Document:

Exhibit
10.27

 

UNIVERSAL ORLANDO

401(K) RETIREMENT PLAN

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  ADMINISTRATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  POWERS AND RESPONSIBILITIES OF THE EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  DESIGNATION OF ADMINISTRATIVE AUTHORITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  ALLOCATION AND DELEGATION OF
  RESPONSIBILITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  POWERS AND DUTIES OF THE ADMINISTRATOR

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  RECORDS AND REPORTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  APPOINTMENT OF ADVISERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  INFORMATION FROM EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.8

  	
   

  	
  PAYMENT OF EXPENSES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.9

  	
   

  	
  MAJORITY ACTIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.10

  	
   

  	
  CLAIMS PROCEDURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.11

  	
   

  	
  CLAIMS REVIEW PROCEDURE

  	
   

  	
   

  
	
   

  
	
  ARTICLE III

  ELIGIBILITY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  CONDITIONS OF ELIGIBILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  EFFECTIVE DATE OF PARTICIPATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  DETERMINATION OF ELIGIBILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  TERMINATION OF ELIGIBILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  OMISSION OF ELIGIBLE EMPLOYEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  INCLUSION OF INELIGIBLE EMPLOYEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.7

  	
   

  	
  REHIRED EMPLOYEES AND BREAKS IN SERVICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.8

  	
   

  	
  OWNER-EMPLOYEE LIMITATION

  	
   

  	
   

  

 

 

	
  ARTICLE IV

  CONTRIBUTION AND ALLOCATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  FORMULA FOR DETERMINING EMPLOYER
  CONTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  PARTICIPANT’S SALARY REDUCTION ELECTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  ALLOCATION OF CONTRIBUTION, FORFEITURES AND
  EARNINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  ACTUAL DEFERRAL PERCENTAGE TESTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE
  TESTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.7

  	
   

  	
  ACTUAL CONTRIBUTION PERCENTAGE TESTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.8

  	
   

  	
  ADJUSTMENT TO ACTUAL CONTRIBUTION
  PERCENTAGE TESTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.9

  	
   

  	
  MAXIMUM ANNUAL ADDITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.10

  	
   

  	
  ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.11

  	
   

  	
  ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM
  QUALIFIED PLANS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.12

  	
   

  	
  DIRECTED INVESTMENT ACCOUNT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.13

  	
   

  	
  QUALIFIED MILITARY SERVICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  VALUATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  VALUATION OF THE TRUST FUND

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  METHOD OF VALUATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  DETERMINATION AND DISTRIBUTION OF BENEFITS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  DETERMINATION OF BENEFITS UPON RETIREMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  DETERMINATION OF BENEFITS UPON DEATH

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  DETERMINATION OF BENEFITS IN EVENT OF
  DISABILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  DETERMINATION OF BENEFITS UPON TERMINATION

  	
   

  	
   

  

 

 

	
  6.5

  	
   

  	
  DISTRIBUTION OF BENEFITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  DISTRIBUTION OF BENEFITS UPON DEATH

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  TIME OF SEGREGATION OR DISTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.8

  	
   

  	
  DISTRIBUTION FOR MINOR OR INCOMPETENT
  BENEFICIARY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.9

  	
   

  	
  LOCATION OF PARTICIPANT OR BENEFICIARY
  UNKNOWN

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.10

  	
   

  	
  PRE-RETIREMENT DISTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.11

  	
   

  	
  ADVANCE DISTRIBUTION FOR HARDSHIP

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.12

  	
   

  	
  QUALIFIED DOMESTIC RELATIONS ORDER
  DISTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.13

  	
   

  	
  DIRECT ROLLOVER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  AMENDMENT, TERMINATION AND MERGERS

  
	
   

  
	
  7.1

  	
   

  	
  AMENDMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  TOP HEAVY

  
	
   

  
	
  8.1

  	
   

  	
  TOP HEAVY PLAN REQUIREMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  DETERMINATION OF TOP HEAVY STATUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  PARTICIPANT’S RIGHTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  ALIENATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  CONSTRUCTION OF PLAN

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  GENDER AND NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  LEGAL
  ACTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  PROHIBITION AGAINST DIVERSION OF FUNDS

  	
   

  	
   

  

 

 

	
  9.7

  	
   

  	
  EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.8

  	
   

  	
  INSURER’S PROTECTIVE CLAUSE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.9

  	
   

  	
  RECEIPT AND RELEASE FOR PAYMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.10

  	
   

  	
  ACTION BY THE EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.11

  	
   

  	
  NAMED FIDUCIARIES AND ALLOCATION OF
  RESPONSIBILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.12

  	
   

  	
  HEADINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.13

  	
   

  	
  APPROVAL BY INTERNAL REVENUE SERVICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.14

  	
   

  	
  UNIFORMITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.15

  	
   

  	
  PRE-RETIREMENT DISTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.16

  	
   

  	
  TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.17

  	
   

  	
  OMISSION OF ELIGIBLE EMPLOYEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.18

  	
   

  	
  CLAIMS REVIEW PROCEDURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.19

  	
   

  	
  CLAIMS PROCEDURE

  	
   

  	
   

  

 

 

UNIVERSAL ORLANDO

401(K) RETIREMENT PLAN

 

THIS PLAN is
hereby adopted by Universal City Development Partners, Ltd. d/b/a Universal Orlando
(herein referred to as the “Employer”).

 

W I T N E S S E T H:

 

WHEREAS, the
Employer heretofore established a Profit Sharing Plan effective January 1,
1989, (hereinafter called the “Effective Date”) known as Universal Orlando
401(k) Retirement Plan (herein referred to as the “Plan”) in recognition of the
contribution made to its successful operation by its employees and for the
exclusive benefit of its eligible employees; and

 

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

 

NOW,
THEREFORE, effective January 1, 2005, except as otherwise provided, the
Employer in accordance with the provisions of the Plan pertaining to amendments
thereof, hereby amends the Plan in its entirety and restates the Plan to
provide as follows:

 

ARTICLE I

DEFINITIONS

 

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

 

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

 

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

 

1.4                                 “Aggregate
Account” means, with respect to each Participant, the value of all accounts
maintained on behalf of a Participant, whether attributable to Employer or
Employee contributions, subject to the provisions of Section 8.2.

 

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

 

 

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

 

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

 

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

 

Compensation
shall exclude (a)(1) contributions made by the Employer to a plan of deferred
compensation to the extent that, the contributions are not includible in the
gross income of the Participant for the taxable year in which contributed, (2)
Employer contributions made on behalf of an Employee to a simplified employee
pension plan described in Code Section 408(k) to the extent such
contributions are excludable from the Employee’s gross income, (3) any distributions
from a plan of deferred compensation; (b) amounts realized from the exercise of
a non-qualified stock option, or when restricted stock (or property) held by an
Employee either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture; (c) amounts realized from the sale, exchange or
other disposition of stock acquired under a qualified stock option; and (d)
other amounts which receive special tax benefits, or contributions made by the
Employer (whether or not under a salary reduction agreement) towards the
purchase of any annuity contract described in Code Section 403(b) (whether
or not the contributions are actually excludable from the gross income of the
Employee).

 

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

 

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

 

(b)                                 excluding (even if
includible in gross income) tuition reimbursements, relocation allowances and
service awards.

 

2

 

For a
Participant’s initial year of participation, Compensation shall be recognized
as of such Employee’s effective date of participation pursuant to Section 3.2.

 

Compensation
in excess of $150,000 (or such other amount provided in the Code) shall be
disregarded for all purposes other than for purposes of salary deferral
elections pursuant to Section 4.2. Such amount shall be adjusted for
increases in the cost of living in accordance with Code Section 401(a)(17)(B),
except that the dollar increase in effect on January 1 of any calendar
year shall be effective for the Plan Year beginning with or within such
calendar year. 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).

 

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

 

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

 

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

 

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

 

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

 

(c)                                  a Designated
Investment Alternative.

 

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

 

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

 

1.14                           “Earned
Income” means with respect to a Self-Employed Individual, the net earnings from
self-employment in the trade or business with respect to which the Plan is
established, for which the personal services of the individual are a material
income-producing factor. Net earnings will be determined without regard to
items not included in

 

3

 

gross income and the deductions allocable to such items. Net earnings
are reduced by contributions by the Self-Employed Individual to a qualified
Plan to the extent deductible under Code Section 404. In addition, net
earnings shall be determined with regard to the deduction allowed to the
Self-Employed Individual by Code Section 164(f).

 

1.15                           “Elective
Contribution” means the Employer contributions to the Plan of Deferred
Compensation excluding any such amounts distributed as excess “annual additions”
pursuant to Section 4.10(a). In addition, the Employer contribution made
pursuant to Section 4.1(b) which is used to satisfy the safe harbor
methods permitted by Code Sections 401(k)(12) and 401(m)(11) and 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 or the “Actual Contribution Percentage” tests) shall be
subject to the requirements of Sections 4.2(b) and 4.2(c) and shall further be
required to satisfy the nondiscrimination requirements of Regulation
1.401(k)-1(b)(5) and Regulation 1.401(m)-1(b)(5), the provisions of which are
specifically incorporated herein by reference.

 

1.16                           “Eligible
Employee” means any Employee, subject to the following:

 

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 will not be eligible to participate in this Plan
unless such agreement expressly provides for coverage in this Plan.

 

Employees who
are nonresident aliens (within the meaning of Code Section 7701(b)(1)(B))
and who receive no earned income (within the meaning of Code Section 911(d)(2))
from the Employer which constitutes income from sources within the United
States (within the meaning of Code Section 861(a)(3)) shall not be
eligible to participate in this Plan.

 

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

 

Employees classified
by the Employer as independent contractors who are subsequently determined by
the Internal Revenue Service to be Employees shall not be Eligible Employees
for the period during which they were classified as independent contractors.

 

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

 

4

 

1.18                           “Employer”
means Universal City Development Partners, Ltd. d/b/a Universal Orlando and any
successor which shall maintain this Plan; and any predecessor which has
maintained this Plan. The Employer is a company, with principal offices in the
State of Florida.

 

1.19                           “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)
(to the extent such matching contributions are not used to satisfy the safe
harbor methods permitted by Code Sections 401(k)(12) and 401(m)(11)), and any
qualified non-elective contributions or elective deferrals taken into account
pursuant to Section 4.7(c) on behalf of Highly Compensated Participants
for such Plan Year, over the maximum amount of such contributions permitted
under the limitations of Section 4.7(a) (determined by hypothetically
reducing contributions made on behalf of Highly Compensated Participants in
order of the actual contribution ratios beginning with the highest of such
ratios). Such determination shall be made after first taking into account
corrections of any Excess Deferred Compensation pursuant to Section 4.2
and taking into account any adjustments of any Excess Contributions pursuant to
Section 4.6.

 

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

 

1.21                           “Excess
Deferred Compensation” means, with respect to any taxable year of a
Participant, the excess of the aggregate amount of such Participant’s Deferred
Compensation and the elective deferrals pursuant to Section 4.2(f)
actually made on behalf of such Participant for such taxable year, over the
dollar limitation provided for in Code Section 402(g), which is
incorporated herein by reference. Excess Deferred Compensation shall be treated
as an “annual addition” pursuant to Section 4.9(b) when contributed to the
Plan unless distributed to the affected Participant not later than the first April 15th
following the close of the Participant’s taxable year. Additionally, for
purposes of Sections 8.2 and 4.4(g), Excess Deferred Compensation shall
continue to be treated as Employer contributions even if distributed pursuant
to Section 4.2(f). However, Excess Deferred Compensation of Non-Highly
Compensated Participants is not taken into account for purposes of Section 4.5(a)
to the extent such Excess Deferred Compensation occurs pursuant to Section 4.2(d).

