Document:

Exhibit 10.4

 

THE CORPORATEPLAN

 

FOR RETIREMENTSM

 

FIDELITY BASIC PLAN DOCUMENT NO. 02

 

 

Ó 2003 FMR Corp.

All rights reserved.

 

 

THE CORPORATEPLAN

 

FOR RETIREMENTSM

 

	
  Preamble.

  	
   

  
	
  Article 1.  Adoption Agreement.

  	
   

  
	
  Article 2.  Definitions.

  	
   

  
	
  2.01.

  	
  Definitions

  	
   

  
	
  2.02.

  	
  Pronouns

  	
   

  
	
  2.03.

  	
  Special
  Effective Dates

  	
   

  
	
  Article 3.
  Service.

  	
   

  
	
  3.01.

  	
  Crediting of
  Eligibility Service

  	
   

  
	
  3.02.

  	
  Re-Crediting
  of Eligibility Service Following Termination of Employment

  	
   

  
	
  3.03.

  	
  Crediting of Vesting
  Service

  	
   

  
	
  3.04.

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

  	
   

  
	
  3.05.

  	
  Service with
  Predecessor Employer

  	
   

  
	
  3.06.

  	
  Change in Service Crediting

  	
   

  
	
  Article 4.
  Participation.

  	
   

  
	
  4.01.

  	
  Date
  of Participation

  	
   

  
	
  4.02.

  	
  Transfers Out of Covered
  Employment

  	
   

  
	
  4.03.

  	
  Transfers Into
  Covered Employment

  	
   

  
	
  4.04.

  	
  Resumption
  of Participation Following Reemployment

  	
   

  
	
  Article 5.
  Contributions.

  	
   

  
	
  5.01.

  	
  Contributions
  Subject to Limitations

  	
   

  
	
  5.02.

  	
  Compensation
  Taken into Account in Determining Contributions

  	
   

  
	
  5.03.

  	
  Deferral
  Contributions

  	
   

  
	
  5.04.

  	
  Employee
  Contributions

  	
   

  
	
  5.05.

  	
  No Deductible
  Employee Contributions

  	
   

  
	
  5.06.

  	
  Rollover
  Contributions

  	
   

  
	
  5.07.

  	
  Qualified
  Nonelective Employer Contributions

  	
   

  
	
  5.08.

  	
  Matching Employer
  Contributions

  	
   

  
	
  5.09.

  	
  Qualified
  Matching Employer Contributions

  	
   

  
	
  5.10.

  	
  Nonelective Employer
  Contributions

  	
   

  
	
  5.11.

  	
  Vested Interest in
  Contributions

  	
   

  
	
  5.12.

  	
  Time for Making
  Contributions

  	
   

  
	
  5.13.

  	
  Return of Employer
  Contributions

  	
   

  
	
  Article 6.
  Limitations on Contributions.

  	
   

  
	
  6.01.

  	
  Special
  Definitions

  	
   

  
	
  6.02.

  	
  Code
  Section 402(g) Limit on Deferral Contributions

  	
   

  
	
  6.03.

  	
  Additional
  Limit on Deferral Contributions

  	
   

  
	
  6.04.

  	
  Allocation
  and Distribution of “Excess Contributions”

  	
   

  
	
  6.05.

  	
  Reductions
  in Deferral Contributions to Meet Code Requirements

  	
   

  
	
  6.06.

  	
  Limit
  on Matching Employer Contributions and Employee Contributions

  	
   

  
	
  6.07.

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

  	
   

  
	
  6.08.

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

  	
   

  
	
  6.09.

  	
  Income or
  Loss on Distributable Contributions

  	
   

  
	
  6.10.

  	
  Deemed Satisfaction
  of “ADP” Test

  	
   

  

 

i

 

	
  6.11.

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

  	
   

  
	
  6.12.

  	
  Code
  Section 415 Limitations

  	
   

  
	
  Article 7.
  Participants’ Accounts.

  	
   

  
	
  7.01.

  	
  Individual
  Accounts

  	
   

  
	
  7.02.

  	
  Valuation
  of Accounts

  	
   

  
	
  Article 8.
  Investment of Contributions.

  	
   

  
	
  8.01.

  	
  Manner
  of Investment

  	
   

  
	
  8.02.

  	
  Investment
  Decisions

  	
   

  
	
  8.03.

  	
  Participant
  Directions to Trustee

  	
   

  
	
  Article 9.  Participant Loans.

  	
   

  
	
  9.01.

  	
  Special
  Definitions

  	
   

  
	
  9.02.

  	
  Participant
  Loans

  	
   

  
	
  9.03.

  	
  Separate
  Loan Procedures

  	
   

  
	
  9.04.

  	
  Availability
  of Loans

  	
   

  
	
  9.05.

  	
  Limitation on Loan Amount

  	
   

  
	
  9.06.

  	
  Interest Rate

  	
   

  
	
  9.07.

  	
  Level
  Amortization

  	
   

  
	
  9.08.

  	
  Security

  	
   

  
	
  9.09.

  	
  Transfer
  and Distribution of Loan Amounts from Permissible Investments

  	
   

  
	
  9.10.

  	
  Default

  	
   

  
	
  9.11.

  	
  Effect
  of Termination Where Participant has Outstanding Loan Balance

  	
   

  
	
  9.12.

  	
  Deemed
  Distributions Under Code Section 72(p)

  	
   

  
	
  9.13.

  	
  Determination
  of Account Value Upon Distribution Where Plan Loan is Outstanding

  	
   

  
	
  Article 10.
  In-Service Withdrawals.

  	
   

  
	
  10.01.

  	
  Availability
  of In-Service Withdrawals

  	
   

  
	
  10.02.

  	
  Withdrawal of
  Employee Contributions

  	
   

  
	
  10.03.

  	
  Withdrawal of
  Rollover Contributions

  	
   

  
	
  10.04.

  	
  Age
  59 1/2
  Withdrawals

  	
   

  
	
  10.05.

  	
  Hardship
  Withdrawals

  	
   

  
	
  10.06.

  	
  Preservation
  of Prior Plan In-Service Withdrawal Rules

  	
   

  
	
  10.07.

  	
  Restrictions
  on In-Service Withdrawals

  	
   

  
	
  10.08.

  	
  Distribution of
  Withdrawal Amounts

  	
   

  
	
  Article 11.  Right to Benefits.

  	
   

  
	
  11.01.

  	
  Normal or Early
  Retirement

  	
   

  
	
  11.02.

  	
  Late
  Retirement

  	
   

  
	
  11.03.

  	
  Disability
  Retirement

  	
   

  
	
  11.04.

  	
  Death

  	
   

  
	
  11.05.

  	
  Other Termination of
  Employment

  	
   

  
	
  11.06.

  	
  Application for
  Distribution

  	
   

  
	
  11.07.

  	
  Application
  of Vesting Schedule Following Partial Distribution

  	
   

  
	
  11.08.

  	
  Forfeitures

  	
   

  
	
  11.09.

  	
  Application of Forfeitures

  	
   

  
	
  11.10.

  	
  Reinstatement of
  Forfeitures

  	
   

  
	
  11.11.

  	
  Adjustment for
  Investment Experience

  	
   

  
	
  Article 12.  Distributions.

  	
   

  
	
  12.01.

  	
  Restrictions on
  Distributions

  	
   

  
	
  12.02.

  	
  Timing of
  Distribution Following Retirement or Termination of Employment

  	
   

  

 

ii

 

	
  12.03.

  	
  Participant Consent
  to Distribution

  	
   

  
	
  12.04.

  	
  Required
  Commencement of Distribution to Participants

  	
   

  
	
  12.05.

  	
  Required
  Commencement of Distribution to Beneficiaries

  	
   

  
	
  12.06.

  	
  Whereabouts
  of Participants and Beneficiaries

  	
   

  
	
  Article 13.
  Form of Distribution.

  	
   

  
	
  13.01.

  	
  Normal Form of
  Distribution Under Profit Sharing Plan

  	
   

  
	
  13.02.

  	
  Cash Out Of Small Accounts

  	
   

  
	
  13.03.

  	
  Minimum
  Distributions

  	
   

  
	
  13.04.

  	
  Direct
  Rollovers

  	
   

  
	
  13.05.

  	
  Notice
  Regarding Timing and Form of Distribution

  	
   

  
	
  13.06.

  	
  Determination
  of Method of Distribution

  	
   

  
	
  13.07.

  	
  Notice to
  Trustee

  	
   

  
	
  Article 14.
  Superseding Annuity Distribution Provisions.

  	
   

  
	
  14.01.

  	
  Special
  Definitions

  	
   

  
	
  14.02.

  	
  Applicability

  	
   

  
	
  14.03.

  	
  Annuity
  Form of Payment

  	
   

  
	
  14.04.

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

  	
   

  
	
  14.05.

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

  	
   

  
	
  14.06.

  	
  Spouse’s Consent to Waiver

  	
   

  
	
  14.07.

  	
  Notice
  Regarding “Qualified Joint and Survivor Annuity”

  	
   

  
	
  14.08.

  	
  Notice
  Regarding “Qualified Preretirement Survivor Annuity”

  	
   

  
	
  14.09.

  	
  Former Spouse

  	
   

  
	
  Article 15.
  Top-Heavy Provisions.

  	
   

  
	
  15.01.

  	
  Definitions

  	
   

  
	
  15.02.

  	
  Application

  	
   

  
	
  15.03.

  	
  Minimum
  Contribution

  	
   

  
	
  15.04.

  	
  Modification
  of Allocation Provisions to Meet Minimum Contribution Requirements

  	
   

  
	
  15.05.

  	
  Adjustment
  to the Limitation on Contributions and Benefits

  	
   

  
	
  15.06.

  	
  Accelerated
  Vesting

  	
   

  
	
  15.07.

  	
  Exclusion of
  Collectively-Bargained Employees

  	
   

  
	
  Article 16.
  Amendment and Termination.

  	
   

  
	
  16.01.

  	
  Amendments by the
  Employer that do Not Affect Prototype Status

  	
   

  
	
  16.02.

  	
  Amendments by
  the Employer that Affect Prototype Status

  	
   

  
	
  16.03.

  	
  Amendment by
  the Mass Submitter Sponsor and the Prototype Sponsor

  	
   

  
	
  16.04.

  	
  Amendments Affecting
  Vested and/or Accrued Benefits

  	
   

  
	
  16.05.

  	
  Retroactive
  Amendments

  	
   

  
	
  16.06.

  	
  Termination

  	
   

  
	
  16.07.

  	
  Distribution upon
  Termination of the Plan

  	
   

  
	
  16.08.

  	
  Merger or
  Consolidation of Plan; Transfer of Plan Assets

  	
   

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

  	
   

  
	
  17.01.

  	
  Amendment and
  Continuation of Prior Plan

  	
   

  
	
  17.02.

  	
  Transfer of Funds
  from an Existing Plan

  	
   

  
	
  17.03.

