Document:

exv10w1

 

Exhibit 10.1

 

Manugistics Group, Inc.

Employee Stock Purchase Plan

	 	 	 
	Purpose

	 	The Manugistics Group, Inc. Employee Stock Purchase Plan (the
“ESPP” or the “Plan”) provides employees of Manugistics Group,
Inc. (the “Company”) and its Eligible Subsidiaries with an
opportunity to become owners of the Company through purchasing shares
of the Company’s common stock (the “Common Stock”).
The Company intends this Plan to qualify as an employee stock
purchase plan under Section 423 of the Internal Revenue Code
of 1986, as amended (the “Code”), and its terms should be
construed accordingly. The Plan is effective as of August 1,
2004.
	 
	 	 
	Eligibility

	 	An Employee whom the Company or an Eligible Subsidiary employs
as of the first day of a Payroll Deduction Period (and has
employed for such prior waiting period, initially set at 90
days, as the Committee determines) is eligible to participate
in the ESPP for that Payroll Deduction Period. However, an
Employee may not make a purchase under the ESPP if such
purchase would result in the Employee’s owning Common Stock
possessing 5% or more of the total combined voting power or
value of the Company’s outstanding stock. In determining an
individual’s amount of stock ownership, any options to acquire
shares of Company Common Stock are counted as shares of stock,
and the attribution rules of Section 424(d) of the Code apply.
	 
	 	 
	

	 	“Employee” means any person employed as a common law
employee of the Company or an Eligible Subsidiary.
Employee excludes anyone who, with respect to any
particular period of time, was not treated initially on
the payroll records as a common law employee, unless the
Committee determines that including the person is
necessary to preserve tax treatment.
	 
	 	 
	Administrator

	 	A committee of the Board of Directors (the “Board”) of the
Company, (the “Committee”), will administer the ESPP. The Committee is
vested with full authority and discretion to make, administer, and
interpret such rules and regulations as it deems necessary to administer
the ESPP (including rules and regulations considered necessary in order to
comply with the requirements of section 423 of the Code). Any
determination or action of the Committee in connection with administering
or interpreting the ESPP will be final and binding upon each Employee,
Participant, and all persons claiming under or through any Employee or
Participant.
	 
	 	 
	

	 	Without shareholder consent and without regard to whether
the actions might adversely affect Participants, the
Committee (or the Board) may
	 
	 	 
	

	 	establish and change the Payroll Deduction Periods,
	 
	

	 	limit or increase the frequency and/or number of changes
in the amounts withheld during a Payroll Deduction Period,
	 
	 	 
	

	 	establish the exchange ratio applicable to amounts
withheld in a currency other than U.S. dollars,
	 
	 	 
	

	 	lengthen or shorten the waiting period before an Employee
becomes eligible to participate, so long as the change
applies uniformly,
	 
	 	 
	

	 	permit payroll withholding in excess of the amount the
Participant designated to adjust for delays or mistakes in
the Company’s processing of properly completed withholding
elections,
	 
	 	 
	

	 	specify a smaller discount to the Fair Market Value (i.e.
a higher Purchase Price) to apply in connection with a
shortened period during which Participants are required to
hold the shares after purchase;
	 
	 	 
	

	 	establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts
applied toward the purchase of Common Stock for each
Participant properly correspond with amounts withheld from
the Participant’s Compensation,

1

 

	 	 	 
	

	 	delegate its functions (other than those with respect to
setting Payroll Deduction Periods or determining the price
of stock and the number of shares to be offered under the
Plan) to officers or employees of the Company, and
	 
	 	 
	

	 	establish such other limitations or procedures as it
determines in its sole discretion advisable and consistent
with the Plan.
	 
	 	 
	

	 	The Committee may also increase the price provided in Step
2 under Granting of Options (by decreasing the discount
and/or by designating that the price is determined as of
either the beginning or the ending date of a Payroll
Deduction Period or the higher of both rather than as of
the lower) for Payroll Deduction Periods beginning after
Committee action.
	 
	 	 
	Payroll

	 	Payroll Deduction Periods are the periods during which the Deduction
Company collects payroll deductions for a particular purchase.
	 
	 	 
	Period

	 	Unless the Committee specifies otherwise, the Payroll Deduction Periods will be successive fiscal quarters
beginning September 1, December 1, March 1, and June 1, with the first such Period beginning when the Committee
determines it should begin.
	 
	 	 
	Participation

	 	An eligible Employee may become a “Participant” for a Payroll Deduction Period by completing an authorization
notice and delivering it to the Committee through the Company’s Human Resources professionals within a reasonable
period of time before the first day of such Payroll Deduction Period. All Participants receiving options under
the ESPP will have the same rights and privileges.
	 
	 	 
	Method

	 	A Participant may contribute to the ESPP solely through payroll deductions as follows:
	of Payment
	 	 
	 
	 	 
	

	 	The Participant must elect on an authorization notice or
other required documentation to have deductions made from
his Compensation for each payroll period during the
Payroll Deduction Period at or above a minimum percentage
and under terms the Committee determines. Payroll
deductions will be at a rate from 1% to 10% of
Compensation. Compensation under the Plan means an
Employee’s regular compensation, including overtime, shift
premiums, bonuses, and commissions (but expressly
excluding income from stock options or other noncash
compensation), from the Company or an Eligible Subsidiary
paid during a Payroll Deduction Period.

All payroll deductions will be credited to the
Participant’s account under the ESPP. No interest will
accrue on the account.
	 
	 	 
	

	 	Payroll deductions will begin on the first payday
coinciding with or following the first day of each Payroll
Deduction Period and will end with the last payday
preceding or coinciding with the end of that Payroll
Deduction Period, unless the Participant sooner withdraws
as authorized under Withdrawals below.
	 
	 	 
	

	 	A Participant may not alter the rate of payroll deductions
during the Payroll Deduction Period.
	 
	 	 
	

	 	The Company may use the consideration it receives for
general corporate purposes.
	 
	 	 
	Granting of
Options

	 	On the first day of each Payroll Deduction Period, a
Participant will receive options to purchase a
number of shares of Common Stock with funds withheld from his
or her Compensation. Such number of shares will be determined
at the end of the Payroll Deduction Period according to the
following procedure:

Step 1 — Determine the amount the Company withheld
from Compensation since the beginning of the Payroll
Deduction Period;

Step 2 — Determine the “Purchase Price” to be the
Fair Market Value, provided that, before a Payroll
Deduction Period begins, the Committee can decrease
the price to an amount that represents at least 85%
of the lower of the Fair Market Value of a share of
Common Stock on the first day of the Payroll
Deduction Period and the last day of the Payroll
Deduction Period; and

2

 

Step 3 — Divide the amount determined in Step 1 by
the amount determined in Step 2.

Any amounts in Step 3 not used to purchase whole
shares will be carried forward to the next Payment
Deduction Period, unless the Committee decides
instead to have such amounts refunded to the
Participant.

	 	 	 
	Fair Market

Value

	 	The Fair Market Value of a share of Common Stock for purposes
of the Plan as of each date described in Step 2 will be determined as follows:

while the Common Stock trades on a national
securities exchange, the average of the high and low
market prices as reported on NASDAQ National Market
System on a given trading day;

if the Common Stock does not trade on any such
exchange, the closing sale price as reported by the
National Association of Securities Dealers, Inc.
Automated Quotation System (“Nasdaq”) for such date;

if no such closing sale price information is
available, the average of the closing bid and asked
prices that Nasdaq reports for such date;

if there are no such closing bid and asked prices,
the average of the closing bid and asked prices as
reported by any other commercial service for such
date; or

if the Company has no publicly-traded stock, the
Committee will determine the Fair Market Value for
purposes of the Plan using any measure of value it
determines in good faith to be appropriate;

	 	 	 
	

	 	For any date described in Step 2, the Fair Market Value of
a share of Common Stock for such date will be determined
by using the pricing method described above for the
immediately preceding trading day. The Committee can
substitute a particular time of day or other measure of
“closing sale price” or “bid and asked prices” if
appropriate because of changes in exchange or market
procedures.
	 
	 	 
	

	 	The Committee has sole discretion to determine the Fair
Market Value for purposes of this Plan, and all
participation is conditioned on the Participant’s
agreement that the Committee’s determination is conclusive
and binding even though others might make a different and
also reasonable determination.
	 
	 	 
	

	 	No Participant can receive options:

if, immediately after the grant, that Participant
would own shares, or hold outstanding options to
purchase shares, or both, possessing 5% or more of
the total combined voting power or value of all
classes of shares of the Company or any Subsidiaries
(as defined below); or

that permit the Participant to purchase shares under
all employee stock purchase plans of the Company and
any Subsidiary with a Fair Market Value (determined
at the time the options are granted) that exceeds
$25,000 in any calendar year.

	 	 	 
	Exercise
of Option

	 	Unless a Participant effects a timely withdrawal under the Withdrawal paragraph below, his
option for the purchase of shares of Common Stock during a Payroll Deduction Period will be automatically exercised
as of the last day of the Payroll Deduction Period for the purchase of the maximum number of shares (including, if
the Committee so provides, fractional shares) that the sum of the payroll deductions credited to the Participant’s
account during such Payroll Deduction Period can purchase under the formula specified in Granting of Options.
	 
	 	 
	Delivery of
Common

	 	As soon as administratively feasible after the options are used to purchase Common Stock, the
Company will credit to each Participant or, in the alternative, to an agent or custodian that the

3

 

	 	 	 
	Stock

	 	Committee designates, the shares of Common Stock the Participant purchased upon the exercise of the option. If
delivered to an agent or custodian, the agent or custodian may hold the shares in nominee name and may commingle
shares held in its custody in a single account or stock certificate without identification as to individual
Participants. The Committee may require that the specified agent or custodian hold the shares of Common Stock for a
minimum period of time after receipt (including through and beyond the Participant’s active employment) and
reinvest any dividends received in additional shares of Common Stock. Unless the Committee determines otherwise,
Participants who are holding shares and any persons to whom they transfer part or all of their shares other than by
sale must retain those shares with a Company specified broker or agent until the second anniversary of the first
day of the Payroll Deduction Period in which they bought the shares (or, if priced on the last day of the Payroll
Deduction Period, the second anniversary of that date). Unless the Committee determines otherwise, a Participant
may sell the shares despite the foregoing restriction but may not transfer them to another broker until the
foregoing two year period (the “Account Restriction Period”) ends. The Committee may, in its discretion, establish
a program for cashless sales of Common Stock received under the ESPP.
	 
	 	 
	Subsequent

Offerings

	 	A Participant will be deemed to have elected to participate in each subsequent Payroll Deduction
Period following his initial election to participate in the ESPP, unless the Participant files a written withdrawal
notice with the Human Resources Department at corporate headquarters (or such other recipient as the Department
designates) at least 10 days before the beginning of the Payroll Deduction Period as of which the Participant
desires to withdraw from the ESPP.
	 
	 	 
	Withdrawal

from the

Plan

	 	A Participant may withdraw all, but not less than all, payroll deductions credited to his account for
a Payroll Deduction Period before the end of such Payroll Deduction Period by delivering a
written notice to the Human Resources Department or its designee on behalf of the Committee at least 40 days before
the end of such Payroll Deduction Period (or by such other deadline as the Committee determines). A Participant
who for any reason, including retirement, termination of employment, or death, ceases to be an Employee before the
last day of any Payroll Deduction Period will be deemed to have withdrawn from the ESPP as of the date of such
cessation, unless the Committee establishes other procedures.
	 
	 	 
	

	 	When a Participant withdraws from the ESPP, his or her
outstanding options under the ESPP will immediately
terminate.
	 
	 	 
	

	 	Unless the Committee determines otherwise, if a
Participant withdraws from the ESPP for any reason, the
Company will pay to the Participant all payroll deductions
credited to his account or, in the event of death, to the
persons designated as provided in Designation of
Beneficiary, as soon as administratively feasible after
the date of such withdrawal and no further deductions will
be made from the Participant’s Compensation.
	 
	 	 
	

	 	A Participant who has elected to withdraw from the ESPP
may resume participation in the same manner and under the
same rules as any Employee making an initial election to
participate in the ESPP (i.e., he may elect to participate
in the next following Payroll Deduction Period so long as
he or she files the authorization form by the deadline for
that Payroll Deduction Period).
	 
	 	 
	Stock Subject

To Plan

	 	The shares of Common Stock that the Company will sell to Participants under the ESPP will be
shares of authorized but unissued Common Stock, shares held as treasury stock, and shares purchased on the
market. The maximum number of shares made available for sale under the ESPP will be 3,000,000
(with such number subject to the provisions in
Adjustments upon Changes in Capital Stock below). If the total number of shares for which options are to be
exercised in a Payroll Deduction Period exceeds the number of shares then available under the ESPP, the Company
will make, so far as is practicable, a pro rata allocation of the shares available and will, within 30 days
following the end of that Payroll Deduction Period, refund any additional payroll deductions to the applicable
Participants.
	 
	 	 
	

	 	A Participant will have no interest in shares covered by
his participation until the last day of the applicable
Payroll Deduction Period.

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	 	 	After the end of the Account Restriction Period, shares
that a Participant purchases under the ESPP will be
registered in the name of the Participant or, at the
Participant’s election, in street name or will otherwise
be recognized as owned by the Participant on the Company’s
stock ledger.
	 
	 	 	 	 
	Adjustments

Upon Changes

in Capital Stock	 	Subject to any required action by the Company (which it will promptly take) or its stockholders,
and subject to the provisions of applicable corporate law, if, during a Payroll Deduction Period,
	

	 	 	 	the outstanding shares of Common Stock increase or
decrease or change into or are exchanged for a
different number or kind of security because of any
recapitalization, reclassification, stock split,
reverse stock split, combination of shares, exchange
of shares, stock dividend, or other distribution
payable in capital stock, or
	 
	 	 	 	 
	

	 	 	 	some other increase or decrease in such Common Stock
occurs without the Company’s receiving consideration
(excluding, unless the Committee determines
otherwise, stock repurchases),
	 
	 	 	 	 
	 	 	the Committee must make a proportionate and appropriate
adjustment in the number of shares of Common Stock
underlying the options, so that the proportionate interest
of the Participant immediately following such event will,
to the extent practicable, be the same as immediately
before such event. Any such adjustment to the options
will not change the total price with respect to shares of
Common Stock underlying the Participant’s election but
will include a corresponding proportionate adjustment in
the price of the Common Stock, to the extent consistent
with Section 424 of the Code.
	 
	 	 	 	 
	 	 	The Board or the Committee may take any actions described
in the Adjustments upon Changes in Capital Stock section
without any requirement to seek optionee consent.
	 
	 	 	 	 
	 	 	The Committee will make a commensurate change to the
maximum number and kind of shares provided in the Stock Subject to Plan section.
	 
	 	 	 	 
	 	 	Any issue by the Company of any class of preferred stock,
or securities convertible into shares of common or
preferred stock of any class, will not affect, and no
adjustment by reason thereof will be made with respect to,
the number of shares of Common Stock subject to any
options or the price to be paid for stock except as this
Adjustments section specifically provides. The grant of
an option under the Plan will not affect in any way the
right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its
capital or business structure, or to merge or to
consolidate, or to dissolve, liquidate, sell, or transfer
all or any part of its business or assets.
	 
	 	 	 	 
	Substantial

Corporate

Change	 	Upon a Substantial Corporate Change, the Plan and the offering will terminate and all
accumulated funds will be distributed as though the Participants had elected to withdraw unless
provision is made in writing in connection with such transaction for
	 
	 	 	 	 
	

	 	 	 	the assumption or continuation of outstanding
elections, or
	 
	 	 	 	 
	

	 	 	 	the substitution for such options or grants of any
options covering the stock or securities of a
successor employer corporation, or a parent or
subsidiary of such successor, with appropriate
adjustments as to the number and kind of shares of
stock and prices, in which event the options will
continue in the manner and under the terms so
provided.
	 
	 	 	 	 
	 	 	A Substantial Corporate Change means the
	 
	 	 	 	 
	

	 	 	 	sale of all or substantially all of the assets of the
Company to one or more individuals, entities, or
groups (other than an “Excluded Owner” as defined
below),
	 
	 	 	 	 
	

	 	 	 	complete or substantially complete dissolution or
liquidation of the Company;
	 
	 	 	 	 
	

	 	 	 	a person, entity, or group (other than an Excluded
Owner) acquires or attains ownership of 80% of the
undiluted total voting power of the Company’s
then-outstanding securities eligible to vote to elect
members of the Board (“Company Voting Securities”);

5

 

	 	 	 	 	 
	

	 	 	 	completion of a merger, consolidation or
reorganization of the Company with or into any other
entity (other than an Excluded Owner) unless the
holders of the Company Voting Securities outstanding
immediately before such completion, together with any
trustee or other fiduciary holding securities under a
Company benefit plan, hold securities that represent
immediately after such merger or consolidation more
than 20% of the combined voting power of the then
outstanding voting securities of either the Company
or the other surviving entity or its ultimate parent,
or
	 
	 	 	 	 
	

	 	 	 	any other transaction (including a merger or
reorganization in which the Company survives)
approved by the Board that results in any person or
entity (other than an Excluded Owner) owning 100% of
Company Voting Securities.
	 
	 	 	 	 
	 	 	An “Excluded Owner” consists of the Company, any Company
Subsidiary, any Company benefit plan, or any underwriter
temporarily holding securities for an offering of such
securities.
	 
	 	 	 	 
	Designation of

Beneficiary	 	A Participant may file with the Committee a written
designation of a beneficiary who is to receive
any payroll deductions credited to the Participant’s
account under the ESPP or any shares of Common Stock owed
to the Participant under the ESPP if the Participant dies.
A Participant may change a beneficiary at any time by
filing a notice in writing with the Human Resources
professionals on behalf of the Committee.
	 
	 	 	 	 
	 	 	Upon the death of a Participant and upon receipt by the
Committee of proof of the identity and existence of the
Participant’s designated beneficiary, the Company will
deliver such cash or shares, or both, to the beneficiary.
If a Participant dies and is not survived by a beneficiary
that the Participant designated in accordance with the
immediate preceding paragraph, the Company will deliver
such cash or shares, or both, to the personal
representative of the estate of the deceased Participant.
If, to the knowledge of the Committee, no personal
representative has been appointed within 90 days following
the date of the Participant’s death, the Committee, in its
discretion, may direct the Company to deliver such cash or
shares, or both, to the surviving spouse of the deceased
Participant, or to any one or more dependents or relatives
of the deceased Participant, or if no spouse, dependent,
or relative is known to the Committee, then to such other
person as the Committee may designate.
	 
	 	 	 	 
	 	 	No designated beneficiary may acquire any interest in such
cash or shares before the death of the Participant.
	 
	 	 	 	 
	Subsidiary

Employees	 	Employees of Eligible Subsidiaries will be entitled to participate in the ESPP, except as the
Committee otherwise designates.
	 
	 	 	 	 
	 	 	Eligible Subsidiary means each of the Company’s
Subsidiaries, except as the Board or Committee otherwise
specifies. Subsidiary means any corporation (other than
the Company) in an unbroken chain of corporations
including the Company if, at the time an option is granted
to a Participant under the ESPP, each of the corporations
(other than the last corporation in the unbroken chain)
owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other
corporations in such chain. Subsidiary includes any
single member limited liability company with its corporate
member in the foregoing chain.
	 
	 	 	 	 
	Transfers,

Assignments,

and Pledges	 	A Participant may not assign, pledge, or otherwise dispose of payroll deductions credited to the
Participant’s account or any rights to exercise an option or to receive shares of Common Stock
under the ESPP other than by will or the laws of descent and distribution or under a qualified domestic
relations order, as defined in the Employee Retirement Income Security Act. Any other attempted assignment,
pledge or other disposition will be without effect, except that the Company may treat such act as an election
to withdraw under the Withdrawal section.
	 
	 	 	 	 
	Amendment or

Termination of

Plan	 	The Board of Directors of the Company or the Committee may at any time terminate or amend the
ESPP, whether during or at the end of any Payroll Deduction Period, without the consent of any
Participant. Any amendment of the ESPP that (i) materially increases the benefits to Participants, (ii)
materially increases the number of securities that may be issued under the ESPP, or (iii) materially modifies
the eligibility requirements for participation in the ESPP must be approved by

6

 

	 	 	 
	

	 	the shareholders of the Company
to take effect. The Company will refund to each Participant the amount of payroll deductions credited to his
account as of the date of termination as soon as administratively feasible following the effective date of the
termination.
	 
	 	 
	Effect on

Other Plans

	 	Whether exercising or receiving an option causes the Participant to accrue or receive additional
benefits under any pension or other plan is governed solely by the terms of such other plan.
	 
	 	 
	Notices

	 	All notices or other communications by a Participant to the Committee or the Company will be considered to
have been duly given when the Human Resources Department or local Human Resources professionals of the Company
receive them or when any other person or entity the Company designates receives the notice or other
communication in the form the Company specifies.
	 
	 	 
	General Assets

	 	Any amounts the Company invests or otherwise sets aside or segregates to satisfy its obligations under this
ESPP will be solely the Company’s property (except as otherwise required by Federal or state wage laws), and
the optionee’s claim against the Company under the ESPP, if any, will be only as a general creditor. The
optionee will have no right, title, or interest whatever in or to any investments that the Company may make to
aid it in meeting its obligations under the ESPP. Nothing contained in the ESPP, and no action taken under
its provisions, will create or be construed to create an implied or constructive trust of any kind or a
fiduciary relationship between the Company and any Employee, Participant, former Employee, former Participant,
or any beneficiary.
	 