 

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

 

5

 

1.23                           “Fiscal
Year” means the Employer’s accounting year of 12 months commencing on January 1
of each year and ending the following December 31.

 

1.24                           “Forfeiture”
means that portion of a Participant’s Account that is not Vested, and occurs on
the earlier of:

 

(e)                                  the distribution of
the entire Vested portion of the Participant’s Account of a Former Participant
who has severed employment with the Employer. For purposes of this provision,
if the Former Participant has a Vested benefit of zero, then such Former
Participant shall be deemed to have received a distribution of such Vested
benefit as of the year in which the severance of employment occurs, or

 

(f)                                    the last day of the
Plan Year in which a Former Participant who has severed employment with the
Employer incurs five (5) consecutive 1-Year Breaks in Service.

 

Regardless of
the preceding provisions, if a Former Participant is eligible to share in the
allocation of Employer contributions or Forfeitures in the year in which the
Forfeiture would otherwise occur, then the Forfeiture will not occur until the
end of the first Plan Year for which the Former Participant is not eligible to
share in the allocation of Employer contributions or Forfeitures. Furthermore,
the term “Forfeiture” shall also include amounts deemed to be Forfeitures
pursuant to any other provision of this Plan.

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

1.28                           “Highly
Compensated Employee” means an Employee described in Code Section 414(q)
and the Regulations thereunder, and generally means any Employee who:

 

(g)                                 was a “five percent
owner” as defined in Section 1.33(c) at any time during the “determination
year” or the “look-back year”; or

 

(h)                                 for the “look-back
year” had “415 Compensation” from the Employer in excess of $80,000. The
$80,000 amount is adjusted at the same time and in the same manner as under
Code Section 415(d), except that the base period is the calendar quarter
ending September 30, 1996.

 

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

 

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

 

In determining
who is a Highly Compensated Employee, Employees who are non-resident aliens and
who received no earned income (within the meaning of Code Section 911(d)(2))
from the Employer constituting United States source income within the meaning
of Code Section 861(a)(3) shall not be treated as Employees. Additionally,
all Affiliated Employers shall be taken into account as a single employer and
Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2)
shall be

 

7

 

considered Employees unless such Leased Employees are covered by a plan
described in Code Section 414(n)(5) and are not covered in any qualified
plan maintained by the Employer. The exclusion of Leased Employees for this
purpose shall be applied on a uniform and consistent basis for all of the
Employer’s retirement plans. Highly Compensated Former Employees shall be
treated as Highly Compensated Employees without regard to whether they
performed services during the “determination year.”

 

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

 

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

 

Notwithstanding
(2) above, (i) no more than 501 Hours of Service are required to be credited to
an Employee on account of any single continuous period during which the
Employee performs no duties (whether or not such period occurs in a single
computation period); (ii) an hour for which an Employee is directly or
indirectly paid, or entitled to payment, on account of a period during which no
duties are performed is not required to be credited to the Employee if such
payment is made or due under a plan maintained solely for the purpose of
complying with applicable worker’s compensation, or unemployment compensation
or disability insurance laws; and (iii) Hours of Service are not required to be
credited for a payment which solely reimburses an Employee for medical or
medically related expenses incurred by the Employee.

 

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

 

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

 

8

 

1.31                           “Income”
means the income or losses allocable to “excess amounts” which shall equal the
allocable gain or loss for the “applicable computation period”. The income
allocable to “excess amounts” for the “applicable computation period” is
determined by multiplying the income for the “applicable computation period” by
a fraction. The numerator of the fraction is the “excess amount” for the “applicable
computation period.” The denominator of the fraction is the total “account
balance” attributable to “Employer contributions” as of the end of the “applicable
computation period”, reduced by the gain allocable to such total amount for the
“applicable computation period” and increased by the loss allocable to such
total amount for the “applicable computation period”. The provisions of this Section shall
be applied:

 

(a)                                  For purposes of Section 4.2(f),
by substituting:

 

(1)                                  “Excess Deferred
Compensation” for “excess amounts”;

 

(2)                                  “taxable year of the
Participant” for “applicable computation period”;

 

(3)                                  “Deferred
Compensation” for “Employer contributions”; and

 

(4)                                  “Participant’s
Elective Account” for “account balance.”

 

(b)                                 For purposes of Section 4.6(a),
by substituting:

 

(1)                                  “Excess Contributions”
for “excess amounts”;

 

(2)                                  “Plan Year” for “applicable
computation period”;

 

(3)                                  “Elective
Contributions” for “Employer contributions”; and

 

(4)                                  “Participant’s
Elective Account” for “account balance.”

 

(c)                                  For purposes of Section 4.8(a),
by substituting:

 

(1)                                  “Excess Aggregate
Contributions” for “excess amounts”;

 

(2)                                  “Plan Year” for “applicable
computation period”;

 

(3)                                  “Employer matching
contributions made pursuant to Section 4.1(b) (to the extent such matching
contributions are used to satisfy the “Actual Contribution Percentage” tests)
and any qualified non-elective contributions or

 

9

 

elective deferrals taken into account
pursuant to Section 4.7(c)” for “Employer contributions”; and

 

(4)                                  “Participant’s
Account” for “account balance.”

 

Income
allocable to any distribution of Excess Deferred Compensation on or before the
last day of the taxable year of the Participant shall be calculated from the
first day of the taxable year of the Participant to the date on which the
distribution is made pursuant to either the “fractional method” or the “safe
harbor method.” Under such “safe harbor method,” allocable Income for such
period shall be deemed to equal ten percent (10%) of the Income allocable to
such Excess Deferred Compensation multiplied by the number of calendar months
in such period. For purposes of determining the number of calendar months in
such period, a distribution occurring on or before the fifteenth day of the
month shall be treated as having been made on the last day of the preceding
month and a distribution occurring after such fifteenth day shall be treated as
having been made on the first day of the next subsequent month.

 

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

 

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

 

(a)                                  an
officer of the Employer (as that term is defined within the meaning of the
Regulations under Code Section 416) having annual “415 Compensation”
greater than 50 percent of the amount in effect under Code Section 415(b)(1)(A)
for any such Plan Year.

 

(b)                                 one
of the ten employees having annual “415 Compensation” from the Employer for a
Plan Year greater than the dollar limitation in effect under Code Section 415(c)(1)(A)
for the calendar year in which such Plan Year ends and owning (or considered as
owning within the meaning of Code Section 318) both more than one-half
percent interest and the largest interests in the Employer.

 

(c)                                  a
“five percent owner” of the Employer. “Five percent owner” means any person who
owns (or is

 

10

 

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

 

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

 

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

 

1.34                           “Late
Retirement Date” means a Participant’s actual Retirement Date after having
reached Normal Retirement Date.

 

1.35                           “Leased
Employee” means any person (other than an Employee of the recipient Employer)
who pursuant to an agreement between the recipient Employer and any other
person or entity (“leasing organization”) has performed services for the
recipient (or for the recipient and related persons determined in accordance
with Code Section 414(n)(6)) on a substantially full time basis for a
period of at least one year, and such services are performed under primary
direction or control by the recipient

 

11

 

Employer. Contributions or benefits provided a Leased Employee by the leasing
organization which are attributable to services performed for the recipient
Employer shall be treated as provided by the recipient Employer. Furthermore,
Compensation for a Leased Employee shall only include Compensation from the
leasing organization that is attributable to services performed for the
recipient Employer. A Leased Employee shall not be considered an Employee of
the recipient Employer:

 

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

 

(1)                                  a nonintegrated employer
contribution rate of at least 10% of compensation, as defined in Code Section 415(c)(3);

 

(2)                                  immediate
participation;

 

(3)                                  full and immediate
vesting; and

 

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

 

1.36                           “Non-Elective
Contribution” means the Employer contributions to the Plan excluding, however,
contributions made pursuant to the Participant’s deferral election provided for
in Section 4.2, matching contributions or nonelective contributions (which
are used to satisfy the safe harbor methods permitted by Code Sections
401(k)(12) and 401(m)(11)) made pursuant to Section 4.1(b) and any
Qualified Non-Elective Contribution used in the “Actual Deferral Percentage”
tests.

 

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

 

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

 

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

 

1.40                           “Normal
Retirement Date” means the Participant’s Normal Retirement Age.

 

1.41                           “1-Year
Break in Service” means the applicable computation period during which an
Employee has not completed more than 500 Hours of Service with the

 

12

 

Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in Service, Hours of Service shall be
recognized for “authorized leaves of absence” and “maternity and paternity
leaves of absence.” Years of Service and 1-Year Breaks in Service shall be
measured on the same computation period.

 

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

 

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

 

1.42                           “Owner-Employee”
means a sole proprietor who owns the entire interest in the Employer or a
partner (or member in the case of a limited liability company treated as a
partnership or sole proprietorship for federal income tax purposes) who owns
more than 10% of either the capital interest or the profits interest in the
Employer and who receives income for personal services from the Employer.

 

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

 

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

 

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

 

A separate
accounting shall be maintained with respect to that portion of the Participant’s
Account attributable to Employer matching contributions and nonelective
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.

 

13

 

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

 

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

 

1.48                           “Participant’s
Elective Account” means the account established and maintained by the
Administrator for each Participant with respect to the Participant’s total
interest in the Plan and Trust resulting from the Employer Elective
Contributions used to satisfy the “Actual Deferral Percentage” tests. A
separate accounting shall be maintained with respect to that portion of the
Participant’s Elective Account attributable to such Elective Contributions
pursuant to Section 4.2, Employer matching contributions and nonelective
contributions made pursuant to Section 4.1(b) and any Employer Qualified
Non-Elective Contributions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.55                           “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 Late Retirement Date (see Section 6.1).

 

14

 

1.56                           “Self-Employed
Individual” means an individual who has Earned Income for the taxable year from
the trade or business for which the Plan is established, and, also, an
individual who would have had Earned Income but for the fact that the trade or
business had no net profits for the taxable year. A Self-Employed Individual
shall be treated as an Employee.

 

1.57                           “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.

 

1.58                           “Top
Heavy Plan” means a plan described in Section 8.2(a).

 

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

 

1.60                           “Total
and Permanent Disability” means a Participant can no longer continue in the
service of his Employer because of a mental or physical condition that is likely
to result in death or is expected to continue for a period of at least six
months. A Participant shall be considered disable only if the Administrator
determines he is disabled based on a written certificate of a physician
acceptable to it.

 

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

 

1.62                           “Trust
Agreement” means any trust agreement between the Employer and the Trustee with
respect to the Plan, as such may be in effect from from time to time, the
provisions of which are incorporated herein by reference.

 

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

 

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

 

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

 

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

 

For purposes
of eligibility for participation, the initial computation period shall begin
with the date on which the Employee first performs an Hour of Service. The
participation computation period beginning after a 1-Year Break in Service
shall be measured from the date on which an Employee again performs an Hour of
Service. The

 

15

 

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

 

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

 

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

 

Notwithstanding
the foregoing, for any short Plan Year, the determination of whether an
Employee has completed a Year of Service shall be made in accordance with
Department of Labor regulation 2530.203-2(c).

 

Years of
Service with MCA, Inc., Rank Organization, PLC, Ewing Company, and Blackstone
Group LP shall be recognized.

 

Years of
Service with any Affiliated Employer shall be recognized.

 

ARTICLE II
 ADMINISTRATION

 

2.1                                 POWERS AND
RESPONSIBILITIES OF THE EMPLOYER

 

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

 

(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

 

16

 

the Plan assets with respect to which the Investment Manager or other
agent shall have authority to direct the investment.