  	
  Acceptance
  of Assets by Trustee

  	
   

  
	
  17.04.

  	
  Transfer of Assets from
  Trust

  	
   

  
	
  Article 18.
  Miscellaneous.

  	
   

  
	
  18.01.

  	
  Communication to
  Participants

  	
   

  
	
  18.02.

  	
  Limitation
  of Rights

  	
   

  
	
  18.03.

  	
  Nonalienability of Benefits

  	
   

  

 

iii

 

	
  18.04.

  	
  Qualified
  Domestic Relations Orders Procedures

  	
   

  
	
  18.05.

  	
  Additional Rules for
  Paired Plans

  	
   

  
	
  18.06.

  	
  Application
  of Plan Provisions in Multiple Employer Plans

  	
   

  
	
  18.07.

  	
  Veterans Reemployment
  Rights

  	
   

  
	
  18.08.

  	
  Facility
  of Payment

  	
   

  
	
  18.09.

  	
  Information between
  Employer and Trustee

  	
   

  
	
  18.10.

  	
  Effect of Failure
  to Qualify Under Code

  	
   

  
	
  18.11.

  	
  Directions, Notices and
  Disclosure

  	
   

  
	
  18.12.

  	
  Governing Law

  	
   

  
	
  Article 19. Plan
  Administration.

  	
   

  
	
  19.01.

  	
  Powers
  and Responsibilities of the Administrator

  	
   

  
	
  19.02.

  	
  Nondiscriminatory
  Exercise of Authority

  	
   

  
	
  19.03.

  	
  Claims and Review
  Procedures

  	
   

  
	
  19.04.

  	
  Named
  Fiduciary

  	
   

  
	
  19.05.

  	
  Costs of Administration

  	
   

  
	
  Article 20. Trust Agreement.

  	
   

  
	
  20.01.

  	
  Acceptance of
  Trust Responsibilities

  	
   

  
	
  20.02.

  	
  Establishment of Trust
  Fund

  	
   

  
	
  20.03.

  	
  Exclusive
  Benefit

  	
   

  
	
  20.04.

  	
  Powers of
  Trustee

  	
   

  
	
  20.05.

  	
  Accounts

  	
   

  
	
  20.06.

  	
  Approval
  of Accounts

  	
   

  
	
  20.07.

  	
  Distribution from Trust
  Fund

  	
   

  
	
  20.08.

  	
  Transfer of
  Amounts from Qualified Plan

  	
   

  
	
  20.09.

  	
  Transfer of Assets
  from Trust

  	
   

  
	
  20.10.

  	
  Separate
  Trust or Fund for Existing Plan Assets

  	
   

  
	
  20.11.

  	
  Self-Directed
  Brokerage Option

  	
   

  
	
  20.12.

  	
  Employer Stock
  Investment Option

  	
   

  
	
  20.13.

  	
  Voting; Delivery of
  Information

  	
   

  
	
  20.14.

  	
  Compensation
  and Expenses of Trustee

  	
   

  
	
  20.15.

  	
  Reliance by
  Trustee on Other Persons

  	
   

  
	
  20.16.

  	
  Indemnification by
  Employer

  	
   

  
	
  20.17.

  	
  Consultation by
  Trustee with Counsel

  	
   

  
	
  20.18.

  	
  Persons Dealing
  with the Trustee

  	
   

  
	
  20.19.

  	
  Resignation or
  Removal of Trustee

  	
   

  
	
  20.20.

  	
  Fiscal Year of the Trust

  	
   

  
	
  20.21.

  	
  Discharge of
  Duties by Fiduciaries

  	
   

  
	
  20.22.

  	
  Amendment

  	
   

  
	
  20.23.

  	
  Plan
  Termination

  	
   

  
	
  20.24.

  	
  Permitted
  Reversion of Funds to Employer

  	
   

  
	
  20.25.

  	
  Governing Law

  	
   

  

 

iv

 

Preamble.

 

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

 

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

 

Article 1. 
Adoption Agreement.

 

Article 2.  Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)  “Beneficiary”
means the person or persons (including a trust) entitled under
Section 11.04 or 14.04 to receive benefits under the Plan upon the

 

1

 

death of a Participant;
provided, however, that for purposes of Section 13.03 such term shall be
applied in accordance with Code Section 401(a)(9) and the regulations
thereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

amount actually paid or made
available to the Participant during the Limitation Year.

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(1)  any individual who is a signatory to a
contract, letter of agreement, or other document that acknowledges his status
as an

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

If
the organization or other entity named in the Adoption Agreement is a sole
proprietor or a professional corporation and the sole proprietor of such
proprietorship or the sole shareholder of the professional corporation dies,
then the legal representative of such sole proprietor or shareholder shall be
deemed to be the Employer until such time as, through the disposition of such
sole proprietor’s or sole shareholder’s estate or otherwise, any organization
or other entity succeeds to the interests of the sole proprietor in the
proprietorship or the sole shareholder in the professional corporation. The
legal representative of a sole proprietor or shareholder shall be (1) the
person appointed as such by the sole proprietor or shareholder prior to his
death under a legally enforceable power of attorney, or, if none, (2) the
executor or administrator of the sole proprietor’s or shareholder’s estate.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

A
highly compensated former Employee includes any Employee who separated from
service (or was deemed to have separated) prior to the “determination year”,
performs no service for the Employer during the “determination year”, and was a
highly compensated active Employee for either the separation year or any
“determination year” ending on or after the Employee’s 55th birthday,

 

6

 

as determined under the
rules in effect for determining Highly Compensated Employees for such
separation year or “determination year”.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)  Each hour not counted under paragraph (1) or
(2) for which he would have been scheduled to work for the Employer or a
Related Employer during the period that he is absent from work because of
military duty, provided

 

7

 

the individual’s employment
rights are protected under Federal law and the individual returns to work with
the Employer or a Related Company during the period that his employment rights
are protected, each such hour to be credited to the individual for the Eligibility
Computation Period for which he would have been scheduled to work; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(rr)  “Related
Employer” means any employer other than the Employer named in
Subsection 1.02(a) of the Adoption Agreement if the Employer and such
other employer are members of a controlled group of corporations (as defined in
Code Section 414(b)) or an affiliated service group (as defined in Code
Section 414(m)), or are trades or businesses (whether or not incorporated)
which are under common control (as defined in Code Section 414(c)), or
such other employer is required to be aggregated with the Employer pursuant to

 

9

 

regulations issued under
Code Section 414(o); provided, however, that if Article 1 of the
Employer’s Plan is a Standardized Adoption Agreement, for purposes of
Subsection 1.02(b) of the Adoption Agreement, the term “Related Employer”
shall not include any employer that becomes a Related Employer as a result of
an asset or stock acquisition, merger or other similar transaction with respect
to any period prior to the earlier of (1) the date as of which
Subsection 1.02(b) of the Adoption Agreement is amended to name such
employer or (2) the first day of the second Plan Year beginning after the date
of such transaction.

 

(ss)  “Required
Beginning Date” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 3.  Service.

 

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

 

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

 

11

 

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

 

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

 

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

 

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

 

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

 

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

 

3.05.  Service
with Predecessor Employer.  If the Plan is the plan of a
predecessor employer, an Employee’s Eligibility and Vesting Service shall
include

 

12

 

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

 

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

 

Article 4.  Participation.

 

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

 

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

 

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

 

13

 

allocation of any
contributions to the Account of such Inactive Participant. Such Inactive
Participant shall continue to receive credit for Vesting Service completed
during the period that he continues in the employ of the Employer or a Related
Employer.

 

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

 

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

 

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

 

Article 5.  Contributions.

 

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

 

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

 

If the initial Plan Year of
a new plan consists of fewer than 12 months, calculated from the Effective Date
listed in Subsection 1.01(g)(1) of the Adoption Agreement through the end
of such initial Plan Year, except as otherwise provided in this paragraph,
Compensation for purposes of determining the amount and allocation of
contributions under this Article 5 for such initial Plan Year shall
include only Compensation for services during the period beginning on the
Effective Date listed in Subsection 1.01(g)(1) of the Adoption Agreement
and

 

14

 

ending on the last day of
the initial Plan Year. Notwithstanding the foregoing, if the Plan is a profit
sharing plan, Compensation for purposes of determining the amount and
allocation of non-safe harbor Nonelective Employer Contributions under this
Article 5 for such initial Plan Year shall include Compensation for the
full 12-consecutive-month period ending on the last day of the initial Plan
Year.

 

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

 

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

 

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

 

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

 

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

 

5.06.  Rollover
Contributions.  An Eligible Employee who is or was entitled
to receive an eligible rollover distribution, as defined in Code
Section 402(c)(4)

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(1)  in the ratio that each eligible Active
Participant’s “testing compensation”, as defined in Subsection 6.01(t),
for the Plan Year bears

 

16

 

to the total “testing
compensation” paid to all eligible Active Participants for the Plan Year; or

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

Subsection 15.01(f),
for any Plan Year, these allocation provisions shall be modified as provided in
Section 15.04; or

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(C)  “Cumulative
permitted disparity limit” means 35 multiplied by the sum of an
Active Participant’s annual permitted disparity fractions, as defined in
Sections 1.401(l)-5(b)(3) through (b)(7) of the Treasury Regulations,
attributable to the Active Participant’s total years of service under the Plan
and any other qualified plan

 

19

 

or simplified employee
pension, as defined in Code Section 408(k), maintained by the Employer or
a Related Employer. For each Plan Year commencing prior to January 1,
1989, the annual permitted disparity fraction shall be deemed to be one, unless
the Participant never accrued a benefit under any qualified plan or simplified
employee pension maintained by the Employer or a Related Employer during any
such Plan Year. In determining the annual permitted disparity fraction for any
Plan Year, the Employer may elect to assume that the full disparity limit has
been used for such Plan Year.

 

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

 

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

 

(a)  his Deferral Contributions Account;

 

(b)  his Qualified Nonelective Contributions
Account;

 

(c)  his Qualified Matching Employer Contributions
Account;

 

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

 

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

 

(f)  his Rollover Contributions Account;

 

(g)  his Employee Contributions Account; and

 

(h)  his deductible Employee Contributions
Account.

 

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

 

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

 

20

 

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

 

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

 

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

 

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

 

Article 6.  Limitations on Contributions.

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

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

 

(5)  all amounts derived from contributions paid
or accrued after December 31, 1985, in taxable years ending after such
date, which are attributable to post-retirement medical benefits allocated to
the separate account of a key employee, as defined in Code
Section 419A(d)(3), under a “welfare benefit fund” maintained by the “415
employer”; and

 

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

 

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

 

(d)  “Contribution
percentage amounts” mean:

 

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

 

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

 

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

 

22

 

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

 

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

 

(5)  any Deferral Contributions; and

 

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

 

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

 

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

 

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

 

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

 

(9) all Deferral
Contributions.