	 	 
	Privileges of
Stock Ownership

	 	No Participant and no beneficiary
or other person claiming under

or through such Participant will have any right, title, or interest in or to any shares of Common Stock
allocated or reserved under the Plan except as to such shares of Common Stock, if any, that have been issued
to such Participant.
	 
	 	 
	Tax Withholding

	 	To the extent that a Participant realizes ordinary income or wages for employment tax purposes in connection
with a sale or other transfer of any shares of Common Stock purchased under the Plan or the crediting of
interest to an account, the Company may withhold amounts needed to cover such taxes from any payments
otherwise due to the Participant. Any Participant who sells or otherwise transfers shares purchased under the
Plan within two years after the beginning of the Payroll Deduction Period in which he purchased the shares
must, within 30 days of such transfer, notify the Company’s Payroll Department in writing of such transfer.
Each Participant, as a condition of participation, agrees that the Company may treat the purchase of shares
and/or their disposition as taxable events requiring the withholding or other collection of income and
employment taxes and further agrees to pay any such taxes for which the Company cannot reasonably withhold.
	 
	 	 
	Limitations on

Liability

	 	Notwithstanding any other provisions of the ESPP, no individual acting as a director, employee, or
agent of the Company shall be liable to any Employee, Participant, former Employee, former Participant, or any
spouse or beneficiary for any claim, loss, liability, or expense incurred in connection with the ESPP, nor
shall such individual be personally liable because of any contract or other instrument he executes in such
other capacity. The Company will indemnify and hold harmless each director, employee, or agent of the Company
to whom any duty or power relating to the administration or interpretation of the ESPP has been or will be
delegated, against any cost or expense (including attorneys’ fees) or liability (including any sum paid in
settlement of a claim with the Board’s approval) arising out of any act or omission to act concerning this
ESPP unless arising out of such person’s own fraud or bad faith.
	 
	 	 
	No Employment

Contract

	 	Nothing contained in this Plan constitutes an employment contract between the Company or an
Eligible Subsidiary and any Employee. The ESPP does not give an Employee any right to be retained in the
Company’s employ, nor does it enlarge or diminish the Company’s right to terminate the Employee’s employment.
	 
	 	 
	Duration of ESPP

	 	Unless the Company’s Board extends the Plan’s term, no Payroll Deduction Period will end after May 31, 2014.

7

 

	 	 	 
	Applicable Law

	 	The laws of the State of Delaware (other than its choice of law provisions) govern the ESPP and its
interpretation.
	 
	 	 
	Legal Compliance

	 	The Company will not issue any shares of Common Stock under the Plan until the issuance satisfies all
applicable requirements imposed by Federal and state securities and other laws, rules, and regulations, and by
any applicable regulatory agencies or stock exchanges. To that end, the Company may require the optionee to
take any reasonable action to comply with such requirements before issuing such shares. No provision in the
Plan or action taken under it authorizes any action that Federal or state laws otherwise prohibit.
	 
	 	 
	

	 	The Plan is intended to conform to the extent necessary
with all provisions of the Securities Act of 1933, as
amended, (“Securities Act”) and the Securities Exchange
Act of 1934, as amended, and all regulations and rules the
Securities and Exchange Commission issues under those
laws, including specifically Rule 16b-3. Notwithstanding
anything in the Plan to the contrary, the Committee and
the Board must administer the Plan, and Participants may
purchase Common Stock, only in a way that conforms to such
laws, rules, and regulations. To the extent applicable
law permits, the Plan and any offers will be deemed
amended to the extent necessary to conform to such laws,
rules, and regulations.
	 
	 	 
	Approval of
Stockholders

	 	The ESPP must be submitted to the shareholders of the Company for their approval within 12
months after the Board adopts the ESPP. The adoption of the ESPP is conditioned upon the approval of the
shareholders of the Company, and failure to receive their approval will render the ESPP and any outstanding
options thereunder void and of no effect.

8exv4w5

 

EXHIBIT 4.5

ACS SAVINGS PLAN

(Amended and Restated effective July 1, 2004)

 

 

	 	 	 	 	 	 	 
	 
	 	TABLE OF CONTENTS	 	 	 	 
	 
	 
	 	PREAMBLE	 	 	 	 
	 
	 
	 	ARTICLE I	 	 	 	 
	 
	 	 DEFINITIONS	 	 	 	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	ADMINISTRATION	 	 	 	 
	2.1
	 	POWERS AND RESPONSIBILITIES OF THE EMPLOYER	 	 	15	 
	2.2
	 	DESIGNATION OF ADMINISTRATIVE AUTHORITY	 	 	15	 
	2.3
	 	POWERS AND DUTIES OF THE ADMINISTRATOR	 	 	16	 
	2.4
	 	RECORDS AND REPORTS	 	 	17	 
	2.5
	 	APPOINTMENT OF ADVISERS	 	 	17	 
	2.6
	 	PAYMENT OF EXPENSES	 	 	17	 
	2.7
	 	CLAIMS PROCEDURE	 	 	17	 
	2.8
	 	CLAIMS REVIEW PROCEDURE	 	 	18	 
	2.9
	 	CLAIMS REVIEW RELATING TO DISABILITY	 	 	18	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	ELIGIBILITY	 	 	 	 
	3.1
	 	CONDITIONS OF ELIGIBILITY	 	 	19	 
	3.2
	 	EFFECTIVE DATE OF PARTICIPATION	 	 	19	 
	3.3
	 	DETERMINATION OF ELIGIBILITY	 	 	20	 
	3.4
	 	TERMINATION OF ELIGIBILITY	 	 	20	 
	3.5
	 	INITIAL ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY MATCHING CONTRIBUTIONS	 	 	20	 
	3.6
	 	ENTRY DATE TO RECEIVE DISCRETIONARY MATCHING CONTRIBUTIONS	 	 	20	 
	3.7
	 	INITIAL ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY PROFIT SHARING CONTRIBUTIONS APPLICABLE TO CERTAIN EMPLOYEES DESIGNATED TO RECEIVE THE ACS STATE & LOCAL SOLUTIONS, INC. BENEFIT STRUCTURE	 	 	21	 
	3.8
	 	ENTRY DATE TO RECEIVE DISCRETIONARY PROFIT SHARING CONTRIBUTIONS APPLICABLE TO CERTAIN EMPLOYEES DESIGNATED TO RECEIVE THE ACS STATE & LOCAL SOLUTIONS, INC. BENEFIT STRUCTURE	 	 	21	 

i

 

	 	 	 	 	 	 	 
	3.9
	 	DEFINITIONS APPLICABLE IN DETERMINING SATISFACTION OF THE INITIAL ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY MATCHING CONTRIBUTIONS AND DISCRETIONARY PROFIT SHARING
CONTRIBUTIONS APPLICABLE TO CERTAIN EMPLOYEES DESIGNATED TO RECEIVE THE ACS STATE & LOCAL SOLUTIONS, INC. BENEFIT STRUCTURE	 	 	22	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	CONTRIBUTION AND ALLOCATION	 	 	 	 
	4.1
	 	FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION	 	 	23	 
	4.2
	 	PARTICIPANT’S PRE-TAX CONTRIBUTION ELECTION	 	 	23	 
	4.3
	 	TIME OF PAYMENT OF EMPLOYER CONTRIBUTION	 	 	26	 
	4.4
	 	ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS	 	 	26	 
	4.5
	 	ACTUAL DEFERRAL PERCENTAGE TESTS	 	 	29	 
	4.6
	 	ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS	 	 	32	 
	4.7
	 	ACTUAL CONTRIBUTION PERCENTAGE TESTS	 	 	34	 
	4.8
	 	ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS	 	 	38	 
	4.9
	 	MAXIMUM ANNUAL ADDITIONS	 	 	40	 
	4.10
	 	ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS	 	 	41	 
	4.11
	 	TRANSFERS FROM QUALIFIED PLANS	 	 	42	 
	4.12
	 	DIRECTED INVESTMENT ACCOUNT	 	 	44	 
	4.13
	 	ACS STOCK FUND	 	 	45	 
	 
	 	ARTICLE V	 	 	 	 
	 
	 	DETERMINATION AND DISTRIBUTION OF BENEFITS	 	 	 	 
	5.1
	 	DETERMINATION OF BENEFITS UPON RETIREMENT	 	 	46	 
	5.2
	 	DETERMINATION OF BENEFITS UPON DEATH	 	 	46	 
	5.3
	 	DETERMINATION OF BENEFITS IN EVENT OF DISABILITY	 	 	48	 
	5.4
	 	DETERMINATION OF BENEFITS UPON TERMINATION	 	 	48	 
	5.5
	 	DISTRIBUTION OF BENEFITS	 	 	50	 
	5.6
	 	DISTRIBUTION OF ACCOUNT BALANCE UPON DEATH	 	 	52	 
	5.7
	 	TIME OF SEGREGATION OR DISTRIBUTION	 	 	52	 
	5.8
	 	DISTRIBUTION FOR MINOR BENEFICIARY	 	 	52	 
	5.9
	 	LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN	 	 	52	 
	5.10
	 	PRE-RETIREMENT DISTRIBUTION	 	 	53	 
	5.11
	 	ADVANCE DISTRIBUTION FOR HARDSHIP	 	 	53	 
	5.12
	 	QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION	 	 	54	 
	5.13
	 	DIRECT ROLLOVER	 	 	54	 
	5.14
	 	ELIMINATION OF LOOKBACK RULE	 	 	56	 

ii

 

	 	 	 	 	 	 	 
	 
	 	ARTICLE VI	 	 	 	 
	 
	 	AMENDMENT, TERMINATION, MERGERS AND LOANS	 	 	 	 
	6.1
	 	AMENDMENT	 	 	56	 
	6.2
	 	TERMINATION	 	 	57	 
	6.3
	 	MERGER OR CONSOLIDATION	 	 	57	 
	6.4
	 	LOANS TO PARTICIPANTS	 	 	57	 
	 
	 	ARTICLE VII	 	 	 	 
	 
	 	TOP HEAVY	 	 	 	 
	7.1
	 	TOP HEAVY PLAN REQUIREMENTS	 	 	58	 
	7.2
	 	DETERMINATION OF TOP HEAVY STATUS	 	 	59	 
	 
	 	ARTICLE VIII	 	 	 	 
	 
	 	MISCELLANEOUS	 	 	 	 
	8.1
	 	PARTICIPANT’S RIGHTS	 	 	61	 
	8.2
	 	ALIENATION	 	 	62	 
	8.3
	 	CONSTRUCTION OF PLAN	 	 	63	 
	8.4
	 	GENDER AND NUMBER	 	 	63	 
	8.5
	 	LEGAL ACTION	 	 	63	 
	8.6
	 	PROHIBITION AGAINST DIVERSION OF FUNDS	 	 	63	 
	8.7
	 	BONDING	 	 	64	 
	8.8
	 	EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE	 	 	64	 
	8.9
	 	RECEIPT AND RELEASE FOR PAYMENTS	 	 	64	 
	8.10
	 	ACTION BY THE EMPLOYER	 	 	64	 
	8.11
	 	NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY	 	 	64	 
	8.12
	 	HEADINGS	 	 	65	 
	8.13
	 	APPROVAL BY INTERNAL REVENUE SERVICE	 	 	65	 
	8.14
	 	UNIFORMITY	 	 	65	 
	 
	 	ARTICLE IX	 	 	 	 
	 
	 	PARTICIPATING EMPLOYERS	 	 	 	 
	9.1
	 	ADOPTION BY OTHER EMPLOYERS	 	 	66	 
	9.2
	 	REQUIREMENTS OF PARTICIPATING EMPLOYERS	 	 	66	 
	9.3
	 	DESIGNATION OF AGENT	 	 	66	 
	9.4
	 	EMPLOYEE TRANSFERS	 	 	66	 
	9.5
	 	DISCONTINUANCE OF PARTICIPATION	 	 	66	 
	9.6
	 	ADMINISTRATOR’S AUTHORITY	 	 	67	 

iii

 

	 	 	 	 	 	 	 
	EXHIBIT A
	 	LIST OF PARTICIPATING EMPLOYERS	 	 	A-1	 
	EXHIBIT B
	 	PREDECESSOR SERVICE	 	 	B-1	 
	APPENDIX
	 	 	 	 	 	 

iv

 

PREAMBLE

     The ACS Savings Plan, formerly the Affiliated Computer Services, Inc.
Savings Plan, originally effective as of January 1, 1989, is hereby amended and
restated in its entirety, as of July 1, 2004, except as otherwise provided.
The Plan, as amended and restated hereby, is intended to qualify as a profit
sharing plan under Section 401(a) of the Code, and includes a cash or deferred
arrangement that is intended to qualify under Section 401(k) of the Code. The
Plan is maintained for the benefit of eligible employees and their
beneficiaries.

     Notwithstanding any other provision of the Plan to the contrary, a
Participant’s vested interest in his Participant Account under the Plan on and
after the effective date of this amendment and restatement shall be not less
than his vested interest in his account on the day immediately preceding the
effective date.

     Since the last amendment and restatement of the Plan effective July 1,
2001, the following plans have merged into and become a part of this Plan:

     ACS Government Systems Savings Plan for Former Employees of SCT

     Birch & Davis Profit Sharing Plan

     Computer Systems Development, Inc. 401(k) Plan

     Pace Group, Inc. 401(k) Plan

     State Healthcare, LLC Profit Sharing and 401(k) Plan f/k/a Consultec, Inc.
Profit Sharing and 401(k) Plan

     Peter Martin Associates, Inc. 401(k) Plan

     CyberRep, Inc. 401(k) Plan

     Excel Alternatives, Inc. 401(k) Plan

     Concera Corporation Tax Sheltered Retirement Plan

     ACS Business Process Solutions Savings Plan

     ACS Shared Services Savings Plan

     Outsourced Administrative Systems, Inc. 401(k) Plan

     Unclaimed Property Recovery & Reporting, Inc. 401(k) Plan

     Each such plan and those plans merged into the Plan prior to July 1, 2001
shall be referred to as a “Predecessor Plan” for purposes of this Plan.

1

 

ARTICLE I

DEFINITIONS

     1.1 “ACS Stock Fund” means the fund relating to the Plan consisting
primarily of Affiliated Computer Services, Inc. Class A common stock, par value
$0.01 per share.

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

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

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

     1.5 “Aggregate Account” means, with respect to each Participant, the value
of all accounts maintained on behalf of a Participant, whether attributable to
Employer or Employee contributions, subject to the provisions of Section 7.2.

     1.6 “Anniversary Date” means December 31st.

     1.7 “Annuity Starting Date” means, with respect to any Participant, the
first day of the first period for which an amount is paid as an annuity or any
other form.

     1.8 “Beneficiary” means the person to whom the share of a deceased
Participant’s total account is payable, subject to the restrictions of Sections
5.2 and 5.6.

     1.9 “Catch-Up Contribution” means an additional Pre-Tax Contribution
permitted to be made by a Participant who has attained or will attain the age
of 50 by the end of the Plan Year.

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

     1.11 “Compensation” with respect to any Participant means such
Participant’s wages as defined in Code Section 3401(a) and all other payments
of compensation by the Employer (in the course of the Employer’s trade or
business) for a Plan Year for which the Employer is required to furnish the
Participant a written statement under Code Sections 6041(d), 6051(a)(3) and
6052. Compensation must be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on the
nature or location of the employment or the services performed (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

          For purposes of this Section, the determination of Compensation shall be
made by:

2

 

     (a) excluding bonuses (except in the case of employees employed by
ACS Defense, LLC, ACS Enterprise Solutions, Inc., ACS Government Systems,
Inc. and ACS State Healthcare, LLC),

     (b) including amounts which are contributed by the Employer pursuant
to a Pre-Tax Contribution election and which are not includible in the
gross income of the Participant under Code Sections 125, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in
Code Section 414(h)(2) that are treated as Employer contributions, and
for Plan Years beginning on and after January 1, 2001 amounts otherwise
excluded from income pursuant to Code Section 132(f)(4).

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

Compensation in excess of $200,000 shall be disregarded. Such amount shall be
adjusted for increases in the cost of living in accordance with Code Section
401(a)(17), except that the dollar increase in effect on January 1 of any
calendar year shall be effective for the Plan Year beginning with or within
such calendar year. For any short Plan Year the Compensation limit shall be an
amount equal to the Compensation limit for the calendar year in which the Plan
Year begins multiplied by the ratio obtained by dividing the number of full
months in the short Plan Year by twelve (12).

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

          If, in connection with the adoption of this amendment and restatement, the
definition of Compensation has been modified, then, for Plan Years prior to the
Plan Year which includes the adoption date of this amendment and restatement,
Compensation means compensation determined pursuant to the Plan then in effect.

          The definition of “Compensation” may differ between Participating
Employers. See the Appendix for the definition of “Compensation” pertaining to
each respective “Participating Employer.”

     1.12 “Contract” or “Policy” means any life insurance policy, retirement
income or annuity policy or annuity contract (group or individual) issued
pursuant to the terms of the Plan.

     1.13 “Designated Investment Alternative” means a specific investment
identified by name by a Fiduciary as an available investment under the Plan
which may be acquired or disposed of by the Trustee pursuant to the investment
direction by a Participant.

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

     (a) a Designated Investment Alternative,

     (b) any other investment permitted by the Plan and acquired or
disposed of by the Trustee pursuant to the investment direction of a
Participant.

3

 

     1.15 “Early Retirement Date” means the first day of the month (prior to
the Normal Retirement Date) coinciding with or following the date on which a
Participant or Former Participant attains age 55, and has completed at least 10
Years of Service with the Employer (Early Retirement Age). A Participant shall
become fully Vested upon satisfying this requirement if still employed at his
Early Retirement Age.

          A Former Participant who terminates employment after satisfying the
service requirement for Early Retirement and who thereafter reaches the age
requirement contained herein shall be entitled to receive his benefits under
this Plan.

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

     1.17 “Eligible Employee” means any Employee, but excluding:

     (a) Leased Employees within the meaning of Code Sections 414(n)(2)
and 414(o)(2);

     (b) Employees whose employment is governed by the terms of a
collective bargaining agreement between Employee representatives (within
the meaning of Code Section 7701(a)(46)) and the Employer under which
retirement benefits were the subject of good faith bargaining between the
parties unless such agreement expressly provides for coverage in this
Plan; and

     (c) Employees who are nonresident aliens (within the meaning of Code
Section 7701(b)(1)(B)) and who receive no earned income (within the
meaning of Code Section 911(d)(2)) from the Employer which constitutes
income from sources within the United States (within the meaning of Code
Section 861(a)(3)).

          Employees of Affiliated Employers shall not be eligible to participate in
this Plan unless such Affiliated Employers have specifically been designated as
Participating Employers.

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

     1.19 “Employer” means Affiliated Computer Services, Inc., any successor
which shall maintain this Plan and any predecessor which has maintained this
Plan. The Employer is a corporation, with principal offices in the State of
Texas. In addition, where appropriate, the term

4

 

“Employer” shall include any “Participating Employer” (as discussed in
Article 9) which shall adopt this Plan. As of the Effective Date, the
Participating Employers designated to participate hereunder are identified in
Exhibit A which Exhibit A may be amended from time to time by the Employer’s
Senior Vice-President of Human Resources.

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

     1.21 “Employer Contribution Account” means the account established and
maintained by the Administrator for each Participant with respect to his total
interest in the Plan and Trust resulting from Employer Contributions.

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

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

     1.23 “Excess Contributions” means, with respect to a Plan Year, the excess
of Elective Contributions used to satisfy the “Actual Deferral Percentage”
tests made on behalf of Highly Compensated Participants for the Plan Year over
the maximum amount of such contributions permitted under Section 4.5(a)
(determined by reducing contributions made on behalf of Highly Compensated
Participants in order of the actual deferral ratios beginning with the highest
of such ratios). Excess Contributions shall be treated as an “annual addition”
pursuant to Section 4.9(b).

     1.24 “Excess Pre-Tax Contribution” means, with respect to any taxable year
of a Participant, the excess of the aggregate amount of such Participant’s
Pre-Tax Contributions and the elective deferrals pursuant to Section 4.2(f)
actually made on behalf of such Participant for such taxable year, over the
dollar limitation provided for in Code Section 402(g), which is incorporated
herein by reference. Excess Pre-Tax Contributions shall be treated as an
“annual addition” pursuant to Section 4.9(b) when contributed to the Plan
unless distributed to the affected Participant not later than the first April
15th following the close of the Participant’s taxable year. Additionally, for
purposes of Sections 7.2 and 4.4(f), Excess Pre-Tax Contributions shall
continue to be treated as Employer contributions even if distributed pursuant
to Section 4.2(f). However, Excess Pre-Tax Contributions of Non-Highly
Compensated Participants are not taken into account for purposes of Section
4.5(a) to the extent such Excess Pre-Tax Contributions occur pursuant to
Section 4.2(d).

     1.25 “Fiduciary” means any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control

5

 

respecting management or disposition of its assets, (b) renders investment
advice for a fee or other compensation, direct or indirect, with respect to any
monies or other property of the Plan or has any authority or responsibility to
do so, or (c) has any discretionary authority or discretionary responsibility
in the administration of the Plan, including, but not limited to, the Trustee,
the Employer and its representative body, and the Administrator.

