion; or a statement that such rule, guideline, protocol or other similar criterion was relied upon in making the decision and that a copy of such rule, guideline, protocol or other similar criterion will be provided free of charge upon request; and

 

   (f)  in the case of a claim for benefits due to a Participant’s Disability, if a denial of the claim is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the denial, an explanation applying the terms of the Plan to the claimant’s medical circumstances or a statement that such explanation will be provided free of charge upon request.

 

  

 -35-

 

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

 

   (a)  request a full and fair review of the denial of the claim or determination that a domestic relations order is a qualified domestic relations order by written application to the Plan Administrator (or Appeals Fiduciary in the case of a claim for benefits payable due to a Participant’s Disability);

 

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

 

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

 

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

 

9.4  Application for Review.

 

   (a)  If a claimant wishes a review of the decision denying his claim to benefits under the Plan, other than a claim described in Subsection (b) of this Section 9.4, or if a claimant wishes to appeal a decision that a domestic relations order is a qualified domestic relations order, he must submit the written application to the Plan Administrator within sixty (60) days after receiving written notice of the denial or notice that the domestic relations order is a qualified domestic relations order.

 

   (b)  If the claimant wishes a review of the decision denying his claim to benefits under the Plan due to a Participant’s Disability, he must submit the written application to the Appeals Fiduciary within one hundred eighty (180) days after receiving written notice of the denial.  With respect to any such claim, in deciding an appeal of any denial based in whole or in part on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate), the Appeals Fiduciary shall

 

(1)  consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment; and

 

(2)  identify the medical and vocational experts whose advice. was obtained on behalf of the Plan in connection with the denial without regard to 

 

  

 -36-

 

whether the advice was relied upon in making the determination to deny the claim. 
  

Notwithstanding the foregoing, the health care professional consulted pursuant to this Subsection (b) shall be an individual who was not consulted with respect to the initial denial of the claim that is the subject of the appeal or a subordinate such individual.

 

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

 

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

 

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

 

9.8  Decision on Review. No later than sixty (60) days (forty-five (45) days with respect to a claim for benefits due to the Participant’s Disability) following the receipt of the written application for review, the Plan Administrator or the Appeals Fiduciary, as applicable, shall submit its decision on the review in writing to the claimant involved and to his representative, if any, unless the Plan Administrator or Appeals Fiduciary determines that special circumstances (such as the need to hold a hearing) require an extension of time, to a day no later than one hundred twenty (120) days (ninety (90) days with respect to a claim for benefits due to the Participant’s Disability) after the date of receipt of the written application for review.  If the Plan Administrator or Appeals Fiduciary determines that the extension of time is required, the Plan Administrator or Appeals Fiduciary shall furnish to the claimant written notice of the extension before the expiration of the initial sixty (60) day (forty-five (45) days with respect to a claim for benefits due to the Participant’s Disability) period.  The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator or Appeals Fiduciary expects to render its decision on review.  In the case of a decision adverse to the claimant, the Plan Administrator or Appeals Fiduciary shall provide to the claimant written notice of the denial which shall include:

 

(a)  the specific reasons for the decision;

 

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

 

  

 -37-

 

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

 

(d)  a statement describing any available voluntary appeal procedures (if any) and of the claimant’s right to obtain information about such procedures as required by ERISA and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA following the denial of the claim upon review;

 

(e)  in the case of a claim for benefits due to the Participant’s Disability, if an internal rule, guideline, protocol or other similar criterion is relied upon in making the adverse determination, either the specific rule, guideline, protocol or other similar criterion; or a statement that such rule, guideline, protocol or other similar criterion was relied upon in making the decision and that a copy of such rule, guideline, protocol or other similar criterion will be provided free of charge upon request;

 

(f)  in the case of a claim for benefits due to a Participant’s Disability, if a denial of the claim is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the denial, an explanation applying the terms of the Plan to the claimant’s medical circumstances or a statement that such explanation will be provided free of charge upon request; and

 

(g)  in the case of a claim for benefits due to a Participant’s Disability, a statement regarding the availability of other voluntary alternative dispute resolution options.

 

SECTION 10

 

LIMITATION OF ASSIGNMENT PAYMENTS TO LEGALLY

INCOMPETENT DISTRIBUTEE AND UNCLAIMED PAYMENTS

 

10.1  Anti-Alienation. No benefit which shall be payable under the Plan to any person shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge same shall be void.  No benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person, nor shall it be subject to attachment legal process for, or against, any person, and the same shall not be recognized under the Plan, except to such extent as may be required by law.  If any person who shall be entitled to any benefit under the Plan shall become bankrupt or shall attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the benefit under the Plan, then the payment of that benefit shall, in the discretion of the Plan Administrator, terminate and in that event the Trustee shall hold or apply the same for the benefit of such person, his spouse, children, other dependents or any of them in the manner and proportion as the Plan Administrator shall determine.  Notwithstanding the above, this Section shall not apply to a qualified domestic 

 

  

 -38-

 

relations order (as defined in Section 414(p) of the Code), and benefits may be paid pursuant to the provisions of such an order.  The Plan Administrator shall develop procedures in accordance with applicable federal regulations to determine whether a domestic relations order is qualified, and, if so, the procedures for complying therewith.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.4  Missing Recipients. If the Plan Administrator cannot ascertain the whereabouts of any person to whom a payment is due under the Plan, the Plan Administrator may direct that the payment and all remaining payments otherwise due to the person be cancelled on the records of the Plan and the amount thereof applied as a forfeiture in accordance with Plan Section 0, except that, in the event the person later notifies the Plan Administrator of his whereabouts and requests the payments due to him under the Plan, the Plan Sponsor shall contribute to the Plan an amount equal to be paid to him as soon as administratively feasible.

 

10.5  Non-Liability.  Any payment to a person, or to the legal representative of a person in accordance with the provisions of this Plan, shall to the extent thereof be in full satisfaction of all claims under this Plan against the Trustee, the Plan Administrator and the 

 

  

 -39-

 

Plan Sponsor, any of whom may require such person as a condition precedent to such payment, to execute a receipt and release therefor in such form as shall be determined by the Trustee, the Plan Administrator, or the Plan Sponsor, as the case may be. The Plan Sponsor does not guarantee the Trust, or any person entitled to a benefit under the Plan against loss of or depreciation in value of any right or benefit that any of them may acquire under the terms of this Plan. All of the benefits payable under this Plan shall be paid or provided solely from the Trust, and the Plan Sponsor does not assume any liability or responsibility for payment of such benefits.

 

SECTION 11

 

PROHIBITION AGAINST DIVERSION

 

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

 

SECTION 12

 

LIMITATION OF RIGHTS

 

Neither the Plan, the Trust nor the fact of Plan participation shall give any Employee or other person any right except to the extent that the right is specifically fixed under the terms of the Plan and the Fund is sufficient therefor.  The establishment of the Plan shall not be construed to give any Employee a right to continue in the employ of a Plan Sponsor or as interfering with the right of the Plan Sponsor to terminate the employment of any Employee at any time.

 

SECTION 13

 

AMENDMENT AND TERMINATION

 

13.1  Right to Amend or Terminate Plan.  The Primary Sponsor reserves the right at any time to modify, amend, or terminate the Plan or the Trust in whole or in part by notice thereof in writing delivered to the Trustee; provided, however,

 

(a)  that the Primary Sponsor shall have no power to modify or amend the Plan in such manner as would cause or permit any portion of the funds held under the Plan to be used for, or diverted to, purposes other than for the exclusive benefit of Participants or their Beneficiaries, or as would cause or permit any portion of any funds held under the Plan to become the property of a Plan Sponsor;

 

  

 -40-

 

(b)  the duties or liabilities of the Trustee shall not be increased without the Trustee’s written consent; and

 

(c)  no amendment to the Plan that has the effect of increasing liabilities of the Plan by reason of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become vested and nonforfeitable may take effect in any Plan Year if the Funding Target Attainment Percentage for the Plan Year is either

 

(1)  less than eighty percent (80%); or

 

(2)  eighty percent (80%) or more, but would be less than eighty percent (80%) if the benefits attributable to the amendment were taken into account in determining the Funding Target Attainment Percentage;

 

provided, however that the restriction in this Subsection shall not apply (i) as of the later of the first day of the Plan Year or the effective date of the amendment  upon payment by the Plan Sponsor of a contribution to the Trust (in addition to any minimum required contribution under Code Section 430) equal to, in the case of Paragraph (1), the amount of the increase in the funding target of the Plan (under Code Section 430) for the Plan Year attributable to the amendment, or in the case of Paragraph (2), the amount sufficient to result in a Funding Target Attainment Percentage of eighty percent (80%) or greater; or (ii) to an amendment that increases benefits under a formula that is not based on a Participant’s compensation, but only if the rate of increase in benefits does not exceed the contemporaneous rate of increase in average wages of Participants covered by the amendment.

 

In the event of termination of the Plan, the benefit of each Participant who is a former or present highly compensated employee as defined in Code Section 414(q) is limited to a benefit that is non-discriminatory under Code Section 401(a)(4).  No modifications or amendments shall have the effect of retroactively changing or depriving Participants or Beneficiaries of rights already accrued under the Plan.  No Plan Sponsor other than the Primary Sponsor shall have the right to so modify, amend or terminate the Plan or the Trust.

 

13.2  Right to Terminate by Adopting Affiliate.  Each Plan Sponsor, other than the Primary Sponsor, shall have the right to terminate its participation in the Plan and Trust by the adoption of a resolution of its board of directors or other appropriate governing body and the giving of notice in writing to the Primary Sponsor and the Trustee, unless the termination would result in the disqualification of the Plan or the Trust as to any other Plan Sponsor.  If contributions by or on behalf of a Plan Sponsor completely and permanently cease, the Plan and Trust shall be deemed terminated as to such Plan Sponsor, provided, however, that if contributions of a Plan Sponsor completely and permanently cease in connection with a bankruptcy proceeding where that Plan Sponsor is the bankrupt entity, such circumstances, in and of themselves, shall not cause any portion of the Plan and Trust to be deemed terminated.  

 

  

 -41-

 

In the event of the termination of the Plan, the benefits payable to any “highly compensated employee,” as defined in Code Section 414(q), is limited to an amount that is nondiscriminatory under Code Section 401(a)(4).

 

13.3  Notice of Termination.  In the event that the Primary Sponsor shall desire to terminate the Plan, within meaning of Section 4041 of ERISA, the Plan Administrator shall notify the PBGC, each Participant, each Beneficiary, and each other affected party of the proposed termination of the Plan in accordance with the provisions of the Single-Employer Pension Plan Amendments Act of 1986 (“SEPPAA”) and regulations issued by the PBGC thereunder.  Amounts paid from the Fund pursuant to a termination of the Plan and final distribution of the Fund shall be in accordance with Section 13.4 of the Plan, subject to SEPPAA and regulations issued by the PBGC thereunder.