 

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

 

23

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(2)  The maximum amount of “includable
contributions” permitted to be made on behalf of Highly Compensated Employees
under Section 6.03 (determined by reducing “includable contributions” made
for the Plan Year on behalf of Active Participants who are Highly Compensated
Employees in

 

25

 

order of their “deferral
ratios”, beginning with the highest of such “deferral ratios”).

 

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

 

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

 

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

 

(p)  “Includable
contributions” mean:

 

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

 

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

 

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

 

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

 

Effective
for Plan Years beginning on or after January 1, 1999, if an Employer
elects to change from the current year testing method described in Subsection 1.06(a)(1)
of the Adoption Agreement to the prior year testing

 

26

 

method described in
Subsection 1.06(a)(2) of the Adoption Agreement, the following shall not
be considered “includable contributions” for purposes of determining the
“deferral ratios” of Non-Highly Compensated Employees for the prior year
immediately preceding the Plan Year in which the change is effective:

 

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

 

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

 

(6) all Qualified Matching
Employer Contributions.

 

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

 

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

 

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

 

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

 

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

 

The
annual “testing compensation” of each Active Participant taken into account in
applying the “ADP” test described in Section 6.03 and the “ACP” test
described in Section 6.06 for any “testing year” shall not exceed the annual
compensation limit under Code Section 401(a)(17) as in effect on the first
day of the “testing year”. This limit shall be adjusted by the Secretary to
reflect increases in the cost of living, as provided in Code
Section 401(a)(17)(B); provided, however, that the dollar increase in
effect on January 1 of any calendar year is effective for “testing years”
beginning in such calendar year. If a Plan determines “testing compensation”
over a period that contains fewer than 12 calendar months (a “short determination

 

27

 

period”), then the
Compensation limit for such “short determination period” is equal to the
Compensation limit for the calendar year in which the “short determination
period” begins multiplied by the ratio obtained by dividing the number of full
months in the “short determination period” by 12; provided, however, that such
proration shall not apply if there is a “short determination period” because
(1) the Employer elected in accordance with any rules and regulations issued by
the Secretary of the Treasury or his delegate to apply the “ADP” test described
in Section 6.03 and/or the “ACP” test described in Section 6.06 based
only on Compensation paid during the portion of the “testing year” during which
an individual was an Active Participant or (2) an Employee is covered under the
Plan for fewer than 12 calendar months.

 

(u)  “Testing
year” means

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.03. Additional Limit on Deferral
Contributions (“ADP” Test).  Notwithstanding any other provision of the
Plan to the contrary, the Deferral Contributions made with respect to a Plan
Year on behalf of Active Participants who are Highly

 

28

 

Compensated Employees for
such Plan Year may not result in an average “deferral ratio” for such Active
Participants that exceeds the greater of:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.04.  Allocation
and Distribution of “Excess Contributions”.  Notwithstanding any other provision of this
Plan, the “excess contributions” allocable to the Account of a Participant,
plus any income and minus any loss allocable thereto, as determined under
Section 6.09, shall be distributed to the Participant no later than the
last day of the Plan Year immediately following the Plan Year in which

 

29

 

the “excess contributions”
were made. If such excess amounts are distributed more than 2 1/2 months after the last day of the Plan Year in
which the “excess contributions” were made, a ten percent excise tax shall be
imposed on the Employer maintaining the Plan with respect to such amounts.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

30

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.08.  Aggregate
Limit on “Contribution Percentage Amounts” and “Includable Contributions”.  The sum of the average “deferral ratio” and
the average

 

31

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

32

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.11.  Deemed
Satisfaction of “ACP” Test With Respect to Matching Employer Contributions.  A
Plan that satisfies the requirements of Section 6.10 shall also be deemed
to have satisfied the “ACP” test described in Section 6.06 with respect to
Matching Employer Contributions, if Matching Employer Contributions to the Plan
for the Plan Year meet all of the following requirements:  (a) the percentage of Deferral Contributions
matched does not increase as the percentage of Compensation contributed
increases; (b) Highly Compensated Employees are not provided a greater
percentage match than Non-Highly Compensated Employees; (c) Deferral
Contributions matched do not exceed six percent of a Participant’s
Compensation; and (d) if the Employer elected in Subsection 1.10(a)(2) or
1.10(b)

 

33

 

of the Adoption Agreement to
provide discretionary Matching Employer Contributions, the Employer also
elected in Subsection 1.10(a)(2)(A) or 1.10(b)(1)  of the Adoption Agreement, as applicable,
to limit the dollar amount of such discretionary Matching Employer
Contributions allocated to a Participant for the Plan Year to no more than four
percent of such Participant’s Compensation for the Plan Year.

 

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

 

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

 

(a)  Employer Maintains Single Plan:  If the “415 employer” does not maintain any
other qualified defined contribution plan or any “welfare benefit fund”,
“individual medical benefit account”, or “simplified employee pension” in addition
to the Plan, the provisions of this Subsection 6.12(a) shall apply.

 

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

 

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

 

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

 

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

 

34

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

35

 

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

 

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

 

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

 

(B)  any other limitation contained in the Plan.

 

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

 

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

 

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

 

(4)  Notwithstanding the provisions of any other
plan maintained by a “415 employer”, if there is an “excess 415 amount” with
respect to a

 

36

 

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

 

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

 

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

 

Article 7.  Participants’ Accounts.

 

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

 

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

 

Article 8.  Investment of Contributions.

 

8.01.  Manner of
Investment.  All contributions made to the Accounts of
Participants shall be held for investment by the Trustee. Except as otherwise
specifically provided in Section 20.10, the Accounts of Participants shall
be

 

37

 

invested and reinvested only
in Permissible Investments selected by the Employer and designated in the
Service Agreement.

 

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

 

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

 

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

 

(1)  Except as provided in this
Section 8.02, only authorized Plan contacts and the Participant shall have
access to a Participant’s Account. While any balance remains in the Account of
a Participant after his death, the Beneficiary of the Participant shall make
decisions as to the investment of the Account as though the Beneficiary were
the Participant. To the extent required by a qualified domestic relations order
as defined in Code Section 414(p), an alternate payee shall make
investment decisions with respect to any segregated account established in the
name of the alternate payee as provided in Section 18.04.

 

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

 

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

 

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

 

38

 

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

 

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

 

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

 

Article 9.  Participant Loans.

 

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

 

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

 

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

 

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

 

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

 

39

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

40

 

be witnessed by a Plan
representative or notary public. Such consent shall thereafter be binding with
respect to the consenting spouse or any subsequent spouse with respect to that
loan.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If a Participant makes
payments on a loan that has been deemed distributed, payments made on the loan
after the date it was deemed distributed shall be

 

41

 

treated as Employee
Contributions to the Plan for purposes of increasing the Participant’s tax
basis in his Account, but shall not be treated as Employee Contributions for
any other purpose under the Plan, including application of the “ACP” test
described in Section 6.06 and application of the Code Section 415
limitations described in Section 6.12.

 

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

 

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

 

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

 

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

 

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

 

Article 10.  In-Service Withdrawals.

 

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

 

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

 

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

 

42

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

43

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

44

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 11.  Right to
Benefits.

 

11.01.  Normal
or Early Retirement.  Each Participant who continues in employment
as an Employee until his Normal Retirement Age or, if so provided by the
Employer in Subsection 1.13(b) of the Adoption Agreement, Early Retirement
Age, shall have

 

45

 

a vested interest in his
Account of 100 percent regardless of any vesting schedule elected in
Section 1.15 of the Adoption Agreement. If a Participant retires upon the
attainment of Normal or Early Retirement Age, such retirement is referred to as
a normal retirement.

 

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

 

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

 

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

 

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

 

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

 

11.05.  Other
Termination of Employment.  If a Participant terminates his employment with the Employer and all
Related Employers, if any, for any reason other than death or normal, late, or
disability retirement, he shall be entitled to a termination benefit equal to
the sum of (a) his vested interest in the balance of his Matching Employer
and/or Nonelective Employer Contributions Account(s), other than the balance
attributable to safe harbor Matching Employer and/or safe harbor Nonelective
Employer Contributions elected by the Employer in Subsection 1.10(a)(3) or
1.11(a)(3) of the Adoption Agreement, such vested

 

46

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

47

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

48

 

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

 

Article 12.  Distributions.

 

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

 

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

 

(b)  The disposition by a corporation to an
unrelated corporation of substantially all of the assets (within the meaning of
Code Section 409(d)(2)) used in a trade or business of such corporation if such
corporation continues to maintain the Plan after the disposition, but only with
respect to former Employees who continue employment with the corporation
acquiring such assets.

 

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

 

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

 

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

 

49

 

shall be made within the 90-day period ending on the Participant’s
Annuity Starting Date.

 

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

 

Neither the consent of the
Participant nor the Participant’s spouse shall be required to the extent that a
distribution is required to satisfy Code Section 401(a)(9) or Code Section 415.
In addition, upon termination of the Plan if it does not offer an annuity option
(purchased from a commercial provider) and if the Employer or any Related
Employer does not maintain another defined contribution plan (other than an
employee stock ownership plan as defined in Code Section 4975(e)(7)) the
Participant’s Account shall, without the Participant’s consent, be distributed
to the Participant. However, if any Related Employer maintains another defined
contribution plan (other than an employee stock ownership plan as defined in
Code Section 4975(e)(7)) then the Participant’s Account shall be transferred,
without the Participant’s consent, to the other plan if the Participant does
not consent to an immediate distribution.

 

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

 

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

 

(b)  the Participant’s Required Beginning Date.

 

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

 

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

 

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

 

50

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

51

 

consent in accordance with the requirements of Section 1.411(a)-11 of
the Treasury Regulations.

 

Article 13.  Form of Distribution.

 

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

 

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

 

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

 

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

 

52

 

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

 

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

 

Distribution must be made in
substantially equal annual, or more frequent, installments, in cash, over a
period certain which does not extend beyond the life expectancy or joint life
expectancies of the Participant and his Beneficiary or, if the Participant dies
prior to the commencement of distributions from his Account, the life
expectancy of the Participant’s Beneficiary. The amount to be distributed for
each calendar year for which a minimum distribution is required shall be at
least an amount equal to the quotient obtained by dividing the Participant’s
interest in his Account by the life expectancy of the Participant or
Beneficiary or the joint life and last survivor expectancy of the Participant
and his Beneficiary, whichever is applicable. The amount to be distributed for
each calendar year shall not be less than an amount equal to the quotient obtained
by dividing the Participant’s interest in his Account by the lesser of (a) the
applicable life expectancy, or (b) if a Participant’s Beneficiary is not his
spouse, the applicable divisor determined under Section 1.401(a)(9)-2, Q&A
4 of the Proposed Treasury Regulations, or any successor regulations of similar
import. Distributions after the death of the Participant shall be made using
the applicable life expectancy under (a) above, without regard to Section
1.401(a)(9)-2 of such regulations. For purposes of this Section 13.03, life
expectancy and joint life and last survivor expectancy shall be computed by use
of the expected return multiples in Table V and VI of Section 1.72-9 of the
Treasury Regulations.