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

     1.27 “Forfeiture” means that portion of an Employer Contribution Account
that is not Vested, and occurs on the earlier of:

     (a) the date of distribution of the entire Vested portion of a
Terminated Participant’s Employer Contribution Account, or

     (b) the last day of the Plan Year in which the Participant incurs
five (5) consecutive 1-Year Breaks in Service.

          Furthermore, for purposes of paragraph (a) above, in the case of a
Terminated Participant whose Vested benefit is zero, such Terminated
Participant shall be deemed to have received a distribution of his Vested
benefit upon his termination of employment. Restoration of such amounts shall
occur pursuant to Section 5.4(h)(2). In addition, the term Forfeiture shall
also include amounts deemed to be Forfeitures pursuant to any other provision
of this Plan.

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

     1.29 “415 Compensation” with respect to any Participant means such
Participant’s wages as defined in Code Section 3401(a) and all other payments
of compensation by the Employer (in the course of the Employer’s trade or
business) for a Plan Year for which the Employer is required to furnish the
Participant a written statement under Code Sections 6041(d), 6051(a)(3) and
6052. “415 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 purposes of this Section, the determination of “415 Compensation”
shall include any elective deferral (as defined in Code Section 402(g)(3)), and
any amount which is contributed or deferred by the Employer at the election of
the Participant and which is not includible in the gross income of the
Participant by reason of Code Sections 125 or 457.

          If, in connection with the adoption of this amendment and restatement, the
definition of “415 Compensation” has been modified, then, for Plan Years prior
to the Plan Year which includes the adoption date of this amendment and
restatement, “415 Compensation” means compensation determined pursuant to the
Plan then in effect.

          The provisions of the second paragraph of this Section 1.29, providing
that “415 Compensation” shall include elective deferrals (as described in Code
Section 402(g)(3)) and amounts otherwise excluded from gross income by reason
of Code Sections 125 or 457, shall apply

6

 

with respect to all Plan Years beginning on or after January 1, 1997; and
furthermore shall apply not only under this Section 1.29, but, effective as of
January 1, 1997, shall apply with respect to all other Sections of the Plan
that incorporate “415 Compensation” by reference. All prior restatements of
the Plan, or any other plan merged into this Plan in effect on or after January
1, 1997 are deemed amended in accordance with the preceding sentence, effective
as of January 1, 1997. Effective as of January 1, 2001, “415 Compensation”
shall furthermore include any amount otherwise excluded from gross income
pursuant to Section 132(f)(4) of the Internal Revenue Code. The preceding
sentence shall apply with respect to any prior restatement of the Plan, or any
other plan merged into this Plan in effect on or after January 1, 2001. The
provisions of this fourth paragraph of Section 1.29 shall apply,
notwithstanding the provisions of the preceding paragraph hereof, and
notwithstanding any other provision in the Plan or any prior restatement that
would purport to preclude the retroactive application of the amendment effected
hereby.

     1.30 “414(s) Compensation” with respect to any Participant means such
Participant’s “415 Compensation” paid during a Plan Year. The amount of “414(s)
Compensation” with respect to any Participant shall include “414(s)
Compensation” for the entire twelve (12) month period ending on the last day of
such Plan Year.

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

          “414(s) Compensation” in excess of $200,000 shall be disregarded. Such
amount shall be adjusted for increases in the cost of living in accordance with
Code Section 401(a)(17), except that the dollar increase in effect on January 1
of any calendar year shall be effective for the Plan Year beginning with or
within such calendar year. For any short Plan Year the “414(s) Compensation”
limit shall be an amount equal to the “414(s) Compensation” limit for the
calendar year in which the Plan Year begins multiplied by the ratio obtained by
dividing the number of full months in the short Plan Year by twelve (12).

          If, in connection with the adoption of this amendment and restatement, the
definition of “414(s) Compensation” has been modified, then, for Plan Years
prior to the Plan Year which includes the adoption date of this amendment and
restatement, “414(s) Compensation” means compensation determined pursuant to
the Plan then in effect.

     1.31 “Highly Compensated Employee” means an Employee described in Code
Section 414(q) and the Regulations thereunder, and generally means an Employee
who performed services for the Employer during the “determination year” and is
in one or more of the following groups:

     (a) Employees who at any time during the “determination year” or
“look-back year” were “five percent owners” as defined in Section
1.36(b).

     (b) Employees who received “415 Compensation” during the “look-back
year” from the Employer in excess of $80,000 (as adjusted pursuant to
Code Section 414(q)(1)). In determining who are Highly Compensated
Employees for any Plan Year beginning on or

7

 

after January 1, 1997, the election described in Code Section
414(q)(1)(B)(ii) (relating to the Top Paid Group) shall not apply.

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

          For purposes of this Section, the determination of “415 Compensation”
shall be made by including amounts which are contributed by the Employer
pursuant to a Pre-Tax Contribution election and which are not includible in the
gross income of the Participant under Code Sections 125, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code
Section 414(h)(2) that are treated as Employer contributions. Additionally, the
dollar threshold amount specified in (b) above shall be adjusted at such time
and in the same manner as under Code Section 415(d), except that the base
period shall be the calendar quarter ending September 30, 1996. In the case of
such an adjustment, the dollar limit which shall be applied is the limit for
the calendar year in which the “look-back year” begins.

          Notwithstanding anything to the contrary, the Plan is deemed amended to
provide that the family aggregation rules under Code Section 414(q)(6) (as in
effect on December 31, 1996), shall not apply with respect to Plan Years
beginning on or after January 1, 1997. Furthermore to the extent not specified
in any prior restatement of the Plan, or any other plan merged into this Plan
in effect on or after January 1, 1997, such restatement is hereby deemed
amended in the same respect, effective as of January 1, 1997. The definition
of “Highly Compensated Employee” as contained in this Section 1.31 shall apply
with respect to all Plan Years beginning on or after January 1, 1997. Such
definition shall furthermore apply with respect to any prior restatement of the
Plan, or any other plan merged into this Plan in effect on or after January 1,
1997, and all such prior restatements are hereby deemed amended in such
respect.

     1.32 “Highly Compensated Participant” means any Highly Compensated
Employee who is eligible to participate in the Plan.

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

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

8

 

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

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

          Notwithstanding the foregoing, service for salaried Participants will be
determined on the basis of semi-monthly or bi-weekly payroll periods. A
salaried Participant will be credited with 95 Hours of Service for each
semi-monthly period or 45 Hours of Service for each weekly period in which an
Employee is paid or entitled to payment for at least one Hour of Service.

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

          For purposes of determining satisfaction of the initial eligibility
service requirements for discretionary matching contributions on and after
January 1, 2004, the definition of “Hour of Service” as provided under Section
3.7 shall apply.

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

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

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

     (a) an officer of the Employer having an annual compensation greater
than $130,000, as adjusted pursuant to Code Section 416(i)(l)(A).

     (b) a “five percent owner” of the Employer. “Five percent owner”
means any person who owns (or is considered as owning within the meaning
of Code Section 318) more than five percent (5%) of the outstanding stock
of the Employer or stock possessing more than five percent (5%) of the
total combined voting power of all stock of the Employer or, in

9

 

the case of an unincorporated business, any person who owns more
than five percent (5%) of the capital or profits interest in the
Employer. In determining percentage ownership hereunder, employers that
would otherwise be aggregated under Code Sections 414(b), (c), (m) and
(o) shall be treated as separate employers.

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

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

     1.37 “Leased Employee” means any person (other than an Employee of the
recipient) who pursuant to an agreement between the recipient and any other
person (“leasing organization”) has performed services for the recipient (or
for the recipient and related persons determined in accordance with Code
Section 414(n)(6)) on a substantially full time basis for a period of at least
one year, and such services are performed under primary direction or control by
the recipient employer. Contributions or benefits provided a Leased Employee by
the leasing organization which are attributable to services performed for the
recipient employer shall be treated as provided by the recipient employer. A
Leased Employee shall not be considered an Employee of the recipient:

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

(1) a non-integrated employer contribution rate of at least
10% of compensation, as defined in Code Section 415(c)(3),
but including amounts which are contributed by the Employer
pursuant to a Pre-Tax Contribution election and which are not
includible in the gross income of the Participant under Code
Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and
Employee contributions described in Code Section 414(h)(2)
that are treated as Employer contributions.

(2) immediate participation; and

(3) full and immediate vesting.

10

 

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

          The definition of “Leased Employee” as contained in this Section 1.37
shall apply with respect to all Plan Years beginning on or after January 1,
1997. Such definition shall furthermore apply with respect to any prior
restatement of the Plan, or any other plan merged into this Plan in effect on
or after January 1, 1997, and all such prior restatements are hereby deemed
amended in such respect.

     1.38 “Named Fiduciary” or “Named Fiduciaries” means the Employer, the
Administrator and the Trustee.

     1.39 “Non-Highly Compensated Participant” means any Participant who is not
a Highly Compensated Employee. However, for the Plan Year prior to the first
Plan Year of this amendment and restatement, for the purposes of Section 4.5(a)
and Section 4.6, if the prior year testing method is used, a Non-Highly
Compensated Participant shall be determined using the definition of highly
compensated employee in effect for the preceding Plan Year.

     1.40 “Non-Key Employee” means any Employee or former Employee (and his
Beneficiaries) who is not a Key Employee.

     1.41 “Normal Retirement Age” means the Participant’s 65th birthday. A
Participant shall become fully Vested in his Employer Contribution Account upon
attaining his Normal Retirement Age.

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

     1.43 “1-Year Break in Service” or “One Year Break in Service” means the
applicable computation period during which an Employee has not completed more
than 500 Hours of Service with the Employer. Further, solely for the purpose of
determining whether a Participant has incurred a 1-Year Break in Service, Hours
of Service shall be recognized for “authorized leaves of absence” and
“maternity and paternity leaves of absence.” Years of Service and 1-Year Breaks
in Service shall be measured on the same computation period.

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

          A “maternity or paternity leave of absence” means, for Plan Years
beginning after December 31, 1984, an absence from work for any period by
reason of the Employee’s pregnancy, birth of the Employee’s child, placement of
a child with the Employee in connection with the adoption of such child, or any
absence for the purpose of caring for such child for a period immediately
following such birth or placement. For this purpose, Hours of Service shall be
credited for the computation period in which the absence from work begins, only
if credit therefore is necessary to prevent the Employee from incurring a
1-Year Break in Service, or, in any other case, in the immediately following
computation period. The Hours of Service credited for a “maternity or paternity
leave of absence” shall be those which would normally have been credited but
for such

11

 

absence, or, in any case in which the Administrator is unable to determine
such hours normally credited, eight (8) Hours of Service per day. The total
Hours of Service required to be credited for a “maternity or paternity leave of
absence” shall not exceed 501.

          For purposes of determining satisfaction of the initial eligibility
service requirements for discretionary matching contributions on and after
January 1, 2004, the definition of “One Year Break in Service” provided under
Section 3.9(b) shall apply.

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

     1.45 “Participant’s Combined Account” means the total aggregate amount of
each Participant’s Elective Contribution Account and Employer Contribution
Account. After-Tax Contributions will be included, if applicable, in the total
aggregate amount of each Participant’s Elective Contribution Account and
Employer Contribution Account.

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

     1.47 “Participating Employer” means those employers identified on Exhibit
A and such Exhibit A may be amended from time to time by the Employer, the
Employer’s Benefits Administration Committee (the “Benefits Committee”) or the
Senior Vice-President of Human Resources.

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

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

     1.50 “Pre-Retirement Survivor Annuity” means a death benefit which is an
immediate annuity for the life of the Participant’s spouse the payments under
which must be equal to the amount of benefit which can be purchased with the
accounts of a Participant.

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

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

12

 

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

     1.54 “Retirement Date” means the date as of which a Participant retires
for reasons other than Total and Permanent Disability, whether such retirement
occurs on a Participant’s Normal Retirement Date or Early Retirement Date (see
Section 5.1).

     1.55 “Terminated Participant” means a person who has been a Participant,
but whose employment has been terminated other than by death, Total and
Permanent Disability or retirement.

     1.56 “Top Heavy Plan” means a plan described in Section 7.2(a).

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

     1.58 “Top Paid Group” means the top 20 percent of Employees who performed
services for the Employer during the applicable year, ranked according to the
amount of “415 Compensation” (determined for this purpose in accordance with
Section 1.28) received from the Employer during such year. All Affiliated
Employers shall be taken into account as a single employer, and Leased
Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be
considered Employees unless such Leased Employees are covered by a plan
described in Code Section 414(n)(5) and are not covered in any qualified plan
maintained by the Employer. Employees who are non-resident aliens and who
received no earned income (within the meaning of Code Section 911(d)(2)) from
the Employer constituting United States source income within the meaning of
Code Section 861(a)(3) shall not be treated as Employees. Additionally, for the
purpose of determining the number of active Employees in any year, the
following additional Employees shall also be excluded; however, such Employees
shall still be considered for the purpose of identifying the particular
Employees in the Top Paid Group:

     (a) Employees with less than six (6) months of service;

     (b) Employees who normally work less than 17 1/2 hours per week;

     (c) Employees who normally work less than six (6) months during a
year; and

     (d) Employees who have not yet attained age 21.

          In addition, if 90 percent or more of the Employees of the Employer are
covered under agreements the Secretary of Labor finds to be collective
bargaining agreements between Employee representatives and the Employer, and
the Plan covers only Employees who are not covered under such agreements, then
Employees covered by such agreements shall be excluded from both the total
number of active Employees as well as from the identification of particular
Employees in the Top Paid Group.

          The foregoing exclusions set forth in this Section shall be applied on a
uniform and consistent basis for all purposes for which the Code Section 414(q)
definition is applicable.

13

 

     1.59 “Total and Permanent Disability” means the inability to engage in any
substantial gainful activity because of a medically determinable physical or
mental impairment that can be expected to result in death or which has lasted
or can be expected to last throughout a continuous period of at least 12
months.

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

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

     1.62 “USERRA” means the Uniformed Services Employment and Reemployment
Rights Act of 1994. Notwithstanding any provision of this Plan to the contrary,
effective December 12, 1994, contributions, benefits and service credit with
respect to qualified military service will be provided in accordance with Code
Section 414(u).

     1.63 “Valuation Date” means any day during the Plan Year that the Trustee,
any transfer agent appointed by the Trustee or the Employer and any stock
exchange used by such agent are open for business.

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

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

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

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

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

          Years of Service with Predecessor Employers identified in Exhibit B, which
Exhibit B may be amended from time to time by the Employer, the Benefits
Committee or the Employer’s Senior Vice-President of Human Resources, shall be
recognized for purposes of this Plan.

          Years of Service with any Affiliated Employer shall be recognized.

14

 

ARTICLE II

ADMINISTRATION

     2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER

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

     (b) The Employer may, by written agreement or designation, appoint
at its option an Investment Manager (qualified under the Investment
Company Act of 1940 as amended), investment adviser, or other agent to
provide direction to the Trustee with respect to any or all of the Plan
assets. Such appointment shall be given by the Employer in writing in a
form acceptable to the Trustee and shall specifically identify the Plan
assets with respect to which the Investment Manager or other agent shall
have authority to direct the investment.

     (c) The Employer shall establish a “funding policy and method,”
i.e., it shall determine whether the Plan has a short run need for
liquidity (e.g., to pay benefits) or whether liquidity is a long run goal
and investment growth (and stability of same) is a more current need, or
shall appoint a qualified person to do so. The Employer or its delegate
shall communicate such needs and goals to the Trustee, who shall
coordinate such Plan needs with its investment policy. The communication
of such a “funding policy and method” shall not, however, constitute a
directive to the Trustee as to investment of the Trust Funds. Such
“funding policy and method” shall be consistent with the objectives of
this Plan and with the requirements of Title I of the Act.

     (d) The Employer shall periodically review the performance of any
Fiduciary or other person to whom duties have been delegated or allocated
by it under the provisions of this Plan or pursuant to procedures
established hereunder. This requirement may be satisfied by formal
periodic review by the Employer or by a qualified person specifically
designated by the Employer, through day-to-day conduct and evaluation, or
through other appropriate ways.

     2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY

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

15

 

     2.3 POWERS AND DUTIES OF THE ADMINISTRATOR

          The primary responsibility of the Administrator is to administer the Plan
for the exclusive benefit of the Participants and their Beneficiaries, subject
to the specific terms of the Plan. The Administrator shall administer the Plan
in accordance with its terms and shall have the power and discretion to
construe the terms of the Plan and to determine all questions arising in
connection with the administration, interpretation, and application of the
Plan. Any such determination by the Administrator shall be conclusive and
binding upon all persons. The Administrator may establish procedures, correct
any defect, supply any information, or reconcile any inconsistency in such
manner and to such extent as shall be deemed necessary or advisable to carry
out the purpose of the Plan; provided, however, that any procedure,
discretionary act, interpretation or construction shall be done in a
nondiscriminatory manner based upon uniform principles consistently applied and
shall be consistent with the intent that the Plan shall continue to be deemed a
qualified plan under the terms of Code Section 401(a), and shall comply with
the terms of the Act and all regulations issued pursuant thereto. The
Administrator shall have all powers necessary or appropriate to accomplish his
duties under this Plan.

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

     (a) the discretion to determine all questions relating to the
eligibility of Employees to participate or remain a Participant hereunder
and to receive benefits under the Plan;

     (b) to compute, certify, and direct the Trustee with respect to the
amount and the kind of benefits to which any Participant shall be
entitled hereunder;

     (c) to authorize and direct the Trustee with respect to all
nondiscretionary or otherwise directed disbursements from the Trust;

     (d) to maintain all necessary records for the administration of the
Plan;

     (e) the discretion to interpret the provisions of the Plan and to
make and publish such rules for regulation of the Plan as are consistent
with the terms hereof;

     (f) to determine the size and type of any Contract to be purchased
from any insurer, and to designate the insurer from which such Contract
shall be purchased;

     (g) to compute and certify to the Employer and to the Trustee from
time to time the sums of money necessary or desirable to be contributed
to the Plan;

     (h) to consult with the Employer and the Trustee regarding the short
and long-term liquidity needs of the Plan in order that the Trustee can
exercise any investment discretion in a manner designed to accomplish
specific objectives;

     (i) to prepare and implement a procedure to notify Eligible
Employees that they may elect to have a portion of their Compensation
deferred or paid to them in cash;

16

 

     (j) to act as the Named Fiduciary responsible for communications
with Participants as needed to maintain Plan compliance with ERISA
Section 404(c), including but not limited to the receipt and transmitting
of Participant’s directions as to the investment of their account(s)
under the Plan and the formulation of policies, rules, and procedures
pursuant to which Participants may give investment instructions with
respect to the investment of their accounts;

     (k) to assist any Participant regarding his rights, benefits, or
elections available under the Plan.

     2.4 RECORDS AND REPORTS

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

     2.5 APPOINTMENT OF ADVISERS

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

     2.6 PAYMENT OF EXPENSES

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

     2.7 CLAIMS PROCEDURE

          The Administrator, or a party designated by the Administrator, shall have
the exclusive discretionary authority to construe and to interpret the Plan, to
decide all questions of eligibility for benefits and to determine the amount of
such benefits in accordance with the terms of the Plan, and its decisions on
such matters are final and conclusive. As a result, benefits under this Plan
will be paid only if the Administrator decides in its discretion that the
Participant (or other claimant) is entitled to them. The Administrator’s
discretionary authority is intended to be absolute, and in any case where the
extent of this discretion is in question, the Administrator is to be accorded

17

 

the maximum discretion possible. Any exercise of this discretionary
authority shall be reviewed by a court under the arbitrary and capricious
standard (i.e., the abuse of discretion standard).

          Claims for benefits under the Plan may be filed in writing with the
Administrator. Written notice of the disposition of a claim shall be furnished
to the claimant within 90 days (the “initial period”) after the application is
filed, unless special circumstances require an extension of time for processing
the claim and written notice or electronic notice of such extension, the
reasons therefore and the expected date by which the Administrator will make
its determination is given to the claimant prior to the end of the 90-day
period. In no event shall such extension exceed 90 days from the end of the
initial period.

          In the event the claim is denied, the reasons for the denial shall be
specifically set forth in the notice in language calculated to be understood by
the claimant, pertinent provisions of the Plan shall be cited, and, where
appropriate, an explanation as to how the claimant can perfect the claim will
be provided. In addition, the claimant shall be furnished with an explanation
of the Plan’s claims review procedure.

     2.8 CLAIMS REVIEW PROCEDURE

          Any Employee, former Employee, or Beneficiary of either, who has been
denied a benefit by a decision of the Administrator pursuant to Section 2.7
shall be entitled to request the Administrator to give further consideration to
his claim by filing with the Administrator (on a form which may be obtained
from the Administrator) a request for further review. Such request, together
with a written statement of the reasons why the claimant believes his claim
should be allowed, shall be filed with the Administrator no later than 60 days
after receipt of the written notification provided for in Section 2.7. A final
decision as to the allowance of the claim shall be made by the Administrator
within 60 days of receipt of the request for further review (unless there has
been an extension of 60 days due to special circumstances, provided the delay
and the special circumstances occasioning it are communicated to the claimant
within the 60 day period). Such communication shall be written in a manner
calculated to be understood by the claimant and shall include specific reasons
for the decision and specific references to the pertinent Plan provisions on
which the decision is based.

     2.9 CLAIMS REVIEW RELATING TO DISABILITY

          If a claim for benefits is based on a determination of disability by the
Administrator, such claim for disability-based benefits will be processed
within 45 days of receipt unless the application is incomplete. The
Administrator will notify the claimant or the claimant’s representative within
the initial 45-day period if the application is incomplete.