 

13.4  Priority Categories. In the event of the termination of the Plan in accordance with Section 4041 of ERISA, the assets of the Plan shall be distributed in accordance with Section 4044 of ERISA and any regulations issued thereunder.  In order that the assets of the Plan may be properly allocated, the total benefits payable under the Plan shall be divided with respect to each affected Participant among the priority categories (a) through (g) set forth below.  Each affected Participant’s benefit assigned to a particular priority category shall then be separated between basic benefits and non-basic benefits.  The Plan Administrator shall then value each type of benefit in each priority category in accordance with the valuation factors prescribed by the PBGC, and shall then allocate the assets of the Plan sequentially to the following priority categories:

 

   (a)  That portion, if any, of each Participant’s Accrued Benefit which is derived from his voluntary employee contributions.

 

   (b)  That portion, if any, of each Participant’s Accrued Benefit which is derived from his mandatory employee contributions.

 

   (c)  Those benefits, excluding any increases in such benefits resulting from Plan amendments during the preceding five (5) years, payable as an annuity under the terms of the Plan to all Participants and Beneficiaries:

 

  (1)  to whom benefits have been in pay status for at least three (3) years prior to the date of the Plan’s termination, taking the lowest benefit in pay status during such three (3) year period, and

 

  (2)  to whom benefits (other than those described in the foregoing priority (c)(1)) would have been in pay status as of the beginning of such three (3) year period had an eligible Participant actually retired on a retirement date prior to the beginning of such three (3) year period, as if such benefits had commenced as a Normal Fund Payment as of the beginning of such three (3) year period.

 

  

 -42-

 

  (d)  Those basic benefits, other than those benefits payable pursuant to the foregoing priority categories (b) and (c) to which Participants or their Beneficiaries are entitled, or would be, entitled if their employment were terminated on the date of the Plan’s termination, to the extent such benefits are guaranteed by the PBGC.  For purposes of this Section, the term “basic benefits” means the type of benefits which are, or would be, guaranteed under Section 4022 of ERISA and the regulations issued thereunder, without regard to the limitations set forth in Section 4022(b) of ERISA.

 

  (e)  All other benefits payable in which such Participant is vested as of the date of its termination; provided, however, that if the Plan assets are insufficient to satisfy in full the benefits provided pursuant to this priority category (e), the available assets shall be allocated in accordance with Section 13.6 of the Plan.

 

  (f)  All other benefits provided for under the Plan.

 

  (g)  If any assets remain as a result of actuarial error after complete allocation pursuant to this Section 13.4, such remaining assets shall be paid to the terminating Plan Sponsor.

 

13.5  Insufficient Assets. In the event Plan assets shall be insufficient to provide in full the benefits of the entire class of individuals described within any priority category other than priority category (e), the available assets for such class shall be allocated among the Participants of that class and their Beneficiaries, pro rata among such individuals on the basis of the present value (as of the Participating Plan’s termination date) of their respective benefits as described in such Section 4044.

 

13.6  Insufficient Assets for Category (e) In the event that the assets available for allocation under Section 13.4(e) are insufficient to satisfy in full the benefits of Participants described within that Section, the available assets for such class shall be allocated on the basis of the benefits of Participants of that class and their Beneficiaries, based upon the Plan as in effect at the beginning of the five (5) year period ending on the date of termination; or, if additional assets remain available for allocation under such Section 13.4(e), the available assets shall be allocated on the basis of the Plan as amended by the most recent amendment to the Plan effective during such five (5) year period, under which the assets available for allocation are sufficient to satisfy in full the benefits of the class of individuals described in Section 13.4(e) and any assets thereafter remaining to be allocated under such Section 13.4(e) shall be allocated on the basis of the Plan as amended by the next succeeding amendment to the Plan effective during such five (5) year period.

 

13.7  Benefits Payable.  The Plan Administrator may direct that any benefit payable in accordance with Section 13.4 shall be provided through the continuance of the existing Trust or through the purchase of annuity contracts from an insurance company, or by a combination thereof.

 

  

 -43-

 

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

 

13.9  Full Vesting.  Subject to the limitations on entitlements to benefits contained in this Section 13 and in Section 14 of the Plan, in the event of the termination or partial termination of the Plan, each affected Participant’s Accrued Benefit as of the date of such termination or partial termination, to the extent funded as of such date, shall be fully vested, notwithstanding the provisions of Section 0.

 

13.10  Elimination of Benefits. A Plan amendment--

 

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

 

   (b)  which eliminates an optional form of benefit,

 

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

 

13.11  Assumption of Plan; Transfer of Assets.  If the Primary Sponsor merges or consolidates with or into a corporation, or if substantially all of the assets of the Primary Sponsor are transferred to another business, the Plan hereby created shall terminate on the effective date of such merger, consolidation or transfer.  However, if the surviving corporation resulting from such merger or consolidation, or the business to which the Primary Sponsor’s assets have been transferred, adopts this Plan, it shall continue and such corporation or business shall succeed to all rights, powers and duties of the Primary Sponsor hereunder.  The employment of any Employee who continues in the employ of such successor corporation or business shall not be deemed to have been terminated for any purpose hereunder.

 

In no event shall this Plan be merged or consolidated with any other plan, nor shall there be any transfer of assets or liabilities from this Plan to any other plan, unless immediately after such merger, consolidation or transfer, each Participant’s benefits, if such other plan were then to terminate, are at least equal to or greater than the benefits to which the Participant would have been entitled, had this Plan been terminated immediately before such merger, consolidation, or transfer.

 

  

 -44-

 

Notwithstanding any other provision hereof to the contrary, to the extent specified in a resolution of the board of directors of the Primary Sponsor, or such person or persons to whom authority has been delegated by such board of directors,  assets and liabilities in an amount determined by the Actuary may be transferred to another company’s qualified plan.  Thereafter, the Primary Sponsor and the Plan shall be completely discharged of all obligations to a Participant, the company to which an employee is transferred and the plan to which assets are transferred.

 

SECTION 14

 

ADOPTION OF PLAN BY AFFILIATES

 

Any trade or business related to the Primary Sponsor by function or operation and any Affiliate, if the trade or business or Affiliate is authorized to do so by a written direction adopted by the Primary Sponsor, may adopt the Plan and Trust by action of the trade of business or Affiliate.  Any adoption shall be evidenced by certified copies of the resolutions indicating the adoption and by the execution of the Trust by the adopting trade or business or Affiliate.  The resolution shall state the Effective Date for the purpose of the adopting trade or business Affiliate and, for the purpose of Code Section 415, the limitation year as to the adopting trade business or Affiliate.  However, if the Plan and Trust as adopted by a trade or business or Affiliate under the foregoing provisions shall fail to receive the initial approval of the Internal Revenue Service as a qualified Plan and Trust, any contributions by the adopting trade or business or Affiliate after payment of all expenses will be returned to the adopting trade or business or Affiliate free of any trust, and the Plan and Trust shall terminate as to the adopting trade or business or Affiliate.

 

SECTION 15

 

RETURN OF CONTRIBUTIONS

 

All contributions to the Plan are conditioned upon deductibility under Code Section 404.  To the extent permitted by the Code and other applicable laws and regulations thereunder, upon a Plan Sponsor’s request, a contribution which was made by a mistake-in-fact, or conditioned upon initial qualification or upon the deductibility of the contribution under Section 404 of the Code shall be returned to a Plan Sponsor within one (1) year after the payment of the contribution, the denial of the qualification, or the disallowance of the deduction (to the extent disallowed), whichever is applicable.  The amount to be returned to the Plan Sponsor shall be the excess of the contribution above the amount that would have been contributed had the mistake of fact or the mistake in determining the deduction not occurred, less any net loss attributable to such excess.  Any net income attributable to such excess shall not be returned to the Plan Sponsor.  In the event of a contribution which was conditioned upon initial qualification of the Plan, the amount to be returned to the Plan sponsor shall be all of the assets of the Fund.

 

  

 -45-

 

SECTION 16

 

INCORPORATION OF SPECIAL LIMITATIONS

 

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

 

[Signature is on the following page.]

 

 

 

  

 -46-

 

IN WITNESS WHEREOF, the Primary Sponsor has caused this indenture to be executed as of the day and year first above written.

 

RUBY TUESDAY, INC.

By: /s/ James J. Buettgen

James J. Buettgen

President, Chairman, and Chief Executive Officer

ATTEST:

/s/ Brian Wanamaker

Brian Wanamaker

Assistant Secretary

 

[CORPORATE SEAL]

  

 -47-

 

APPENDIX A

 

LIMITATION ON BENEFITS

 

SECTION 1

 

(a)  Notwithstanding any other provision of the Plan, in no event shall the annual pension benefit of a Participant attributable to Plan Sponsor contributions and payable as a straight life annuity at Normal Retirement Age exceed the lesser of (1) the dollar limit in effect under Code Section 415(b)(1)(A) $210,000, subject to adjustment in accordance with regulations issued by the Secretary of Treasury or other applicable provision of law, provided that any adjustment shall be effective as of January 1 of each calendar year and shall be applicable with respect to the limitation year ending with or within each calendar year or (2) 100% of the Participant’s average Annual Compensation for the three consecutive calendar years during which (A) he was a Participant and (B) his aggregate Annual Compensation from a Plan Sponsor was the highest (the “High Consecutive Three Years”).  For purposes of determining a Participant’s High Consecutive Three Years, any “break in service,” within the meaning of Treas. Reg. Section 1.415(b)-1(a)(5)(iii), will be disregarded.

 

(b)  Effective July 1, 2008, the limitations in Section 1(a) shall be adjusted annually permitting an increase in a Participant’s periodic payments effective for payments due on or after January 1 of the limitation year for which the increase in the limitation year is effective.  The adjusted limitation in Section 1 shall be equal to the greater of the amount that would be permitted without regard to the adjustment multiplied by a fraction, the numerator of which is the limitation under Section 1(a)(1) or Section 1(a)(2), whichever is less, taking into account the adjustment and the denominator of which is the limitation in effect for the immediately preceding limitation year.

 

(1)  The limitation under Section 1(a)(1) shall be adjusted for each limitation year by multiplying the limitation applicable for the immediately preceding limitation year by an annual adjustment factor, with any result that is not a multiple of $5,000 rounded down to the next lowest multiple of $5,000.  For purposes of this Section 1(b)(1), the “annual adjustment factor” is a fraction, the numerator of which is the value of the applicable index for the calendar quarter ending September 30 of the calendar year preceding the calendar year for which the adjustment is being made and the denominator of which is the value of such index for the calendar quarter beginning July 1, 2001; provided that if the fraction determined under this sentence is less than one (1), then such fraction shall be deemed to be equal to (1).