 

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

 

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

 

2.2                                 DESIGNATION OF
ADMINISTRATIVE AUTHORITY

 

The Employer
shall appoint one or more Administrators. Any person, including, but not
limited to, the Employees of the Employer, shall be eligible to serve as an
Administrator.  Any person so appointed
shall signify acceptance by filing written acceptance with the Employer. An
Administrator may resign by delivering a written resignation to the Employer or
be removed by the Employer by delivery of written notice of removal, to take
effect at a date specified therein, or upon delivery to the Administrator if no
date is specified.

 

The Employer,
upon the resignation or removal of an Administrator, shall promptly designate a
successor to this position. If the Employer does not appoint an Administrator,
the Employer will function as the Administrator.

 

2.3                                 ALLOCATION AND
DELEGATION OF RESPONSIBILITIES

 

If more than
one person is appointed as Administrator, the responsibilities of each
Administrator may be specified by the Employer and accepted in writing by each
Administrator. In the event that no such delegation is made by the Employer,
the Administrators may allocate the responsibilities among themselves, in which
event the Administrators shall notify the Employer and the Trustee in writing
of such action and specify the responsibilities of each Administrator. The
Trustee thereafter shall accept and rely upon any documents executed by the
appropriate Administrator until such time as

 

17

 

the Employer or the Administrators file with the Trustee a written
revocation of such designation.

 

2.4                                 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 the Administrator’s duties under
the Plan.

 

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

 

(a)                                  the discretion to
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 discretionary or otherwise directed
disbursements from the Trust;

 

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

 

(e)                                  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;

 

18

 

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

 

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

 

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

 

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

 

(k)                                  to determine the
validity of, and take appropriate action with respect to, any qualified
domestic relations order received by it; and

 

(l)                                     to assist any
Participant regarding the Participant’s rights, benefits, or elections
available under the Plan.

 

2.5                                 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.

 

2.6                                 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.

 

19

 

2.7                                 INFORMATION
FROM EMPLOYER

 

The Employer
shall supply full and timely information to the Administrator on all pertinent
facts as the Administrator may require in order to perform its function
hereunder and the Administrator shall advise the Trustee of such of the
foregoing facts as may be pertinent to the Trustee’s duties under the Plan. The
Administrator may rely upon such information as is supplied by the Employer and
shall have no duty or responsibility to verify such information.

 

2.8                                 PAYMENT
OF EXPENSES

 

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

 

2.9                                 MAJORITY
ACTIONS

 

Except where
there has been an allocation and delegation of administrative authority
pursuant to Section 2.3, if there is more than one Administrator, then
they shall act by a majority of their number, but may authorize one or more of
them to sign all papers on their behalf.

 

2.10                           CLAIMS
PROCEDURE

 

Claims for
benefits under the Plan may be filed in writing with the Administrator. Notice
of the disposition of a claim shall be furnished to the claimant within ninety
(90) days after the application is filed, or such period as is required by
applicable law or Department of Labor regulation, unless the Administrator
determines that special circumstances require an extension of time for
processing the claim. If it is determined that an extension is needed, written
notice of the extension shall be furnished to the claimant prior to the
termination of the initial 90-day period specifying the special circumstances
requiring the extension and the date by which the plan expects to render a
decision. In no event shall such extension exceed a period of 90 days from the
end of such initial period.

 

In the case of
a claim for disability benefits, notice of the disposition of a claim shall be
furnished to the claimant within forty-five (45) days after the application is
filed, or such period as is required by applicable law or Department of Labor
regulation,

 

20

 

unless the Administrator determines that circumstances beyond the Plan’s
control require an extension of time of up to thirty (30) days for processing
the claim. If it is determined that an extension is needed, notice of the
extension shall be furnished to the claimant prior to the termination of the
initial 45-day period specifying the circumstances requiring the extension and
the date by which the Plan expects to render a decision. If prior to the end of
the first 30-day extension period, the Administrator determines that
circumstances beyond the Plan’s control require an additional extension of time
of up to thirty (30) days, the period for deciding the claim may be extended.
If an additional 30-day extension is needed, notice of the extension shall be
furnished to the claimant prior to the termination of the first 30-day
extension period specifying the circumstances requiring the further extension
and the date by which the Plan expects to render a decision. For any extension,
the notice must explain the standards on which entitlement to a benefit is
based, the issues that prevent a decision on the claim, and the additional
information needed to resolve those issues. The claimant will be given at least
45 days to respond to the request for additional information.

 

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 and the time limits applicable to such procedure. In
the case of a claim for disability benefits, the claimant will be provided with
a copy of any internal rule, guideline, protocol or other similar criterion
that was relied upon in denying the claim, or the claimant will be provided
with a statement that the rule, guideline, protocol or similar criterion was
relied upon and that a copy of the rule, guideline, protocol or similar
criterion will be provided to the claimant free of charge upon request. Also,
in the case of a claim for disability benefits that was denied based on medical
necessity or experimental treatment or similar exclusion or limit, the claimant
will be provided with an explanation of the specific or clinical judgment
(applying the terms of the Plan to the medical circumstances) that was relied
upon to deny the claim, or a statement that such explanation will be provided
to the claimant free of charge upon request.

 

2.11                           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 2.10 shall be entitled
to request the Administrator to give further consideration to a claim by filing
with the Administrator a written request for a full and fair review. Such
request, together with a written statement of the reasons why the claimant
believes the claim should be allowed and any written comments, documents,
records and other information relating to the claim, shall be filed with the
Administrator no later than sixty (60) days after receipt of the notification
provided for in Section 2.10.

 

If the claim
is for disability benefits, the request for review must be filed with the
Administrator no later than one hundred-eighty (180) days after receipt of the
notification provided for in Section 2.10.

 

21

 

A claimant
shall be provided, upon request and free of charge, reasonable access to (and
copies of) all documents, records and other information relevant to the claim.
The Administrator shall then conduct a review of such claim that takes into
account all comments, documents, records and other information submitted by the
claimant relating to the claim, regardless of whether such information was
submitted or considered in the initial benefit determination.

 

If the claim
is for disability benefits, the review will be conducted without regard to the
initial adverse benefit determination by an appropriate named fiduciary of the
Plan who is neither the individual nor the subordinate of the individual who
made the initial adverse benefit determination. If the initial adverse benefit
determination is based in whole or in part on medical judgment, the appropriate
named fiduciary will consult with a health care professional who has
appropriate training and experience in the field of medicine involved in the
medical judgment and who was neither the individual nor a subordinate of the
individual consulted in connection with the initial adverse benefit
determination. Any medical or vocational experts whose advise was obtained on
behalf of the Plan in connection with the initial adverse benefit determination
will be identified, regardless of whether the advice was relied upon in making
the adverse benefit determination.

 

A final
decision as to the allowance of the claim shall be made by the Administrator
within sixty (60) days of receipt of the appeal (unless there has been an
extension of sixty (60) days due to special circumstances, provided the delay,
the special circumstances occasioning it, and the expected decision date are
communicated to the claimant within the sixty (60) day period). If the claim
relates to disability benefits, then the previous sentence will apply but with
the substitution of “forty-five (45)” for every instance in which the phrase “sixty
(60)” appears in the sentence.

 

Such communication
shall be written in a manner calculated to be understood by the claimant and
shall include: specific reasons for the decision, specific references to the
pertinent Plan provisions on which the decision is based, a statement that the
claimant is entitled to receive reasonable access to (and copies of) all
documents, records and other information relevant to the claim, a statement
describing any voluntary appeal procedures offered by the Plan and the claimant’s
right to obtain information about such procedures, and a statement of the
claimant’s right to bring an action under Act Section 502(a).

 

In the case of
a claim for disability benefits, the claimant will be provided with a copy of
any internal rule, guideline, protocol or other similar criterion that was
relied upon in denying the claim, or the claimant will be provided with a
statement that the rule, guideline, protocol or similar criterion was relied
upon and that a copy of the rule, guideline, protocol or similar criterion will
be provided to the claimant free of charge upon request. Also, in the case of a
claim for disability benefits that was denied based on medical necessity or
experimental treatment or similar exclusion or limit, the claimant will be
provided with an explanation of the specific or clinical judgment (applying the
terms of the Plan to the medical circumstances) that was relied upon to

 

22

 

deny the claim, or a statement that such explanation will be provided
to the claimant free of charge upon request.

 

ARTICLE III
 ELIGIBILITY

 

3.1                                 CONDITIONS
OF ELIGIBILITY

 

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. Each other Employee
is eligible to participate as of the following dates:

 

(a)                                  For any salaried
Employee who is exempt from the overtime requirements of the Fair Labor
Standards Act and who is not a Highly Compensated Employee, the Employee’s date
of hire.

 

(b)                                 For any other Employee
(hourly and Highly Compensated Employees), the date on which the Employee has
completed one Year of Service.

 

3.2                                 EFFECTIVE DATE OF
PARTICIPATION

 

Any salaried
Employees who is exempt from the overtime requirements of the Fair Labor
Standard Act and who is not a Highly Compensated Employee, shall become a
Participant on such Employee’s date of hire. If such Employee subsequently
becomes a Highly Compensated Employee, participation will be suspended for that
Employee until the Employee has completed the eligibility requirements for the
Plan. Any other Employee (any hourly Employee or Highly Compensated Employee)
shall become a Participant effective as of the first day of the Plan Year
quarter coinciding with or next following the date such Employee met the
eligibility requirements of Section 3.1, provided said Employee was still
employed as of such date (or if not employed on such date, as of the date of
rehire if a 1-Year Break in Service has not occurred or, if later, the date
that the Employee would have otherwise entered the Plan had the Employee not
terminated employment).

 

If an Eligible
Employee satisfies the Plan’s eligibility requirement conditions by reason of
recognition of service with a predecessor employer, such Employee will become a
Participant as of the day the Plan credits service with a predecessor employer
or, if later, the date the Employee would have otherwise entered the Plan had
the service with the predecessor employer been service with the Employer.

 

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

 

23

 

If an
Employee, who has satisfied the Plan’s eligibility requirements and would
otherwise become a Participant, shall go from a classification of an Eligible
Employee to a noneligible class of Employees, such Employee shall become a
Participant in the Plan on the date such Employee again becomes an Eligible
Employee, or, if later, the date that the Employee would have otherwise entered
the Plan had the Employee always been an Eligible Employee. However, if such
Employee incurs a 1-Year Break in Service, eligibility will be determined under
the Break in Service rules set forth in Section 3.7.

 

3.3                                 DETERMINATION OF
ELIGIBILITY

 

The
Administrator shall determine the eligibility of each Employee for
participation in the Plan based upon information furnished by the Employer.
Such determination shall be conclusive and binding upon all persons, as long as
the same is made pursuant to the Plan and the Act. Such determination shall be
subject to review pursuant to Section 2.11.

 

3.4                                 TERMINATION
OF ELIGIBILITY

 

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

 

3.5                                 OMISSION OF ELIGIBLE
EMPLOYEE

 

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

 

3.6                                 INCLUSION OF
INELIGIBLE EMPLOYEE

 

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

 

24

 

distributed to the person (along with any earnings attributable to such
Deferred Compensation).

 

3.7                                 REHIRED EMPLOYEES AND
BREAKS IN SERVICE

 

(a)                                  If any Participant
becomes a Former Participant due to severance from employment with the Employer
and is reemployed by the Employer before a 1-Year Break in Service occurs, the
Former Participant shall become a Participant as of the reemployment date.

 

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

 

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

 

(2)                                  A Former Participant
shall participate in the Plan as of the date of reemployment.

 

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

 

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

 

(2)                                  one
account representing the Participant’s Employer derived account balance in the
Plan attributable to post-break service.