          If the Administrator needs additional information, the initial 45-day
period will be suspended. When the information is received, the Administrator
has the remainder of the 45-day period to process the application.

          In unusual circumstances, the Administrator may extend the initial 45-day
period to process the application by up to two 30-day extensions. If it does
so, the claimant will be notified in writing of the first extension before the
end of the first 45-day period. The claimant will be notified of the second
extension before the end of the first 30-day extension period. If the
Administrator is waiting

18

 

for information from a claimant during a 30-day extension, the period
during which it must wait is not counted toward the 30 days.

     If the initial application for disability-based benefits is denied in
whole or in part, the Administrator will provide the claimant with a written
explanation of the denial and the claimant’s right to have the denial appealed.
The explanation also will describe any other information or material that the
claimant can provide that on appeal may result in a reversal of the denial.

     The claimant may then submit a written request for reconsideration of the
claim within 180 days after the denial. Any such request should be accompanied
by documents or records that support the appeal and should be sent to the
Administrator.

     The Administrator will consult with vocational and medical experts in
deciding the appeal for technical advice and opinions on claim appeals when
appropriate.

     The Administrator will make a final claim determination within 45 days of
its receipt of the request for an appeal of the initial denial. If the
Administrator needs additional information to process the appeal, it will
notify the claimant or the claimant’s representative and request the
information. While the Administrator waits for the information, the 45-day
period will be suspended.

     When the information is received, the Administrator has the remainder of
the original 45-day period to process the appeal. In special circumstances,
the Administrator may extend the original 45-day period. The claimant will be
notified in writing of the extension before the end of the original 45-day
period. The period for processing the appeal may not exceed 90 days (not
including the time the Administrator waits for information it requests from the
claimant).

ARTICLE III

ELIGIBILITY

     3.1 CONDITIONS OF ELIGIBILITY

          Any Eligible Employee shall be eligible to participate hereunder on the
date of his employment with the Employer. However, any Employee who was a
Participant in the Plan prior to the effective date of this amendment and
restatement shall continue to participate in the Plan and any Employee who was
a participant in a Predecessor Plan prior to the effective date of this
amendment and restatement shall become a Participant in this Plan on the
effective date.

     3.2 EFFECTIVE DATE OF PARTICIPATION

          An Eligible Employee shall become a Participant effective as of the first
day such Employee met the eligibility requirements of Section 3.1, or as soon
thereafter as administratively feasible, provided said Employee was still
employed as of such date (or if not employed on such date, as of the date of
rehire if a 1-Year Break in Service has not occurred).

          In the event an Employee who is not a member of an eligible class of
Employees becomes a member of an eligible class, such Employee will participate
immediately, or as soon

19

 

thereafter as administratively feasible, if such Employee would have
otherwise previously become a Participant.

     3.3 DETERMINATION OF ELIGIBILITY

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

     3.4 TERMINATION OF ELIGIBILITY

     (a) In the event a Participant shall go from a classification of an
Eligible Employee to an ineligible Employee, such Former Participant
shall continue to vest in his interest in the Plan for each Year of
Service completed while a noneligible Employee, until such time as his
Employer Contribution Account shall be forfeited or distributed pursuant
to the terms of the Plan. Additionally, his interest in the Plan shall
continue to share in the earnings of the Trust Fund and be subject to the
provisions of Section 4.12.

     (b) In the event a Participant is no longer a member of an eligible
class of Employees and becomes ineligible to participate, such Employee
will participate immediately upon returning to an eligible class of
Employees.

     3.5 INITIAL ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY MATCHING
CONTRIBUTIONS

          All Eligible Employees hired, rehired or transferred to the Employer on or
after January 1, 2004, must complete an initial one-year period of service to
be eligible to receive discretionary matching contributions under the Plan.
Eligible Employees shall receive credit for prior service with the Employer, or
such other employer as may be designated by the Employer, the Benefits
Committee or the Senior Vice-President of Human Resources in an amendment to
Exhibit B and shall be made in a manner not more favorable to Highly
Compensated Employees.

          This Section is effective on and after January 1, 2004.

     3.6 ENTRY DATE TO RECEIVE DISCRETIONARY MATCHING CONTRIBUTIONS

          Eligible Employees described in Section 3.5 who have from the time period
beginning with their employment commencement date (the date on which an
Employee first performs an Hour of Service) completed an initial one-year
period of service, will be eligible to participate in the discretionary
matching contribution portion of the Plan the first pay period not closed to
changes (or the first full pay period for those receiving the ACS State & Local
Solutions, Inc. benefit structure) immediately following the date the Eligible
Employee completes the initial one-year period of service or as soon as
administratively feasible thereafter.

          Each Eligible Employee described in the above paragraph will share in
discretionary matching contributions for the period beginning on the date the
Eligible Employee commences

20

 

participation in the discretionary matching contribution portion of the
Plan and ending on the date on which such Eligible Employee severs employment
with the Employer or is no longer an Eligible Employee as defined in the Plan.

          This Section is effective on and after January 1, 2004.

     3.7 INITIAL ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY PROFIT
SHARING CONTRIBUTIONS APPLICABLE TO CERTAIN EMPLOYEES DESIGNATED TO RECEIVE THE
ACS STATE & LOCAL SOLUTIONS, INC. BENEFIT STRUCTURE

          Eligible Employees who are hired, rehired or transferred to the Employer
on or after January 1, 2004 and who are designated to receive the ACS State &
Local Solutions, Inc. benefit structure must complete an initial one-year
period of service to be eligible to receive discretionary profit sharing
contributions under the plan. Eligible Employees shall receive credit for
prior service with the Employer, or such other employer as may be designated by
the Employer, the Benefits Committee or the Senior Vice-President of Human
Resources in an amendment to Exhibit B and shall be made in a manner not more
favorable to Highly Compensated Employees.

          This Section is effective on and after January 1, 2004.

     3.8 ENTRY DATE TO RECEIVE DISCRETIONARY PROFIT SHARING CONTRIBUTIONS
APPLICABLE TO CERTAIN EMPLOYEES DESIGNATED TO RECEIVE THE ACS STATE & LOCAL
SOLUTIONS, INC. BENEFIT STRUCTURE

          Eligible Employees described in Section 3.7 who have from the time period
beginning with their employment commencement date (the date on which an
Employee first performs an Hour of Service) completed an initial one-year
period of service, will be eligible to participate in the discretionary profit
sharing contribution portion of the Plan the first full pay period immediately
following the date the Eligible Employee completes the initial one-year period
of service or as soon as administratively feasible thereafter.

          Each Eligible Employee described in the above paragraph will share in
discretionary profit contributions for the period beginning on the date the
Eligible Employee commences participation in the discretionary profit sharing
contribution portion of the Plan and ending on the date on which such Eligible
Employee severs employment with the Employer or is no longer an Eligible
Employee as defined in the Plan.

          This Section is effective on and after January 1, 2004.

21

 

     3.9 DEFINITIONS APPLICABLE IN DETERMINING SATISFACTION OF THE INITIAL
ELIGIBILITY SERVICE REQUIREMENTS FOR DISCRETIONARY MATCHING CONTRIBUTIONS AND
DISCRETIONARY PROFIT SHARING CONTRIBUTIONS APPLICABLE TO CERTAIN EMPLOYEES
DESIGNATED TO RECEIVE THE ACS STATE & LOCAL SOLUTIONS, INC. BENEFIT STRUCTURE

          For purposes of Sections 3.5, 3.6, 3.7, 3.8 and this Section 3.9, and for
purposes of determining satisfaction of the initial eligibility service
requirements for discretionary matching contributions on and after January 1,
2004, the following definitions shall apply:

     (a) An “Hour of Service” shall mean each hour for which an Employee
is paid or entitled to payment for the performance of duties for the
Employer.

          For purposes of determining an Eligible Employee’s initial
eligibility to receive discretionary matching contributions, an Employee
will receive credit for the aggregate of all time period(s) commencing
with the Employee’s first day of employment or reemployment and ending on
the date a One Year Break in Service begins. The first day of employment
or reemployment is the first day the Employee performs an Hour of
Service. An Employee will also receive credit for any period of
severance of less than 12 consecutive months. Fractional periods of a
year will be expressed in terms of days.

          A period of severance is a continuous period of time during which
the Employee is not employed by the Employer. Such period begins on the
date the Employee retires, dies, quits or is discharged, or if earlier,
the 12-month anniversary of the date on which the Employee was otherwise
absent from service.

          In the case of an individual who is absent from work for maternity
or paternity reasons, as further defined in the “One Year Break in
Service” definition provided below, the 12-consecutive month period
beginning on the first anniversary of the first date of such absence
shall not constitute a One Year Break in Service.

          If the Employer is a member of an affiliated service group (under
Code section 414(m)), a controlled group of corporations (under Code
section 414(b)), a group of trades or businesses under common control
(under Code section 414(c)) or any other entity required to be aggregated
with the Employer pursuant to Code section 414(o), service will be
credited for any employment for any period of time for any other member
of such group. Service will also be credited for any individual required
under Code section 414(n) or 414(o) to be considered an Employee of any
Employer aggregated under Code section 414(b), (c) or (m).

     (b) A “One Year Break in Service” is a period of severance of at
least 12-consecutive months. A period of severance is a continuous
period of time during which the Employee is not employed by the Employer.
Such period begins on the date the Employee retires, dies, quits or is
discharged, or if earlier, the 12-month anniversary of the date on which
the Employee was otherwise first absent from service.

          In the case of an individual who is absent from work for maternity
or paternity reasons, the 12-consecutive month period beginning on the
first anniversary of the

22

 

	 	 	 	first date of such absence shall not constitute a One Year Break in
Service. For purposes of this paragraph, an absence from work for
maternity or paternity reasons means an absence (1) by reason of the
pregnancy of the individual, (2) by reason of birth of a child of the
individual, (3) by reason of the placement of a child with the individual
in connection with the adoption of such child by such individual, or (4)
for purposes of caring for such child for a period beginning immediately
following such birth or placement.

          This Section is effective on and after January 1, 2004.

ARTICLE IV

CONTRIBUTION AND ALLOCATION

     4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

     The Employer shall contribute to the Plan:

     (a) For each payroll period, the amount of the total Pre-Tax
Contribution elections of all Participants made pursuant to Section
4.2(a), which amount shall be deemed an Elective Contribution.

     (b) For each payroll period, a discretionary matching contribution
equal to a uniform percentage of each such Participant’s Pre-Tax
Contribution, the exact percentage, if any, to be determined each year by
the Employer, which amount, if any, shall be deemed an Employer
Contribution. Except, however, in applying the discretionary matching
percentage for Employees of Affiliated Computer Services, Inc., only
Pre-Tax Contribution elections up to 6% of payroll period Compensation
shall be considered. See the Appendix for the discretionary matching
percentage applicable to other Participants under the Plan.

     (c) For each Plan Year, a discretionary amount, which amount, if
any, shall be deemed an Employer Contribution.

     (d) For each Plan Year, to the extent necessary, the Employer shall
contribute to the Plan the amount necessary to provide the top heavy
minimum contribution.

     All discretionary matching contributions by the Employer shall be
made in cash or invested directly in the ACS Stock Fund. However,
Participants may redirect their discretionary matching contribution into
another investment option in the Plan without restriction after each
discretionary matching contribution is made.

     4.2 PARTICIPANT’S PRE-TAX CONTRIBUTION ELECTION

     (a) Each Participant may elect to defer from 1% to 18% (1% to 30%
for certain employees formerly employed by Motorola, Inc.) of his
eligible Compensation which would have been received in the payroll
period, but for the deferral election. A deferral election (or
modification of an earlier election) may not be made with respect to
Compensation which is currently available on or before the date the
Participant made such election. For purposes of this Section,
Compensation shall be determined prior to any reductions made pursuant to
Code Sections 125, 132(f)(4), 402(e)(3), or 402(h)(1)(B).

23

 

     All Employees who are eligible to make Pre-Tax Contributions under
this Plan and who have attained or will attain age 50 before the close of
the Plan Year shall be eligible to make Catch-Up Contributions in
accordance with, and subject to the limitations of, Code Section 414(v).
Such Catch-Up Contributions shall not be taken into account for purposes
of the provisions of the Plan implementing the required limitations of
Code Sections 402(g) and 415. The Plan shall not be treated as failing
to satisfy the provisions of the Plan implementing the requirements of
Code Sections 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.

     (b) The balance in each Participant’s Elective Contribution Account
shall be fully Vested at all times and shall not be subject to Forfeiture
for any reason.

     (c) Notwithstanding anything in the Plan to the contrary, amounts
held in the Participant’s Elective Contribution Account may not be
distributable (including any offset of loans) earlier than:

(1) a Participant’s severance from employment, Total and
Permanent Disability, or death;

(2) a Participant’s attainment of age 59 1/2;

(3) the termination of the Plan without the establishment or
existence of a “successor plan,” as that term is described in
Regulation 1.401(k)-1(d)(3); or

(4) the proven financial hardship of a Participant, subject
to the limitations of Section 5.11.

     (d) For each Plan Year, a Participant’s Pre-Tax Contribution made
under this Plan and all other plans, contracts or arrangements of the
Employer maintaining this Plan shall not exceed, during any taxable year
of the Participant, the limitation imposed by Code Section 402(g), as in
effect at the beginning of such taxable year. If such dollar limitation
is exceeded, a Participant will be deemed to have notified the
Administrator of such excess amount which shall be distributed in a
manner consistent with Section 4.2(f). The dollar limitation shall be
adjusted annually pursuant to the method provided in Code Section 415(d)
in accordance with Regulations.

     No Participant shall be permitted to have Pre-Tax Contributions made
under this Plan, or any other qualified plan maintained by the Employer
during any taxable year, in excess of the dollar limitation contained in
Code Section 402(g) in effect for such taxable year, except to the extent
permitted under Section 4.2(a) of the Plan and Code Section 414(v), if
applicable.

     (e) In the event a Participant has received a hardship distribution
from his Participant’s Elective Contribution Account pursuant to Section
5.11(b) or pursuant to Regulation 1.401(k)-1(d)(2)(iv)(B) from any other
plan maintained by the Employer, then such Participant shall not be
permitted to elect to have Pre-Tax Contributions contributed to the Plan
on his behalf for a period of six (6) months following the receipt of the
distribution.

24

 

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

(1) the distribution must be made after the date on which the
Plan received the Excess Pre-Tax Contribution;

(2) the Participant shall designate the distribution as
Excess Pre-Tax Contributions; and

(3) the Plan must designate the distribution as a
distribution of Excess Pre-Tax Contributions.

          Any distribution made pursuant to this Section 4.2(f) shall be made
first from unmatched Pre-Tax Contributions and, thereafter, from Pre-Tax
Contributions which are matched. Matching contributions which relate to
such Pre-Tax Contributions shall be forfeited.

     (g) Notwithstanding Section 4.2(f) above, a Participant’s Excess
Pre-Tax Contribution shall be reduced, but not below zero, by any
distribution of Excess Contributions pursuant to Section 4.6(a) for the
Plan Year beginning with or within the taxable year of the Participant.

     (h) Elective Contributions made pursuant to this Section may be
invested in money market certificates or other short-term debt security
acceptable to the Trustee until such time as the allocations pursuant to
Section 4.4 have been made.

     (i) The Employer and the Administrator shall implement the Pre-Tax
Contribution elections provided for herein in accordance with the
following:

(1) A Participant can make his initial Pre-Tax Contribution
election at any time after entering the Plan pursuant to
Section 3.2. The Participant shall

25

 

make a Pre-Tax Contribution election in accordance with the
administrative procedures of the Plan. Such election shall
initially be effective beginning with the pay period
following the acceptance of the Pre-Tax Contribution election
by the Administrator, shall not have retroactive effect and
shall remain in force until revoked.

(2) A Participant may modify a prior election at any time
during the Plan Year and concurrently make a new election in
accordance with the administrative procedures of the Plan.
New elections will become effective as soon as
administratively feasible. Any modification shall not have
retroactive effect and shall remain in force until revoked.

(3) A Participant may elect to prospectively revoke his
Pre-Tax Contribution election in its entirety at any time
during the Plan Year by providing the Administrator with
notice of such revocation in accordance with the
administrative procedures of the Plan. Furthermore, the
termination of the Participant’s employment, or the cessation
of participation for any reason, shall be deemed to revoke
any Pre-Tax Contribution election then in effect, effective
immediately following the close of the pay period within
which such termination or cessation occurs.

     4.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

          The Employer shall generally pay to the Trustee its contribution to the
Plan for each Plan Year within the time prescribed by law, including extensions
of time, for the filing of the Employer federal income tax return for the
Fiscal Year. However, Employer Elective Contributions accumulated through
payroll deductions shall be paid to the Trustee as of the earliest date on
which such contributions can reasonably be segregated from the Employer general
assets, but in any event no later than the fifteenth (15) business day of the
month following the month during which such amounts would otherwise have been
payable to the Participant in cash. The provisions of Department of Labor
regulations 2510.3-102 are incorporated herein by reference. Furthermore, any
additional Employer contributions which are allocable to the Participant’s
Elective Contribution Account for a Plan Year shall be paid to the Plan no
later than the twelve-month period immediately following the close of such Plan
Year.

     4.4 ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS

     (a) The Administrator shall establish and maintain an account in the
name of each Participant to which the Administrator shall credit as of
each Valuation Date or Anniversary Date, as applicable, all amounts
allocated to each such Participant as set forth herein.

     (b) The Employer shall provide the Administrator with all
information required by the Administrator to make a proper allocation of
the Employer contributions for each payroll period or Plan Year, as
applicable. Within a reasonable period of time after the date of receipt
by the Administrator of such information, the Administrator shall
allocate such contribution as follows:

26

 

(1) With respect to the Employer Elective Contribution made
pursuant to Section 4.1(a), to each Participant’s Elective
Contribution Account in an amount equal to each such
Participant’s Pre-Tax Contribution every payroll period.

(2) With respect to the Employer Contribution made pursuant
to Section 4.1(b), to each Employer Contribution Account in
accordance with Section 4.1(b) every payroll period.

Any Participant actively employed during the payroll period
who has otherwise satisfied the requirements of Section 3.8
shall be eligible to share in the matching contribution for
the payroll period.

(3) With respect to the Employer Contribution made pursuant
to Section 4.1(c), to each Employer Contribution Account in
the same proportion that each such Participant’s Compensation
for the year bears to the total Compensation of all
Participants for such year, as of every Anniversary Date;
except that this provision shall not apply to certain
Participants receiving the ACS State & Local Solutions, Inc.
benefit structure.

With respect to Employer Contributions made pursuant to
Section 4.1(c), (excluding discretionary contributions as
defined in Section 4.1(b)) only Participants who are actively
employed on the last day of the Plan Year or who complete
more than 500 Hours of Service during the Plan Year prior to
terminating employment shall be eligible to share in the
discretionary contribution for the year. Furthermore, with
respect to discretionary contributions made pursuant to
Section 4.1(c), in determining whether a Participant has
completed more than 500 Hours of Service during a short Plan
Year, the number of the Hours of Service required shall be
proportionately reduced based on the number of full months in
the short Plan Year. Notwithstanding the foregoing, this
subsection shall not apply to certain Participants receiving
the ACS State & Local Solutions, Inc. benefit structure.

     (c) Forfeitures shall be used to pay administrative expenses of the
Plan, reduce discretionary matching contributions and profit sharing
contributions made by the Employer under the Plan and reduce the
reinstatement of forfeitures under the Plan.

     (d) For any Top Heavy Plan Year, Non-Key Employees not otherwise
eligible to share in the allocation of contributions as provided above,
shall receive the minimum allocation provided for in Section 4.4(f) if
eligible pursuant to the provisions of Section 4.4(h).

     (e) As of each Valuation Date, each Participant’s Combined Account
shall be charged or credited with the net earnings, gains, losses and
expenses as well as any appreciation or depreciation in the market value
using publicly listed fair market values when available or appropriate.

27

 

          Participants’ transfers from other qualified plans deposited in the
general Trust Fund shall share in any earnings and losses (net
appreciation or net depreciation) of the Trust Fund in the same manner
provided above. Each segregated account maintained on behalf of a
Participant shall be credited or charged with its separate earnings and
losses.

     (f) Minimum Allocations Required for Top Heavy Plan Years:
Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum of
the Employer contributions allocated to the Participant’s Combined
Account of each Non-Key Employee shall be equal to at least three percent
(3%) of such Non-Key Employee’s “415 Compensation” (reduced by
contributions and forfeitures, if any, allocated to each Non-Key Employee
in any defined contribution plan included with this plan in a Required
Aggregation Group). However, if (1) the sum of the Employer contributions
allocated to the Participant’s Combined Account of each Key Employee for
such Top Heavy Plan Year is less than three percent (3%) of each Key
Employee’s “415 Compensation” and (2) this Plan is not required to be
included in an Aggregation Group to enable a defined benefit plan to meet
the requirements of Code Section 401(a)(4) or 410, the sum of the
Employer contributions allocated to the Participant’s Combined Account of
each Non-Key Employee shall be equal to the largest percentage allocated
to the Participant’s Combined Account of any Key Employee. However, in
determining whether a Non-Key Employee has received the required minimum
allocation such Non-Key Employee’s Pre-Tax Contributions needed to
satisfy the “Actual Contribution Percentage” tests pursuant to Section
4.7(a) shall not be taken into account. Employer matching 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 contributions
under the Plan. Effective for Plan Years beginning after December 31,
2001, Employer matching 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).