 

(2)  The limitation under Section 1(a)(2) shall be adjusted for each limitation year after the Participant’s termination of employment by multiplying 

 

  

 A-1

 

the limitation applicable for the immediately preceding limitation year by an annual adjustment factor.  For purposes of this Section 1(c), the “annual adjustment factor” is a fraction, the numerator of which is the value of the “applicable index” for the calendar quarter ending September 30 of the calendar year preceding the calendar year for which the adjustment is being made and the denominator of which is the value of such index for the September 30 of the calendar year prior to the calendar year used in the numerator; provided that if the fraction determined under this sentence is less than one (1), then such fraction shall be deemed to be equal to one (1) and the adjustment factor for future calendar years will be determined in accordance with revenue rulings, notices, or other published guidance prescribed by the Commissioner of the Internal Revenue Service and published in the Internal Revenue Bulletin.  Any rehired Participant’s High Consecutive Three Years will be the amount determined under Section 1(a)(2) or, if greater, the amount determined under Treas. Reg. Section 1.415(d)-1(a)(2)(iii).

 

(3)  For purposes of this Section 1(b), the “applicable index” is determined consistent with the procedures to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act (92 P.L. 336).

 

(c)  For purposes of determining the annual pension benefit due to Plan Sponsor contributions, a Participant will be treated as having elected a straight life annuity for his own life commencing on the same date as the form of benefit chosen by the Participant, which annuity is the actuarial equivalent of the form of benefit chosen by the Participant.

 

(1)  For purposes of this Subsection (c), the actuarial equivalent of the Participant’s chosen form of benefit will be determined by whichever of the following factors results in the largest equivalent straight life annuity:

 

   (A)  for benefits to which Code Section 417(e)(3) does not apply the actuarially equivalent straight life annuity benefit is the greater of:

 

   (i)           the annual amount of the straight life annuity (if any) payable to the Participant under the Plan commencing at the same annuity starting date as the form of benefit payable to the Participant; or

 

   (ii)           the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the Participant, computed using a five percent (5%) interest assumption and the applicable mortality table described in Treas. Reg. Section 1.417(e)-1(d)(2) for that annuity starting date.

 

  

 A-2

 

(B)  for benefits to which Code Section 417(e)(3) applies, the actuarial equivalent straight life annuity is the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using whichever of the following factors yields the greatest benefit:

 

(i)           the interest rate and mortality table, or tabular factor, specified in the Plan;

 

(ii)           a five and a half percent (5.5%) interest rate assumption and the applicable mortality table for the distribution under Treas. Reg. Section 1.417(e)-1(d)(2); or

 

(iii)          the applicable interest rate for the distribution under Treas. Reg. Section 1.417(e)-1(d)(3) and the applicable mortality table for the distribution under Treas. Reg. Section 1.417(e)-1(d)(2), with the amount so computed divided by 1.05.

 

Notwithstanding the foregoing, for distributions to which Code Section 417(e)(3) applies which have annuity starting dates in the Plan Years beginning in 2004 or 2005, except as provided in Section 101(d)(3) of the Pension Funding Equity Act of 2004 (108 P.L. 218), the actuarial equivalent straight life annuity is the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table (or tabular factor) specified in the Plan or a five and a half percent (5.5%) interest rate assumption and the applicable mortality table for the distribution under Treas. Reg. Section 1.417(e)-1(d)(2), whichever yields the greater benefit.

 

(2)  For purposes of the adjustments under paragraph (1) of this Subsection (c) above, the following benefits are not taken into account:

 

(A)  Survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity (as defined in Code Section 417(b)), whether or not such qualified joint and survivor annuity is paid in conjunction with some other form of benefit (such as a single-sum distribution), to the extent that such benefits would not be payable if the participant’s benefit were not paid in the form of a qualified joint and survivor annuity.

 

(B)  Ancillary benefits (other than a social security supplement described in Code Section 411(a)(9) and Treas. Reg. Section 1.411(a)-7(c)(4)) that are not directly related to retirement benefits, such as 

 

  

 A-3

 

preretirement disability benefits not in excess of the qualified disability benefit, preretirement incidental death benefits (including a qualified preretirement survivor annuity), and post-retirement medical benefits.

 

(3)  Notwithstanding the preceding provisions of this Section 1, no adjustment is required to a benefit that is paid in a form that is not a straight life annuity to take into account the inclusion in that form of an automatic benefit increase feature if the benefit is paid in a form to which Code Section 417(e)(3) does not apply and the form of benefit, without regard to the automatic benefit increase feature, satisfies the requirements of Code Section 415(b) and this Appendix.  If the form of benefit without regard to the automatic benefit increase feature is not a straight life annuity, then the limitations in Sections 1(a)(1) and (2) are applied by reducing the limitation applicable at the annuity starting date to an actuarially equivalent amount (determined using the assumptions specified in paragraph (1)(A)(ii) of this section) that takes into account the death benefits under the form of benefit (other than the survivor portion of a qualified joint and survivor annuity).   For purposes of this paragraph (3), an “automatic benefit increase feature” is included in a form of benefit if that form provides for automatic, periodic increases to the benefits paid in that form, such as a form of benefit that automatically increases the benefit paid under that form annually according to a specified percentage or objective index, or a form of benefit that automatically increases the benefit paid in that form to share favorable investment returns on Plan assets.

 

SECTION 2

 

If annual pension benefits to a Participant commence before the Participant attains age 62, the limitation under Section 1(a)(1) of this Appendix shall be age-adjusted as provided in this Section 2.  The age-adjusted limit is determined as the actuarial equivalent of the annual amount of a straight life annuity commencing on the annuity starting date that has the same actuarial present value as a deferred straight life annuity commencing at age 62, where annual payments under the straight life annuity commencing at age 62 are equal to the adjusted Section 1(a)(1) limitation and where the actuarial equivalent straight life annuity is computed assuming a five percent (5%) interest rate and the applicable mortality table that is effective for that annuity starting date under Treas. Reg. Section 1.417(e)-1(d)(2) (expressing the Participant’s age based on completed calendar months as of the annuity starting date).  However, if the Plan has an immediately commencing straight life annuity payable at both age 62 and the age of benefit commencement, the age-adjusted limitation shall be the lesser of the age-adjusted limitation described in the immediately preceding sentence or the adjusted Section 1(a)(1) limitation multiplied by the ratio of the annual amount of the immediately commencing straight life annuity under the Plan to the annual amount of the straight life annuity under the Plan commencing at age 62, with both annual amounts determined using the Plan factors for determining the Accrued Benefit of the Participant and without applying the limitation rules under this Appendix.  No adjustment for mortality shall be taken into account in performing 

 

  

 A-4

 

the first calculation required by this Section 2 to the extent permitted by Treas. Reg. Section 1.415(b)-1(d)(2).  Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, the age adjusted dollar limit may no decrease on account of an increase in age or the performance of additional service by the Participant.

 

SECTION 3

 

If annual pension benefits to a Participant commence after the Participant attains age 65, the limitation under Section 1(a)(1) of this Appendix shall be age-adjusted as provided in this Section 3.  The age-adjusted limitation is determined as the actuarial equivalent of the annual amount of a straight life annuity commencing on the annuity starting date that has the same actuarial present value as a straight life annuity commencing at age 65, where annual payments under the straight life annuity commencing at age 65 are equal to the adjusted Section 1(a)(1) limitation and where the actuarial equivalent straight life annuity is computed using a five percent (5%) interest rate and the applicable mortality table under Treas. Reg. Section 417(e)-1(d)(2) that is effective for that annuity starting date (expressing the Participant’s age based on completed calendar months as of the annuity starting date).  However, if the Plan has an immediately commencing straight life annuity payable as of the Annuity Starting Date and an immediately commencing straight life annuity payable at age 65, the age-adjusted limitation shall be the lesser of the age-adjusted limitation described in the immediately preceding sentence or the adjusted Section 1(a)(1) limitation multiplied by the adjustment ratio, which is equal to the ratio of the “adjusted immediately commencing straight life annuity” described in Treas. Reg. Section 1.415(b)-1(e)(ii) to the “adjusted age 65 straight life annuity” described in Treas. Reg. Section 1.415(b)-(1)(e)(iii).  No adjustment for mortality shall be taken into account in performing the first calculation required by this Section 3 to the extent permitted by Treas. Reg. Section 1.415(b)-1(e)(2).

 

SECTION 4

 

In the case of a Participant who has less than ten (10) years of participation in the Plan, as determined under Treas. Reg. Section 1.415(b)-1(g), the limitation under Section 1(a)(1) of this Appendix shall be determined by multiplying the otherwise applicable limit by a fraction, the numerator of which is the number of years (or part thereof) of participation in the Plan and the denominator of which is ten (10).  In the case of a Participant who has less than ten (10) years of Credited Service, the limitation under Section 1(a)(2) of this Appendix shall be determined by multiplying the otherwise applicable limit by a fraction, the numerator of which is the number of years of Credited Service (or part thereof) with a Plan Sponsor and the denominator of which is ten (10).  Notwithstanding the above, in no event shall the limitations contained in this Subsection reduce the limitations referred to in Section 1(a) of this Appendix to an amount less than one-tenth (1/10) of the applicable limitation provided in Section 1(a) (as determined without regard to this Subsection). To the extent provided in regulations promulgated by the Secretary of the Treasury, this Section shall be applied separately with respect to each change in the benefit structure of the Plan.

 

  

 A-5

 

SECTION 5

 

If a Participant is a participant in any other defined benefit pension plan sponsored by Plan Sponsor and its Affiliates, his pension benefit under that plan shall be aggregated with his projected benefit under the Plan to the extent required by Code Section 415(f) and the regulations thereunder, and his benefit under the Plan shall be reduced, if necessary, so that the aggregate of the benefits does not exceed the foregoing limitations.

 

SECTION 6

 

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

 

SECTION 7

 

For purposes of applying the limitations of this Appendix, all defined benefit plans now or previously maintained or deemed to be maintained by a Plan Sponsor shall be treated as one defined benefit plan to the extent required by Code Section 415(f) and the regulations thereunder.

 

SECTION 8

 

In the event that the limitations set forth in this Appendix are exceeded with respect to a Participant for a particular limitation year, the Plan Administrator shall, in writing, direct the Trustee to take such actions as are permitted by the Internal Revenue Service for the correction of such errors as the Plan Administrator shall deem appropriate, specifying in each case the amount or amounts of contributions involved.