 

(d)                                 If any Participant
becomes a Former Participant due to severance of employment with the Employer
and is reemployed by the Employer before five (5) consecutive 1-Year Breaks in
Service, and such Former Participant had received a distribution of the entire
Vested interest

 

25

 

prior to reemployment, then the forfeited
account shall be reinstated only if the Former Participant repays the full
amount which had been distributed. Such repayment must be made 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. If a distribution occurs for any reason other than a severance of
employment, the time for repayment may not end earlier than five (5) years
after the date of distribution. In the event the Former Participant does repay
the full amount distributed, the undistributed forfeited portion of the
Participant’s Account must be restored in full, unadjusted by any gains or
losses occurring subsequent to the Valuation Date preceding the distribution.
The source for such reinstatement may be Forfeitures occurring during the Plan
Year. If such source is insufficient, then the Employer will 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(c), such contribution will first be applied to restore any
such Accounts and the remainder shall be allocated in accordance with Section 4.4.

 

If a non-Vested Former Participant was deemed
to have received a distribution and such Former Participant is reemployed by
the Employer before five (5) consecutive 1-Year Breaks in Service, then such
Participant will be deemed to have repaid the deemed distribution as of the
date of reemployment.

 

3.8                                 OWNER-EMPLOYEE
LIMITATION

 

If this Plan
provides contributions or benefits for one or more Owner-Employees, the
contributions on behalf of any Owner-Employee shall be made only with respect
to the Earned Income for such Owner-Employee which is derived from the trade or
business with respect to which such Plan is established.

 

ARTICLE IV
 CONTRIBUTION AND ALLOCATION

 

4.1                                 FORMULA FOR
DETERMINING EMPLOYER CONTRIBUTION

 

For each Plan
Year, the Employer shall contribute to the Plan, except as otherwise provided:

 

(a)                                  The amount of the
total salary reduction elections of all Participants made pursuant to Section 4.2(a),
which amount shall be deemed an Employer Elective Contribution.

 

(b)                                 On behalf of each
Participant who is eligible to share in the contribution below, such
contribution, which amount shall be deemed an Employer Elective Contribution.

 

26

 

 

For Plan Years
beginning on and after January 1, 2005, a matching contribution equal to
the sum of 100% of the amount of the Participant’s Deferred Compensation that
is not in excess of 3% of the Participant’s Compensation, plus 50% of the
amount of the Participant’s Deferred Compensation that exceeds 3% of the
Participant’s Compensation but not in excess of 5% of the Participant’s
Compensation. The matching contribution and Compensation will be determined for
each payroll period.

 

If, pursuant
to Section 410(b)(4)(B), the Employer applies Code Section 410(b)
separately to the portion of the Plan (within the meaning of Code Section 414(l))
that benefits only Eligible Employees who satisfy the eligibility requirements
of Section 3.1 that are lower than age twenty-one (21) and completion of a
Year of Service, the Plan is treated as two separate plans for purposes of Code
Section 401(k). Accordingly, if the Employer elects to make a Basic
Matching Contribution, an Enhanced Matching Contribution or a Nonelective
Contribution, then such contribution shall not be made on behalf of Eligible
Employees who have not attained age twenty-one (21) and completed a Year of
Service. However, in such a case, Deferred Compensation on behalf of those
Eligible Employees must satisfy Sections 4.5 and 4.7.

 

Contributions
made to the Plan pursuant to this Section 4.1(b) are intended to comply
with Sections 4.5(a) and 4.7(a) pursuant to the safe harbor methods permitted
by Code Sections 401(k)(12) and 401(m)(11). However, if matching contributions
are made to this Plan or any other plan maintained by the Employer, and (i)
such matching contributions are made with respect to Deferred Compensation or
after-tax voluntary Employee contributions that in the aggregate exceed 6% of
the Employee’s Compensation, (ii) the rate of matching contributions increases
as the rate of Deferred Compensation or after-tax voluntary Employee
contributions increases, (iii) at any rate of Deferred Compensation or
after-tax voluntary Employee contributions, the rate of matching contributions
that would apply with respect to any Highly Compensated Employee is greater
than the rate of matching contributions that would apply with respect to a
Non-Highly Compensated Participant and who has the same rate of Deferred
Compensation or after-tax voluntary Employee contributions, (iv) any
discretionary matching contribution made to this Plan and any other plan
maintained by the Employer, in the aggregate, exceed 4% of the Participant’s
Compensation, then such matching contributions in the aggregate must satisfy
the “Actual Contribution Percentage” tests of Section 4.7. In this regard,
the Employer may elect to disregard, with respect to all Eligible Employees,
all matching contributions with respect to a Participant’s Deferred
Compensation up to 6% of each Participant’s Compensation, or matching
contributions up to 4% of each Participant’s Compensation. In applying 

 

27

 

the “Actual Contribution Percentage” tests,
match contributions or nonelective contributions made pursuant to this Section 4.1(b)
that satisfy the safe harbor methods permitted by Code Section 401(k)(12)
may not be treated as matching contributions under Code Section 401(m)(3).

 

The rules that
apply for purposes of aggregating and disaggregating cash or deferred
arrangements and plans under Code Sections 401(k) and 401(m) also apply for
purposes of Code Sections 401(k)(12) and 401(m)(11).

 

(c)                                  A discretionary
amount, which amount, if any, shall be deemed an Employer Non-Elective
Contribution.

 

(d)                                 Additionally, to the
extent necessary, the Employer shall contribute to the Plan the amount
necessary to provide the top heavy minimum contribution. All contributions by
the Employer shall be made in cash or in such property as is acceptable to the
Trustee.

 

4.2                                 PARTICIPANT’S SALARY
REDUCTION ELECTION

 

(a)                                  Each Participant may
elect to defer a portion of Compensation which would have been received in the
Plan Year (except for the deferral election) by up to the maximum amount which
will not cause the Plan to violate the provisions of Sections 4.5(a) and 4.9. A
deferral election (or modification of an earlier election) may not be made with
respect to Compensation which is currently available on or before the date the
Participant executed such election. For purposes of this Section, Compensation
shall be determined prior to any reductions made pursuant to Code Sections 125,
132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee
contributions described in Code Section 414(h)(2) that are treated as
Employer contributions.

 

For Plan Years
in which the Employer elects to make a contribution pursuant to Section 4.1(b),
each Participant may elect to defer a portion of Compensation which would have
been received in the Plan Year, but for the deferral election, by up to the
maximum amount which will not cause the Plan to violate the provisions of
Sections 4.5(a) and 4.9. A deferral election (or modification of an earlier
election) may not be made with respect to Compensation which is currently
available on or before the date the Participant executed such election. For
purposes of this Section, Compensation shall be determined prior to any
reductions made pursuant to Code Sections 125, 132(f)(4), 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code Section 414(h)(2)
that are treated as Employer contributions.

 

The amount by
which Compensation is reduced shall be that Participant’s Deferred Compensation
and be treated as an

 

28

 

Employer Elective Contribution and allocated
to that Participant’s Elective Account.

 

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

 

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

 

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

 

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

 

(3)                                  the
termination of the Plan without the existence at the time of Plan termination
of another defined contribution plan or the establishment of a successor
defined contribution plan by the Employer or an Affiliated Employer within the
period ending twelve months after distribution of all assets from the Plan
maintained by the Employer. For this purpose, a defined contribution plan does
not include an employee stock ownership plan (as defined in Code Section 4975(e)(7)
or 409), a simplified employee pension plan (as defined in Code Section 408(k)),
or a simple individual retirement account plan (as defined in Code Section 408(p));

 

(4)                                  the
date of disposition by the Employer to an entity that is not an Affiliated
Employer of substantially all of the assets (within the meaning of Code Section 409(d)(2))
used in a trade or business of such corporation if such corporation continues
to maintain this Plan after the disposition with respect to a Participant who
continues employment with the corporation acquiring such assets;

 

(5)                                  the
date of disposition by the Employer or an Affiliated Employer who maintains the
Plan of its interest in a subsidiary (within the meaning of Code Section 409(d)(3))
to an entity which is not an Affiliated Employer but only with respect to a
Participant who continues employment with such subsidiary; or

 

(6)                                  the
proven financial hardship of a Participant, subject to the limitations of Section 6.11.

 

(d)                                 For each Plan Year, a
Participant’s Deferred Compensation made under this Plan and all other plans,
contracts or arrangements of the Employer maintaining this Plan shall not
exceed, during any taxable year of the Participant, the limitation imposed by
Code Section 402(g), as in

 

29

 

effect at the beginning of such taxable year. If such dollar limitation
is exceeded, a Participant will be deemed to have notified the Administrator of
such excess amount which shall be distributed in a manner consistent with Section 4.2(f).
The dollar limitation shall be adjusted annually pursuant to the method
provided in Code Section 415(d) in accordance with Regulations.

 

(e)                                  In the event a
Participant has received a hardship distribution from the Participant’s
Elective Account pursuant to Section 6.11(b) or pursuant to Regulation
1.401(k)-1(d)(2)(iv)(B) from any other plan maintained by the Employer, then
such Participant shall not be permitted to elect to have Deferred Compensation contributed
to the Plan for a period of twelve (12) months following the receipt of the
distribution. Furthermore, the dollar limitation under Code Section 402(g)
shall be reduced, with respect to the Participant’s taxable year following the
taxable year in which the hardship distribution was made, by the amount of such
Participant’s Deferred Compensation, if any, pursuant to this Plan (and any
other plan maintained by the Employer) for the taxable year of the hardship
distribution.

 

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

 

30

 

(1)                                  the
distribution must be made after the date on which the Plan received the Excess
Deferred Compensation;

 

(2)                                  the
Participant shall designate the distribution as Excess Deferred Compensation;
and

 

(3)                                  the
Plan must designate the distribution as a distribution of Excess Deferred
Compensation.

 

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

 

(h)                                 At Normal Retirement
Date, or such other date when the Participant shall be entitled to receive
benefits, the fair market value of the Participant’s Elective Account shall be
used to provide additional benefits to the Participant or the Participant’s
Beneficiary.

 

(i)                                     Employer Elective
Contributions made pursuant to this Section may be segregated into a
separate account for each Participant in a federally insured savings account,
certificate of deposit in a bank or savings and loan association, money market
certificate, or other short-term debt security acceptable to the Trustee until
such time as the allocations pursuant to Section 4.4 have been made.

 

(j)                                     The Employer and the
Administrator shall implement the salary reduction elections provided for
herein in accordance with the following:

 

(1)                                  A
Participant must make an initial salary deferral election within a reasonable
time, not to exceed thirty (30) days, after entering the Plan pursuant to Section 3.2.
If the Participant fails to make an initial salary deferral election within
such time, then such Participant may thereafter make an election in accordance
with the rules governing modifications. The Participant shall make such an
election by entering into a written salary reduction agreement with the
Employer and filing such agreement with the Administrator. Such election shall
initially be effective beginning with the pay period following the acceptance
of the salary reduction agreement by the Administrator, shall not have
retroactive effect and shall remain in force until revoked.

 

(2)                                  A
Participant may modify a prior election at any time during the Plan Year and
concurrently make a new election by filing a written notice with the
Administrator within a reasonable time before the pay period for which such
modification is to be

 

31

 

effective. Any modification shall not have retroactive effect and shall
remain in force until revoked.

 

(3)                                  A
Participant may elect to prospectively revoke the Participant’s salary
reduction agreement in its entirety at any time during the Plan Year by
providing the Administrator with thirty (30) days written notice of such
revocation (or upon such shorter notice period as may be acceptable to the
Administrator). Such revocation shall become effective as of the beginning of
the first pay period coincident with or next following the expiration of the
notice period. Furthermore, the termination of the Participant’s employment, or
the cessation of participation for any reason, shall be deemed to revoke any
salary reduction agreement then in effect, effective immediately following the
close of the pay period within which such termination or cessation occurs.