 

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

 

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

 

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

 

53

 

after the close of such year
shall be treated as if made prior to the close of such year.

 

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

 

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

 

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

 

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

 

(c)  “Eligible rollover distribution” means any
distribution of all or any portion of the balance to the credit of the
“distributee”, except that an “eligible rollover distribution” does not include
the following:

 

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

 

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

 

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

 

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

 

13.05.  Notice
Regarding Timing and Form of Distribution. 
Within the period beginning 90 days before a Participant’s Annuity
Starting Date and ending 30 days before such date, the Administrator shall
provide such Participant with written notice containing a general description
of the material features and an explanation of the relative values of the forms
of benefit available under the

 

54

 

Plan and informing the Participant of his right to defer receipt of the
distribution until his Required Beginning Date and his right to make a direct
rollover.

 

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

 

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

 

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

 

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

 

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

 

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

 

13.06.  Determination
of Method of Distribution.  Subject to Section 13.02, the
Participant shall determine the method of distribution of benefits to himself
and may determine the method of distribution to his Beneficiary. Such
determination shall be made prior to the time benefits become payable under the
Plan. If the Participant does not determine the method of distribution to his
Beneficiary or if the Participant permits his Beneficiary to override his
determination, the Beneficiary, in the event of the Participant’s death, shall
determine the method of distribution of benefits to himself as if he were the
Participant. A determination by the Beneficiary must be made no later than the
close of the calendar year in which distribution would be required to begin
under Section 12.05 or, if earlier, the close of the calendar year in which the
fifth anniversary of the death of the Participant occurs.

 

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

 

Article
14.  Superseding Annuity Distribution
Provisions.

 

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

 

(a)  “Qualified
joint and survivor annuity” means (1) if the Participant is not
married on his Annuity Starting Date, an immediate annuity payable for the life
of the Participant or (2) if the Participant is married on his

 

55

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(c)  The annuity contract may provide for payment
over the life of the Participant and, upon the death of the Participant, may
provide a survivor annuity continuing for the life of the Participant’s
designated Beneficiary. Such an annuity may provide for an annuity certain
feature for a period not exceeding the life expectancy of the Participant or,
if the annuity is payable to the Participant and a designated Beneficiary, the
joint life and last survivor expectancy of the Participant and such
Beneficiary. If the Participant dies prior to his Annuity Starting Date, the
annuity contract distributed to the Participant’s Beneficiary may provide for
payment over the life of the Beneficiary, and may provide for an annuity
certain feature for a

 

56

 

period not exceeding the
life expectancy of the Beneficiary. The types of annuity contracts provided
under the Plan shall be limited to the types of annuities described in Section
1.19 and the Forms of Payment Addendum to the Adoption Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

If a Participant’s Account is subject to the requirements of this
Section 14.04, distribution shall be made to the Participant in the form of a
“qualified joint and survivor annuity” (with a survivor annuity in the
percentage amount specified by the Employer in Subsection 1.19 of the Adoption
Agreement), unless the Participant waives the “qualified joint and survivor
annuity” as provided in Section 14.05. If the Participant dies prior to his
Annuity Starting Date, distribution shall be made to the Participant’s
surviving spouse, if any, in the form of a “qualified preretirement survivor
annuity”, unless the Participant waives the “qualified preretirement survivor
annuity” as provided in Section 14.05, or the Participant’s surviving spouse
elects in writing to receive distribution in one of the other forms of payment
provided under the Plan. If the Employer has specified in Section 1.19 of the
Adoption Agreement that less than 100 percent of a Participant’s Account shall
be used to purchase the “qualified preretirement survivor annuity”,
distribution of the balance of the Participant’s vested interest in his Account
that is not used to purchase the “qualified preretirement survivor annuity”
shall be distributed to the Participant’s designated Beneficiary in accordance
with the provisions of Sections 11.04 and 12.05.

 

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

 

57

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

58

 

revoke an election to waive the “qualified joint and survivor annuity”
prior to his Annuity Starting Date.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 15.  Top-Heavy Provisions.

 

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

 

(a)  “Determination
date” means, for any Plan Year subsequent to the first Plan Year,
the last day of the preceding Plan Year. For the first Plan Year of the Plan,
“determination date” means the last day of that Plan Year.

 

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

 

(c)  “Key
employee” means any Employee or former Employee (and the Beneficiary
of any such Employee) who at any time during the “determination period” was (1)
an officer of the Employer or a Related Employer whose annual Compensation
exceeds 50 percent of the dollar limitation under Code Section 415(b)(1)(A),
(2) one of the ten Employees whose annual Compensation from the Employer or a
Related Employer exceeds the dollar limitation under Code

 

59

 

Section 415(c)(1)(A) and who
owns (or is considered as owning under Code Section 318) one of the largest
interests in the Employer and all Related Employers, (3) a five percent owner
of the Employer and all Related Employers, or (4) a one percent owner of the
Employer and all Related Employers whose annual Compensation exceeds $150,000. The
determination of who is a “key employee” shall be made in accordance with Code
Section 416(i)(1)  and regulations
issued thereunder.

 

(d)  “Permissive
aggregation group” means the “required aggregation group” plus any
other qualified plans of the Employer or a Related Employer which, when
considered as a group with the “required aggregation group”, would continue to
satisfy the requirements of Code Sections 401(a)(4) and 410.

 

(e)  “Required
aggregation group” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)  “Top-heavy
ratio” means:

 

(1)  With respect to the Plan, or with respect to
any “required aggregation group” or “permissive aggregation group” that
consists solely of defined contribution plans (including any simplified
employee pension, as defined in Code Section 408(k)), a fraction, the numerator
of which is the sum of the account balances of all “key employees” under the
plans as of the “determination date” (including any part of any account balance
distributed during the five-year period ending on the “determination date”),
and the denominator of which is the sum of all account balances (including any
part of any account balance distributed during the five-year period ending on
the “determination date”) of all participants under the plans as of the
“determination date”. Both the numerator and denominator of the “top-heavy
ratio” shall be increased, to the extent required by Code Section 416, to
reflect any contribution which is due but unpaid as of the “determination
date”.

 

60

 

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

 

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

 

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

 

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

 

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

 

15.03.  Minimum
Contribution.  Except as otherwise specifically provided in
this Section 15.03, the Nonelective Employer Contributions made for the Plan
Year on behalf of any Active Participant who is not a “key employee” shall not
be less than the lesser of three percent (or such other percentage selected by
the Employer in Subsection 1.21(c) of the Adoption Agreement) of such
Participant’s Compensation for the Plan Year or, in the case where neither the
Employer nor any Related Employer maintains a defined benefit plan which uses
the Plan to satisfy

 

61

 

Code Section 401(a)(4) or 410, the largest percentage of Employer
contributions made on behalf of any “key employee” for the Plan Year, expressed
as a percentage of the “key employee’s” Compensation for the Plan Year, unless
the Employer has provided in Subsection 1.21(c) of the Adoption Agreement that
the minimum contribution requirement shall be met under the other plan or plans
of the Employer.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

62

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)  If any Nonelective Employer Contributions
remain after the allocation in Subsection 15.04(b)(2) above, the remaining
Nonelective Employer Contributions shall be allocated to each eligible Active Participant in the
same ratio that the eligible Active Participant’s Excess Compensation for the
Plan Year bears to the total Excess Compensation of all eligible Participants
for the Plan Year; provided,

 

63

 

however, that such ratio
shall not exceed three percent (or such other percentage selected by the
Employer in Subsection 1.21(c) of the Adoption Agreement).

 

15.05.  Adjustment
to the Limitation on Contributions and Benefits.  For
Limitation Years beginning prior to January 1, 2000, if the Plan is a
“top-heavy plan”, the number 100 shall be substituted for the number 125 in
determining the “defined benefit fraction”, as defined in Subsection 6.01(f)
and the “defined contribution fraction”, as defined in Subsection 6.01(g).
However, this substitution shall not take effect with respect to the Plan in
any Plan Year in which the following requirements are satisfied:

 

(a)  The Employer contributions for such Plan
Year made on behalf of each eligible Active Participant, as determined under
Section 15.03, who is not a “key employee” and who is a participant in a
defined benefit plan maintained by the Employer or a Related Employer is not
less than 7 1/2  percent of such eligible Active Participant’s
Compensation.

 

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

 

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

 

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

 

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

 

Article 16.  Amendment and Termination.

 

16.01.  Amendments
by the Employer that do Not Affect Prototype Status.  The
Employer reserves the authority through a board of directors’ resolution or
similar action, subject to the provisions of Article 1 and Section 16.04, to

 

64

 

amend the Plan as provided herein, and such amendment shall not affect
the status of the Plan as a prototype plan.

 

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

 

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

 

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

 

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

 

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

 

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

 

16.04.  Amendments
Affecting Vested and/or Accrued Benefits. 
Except as permitted by Section 16.05, Section 1.19(e) and the Forms of
Payment Addendum to the Adoption Agreement, and/or Code Section 411(d)(6) and
regulations issued thereunder, no amendment to the Plan shall be effective to
the extent that it has the effect of decreasing a Participant’s Account or
eliminating an optional form

 

65

 

of benefit with respect to benefits attributable to service before the
amendment. Furthermore, if the vesting schedule of the Plan is amended, the
nonforfeitable interest of a Participant in his Account, determined as of the
later of the date the amendment is adopted or the date it becomes effective,
shall not be less than the Participant’s nonforfeitable interest in his Account
determined without regard to such amendment.

 

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

 

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

 

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

 

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

 

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

 

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

 

66

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)  Any election and waiver of the “qualified
preretirement survivor annuity”, as defined in Section 14.01, in effect after
August 23, 1984, under the prior plan immediately before such amendment and
restatement shall be

 

67

 

deemed a valid election and
waiver of Beneficiary under Section 14.04 if such designation satisfies the
requirements of Sections 14.05 and 14.06, unless and until the Participant
revokes such election and waiver under the Plan.

 

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

 

17.02.  Transfer
of Funds from an Existing Plan.  The
Employer may from time to time direct the Trustee, in accordance with such
rules as the Trustee may establish, to accept cash, allowable Fund Shares or
participant loan promissory notes transferred for the benefit of Participants
from a trust forming part of another qualified plan under the Code, provided
such plan is a defined contribution plan. Such transferred assets shall become
assets of the Trust as of the date they are received by the Trustee. Such
transferred assets shall be credited to Participants’ Accounts in accordance
with their respective interests immediately upon receipt by the Trustee. A
Participant’s interest under the Plan in transferred assets which were fully
vested and nonforfeitable under the transferring plan or which were transferred
to the Plan in a manner intended to satisfy the requirements of subsection (b)
of this Section 17.02 shall be fully vested and nonforfeitable at all times. A
Participant’s interest under the Plan in transferred assets which were
transferred to the Plan in a manner intended to satisfy the requirements of
subsection (a) of this Section 17.02 shall be determined in accordance with the
terms of the Plan unless the transferor plan’s vesting schedule is more
favorable.  Such transferred assets
shall be invested by the Trustee in accordance with the provisions of
Subsection 17.01(g) as if such assets were transferred from a prior plan.
Except as otherwise provided below, no transfer of assets in accordance with
this Section 17.02 may cause a loss of an accrued or optional form of benefit
protected by Code Section 411(d)(6).