 

SECTION 9

 

For purposes of applying the limitations set forth in this Appendix, the term “Plan Sponsor” shall be deemed to mean the Plan Sponsor, its Affiliates, and any other corporations which are members of the same controlled group of corporations (as described in Code Section 414(b), as modified by Code Section 415(h)) with a Plan Sponsor, any other trades or businesses under common control (as described in Code Section 414(c), as modified by Code Section 415(h)) with a Plan Sponsor, any other corporations, partnerships or other organizations which are members of an affiliated service group (within the meaning of Code Section 414(m)) with the Plan Sponsor and any other entity required to be aggregated with a Plan Sponsor pursuant to regulations under Code Section 414(o).  For purposes of applying the limitations set forth in this Appendix, where a defined benefit plan provides for employee contributions, the annual benefit attributable to those contributions is not taken into account, but those contributions are considered a separate defined contribution plan maintained by the Plan Sponsor which is subject to the limitations set forth in this Appendix.

 

  

 A-6

 

SECTION 10

 

Effective for the limitation year commencing July 1, 2008, the definition of Annual Compensation for a year that is used for purposes of applying the limitations of this Appendix shall not reflect Annual Compensation for a limitation year that is in excess of the Annual Compensation Limit that applies to that year.  Notwithstanding the foregoing, the application of the rules under this Appendix shall not reduce the Accrued Benefit of a Participant determined under the provisions of the Plan addressing these annual limitations that were in effect immediately prior to the provisions of this Appendix.  However, any additional accruals following July 1, 2008 shall not be recognized unless and until the sum of the Participant’s grandfathered benefit and additional future accruals satisfy the limitations under this Appendix.

 

SECTION 11

 

The provisions of this Appendix shall be construed in a manner consistent with the provisions of Treas. Reg. Section 1.415(a)-1 et. seq. and any successor guidance.  The foregoing provisions of this Appendix shall be interpreted in a manner consistent with the corresponding provisions of Treas. Reg. Section 1.415(a)-1 et. seq. except to the extent such corresponding provisions suggest an alternative methodology.  To the extent the foregoing provisions of this Appendix do not specify a method of application where more than one application is permissible, the default application under Treas. Reg. Section 1.415(a)-1 et. seq. shall apply.

 

SECTION 12

 

The provisions of this Appendix are generally effective July 1, 2008, except as otherwise provided in the foregoing provisions of this Appendix.  The limitations set forth in the Plan prior to July 1, 2008 shall be applicable to limitation years ending prior to July 1, 2008, except to the extent expressly provided in the foregoing provisions of this Appendix.

 

  

 A-7

 

APPENDIX B

 

TOP HEAVY PROVISIONS

 

SECTION 1

 

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

 

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

 

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

 

(1)  an officer of the Plan Sponsor or any Affiliate whose Annual Compensation was greater than $170,000 (as adjusted for changes in the cost of living as provided in regulations issued by the Secretary of the Treasury), where the term “officer” means an administrative executive in regular and continual service to the Plan Sponsor or an Affiliate; provided, however, that in no event shall the number of officers exceed the lesser of (A) fifty (50) employees; or (B) the greater of (I) three (3) employees or (II) ten percent (10%) of the number of Employees during the Plan Year, with any non-integer being increased to the next integer.  If for any year, no officer of the Plan Sponsor meets the requirements of this Paragraph (1), the highest paid officer of the Plan Sponsor for the Plan Year shall be considered an officer for purposes of this Paragraph (1);

 

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

 

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

 

For purposes of determining ownership under Paragraphs (2) and (3) above, the rules set forth in Code Section 318(a)(2) shall be applied as follows (i) in the case of any Plan Sponsor or Affiliate which is a corporation, by substituting five percent (5%) for fifty percent (50%) and, (ii) in the case of any Plan Sponsor or Affiliate which is not a corporation, ownership in such Plan Sponsor or Affiliate shall be determined in accordance with Treasury Regulations which shall be based on principles similar to the principles of Code Section 318(a)(2) as modified by clause (i) hereof.

 

  

 B-1

 

 

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

 

(c)  “Required Aggregation Group” means:

 

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

 

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

 

(d)  “Top-Heavy” means:

 

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

 

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

 

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

 

(I)           any Required Aggregation Group, and

 

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

 

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

 

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

 

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

 

(ii)           the Required Aggregation Group when included in every potential combination, if any, with any or all of the plans of a Plan Sponsor and its Affiliates which are not part of the 

 

  

 B-2

 

 Required Aggregation Group and which qualify under Code Section 401(a) is part of a Top-Heavy Group (as defined in Paragraph (2) of this Subsection).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

In the case of a plan that is not subject to the minimum funding requirements of Code Section 412, the adjustment in Clause (iii) of this Subparagraph (A) shall be the amount of any contributions actually made after the valuation date but on or before the Determination Date or last day of the plan year to the extent not included under Clause (i) or (ii) of this Subparagraph (A); provided, however, that in the first plan year of the plan, the adjustment in Clause (iii) Subparagraph (A) shall also reflect the amount of any contributions made thereafter that are allocated as of a date in such first Plan Year.  In the case of a plan that is subject to the minimum funding requirements, the account balance in Clause (i) of this Subparagraph (A) and the aggregate contributions in Clause (i) of this Subparagraph (A) shall include contributions that would be allocated as of a date not later than the Determination Date or last day of a plan year,

 

  

 B-3

 

 even though those amounts are not yet required to be contributed, and the adjustment in Clause (iii) of this Subparagraph (A) shall be the amount of any contribution actually made (or due to be made) after the valuation date to the extent permitted by regulations or other guidance of general applicability and not otherwise included under Clause (i) or (ii) of this Subparagraph (A).

 

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

 

(C)           For purposes of determining the present value of the cumulative accrued benefit under a plan for any Participant in accordance with this Subsection, the present value shall be increased by the aggregate distributions made with respect to the Participant (including distributions paid on account of death to the extent they do not exceed the present value of the cumulative accrued benefit existing immediately prior to death) under each plan being considered, and under any terminated plan which if it had not been terminated would have been in a Required Aggregation Group with the Plan, during the 1-year period ending on the Determination Date or the last day of the Plan Year that falls within the calendar year in which the Determination Date falls.  In the case of a distribution made with respect to a Participant made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting a 5-year period for the 1-year period.

 

  

 B-4

 

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

 

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

 

(F)           For purposes of this Paragraph (3), if any Employee has not performed any service for a Plan Sponsor or an Affiliate maintaining the plan during the 1-year period ending on the Determination Date, any accrued benefit for that Employee shall not be taken into account.

 

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

 

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

 

For purposes of this Subparagraph (G), an “unrelated rollover” is a rollover as defined in Code Section 402(a)(5) or 408(d)(3) or a plan-to-plan transfer which is both initiated by the participant and made from a plan maintained by one employer to a plan maintained by another employer where the employers are not Affiliates.  For purposes of this Subparagraph (G), a “related rollover” is a rollover as defined in Code Section 402(a)(5) or 408(d)(3) or a plan-to-plan transfer which is either not initiated by the participant or made to a plan maintained by the employer or an Affiliate.

 

  

 B-5

 

SECTION 2

 

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

 

	 	
Full Years of

Vesting Service

	  	 Percentage 
Vested

	 
	 	
One year or less

	  	0%	 
	 	
Two years

	  	20%	
 

	 	
Three years

	  	40% 	 
	 	
Four years

	  	60% 	 
	 	
Five years

	  	100% 	 
	 	
Six years or more

	  	100% 	 

 

The schedule set forth above in this Section of Appendix B of the Plan shall be inapplicable to a Participant who has failed to perform an Hour of Service after the Determination Date on which the Plan has become Top-Heavy.  When the Plan ceases to be Top-Heavy, the schedule set forth above in this Section of Appendix B to the Plan shall cease to be applicable; provided however, that the provisions of Section 7.6 of the Plan shall apply.

 

SECTION 3

 

(a)  Notwithstanding anything contained in the Plan to the contrary, and except as otherwise provided in Subsection (b) of this Section, the Accrued Benefit derived from Plan Sponsor contributions of each Participant who is not a Key Employee, when expressed as an annual retirement benefit (as defined below), shall not be less than the applicable percentage (as defined in Subsection (b) of this Section) of the Participant’s average compensation (as defined in Subsection (d) of this Section below).

 

(b)  For purposes of Subsection (a) of this Section, the term “applicable percentage” means the lesser of:

 

(1)  2 percent multiplied by the number of years of service (as defined in (c) below) with a Plan Sponsor, or

 

(2)  20 percent.

 

(c)  For purposes of this Section:

 

(1)  Except as provided in Paragraph (2) of this Subsection (c), years of service shall be determined under the rules of Paragraphs (4), (5), and (6) of Code Section 411(a).

 

  

 B-6

 

(2)  A year of service with a Plan Sponsor shall not be taken into account if:

 

  (A)  the Plan was not Top-Heavy for any Plan Year ending during that year of service,

 

   (B)  that year of service was completed in a Plan Year beginning before January 1, 1984, or

 

   (C)  no Key Employees or former Key Employees accrued a benefit during any Plan Year ending on that year of service.

 

(d)  (1)           For purposes of Subsection (a) of this Section, “average compensation” means the average of a Participant’s compensation (as defined in Paragraph (3) of this Subsection) for each Plan Year in the Participant’s testing period (as defined in Paragraph (2) of this Subsection).

 

(2)  (A)      A Participant’s testing period shall be the period of consecutive Plan Years (not exceeding 5) during which the Participant had the greatest aggregate compensation from a Plan Sponsor.

 

   (B)  The Plan Years taken into account under Subparagraph (A) of this Paragraph (2) shall not include years for which the Participant did not earn a year of service under the rules of paragraphs (4), (5) and (6) of Code Section 411(a).

 

(C)  A Plan Year shall not be taken into account under Subparagraph (A) of this Paragraph (2) if:

 

   (i)           that Plan Year ends before January 1, 1984, or

 

   (ii)           that Plan Year begins after the close of the last Plan Year in which the Plan was Top-Heavy.

 

(3)  For purposes of this Subsection (d), “compensation” means a Participant’s Annual Compensation calculated on the basis of a Plan Year.

 

(e)   (1)        For purposes of Subsection (a) of this Section, the term “annual retirement benefit” means a benefit payable annually in the form of a single life annuity (with no ancillary benefits) beginning at Normal Retirement age.

 

(2)  If the Participant’s benefit under this Plan begins at a date other than his Normal Retirement age, the Participant shall receive a benefit which is no less than the Actuarial Equivalent of the annual retirement benefit provided under this Section.

 

  

 B-7

 

(f)  The minimum Accrued Benefit described under this Section shall be provided to any Employee who is otherwise eligible for participation in the Plan, even if:

 

(1)  The Employee fails to make mandatory employee contributions required as a condition of participation in the Plan, or

 

(2)  The Employee’s compensation is less than a stated amount, or

 

(3)  The Employee is not employed by a Plan Sponsor or Affiliate on a given date.