 

(4)                                  If
the Employer elects to make a contribution pursuant to Section 4.1(b), the
Employer, at least thirty (30) days, but not more than ninety (90) days, before
the beginning of the Plan Year, will provide each eligible Employee a
comprehensive notice, which notice is hereby incorporated by reference and made
a part of the Plan, of the Employee’s rights and obligations under the Plan,
written (or in such other form as permitted by the Internal Revenue Service) in
a manner calculated to be understood by the average Employee. If an Employee
becomes eligible after the ninetieth (90th) day before the beginning of the
Plan Year and does not receive the notice for that reason, the notice must be
provided no more than ninety (90) days before the Employee becomes eligible but
not later than the date the Employee becomes eligible. In addition to any other
election periods provided under this Section 4.2, each eligible Employee
may make or modify a salary reduction election during the thirty (30) day
period immediately following receipt of the notice described above.

 

4.3                                 TIME OF PAYMENT OF
EMPLOYER CONTRIBUTION

 

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

 

Notwithstanding
anything contained herein to the contrary, Deferred Compensation must be
remitted to the Trust on the earliest day on which such Deferred Compensation
can reasonably be segregated from the Employer’s general assets, but in no
event later than the 15th business day of the month following the month in
which the

 

32

 

Participant’s Deferred Compensation would otherwise have been payable
to such Participant in cash, as set forth in DOL Regulation §2510.3-102(b)(1).

 

4.4                                 ALLOCATION OF
CONTRIBUTION, FORFEITURES AND EARNINGS

 

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

 

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

 

(1)                                  With
respect to the Employer Elective Contribution made pursuant to Section 4.1(a),
to each Participant’s Elective Account in an amount equal to each such
Participant’s Deferred Compensation for the year.

 

(2)                                  With
respect to the Employer Elective Contribution made pursuant to Section 4.1(b),
except for the Employer Elective Contribution to another plan maintained by the
Employer, to each Participant’s Elective Account when used to satisfy the “Actual
Deferral Percentage” tests, otherwise to each Participant’s Account.

 

(3)                                  With
respect to the Employer Non-Elective Contribution made pursuant to Section 4.1(c),
to each Participant’s 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.

 

Only Participants who are actively employed
on the last day of the Plan Year shall be eligible to share in the discretionary
contribution for the year.

 

(c)                                  On or before each
Anniversary Date any amounts which became Forfeitures since the last
Anniversary Date may be made available to reinstate previously forfeited
account balances of Former Participants, if any, in accordance with Section 3.7(d),
be used to satisfy any contribution that may be required pursuant to Section 3.5
and/or 6.9, or be used to pay any administrative expenses of the Plan. The
remaining Forfeitures, if any, shall be used to reduce the contribution of the
Employer hereunder for the Plan Year in which such Forfeitures occur.

 

33

 

(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(g) if eligible pursuant to the provisions of Section 4.4(i).

 

(e)                                  Notwithstanding the
foregoing, Participants who do not complete the allocation eligibility
requirements specified above due to Retirement (Normal or Late), Total and
Permanent Disability or death shall share in the allocation of contributions
for that Plan Year.

 

(f)                                    As of each
Valuation Date, before the current valuation period allocation of Employer
contributions, any earnings or losses (net appreciation or net depreciation) of
the Trust Fund shall be allocated in the same proportion that each Participant’s
and Former Participant’s nonsegregated accounts bear to the total of all
Participants’ and Former Participants’ nonsegregated accounts as of such date.
Earnings or losses with respect to a Participant’s Directed Account shall be
allocated in accordance with Section 4.12.

 

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

 

(g)                                 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 Deferred Compensation and matching
contributions needed to satisfy the “Actual Deferral Percentage” tests pursuant
to Section 4.5(a) or the

 

34

 

“Actual Contribution Percentage” tests pursuant to Section 4.7(a)
shall not be taken into account.

 

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

 

(h)                                 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.

 

(i)                                     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.

 

(j)                                     For the purposes
of this Section, “415 Compensation” in excess of $150,000 (or such other amount
provided in the Code) shall be disregarded. Such amount shall be adjusted for
increases in the cost of living in accordance with Code Section 401(a)(17)(B),
except that the dollar increase in effect on January 1 of any calendar
year shall be effective for the Plan Year beginning with or within such
calendar year. If “415 Compensation” for any prior determination period is
taken into account in determining a Participant’s minimum benefit for the
current Plan Year, the “415 Compensation” for such determination period is
subject to the applicable annual “415 Compensation” limit in effect for that
prior period. For this purpose, in determining the minimum benefit in Plan
Years beginning on or after January 1, 1989, the annual “415 Compensation”
limit in effect for determination periods beginning before that date is
$200,000 (or such other amount as adjusted for increases in the cost of living
in accordance with Code Section 415(d) for determination periods beginning
on or after January 1, 1989, and in accordance with Code Section 401(a)(17)(B)
for determination periods beginning on or after January 1, 1994). For
determination periods beginning prior to January 1, 1989, the $200,000
limit shall apply only for Top Heavy Plan Years and shall not be adjusted. For
any short Plan Year the “415 Compensation” limit shall be an amount equal to
the “415 Compensation” limit for the calendar year in which the Plan Year
begins multiplied by the ratio obtained by dividing the number of full months
in the short Plan Year by twelve (12).

 

35

 

(k)                                  Notwithstanding
anything herein to the contrary, Participants who terminated employment for any
reason during the Plan Year shall share in the salary reduction contributions
made by the Employer for the year of termination without regard to the Hours of
Service credited.

 

(l)                                     Notwithstanding
anything in this Section to the contrary, all information necessary to
properly reflect a given transaction may not be available until after the date
specified herein for processing such transaction, in which case the transaction
will be reflected when such information is received and processed. Subject to
express limits that may be imposed under the Code, the processing of any
contribution, distribution or other transaction may be delayed for any
legitimate business reason (including, but not limited to, failure of systems
or computer programs, failure of the means of the transmission of data, force
majeure, the failure of a service provider to timely receive values or prices,
and the correction for errors or omissions or the errors or omissions of any
service provider). The processing date of a transaction will be binding for all
purposes of the Plan.

 

4.5                                 ACTUAL DEFERRAL
PERCENTAGE TESTS

 

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

 

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

 

(2)                                  The
excess of the “Actual Deferral Percentage” for the Highly Compensated
Participant group over the “Actual Deferral Percentage” for the Non-Highly
Compensated Participant group (for the preceding Plan Year if the prior year
testing method is used to calculate the “Actual Deferral Percentage” for the
Non-Highly Compensated Participant group) shall not be more than two percentage
points. Additionally, the “Actual Deferral Percentage” for the Highly
Compensated Participant group shall not exceed the “Actual Deferral Percentage”
for the Non-Highly Compensated Participant group (for the preceding Plan Year
if the prior year testing method is used to calculate the “Actual Deferral
Percentage” for the Non-Highly Compensated Participant group)

 

36

 

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

 

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

 

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

 

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

 

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

 

37

 

or suspended, pursuant to the provisions of
the Plan in effect for the preceding Plan Year.

 

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

 

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

 

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

 

(f)                                    For the purpose of
this Section, 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,

 

38

 

Section VII (or superseding guidance), the provisions of which are
incorporated herein by reference.

 

(g)                                 Notwithstanding
anything in this Section to the contrary, the provisions of this Section and
Section 4.6 may be applied separately (or will be applied separately to
the extent required by Regulations) to each plan within the meaning of
Regulation 1.401(k)-1(g)(11). Furthermore, the provisions of Code Section 401(k)(3)(F)
may be used to exclude from consideration all Non-Highly Compensated Employees
who have not satisfied the minimum age and service requirements of Code Section 410(a)(1)(A).

 

(h)                                 Notwithstanding the
above, contributions made pursuant to Section 4.1(b) are intended to
comply with this Section 4.5 pursuant to the alternative methods permitted
by Code Section 401(k)(12). In any Plan Year in which this Plan satisfies
the provisions of Code Section 401(k)(12), the provisions of this section of
the Plan shall not apply.

 

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),
the Administrator shall adjust Excess Contributions pursuant to the options set
forth below:

 

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

 

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

 

39

 

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

 

(ii)                                  shall be adjusted for
Income; and

 

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

 

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

 

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

 

(1)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant’s 414(s) Compensation for the year (or prior year if
the prior year testing method is being used) bears to the total 414(s)
Compensation of all Non-Highly Compensated Participants for such year.

 

(2)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant electing salary reductions pursuant to Section 4.2
in the same proportion that each such Non-Highly Compensated Participant’s
Deferred Compensation for the year (or at the end of the prior Plan Year if the
prior year testing method is being used) bears to the total Deferred
Compensation of all such Non-Highly Compensated Participants for such year.

 

(3)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an

 

40

 

amount sufficient to satisfy (or to prevent an anticipated failure of)
one of the tests set forth in Section 4.5(a). Such contribution shall be
allocated in equal amounts (per capita).

 

(4)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants electing salary reductions pursuant to Section 4.2
in an amount sufficient to satisfy (or to prevent an anticipated failure of)
one of the tests set forth in Section 4.5(a). Such contribution shall be
allocated for the year (or at the end of the prior Plan Year if the prior year
testing method is used) to each Non-Highly Compensated Participant electing
salary reductions pursuant to Section 4.2 in equal amounts (per capita).

 

(5)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.5(a). Such
contribution shall be allocated to the Non-Highly Compensated Participant
having the lowest 414(s) Compensation, until one of the tests set forth in Section 4.5(a)
is satisfied (or is anticipated to be satisfied), or until such Non-Highly
Compensated Participant has received the maximum “annual addition” pursuant to Section 4.9.
This process shall continue until one of the tests set forth in Section 4.5(a)
is satisfied (or is anticipated to be satisfied).

 

Notwithstanding the above, at
the Employer’s discretion, Non-Highly Compensated Participants who are not
employed at the end of the Plan Year (or at the end of the prior Plan Year if
the prior year testing method is being used) shall not be eligible to receive a
special Qualified Non-Elective Contribution and shall be disregarded.

 

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

 

(c)                                  If during a Plan
Year, it is projected that the aggregate amount of Elective Contributions to be
allocated to all Highly Compensated Participants under this Plan would cause
the Plan to fail the tests set forth in Section 4.5(a), then the
Administrator may automatically reduce the deferral amount of affected Highly
Compensated Participants, beginning with the Highly Compensated Participant who
has the highest 

 

41

 

deferral ratio until it is anticipated the Plan will pass the tests or
until the actual deferral ratio equals the actual deferral ratio of the Highly
Compensated Participant having the next highest actual deferral ratio. This
process may continue until it is anticipated that the Plan will satisfy one of
the tests set forth in Section 4.5(a). Alternatively, the Employer may
specify a maximum percentage of Compensation that may be deferred.

 

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

 

4.7                                 ACTUAL CONTRIBUTION
PERCENTAGE TESTS

 

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

 

(b)                                 For the purposes of
this Section and Section 4.8, “Actual Contribution Percentage” for a
Plan Year means, with respect to the 

 

42

 

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

 

(1)                                  the
sum of Employer matching contributions made pursuant to Section 4.1(b) (to
the extent such matching contributions are not used to satisfy the safe harbor
methods permitted by Code Sections 401(k)(12) and 401(m)(11) 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) (to the extent such matching
contributions are not used to satisfy the safe harbor methods permitted by Code
Sections 401(k)(12) and 401(m)(11)) allocated to their accounts, nonelective
contributions (as described in Code Section 401(k)(12)(C)) (to the extent
such nonelective contributions are not used to satisfy the safe harbor methods
permitted by Code Section 401(k)(12) and 401(m)), 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 nonelective contributions, 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 nonelective contributions, 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

 

43

 

treated as one plan for purposes of Code Sections 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 (d) 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) allocated to the Participant’s account for the Plan Year.