 

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

 

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

 

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

 

68

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)  The
assets so transferred shall be accompanied by instructions in writing (or such
other medium as may be acceptable to the Trustee) from the Employer

 

69

 

naming the persons for whose
benefit such assets have been transferred, showing separately the respective
contributions by the Employer and by each Inactive Participant, if any, and
identifying the assets attributable to the various contributions. The Trustee
shall not transfer assets hereunder until all applicable filing requirements are
met. The Trustee shall have no further liabilities with respect to assets so
transferred.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

70

 

Article 18. Miscellaneous.

 

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

 

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

 

18.03.  Nonalienability
of Benefits.
Except as provided in Code Sections 401(a)(13)(C) and (D) (relating to offsets
ordered or required under a criminal conviction involving the Plan, a civil
judgment in connection with a violation or alleged violation of fiduciary
responsibilities under ERISA, or a settlement agreement between the Participant
and the Department of Labor in connection with a violation or alleged violation
of fiduciary responsibilities under ERISA), Section 1.401(a)-13(b)(2) of the
Treasury Regulations (relating to Federal tax levies), or as otherwise required
by law, the benefits provided hereunder shall not be subject to alienation,
assignment, garnishment, attachment, execution or levy of any kind, either
voluntarily or involuntarily, and any attempt to cause such benefits to be so
subjected shall not be recognized. The preceding sentence shall also apply to
the creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order, unless such
order is determined by the Administrator to be a qualified domestic relations
order, as defined in Code Section 414(p), or any domestic relations order
entered before January 1, 1985.

 

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

 

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

 

71

 

exist and shall apply the order prospectively if the Administrator
later determines the order is a qualified domestic relations order.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

72

 

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

 

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

 

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

 

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

 

18.11.  Directions,
Notices and Disclosure.  Any notice or other
communication in connection with this Plan shall be deemed delivered in writing
if addressed as provided below and if either actually delivered at said address
or, in the case of a letter, three business days shall have elapsed after the
same shall have been deposited in the United States mails, first-class postage
prepaid and registered or certified:

 

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

 

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

 

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

 

Any direction, notice or
other communication provided to the Employer, the Administrator or the Trustee
by another party which is stipulated to be in written form under the provisions
of this Plan may also be provided in any medium

 

73

 

which is permitted under applicable law or regulation. Any written
communication or disclosure to Participants required under the provisions of
this Plan may be provided in any other medium (electronic, telephone or
otherwise) that is permitted under applicable law or regulation.

 

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

 

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

 

Article
19.  Plan Administration.

 

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

 

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

 

19.03.  Claims and Review Procedures.  Except to the extent that the provisions of
any collective-bargaining agreement provide another method of resolving claims
for benefits under the Plan, the provisions of this Section 19.03 shall control
with respect to the resolution of such claims; provided, however, that the
Employer may institute alternative claims procedures that are more restrictive
on the Employer and more generous with respect to persons claiming a benefit
under the Plan.

 

(a)  Claims
Procedure.  Whenever a request for
benefits under the Plan is wholly or partially denied, the Administrator shall
notify the person claiming such benefits of its decision in writing. Such
notification shall contain (1) specific reasons for the denial of the claim,
(2) specific reference to pertinent Plan provisions, (3) a description of any
additional material or information necessary for such person to perfect such
claim and an explanation of why such material or information is necessary, and
(4) information as to the steps to be taken if the person wishes to submit a
request for review. Such notification shall be given within 90 days after the
claim is received by the Administrator (or within 180 days, if special
circumstances require an extension of time for processing the claim, and if

 

74

 

written notice of such
extension and circumstances is given to such person within the initial 90-day
period). If such notification is not given within such period, the claim shall
be considered denied as of the last day of such period and such person may
request a review of his claim.

 

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

 

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

 

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

 

Article
20.  Trust Agreement.

 

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

 

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

 

75

 

invested and reinvested in accordance with the applicable provisions of
the Plan in Fund Shares or as otherwise provided in Section 20.10.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

76

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

20.06.  Approval of Accounts.  To the extent permitted by law, the written approval of any account by
the Employer or Administrator shall be final and binding, as to all matters and
transactions stated or shown therein, upon the Employer, Administrator,
Participants and all persons who then are or thereafter become interested in
the Trust. The failure of the Employer or Administrator to

 

77

 

notify the Trustee within six months after the receipt of any account
of its objection to the account shall, to the extent permitted by law, be the
equivalent of written approval. If the Employer or Administrator files any
objections within such six month period with respect to any matters or
transactions stated or shown in the account, and the Employer or Administrator
and the Trustee cannot amicably settle the question raised by such objections,
the Trustee shall have the right to have such questions settled by judicial
proceedings. Nothing herein contained shall be construed so as to deprive the
Trustee of the right to have judicial settlement of its accounts. In any
proceeding for a judicial settlement of any account or for instructions, the
only necessary parties shall be the Trustee, the Employer and the
Administrator.

 

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

 

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

 

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

 

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

 

78

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

79

 

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

 

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

 

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

 

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

 

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

 

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

 

In the case of a Unitized Stock Fund, such units shall represent a
proportionate interest in all assets of the Unitized Stock Fund, which includes
shares of Employer Stock, short-term investments, and at times, receivables for
dividends and/or Employer Stock sold and payables for Employer Stock purchased.
A net asset value per unit shall be determined daily for each cash unit
outstanding of the

 

80

 

Unitized Stock Fund. The return earned by the Unitized Stock Fund shall
represent a combination of the dividends paid on the shares of Employer Stock
held by the Unitized Stock Fund, gains or losses realized on sales of Employer
Stock, appreciation or depreciation in the market price of those shares owned,
and interest on the short-term investments held by the Unitized Stock Fund. A
target range for the short-term liquid investments shall be maintained for the
Unitized Stock Fund. The Named Fiduciary shall, after consultation with the
Trustee, establish and communicate to the Trustee in writing such target range
and a drift allowance for such short-term liquid investments.  Such target range and drift allowance may be
changed by the Named Fiduciary, after consultation with the Trustee, provided
any such change is communicated to the Trustee in writing.  The Trustee is responsible for ensuring that
the actual short-term liquid investments held in the Unitized Stock Fund fall
within the agreed upon target range over time, subject to the Trustee’s ability
to execute open-market trades in Employer Stock or to otherwise trade with the
Employer.

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)  If the Trustee is prohibited by
the Securities and Exchange Commission, the New York Stock Exchange, or any
other regulatory body

 

81

 

from purchasing or selling
any or all of the shares required to be purchased or sold on such day.

 

In the event of the
occurrence of the circumstances described in (1), (2), or (3) above, the
Trustee shall purchase or sell such shares as soon as possible thereafter and,
in the case of a Share Accounting Stock Fund, shall determine the price of such
purchases or sales to be the average purchase or sales price of all such shares
purchased or sold, respectively.

 

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

 

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

 

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

 

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

 

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

 

82

 

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

 

The Employer, after
consultation with the Trustee, shall provide and pay for all printing, mailing,
tabulation and other costs associated with the voting and tendering of Employer
Stock, except as required by law. The Trustee, after consultation with the
Employer, shall prepare the necessary documents associated with the voting and
tendering of Employer Stock, unless the Employer directs the Trustee not to do
so.

 

(1)       Voting.

 

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

 

(B)  Each Participant with an
interest in the Stock Fund shall have the right to direct the Trustee as to the
manner in which the Trustee is to vote (including not to vote) that number of
shares of Employer Stock that is credited to his Account, if the Plan uses
share accounting, or, if accounting is by units of participation, that reflects
such Participant’s proportional interest in the Stock Fund (both vested and
unvested). Directions from a Participant to the Trustee concerning the voting
of Employer Stock shall be communicated in writing, or by such other means
mutually acceptable to the Trustee and the Employer. These directions shall be
held in confidence by the Trustee and shall not be divulged to the Employer, or
any officer or employee thereof, or any other person, except to the extent that
the consequences of such directions are reflected in reports regularly
communicated to any such persons in the ordinary course of the performance of
the Trustee’s services hereunder. Upon its receipt of the directions, the
Trustee shall vote the shares of Employer Stock that reflect the Participant’s
interest in the Stock Fund as directed by the Participant. The Trustee shall
not vote

 

83

 

shares of Employer Stock
that reflect a Participant’s interest in the Stock Fund for which the Trustee
has received no direction from the Participant, except as required by law.

 

(2)       Tender Offers.

 

(A)  Upon
commencement of a tender offer for any securities held in the Trust that are
Employer Stock, the Employer shall timely notify the Trustee in advance of the
intended tender date and shall cause a copy of all materials to be sent to the
Trustee.  The Employer shall certify to
the Trustee that the aforementioned materials represent the same information
distributed to shareholders of Employer Stock. Based on these materials, and
after consultation with the Employer, the Trustee shall prepare a tender
instruction form and shall provide a copy of all tender materials to be sent to
each Participant with an interest in the Stock Fund, together with the
foregoing tender instruction form, to be returned to the Trustee or its
designee. The tender instruction form shall show the number of full and
fractional shares of Employer Stock credited to the Participant’s Account, if
the Plan uses share accounting, or, if accounting is by units of participation,
that reflect the Participant’s proportional interest in the Stock Fund (both
vested and unvested). The Employer shall notify each Participant with an
interest in such Employer Stock of the tender offer and utilize its best
efforts to timely distribute or cause to be distributed to the Participant the
tender materials and the tender instruction form described herein. The Employer
shall provide the Trustee with a copy of any materials provided to the
Participants and shall (if the mailing is not handled by the Trustee) notify
the Trustee that the materials have been mailed or otherwise sent to
Participants.

 

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

 

(C)  A Participant who has directed
the Trustee to tender some or all of the shares of Employer Stock that reflect
the Participant’s

 

84

 

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

 

(D)  A direction by a Participant to
the Trustee to tender shares of Employer Stock that reflect the Participant’s
proportional interest in the Stock Fund shall not be considered a written
election under the Plan by the Participant to withdraw, or have distributed,
any or all of his withdrawable shares. If the Plan uses share accounting, the
Trustee shall credit to the Participant’s Account the proceeds received by the
Trustee in exchange for the shares of Employer Stock tendered from the
Participant’s Account. If accounting is by units of participation, the Trustee
shall credit to each proportional interest of the Participant from which the
tendered shares were taken the proceeds received by the Trustee in exchange for
the shares of Employer Stock tendered from that interest. Pending receipt of
direction (through the Administrator) from the Participant or the named
fiduciary, as provided in the Plan, as to which of the remaining Permissible
Investments the proceeds should be invested in, the Trustee shall invest the
proceeds in the Permissible Investment specified for such purposes in the
Service Agreement or, if no such Permissible Investment has been specified, the
most conservative Permissible Investment designated by the Employer in the
Service Agreement.