          However, no such minimum allocation shall be required in this Plan
for any Non-Key Employee who participates in another defined contribution
plan subject to Code Section 412 included with this Plan in a Required
Aggregation Group.

     (g) For purposes of the minimum allocations set forth above, the
percentage allocated to the Participant’s Combined Account of any Key
Employee shall be equal to the ratio of the sum of the Employer
contributions allocated on behalf of such Key Employee divided by the
“415 Compensation” for such Key Employee.

     (h) For any Top Heavy Plan Year, the minimum allocations set forth
above shall be allocated to the Participant’s Combined Account of all
Non-Key Employees who are Participants and who are employed by the
Employer on the last day of the Plan Year, including Non-Key Employees
who have (1) failed to complete a Year of Service; and (2) declined to
make mandatory contributions (if required) or, in the case of a cash or
deferred arrangement, elective contributions to the Plan.

     (i) For the purposes of this Section, “415 Compensation” shall be
limited to $200,000. Such amount shall be adjusted for increases in the
cost of living in accordance

28

 

with Code Section 401(a)(17), except that the dollar increase in
effect on January 1 of any calendar year shall be effective for the Plan
Year beginning with or within such calendar year. For any short Plan Year
the “415 Compensation” limit shall be an amount equal to the “415
Compensation” limit for the calendar year in which the Plan Year begins
multiplied by the ratio obtained by dividing the number of full months in
the short Plan Year by twelve (12).

     (j) If a Former Participant is reemployed after five (5) consecutive
1-Year Breaks in Service, then separate accounts shall be maintained as
follows:

(1) one account for nonforfeitable benefits attributable to
pre-break service; and

(2) one account representing his status in the Plan
attributable to post-break service.

     4.5 ACTUAL DEFERRAL PERCENTAGE TESTS

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

(1) The “Actual Deferral Percentage” for the Highly
Compensated Participant group shall not be more than the
“Actual Deferral Percentage” of the Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior
year testing method is used to calculate the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group)
multiplied by 1.25, or

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

However, in order to prevent the multiple use of the
alternative method described in (2) above and in Code Section
401(m)(9)(A), any Highly Compensated Participant eligible to
make elective deferrals pursuant to Section 4.2 and to make
Employee contributions or to receive matching

29

 

contributions under this Plan or under any other plan
maintained by the Employer or an Affiliated Employer shall
have a combination of his Elective Contributions and Employer
matching contributions reduced pursuant to Section 4.6(a) and
Regulation 1.401(m)-2, the provisions of which are
incorporated herein by reference.

The multiple use test described in Treasury Regulation
Section 1.401(m)-2 and the preceding paragraph shall not
apply for Plan Years beginning after December 31, 2001.

     (b) For the purposes of this Section “Actual Deferral Percentage”
means, with respect to the Highly Compensated Participant group and
Non-Highly Compensated Participant group for a Plan Year, the average of
the ratios, calculated separately for each Participant in such group, of
the amount of Employer Elective Contributions allocated to each
Participant’s Elective Contribution Account for such Plan Year, to such
Participant’s “414(s) Compensation” for such Plan Year. The actual
deferral ratio for each Participant and the “Actual Deferral Percentage”
for each group shall be calculated to the nearest one-hundredth of one
percent. Employer Elective Contributions allocated to each Non-Highly
Compensated Participant’s Elective Contribution Account shall be reduced
by Excess Pre-Tax Contributions to the extent such excess amounts are
made under this Plan or any other plan maintained by the Employer.

          Notwithstanding the above, if the prior year test method is used to
calculate the “Actual Deferral Percentage” for the Non-Highly Compensated
Participant group for the first Plan Year of this amendment and
restatement, the “Actual Deferral Percentage” for the Non-Highly
Compensated Participant group for the preceding Plan Year shall be
calculated pursuant to the provisions of the Plan then in effect.

     (c) For the purposes of Sections 4.5(a) and 4.6, a Highly
Compensated Participant and a Non-Highly Compensated Participant shall
include any Employee eligible to make a deferral election pursuant to
Section 4.2, whether or not such deferral election was made or suspended
pursuant to Section 4.2.

          Notwithstanding the above, if the prior year testing method is used
to calculate the “Actual Deferral Percentage” for the Non-Highly
Compensated Participant group for the first Plan Year of this amendment
and restatement, for purposes of Section 4.5(a) and 4.6, a Non-Highly
Compensated Participant shall include any such Employee eligible to make
a deferral election, whether or not such deferral election was made or
suspended, pursuant to the provisions of the Plan in effect for the
preceding Plan Year.

     (d) If the Plan uses the prior year testing method, the “Actual
Deferral Percentage” for the Non-Highly Compensated Participant group is
determined without regard to changes in the group of Non-Highly
Compensated Participants who are eligible under the Plan in the testing
year. However, if the Plan results from, or is otherwise affected by, a
“Plan Coverage Change” that becomes effective during the testing year,
then the “Actual Deferral Percentage” for the Non-Highly Compensated
Participant group for the prior year is the “Weighted Average Of The
Actual Deferral Percentages For The Prior Year

30

 

Subgroups.” Notwithstanding the above, if ninety (90) percent or
more of the total number of Non-Highly Compensated Participants from all
“Prior Year Subgroups” are from a single “Prior Year Subgroup,” then in
determining the “Actual Deferral Percentage” for the Non-Highly
Compensated Participants for the prior year, the Employer may elect to
use the “Actual Deferral Percentage” for Non-Highly Compensated
Participants for the prior year under which that single “Prior Year
Subgroup” was eligible, in lieu of using the weighted averages. For
purposes of this Section the following definitions shall apply:

(1) “Plan Coverage Change” means a change in the group or
groups of eligible Participants on account of (i) the
establishment or amendment of a plan, (ii) a plan merger,
consolidation, or spinoff under Code Section 414(l), (iii) a
change in the way plans within the meaning of Code Section
414(l) are combined or separated for purposes of Regulation
1.401(k)-1(g)(11), or (iv) a combination of any of the
foregoing.

(2) “Prior Year Subgroup” means all Non-Highly Compensated
Participants for the prior year who, in the prior year, were
eligible Participants under a specific Code Section 401(k)
plan maintained by the Employer and who would have been
eligible Participants in the prior year under the plan tested
if the plan coverage change had first been effective as of
the first day of the prior year instead of first being
effective during the testing year.

(3) “Weighted Average Of The Actual Deferral Percentages For
The Prior Year Subgroups” means the sum, for all prior year
subgroups, of the “Adjusted Actual Deferral Percentages.”

(4) “Adjusted Actual Deferral Percentage” with respect to a
prior year subgroup means the Actual Deferral Percentage for
Non-Highly Compensated Participants for the prior year of the
specific plan under which the members of the prior year
subgroup were eligible Participants, multiplied by a
fraction, the numerator of which is the number of Non-Highly
Compensated Participants in the prior year subgroup and the
denominator of which is the total number of Non-Highly
Compensated Participants in all prior year subgroups.

     (e) For the purposes of this Section and Code Sections 401(a)(4),
410(b) and 401(k), if two or more plans which include cash or deferred
arrangements are considered one plan for the purposes of Code Section
401(a)(4) or 410(b) (other than Code Section 410(b)(2)(A)(ii)), the cash
or deferred arrangements included in such plans shall be treated as one
arrangement. In addition, two or more cash or deferred arrangements may
be considered as a single arrangement for purposes of determining whether
or not such arrangements satisfy Code Sections 401(a)(4), 410(b) and
401(k). In such a case, the cash or deferred arrangements included in
such plans and the plans including such arrangements shall be treated as
one arrangement and as one plan for purposes of this Section and Code
Sections 401(a)(4), 410(b) and 401(k). Any adjustment to the Non-Highly
Compensated Participant actual deferral ratio for the prior year shall be
made in accordance with Internal Revenue

31

 

Service Notice 98-1 and any superseding guidance. Plans may be
aggregated under this paragraph (e) only if they have the same plan year.
Notwithstanding the above, if two or more plans which include cash or
deferred arrangements are permissively aggregated under Regulation
1.410(b)-7(d), all plans permissively aggregated must use either the
current year testing method or the prior year testing method for the
testing year.

          Notwithstanding the above, an employee stock ownership plan
described in Code Section 4975(e)(7) or 409 may not be combined with this
Plan for purposes of determining whether the employee stock ownership
plan or this Plan satisfies this Section and Code Sections 401(a)(4),
410(b) and 401(k).

     (f) For the purposes of this Section, if a Highly Compensated
Participant is a Participant under two or more cash or deferred
arrangements (other than a cash or deferred arrangement which is part of
an employee stock ownership plan as defined in Code Section 4975(e)(7) or
409) of the Employer or an Affiliated Employer, all such cash or deferred
arrangements shall be treated as one cash or deferred arrangement for the
purpose of determining the actual deferral ratio with respect to such
Highly Compensated Participant. However, if the cash or deferred
arrangements have different plan years, this paragraph shall be applied
by treating all cash or deferred arrangements ending with or within the
same calendar year as a single arrangement.

     (g) For the purpose of this Section, when calculating the “Actual
Deferral Percentage” for the Non-Highly Compensated Participant group,
the current year testing method shall be used. Any change from the
current year testing method to the prior year testing method shall be
made pursuant to Internal Revenue Service Notice 98-1, Section VII (or
superseding guidance), the provisions of which are incorporated herein by
reference.

     4.6 ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS

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

     (a) Within twelve (12) months after the end of the Plan Year, the
Highly Compensated Participant having the largest amount of Elective
Contributions shall have a portion of his Elective Contributions
distributed to him until the total amount of Excess Contributions has
been distributed, or until the amount of his Elective Contributions
equals the Elective Contributions of the Highly Compensated Participant
having the second largest amount of Elective Contributions. This process
shall continue until the total amount of Excess Contributions has been
distributed. In determining the amount of Excess Contributions to be
distributed with respect to an affected Highly Compensated Participant as
determined herein, such amount shall be reduced pursuant to Section
4.2(f) by any Excess Pre-Tax Contributions previously distributed to such
affected Highly Compensated Participant for his taxable year ending with
or within such Plan Year.

32

 

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

(i) may be postponed but not later than the close of
the Plan Year following the Plan Year to which they are
allocable;

(ii) shall be adjusted for Income;

(iii) shall be adjusted for gain or loss for the period
between the end of the Plan Year and the date of
distribution (the “gap period”); and

(iv) shall be designated by the Employer as a
distribution of Excess Contributions (and Income).

(2) Any distribution of less than the entire amount of Excess
Contributions shall be treated as a pro rata distribution of
Excess Contributions and Income.

(3) Matching contributions which relate to Excess
Contributions shall be forfeited unless the related matching
contribution is distributed as an Excess Aggregate
Contribution pursuant to Section 4.8.

     (b) Within twelve (12) months after the end of the Plan Year, the
Employer may make a special Qualified Non-Elective Contribution on behalf
of certain Non-Highly Compensated Participants in an amount sufficient to
satisfy (or to prevent an anticipated failure of) one of the tests set
forth in Section 4.5(a). Such contribution shall be allocated to the
Participant’s Elective Contribution Account of the Non-Highly Compensated
Participants having the lowest Compensation, until one of the tests set
forth in Section 4.5(a) is satisfied, or until such Non-Highly
Compensated Participant has received his maximum “annual addition” which
for purposes of this Section shall equal the lesser of (1) $40,000
adjusted annually as provided in Code Section 415(d) pursuant to the
Regulations, or (2) one hundred percent (100%) of the Participant’s “415
compensation” for such “limitation year.” If one of the tests set forth
in Section 4.5(a) has not been satisfied, the Non-Highly Compensated
Participant having the second lowest Compensation shall receive the
special Qualified Non-Elective Contribution until one of the tests set
forth in Section 4.5(a) is satisfied, or until such Non-Highly
Compensated Participant has received his maximum “annual addition”
pursuant to this Section. This process shall continue until one of the
tests set forth in Section 4.5(a) has been satisfied.

          However, if the prior year testing method is used, the special
Qualified Non-Elective Contribution shall be contributed in the testing
year and allocated in the prior Plan Year to the Participant’s Elective
Contribution Account on behalf of the Non-Highly Compensated Participant
who was employed by the Employer on the last day of the prior Plan Year
having the lowest Compensation for the prior Plan Year, until one of the
tests set forth in Section 4.5(a) is satisfied, or until such Non-Highly
Compensated Participant has received his maximum “annual addition”
pursuant to this Section. If one of the tests set forth in Section
4.5(a) has not been satisfied, the Non-Highly Compensated Participant
having the

33

 

second lowest Compensation for the prior Plan Year shall receive the
special Qualified Non-Elective Contribution until one of the tests set
forth in Section 4.5(a) is satisfied, or until such Non-Highly
Compensated Participant has received his maximum “annual addition”
pursuant to this Section. This process shall continue until one of the
tests set forth in Section 4.5(a) has been satisfied. Such contribution
shall be made by the Employer prior to the end of the current Plan Year.

          Notwithstanding the above, for Plan Years beginning after December
31, 1998, if the testing method changes from the current year testing
method to the prior year testing method, then for purposes of preventing
the double counting of Qualified Non-Elective Contributions for the first
testing year for which the change is effective, any special Qualified
Non-Elective Contribution on behalf of Non-Highly Compensated
Participants used to satisfy the “Actual Deferral Percentage” or “Actual
Contribution Percentage” test under the current year testing method for
the prior year testing year shall be disregarded.

     (c) If during a Plan Year the projected aggregate amount of Elective
Contributions to be allocated to all Highly Compensated Participants
under this Plan would, by virtue of the tests set forth in Section
4.5(a), cause the Plan to fail such tests, then the Administrator may
automatically reduce proportionately or in the order provided in Section
4.6(a) each affected Highly Compensated Participant’s deferral election
made pursuant to Section 4.2 by an amount necessary to satisfy one of the
tests set forth in Section 4.5(a).

     (d) The provisions of this Section 4.6 shall apply under any prior
restatement of the Plan, or any other plan merged into this Plan in
effect after December 31, 1996, and all such restatements are deemed
amended to incorporate such provisions, notwithstanding any provisions to
the contrary.

     4.7 ACTUAL CONTRIBUTION PERCENTAGE TESTS

     (a) The “Actual Contribution Percentage” for the Highly Compensated
Participant group shall not exceed the greater of:

(1) 125 percent of such percentage for the Non-Highly
Compensated Participant group (for the preceding Plan Year if
the prior year testing method is used to calculate the
“Actual Contribution Percentage” for the Non-Highly
Compensated Participant group); or

(2) the lesser of 200 percent of such percentage for the
Non-Highly Compensated Participant group (for the preceding
Plan Year if the prior year testing method is used to
calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group), or such percentage
for the Non-Highly Compensated Participant group (for the
preceding Plan Year if the prior year testing method is used
to calculate the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group) plus 2 percentage
points. However, to prevent the multiple use of the
alternative method described in this paragraph and Code
Section 401(m)(9)(A), any Highly Compensated Participant
eligible to make elective deferrals pursuant

34

 

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

The multiple use test described in Treasury Regulation
Section 1.401(m)-2 and the last two sentences of the
preceding paragraph shall not apply for Plan Years beginning
after December 31, 2001.

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

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

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

          Notwithstanding the above, if the prior year testing method is used
to calculate the “Actual Contribution Percentage” for the Non-Highly
Compensated Participant group for the first Plan Year of this amendment
and restatement, for purposes of Section 4.7(a), the “Actual Contribution
Percentage” for the Non-Highly Compensated Participant group for the
preceding Plan Year shall be determined pursuant to the provisions of the
Plan then in effect.

     (c) For purposes of determining the “Actual Contribution
Percentage”, only Employer matching contributions contributed to the Plan
prior to the end of the succeeding Plan Year shall be considered. In
addition, the Administrator may elect to take into account, with respect
to Employees eligible to have Employer matching contributions pursuant to
Section 4.1(b) allocated to their accounts, elective deferrals (as
defined in Regulation 1.402(g)-1(b)) and qualified non-elective
contributions (as defined in Code Section 401(m)(4)(C)) contributed to
any plan maintained by the Employer. Such elective deferrals and
qualified non-elective contributions shall be treated as Employer
matching contributions subject to Regulation 1.401(m)-1(b)(5) which is
incorporated herein by reference. However, the Plan Year must be the same
as the plan year of the plan to which the elective deferrals and the
qualified non-elective contributions are made.

     (d) For purposes of this Section and Code Sections 401(a)(4), 410(b)
and 401(m), if two or more plans of the Employer to which matching
contributions, Employee contributions, or both, are made are treated as
one plan for purposes of Code Sections

35

 

401(a)(4) or 410(b) (other than the average benefits test under Code
Section 410(b)(2)(A)(ii)), such plans shall be treated as one plan. In
addition, two or more plans of the Employer to which matching
contributions, Employee contributions, or both, are made may be
considered as a single plan for purposes of determining whether or not
such plans satisfy Code Sections 401(a)(4), 410(b) and 401(m). In such a
case, the aggregated plans must satisfy this Section and Code Sections
401(a)(4), 410(b) and 401(m) as though such aggregated plans were a
single plan. Any adjustment to the Non-Highly Compensated Participant
actual contribution ratio for the prior year shall be made in accordance
with Internal Revenue Service Notice 98-1 and any superseding guidance.
Plans may be aggregated under this paragraph (e) only if they have the
same plan year. Notwithstanding the above, if two or more plans which
include cash or deferred arrangements are permissively aggregated under
Regulation 1.410(b)-7(d), all plans permissively aggregated must use
either the current year testing method or the prior year testing method
for the testing year.

          Notwithstanding the above, an employee stock ownership plan
described in Code Section 4975(e)(7) or 409 may not be aggregated with
this Plan for purposes of determining whether the employee stock
ownership plan or this Plan satisfies this Section and Code Sections
401(a)(4), 410(b) and 401(m).

     (e) If a Highly Compensated Participant is a Participant under two
or more plans (other than an employee stock ownership plan as defined in
Code Section 4975(e)(7) or 409) which are maintained by the Employer or
an Affiliated Employer to which matching contributions, Employee
contributions, or both, are made, all such contributions on behalf of
such Highly Compensated Participant shall be aggregated for purposes of
determining such Highly Compensated Participant’s actual contribution
ratio. However, if the plans have different plan years, this paragraph
shall be applied by treating all plans ending with or within the same
calendar year as a single plan.

     (f) For purposes of Sections 4.7(a) and 4.8, a Highly Compensated
Participant and Non-Highly Compensated Participant shall include any
Employee eligible to have Employer matching contributions (whether or not
a deferral election was made or suspended) or voluntary employee
contributions (whether or not voluntary employee contributions are made)
allocated to his account for the Plan Year.

          Notwithstanding the above, if the prior year testing method is used
to calculate the “Actual Contribution Percentage” for the Non-Highly
Compensated Participant group for the first Plan Year of this amendment
and restatement, for the purposes of Section 4.7(a), a Non-Highly
Compensated Participant shall include any such Employee eligible to have
Employer matching contributions (whether or not a deferral election was
made or suspended) or voluntary employee contributions (whether or not
voluntary employee contributions are made) allocated to his account for
the preceding Plan Year pursuant to the provisions of the Plan then in
effect.

     (g) If the Plan uses the prior year testing method, the “Actual
Contribution Percentage” for the Non-Highly Compensated Participant group
is determined without regard to changes in the group of Non-Highly
Compensated Participants who are eligible

36

 

under the Plan in the testing year. However, if the Plan results
from, or is otherwise affected by, a “Plan Coverage Change” that becomes
effective during the testing year, then the “Actual Contribution
Percentage” for the Non-Highly Compensated Participant group for the
prior year is the “Weighted Average Of The Actual Contribution
Percentages For The Prior Year Subgroups.” Notwithstanding the above, if
ninety (90) percent or more of the total number of Non-Highly Compensated
Participants from all “Prior Year Subgroups” are from a single “Prior
Year Subgroup,” then in determining the “Actual Contribution Percentage”
for the Non-Highly Compensated Participants for the prior year, the
Employer may elect to use the “Actual Contribution Percentage” for
Non-Highly Compensated Participants for the prior year under which that
single “Prior Year Subgroup” was eligible, in lieu of using the weighted
averages. For purposes of this Section the following definitions shall
apply:

(1) “Plan Coverage Change” means a change in the group or
groups of eligible Participants on account of (i) the
establishment or amendment of a plan, (ii) a plan merger,
consolidation, or spinoff under Code Section 414(l), (iii) a
change in the way plans within the meaning of Code Section
414(l) are combined or separated for purposes of Regulation
1.401(k)-1(g)(11), or (iv) a combination of any of the
foregoing.

(2) “Prior Year Subgroup” means all Non-Highly Compensated
Participants for the prior year who, in the prior year, were
eligible Participants under a specific Code Section 401(m)
plan maintained by the Employer and who would have been
eligible Participants in the prior year under the plan tested
if the plan coverage change had first been effective as of
the first day of the prior year instead of first being
effective during the testing year.

(3) “Weighted Average Of The Actual Contribution Percentages
For The Prior Year Subgroups” means the sum, for all prior
year subgroups, of the “Adjusted Actual Contribution
Percentages.”