 

SECTION 4

 

Notwithstanding anything in the Plan to the contrary, this Appendix shall only apply to the extent required by Code Section 416 including, without limitation, Code Section 416(i)(4).

 

  

 B-8

 

APPENDIX C

 

ACTUARIAL EQUIVALENT FACTORS

 

Joint and Survivor and Contingent Annuitant Factors shall be as determined by the following formulas for Employees retiring at age 65.

 

	
100% Continuation:

	
75% plus 1% for each year the contingent annuitant is older than 

the Employee or, minus 1% for each year the contingent 

annuitant is younger than the Employee.

	
75% Continuation:

	
80% plus 3/4% for each year the contingent annuitant is older

than the Employee or minus 3/4% for each year the contingent 

annuitant is younger than the Employee.

	
50% Continuation:

	
86% plus 1/2% for each year the contingent annuitant is older 

than the Employee or minus 1/2% for each year the contingent 

annuitant is younger than the Employee.

The initial factor should be increased by .6% for each full year the Employee is under age 65 and decreased by .6% for each full year the Employee is over age 65.  Age shall be determined as the age on the individual’s nearest birthday.

 

Table Illustrating the Factors at Various Ages

 

	
Participant’s

       Age      

	
Contingent

Annuitant’s

       Age      

	
100%

Continuance

	
75%

Continuance

	
50%

Continuance

	  	  	  	  	  
	
65

	
70

	
.800

	
.837

	
.885

	
65

	
65

	
.750

	
.800

	
.860

	
65

	
60

	
.700

	
.762

	
.835

	
65

	
55

	
.650

	
.725

	
.810

	
62

	
64

	
.788

	
.833

	
.888

	
62

	
60

	
.748

	
.803

	
.868

	
60

	
62

	
.800

	
.845

	
.900

	
55

	
53

	
.790

	
.845

	
.910

  

 C-1

 

Guaranteed Period Option Factors

 

	
Age

	
120 Months

	
240 Months

	  	  	  
	
65

	 	 
.910

	
 

	
.740

	
64

	 	 
.917

	
 

	
.756

	
63

	 	 
.924

	 	
.772

	
62

	 	 
.931

	
 

	
.788

	
61

	 	 
.938

	 	
.804

	
60

	 	 
.945

	 	
.820

	
59

	 	 
.952

	 	
.836

	
58

	 	 
.959

	
 

	
.852

	
57

	 	 
.966

	 	
.868

	
56

	 	 
.973 

	 	
.884

	
55

	 	 
.980

	 	
.900

Early Retirement and Terminated Employee Reduction Factors

 

(Plan Sections 5.1 and 7.2)

 

	
Age

	
Factor

	  	  
	
64

	
.930

	
63

	
.860

	
62

	
.790

	
61

	
.720

	
60

	
.650

	
59

	
.620

	
58

	
.590

	
57

	
.560

	
56

	
.530

	
55

	
.500

  

 C-2

 

Social Security Adjustment Option Factors

	
Participant’s Age at Social Security Commencement

	  	
65

	
64

	
63

	
62

	
Years From

 Benefit

 Commencement

 to Social

 Security

 Commencement

 

1

2

3

4

5

6

7

8

9

10

	
 

(a)

 

 

Adjustment

 Factor

 

0.886

0.787

0.701

0.626

0.560

0.502

0.451

0.406

0.366

0.331

	
 

(b)

 

Alternate

 Adjustment

Factor

 

8.764

4.695

3.344

2.673

2.273

2.009

1.823

1.684

1.578

1.495

	
 

(a)

 

 

Adjustment

 Factor

 

0.888

0.791

0.706

0.632

0.567

0.509

0.459

0.414

0.374

	
 

(b)

 

Alternate

 Adjustment

Factor

 

8.957

4.790

3.406

2.719

2.309

2.039

1.847

1.705

1.597

	
 

(a)

 

 

Adjustment

 Factor

 

0.891

0.795

0.712

0.638

0.573

0.516

0.466

0.421

	
 

(b)

 

Alternate

 Adjustment

Factor

 

9.146

4.883

3.468

2.764

2.345

2.067

1.871

1.726

	
 

(a)

 

 

Adjustment Factor

 

0.893

0.799

0.717

0.644

0.580

0.523

0.472

	
 

(b)

 

Alternate Adjustment

Factor

 

9.332

4.975

3.528

2.808

2.379

2.095

1.895

These factors are multiplied by the estimated Social Security benefit payable at the stated age and the result, plus the early retirement benefit payable under the Plan, is the benefit payable until the selected age is attained.

The “Alternate Adjustment Factor” will be used if, under this form of benefit, the Participant’s entire Accrued Benefit will be distributed on or before the date that the Participant’s Social Security benefit is projected to commence.

 

  

 C-3

 

These factors shall apply to Participants who retire on or after November 1, 2004.  The table in effect prior to the adoption of the SEVENTH AMENDMENT to the Plan (as in effect prior to the November 1, 2004 restatement of the Plan) shall apply to Participants who retired before such date.

Notwithstanding the foregoing, the amount of any form of payment calculated under the table above titled “Social Security Adjustment Option Factors” shall be no less than an amount determined using the actuarial equivalent factors set forth in Section 1.2(b) of the Plan but only if such form of payment is determined to be a nondecreasing annuity exempt from the requirements of Code Section 417(e) by reason of Treasury Regulations Section 1.417(e)-1(d)(6).

 

  

 C-4

 

APPENDIX D

 

MINIMUM DISTRIBUTION REQUIREMENTS

 

SECTION 1

GENERAL RULES

 

(a)           Effective Date and Precedence. The provisions of this Appendix D will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.  The provisions of this Appendix D will take precedence over any inconsistent provisions of the Plan.

 

(b)           Requirements of Treasury Regulations Incorporated. All distributions required under this Appendix D will be determined and made in accordance with the Treasury Regulations promulgated under Code Section 401(a)(9).

 

(c)           TEFRA Section 242(b)(2) Elections. Notwithstanding the provisions of this Appendix D, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

 

SECTION 2

TIME AND MANNER OF DISTRIBUTION

 

(a)           Required Beginning Date. The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date.

 

(b)           Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later than as follows:

 

(1)           If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 701⁄2, if later.

 

(2)           If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, then distributions to the Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

 

 

  

 D-1

 

 

(3)           If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

 

(4)           If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 2(b), other than this Section 2(b)(1), will apply as if the surviving spouse were the Participant.

 

For purposes of this Section 2(b) and Section 5 of Appendix D, unless Section 2(b)(4) of this Appendix D applies, distributions are considered to begin on the Participant’s Required Beginning Date. If Section 2(b) of this Appendix D applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 2(b)(1) of this Appendix D. If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under Section 2(b)(1)), the date distributions are considered to begin is the date distributions actually commence.

 

(c)           Form of Distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year, distributions will be made in accordance with Sections 3, 4 and 5 of this Appendix D.  If the Participant’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and Treasury Regulations promulgated thereunder.  Any part of the Participant’s interest which is in the form of an individual account as described in Code Section 414(k) will be distributed in a manner satisfying the requirements of Code Section 40l(a)(9) and Treasury Regulations promulgated thereunder that apply to individual accounts.

 

SECTION 3

DETERMINATION OF AMOUNT

TO BE DISTRIBUTED EACH YEAR

 

(a)           General Annuity Requirements. If the Participant’s interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements:

 

(1)           the annuity distributions will be paid in periodic payments made at intervals not longer than one year;

 

  

 D-2

 

(2)           the distribution period will be over a life (or lives) or over a period certain not longer than the period described in Section 4 or 5 of this Appendix D;

 

(3)           once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted;

 

(4)           payments will either be nonincreasing or increase only as follows:

 

(A)           by an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;

 

(B)           to the extent of the reduction in the amount of the Participant’s payments to provide for a survivor benefit upon death, but only if the Beneficiary whose life was being used to determine the distribution period described in Section 4 of this Appendix D dies or is no longer the Participant’s Beneficiary pursuant to a qualified domestic relations order within the meaning of Code Section 414(p);

 

(C)           to provide cash refunds of employee contributions upon the Participant’s death; or

 

(D)           to pay increased benefits that result from a Plan amendment.

 

(b)           Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Participant’s Required Beginning Date (or, if the Participant dies before distributions begin, the date distributions are required to begin under Section 2(b)(1) or (2) of this Appendix D) is the payment that is required for one payment interval.  The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year.  Payment intervals are the periods for which payments are received (e.g., bimonthly, monthly, semi-annually, or annually).  All of the Participant’s benefit accruals as of the last day of the first Distribution Calendar Year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Participant’s Required Beginning Date.

 

(c)           Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the Participant in a calendar year after the first Distribution Calendar Year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.

 

  

 D-3

 

SECTION 4

REQUIREMENTS FOR ANNUITY DISTRIBUTIONS

THAT COMMENCE DURING PARTICIPANT’S LIFETIME

 

(a)           Joint Life Annuities Where the Beneficiary Is Not the Participant’s Spouse.  If the Participant’s interest is being distributed in the form of a joint and survivor annuity for the joint lives of the Participant and a nonspouse Beneficiary, annuity payments to be made on or after the Participant’s Required Beginning Date to the Designated Beneficiary after the Participant’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the Participant using the table set forth in Q&A-2 of Treasury Regulation Section 1.40l(a)(9)-6T.  If the form of distribution combines a joint and survivor annuity for the joint lives of the Participant and a nonspouse Beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the Designated Beneficiary after the expiration of the period certain.

 

(b)           Period Certain Annuities. Unless the Participant’s spouse is the sole Designated Beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the Participant’s lifetime may not exceed the applicable distribution period for the Participant under the Uniform Lifetime Table set forth in Treasury Regulation Section 1.401 (a)(9)-9 for the calendar year that contains the annuity starting date.  If the annuity starting date precedes the year in which the Participant reaches age 70, the applicable distribution period for the Participant is the distribution period for age 70 under the Uniform Lifetime Table set forth in Treasury Regulation Section 1.401(a)(9)-9 plus the excess of 70 over the age of the Participant as of the Participant’s birthday in the year that contains the annuity starting date.  If the Participant’s spouse is the Participant’s sole Designated Beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the Participant’s applicable distribution period, as determined under this Section 4(b), or the joint life and last survivor expectancy of the Participant and the Participant’s spouse as determined under the Joint and Last Survivor Table set forth in Treasury Regulation Section 1 .401(a)(9)-9, using the attained ages of the Participant and the Participant’s spouse as of the birthday of the Participant and the Participant’s spouse in the calendar year that contains the annuity starting date.