 

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

 

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

 

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

 

20.13.  Voting; Delivery of Information.  The Trustee shall deliver, or cause to be
executed and delivered, to the Employer or Administrator all notices,
prospectuses, financial statements, proxies and proxy soliciting materials
received by the Trustee relating to securities held by the Trust or, if
applicable, deliver these materials to the appropriate Participant or the
Beneficiary of a deceased Participant. The Trustee shall not vote any
securities held by the Trust except in accordance with the instructions of the
Employer, Participant, or the Beneficiary of the Participant if the Participant
is deceased; provided, however, that the Trustee may, in the absence of
instructions, vote “present” for the sole purpose of allowing such shares to be
counted for establishment of a quorum at a shareholders’ meeting. The Trustee

 

85

 

shall have no duty to solicit instructions from Participants,
Beneficiaries, or the Employer.

 

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

 

20.15.  Reliance by Trustee on Other Persons.  The Trustee may rely upon and act upon any
writing from any person authorized by the Employer or the Administrator
pursuant to the Service Agreement or any other written direction to give
instructions concerning the Plan and may conclusively rely upon and be
protected in acting upon any written order from the Employer or the Administrator
or upon any other notice, request, consent, certificate, or other instructions
or paper reasonably believed by it to have been executed by a duly authorized
person, so long as it acts in good faith in taking or omitting to take any such
action. The Trustee need not inquire as to the basis in fact of any statement
in writing received from the Employer or the Administrator.

 

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

 

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

 

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

 

20.17.  Consultation by Trustee with
Counsel.  The Trustee may consult with legal counsel
(who may be but need not be counsel for the Employer or the Administrator)
concerning any question which may arise with respect to its rights

 

86

 

and duties under the Plan and Trust, and the opinion of such counsel
shall, to the extent permitted by law, be full and complete protection in
respect of any action taken or omitted by the Trustee hereunder in good faith
and in accordance with the opinion of such counsel.

 

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

 

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

 

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

 

Upon resignation or removal
of the Trustee, the Employer shall no longer participate in this prototype plan
and shall be deemed to have adopted an individually designed plan. In such
event, the Employer shall appoint a successor trustee within said 60-day period
and the Trustee shall transfer the assets of the Trust to the successor trustee
upon receipt of sufficient evidence (such as a determination letter or opinion
letter from the Internal Revenue Service or an opinion of counsel satisfactory
to the Trustee) that such trust shall be a qualified trust under the Code.

 

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

 

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

 

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

 

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

 

87

 

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

 

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

 

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

 

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

 

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

 

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

 

88

 

ADDENDUM

 

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

 

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

 

1

 

The
CORPORATEplan for RetirementSM

ADDENDUM

Re:
Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Amendments
for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)                                 Catch-up Contributions.

 

(1)           If elected by the Employer in Section (a) of the EGTRRA Amendments
Addendum to the Adoption Agreement, all Participants  who are eligible to make Deferral Contributions under the
Plan and who are projected to attain age 50 before the close of the calendar
year shall be eligible to make catch-up contributions in accordance with, and
subject to the limitations of, Code Section 414(v). Such catchup contributions
shall not be taken into account for purposes of the provisions of the Plan
implementing the required limitations of Code Sections 402(g) and 415. The Plan
shall not be treated

 

1

 

as failing to satisfy the
provisions of the Plan implementing the requirements of Code Section 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of the making
of such catch-up contributions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)          Maximum Annual Additions for Limitation Years
Beginning After December 31, 2001.

Notwithstanding anything
herein to the contrary, this subsection (e) shall be effective for Limitation

 

2

 

Years beginning after
December 31, 2001. Except to the extent permitted under Section 5.03(b)(1) and
Code Section 414(v), if applicable, the ‘annual additions’ that may be
contributed or allocated to a Participant’s Account under the Plan for any
Limitation Year shall not exceed the lesser of:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.         Section 10.05(b)(4) is hereby amended by adding the following phrase to
the beginning thereof:

 

Effective for calendar years
beginning before January 1, 2002, for a Participant who received a hardship
distribution before January 1, 2001,

 

12.         The existing text of Section 11.05 is hereby redesignated as Section
11.05(a), and a new Section 11.05(b) is hereby added to read as follows:

 

(b)          Vesting of Matching Employer
Contributions.  Notwithstanding anything herein to the
contrary,
the vesting schedule elected by the Employer in Section (d)(1) of the EGTRRA
Amendments Addendum to the Adoption Agreement shall apply to all accrued
benefits derived from Matching Employer Contributions for Participants who
complete an Hour of Service in a Plan Year beginning after December 31, 2001,
except as otherwise elected by the Employer in Section (d)(2) or Section (d)(3)
of the EGTRRA Amendments Addendum to the Adoption Agreement. With respect to
Participants covered by a collective bargaining agreement, the vesting schedule
elected in Section (d)(1) of the EGTRRA Amendments Addendum to the Adoption
Agreement shall take effect on a later date if so elected in Section (d)(2). If
so elected in Section (d)(3) of the EGTRRA Amendments Addendum to the Adoption
Agreement, the vesting schedule elected in Section (d)(1) shall apply only to
the accrued benefits derived from Matching Employer Contributions made with
respect to Plan Years beginning after December 31, 2001 (or such later date as
may be provided in Section (d)(2) for Participants covered by a collective
bargaining agreement).

 

13.         The existing text of Section 12.01 is hereby redesignated as Section
12.01(a), current subsections (a), (b), and (c) thereof are redesignated as
paragraphs (1), (2), and (3), respectively, and the first sentence thereof is
replaced with the following:

 

Subject to the application
of Section 12.01(b), a Participant or his Beneficiary may not receive a
distribution from his Deferral Contributions, Qualified Nonelective Employer
Contributions, Qualified Matching Employer Contributions, safe harbor Matching
Employer Contributions or safe harbor Nonelective Employer Contributions
Accounts earlier than upon the Participant’s separation from service with the
Employer and all Related Employers, death, or disability, except as otherwise
provided in Article 10 or Section 12.04.

 

3

 

14.         Section 12.01 is hereby amended by adding a new subsection (b) to the
end thereof:

 

(b)  If elected by the Employer in Section (f) of
the EGTRRA Amendments Addendum to the Adoption Agreement, notwithstanding
subsection (a) of this Section 12.01, a Participant, or his Beneficiary, may
receive a distribution after December 31, 2001 (or such later date as specified
therein), from his Deferral Contributions, Qualified Nonelective Employer
Contributions, Qualified Matching Employer Contributions, safe harbor Matching
Employer Contributions or safe harbor Nonelective Employer Contributions
Accounts on account of the Participant’s severance from employment occurring
after the dates specified in Section (f) of the EGTRRA Amendments Addendum to
the Adoption Agreement.

 

15.         Section 13.04 is hereby amended by adding the following paragraph to
the end thereof:

 

Notwithstanding anything
herein to the contrary, the following provisions shall apply to distributions
made after December 31, 2001:

 

(i)                                     Modification of definition of eligible
retirement plan.  For purposes of this Section 13.04, an
‘eligible retirement plan’ shall also mean an annuity contract described in
Code Section 403(b) and an eligible deferred compensation plan under Code
Section 457(b) that is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision of a state
and which agrees to separately account for amounts transferred into such plan
from this Plan. The definition of ‘eligible retirement plan’ shall also apply
in the case of a distribution to a surviving spouse, or to a spouse or former
spouse who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p).

 

(ii)                                  Modification of definition of eligible
rollover distribution to exclude hardship distributions.  For
purposes of this Section 13.04, any amount that is distributed on account of
hardship shall not be an ‘eligible rollover distribution’ and the ‘distributee’
may not elect to have any portion of such a distribution paid directly to an ‘eligible
retirement plan.’

 

(iii)                               Modification of definition of eligible
rollover distribution to include after-tax Employee Contributions.  For
purposes of this Section 13.04, a portion of a distribution shall not fail to
be an “eligible rollover distribution” merely because the portion consists of
after-tax Employee Contributions which are not includible in gross income.
However, such portion may be transferred only to an individual retirement
account or annuity described in Code Section 408(a) or (b), or to a qualified
defined contribution plan described in Code Section 401(a) or 403(a) that
agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible.

 

16.         Article 15 is hereby amended by adding a new Section 15.08 at the end
thereof as follows:

 

15.08.  Modification
of Top-Heavy Provisions.  Notwithstanding anything
herein to the contrary, this Section 15.08 shall apply for purposes of
determining whether the Plan is a top-heavy plan under Code Section 416(g) for
Plan Years beginning after December 31, 2001, and whether the Plan satisfies
the minimum benefits requirements of Code Section 416(c) for such years.  This Section modifies the rules in this
Article 15 of the Plan for Plan Years beginning after December 31, 2001.

 

(a)  Determination of top-heavy
status.

 

(1)  Key employee. Key employee means any
Employee or former Employee (including any deceased Employee)  who at any time
during the Plan Year that includes the determination date was an officer of the
Employer having annual compensation greater than $130,000 (as adjusted under
Code Section 416(i)(1) for Plan Years beginning after December 31, 2002), a
5-percent owner of the Employer, or a 1-percent owner of the Employer having
annual compensation of more than $150,000. For this purpose, annual
compensation means compensation within the meaning of Code Section 415(c)(3).
The determination of who is a key

 

4

 

employee will be made in
accordance with Code Section 416(i)(1) and the applicable regulations and other
guidance of general applicability issued thereunder.

 

(2) Determination of
present values and amounts. This Section 15.08(a)(2) shall apply for
purposes of determining the present values of accrued benefits and the amounts
of account balances of Employees as of the determination date.

 

(A) Distributions during
year ending on the determination date. The present values of accrued
benefits and the amounts of account balances of an Employee as of the
determination date shall be increased by the distributions made with respect to
the Employee under the Plan and any plan aggregated with the Plan under Code
Section 416(g)(2) during the 1-year period ending on the determination date.
The preceding sentence shall also apply to distributions under a terminated
plan which, had it not been terminated, would have been aggregated with the
Plan under Code Section 416(g)(2)(A)(i). In the case of a distribution made for
a reason other than separation from service, death, or disability, this
provision shall be applied by substituting the phrase “5-year period” for the
phrase “1-year period.”

 

(B)  Employees not performing services during
year ending on the determination date. The accrued benefits and accounts of
any individual who has not performed services for the Employer during the
1-year period ending on the determination date shall not be taken into account.

 

(b) Minimum benefits.