(4) “Adjusted Actual Contribution Percentage” with respect to
a prior year subgroup means the Actual Contribution
Percentage for Non-Highly Compensated Participants for the
prior year of the specific plan under which the members of
the prior year subgroup were eligible Participants,
multiplied by a fraction, the numerator of which is the
number of Non-Highly Compensated Participants in the prior
year subgroup and the denominator of which is the total
number of Non-Highly Compensated Participants in all prior
year subgroups.

     (h) For the purpose of this Section, when calculating the “Actual
Contribution Percentage” for the Non-Highly Compensated Participant
group, the current year testing method shall be used. Any change from the
current year testing method to the prior year testing method shall be
made pursuant to Internal Revenue Service Notice 98-1, Section VII (or
superseding guidance), the provisions of which are incorporated herein by
reference.

37

 

     4.8 ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS

     (a) In the event (or if it is anticipated) that the “Actual
Contribution Percentage” for the Highly Compensated Participant group
exceeds (or might exceed) the “Actual Contribution Percentage” for the
Non-Highly Compensated Participant group pursuant to Section 4.7(a), the
Administrator (on or before the close of the following Plan Year) shall
direct the Trustee to distribute to the Highly Compensated Participant
having the largest amount of contributions determined pursuant to Section
4.7(b)(2), his Vested portion of such contributions (and Income allocable
to such contributions) and, if forfeitable, forfeit such non-Vested
Excess Aggregate Contributions attributable to Employer matching
contributions (and Income allocable to such forfeitures) until the total
amount of Excess Aggregate Contributions has been distributed, or until
his remaining amount equals the amount of contributions determined
pursuant to Section 4.7(b)(2) of the Highly Compensated Participant
having the second largest amount of contributions. This process shall
continue until the total amount of Excess Aggregate Contributions has
been distributed.

     If the correction of Excess Aggregate Contributions attributable to
Employer matching contributions is not in proportion to the Vested and
non-Vested portion of such contributions, then the Vested portion of the
Employer Contribution Account attributable to Employer matching
contributions after the correction shall be subject to Section 5.5(d), as
applicable.

     (b) Any distribution and/or forfeiture of less than the entire
amount of Excess Aggregate Contributions (and Income) shall be treated as
a pro rata distribution and/or forfeiture of Excess Aggregate
Contributions and Income. Distribution of Excess Aggregate Contributions
shall be designated by the Employer as a distribution of Excess Aggregate
Contributions (and Income). Forfeitures of Excess Aggregate Contributions
shall be treated in accordance with Section 4.4.

     (c) Excess Aggregate Contributions, including forfeited matching
contributions, shall be treated as Employer contributions for purposes of
Code Sections 404 and 415 even if distributed from the Plan.

     (d) The determination of the amount of Excess Aggregate
Contributions with respect to any Plan Year shall be made after first
determining the Excess Contributions, if any, to be treated as voluntary
Employee contributions due to recharacterization for the plan year of any
other qualified cash or deferred arrangement (as defined in Code Section
401(k)) maintained by the Employer that ends with or within the Plan
Year.

     (e) If during a Plan Year the projected aggregate amount of Employer
matching contributions to be allocated to all Highly Compensated
Participants under this Plan would, by virtue of the tests set forth in
Section 4.7(a), cause the Plan to fail such tests, then the Administrator
may automatically reduce proportionately or in the order provided in
Section 4.8(a) each affected Highly Compensated Participant’s projected
share of such contributions by an amount necessary to satisfy one of the
tests set forth in Section 4.7(a).

38

 

     (f) Notwithstanding the above, within twelve (12) months after the
end of the Plan Year, the Employer may make a special Qualified
Non-Elective Contribution on behalf of certain Non-Highly Compensated
Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7(a).
Such contribution shall be allocated to the Employer Contribution Account
of the Non-Highly Compensated Participants having the lowest
Compensation, until one of the tests set forth in Section 4.7 is
satisfied, or until such Non-Highly Compensated Participant has received
his maximum “annual addition” which for purposes of this section shall
equal the lesser of (1) $40,000 adjusted annually as provided in Code
Section 415(d) pursuant to the Regulations, or (2) one hundred percent
(100%) of the Participant’s “415 Compensation” for such “limitation
year.” If one of the tests set forth in Section 4.7 has not been
satisfied, the Non-Highly Compensated Participant having the second
lowest Compensation shall receive the special Qualified Non-Elective
Contribution until one of the tests set forth in Section 4.7 is
satisfied, or until such Non-Highly Compensated Participant has received
his maximum “annual addition” pursuant to this Section. This process
shall continue until one of the tests set forth in Section 4.7 has been
satisfied. A separate accounting of any special Qualified Non-Elective
Contribution shall be maintained in the Employer Contribution Account.

          However, if the prior year testing method is used, the special
Qualified Non-Elective Contribution shall be contributed in the testing
year and allocated in the prior Plan Year to the Employer Contribution
Account on behalf of each Non-Highly Compensated Participant who was
employed by the Employer on the last day of the prior Plan Year having
the lowest Compensation for the prior Plan Year, until one of the tests
set forth in Section 4.7 is satisfied, or until such Non-Highly
Compensated Participant has received his maximum “annual addition”
pursuant to this Section. If one of the tests set forth in Section 4.7
has not been satisfied, the Non-Highly Compensated Participant having the
second lowest Compensation for the prior Plan Year shall receive the
special Qualified Non-Elective Contribution until one of the tests set
forth in Section 4.7 is satisfied, or until such Non-Highly Compensated
Participant has received his maximum “annual addition” pursuant to this
Section. This process shall continue until one of the tests set forth in
Section 4.7 has been satisfied. Such contribution shall be made by the
Employer prior to the end of the current Plan Year. A separate
accounting of any special Qualified Non-Elective Contributions shall be
maintained in the Employer Contribution Account.

          Notwithstanding the above, for Plan Years beginning after December
31, 1998, if the testing method changes from the current year testing
method to the prior year testing method, then for purposes of preventing
the double counting of Qualified Non-Elective Contributions for the first
testing year for which the change is effective, any special Qualified
Non-Elective Contribution on behalf of Non-Highly Compensated
Participants used to satisfy the “Actual Deferral Percentage” or “Actual
Contribution Percentage” test under the current year testing method for
the prior year testing year shall be disregarded.

     (g) The provisions of this Section 4.8 shall apply under any prior
restatement of the Plan, or any other plan merged into this Plan in
effect after December 31, 1996, and all such restatements are deemed
amended to incorporate such provisions, notwithstanding any provisions to
the contrary.

39

 

     4.9 MAXIMUM ANNUAL ADDITIONS

     (a) Except to the extent permitted by Section 4.2(a) of the Plan and
Code Section 414(v), if applicable, the annual addition 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
Sections 401(h) or 419A(f)(2)) which is otherwise treated as an annual
addition. For any short “limitation year,” the dollar limitation in (1)
above shall be reduced by a fraction, the numerator of which is the
number of full months in the short “limitation year” and the denominator
of which is twelve (12).

     (b) For purposes of applying the limitations of Code Section 415,
“annual additions” means the sum credited to a Participant’s accounts for
any “limitation year” of (1) Employer contributions, (2) Employee
contributions, (3) forfeitures, (4) amounts allocated, after March 31,
1984, to an individual medical account, as defined in Code Section
415(l)(2) which is part of a pension or annuity plan maintained by the
Employer and (5) amounts derived from contributions paid or accrued after
December 31, 1985, in taxable years ending after such date, which are
attributable to post-retirement medical benefits allocated to the
separate account of a key employee (as defined in Code Section
419A(d)(3)) under a welfare benefit plan (as defined in Code Section
419(e)) maintained by the Employer. Except, however, the “415
Compensation” percentage limitation referred to in paragraph (a)(2) above
shall not apply to: (1) any contribution for medical benefits (within the
meaning of Code Section 419A(f)(2)) after separation from service which
is otherwise treated as an “annual addition,” or (2) any amount otherwise
treated as an “annual addition” under Code Section 415(l)(1).

     (c) For purposes of applying the limitations of Code Section 415,
the transfer of funds from one qualified plan to another is not an
“annual addition.” In addition, the following are not Employee
contributions for the purposes of Section 4.9(b)(2): (1) rollover
contributions (as defined in Code Sections 402(e)(6), 403(a)(4),
403(b)(8) and 408(d)(3)); (2) repayments of loans made to a Participant
from the Plan; (3) repayments of distributions received by an Employee
pursuant to Code Section 411(a)(7)(B) (cash-outs); (4) repayments of
distributions received by an Employee pursuant to Code Section
411(a)(3)(D) (mandatory contributions); and (5) Employee contributions to
a simplified employee pension excludable from gross income under Code
Section 408(k)(6).

     (d) For purposes of applying the limitations of Code Section 415,
the “limitation year” shall be the Plan Year.

     (e) For the purpose of this Section, all qualified defined
contribution plans (whether terminated or not) ever maintained by the
Employer shall be treated as one defined contribution plan.

40

 

     (f) For the purpose of this Section, if the Employer is a member of
a controlled group of corporations, trades or businesses under common
control (as defined by Code Section 1563(a) or Code Section 414(b) and
(c) as modified by Code Section 415(h)), is a member of an affiliated
service group (as defined by Code Section 414(m)), or is a member of a
group of entities required to be aggregated pursuant to Regulations under
Code Section 414(o), all Employees of such Employers shall be considered
to be employed by a single Employer.

     (g) For the purpose of this Section, if this Plan is a Code Section
413(c) plan, each Employer who maintains this Plan will be considered to
be a separate Employer.

     (h) (1) If a Participant participates in more than one defined
contribution plan maintained by the Employer which have different
Anniversary Dates, the maximum “annual additions” under this Plan shall
equal the maximum “annual additions” for the “limitation year” minus any
“annual additions” previously credited to such Participant’s accounts
during the “limitation year.”

(2) If a Participant participates in both a defined
contribution plan subject to Code Section 412 and a defined
contribution plan not subject to Code Section 412 maintained
by the Employer which have the same Anniversary Date, “annual
additions” will be credited to the Participant’s accounts
under the defined contribution plan subject to Code Section
412 prior to crediting “annual additions” to the
Participant’s accounts under the defined contribution plan
not subject to Code Section 412.

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

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

     4.10 ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

     (a) If, as a result of a reasonable error in estimating a
Participant’s Compensation, a reasonable error in determining the amount
of elective deferrals (within the meaning of Code Section 402(g)(3)) that
may be made with respect to any Participant under the limits of Section
4.9 or other facts and circumstances to which Regulation 1.415-6(b)(6)
shall be

41

 

applicable, the “annual additions” under this Plan would cause the
maximum “annual additions” to be exceeded for any Participant, the
Administrator shall (1) distribute any elective deferrals (within the
meaning of Code Section 402(g)(3)) (plus attributable earnings) or return
any Employee contributions (whether voluntary or mandatory) (plus
attributable earnings), (2) hold any “excess amount” remaining after the
return of any elective deferrals or voluntary Employee contributions in a
“Section 415 suspense account” (3) use the “Section 415 suspense account”
in the next “limitation year” (and succeeding “limitation years” if
necessary) to reduce Employer contributions for that Participant if that
Participant is covered by the Plan as of the end of the “limitation
year,” or if the Participant is not so covered, allocate and reallocate
the “Section 415 suspense account” in the next “limitation year” (and
succeeding “limitation years” if necessary) to all Participants in the
Plan before any Employer or Employee contributions which would constitute
“annual additions” are made to the Plan for such “limitation year” (4)
reduce Employer contributions to the Plan for such “limitation year” by
the amount of the “Section 415 suspense account” allocated and
reallocated during such “limitation year.”

     (b) For purposes of this Article, “excess amount” for any
Participant for a “limitation year” shall mean the excess, if any, of (1)
the “annual additions” which would be credited to his account under the
terms of the Plan without regard to the limitations of Code Section 415
over (2) the maximum “annual additions” determined pursuant to Section
4.9.

     (c) For purposes of this Section, “Section 415 suspense account”
shall mean an unallocated account equal to the sum of “excess amounts”
for all Participants in the Plan during the “limitation year.” The
“Section 415 suspense account” shall not share in any earnings or losses
of the Trust Fund.

     4.11 TRANSFERS FROM QUALIFIED PLANS

     (a) With the consent of the Administrator, amounts may be
transferred from other qualified plans by Participants, provided that the
trust from which such funds are transferred permits the transfer to be
made and the Administrator reasonably relies on information that provides
that the transfer will not jeopardize the tax exempt status of the Plan
or Trust or create adverse tax consequences for the Employer. The amounts
transferred shall be set up either in a separate account herein referred
to as a “Participant’s Rollover Account” or a separate account herein
referred to as a “Transfer Account.” A Participant’s Rollover Account
shall be credited with a qualified rollover of a distribution from a
qualified retirement plan, shall be fully Vested at all times and shall
not be subject to Forfeiture for any reason. A Transfer Account of a
Participant shall be attributable to amounts transferred from a qualified
plan maintained by an Affiliated Employer.

     (b) Amounts in a Participant’s Rollover Account and Transfer Account
shall be held by the Trustee pursuant to the provisions of this Plan and
may not be withdrawn by, or distributed to the Participant, in whole or
in part, except as provided in paragraphs (c) and (d) of this Section.

     (c) With respect to Transfer Accounts, except as permitted by
Regulations (including Regulation 1.411(d)-4), amounts attributable to
elective contributions (as defined

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in Regulation 1.401(k)-1(g)(3)), including amounts treated as
elective contributions, which are transferred from another qualified plan
in a plan-to-plan transfer shall be subject to the distribution
limitations provided for in Regulation 1.401(k)-1(d).

     (d) With respect to a Participant’s Rollover Account, the
Administrator, at the election of the Participant, shall direct the
Trustee to distribute all or a portion of the amount credited to the
Participant’s Rollover Account. Any distributions of amounts held in a
Participant’s Rollover Account shall be made in a manner which is
consistent with and satisfies the provisions of Section 5.5.
Furthermore, such amounts shall be considered as part of a Participant’s
benefit in determining whether an involuntary cash-out of benefits
without Participant consent may be made.

     (e) The Administrator may direct that employee transfers made after
a Valuation Date be invested in money market certificates or other short
term debt security acceptable to the Trustee until such time as the
allocations pursuant to this Plan have been made, at which time they may
remain segregated or be invested as part of the general Trust Fund, to be
determined by the Administrator.

     (f) With respect to a Participant’s Rollover Account and a Transfer
Account and for purposes of this Section, the term “qualified plan” shall
mean any tax qualified plan under Code Section 401(a). The term “amounts
transferred from other qualified plans” shall mean: (i) amounts
transferred to this Plan directly from another qualified plan; (ii)
distributions from another qualified plan which are eligible rollover
distributions and which are either transferred by the Employee to this
Plan within sixty (60) days following his receipt thereof or are
transferred pursuant to a direct rollover; (iii) amounts transferred to
this Plan from a conduit individual retirement account provided that the
conduit individual retirement account has no assets other than assets
which (A) were previously distributed to the Employee by another
qualified plan as a lump-sum distribution (B) were eligible for tax-free
rollover to a qualified plan and (C) were deposited in such conduit
individual retirement account within sixty (60) days of receipt thereof
and other than earnings on said assets; and (iv) amounts distributed to
the Employee from a conduit individual retirement account meeting the
requirements of clause (iii) above, and transferred by the Employee to
this Plan within sixty (60) days of his receipt thereof from such conduit
individual retirement account.

     (g) With respect to a Participant’s Rollover Account and a Transfer
Account, prior to accepting any transfers to which this Section applies,
the Administrator may require the Employee to establish that the amounts
to be transferred to this Plan meet the requirements of this Section and
may also require the Employee to provide an opinion of counsel
satisfactory to the Employer that the amounts to be transferred meet the
requirements of this Section.

     (h) With respect to a Transfer Account, notwithstanding anything
herein to the contrary, a transfer directly to this Plan from another
qualified plan (or a transaction having the effect of such a transfer)
shall only be permitted if it will not result in the elimination or
reduction of any “Section 411(d)(6) protected benefit” as described in
Section 6.1. Furthermore, the Plan shall not accept a direct transfer of
assets from a defined benefit plan,

43

 

from a defined contribution plan that is subject to the funding
requirements of Code Section 412, or any plan that is subject to the
requirements of Code Section 401(a)(11).

     (i) The Plan may accept Participant rollover contributions and/or
direct rollovers of distributions made after December 31, 2001, from the
types of plans specified below:

	 	(1)	 	Direct Rollovers

(i) a qualified plan described in Code Sections 401(a)
or 403(a), excluding after-tax employee contributions;

(ii) a qualified plan described in Code Sections 401(a)
or 403(a), including after-tax employee contributions;

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

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

	 	(2)	 	Participant Rollover Contributions from Other Plans

(i) a qualified plan described in Code Sections 401(a)
or 403(a);

(ii) an annuity contract described in Code Section
403(b); and

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

	 	(3)	 	Participant Rollover Contributions from IRAs

The Plan may accept a Participant rollover contribution
of the portion of a distribution from an individual
retirement account or annuity described in Code
Sections 408(a) or 408(b) that is eligible to be rolled
over and would otherwise be includible in gross income.

     4.12 DIRECTED INVESTMENT ACCOUNT

     (a) Participants shall direct the Trustee to invest all of their
accounts in specific funds or other investments permitted under the Plan.
Each Participant shall make an investment election in the manner and
form prescribed by the Administrator directing the manner in which the
contributions made on his behalf shall be invested. A Participant’s
investment election shall specify the percentage, in the percentage
increments prescribed by the Administrator, of such contributions that
shall be allocated to one or more of the Investment Funds with the sum of
such percentage equaling 100 percent. The investment election by a
Participant shall remain in effect until his entire interest under the
Plan is

44

 

distributed or forfeited in accordance with the provisions of the
Plan or until he records a change of investment election with the
Administrator, in such form as the Administrator shall prescribe. If
recorded in accordance with any rules prescribed by the Administrator and
subject to any timing restrictions imposed with respect to the underlying
investment options, a Participant’s change of investment election may be
implemented effective as of the business day on which the Administrator
receives the Participant’s instructions.

     (b) All contributions made on a Participant’s behalf shall be
deposited in the Trust and allocated among the Investment Funds in
accordance with the Participant’s effective investment election.

     (c) A Participant may elect to transfer investments from any
investment fund to any other investment fund, subject to any restrictions
the Administrator may prescribe. The Participant’s transfer election
shall specify either (i) a percentage, in the percentage increments
prescribed by the Administrator, of the amount eligible for transfer,
which percentage may not exceed 100 percent, or (ii) a dollar amount that
is to be transferred. Any transfer election must be recorded with the
Administrator, in such form as the Administrator shall prescribe.
Subject to any restrictions pertaining to a particular investment fund,
if recorded in accordance with any rules prescribed by the Administrator,
a Participant’s transfer election may be implemented effective as of the
business day on which the Administrator receives the Participant’s
instructions.

     (d) The Plan is intended to constitute a plan described in ERISA
Section 404(c) and regulations issued thereunder. The fiduciaries of the
Plan may be relieved of liability for any losses that are the direct and
necessary result of investment instructions given by a Participant, his
Beneficiary, or an alternate payee under a qualified domestic relations
order.

     (e) Notwithstanding any other provision of the Plan to the contrary,
the Administrator shall have the authority to decline investment
instructions of Participants or Beneficiaries where it deems appropriate
and may exercise this authority if it believes it would be imprudent not
to do so in fulfilling its fiduciary role under ERISA.

     4.13 ACS STOCK FUND

     (a) The ACS Stock Fund consists primarily of Affiliated Computer
Services, Inc. Class A common stock. The ACS Stock Fund also includes
cash or short-term liquid investments in amounts designed to satisfy
daily Participant exchange or withdrawal requests. A Participant’s
interest in the ACS Stock Fund will be denominated as “units.” Shares of
Company stock held in the ACS Stock Fund and dividends and other
distributions on Company stock shall not be specifically allocated to
Participants’ accounts. The value of a unit will fluctuate based upon
various factors, including the market value of and dividends paid on
Company stock, earnings and losses on cash or cash equivalent investments
held in the ACS Stock Fund, ACS Stock Fund expenses and Plan
administration expenses allocated to the ACS Stock Fund.

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     (b) The value of each Participant’s interest in the ACS Stock Fund
will be based on the proportion of his investment in the ACS Stock Fund
to the total investment in the ACS Stock Fund of all Participants.

     (c) All dividends paid on shares of Company stock in the ACS Stock
Fund shall be credited to the ACS Stock Fund. Dividends on these shares
are added to the ACS Stock Fund without allocating additional units in
the ACS Stock Fund to Participants. The Trustee may use any such
dividends as are paid in cash to purchase additional shares of Company
stock for the ACS Stock Fund or may hold such funds as cash to meet the
cash demands of the ACS Stock Fund. Any Company stock received by the
Trustee as a stock split or dividend, or as a result of a reorganization
or other recapitalization, will be added to the assets of the ACS Stock
Fund. Any other property (other than shares of Company stock) received
by the Trustee in respect of assets allocated to the ACS Stock Fund may
be sold by the Trustee and the proceeds added to the ACS Stock Fund as
cash or used to purchase additional shares of Company stock. Any rights
to subscribe to additional shares of Company stock may be sold by the
Trustee and the proceeds credited to the ACS Stock Fund.

     (d) Participants who have invested in the ACS Stock Fund may direct
the Trustee how to vote (or tender, if applicable) Company stock. The
Trustee will determine each Participant’s proportional share of the
Company stock in the ACS Stock Fund as of the applicable record date
(based on the number of units allocated to the Participant’s Accounts)
and solicit the Participant’s instructions. The Trustee shall vote
(and/or tender) this stock according to the Participant’s directions. The
Trustee shall not vote stock in the ACS Stock Fund for which it does not
receive directions.