 

SECTION 5

REQUIREMENTS FOR MINIMUM DISTRIBUTIONS WHERE

PARTICIPANT DIES BEFORE DATE DISTRIBUTIONS BEGIN

 

(a)           Participant Survived by Designated Beneficiary. If the Participant dies before the date distribution of his or her interest begins and there is a Designated Beneficiary, the Participant’s entire interest will be distributed, beginning no later than the time described in Section 2(b)(1) or (2) of this Appendix D, over the life of the Designated Beneficiary or over a period certain not exceeding:

 

  

 D-4

 

(1)           unless the annuity starting date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the Beneficiary’s age as of the Beneficiary’s birthday in the calendar year immediately following the calendar year of the Participant’s death; or

 

(2)           if the annuity starting date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the Beneficiary’s age as of the Beneficiary’s birthday in the calendar year that contains the annuity starting date.

 

(b)           No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

 

(c)           Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the Participant dies before the date distribution of his or her interest begins, the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this Section 5 will apply as if the surviving spouse were the Participant, except that the time by which distributions must begin will be determined without regard to Section 2(b)(1) of this Appendix D.

 

SECTION 6

DEFINITIONS

 

As used in this Appendix D, the following words and phrases shall have the meaning set forth below:

 

(a)           Designated Beneficiary. The individual who is designated as the Beneficiary under Section 1.9 of the Plan and is the Designated Beneficiary under Code Section 40l(a)(9) and Treasury Regulation Section 1.401(a)(9)-4, Q&A-1.

 

(b)           Distribution Calendar Year. A calendar year for which a minimum distribution is required.  For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year which contains the Participant’s Required Beginning Date.  For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin pursuant to Section 2(b) of this Appendix D.

 

(c)           Life Expectancy. Life Expectancy as computed by use of the Single Life Table in Treasury Regulations Section 1.401(a)(9)-9.

 

  

 D-5

 

(d)           Required Beginning Date. The term “Required Beginning Date” means April 1 of the calendar year following the later of (i) the calendar year in which the Participant attains age 701⁄2, or (ii) the calendar year in which the Participant retires; except that in the case of a Participant described in Section 1(b)(2) of Appendix B, the term “Required Beginning Date” means April 1 of the calendar year following the calendar year in which the Participant attains age 701⁄2.

  

 D-6

 

APPENDIX E

 

FACTORS

	
Morrison Retirement Plan

	
Early Reduction Factor Table - For Annuities to Participants < 55

	
For Distributions between July 1, 2014 and June 30, 2015

	
June 2014 Applicable Interest Rates: 1.23%   4.01%   5.09%

	
2014 Applicable Mortality Table:   RP-2000 PPA@2014 Combined - Unisex 50/50

	
2014    650    RP-2000 PPA@ProjYear Combined - Unisex 50/50

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
AGE

	
0

	
1

	
2

	
3

	
4

	
5

	
6

	
7

	
8

	
9

	
10

	
11

	
25

	
0.07603

	
0.07638

	
0.07672

	
0.07707

	
0.07741

	
0.07776

	
0.07811

	
0.07845

	
0.07880

	
0.07914

	
0.07949

	
0.07983

	
26

	
0.08018

	
0.08055

	
0.08091

	
0.08128

	
0.08164

	
0.08201

	
0.08238

	
0.08274

	
0.08311

	
0.08347

	
0.08384

	
0.08420

	
27

	
0.08457

	
0.08496

	
0.08535

	
0.08573

	
0.08612

	
0.08651

	
0.08690

	
0.08728

	
0.08767

	
0.08806

	
0.08845

	
0.08883

	
28

	
0.08922

	
0.08963

	
0.09004

	
0.09045

	
0.09086

	
0.09127

	
0.09168

	
0.09209

	
0.09250

	
0.09291

	
0.09332

	
0.09373

	
29

	
0.09414

	
0.09458

	
0.09501

	
0.09545

	
0.09588

	
0.09632

	
0.09675

	
0.09719

	
0.09762

	
0.09806

	
0.09849

	
0.09893

	
30

	
0.09936

	
0.09982

	
0.10028

	
0.10074

	
0.10120

	
0.10166

	
0.10213

	
0.10259

	
0.10305

	
0.10351

	
0.10397

	
0.10443

	
31

	
0.10489

	
0.10538

	
0.10587

	
0.10636

	
0.10684

	
0.10733

	
0.10782

	
0.10831

	
0.10880

	
0.10929

	
0.10977

	
0.11026

	
32

	
0.11075

	
0.11127

	
0.11179

	
0.11231

	
0.11282

	
0.11334

	
0.11386

	
0.11438

	
0.11490

	
0.11542

	
0.11593

	
0.11645

	
33

	
0.11697

	
0.11752

	
0.11807

	
0.11862

	
0.11917

	
0.11972

	
0.12027

	
0.12082

	
0.12137

	
0.12192

	
0.12247

	
0.12302

	
34

	
0.12357

	
0.12415

	
0.12474

	
0.12532

	
0.12590

	
0.12649

	
0.12707

	
0.12765

	
0.12824

	
0.12882

	
0.12940

	
0.12999

	
35

	
0.13057

	
0.13119

	
0.13181

	
0.13243

	
0.13305

	
0.13367

	
0.13430

	
0.13492

	
0.13554

	
0.13616

	
0.13678

	
0.13740

	
36

	
0.13802

	
0.13868

	
0.13934

	
0.14000

	
0.14066

	
0.14132

	
0.14198

	
0.14263

	
0.14329

	
0.14395

	
0.14461

	
0.14527

	
37

	
0.14593

	
0.14663

	
0.14733

	
0.14804

	
0.14874

	
0.14944

	
0.15014

	
0.15084

	
0.15154

	
0.15225

	
0.15295

	
0.15365

	
38

	
0.15435

	
0.15510

	
0.15584

	
0.15659

	
0.15734

	
0.15808

	
0.15883

	
0.15958

	
0.16032

	
0.16107

	
0.16182

	
0.16256

	
39

	
0.16331

	
0.16411

	
0.16490

	
0.16570

	
0.16649

	
0.16729

	
0.16808

	
0.16888

	
0.16967

	
0.17047

	
0.17126

	
0.17206

	
40

	
0.17285

	
0.17370

	
0.17455

	
0.17539

	
0.17624

	
0.17709

	
0.17794

	
0.17878

	
0.17963

	
0.18048

	
0.18133

	
0.18217

	
41

	
0.18302

	
0.18393

	
0.18483

	
0.18574

	
0.18664

	
0.18755

	
0.18845

	
0.18936

	
0.19026

	
0.19117

	
0.19207

	
0.19298

	
42

	
0.19388

	
0.19485

	
0.19581

	
0.19678

	
0.19774

	
0.19871

	
0.19968

	
0.20064

	
0.20161

	
0.20257

	
0.20354

	
0.20450

	
43

	
0.20547

	
0.20650

	
0.20753

	
0.20857

	
0.20960

	
0.21063

	
0.21166

	
0.21269

	
0.21372

	
0.21476

	
0.21579

	
0.21682

	
44

	
0.21785

	
0.21895

	
0.22006

	
0.22116

	
0.22227

	
0.22337

	
0.22448

	
0.22558

	
0.22668

	
0.22779

	
0.22889

	
0.23000

	
45

	
0.2311

	
0.23265

	
0.23420

	
0.23575

	
0.23730

	
0.23885

	
0.24041

	
0.24196

	
0.24351

	
0.24506

	
0.24661

	
0.24816

	
46

	
0.24971

	
0.25135

	
0.25298

	
0.25462

	
0.25626

	
0.25789

	
0.25953

	
0.26117

	
0.26280

	
0.26444

	
0.26608

	
0.26771

	
47

	
0.26935

	
0.27108

	
0.27281

	
0.27454

	
0.27627

	
0.27800

	
0.27974

	
0.28147

	
0.28320

	
0.28493

	
0.28666

	
0.28839

	
48

	
0.29012

	
0.29195

	
0.29378

	
0.29561

	
0.29744

	
0.29927

	
0.30111

	
0.30294

	
0.30477

	
0.30660

	
0.30843

	
0.31026

	
49

	
0.31209

	
0.31403

	
0.31597

	
0.31792

	
0.31986

	
0.32180

	
0.32374

	
0.32568

	
0.32762

	
0.32957

	
0.33151

	
0.33345

	
50

	
0.33539

	
0.33745

	
0.33951

	
0.34157

	
0.34363

	
0.34569

	
0.34776

	
0.34982

	
0.35188

	
0.35394

	
0.35600

	
0.35806

	
51

	
0.36012

	
0.36231

	
0.36450

	
0.36670

	
0.36889

	
0.37108

	
0.37327

	
0.37546

	
0.37765

	
0.37985

	
0.38204

	
0.38423

	
52

	
0.38642

	
0.38876

	
0.39109

	
0.39343

	
0.39576

	
0.39810

	
0.40043

	
0.40277

	
0.40510

	
0.40744

	
0.40977

	
0.41211

	
53

	
0.41444

	
0.41693

	
0.41942

	
0.42192

	
0.42441

	
0.42690

	
0.42939

	
0.43188

	
0.43437

	
0.43687

	
0.43936

	
0.44185

	
54

	
0.44434

	
0.44701

	
0.44967

	
0.45234

	
0.45500

	
0.45767

	
0.46034

	
0.46300

	
0.46567

	
0.46833

	
0.47100

	
0.47366

 

 E-1

	  Morrison Retirement Plan
	  Joint & 50% Contingent Annuity Factors - For Participants < 55
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
25