 

Notwithstanding the above, if
the prior year testing method is used to calculate the “Actual Contribution
Percentage” for the Non-Highly Compensated Participant group for the first Plan
Year of this amendment and restatement, for the purposes of Section 4.7(a),
a Non-Highly Compensated Participant shall include any such Employee eligible
to have Employer matching contributions (whether or not a deferral

 

44

 

election was
made or suspended) allocated to the Participant’s account for the preceding
Plan Year pursuant to the provisions of the Plan then in effect.

 

(g)                                 For the purpose of
this Section, 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.

 

(h)                                 Notwithstanding
anything in this Section to the contrary, the provisions of this Section and
Section 4.8 may be applied separately (or will be applied separately to
the extent required by Regulations) to each plan within the meaning of
Regulation 1.401(k)-1(g)(11). Furthermore, the provisions of Code Section 401(k)(3)(F)
may be used to exclude from consideration all Non-Highly Compensated Employees
who have not satisfied the minimum age and service requirements of Code Section 410(a)(1)(A).

 

(i)                                     Notwithstanding
the above, contributions made pursuant to Section 4.1(b) are intended to
comply with this Section 4.7 pursuant to the alternative methods permitted
by Code Section 401(m)(11). In any Plan Year in which this Plan satisfies
the provisions of Code Section 401(m)(11), the provisions of this section of
the Plan shall not apply.

 

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 fifteenth
day of the third month following the end of the Plan Year, but in no event
later than the close of the following Plan Year) shall direct the Trustee to
distribute to the Highly Compensated Participant having the largest dollar
amount of contributions determined pursuant to Section 4.7(b)(1), the
portion of such contributions (and Income allocable to such contributions)
until the total amount of Excess Aggregate Contributions has been distributed,
or until the Participant’s remaining amount equals the amount of contributions
determined pursuant to Section 4.7(b)(1) of the Highly Compensated
Participant having the second largest dollar amount of contributions. This
process shall continue until the total amount of Excess Aggregate Contributions
has been distributed.

 

45

 

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

 

(c)                                  Excess Aggregate
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 after-tax voluntary Employee contributions due to recharacterization
for the plan year of any other qualified cash or deferred arrangement (as
defined in Code Section 401(k)) maintained by the Employer that ends with
or within the Plan Year or which are treated as after-tax voluntary Employee
contributions due to recharacterization pursuant to Section 4.6(a).

 

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

 

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

 

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

 

46

 

(2)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant electing salary reductions pursuant to Section 4.2
in the same proportion that each such Non-Highly Compensated Participant’s
Deferred Compensation for the year (or at the end of the prior Plan Year if the
prior year testing method is being used) bears to the total Deferred
Compensation of all such Non-Highly Compensated Participants for such year.

 

(3)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in equal amounts (per capita).

 

(4)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants electing salary reductions pursuant to Section 4.2
in an amount sufficient to satisfy (or to prevent an anticipated failure of)
one of the tests set forth in Section 4.7. Such contribution shall be
allocated for the year (or at the end of the prior Plan Year if the prior year
testing method is used) to each Non-Highly Compensated Participant electing salary
reductions pursuant to Section 4.2 in equal amounts (per capita).

 

(5)                                  A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated to the Non-Highly Compensated Participant
having the lowest 414(s) Compensation, until one of the tests set forth in Section 4.7
is satisfied (or is anticipated to be satisfied), or until such Non-Highly
Compensated Participant has received the maximum “annual addition” pursuant to Section 4.9.
This process shall continue until one of the tests set forth in Section 4.7
is satisfied (or is anticipated to be satisfied).

 

Notwithstanding the above, at
the Employer’s discretion, Non-Highly Compensated Participants who are not
employed at the end of the Plan Year (or at the end of the prior Plan Year if
the prior year testing method is being used) shall not be eligible to receive a
special Qualified Non-Elective Contribution and shall be disregarded.

 

47

 

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

 

4.9                                 MAXIMUM
ANNUAL ADDITIONS

 

(a)                                  Notwithstanding the
foregoing, the maximum “annual additions” credited to a Participant’s accounts
for any “limitation year” shall equal the lesser of: (1) $30,000 adjusted
annually as provided in Code Section 415(d) pursuant to the Regulations,
or (2) twenty-five percent (25%) of the Participant’s “415 Compensation” for
such “limitation year.” If the Employer contribution that would otherwise be
contributed or allocated to the Participant’s accounts would cause the “annual
additions” for the “limitation year” to exceed the maximum “annual additions,”
the amount contributed or allocated will be reduced so that the “annual
additions” for the “limitation year” will equal the maximum “annual additions,”
and any amount in excess of the maximum “annual additions,” which would have
been allocated to such Participant may be allocated to other Participants. For
any short “limitation year,” the dollar limitation in (1) above shall be
reduced by a fraction, the numerator of which is the number of full months in
the short “limitation year” and the denominator of which is twelve (12).

 

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

 

48

 

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.

 

(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)                                 If this is a plan
described in Code Section 413(c) (other than a plan described in Code Section 413(f)),
then all of the benefits or contributions attributable to a Participant from
all of the Employers maintaining this Plan shall be taken into account in
applying the limits of this Section with respect to such Participant.
Furthermore, in applying the limitations of this Section with respect to
such a Participant, the total “415 Compensation” received by the Participant
from all of the Employers maintaining the Plan shall be taken into account.

 

(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 

 

49

 

“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.

 

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
applicable, the “annual additions” under this Plan would cause the maximum “annual
additions” to be exceeded for any Participant, the “excess amount” will be
disposed of in one of the following manners, as uniformly determined by the
Administrator for all Participants similarly situated.

 

(1)                                  Any
Deferred Compensation and Employer matching contributions which relate to such
Deferred Compensation will be proportionately reduced to the extent they would
reduce the “excess amount.” The Deferred Compensation (and any gains

 

50

 

attributable to such Deferred Compensation) will be distributed to the
Participant and the Employer matching contributions (and any gains attributable
to such matching contributions) will be used to reduce the Employer
contribution in the next “limitation year”;

 

(2)                                  If,
after the application of subparagraph (1) above, an “excess amount” still
exists, and the Participant is covered by the Plan at the end of the “limitation
year,” the “excess amount” will be used to reduce the Employer contribution for
such Participant in the next “limitation year,” and each succeeding “limitation
year” if necessary;

 

(3)                                  If,
after the application of subparagraphs (1) and (2) above, an “excess amount”
still exists, and the Participant is not covered by the Plan at the end of the “limitation
year,” the “excess amount” will be held unallocated in a “Section 415
suspense account.” The “Section 415 suspense account” will be applied to
reduce future Employer contributions for all remaining Participants in the next
“limitation year,” and each succeeding “limitation year” if necessary;

 

(4)                                  If
a “Section 415 suspense account” is in existence at any time during the “limitation
year” pursuant to this Section, it will not participate in the allocation of
investment gains and losses of the Trust Fund. If a “Section 415 suspense
account” is in existence at any time during a particular “limitation year,” all
amounts in the “Section 415 suspense account” must be allocated and
reallocated to Participants’ accounts before any Employer contributions or any
Employee contributions may be made to the Plan for that “limitation year.”
Except as provided in (1) above, “excess amounts” may not be distributed to
Participants or Former Participants.

 

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

 

(c)                                  For purposes of this
Section, “Section 415 suspense account” shall mean an unallocated account
equal to the sum of “excess amounts” for all Participants in the Plan during
the “limitation year.”

 

51

 

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

 

(a)                                  With the consent of
the Administrator, amounts may be transferred (within the meaning of Code Section 414(l))
to this Plan from other tax qualified plans under Code Section 401(a) by
Eligible Employees, provided the trust from which such funds are transferred
permits the transfer to be made and the transfer will not jeopardize the tax
exempt status of the Plan or Trust or create adverse tax consequences for the
Employer. Prior to accepting any transfers to which this Section applies,
the Administrator may require an opinion of counsel that the amounts to be
transferred meet the requirements of this Section. The amounts transferred
shall be set up in a separate account herein referred to as a Participant’s
Transfer/Rollover Account. Furthermore, for vesting purposes, the Participant’s
portion of the Participant’s Transfer/Rollover Account attributable to any
transfer shall be subject to Section 6.4(c).

 

Except as permitted by
Regulations (including Regulation 1.411(d)-4), amounts attributable to elective
contributions (as defined in Regulation 1.401(k)-1(g)(3)), including amounts
treated as elective contributions, which are transferred from another qualified
plan in a plan-to-plan transfer (other than a direct rollover) shall be subject
to the distribution limitations provided for in Regulation 1.401(k)-1(d).

 

(b)                                 With the consent of
the Administrator, the Plan may accept a “rollover” by Eligible Employees,
provided the “rollover” will not jeopardize the tax exempt status of the Plan
or create adverse tax consequences for the Employer. Prior to accepting any “rollovers”
to which this Section applies, the Administrator may require the Employee
to establish (by providing opinion of counsel or otherwise) that the amounts to
be rolled over to this Plan meet the requirements of this Section. The amounts
rolled over shall be set up in a separate account herein referred to as a “Participant’s
Transfer/Rollover Account.” Such account shall be fully Vested at all times and
shall not be subject to Forfeiture for any reason.

 

For purposes of this Section,
the term “qualified plan” shall mean any tax qualified plan under Code Section 401(a),
or, any other plans from which distributions are eligible to be rolled over
into this Plan pursuant to the Code. The term “rollover” means: (i) amounts
transferred to this Plan directly from another qualified plan; (ii)
distributions received by an Employee from other “qualified plans” which are
eligible for tax-free rollover to a “qualified plan” and which are transferred
by the Employee to this Plan within sixty (60) days following receipt thereof;
(iii) amounts transferred to this Plan from a conduit individual retirement
account provided that the conduit individual retirement account has no assets
other than assets which (A) were previously distributed to the Employee by
another “qualified plan,” (B) were eligible for tax-free rollover to a “qualified
plan” and (C) were deposited in such conduit individual retirement account
within sixty (60) days of receipt thereof; (iv)

 

52

 

amounts
distributed to the Employee from a conduit individual retirement account
meeting the requirements of clause (iii) above, and transferred by the Employee
to this Plan within sixty (60) days of receipt thereof from such conduit
individual retirement account; and (v) any other amounts which are eligible to
be rolled over to this Plan pursuant to the Code.

 

(c)                                  Amounts in a
Participant’s Transfer/Rollover Account shall be held by the Trustee pursuant
to the provisions of this Plan and may not be withdrawn by, or distributed to
the Participant, in whole or in part, except as provided in paragraph (d) of
this Section. The Trustee shall have no duty or responsibility to inquire as to
the propriety of the amount, value or type of assets transferred, nor to
conduct any due diligence with respect to such assets; provided, however, that
such assets are otherwise eligible to be held by the Trustee under the terms of
this Plan.

 

(d)                                 The Administrator, at
the election of the Participant, shall direct the Trustee to distribute all or
a portion of the amount credited to the Participant’s Transfer/Rollover
Account. Any distributions of amounts held in a Participant’s Transfer/Rollover
Account shall be made in a manner which is consistent with and satisfies the
provisions of Section 6.5, including, but not limited to, all notice and
consent requirements of Code Section 411(a)(11) and the Regulations
thereunder. Furthermore, such amounts shall be considered as part of a
Participant’s benefit in determining whether an involuntary cash-out of
benefits may be made without Participant consent.

 

(e)                                  The Administrator may
direct that Employee transfers and rollovers made after a Valuation Date be
segregated into a separate account for each Participant until such time as the
allocations pursuant to this Plan have been made, at which time they may remain
segregated or be invested as part of the general Trust Fund or be directed by
the Participant pursuant to Section 4.12.