     (e) Shares of Company stock will be purchased or sold for the ACS
Stock Fund in the open market or in privately negotiated transactions.
The Trustee, or its designated agent, may limit the daily volume of
purchases and sales to the extent it believes it will be in the interest
of Participants to do so.

ARTICLE V

DETERMINATION AND DISTRIBUTION OF BENEFITS

     5.1 DETERMINATION OF BENEFITS UPON RETIREMENT

     Every Participant may terminate his employment with the Employer and
retire for the purposes hereof on his Normal Retirement Date. Upon a
Participant’s Retirement Date or attainment of his Normal Retirement Date
without termination of employment with the Employer, or as soon thereafter as
is practicable, the Trustee shall distribute, at the election of the
Participant, all amounts credited to such Participant’s Combined Account in
accordance with Section 5.5.

     5.2 DETERMINATION OF BENEFITS UPON DEATH

     (a) Upon the death of a Participant before his Retirement Date or
other termination of his employment, all amounts credited to such
Participant’s Combined Account shall become fully Vested. The
Administrator shall direct the Trustee, in

46

 

accordance with the provisions of Sections 5.6 and 5.7, to
distribute the balance of the deceased Participant’s accounts to the
Participant’s Beneficiary.

     (b) Upon the death of a Former Participant, the Administrator shall
direct the Trustee, in accordance with the provisions of Sections 5.6 and
5.7, to distribute any remaining Vested amounts credited to the accounts
of a deceased Former Participant to such Former Participant’s
Beneficiary.

     (c) Any security interest held by the Plan by reason of an
outstanding loan to the Participant or Former Participant shall be taken
into account in determining the balance of the Participant’s or Former
Participant’s account.

     (d) The Administrator may require such proper proof of death and
such evidence of the right of any person to receive payment of the
account of a deceased Participant or Former Participant as the
Administrator may deem desirable. The Administrator’s determination of
death and of the right of any person to receive payment shall be
conclusive.

     (e) The Beneficiary of the account balance payable pursuant to this
Section shall be the Participant’s spouse. Except, however, the
Participant may designate a Beneficiary other than his spouse if:

(1) the spouse has waived the right to be the Participant’s
Beneficiary, or

(2) the Participant is legally separated or has been
abandoned (within the meaning of local law) and the
Participant has a court order to such effect (and there is no
“qualified domestic relations order” as defined in Code
Section 414(p) which provides otherwise), or

(3) the Participant has no spouse, or

(4) the spouse cannot be located.

          In such event, the designation of a Beneficiary shall be made on a
form satisfactory to the Administrator. A Participant may at any time
revoke his designation of a Beneficiary or change his Beneficiary in
accordance with administrative guidelines. However, the Participant’s
spouse must again consent in accordance with administrative guidelines to
any change in Beneficiary unless the original consent acknowledged that
the spouse had the right to limit consent only to a specific Beneficiary
and that the spouse voluntarily elected to relinquish such right. In the
event no valid designation of Beneficiary exists at the time of the
Participant’s death, the account balance shall be payable to his estate.

     (f) Any consent by the Participant’s spouse to waive any rights as
the beneficiary must be in accordance with administrative guidelines,
must acknowledge the effect of such waiver, and be witnessed by a Plan
representative or a notary public. Further, the spouse’s consent must be
irrevocable and must acknowledge the specific nonspouse Beneficiary.

     (g) Upon divorce, the Participant’s designation of his spouse as
beneficiary shall be automatically revoked. The Participant must
complete another beneficiary designation

47

 

form upon divorce, otherwise, the Participant’s account balance
shall be payable to his estate.

     5.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY

     In the event of a Participant’s Total and Permanent Disability prior to
his Retirement Date or other termination of his employment, all amounts
credited to such Participant’s Combined Account shall become fully Vested. In
the event of a Participant’s Total and Permanent Disability, the Trustee, in
accordance with the provisions of Sections 5.5 and 5.7, shall distribute to
such Participant all amounts credited to such Participant’s Combined Account as
though he had retired.

     5.4 DETERMINATION OF BENEFITS UPON TERMINATION

     (a) If a Participant’s employment with the Employer is terminated
for any reason other than death, Total and Permanent Disability or
retirement, such Participant shall be entitled to a distribution of his
account as provided hereinafter pursuant to this Section 5.4.

          Distribution of the funds due to a Terminated Participant shall be
made on the occurrence of an event which would result in the distribution
had the Terminated Participant remained in the employ of the Employer
(upon the Participant’s death, Total and Permanent Disability or Normal
Retirement). However, at the election of the Participant, the
Administrator shall direct the Trustee to cause the entire Vested portion
of the Terminated Participant’s Combined Account to be payable to such
Terminated Participant. Any distribution under this paragraph shall be
made in a manner which is consistent with and satisfies the provisions of
Section 5.5, including, but not limited to, all notice and consent
requirements of Code Sections 417 and 411(a)(11) and the Regulations
thereunder.

     If the value of a Terminated Participant’s Vested account balance
derived from Employer and Employee contributions does not exceed $5,000
as of the date of the termination, the Administrator shall direct the
Trustee to cause the entire Vested account balance to be paid to such
Participant in a single cash payment.

     (b) The Vested portion of any Employer Contribution Account shall be
a percentage of the total amount credited to the Employer Contribution
Account determined on the basis of the Participant’s number of Years of
Service. Discretionary matching contributions made pursuant to Section
4.1(b) shall vest as specified in the Appendix.

     (c) Discretionary profit sharing contributions shall vest as
specified in the Appendix. Discretionary profit sharing contributions
made to certain Participants receiving the ACS State & Local Solutions,
Inc. benefit structure are made on a payroll basis without regard to year
end employment or number of hours of service.

     (d) Notwithstanding the vesting schedules specified in the Appendix,
the Vested percentage of an Employer Contribution Account shall not be
less than the Vested percentage attained as of the later of the effective
date or adoption date of this amendment and restatement.

48

 

     (e) A Participant who transfers employment among the Employer and/or
the Participating Employers shall become subject to the plan provisions
of the new employer.

     (f) Notwithstanding the vesting schedule above, upon the complete
discontinuance of the Employer contributions to the Plan or upon any full
or partial termination of the Plan, all amounts credited to the account
of any affected Participant shall become 100% Vested and shall not
thereafter be subject to Forfeiture.

     (g) The computation of a Participant’s nonforfeitable percentage of
his interest in the Plan shall not be reduced as the result of any direct
or indirect amendment to this Plan. For this purpose, the Plan shall be
treated as having been amended if the Plan provides for an automatic
change in vesting due to a change in top heavy status. In the event that
the Plan is amended to change or modify any vesting schedule, a
Participant with at least three (3) Years of Service as of the expiration
date of the election period may elect to have his nonforfeitable
percentage computed under the Plan without regard to such amendment. If a
Participant fails to make such election, then such Participant shall be
subject to the new vesting schedule. The Participant’s election period
shall commence on the adoption date of the amendment and shall end 60
days after the latest of:

(1) the adoption date of the amendment,

(2) the effective date of the amendment, or

(3) the date the Participant receives written notice of the
amendment from the Employer or Administrator.

     (h) (1) If any Former Participant shall be reemployed by the
Employer before a 1-Year Break in Service occurs, he shall continue to
participate in the Plan in the same manner as if such termination had not
occurred.

(2) If any Former Participant shall be reemployed by the
Employer before five (5) consecutive 1-Year Breaks in
Service, and such Former Participant had received a
distribution of his entire Vested interest prior to his
reemployment, his forfeited account shall be reinstated only
if he repays the full amount distributed to him before the
earlier of five (5) years after the first date on which the
Participant is subsequently reemployed by the Employer or the
close of the first period of five (5) consecutive 1-Year
Breaks in Service commencing after the distribution. In the
event the Former Participant does repay the full amount
distributed to him, the undistributed portion of the Employer
Contribution Account must be restored in full, unadjusted by
any gains or losses occurring subsequent to the Valuation
Date coinciding with or preceding his termination. The source
for such reinstatement shall first be any Forfeitures
occurring during the year. If such source is insufficient,
then the Employer shall contribute an amount which is
sufficient to restore any such forfeited Accounts provided,
however, that if a discretionary contribution is made for
such year pursuant to Section 4.1(d), such contribution shall
first be

49

 

applied to restore any such Accounts and the remainder shall
be allocated in accordance with Section 4.4.

(3) If any Former Participant is reemployed after a 1-Year
Break in Service has occurred, Years of Service shall include
Years of Service prior to his 1-Year Break in Service subject
to the following rules:

(i) Any Former Participant who under the Plan does not
have a nonforfeitable right to any interest in the Plan
resulting from Employer contributions shall lose
credits otherwise allowable under (i) above if his
consecutive 1-Year Breaks in Service equal or exceed
the greater of (A) five (5) or (B) the aggregate number
of his pre-break Years of Service;

(ii) After five (5) consecutive 1-Year Breaks in
Service, a Former Participant’s Vested Account balance
attributable to pre-break service shall not be
increased as a result of post-break service;

(iii) If a Former Participant is reemployed by the
Employer, he shall participate in the Plan immediately
on his date of reemployment.

     5.5 DISTRIBUTION OF BENEFITS

     (a) The Administrator, pursuant to the election of the Participant,
shall direct the Trustee to distribute to a Participant or his
Beneficiary any amount to which he is entitled under the Plan in one
single payment in cash or in property.

     (b) Any distribution to a Participant whose account balance exceeds
$5,000 shall require such Participant’s consent if such distribution
occurs prior to the later of his Normal Retirement Age or age 62. With
regard to this required consent:

(1) The Participant must be informed of his right to defer
receipt of the distribution. If a Participant fails to
consent, it shall be deemed an election to defer the
distribution of any benefit. However, any election to defer
the receipt of benefits shall not apply with respect to
distributions which are required under Section 5.5(c).

(2) Notice of the rights specified under this paragraph shall
be provided no less than 30 days and no more than 90 days
before the first day on which all events have occurred which
entitle the Participant to such benefit.

(3) Written consent of the Participant to the distribution
must not be made before the Participant receives the notice
and must not be made more than 90 days before the first day
on which all events have occurred which entitle the
Participant to such benefit.

50

 

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

If a distribution is one to which Code Sections 401(a)(11)
and 417 do not apply, such distribution may commence less
than 30 days after the notice required under Regulation
1.411(a)–11(c) is given, provided that: (1) the
Administrator clearly informs the Participant that the
Participant has a right to a period of at least 30 days after
receiving the notice to consider the decision of whether or
not to elect a distribution (and, if applicable, a particular
distribution option), and (2) the Participant, after
receiving the notice, affirmatively elects a distribution.

     (c) Notwithstanding any provision in the Plan to the contrary, the
distribution of a Participant’s benefits shall be made in accordance with
the following requirements and shall otherwise comply with Code Section
401(a)(9) and the Regulations thereunder (including Regulation
1.401(a)(9)-2), the provisions of which are incorporated herein by
reference:

(1) A Participant’s account shall be distributed to him not
later than April 1st of the calendar year following the later
of (i) the calendar year in which the Participant attains age
70 1/2 or (ii) the calendar year in which the Participant
retires, provided, however, that this clause (ii) shall not
apply in the case of a Participant who is a “five (5) percent
owner” at any time during the five (5) Plan Year period
ending in the calendar year in which he attains age 70 1/2
or, in the case of a Participant who becomes a “five (5)
percent owner” during any subsequent Plan Year, clause (ii)
shall no longer apply and the required beginning date shall
be the April 1st of the calendar year following the calendar
year in which such subsequent Plan Year ends.

(2) Distributions to a Participant and his Beneficiaries
shall only be made in accordance with the incidental death
benefit requirements of Code Section 401(a)(9)(G) and the
Regulations thereunder.

     (d) If a distribution is made at a time when a Participant is not
fully Vested in his Employer Contribution Account and the Participant may
increase the Vested percentage in such account:

(1) a separate account shall be established for the
Participant’s interest in the Plan as of the time of the
distribution; and

(2) at any relevant time, the Participant’s Vested portion of
the separate account shall be equal to an amount (“X”)
determined by the formula:

X equals P(AB plus (R x D)) - (R x D)

For purposes of applying the formula: P is the Vested
percentage at the relevant time, AB is the account balance at
the relevant time, D is the amount of distribution, and R is
the ratio of the account balance at the relevant time to the
account balance after distribution.

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     5.6 DISTRIBUTION OF ACCOUNT BALANCE UPON DEATH

     The account balance payable pursuant to Section 5.2 shall be paid to the
Participant’s Beneficiary in one single payment in cash or in property by
December 31st of the calendar year in which the fifth anniversary of his date
of death occurs.

     5.7 TIME OF SEGREGATION OR DISTRIBUTION

          Except as limited by Sections 5.5 and 5.6, whenever the Trustee is to make
a distribution, the distribution may be made or begun as soon as is
practicable. However, unless a Former Participant elects in writing to defer
the receipt of benefits (such election may not result in a death benefit that
is more than incidental), the payment of benefits shall begin not later than
the 60th day after the close of the Plan Year in which the latest of the
following events occurs: (a) the date on which the Participant attains the
earlier of age 65 or the Normal Retirement Age specified herein; (b) the 10th
anniversary of the year in which the Participant commenced participation in the
Plan; or (c) the date the Participant terminates his service with the Employer.

     5.8 DISTRIBUTION FOR MINOR BENEFICIARY

          In the event a distribution is to be made to a minor, then the
Administrator may direct that such distribution be paid to the legal guardian,
or if none, to a parent of such Beneficiary or a responsible adult with whom
the Beneficiary maintains his residence, or to the custodian for such
Beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if such
is permitted by the laws of the state in which said Beneficiary resides. Such a
payment to the legal guardian, custodian or parent of a minor Beneficiary shall
fully discharge the Trustee, Employer, and Plan from further liability on
account thereof.

     5.9 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

          In the event that all, or any portion, of the distribution payable to a
Participant or his Beneficiary hereunder shall, at the later of the
Participant’s attainment of age 62 or his Normal Retirement Age, remain unpaid
solely by reason of the inability of the Administrator, after such efforts the
administrator deems reasonable, to ascertain the whereabouts of such
Participant or his Beneficiary, the amount so distributable, shall be treated
as a Forfeiture pursuant to the Plan. In attempting to determine the
whereabouts of a Participant or Beneficiary, the Administrator will use
reasonable efforts which may include using the Internal Revenue Service’s
Letter Forwarding Program as specified in Revenue Procedure 94-22.

          In the event that all, or any portion, of the distribution payable to a
Participant or his Beneficiary hereunder shall, remain unpaid solely by reason
of the inability of the Administrator, after such efforts the administrator
deems reasonable, to ascertain the whereabouts of such Participant or his
Beneficiary, the amount so distributable, if under $5,000, regardless of the
age of the Participant, shall be treated as a Forfeiture pursuant to the Plan.

          In the event a Participant or Beneficiary is located subsequent to his
account balance being treated as a Forfeiture, such benefit shall be restored
unadjusted for earnings or losses.

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     5.10 PRE-RETIREMENT DISTRIBUTION

          At such time as a Participant shall have attained the age of 59-1/2 years,
the Administrator, at the election of the Participant, shall direct the Trustee
to distribute all or a portion of the Vested amount then credited to the
accounts maintained on behalf of the Participant. In the event that the
Administrator makes such a distribution, the Participant shall continue to be
eligible to participate in the Plan on the same basis as any other Employee.
Any distribution made pursuant to this Section shall be made in a manner
consistent with Section 5.5.

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

     5.11 ADVANCE DISTRIBUTION FOR HARDSHIP

     (a) The Administrator, at the election of the Participant, shall
direct the Trustee to distribute to any Participant in any one Plan Year
up to the lesser of 100% of his Vested Participant’s Elective
Contribution Account and Employer Contribution Account valued as of the
last Valuation Date or the amount necessary to satisfy the immediate and
heavy financial need of the Participant. Any distribution made pursuant
to this Section shall be deemed to be made as of the Valuation Date
immediately preceding the date of distribution, and the Participant’s
Elective Contribution Account and Employer Contribution Account shall be
reduced accordingly. Withdrawal under this Section is deemed to be on
account of an immediate and heavy financial need of the Participant if
the withdrawal is for:

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

(2) The costs directly related to the purchase of a principal
residence for the Participant (excluding mortgage payments);

(3) Payment of tuition, related educational fees, and room
and board expenses for the next twelve (12) months of
post-secondary education for the Participant, his spouse,
children, or dependents; or

(4) Payments necessary to prevent the eviction of the
Participant from his principal residence or foreclosure on
the mortgage of the Participant’s principal residence.

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

(1) The distribution is not in excess of the amount of the
immediate and heavy financial need of the Participant. The
amount of the immediate and heavy financial need may include
any amounts necessary to pay any federal,

53

 

state, or local income taxes or penalties reasonably
anticipated to result from the distribution;

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

(3) A Participant who receives a distribution of Pre-Tax
Contributions after December 31, 2001, on account of hardship
shall be prohibited from making Pre-Tax Contributions under
this and all other plans of the Employer for 6 months after
receipt of the distribution. A Participant who receives a
distribution of Pre-Tax Contributions in calendar year 2001
on account of hardship shall be prohibited from making
Pre-Tax Contributions under this and all other plans of the
employer for 6 months after receipt of the distribution or
until January 1, 2002, if later.

     (c) Notwithstanding the above, distributions from the Participant’s
Elective Contribution Account pursuant to this Section shall be limited,
as of the date of distribution, to the Participant’s Elective
Contribution Account as of the end of the last Plan Year ending before
July 1, 1989, plus the total Participant’s Pre-Tax Compensation after
such date, reduced by the amount of any previous distributions pursuant
to this Section and Section 5.10.

     (d) Any distribution made pursuant to this Section shall be made in
a manner which is consistent with and satisfies the provisions of Section
5.5.

     5.12 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

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

     5.13 DIRECT ROLLOVER

     (a) Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee’s election under this Section, a
distributee may elect, at the time and in the manner prescribed by the
Administrator, to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee
in a direct rollover.

     (b) For purposes of this Section the following definitions shall
apply:

(1) An eligible rollover distribution is any distribution of
all or any portion of the balance to the credit of the
distributee, except that an eligible

54

 

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

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 Sections 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.

(2) An eligible retirement plan is an individual retirement
account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an
annuity plan described in Code Section 403(a), or a qualified
trust described in Code Section 401(a), that accepts the
distributee’s eligible rollover distribution. However, in the
case of an eligible rollover distribution to the surviving
spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity. An
eligible retirement plan shall also mean an annuity contract
described in Code Section 403(b) and an eligible plan under
Code Section 457(b) which 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 relation order, as defined
in Code Section 414(p).

(3) A distributee includes an Employee or former Employee. In
addition, the Employee’s or former Employee’s surviving
spouse and the Employee’s or former Employee’s spouse or
former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p),
are distributees with regard to the interest of the spouse or
former spouse.

55

 

(4) A direct rollover is a payment by the Plan to the
eligible retirement plan specified by the distributee.

     5.14 ELIMINATION OF LOOKBACK RULE

          Notwithstanding anything in this Article to the contrary, the “lookback
rule” (the “lookback rule” provides that for purposes of determining whether a
distribution may be made without consent, if the value at the time of a prior
distribution exceeded the applicable dollar threshold (e.g., $5,000) then the
value at any subsequent time is deemed to exceed the threshold) will not apply
to any distributions made on or after October 17, 2000.

ARTICLE VI

AMENDMENT, TERMINATION, MERGERS AND LOANS

     6.1 AMENDMENT

     (a) The Employer shall have the right at any time to amend the Plan,
subject to the limitations of this Section. However, any amendment which
affects the rights, duties or responsibilities of the Administrator,
other than an amendment to remove the Administrator, may only be made
with the Administrator’s written consent. Any such amendment shall become
effective as provided therein upon its execution. The Trustee shall not
be required to execute any such amendment unless the Trust provisions
contained herein are a part of the Plan and the amendment affects the
duties of the Trustee hereunder.

     Notwithstanding the foregoing, the Benefits Committee has the
authority to approve administrative amendments to the Plan, but such
authority shall extend only to the amendments that do not significantly
increase the cost to the Employer related to the Plan or do not
significantly change the benefits under the Plan. The Senior Vice
President of Human Resources has the authority to execute those
amendments approved by the Benefits Committee.

     (b) No amendment to the Plan shall be effective if it authorizes or
permits any part of the Trust Fund (other than such part as is required
to pay taxes and administration expenses) to be used for or diverted to
any purpose other than for the exclusive benefit of the Participants or
their Beneficiaries or estates; or causes any reduction in the amount
credited to the account of any Participant; or causes or permits any
portion of the Trust Fund to revert to or become property of the
Employer.

     (c) Except as permitted by Regulations, no Plan amendment or
transaction having the effect of a Plan amendment (such as a merger, plan
transfer or similar transaction) shall be effective to the extent it
eliminates or reduces any “Section 411(d)(6) protected benefit” or adds
or modifies conditions relating to “Section 411(d)(6) protected benefits”
the result of which is a further restriction on such benefit unless such
protected benefits are preserved with respect to benefits accrued as of
the later of the adoption date or effective date of the amendment.
“Section 411(d)(6) protected benefits” are benefits described in Code
Section 411(d)(6)(A), early retirement benefits and retirement-type
subsidies, and optional forms of benefit.