 

(1)          Matching contributions. 
Matching Employer Contributions shall be taken into account for purposes
of satisfying the minimum contribution requirements of Code Section 416(c)(2)
and the Plan.  The preceding sentence
shall apply with respect to Matching Employer Contributions under the Plan or,
if the Plan provides that the minimum contribution requirement shall be met in
another plan, such other plan.  Matching
Employer Contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the
actual contribution percentage test and other requirements of Code Section
401(m).

 

(2)          Contributions under other plans.  The
Employer may provide in the Adoption Agreement that the minimum benefit
requirement shall be met in another plan (including another plan that consists
solely of a cash or deferred arrangement which meets the requirements of Code
Section 401(k)(12) and matching contributions with respect to which the requirements
of Code Section 401(m)(11) are met).

 

(c)  Other Modifications.  The top-heavy requirements of Code Section
416 and this Article 15 shall not apply in any year beginning after December
31, 2001, in which the Plan consists solely of a cash or deferred arrangement
which meets the requirements of Code Section 401(k)(12) and Matching Employer
Contributions with respect to which the requirements of Code Section 401(m)(11)
are met.

 

5

 

ADDENDUM

 

IRS Model Amendment for Final and Temporary Regulations

Under Internal Revenue Code Section 401(a)(9)

 

Section 1.  General Rules

 

1.1         Effective Date.  The provisions
of this addendum will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.

 

1.2         Precedence.  The requirements of
this addendum will take precedence over any inconsistent provisions of the
Plan.

 

1.3         Requirements of Treasury Regulations Incorporated.  All distributions required under this
addendum will be determined and made in accordance with the Treasury
regulations under section 401(a)(9) of the Internal Revenue Code.

 

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

 

Section 2.  Time and Manner of
Distribution.

 

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

 

2.2         Death of Participant Before Distributions Begin.  If the Participant dies before distributions
begin, the Participant’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

 

(a)          If the Participant’s surviving spouse is the Participant’s sole
designated Beneficiary, then, except as otherwise elected under section 6,
distributions to the surviving spouse will begin by December 31 of the calendar
year immediately following the calendar year in which the Participant died, or
by December 31 of the calendar year in which the Participant would have
attained age 70 1⁄2, if later.

 

(b)         If the Participant’s surviving spouse is not the Participant’s sole
designated Beneficiary, then, except as otherwise elected under section 6,
distributions to the designated Beneficiary will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant
died.

 

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

 

(d)         If the Participant’s surviving spouse is the Participant’s sole
designated Beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this section 2.2, other
than section 2.2(a), will apply as if the surviving spouse were the
Participant.

 

For purposes of this section
2.2 and section 4, unless section 2.2(d) applies, distributions are considered
to begin on the Participant’s Required Beginning Date.  If section 2.2(d) applies, distributions are
considered to begin on the date distributions are required to begin to the
surviving spouse under section 2.2(a). 
If distributions under an annuity purchased from an insurance company
irrevocably commence to the Participant before the Participant’s Required
Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under section
2.2(a)), the date distributions are considered to begin is the date
distributions actually commence.

 

2.3         Forms of Distribution.  Unless
the Participant’s interest is distributed in the form of an annuity purchased
from an insurance company or in a single sum on or before the Required
Beginning Date, as of the first distribution calendar year distributions will
be made in accordance with sections 3 and 4 of this addendum.  If the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company, distributions
thereunder will be made in

 

1

 

accordance with the
requirements of section 401(a)(9) of the Code and the Treasury regulations.

 

Section 3.  Required Minimum
Distributions During Participant’s Lifetime.

 

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

 

(a)          the quotient obtained by dividing the Participant’s account balance by
the distribution period in the Uniform Lifetime Table set forth in section
1.401(a)(9)-9 of the Treasury regulations, using the Participant’s age as of
the Participant’s birthday in the distribution calendar year; or

 

(b)         if the Participant’s sole designated Beneficiary for the distribution
calendar year is the Participant’s spouse, the quotient obtained by dividing
the Participant’s account balance by the number in the Joint and Last Survivor
Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the
Participant’s and spouse’s attained ages as of the Participant’s and spouse’s
birthdays in the distribution calendar year.

 

3.2         Lifetime Required Minimum Distributions Continue Through Year of
Participant’s Death.  Required minimum
distributions will be determined under this section 3 beginning with the first
distribution calendar year and up to and including the distribution calendar
year that includes the Participant’s date of death.

 

Section 4.  Required Minimum
Distributions After Participant’s Death.

 

4.1         Death On or After Date Distributions Begin.

 

(a)  Participant Survived by
Designated Beneficiary.  If the
Participant dies on or after the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the longer
of the remaining life expectancy of the Participant or the remaining life
expectancy of the Participant’s designated Beneficiary, determined as follows:

 

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

 

(2)  If the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary, the remaining life expectancy of the
surviving spouse is calculated for each distribution calendar year after the
year of the Participant’s death using the surviving spouse’s age as of the
spouse’s birthday in that year.  For
distribution calendar years after the year of the surviving spouse’s death, the
remaining life expectancy of the surviving spouse is calculated using the age
of the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

(3)  If the Participant’s surviving spouse is not
the Participant’s sole designated Beneficiary, the designated Beneficiary’s
remaining life expectancy is calculated using the age of the Beneficiary in the
year following the year of the Participant’s death, reduced by one for each
subsequent year.

 

(b)  No Designated
Beneficiary.  If the Participant dies on
or after the date distributions begin and there is no designated Beneficiary as
of September 30 of the year after the year of the Participant’s death, the
minimum amount that will be distributed for each distribution calendar year
after the year of the Participant’s death is the quotient obtained by dividing
the Participant’s account balance by the Participant’s remaining life
expectancy calculated using the age of the Participant in the year of death,
reduced by one for each subsequent year.

 

4.2 Death Before Date
Distributions Begin.

 

(a)  Participant Survived by
Designated Beneficiary.  Except as
otherwise elected under section 6, if the Participant dies before the date
distributions begin and there is a designated Beneficiary, the minimum amount
that will be distributed for

 

2

 

each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account balance by
the remaining life expectancy of the Participant’s designated Beneficiary,
determined as provided in section 4.1.

 

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

 

(c)  Death of Surviving Spouse
Before Distributions to Surviving Spouse Are Required to Begin.  If the Participant dies before the date
distributions begin, the Participant’s surviving spouse is the Participant’s
sole designated Beneficiary, and the surviving spouse dies before distributions
are required to begin to the surviving spouse under section 2.2(a), this
section 4.2 will apply as if the surviving spouse were the Participant.

 

Section 5.  Definitions.

 

5.1         Designated Beneficiary.  The
individual who is the designated Beneficiary, as such term is defined under
section 2.01 of the Plan, and is the designated Beneficiary under section
401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of
the Treasury regulations.

 

5.2         Distribution calendar year.  A
calendar year for which a minimum distribution is required.  For distributions beginning before the
Participant’s death, the first distribution calendar year is the calendar year
immediately preceding the calendar year which contains the Participant’s
Required Beginning Date.  For
distributions beginning after the Participant’s death, the first distribution
calendar year is the calendar year in which distributions are required to begin
under section 2.2.  The required minimum
distribution for the Participant’s first distribution calendar year will be
made on or before the Participant’s Required Beginning Date.  The required minimum distribution for other
distribution calendar years, including the required minimum distribution for
the distribution calendar year in which the Participant’s Required Beginning
Date occurs, will be made on or before December 31 of that distribution
calendar year.

 

5.3         Life expectancy.  Life
expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9
of the Treasury regulations.

 

5.4         Participant’s account balance. 
The account balance as of the last valuation date in the calendar year
immediately preceding the distribution calendar year (valuation calendar year)
increased by the amount of any contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation calendar year
after the valuation date and decreased by distributions made in the valuation
calendar year after the valuation date. 
The account balance for the valuation calendar year includes any amounts
rolled over or transferred to the Plan either in the valuation calendar year or
in the distribution calendar year if distributed or transferred in the
valuation calendar year.

 

5.5         Required Beginning Date.  The
Required Beginning Date, as such term is defined in section 2.01 of the Plan.

 

Section 6.  Elections.

 

(a)  Participants or
Beneficiaries May Elect 5-Year Rule. 
Participants or Beneficiaries may elect on an individual basis whether
the 5-year rule or the life expectancy rule in sections 2.2 and 4.2 of this
addendum applies to distributions after the death of a Participant who has a
designated Beneficiary.  The election
must be made no later than the earlier of September 30 of the calendar year in
which distribution would be required to begin under section 2.2 of this
addendum, or by September 30 of the calendar year which contains the fifth
anniversary of the Participant’s (or, if applicable, the surviving spouse’s)
death.  If neither the Participant nor
the Beneficiary makes an election under this section 6, distributions will be
made in accordance with sections 2.2 and 4.2 of this addendum.

 

(b)  Designated Beneficiary
Receiving Distributions Under 5-Year Rule May Elect Life Expectancy
Distributions.  A

 

3

 

designated Beneficiary who is receiving payments under the 5-year rule
may make a new election to receive payments under the life expectancy rule
until December 31, 2003, provided that all amounts that would have been required
to be distributed under the life expectancy rule for all distribution calendar
years before 2004 are distributed by the earlier of December 31, 2003 or the
end of the 5-year period.

 

4

 

The CORPORATEplan for RetirementSM

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001
(“EGTRRA”)

Second Amendment for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

Adoption and Effective Date of Amendment.  This amendment of the Plan is adopted to reflect
certain provisions of the Economic Growth and Tax Relief Reconciliation Act of
2001 (“EGTRRA”). This amendment is intended as good faith compliance with the
requirements of EGTRRA and is to be construed in accordance with EGTRRA and
guidance issued thereunder.  This
amendment shall be effective December 1, 2003.

 

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

 

The following paragraph is hereby added to
the end of Section 16.04:

Notwithstanding
anything in the Basic Plan Document or Adoption Agreement (including addenda
thereto) to the contrary, to the extent permitted by any regulation or other
guidance under the Code, forms of payment may be eliminated without the
application of a waiting period and without prior notice to Participants
effective with respect to Participants whose Annuity Starting Dates occur on or
after the date the Plan amendment eliminating such forms of payment is adopted;
provided, however, that to the extent any regulation or other guidance under
the Code requires prior notice to Participants as a precondition to the
elimination of any form of payment or imposes any other requirement on such elimination,
no such elimination shall be effective unless the Plan Administrator has
complied with such notice or other requirement.

 

1Exhibit
10.5

 

THE
CORPORATEPLAN 

FOR RETIREMENTSM

 

(PROFIT
SHARING/401(K) PLAN)

 

A FIDELITY
PROTOTYPE PLAN

 

Non-Standardized
Adoption Agreement No. 001

For use With

Fidelity
Basic Plan Document No. 02

 

 

	
  Plan
  Number: 47851

  	
   

  
	
  The
  CORPORATEplan for RetirementSM

  	
  Non-Std PS Plan

  
	
   

  	
  12/05/2001

  
	
  © 2001 FMR Corp.

  
	
  All rights reserved.