 

(f)                                    This Plan shall not
accept any direct or indirect transfers (as that term is defined and
interpreted under Code Section 401(a)(11) and the Regulations thereunder)
from a defined benefit plan, money purchase plan (including a target benefit
plan), stock bonus or profit sharing plan which would otherwise have provided
for a life annuity form of payment to the Participant.

 

(g)                                 Notwithstanding
anything herein to the contrary, a transfer directly to this Plan from another
qualified plan (or a transaction having the effect of such 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 7.1.

 

53

 

4.12                           DIRECTED INVESTMENT ACCOUNT

 

(a)                                  Participants may,
subject to a procedure established by the Administrator (the Participant
Direction Procedures) and applied in a uniform nondiscriminatory manner, direct
the Trustee, in writing (or in such other form which is acceptable to the
Trustee), to invest all of their accounts in specific assets, specific funds or
other investments permitted under the Plan and the Participant Direction
Procedures. That portion of the interest of any Participant so directing will
thereupon be considered a Participant’s Directed Account.

 

(b)                                 As of each Valuation
Date, all Participant Directed Accounts shall be charged or credited with the
net earnings, gains, losses and expenses as well as any appreciation or
depreciation in the market value using publicly listed fair market values when
available or appropriate as follows:

 

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

 

(2)                                  to
the extent that the assets in the Participant’s Directed Account are accounted
for as segregated assets, the allocation of earnings, gains and losses from
such assets shall be made on a separate and distinct basis.

 

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

 

54

 

(d)                                 The Participant
Direction Procedures shall provide an explanation of the circumstances under
which Participants and their Beneficiaries may give investment instructions,
including, but need not be limited to, the following:

 

(1)                                  the
conveyance of instructions by the Participants and their Beneficiaries to
invest Participant Directed Accounts in Directed Investment Options;

 

(2)                                  the
name, address and phone number of the Fiduciary (and, if applicable, the person
or persons designated by the Fiduciary to act on its behalf) responsible for
providing information to the Participant or a Beneficiary upon request relating
to the Directed Investment Options;

 

(3)                                  applicable
restrictions on transfers to and from any Designated Investment Alternative;

 

(4)                                  any
restrictions on the exercise of voting, tender and similar rights related to a
Directed Investment Option by the Participants or their Beneficiaries;

 

(5)                                  a
description of any transaction fees and expenses which affect the balances in
Participant Directed Accounts in connection with the purchase or sale of
Directed Investment Options; and

 

(6)                                  general
procedures for the dissemination of investment and other information relating
to the Designated Investment Alternatives as deemed necessary or appropriate,
including but not limited to a description of the following:

 

(i)                                     the
investment vehicles available under the Plan, including specific information
regarding any Designated Investment Alternative;

 

(ii)                                  any
designated Investment Managers; and

 

(iii)                               a
description of the additional information which may be obtained upon request
from the Fiduciary designated to provide such information.

 

(e)                                  Any information
regarding investments available under the Plan, to the extent not required to
be described in the Participant Direction Procedures, may be provided to the
Participant in one or more written documents (or in any other form including,
but not limited to, electronic media) which are separate from the Participant
Direction Procedures and are not thereby incorporated by reference into this
Plan.

 

55

 

(f)                                    The Administrator
may, in its discretion, include in or exclude by amendment or other action from
the Participant Direction Procedures such instructions, guidelines or policies
as it deems necessary or appropriate to ensure proper administration of the
Plan, and may interpret the same accordingly.

 

4.13                           QUALIFIED MILITARY SERVICE

 

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

 

ARTICLE V

VALUATIONS

 

5.1                                 VALUATION
OF THE TRUST FUND

 

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

 

5.2                                 METHOD
OF VALUATION

 

In determining
the fair market value of securities held in the Trust Fund which are listed on
a registered stock exchange, the Administrator shall direct the Trustee to
value the same at the prices they were last traded on such exchange preceding
the close of business on the Valuation Date. If such securities were not traded
on the Valuation Date, or if the exchange on which they are traded was not open
for business on the Valuation Date, then the securities shall be valued at the
prices at which they were last traded prior to the Valuation Date. Any unlisted
security held in the Trust Fund shall be valued at its bid price next preceding
the close of business on the Valuation Date, which bid price shall be obtained
from a registered broker or an investment banker. In determining the fair
market value of assets other than securities for which trading or bid prices
can be obtained, the Trustee may appraise such assets itself, or in its
discretion, employ one or more appraisers for that purpose and rely on the
values established by such appraiser or appraisers.

 

56

 

ARTICLE VI

DETERMINATION AND DISTRIBUTION OF BENEFITS

 

6.1                                 DETERMINATION OF
BENEFITS UPON RETIREMENT

 

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

 

6.2                                 DETERMINATION OF
BENEFITS UPON DEATH

 

(a)                                  Upon the death of a
Participant before the Participant’s Retirement Date or other termination of
employment, all amounts credited to such Participant’s Combined Account shall
become fully Vested. The Administrator shall direct the Trustee, in accordance
with the provisions of Sections 6.6 and 6.7, to distribute the value of the
deceased Participant’s accounts to the Participant’s Beneficiary.

 

(b)                                 Upon the death of a
Former Participant, the Administrator shall direct the Trustee, in accordance
with the provisions of Sections 6.6 and 6.7, to distribute any remaining Vested
amounts credited to the accounts of a deceased Former Participant to such
Former Participant’s Beneficiary.

 

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

 

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

 

(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

 

57

 

(4)                                  the
spouse cannot be located.

 

In such event, the designation
of a Beneficiary shall be made on a form satisfactory to the Administrator. A
Participant may at any time revoke a designation of a Beneficiary or change a
Beneficiary by filing written (or in such other form as permitted by the
Internal Revenue Service) notice of such revocation or change with the
Administrator. However, the Participant’s spouse must again consent in writing
(or in such other form as permitted by the Internal Revenue Service) to any
change in Beneficiary unless the original consent acknowledged that the spouse
had the right to limit consent only to a specific Beneficiary and that the
spouse voluntarily elected to relinquish such right.

 

(e)                                  In the event no valid
designation of Beneficiary exists, or if the Beneficiary is not alive at the
time of the Participant’s death, the death benefit will be paid in the
following order of priority to:

 

(1)                                  the
Participant’s surviving spouse;

 

(2)                                  the
Participant’s children, including adopted children, in equal shares; or

 

(3)                                  the
Participant’s estate.

 

If the Beneficiary does not
predecease the Participant, but dies prior to distribution of the death
benefit, the death benefit will be paid to the Beneficiary’s estate.

 

6.3                                 DETERMINATION OF
BENEFITS IN EVENT OF DISABILITY

 

In the event
of a Participant’s Total and Permanent Disability prior to the Participant’s
Retirement Date or other termination of 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 Administrator, in
accordance with the provisions of Sections 6.5 and 6.7, shall direct the
distribution to such Participant of all Vested amounts credited to such
Participant’s Combined Account.

 

6.4                                 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, then such Participant shall be
entitled to such benefits as are provided hereinafter pursuant to this Section 6.4.

 

Distribution of the funds due
to a Terminated Participant shall be made on the occurrence of an event which
would result in the distribution had the Terminated Participant remained in the
employ of the Employer (upon the Participant’s death, Total and Permanent
Disability or

 

58

 

Normal
Retirement). However, at the election of the Participant, the Administrator
shall direct the Trustee that the entire Vested portion of the Terminated
Participant’s Combined Account be payable to such Terminated Participant. Any
distribution under this paragraph shall be made in a manner which is consistent
with and satisfies the provisions of Section 6.5, including, but not
limited to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder.

 

If the value of a Terminated
Participant’s Vested benefit derived from Employer and Employee contributions
does not exceed $5,000, then the Administrator shall direct the Trustee to
cause the entire Vested benefit to be paid to such Participant in a single lump
sum.

 

For purposes of this Section 6.4,
if the value of a Terminated Participant’s Vested benefit is zero, the
Terminated Participant shall be deemed to have received a distribution of such
Vested benefit.

 

(b)                                 Participants who are
actively employed on or after January 1, 2002, shall become fully Vested
immediately upon entry into the Plan.

 

(c)                                  Participants who
terminated employment prior to January 1, 2002, the Vested portion of
their Account attributable to Employer contributions other than contributions made
pursuant to Section 4.1(b) shall be a percentage of the total amount
credited to the Participant’s Account determined on the basis of the
Participant’s number of Years of Service according to the following schedule:

 

	
  Vesting Schedule

  
	
  Years of Service

  	
   

  	
  Percentage

  
	
   

  	
   

  	
   

  
	
  Less than 3

  	
   

  	
  0%

  
	
  3

  	
   

  	
  20%

  
	
  4

  	
   

  	
  40%

  
	
  5

  	
   

  	
  60%

  
	
  6

  	
   

  	
  80%

  
	
  7

  	
   

  	
  100%

  

 

(d)                                 Notwithstanding the
vesting attributable to Employer discretionary contributions provided for in
paragraph 6.4(c) above, for any Top Heavy Plan Year, the Vested portion of the Participant’s
Account attributable to Employer discretionary contributions of any Participant
who has an Hour of Service after the Plan becomes top heavy shall be a
percentage of the amount credited to the Participant’s Account attributable to
Employer discretionary contributions determined on the basis of the Participant’s
number of Years of Service according to the following schedule:

 

59

 

	
  Vesting Schedule

  
	
  Years of Service

  	
   

  	
  Percentage

  
	
   

  	
   

  	
   

  
	
  Less than 3

  	
   

  	
  0%

  
	
  3

  	
   

  	
  20%

  
	
  4

  	
   

  	
  40%

  
	
  5

  	
   

  	
  60%

  
	
  6

  	
   

  	
  80%

  
	
  7

  	
   

  	
  100%

  

 

If in any subsequent Plan Year,
the Plan ceases to be a Top Heavy Plan, the Administrator shall revert to the
vesting schedule in effect before this Plan became a Top Heavy Plan. Any
such reversion shall be treated as a Plan amendment pursuant to the terms of
the Plan.

 

(e)                                  Notwithstanding the
vesting schedule above, the Vested percentage of a Participant’s Account
shall not be less than the Vested percentage attained as of the later of the
effective date or adoption date of this amendment and restatement.

 

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

 

(1)                                  the
adoption date of the amendment,

 

(2)                                  the
effective date of the amendment, or

 

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

 

60

 

6.5                                 DISTRIBUTION
OF BENEFITS

 

(a)                                  The Administrator,
pursuant to the election of the Participant, shall direct the Trustee to
distribute to a Participant or such Participant’s Beneficiary any amount to
which the Participant is entitled under the Plan in one lump-sum payment in
cash or in property allocated to the Participant’s account.

 

(b)                                 Any distribution to a
Participant who has a benefit which exceeds $5,000, shall require such Participant’s
written (or in such other form as permitted by the Internal Revenue Service)
consent if such distribution occurs prior to the time the benefit is “immediately
distributable.” A benefit is “immediately distributable” if any part of the
benefit could be distributed to the Participant (or surviving spouse) before
the Participant attains (or would have attained if not deceased) the later of
the Participant’s Normal Retirement Age or age 62.

 

(c)                                  The following rules
will apply to the consent requirements set forth in subsection (b):

 

(1)                                  The
Participant must be informed of the right to defer receipt of the distribution.
If a Participant fails to consent, it shall be deemed an election to defer the
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 6.5(d).

 

(2)                                  Notice
of the rights specified under this paragraph shall be provided no less than
thirty (30) days and no more than ninety (90) days before the date the
distribution commences.

 

(3)                                  Written
(or such other form as permitted by the Internal Revenue Service) consent of
the Participant to the distribution must not be made before the Participant
receives the notice and must not be made more than ninety (90) days before the
date the distribution commences.