56

 

     6.2 TERMINATION

     (a) The Employer shall have the right at any time to terminate the
Plan by delivering to the Trustee and Administrator written notice of
such termination. Upon any full or partial termination, all amounts
credited to the affected Participants’ Combined Accounts shall become
100% Vested as provided in Section 5.4 and shall not thereafter be
subject to forfeiture, and all unallocated amounts shall be allocated to
the accounts of all Participants in accordance with the provisions
hereof.

     (b) Upon the full termination of the Plan, the Employer shall direct
the distribution of the assets of the Trust Fund to Participants in a
manner which is consistent with and satisfies the provisions of Section
5.5. Distributions to a Participant shall be made in cash, in kind or
through the purchase of irrevocable nontransferable deferred commitments
from an insurer. Except as permitted by Regulations, the termination of
the Plan shall not result in the reduction of “Section 411(d)(6)
protected benefits” in accordance with Section 6.1(c).

     6.3 MERGER OR CONSOLIDATION

          This Plan may be merged or consolidated with, or its assets and/or
liabilities may be transferred to any other plan and trust only if the benefits
which would be received by a Participant of this Plan, in the event of a
termination of the plan immediately after such transfer, merger or
consolidation, are at least equal to the benefits the Participant would have
received if the Plan had terminated immediately before the transfer, merger or
consolidation, and such transfer, merger or consolidation does not otherwise
result in the elimination or reduction of any “Section 411(d)(6) protected
benefits” in accordance with Section 6.1(c).

     6.4 LOANS TO PARTICIPANTS

     (a) The Trustee may, in the Trustee’s discretion, make loans to
Participants and Beneficiaries under the following circumstances: (1)
loans shall be made available to all Participants and Beneficiaries on a
reasonably equivalent basis; (2) loans shall not be made available to
Highly Compensated Employees in an amount greater than the amount made
available to other Participants and Beneficiaries; (3) loans shall bear a
reasonable rate of interest; (4) loans shall be adequately secured; and
(5) loans shall provide for repayment over a reasonable period of time.

     (b) Loans made pursuant to this Section (when added to the
outstanding balance of all other loans made by the Plan to the
Participant) shall be limited to the lesser of:

(1) $50,000 reduced by the excess (if any) of the highest
outstanding balance of loans from the Plan to the Participant
during the one year period ending on the day before the date
on which such loan is made, over the outstanding balance of
loans from the Plan to the Participant on the date on which
such loan was made, or

(2) one-half (1/2) of the present value of the vested account
balance of the Participant under the Plan.

57

 

              For purposes of this limit, all plans of the Employer shall be
considered one plan.

     (c) Loans shall provide for level amortization with payments to be
made not less frequently than quarterly over a period not to exceed five
(5) years. However, loans used to acquire any dwelling unit which, within
a reasonable time, is to be used (determined at the time the loan is
made) as a principal residence of the Participant shall provide for
periodic repayment over a reasonable period of time that may exceed five
(5) years. For this purpose, a principal residence has the same meaning
as a principal residence under Code Section 1034. Loan repayments will be
suspended under this Plan as permitted under Code Section 414(u)(4).

     (d) All loans shall be made pursuant to a Participant loan policy.
Such loan policy shall be established in writing and must include, but
need not be limited to, the following:

       (1) the identity of the person or positions authorized to
administer the Participant loan program;

       (2) a procedure for applying for loans;

       (3) the basis on which loans will be approved or denied;

       (4) limitations, if any, on the types and amounts of loans
offered;

       (5) the procedure under the program for determining a
reasonable rate of interest;

       (6) the types of collateral which may secure a Participant
loan; and

       (7) the events constituting default and the steps that will
be taken to preserve Plan assets.

              Such Participant loan policy shall be contained in a separate
written document which is hereby incorporated by reference and made a
part of the Plan. Furthermore, such Participant loan policy may be
modified or amended in writing from time to time without the necessity of
amending this Section.

ARTICLE VII

TOP HEAVY

       7.1 TOP HEAVY PLAN REQUIREMENTS

              For any Top Heavy Plan Year, the Plan shall provide the special vesting
requirements of Code Section 416(b) pursuant to Section 5.4 of the Plan and the
special minimum allocation requirements of Code Section 416(c) pursuant to
Section 4.4 of the Plan.

58

 

       7.2 DETERMINATION OF TOP HEAVY STATUS

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

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

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

	 	 	 
	

	 	(1) his Participant’s Combined Account balance as of the most
recent Valuation Date occurring within a twelve (12) month
period ending on the Determination Date.
	 
	 	 
	

	 	(2) an adjustment for any contributions due as of the
Determination Date. Such adjustment shall be the amount of
any contributions actually made after the Valuation Date but
due on or before the Determination Date, except for the first
Plan Year when such adjustment shall also reflect the amount
of any contributions made after the Determination Date that
are allocated as of a date in that first Plan Year.
	 
	 	 
	

	 	(3) any Plan distributions made within the Plan Year that
includes the Determination Date, or in the case of any
distributions made for a reason other than separation from
service, death, or disability, within the Plan Year that
includes the Determination Date or within the four (4)
preceding Plan Years. However, in the case of distributions
made after the Valuation Date and prior to the Determination
Date, such distributions are not included as distributions
for top heavy purposes to the extent that such distributions
are already included in the Participant’s Aggregate Account
balance as of the Valuation Date. Notwithstanding anything
herein to the contrary, all distributions, including
distributions under a terminated plan which if it had not
been terminated would have been required to be included in an
Aggregation Group, will be counted. Further, distributions
from the Plan (including the cash value of life insurance
policies) of a Participant’s account

59

 

	 	 	 
	

	 	balance because of death shall be treated as a distribution
for the purposes of this paragraph.
	 
	 	 
	

	 	(4) any Employee contributions, whether voluntary or
mandatory. However, amounts attributable to tax deductible
qualified voluntary employee contributions shall not be
considered to be a part of the Participant’s Aggregate
Account balance.
	 
	 	 
	

	 	(5) with respect to unrelated rollovers and plan-to-plan
transfers (ones which are both initiated by the Employee and
made from a plan maintained by one employer to a plan
maintained by another employer), if this Plan provides the
rollovers or plan-to-plan transfers, it shall always consider
such rollovers or plan-to-plan transfers as a distribution
for the purposes of this Section. If this Plan is the plan
accepting such rollovers or plan-to-plan transfers, it shall
not consider such rollovers or plan-to-plan transfers as part
of the Participant’s Aggregate Account balance.
	 
	 	 
	

	 	(6) with respect to related rollovers and plan-to-plan
transfers (ones either not initiated by the Employee or made
to a plan maintained by the same employer), if this Plan
provides the rollover or plan-to-plan transfer, it shall not
be counted as a distribution for purposes of this Section. If
this Plan is the plan accepting such rollover or plan-to-plan
transfer, it shall consider such rollover or plan-to-plan
transfer as part of the Participant’s Aggregate Account
balance, irrespective of the date on which such rollover or
plan-to-plan transfer is accepted.
	 
	 	 
	

	 	(7) For the purposes of determining whether two employers are
to be treated as the same employer in (5) and (6) above, all
employers aggregated under Code Section 414(b), (c), (m) and
(o) are treated as the same employer.

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

	 	 	 
	

	 	(1) Required Aggregation Group: In determining a Required
Aggregation Group hereunder, each plan of the Employer in
which a Key Employee is a participant in the Plan Year
containing the Determination Date or the one year period
containing the Determination Date, and each other plan of the
Employer which enables any plan in which a Key Employee
participates to meet the requirements of Code Sections
401(a)(4) or 410, will be required to be aggregated. Such
group shall be known as a Required Aggregation Group.
	 
	 	 
	

	 	In the case of a Required Aggregation Group, each plan in the
group will be considered a Top Heavy Plan if the Required
Aggregation Group is a Top Heavy Group. No plan in the
Required Aggregation Group will be considered a Top Heavy
Plan if the Required Aggregation Group is not a Top Heavy
Group.

60

 

	 	 	 
	

	 	(2) Permissive Aggregation Group: The Employer may also
include any other plan not required to be included in the
Required Aggregation Group, provided the resulting group,
taken as a whole, would continue to satisfy the provisions of
Code Sections 401(a)(4) and 410. Such group shall be known as
a Permissive Aggregation Group. In the case of a Permissive
Aggregation Group, only a plan that is part of the Required
Aggregation Group will be considered a Top Heavy Plan if the
Permissive Aggregation Group is a Top Heavy Group. No plan in
the Permissive Aggregation Group will be considered a Top
Heavy Plan if the Permissive Aggregation Group is not a Top
Heavy Group.
	 
	 	 
	

	 	(3) Only those plans of the Employer in which the
Determination Dates fall within the same calendar year shall
be aggregated in order to determine whether such plans are
Top Heavy Plans.
	 
	 	 
	

	 	(4) An Aggregation Group shall include any terminated plan of
the Employer if it was maintained within the one year period
containing the Determination Date.

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

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

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

	 	 	 
	

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

	 	(2) the Aggregate Accounts of Key Employees under all defined
contribution plans included in the group, exceeds sixty
percent (60%) of a similar sum determined for all
Participants.

ARTICLE VIII

MISCELLANEOUS

       8.1 PARTICIPANT’S RIGHTS

              This Plan shall not be deemed to constitute a contract between the
Employer and any Participant or to be a consideration or an inducement for the
employment of any Participant or

61

 

Employee. Nothing contained in this Plan shall be deemed to give any
Participant or Employee the right to be retained in the service of the Employer
or to interfere with the right of the Employer to discharge any Participant or
Employee at any time regardless of the effect which such discharge shall have
upon him as a Participant of this Plan.

       8.2 ALIENATION

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

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

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

       (d) This provision shall not apply to an offset to a Participant’s
accrued benefit against an amount that the Participant is ordered or
required to pay the Plan with respect to a judgment, order, or decree
issued, or a settlement entered into, on or after August 5, 1997, in
accordance with Code Sections 401(a)(13)(C) and (D). In a case in which
the survivor annuity requirements of Code Section 401(a)(11) apply with
respect to distributions from the Plan to the Participant, if the
Participant has a spouse at the time at which the offset is to be made:

	 	 	 
	

	 	(1) either such spouse has consented in writing to such
offset and such consent is witnessed by a notary public or
representative of the Plan (or it is

62

 

	 	 	 
	

	 	established to the satisfaction of a Plan representative that
such consent may not be obtained by reason of circumstances
described in Code Section 417(a)(2)(B)), or an election to
waive the right of the spouse to either a qualified joint and
survivor annuity or a qualified pre-retirement survivor
annuity is in effect in accordance with the requirements of
Code Section 417(a),
	 
	 	 
	

	 	(2) such spouse is ordered or required in such judgment,
order, decree or settlement to pay an amount to the Plan in
connection with a violation of fiduciary duties, or
	 
	 	 
	

	 	(3) in such judgment, order, decree or settlement, such
spouse retains the right to receive the survivor annuity
under a qualified joint and survivor annuity provided
pursuant to Code Section 401(a)(11)(A)(i) and under a
qualified pre-retirement survivor annuity provided pursuant
to Code Section 401(a)(11)(A)(ii).

       8.3 CONSTRUCTION OF PLAN

            This Plan shall be construed and enforced according to the Act and the
laws of the State of Texas, other than its laws respecting choice of law, to
the extent not preempted by the Act.

       8.4 GENDER AND NUMBER

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

       8.5 LEGAL ACTION

            In the event any claim, suit, or proceeding is brought regarding the Trust
and/or Plan established hereunder to which the Trustee, the Employer or the
Administrator may be a party, and such claim, suit, or proceeding is resolved
in favor of the Trustee, the Employer or the Administrator, they shall be
entitled to be reimbursed from the Trust Fund for any and all costs, attorney’s
fees, and other expenses pertaining thereto incurred by them for which they
shall have become liable. If reimbursement is permitted under this provision,
such reimbursement shall be subject to Employer approval.

       8.6 PROHIBITION AGAINST DIVERSION OF FUNDS

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

63

 

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

     8.7 BONDING

       Every Fiduciary, except a bank or an insurance company, unless exempted by
the Act and regulations thereunder, shall be bonded in an amount not less than
10% of the amount of the funds such Fiduciary handles; provided, however, that
the minimum bond shall be $1,000 and the maximum bond, $500,000. The amount of
funds handled shall be determined at the beginning of each Plan Year by the
amount of funds handled by such person, group, or class to be covered and their
predecessors, if any, during the preceding Plan Year, or if there is no
preceding Plan Year, then by the amount of the funds to be handled during the
then current year. The bond shall provide protection to the Plan against any
loss by reason of acts of fraud or dishonesty by the Fiduciary alone or in
connivance with others. The surety shall be a corporate surety company (as such
term is used in Act Section 412(a)(2)), and the bond shall be in a form
approved by the Secretary of Labor. Notwithstanding anything in the Plan to the
contrary, the cost of such bonds shall be an expense of and may, at the
election of the Administrator, be paid from the Trust Fund or by the Employer.

     8.8 EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE

       Neither the Employer, the Administrator, nor the Trustee, nor their
successors shall be responsible for the validity of any Contract issued
hereunder or for the failure on the part of the insurer to make payments
provided by any such Contract, or for the action of any person which may delay
payment or render a Contract null and void or unenforceable in whole or in
part.

     8.9 RECEIPT AND RELEASE FOR PAYMENTS

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

     8.10 ACTION BY THE EMPLOYER

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

     8.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

       The Named Fiduciaries shall have only those specific powers, duties,
responsibilities, and obligations as are specifically given them under the Plan
or as accepted by or assigned to them

64

 

pursuant to any procedure provided under the Plan, including but not
limited to any agreement allocating or delegating their responsibilities, the
terms of which are incorporated herein by reference. In general, unless
otherwise indicated herein or pursuant to such agreements, the Employer shall
have the duties specified in Article II hereof, as the same may be allocated or
delegated thereunder, including but not limited to the responsibility for
making the contributions provided for under Section 4.1; and shall have the
authority to appoint and remove the Trustee and the Administrator; to formulate
the Plan’s “funding policy and method”; and to amend or terminate, in whole or
in part, the Plan. The Administrator shall have the responsibility for the
administration of the Plan, including but not limited to the items specified in
Article II of the Plan, as the same may be allocated or delegated thereunder.
The Trustee shall have the responsibility of management and control of the
assets held under the Trust, except to the extent directed pursuant to Article
II or with respect to those assets, the management of which has been assigned
to an Investment Manager, who shall be solely responsible for the management of
the assets assigned to it, all as specifically provided in the Plan and any
agreement with the Trustee. Each Named Fiduciary warrants that any directions
given, information furnished, or action taken by it shall be in accordance with
the provisions of the Plan, authorizing or providing for such direction,
information or action. Furthermore, each Named Fiduciary may rely upon any such
direction, information or action of another Named Fiduciary as being proper
under the Plan, and is not required under the Plan to inquire into the
propriety of any such direction, information or action. It is intended under
the Plan that each Named Fiduciary shall be responsible for the proper exercise
of its own powers, duties, responsibilities and obligations under the Plan as
specified or allocated herein. No Named Fiduciary shall guarantee the Trust
Fund in any manner against investment loss or depreciation in asset value. Any
person or group may serve in more than one Fiduciary capacity. In the
furtherance of their responsibilities hereunder, the Named Fiduciaries shall be
empowered with full discretionary authority to interpret the Plan and Trust and
to resolve ambiguities, inconsistencies and omissions, which findings shall be
binding, final and conclusive.

     8.12 HEADINGS

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

     8.13 APPROVAL BY INTERNAL REVENUE SERVICE

       Notwithstanding any provisions to the contrary, any contribution by the
Employer to the Trust Fund is conditioned upon the deductibility of the
contribution by the Employer under the Code and, to the extent any such
deduction is disallowed, the Employer may, within one (1) year following the
disallowance of the deduction, demand repayment of such disallowed contribution
and the Trustee shall return such contribution within one (1) year following
the disallowance. Earnings of the Plan attributable to the excess contribution
may not be returned to the Employer, but any losses attributable thereto must
reduce the amount so returned.

     8.14 UNIFORMITY

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

65

 

ARTICLE IX

PARTICIPATING EMPLOYERS

     9.1 ADOPTION BY OTHER EMPLOYERS

       Notwithstanding anything herein to the contrary, the Employer, the
Benefits Committee or the Employer’s Senior Vice-President of Human Resources
may amend Exhibit A and B to include new Participating Employers to the Plan or
identify employers for which predecessor service shall be recognized.

     9.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS

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

       (b) However, the assets of the Plan shall, on an ongoing basis, be
available to pay benefits to all Participants and Beneficiaries under the
Plan without regard to the Employer or Participating Employer who
contributed such assets.

       (c) The transfer of any Participant from or to an Employer
participating in this Plan, whether he be an Employee of the Employer or
a Participating Employer, shall not affect such Participant’s rights
under the Plan, and all amounts credited to such Participant’s Combined
Account as well as his accumulated service time with the transferor or
predecessor, and his length of participation in the Plan, shall continue
to his credit.

     9.3 DESIGNATION OF AGENT

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

     9.4 EMPLOYEE TRANSFERS

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

     9.5 DISCONTINUANCE OF PARTICIPATION

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

66

 

Participants of such Participating Employer to such new Trustee as shall
have been designated by such Participating Employer, in the event that it has
established a separate pension plan for its Employees, provided however, that
no such transfer shall be made if the result is the elimination or reduction of
any “Section 411(d)(6) protected benefits” in accordance with Section 6.1(c).
If no successor is designated, the Trustee shall retain such assets for the
Employees of said Participating Employer pursuant to the provisions of the
Trust. In no such event shall any part of the corpus or income of the Trust as
it relates to such Participating Employer be used for or diverted to purposes
other than for the exclusive benefit of the Employees of such Participating
Employer.

     9.6 ADMINISTRATOR’S AUTHORITY

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

67

 

       IN
WITNESS WHEREOF, this Plan has been executed this 3rd day of August, 2004.

	 	 	 
	

	 	AFFILIATED COMPUTER SERVICES, INC.
	 
	 	 
	

	By: 	/s/ LORA VILLAREAL

	

	Name:	Lora Villareal

	

	Its:	Senior Vice President & Chief People Officer

68

 

EXHIBIT A

ACS SAVINGS PLAN

LIST OF PARTICIPATING EMPLOYERS

(as of July 1, 2004)

ACS Commercial Solutions, Inc. (f/k/a ACS Business Process Solutions, Inc.)

ACS Defense, LLC

ACS EDI Gateway, Inc.

ACS Education Services, Inc. (f/k/a AFSA Data Corporation)

ACS Education Solutions, LLC

ACS Enterprise Solutions, Inc.

ACS Government Systems, Inc. (f/k/a SCT Government Systems, Inc.)

ACS Health Administration, Inc.

ACS Health Care, Inc.

ACS Image Solutions, Inc.

ACS IT Solutions, L.P.

ACS Marketing, L.P.

ACS Outsourcing Solutions, Inc.

ACS Protection Services, Inc.

ACS Securities Services, Inc.

ACS State & Local Solutions, Inc.

ACS State Healthcare, LLC (f/k/a Consultec, LLC)

ACS TradeOne Marketing, Inc.

Concera Corporation

Genix CSI, Inc.

Government Records Services, Inc.

MidasPlus, Inc.

Outsourced Administrative Systems, Inc.

Peter Martin Associates, Inc.

Title Records Corporation

A-1

 

EXHIBIT B

ACS SAVINGS PLAN

PREDECESSOR SERVICE

(as of July 1, 2004)

ACS Commercial Solutions, Inc. (f/k/a ACS Business Process Solutions, Inc.)

ACS Defense, LLC

ACS EDI Gateway, Inc.

ACS Education Solutions, LLC

ACS Enterprise Solutions, Inc.

ACS Government Systems, Inc. (f/k/a SCT Government Systems, Inc.)

ACS State & Local Solutions, Inc.

ACS State Healthcare, LLC (f/k/a Consultec, LLC)

ACS Education Services, Inc. (f/k/a AFSA Data Corporation)

Certain Former Employees of Motorola, Inc.

Certain Former Employees of American International Group, Inc.

Certain Former Employees of Business Resources Company

Certain Former Employees of Excel Alternatives, Inc.

Certain Former Employees of Trilegiant Corporation

Certain Former Employees of Lockheed Martin Information Technology

Certain Former Employees of Unclaimed Property Recovery & Reporting, Inc.

Certain Former Employees of The Intellisource Group, Inc.

Certain Former Employees of Ingersoll Rand Company

Certain Former Employees of Metromedia Restaurant Group

Certain Former Employees of Motion Picture & Television Fund

Certain Former Employees of The Queen’s Medical Center

Certain Former Employees of SIRVA, Inc.

Certain Former Employees of United States Tennis Association

Certain Former Employees of Ingram Micro, Inc.

Certain Former Employees of University Hospital Health Systems, Inc.

Certain Former Employees of Memorial Health Care, Inc.

Certain Former Employees of Gateway, Inc.

B-1

 

Certain Former Employees of Arthur Andersen Consulting

Certain Former Employees of Trigon Healthcare, Inc./Anthem Insurance Companies,
Inc.

Computer Systems Development, Inc.

Concera Corporation

CyberRep, Inc.

Outsourced Administrative Systems, Inc.

Peter Martin Associates, Inc.

Transaction Processing Specialists, Inc.

B-2

 

APPENDIX

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