	
26

	
27

	
28

	
29

	
30

	
31

	
32

	
33

	
34

	
35

	
36

	
37

	
38

	
25

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
26

	
0.987

	
0.988

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.993

	
27

	
0.986

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
28

	
0.985

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
29

	
0.983

	
0.984

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.991

	
30

	
0.982

	
0.982

	
0.983

	
0.984

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
0.990

	
31

	
0.980

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
0.984

	
0.985

	
0.986

	
0.987

	
0.987

	
0.988

	
0.988

	
0.989

	
32

	
0.978

	
0.979

	
0.980

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
0.984

	
0.985

	
0.986

	
0.987

	
0.987

	
0.988

	
33

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.985

	
0.986

	
0.987

	
34

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.985

	
35

	
0.972

	
0.973

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
36

	
0.970

	
0.971

	
0.972

	
0.973

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.982

	
37

	
0.968

	
0.969

	
0.970

	
0.971

	
0.972

	
0.973

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
38

	
0.965

	
0.966

	
0.967

	
0.968

	
0.969

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
39

	
0.962

	
0.963

	
0.964

	
0.965

	
0.967

	
0.968

	
0.969

	
0.970

	
0.971

	
0.972

	
0.973

	
0.975

	
0.976

	
0.977

	
40

	
0.959

	
0.960

	
0.962

	
0.963

	
0.964

	
0.965

	
0.966

	
0.967

	
0.969

	
0.970

	
0.971

	
0.972

	
0.973

	
0.975

	
41

	
0.956

	
0.957

	
0.958

	
0.960

	
0.961

	
0.962

	
0.963

	
0.965

	
0.966

	
0.967

	
0.968

	
0.970

	
0.971

	
0.972

	
42

	
0.953

	
0.954

	
0.955

	
0.956

	
0.958

	
0.959

	
0.960

	
0.961

	
0.963

	
0.964

	
0.965

	
0.967

	
0.968

	
0.969

	
43

	
0.949

	
0.950

	
0.952

	
0.953

	
0.954

	
0.955

	
0.957

	
0.958

	
0.960

	
0.961

	
0.962

	
0.964

	
0.965

	
0.967

	
44

	
0.945

	
0.947

	
0.948

	
0.949

	
0.951

	
0.952

	
0.953

	
0.955

	
0.956

	
0.958

	
0.959

	
0.960

	
0.962

	
0.963

	
45

	
0.941

	
0.943

	
0.944

	
0.945

	
0.947

	
0.948

	
0.949

	
0.951

	
0.952

	
0.954

	
0.955

	
0.957

	
0.958

	
0.960

	
46

	
0.937

	
0.938

	
0.940

	
0.941

	
0.942

	
0.944

	
0.945

	
0.947

	
0.948

	
0.950

	
0.951

	
0.953

	
0.955

	
0.956

	
47

	
0.933

	
0.934

	
0.935

	
0.937

	
0.938

	
0.939

	
0.941

	
0.942

	
0.944

	
0.946

	
0.947

	
0.949

	
0.951

	
0.952

	
48

	
0.928

	
0.929

	
0.930

	
0.932

	
0.933

	
0.935

	
0.936

	
0.938

	
0.939

	
0.941

	
0.943

	
0.945

	
0.946

	
0.948

	
49

	
0.923

	
0.924

	
0.925

	
0.927

	
0.928

	
0.930

	
0.931

	
0.933

	
0.935

	
0.936

	
0.938

	
0.940

	
0.942

	
0.943

	
50

	
0.917

	
0.918

	
0.920

	
0.921

	
0.923

	
0.924

	
0.926

	
0.928

	
0.929

	
0.931

	
0.933

	
0.935

	
0.937

	
0.938

	
51

	
0.911

	
0.913

	
0.914

	
0.916

	
0.917

	
0.919

	
0.920

	
0.922

	
0.924

	
0.925

	
0.927

	
0.929

	
0.931

	
0.933

	
52

	
0.905

	
0.906

	
0.908

	
0.909

	
0.911

	
0.913

	
0.914

	
0.916

	
0.918

	
0.920

	
0.921

	
0.923

	
0.925

	
0.927

	
53

	
0.899

	
0.900

	
0.901

	
0.903

	
0.904

	
0.906

	
0.908

	
0.910

	
0.911

	
0.913

	
0.915

	
0.917

	
0.919

	
0.921

	
54

	
0.892

	
0.893

	
0.894

	
0.896

	
0.898

	
0.899

	
0.901

	
0.903

	
0.905

	
0.906

	
0.908

	
0.910

	
0.913

	
0.915

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
39

	
40

	
41

	
42

	
43

	
44

	
45

	
46

	
47

	
48

	
49

	
50

	
51

	
52

	
25

	
0.994

	
0.995

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
26

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
27

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
28

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
29

	
0.992

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
30

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
31

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
32

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.992

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
33

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
34

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
35

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
36

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.987

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	
37

	
0.982

	
0.983

	
0.984

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
38

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
39

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
40

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
41

	
0.973

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
42

	
0.971

	
0.972

	
0.973

	
0.975

	
0.976

	
0.977

	
0.978

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
43

	
0.968

	
0.969

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.985

	
44

	
0.965

	
0.966

	
0.968

	
0.969

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.978

	
0.979

	
0.980

	
0.982

	
0.983

	
45

	
0.962

	
0.963

	
0.965

	
0.966

	
0.968

	
0.969

	
0.971

	
0.972

	
0.974

	
0.975

	
0.977

	
0.978

	
0.979

	
0.981

	
46

	
0.958

	
0.960

	
0.961

	
0.963

	
0.965

	
0.966

	
0.968

	
0.970

	
0.971

	
0.973

	
0.974

	
0.976

	
0.977

	
0.979

	
47

	
0.954

	
0.956

	
0.958

	
0.959

	
0.961

	
0.963

	
0.965

	
0.966

	
0.968

	
0.970

	
0.971

	
0.973

	
0.975

	
0.976

	
48

	
0.950

	
0.952

	
0.954

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
0.965

	
0.966

	
0.968

	
0.970

	
0.972

	
0.973

	
49

	
0.945

	
0.947

	
0.949

	
0.951

	
0.953

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
0.965

	
0.967

	
0.968

	
0.970

	
50

	
0.940

	
0.942

	
0.944

	
0.946

	
0.949

	
0.951

	
0.953

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
0.965

	
0.967

	
51

	
0.935

	
0.937

	
0.939

	
0.941

	
0.944

	
0.946

	
0.948

	
0.950

	
0.952

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
52

	
0.929

	
0.932

	
0.934

	
0.936

	
0.938

	
0.941

	
0.943

	
0.945

	
0.947

	
0.950

	
0.952

	
0.954

	
0.957

	
0.959

	
53

	
0.923

	
0.926

	
0.928

	
0.930

	
0.933

	
0.935

	
0.937

	
0.940

	
0.942

	
0.945

	
0.947

	
0.950

	
0.952

	
0.954

	
54

	
0.917

	
0.919

	
0.922

	
0.924

	
0.926

	
0.929

	
0.931

	
0.934

	
0.936

	
0.939

	
0.942

	
0.944

	
0.947

	
0.949

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

 

  

 E-2

 

	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
53

	
54

	
55

	
56

	
57

	
58

	
59

	
60

	
61

	
62

	
63

	
64

	  	  
	
25

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.999

	
0.999

	
0.999

	  	  
	
26

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.999

	
0.999

	  	  
	
27

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.999

	  	  
	
28

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	  	  
	
29

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	  	  
	
30

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	  	  
	
31

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	  	  
	
32

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	  	  
	
33

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	  	  
	
34

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	  	  
	
35

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	  	  
	
36

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	  	  
	
37

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.997

	  	  
	
38

	
0.991

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	  	  
	
39

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.996

	
0.996

	  	  
	
40

	
0.990

	
0.990

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.996

	  	  
	
41

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	  	  
	
42

	
0.987

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.995

	  	  
	
43

	
0.986

	
0.987

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	
0.993

	
0.994

	  	  
	
44

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.992

	
0.993

	
0.993

	  	  
	
45

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.992

	
0.992

	  	  
	
46

	
0.980

	
0.981

	
0.982

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	  	  
	
47

	
0.978

	
0.979

	
0.980

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	  	  
	
48

	
0.975

	
0.977

	
0.978

	
0.979

	
0.981

	
0.982

	
0.983

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	  	  
	
49

	
0.972

	
0.974

	
0.975

	
0.977

	
0.978

	
0.980

	
0.981

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	  	  
	
50

	
0.969

	
0.971

	
0.972

	
0.974

	
0.976

	
0.977

	
0.979

	
0.980

	
0.982

	
0.983

	
0.985

	
0.986

	  	  
	
51

	
0.965

	
0.967

	
0.969

	
0.971

	
0.973

	
0.975

	
0.976

	
0.978

	
0.980

	
0.981

	
0.982

	
0.984

	  	  
	
52

	
0.961

	
0.963

	
0.965

	
0.968

	
0.970

	
0.972

	
0.973

	
0.975

	
0.977

	
0.979

	
0.980

	
0.982

	  	  
	
53

	
0.957

	
0.959

	
0.961

	
0.964

	
0.966

	
0.968

	
0.970

	
0.972

	
0.974

	
0.976

	
0.977

	
0.979

	  	  
	
54

	
0.952

	
0.954

	
0.957

	
0.959

	
0.962

	
0.964

	
0.966

	
0.969

	
0.971

	
0.973

	
0.975

	
0.976

	  	  

  

 E-3

 