  

 

 

ADOPTION
AGREEMENT

ARTICLE 1

NON-STANDARDIZED
PROFIT SHARING/401(K) PLAN

 

1.01        PLAN INFORMATION

 

(a)           Name of
Plan:

 

This is the Nektar Therapeutics 401(k) Plan (the “Plan”)

 

(b)           Type of
Plan:

 

(1)           o            401(k) Only

 

(2)           ý            401(k) and Profit Sharing

 

(3)           o            Profit Sharing Only

 

(c)           Administrator
Name (if not the Employer):

 

	
   

  
	
    Address:

  	
   

  
	
   

  	
   

  
	
    Telephone
  Number:

  	
   

  

 

The Administrator is the agent for service of legal process for the
Plan.

 

(d)           Plan Year
End  (month/day):             12/31

 

(e)           Three Digit
Plan Number:                001

 

(f)            Limitation Year  (check one):

 

(1)           o            Calendar Year

 

(2)           ý            Plan Year

 

(3)           o            Other: 
                                 

 

(g)           Plan Status  (check appropriate box(es)):

 

(1)           o            New Plan Effective Date: 
                                      

 

(2)           ý            Amendment Effective Date:               08/01/2003

 

This is (check one):

 

 

AMENDMENT
EXECUTION PAGE

 

This page is to be completed in the event the Employer modifies any
prior election(s) or makes a new election(s) in this Adoption Agreement. Attach
the amended page(s) of the Adoption Agreement to this execution page.

 

The following section(s) of the Plan are hereby amended effective as of
the date(s) set forth below:

 

	
  Section Amended

  	
   

  	
  Page

  	
   

  	
  Effective Date

  
	
  Vesting
  Addendum

  	
   

  	
  Page
  36

  	
   

  	
  08/01/2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, the Employer has caused this Amendment to be
executed this 17th  day
of July, 2003.

 

 

	
  Employer:

  	
  Nektar
  Therapeutics

  	
   

  	
  Employer:

  	
  Nektar
  Therapeutics

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  John D. Wilson

  	
   

  	
  By:

  	
  /s/ Carolyn Heran

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Director,
  Compensation and Benefits

  	
   

  	
  Title:

  	
  Director of Human
  Resourses

  	
   

  

 

 

Accepted
by:

 

	
  Fidelity
  Management Trust Company, as Trustee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joan M. Berning

  	
   

  	
   

  	
  Date:

  	
  8/1/03

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Joan M. Berning

  Authorized Signatory

  	
   

  	
   

  	
   

  	
   

  
								

 

 

ADDENDUM

 

Re: VESTING
SCHEDULE

for

 

Plan Name:           Nektar
Therapeutics 401(k) Plan

 

(a)           More Favorable Vesting Schedule

 

(1)           The
following vesting schedule applies to the class of Participants described
in (a)(2) below:

 

3 Year Graded schedule 0-1 Year 0%, 1-2 33%, 2-3 66%, 3-4 100%.

 

 

(2)           The
vesting schedule specified in (a)(1) above
applies to the following class of Participants:

 

Participants who were Active on or after 03/01/2003 with the Shearwater
Polymer, Inc. Merger will receive the vesting in (a) 1  for all Prior Match

 

 

(b)           ý            Additional
Vesting Schedule

 

(1)           The
following vesting schedule applies to the class of Participants described
in (b)(2) below:

 

6 year Graded 0-1 0%, 1-2 0%, 2-3 20%, 3-4 40%, 4-5 60%, 5-6 80%, 6-7
100%.

 

 

(2)           The
vesting schedule specified in (b)(1) above
applies to the following class of Participants:

 

Participants who were terminated before 03/01/2003 with the Shearwater
Polymer, Inc. Merger will receive the vesting in (b) (1) above for all Prior
Match.

 

 

Nektar
Therapeutics 401(k) Plan

 

The
CORPORATEplan for RetirementSM

Service Agreement

 

 

	
  V4.9 (01/2003)

  	
  CPR Service Agreement

  7/17/03

  
	
   

  	
   

  	
  ©
  2002 Fidelity Management & Research Company

  	
   

  	
   

  
						

 

 

EXECUTION PAGE (FIDELITY’S COPY)

 

This
Agreement shall be effective upon execution by both parties. By executing this
Agreement, the parties agree to terms and conditions contained in the Agreement
and the following attached Appendices:

 

	
  Service
  Agreement

  	
   

  	
  Original

  Effective Date

  	
   

  	
  Revision Date(s)

  	
   

  
	
  Articles
  I and II

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  
	
  Appendix
  A - Investment Schedule and Services

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  
	
  Appendix
  B - Enrollment and Education Services

  	
   

  	
  11/01/2000

  	
   

  	
  08/01/2003

  	
   

  
	
  Appendix
  C - Contribution Processing Services

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  
	
  Appendix
  D - Loan and Withdrawal Services

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  
	
  Appendix
  E - Compliance Services

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  
	
  Appendix
  F - Miscellaneous Additional Services

  	
   

  	
  11/01/2000

  	
   

  	
   

  	
   

  

 

In witness whereof, the parties hereto have caused
this Agreement to be executed by their duly authorized officers.

 

	
  Employer:

  	
   

  	
  Employer:

  
	
   

  	
   

  	
   

  
	
  /s/ John D. Wilson

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
  John D. Wilson

  	
   

  	
   

  
	
  (Print
  Name)

  	
   

  	
  (Print
  Name)

  
	
   

  	
   

  	
   

  
	
  Director, Compensation and Benefits

  	
   

  	
   

  
	
  (Title)

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
  July 17, 2003

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Date)

  

 

Note:      Only one authorized signature is required to execute this Agreement
unless the Employer’s corporate policy mandates two authorized signatures.

 

	
  Fidelity Management Trust Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Linda A. Scherer

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Linda A. Scherer

  	
   

  	
   

  
	
  (Print
  Name)

  	
  Authorized Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Title)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  07/28/2003

  	
   

  	
   

  
	
  (Date)

  	
   

  	
   

  

 

1

 

APPENDIX B - ENROLLMENT AND EDUCATION SERVICES

 

Fidelity shall provide
Enrollment and Education Services as outlined in this Appendix B.  Consultation with a Fidelity Education
Consultant is available to identify additional needs in the future.

 

1.     Initial Enrollment &
Education Services

 

•      Enrollment kits for eligible employees

•      Enrollment posters

•      Information inserts

•      Interactive worksheets

 

Initial Enrollment and Education Services paid by:  Employer

 

2.     Ongoing Enrollment and
Educational Services provided at no additional charge

 

•      Enrollment Kits for newly eligible
Participants

•      Ongoing Educational Literature

•      Retirement Benefits Line

•      Stages Magazines

•      Stages Program for Retirees, Pre-retirees and
Job Changers

•      NetBenefits Internet Service

•      Unless
the Employer specifically directs Fidelity otherwise in writing, Plan
Participants will be provided educational and informational materials about
integrated Fidelity investment opportunities through the Fidelity Employee
Investment Services program.

•      Participant
Statements:

Fidelity will mail Participant statements directly to Participants’
homes except for individual Participants who have indicated through Automated
Channels (Fidelity Automated Retirement Benefits Line, NetBenefitsSM World Wide Web Internet service, or any other service subsequently
employed by Fidelity to facilitate electronic plan administration) that they
desire to receive statements only through Automated channels.

 

Notwithstanding any of the above, a Participant will always have the
ability to request a written statement at least as frequently as legally
required.

 

•      Unless the Plan
Administrator directs otherwise in writing, Fidelity will process address
changes for Plan participants who have separated from service with the
Employer, as indicated by the appropriate system status code, as requested by
those participants through Fidelity’s Automated Channels. The Employer is
responsible for updating the status codes, applicable dates, and other
appropriate information for participants via PSW, or other agreed upon
transmission.  Fidelity agrees to send a
confirmation statement listing the participants’ previous and current addresses
to both such addresses for Plan participants changing address through
Fidelity’s Automated Channels. The Employer agrees that a participant changing
address through Fidelity’s Automated Channels will not be able to request a withdrawal
or distribution from his or her Plan account for a period of 15 calendar days
after an address change is processed. 
The Employer understands that Fidelity will not send the employer any
record of each such change made through Fidelity’s Automated Channels, but that
the Employer may request a report from PSW showing the most recent address of
every participant.

 

•      In the event that Fidelity, or any of its
affiliates, provides tools or services that estimate the initial

 

3

 

eligible entry date for Employees based on Plan design and assumed achievement
of some Plan eligibility variables, Fidelity does not represent, warrant,
guarantee or certify that such estimates are accurate. The Employer agrees that
Fidelity has no responsibility for any such estimates.

 

•      Fidelity
may from time to time produce communication materials and forms that the
Employer may use regarding the Plan.  The
Employer acknowledges that it is solely responsible for any such communication
materials and/or forms, or modification thereof, ultimately distributed or
otherwise used in connection with the Plan.

 

3.     Enrollment and Educational
Services available for additional charge

 

•      Additional
Employee Education Meetings

•      Additional
Enrollment Kits for existing Participants

•      Meeting
Leader Workshop with customized plan video

•      Automated
Enrollments

•      Ongoing
Automated Enrollments and Deferral Changes

 

Annual fee per Plan:                                                                                                                                    Fee
Waived

                                                                                                                                             Fee
Paid By:

 

Annual fee per Participant:                                                                                                                         Fee
Waived

                                                                                                                                             Fee
Paid By:

 

Fidelity shall provide Automated Enrollments in accordance with and
subject to the terms and conditions of this Section:

 

a.     The Employer shall provide Fidelity with the following Participant data
in an acceptable format prior to the date Employees become eligible to
participate in the Plan:  name, address,
social security number, date of birth, date of hire, date of participation,
date of termination, and employment status code.  Failure to provide timely, complete, and
accurate data shall delay Participants’ ability to make investment elections
and pre-tax and after-tax (if applicable) contribution elections.

 

b.     The Employer shall be responsible for mailing enrollment packets to
Participants, including a worksheet for Automated Enrollment.

 

c.     Participants shall be eligible to communicate their initial investment
elections and pre-tax and after-tax (if applicable) contribution elections by
the Fidelity Automated Retirement Benefits Line or Net BenefitsSM
(or any other service subsequently employed by Fidelity to facilitate
electronic plan administration, hereafter NetBenefits) virtually 24 hours a
day.  Participants shall direct the
investment of their future contributions. Investment elections shall not apply
to employees making rollover contributions as they must complete a Rollover
Contribution Form to indicate their investment elections.

 

d.     Participants who fail to use the Fidelity Automated Retirement Benefits
Line or NetBenefits to establish their investment elections shall have their
future contributions invested in the default investment option identified in
Article II, Section 5 of this Service Agreement, unless designated
otherwise pursuant to Article II, Section 4 of this Service
Agreement. Participants shall have the opportunity to change the investment
direction of their future contributions, and their pre-tax and after tax (if
applicable) contribution 

 

4

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