	
Morrison Retirement Plan

	
Joint & 50% Contingent Annuity Factors - For Participants < 55

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
25

	
26

	
27

	
28

	
29

	
30

	
31

	
32

	
33

	
34

	
35

	
36

	
37

	
38

	
25

	
0.982

	
0.983

	
0.984

	
0.985

	
0.985

	
0.986

	
0.987

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
26

	
0.981

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.985

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.989

	
0.990

	
27

	
0.979

	
0.980

	
0.981

	
0.982

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
28

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
29

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
30

	
0.973

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.984

	
0.985

	
31

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
32

	
0.968

	
0.969

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
33

	
0.965

	
0.966

	
0.967

	
0.969

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
0.979

	
0.980

	
34

	
0.962

	
0.963

	
0.965

	
0.966

	
0.967

	
0.968

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
0.977

	
0.978

	
35

	
0.959

	
0.960

	
0.962

	
0.963

	
0.964

	
0.966

	
0.967

	
0.968

	
0.970

	
0.971

	
0.972

	
0.974

	
0.975

	
0.976

	
36

	
0.956

	
0.957

	
0.958

	
0.960

	
0.961

	
0.963

	
0.964

	
0.966

	
0.967

	
0.968

	
0.970

	
0.971

	
0.973

	
0.974

	
37

	
0.952

	
0.954

	
0.955

	
0.956

	
0.958

	
0.959

	
0.961

	
0.963

	
0.964

	
0.966

	
0.967

	
0.969

	
0.970

	
0.971

	
38

	
0.948

	
0.950

	
0.951

	
0.953

	
0.954

	
0.956

	
0.958

	
0.959

	
0.961

	
0.962

	
0.964

	
0.966

	
0.967

	
0.969

	
39

	
0.944

	
0.946

	
0.947

	
0.949

	
0.951

	
0.952

	
0.954

	
0.956

	
0.957

	
0.959

	
0.961

	
0.962

	
0.964

	
0.966

	
40

	
0.940

	
0.942

	
0.943

	
0.945

	
0.947

	
0.948

	
0.950

	
0.952

	
0.954

	
0.955

	
0.957

	
0.959

	
0.961

	
0.962

	
41

	
0.936

	
0.937

	
0.939

	
0.941

	
0.942

	
0.944

	
0.946

	
0.948

	
0.950

	
0.951

	
0.953

	
0.955

	
0.957

	
0.959

	
42

	
0.931

	
0.933

	
0.934

	
0.936

	
0.938

	
0.940

	
0.941

	
0.943

	
0.945

	
0.947

	
0.949

	
0.951

	
0.953

	
0.955

	
43

	
0.926

	
0.927

	
0.929

	
0.931

	
0.933

	
0.935

	
0.937

	
0.939

	
0.941

	
0.942

	
0.945

	
0.947

	
0.949

	
0.951

	
44

	
0.920

	
0.922

	
0.924

	
0.926

	
0.928

	
0.930

	
0.931

	
0.933

	
0.936

	
0.938

	
0.940

	
0.942

	
0.944

	
0.946

	
45

	
0.915

	
0.916

	
0.918

	
0.920

	
0.922

	
0.924

	
0.926

	
0.928

	
0.930

	
0.932

	
0.935

	
0.937

	
0.939

	
0.941

	
46

	
0.909

	
0.910

	
0.912

	
0.914

	
0.916

	
0.918

	
0.920

	
0.922

	
0.924

	
0.927

	
0.929

	
0.931

	
0.934

	
0.936

	
47

	
0.902

	
0.904

	
0.906

	
0.908

	
0.910

	
0.912

	
0.914

	
0.916

	
0.918

	
0.921

	
0.923

	
0.925

	
0.928

	
0.930

	
48

	
0.895

	
0.897

	
0.899

	
0.901

	
0.903

	
0.905

	
0.907

	
0.910

	
0.912

	
0.914

	
0.917

	
0.919

	
0.922

	
0.924

	
49

	
0.888

	
0.890

	
0.892

	
0.894

	
0.896

	
0.898

	
0.900

	
0.903

	
0.905

	
0.907

	
0.910

	
0.912

	
0.915

	
0.918

	
50

	
0.881

	
0.882

	
0.884

	
0.886

	
0.889

	
0.891

	
0.893

	
0.895

	
0.898

	
0.900

	
0.903

	
0.905

	
0.908

	
0.910

	
51

	
0.873

	
0.874

	
0.876

	
0.878

	
0.881

	
0.883

	
0.885

	
0.887

	
0.890

	
0.892

	
0.895

	
0.897

	
0.900

	
0.903

	
52

	
0.864

	
0.866

	
0.868

	
0.870

	
0.872

	
0.874

	
0.877

	
0.879

	
0.881

	
0.884

	
0.887

	
0.889

	
0.892

	
0.895

	
53

	
0.855

	
0.857

	
0.859

	
0.861

	
0.863

	
0.865

	
0.868

	
0.870

	
0.873

	
0.875

	
0.878

	
0.881

	
0.883

	
0.886

	
54

	
0.846

	
0.848

	
0.850

	
0.852

	
0.854

	
0.856

	
0.858

	
0.861

	
0.863

	
0.866

	
0.869

	
0.871

	
0.874

	
0.877

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
39

	
40

	
41

	
42

	
43

	
44

	
45

	
46

	
47

	
48

	
49

	
50

	
51

	
52

	
25

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
26

	
0.991

	
0.991

	
0.992

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
27

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
28

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
29

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.993

	
0.994

	
0.994

	
30

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
31

	
0.985

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.990

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
32

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
33

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
0.990

	
0.991

	
0.992

	
34

	
0.979

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.986

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
35

	
0.977

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.988

	
0.989

	
0.990

	
36

	
0.975

	
0.977

	
0.978

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
37

	
0.973

	
0.974

	
0.976

	
0.977

	
0.978

	
0.979

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
38

	
0.970

	
0.972

	
0.973

	
0.975

	
0.976

	
0.977

	
0.979

	
0.980

	
0.981

	
0.982

	
0.983

	
0.984

	
0.985

	
0.986

	
39

	
0.967

	
0.969

	
0.970

	
0.972

	
0.973

	
0.975

	
0.976

	
0.978

	
0.979

	
0.980

	
0.982

	
0.983

	
0.984

	
0.985

	
40

	
0.964

	
0.966

	
0.967

	
0.969

	
0.971

	
0.972

	
0.974

	
0.975

	
0.977

	
0.978

	
0.980

	
0.981

	
0.982

	
0.983

	
41

	
0.961

	
0.962

	
0.964

	
0.966

	
0.968

	
0.969

	
0.971

	
0.973

	
0.974

	
0.976

	
0.977

	
0.979

	
0.980

	
0.981

	
42

	
0.957

	
0.959

	
0.961

	
0.963

	
0.964

	
0.966

	
0.968

	
0.970

	
0.972

	
0.973

	
0.975

	
0.976

	
0.978

	
0.979

	
43

	
0.953

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
0.965

	
0.967

	
0.969

	
0.970

	
0.972

	
0.974

	
0.975

	
0.977

	
44

	
0.948

	
0.950

	
0.953

	
0.955

	
0.957

	
0.959

	
0.961

	
0.963

	
0.965

	
0.967

	
0.969

	
0.971

	
0.973

	
0.974

	
45

	
0.943

	
0.946

	
0.948

	
0.950

	
0.953

	
0.955

	
0.957

	
0.959

	
0.961

	
0.964

	
0.966

	
0.968

	
0.970

	
0.971

	
46

	
0.938

	
0.941

	
0.943

	
0.946

	
0.948

	
0.950

	
0.953

	
0.955

	
0.957

	
0.960

	
0.962

	
0.964

	
0.966

	
0.968

	
47

	
0.933

	
0.935

	
0.938

	
0.940

	
0.943

	
0.945

	
0.948

	
0.950

	
0.953

	
0.955

	
0.958

	
0.960

	
0.962

	
0.965

	
48

	
0.927

	
0.929

	
0.932

	
0.935

	
0.937

	
0.940

	
0.943

	
0.945

	
0.948

	
0.951

	
0.953

	
0.956

	
0.958

	
0.961

	
49

	
0.920

	
0.923

	
0.926

	
0.928

	
0.931

	
0.934

	
0.937

	
0.940

	
0.942

	
0.945

	
0.948

	
0.951

	
0.953

	
0.956

	
50

	
0.913

	
0.916

	
0.919

	
0.922

	
0.925

	
0.928

	
0.931

	
0.934

	
0.937

	
0.940

	
0.942

	
0.945

	
0.948

	
0.951

	
51

	
0.906

	
0.909

	
0.912

	
0.915

	
0.918

	
0.921

	
0.924

	
0.927

	
0.930

	
0.933

	
0.936

	
0.940

	
0.943

	
0.946

	
52

	
0.898

	
0.901

	
0.904

	
0.907

	
0.910

	
0.913

	
0.917

	
0.920

	
0.923

	
0.927

	
0.930

	
0.933

	
0.936

	
0.940

	
53

	
0.889

	
0.892

	
0.896

	
0.899

	
0.902

	
0.905

	
0.909

	
0.912

	
0.916

	
0.919

	
0.923

	
0.926

	
0.930

	
0.933

	
54

	
0.880

	
0.884

	
0.887

	
0.890

	
0.893

	
0.897

	
0.900

	
0.904

	
0.908

	
0.911

	
0.915

	
0.919

	
0.922

	
0.926

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

 

  

 E-4

 

	  	
Spouse Age

	  	  	  	  	  	  	  	  	  	  	  	  
	
Participant Age

	
53

	
54

	
55

	
56

	
57

	
58

	
59

	
60

	
61

	
62

	
63

	
64

	  	  
	
25

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	
0.998

	  	  
	
26

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	
0.998

	
0.998

	  	  
	
27

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	
0.998

	  	  
	
28

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	
0.998

	  	  
	
29

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	
0.997

	  	  
	
30

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	
0.997

	
0.997

	  	  
	
31

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	
0.997

	  	  
	
32

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	
0.997

	  	  
	
33

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.996

	
0.996

	
0.996

	
0.996

	  	  
	
34

	
0.991

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	
0.996

	  	  
	
35

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	
0.996

	  	  
	
36

	
0.990

	
0.990

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	
0.995

	  	  
	
37

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	
0.993

	
0.994

	
0.994

	
0.995

	
0.995

	  	  
	
38

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.992

	
0.993

	
0.994

	
0.994

	
0.995

	  	  
	
39

	
0.986

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.992

	
0.992

	
0.993

	
0.993

	
0.994

	  	  
	
40

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	
0.993

	  	  
	
41

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	
0.991

	
0.992

	
0.993

	  	  
	
42

	
0.981

	
0.982

	
0.983

	
0.984

	
0.986

	
0.987

	
0.988

	
0.989

	
0.989

	
0.990

	
0.991

	
0.992

	  	  
	
43

	
0.978

	
0.980

	
0.981

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	
0.991

	  	  
	
44

	
0.976

	
0.978

	
0.979

	
0.981

	
0.982

	
0.983

	
0.985

	
0.986

	
0.987

	
0.988

	
0.989

	
0.990

	  	  
	
45

	
0.973

	
0.975

	
0.977

	
0.978

	
0.980

	
0.981

	
0.983

	
0.984

	
0.985

	
0.986

	
0.987

	
0.988

	  	  
	
46

	
0.970

	
0.972

	
0.974

	
0.976

	
0.977

	
0.979

	
0.981

	
0.982

	
0.983

	
0.985

	
0.986

	
0.987

	  	  
	
47

	
0.967

	
0.969

	
0.971

	
0.973

	
0.975

	
0.976

	
0.978

	
0.980

	
0.981

	
0.983

	
0.984

	
0.985

	  	  
	
48

	
0.963

	
0.965

	
0.967

	
0.970

	
0.972

	
0.974

	
0.975

	
0.977

	
0.979

	
0.980

	
0.982

	
0.983

	  	  
	
49

	
0.959

	
0.961

	
0.964

	
0.966

	
0.968

	
0.970

	
0.972

	
0.974

	
0.976

	
0.978

	
0.980

	
0.981

	  	  
	
50

	
0.954

	
0.957

	
0.959

	
0.962

	
0.964

	
0.967

	
0.969

	
0.971

	
0.973

	
0.975

	
0.977

	
0.979

	  	  
	
51

	
0.949

	
0.952

	
0.954

	
0.957

	
0.960

	
0.962

	
0.965

	
0.967

	
0.970

	
0.972

	
0.974

	
0.976

	  	  
	
52

	
0.943

	
0.946

	
0.949

	
0.952

	
0.955

	
0.958

	
0.961

	
0.963

	
0.966

	
0.968

	
0.970

	
0.973

	  	  
	
53

	
0.937

	
0.940

	
0.943

	
0.947

	
0.950

	
0.953

	
0.956

	
0.959

	
0.961

	
0.964

	
0.967

	
0.969

	  	  
	
54

	
0.930

	
0.933

	
0.937

	
0.940

	
0.944

	
0.947

	
0.950

	
0.954

	
0.957

	
0.959

	
0.962

	
0.965

	  	  

 

E-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]