 

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

 

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

 

61

 

(d)                                 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 benefits shall be distributed or must begin to be distributed not
later than April 1st of the calendar year following the later of (i) the
calendar year in which the Participant attains age 70 1/2 or (ii) the calendar
year in which the Participant retires, provided, however, that this clause (ii)
shall not apply in the case of a Participant who is a “five (5) percent owner”
at any time during the Plan Year ending with or within the calendar year in
which such owner attains age 70 1/2. Such distributions shall be equal to or
greater than any required distribution.

 

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

 

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

 

(e)                                  For purposes of this
Section, the life expectancy of a Participant and a Participant’s spouse shall
not be redetermined in accordance with Code Section 401(a)(9)(D). Life
expectancy and joint and last survivor expectancy shall be computed using the
return multiples in Tables V and VI of Regulation 1.72-9.

 

(f)                                    All annuity
Contracts under this Plan shall be non-transferable when distributed.
Furthermore, the terms of any annuity Contract purchased and distributed to a
Participant or spouse shall comply with all of the requirements of the Plan.

 

(g)                                 If a distribution is
made to a Participant who has not severed employment and who is not fully
Vested in the Participant’s Account and the Participant may increase the Vested
percentage in such

 

62

 

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

 

X equals P(AB plus D) - D

 

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

 

6.6                                 DISTRIBUTION OF
BENEFITS UPON DEATH

 

(a)                                  The death benefit
payable pursuant to Section 6.2 shall be paid to the Participant’s
Beneficiary in one lump-sum payment in cash or in property allocated to the
Participant’s account subject to the rules of Section 6.6(b).

 

(b)                                 Notwithstanding any
provision in the Plan to the contrary, distributions upon the death of a
Participant shall be made in accordance with the following requirements and
shall otherwise comply with Code Section 401(a)(9) and the Regulations
thereunder. If it is determined, pursuant to Regulations, that the distribution
of a Participant’s interest has begun and the Participant dies before the
entire interest has been distributed, the remaining portion of such interest
shall be distributed at least as rapidly as under the method of distribution
selected pursuant to Section 6.5 as of the date of death. If a Participant
dies before receiving any distributions of the interest in the Plan or before
distributions are deemed to have begun pursuant to Regulations, then the death
benefit shall be distributed to the Participant’s Beneficiaries by December 31st
of the calendar year in which the fifth anniversary of the Participant’s date
of death occurs.

 

However, the 5-year
distribution requirement of the preceding paragraph shall not apply to any
portion of the deceased Participant’s interest which is payable to or for the
benefit of a designated Beneficiary. In such event, such portion shall be
distributed over a period not extending beyond the life expectancy of such
designated Beneficiary provided such distribution begins not later than December 31st
of the calendar year immediately following the calendar year in which the
Participant died. However, in the event the Participant’s spouse (determined as
of the date of the Participant’s death) is the designated Beneficiary, the
requirement that distributions commence within one year of a Participant’s death
shall not apply. In lieu thereof, distributions must commence on or before the
later of: (1) December 31st of the calendar year immediately following the
calendar year in which the Participant died; or (2) December 31st of the
calendar year in which the Participant would have attained age 70 1/2. If the
surviving spouse dies before

 

63

 

distributions
to such spouse begin, then the 5-year distribution requirement of this Section shall
apply as if the spouse was the Participant.

 

(c)                                  For purposes of this
Section, any amount paid to a child of the Participant will be treated as if it
had been paid to the surviving spouse if the amount becomes payable to the
surviving spouse when the child reaches the age of majority.

 

6.7                                 TIME OF SEGREGATION OR
DISTRIBUTION

 

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

 

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

 

6.8                                 DISTRIBUTION FOR MINOR
OR INCOMPETENT BENEFICIARY

 

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

 

6.9                                 LOCATION OF
PARTICIPANT OR BENEFICIARY UNKNOWN

 

In the event
that all, or any portion, of the distribution payable to a Participant or
Beneficiary hereunder shall, at the later of the Participant’s attainment of
age 62 or Normal Retirement Age, remain unpaid solely by reason of the
inability of the Administrator, after sending a registered letter, return
receipt requested, to the last known address, and after further diligent
effort, to ascertain the whereabouts of such Participant or Beneficiary, the
amount so distributable shall be treated as a Forfeiture pursuant to the Plan.
Notwithstanding the foregoing, if the value of a Participant’s Vested benefit
derived from Employer and Employee contributions does not exceed $5,000, then
the amount distributable may, in the sole discretion of the Administrator,
either be treated as a

 

64

 

Forfeiture, or be paid directly to an individual retirement account
described in Code Section 408(a) or an individual retirement annuity
described in Code Section 408(b) at the time it is determined that the
whereabouts of the Participant or the Participant’s Beneficiary cannot be
ascertained. In the event a Participant or Beneficiary is located subsequent to
the Forfeiture, such benefit shall be restored, first from Forfeitures, if any,
and then from an additional Employer contribution if necessary. However,
regardless of the preceding, a benefit which is lost by reason of escheat under
applicable state law is not treated as a Forfeiture for purposes of this Section nor
as an impermissable forfeiture under the Code.

 

6.10                           PRE-RETIREMENT DISTRIBUTION

 

Unless
otherwise provided, at such time as a Participant shall have attained the age
of 59 1/2 years, the Administrator, at the election of the Participant who has
not severed employment with the Employer, shall direct the Trustee to
distribute all or a portion of the Vested amount then credited to the accounts
maintained on behalf of the Participant. In addition, a Pre-retirement
distribution may be taken from a Participant’s Transfer/Rollover Account at any
time (see also Section 4.11(d)). In the event that the Administrator makes
a distribution under this Section 6.10, the Participant shall continue to
be eligible to participate in the Plan on the same basis as any other Employee.
Any distribution made pursuant to this Section shall be made in a manner
consistent with Section 6.5, including, but not limited to, all notice and
consent requirements of Code Section 411(a)(11) and the Regulations
thereunder.

 

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

 

6.11                           ADVANCE DISTRIBUTION FOR
HARDSHIP

 

(a)                                  The Administrator, at
the election of the Participant, shall direct the Trustee to distribute to any
Participant in any one Plan Year up to the lesser of 100% of the Participant’s
Elective Account (excluding amounts attributable to the Employer contribution
made pursuant to Section 4.1(b)) 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 first day of the Plan Year or, if later, the Valuation Date
immediately preceding the date of distribution, and the Participant’s Elective
Account shall be reduced accordingly. Withdrawal under this Section is
deemed to be on account of an immediate and heavy financial need of the
Participant only if the withdrawal is for:

 

(1)                                  Medical
expenses described in Code Section 213(d) incurred by the Participant, the
Participant’s spouse, or any of the Participant’s dependents (as defined in
Code Section 152) or 

 

65

 

necessary for
these persons to obtain medical care as described in Code Section 213(d);

 

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

 

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

 

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

 

(5)                                  Military
Service by the Participant or the Participant’s spouse.

 

(6)                                  Non-insured
property losses and unaniticpated additional living expenses incurred by a
Participant or the Participant’s spouse or a dependent of the Participant and
directly caused by a sudden and unexpected act of nature such as flood,
earthquake, hurricane, storm, wildfire or tornado.

 

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

 

(1)                                  The
distribution is not in excess of the amount of the immediate and heavy
financial need of the Participant. The amount of the immediate and heavy
financial need may include any amounts necessary to pay any federal, state, or
local income taxes or penalties reasonably anticipated to result from the
distribution;

 

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

 

(3)                                  The
Plan, and all other plans maintained by the Employer, provide that the
Participant’s elective deferrals and after-tax voluntary Employee contributions
will be suspended for at least twelve (12) months after receipt of the hardship
distribution or, the Participant, pursuant to a legally enforceable agreement,
will suspend elective deferrals and after-tax voluntary Employee contributions
to the Plan and all other plans maintained by the

 

66

 

Employer for at least twelve (12) months
after receipt of the hardship distribution; and

 

(4)                                  The
Plan, and all other plans maintained by the Employer, provide that the
Participant may not make elective deferrals for the Participant’s taxable year
immediately following the taxable year of the hardship distribution in excess
of the applicable limit under Code Section 402(g) for such next taxable
year less the amount of such Participant’s elective deferrals for the taxable
year of the hardship distribution.

 

(c)                                  With respect to
military service:

 

(1)                                  The
expected duration of service is 3 months or more and must be supported by
military orders.

 

(2)                                  Due
to military requirements the Participant or the Participant’s spouse are unable
to work their normal job and therefore will lose a minimum of 20% of income.

 

(3)                                  The
Administrator will make the determination if the combined income of the
Participant and the Participant’s spouse will decrease by a minimum of 20% due
to military service based on the following criteria:

 

(4)                                  If
the Participant’s spouse is on military leave, the Participant must provide the
Administrator with copies of their spouse’s paycheck stubs from their former
employer (if spouse is self-employed, the Participant must provide prior year’s
tax return) and proof of what the spouse is being paid by the military.

 

(5)                                  If
the Participant is on military leave, the participant must provide the
Administrator with copies of their spouse’s paycheck stubs from their current
employer (if spouse is self-employed, the Participant must provide prior year’s
tax return) and proof of what the Participant is being paid by the military.

 

The following conditions and
limitations shall apply for military service:

 

(1)                                  The
Participant may not request a hardship withdrawal until the Participant or the
Participant’s spouse has completed 2 months of military service.

 

67

 

(2)                                  The maximum amount
available will be determined by the Administrator in accordance with the
following:

 

(A)                              The difference between
the Participant and the Participant spouse’s prior income and their combined
income during the 3-month period of military service. (The 3 months
determination will be based on the 2 months of completed military service and 1
month of expected military service.)

 

(B)                                If the Participant or
the Participant’s spouse continues in the military, the Participant may request
additional hardship withdrawals after completion of additional 3 months of
military service. The maximum amount available will be determined by the
Administrator in accordance with the above.

 

(d)                                 With respect to acts
of nature:

 

(1)                                  The
Participant provides a certification that the financial need cannot reasonably
be relieved by liquidation of the Participant’s assets or by borrowing on
commercially reasonable terms in an amount sufficient to satisfy the need, and
that the loss or additional cost was not reimbursed by insurance or by Federal,
state or private relief agencies.

 

(2)                                  The
Participant provides written documentation establishing the additional expense
and, in the case of casualty loss, the amount of repair and replacement, with
the reimbursable amount being the lesser of the two, plus taxes on the
distribution.

 

(e)                                  Notwithstanding the
above, distributions from the Participant’s Elective Account pursuant to this Section shall
be limited, as of the date of distribution, to the Participant’s Elective
Account as of the end of the last Plan Year ending before July 1, 1989,
plus the total Participant’s Deferred Compensation after such date, reduced by
the amount of any previous distributions pursuant to this Section and Section 6.10.

 

(f)                                    Any distribution
made pursuant to this Section shall be made in a manner which is
consistent with and satisfies the provisions of Section 6.5, including,
but not limited to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder.

 

6.12                           QUALIFIED DOMESTIC RELATIONS
ORDER DISTRIBUTION

 

All rights and
benefits, including elections, provided to a Participant in this Plan shall be
subject to the rights afforded to any “alternate payee” under a “qualified
domestic relations order.” Furthermore, a distribution to an “alternate payee”
shall be permitted if such distribution is authorized by a “qualified domestic
relations order,” even if the affected Participant has not separated from
service and has not reached the “earliest

 

68

 

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).

 

6.13                           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” that is equal to at least $500 paid directly to an “eligible
retirement plan” specified by the “distributee” in a “direct rollover.”

 

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

 

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

 

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

 

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

 

69

 

“distributees” with regard to the interest of
the spouse or former spouse.

 

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

 

ARTICLE VII

AMENDMENT, TERMINATION AND MERGERS

 

7.1                                 AMENDMENT

 

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

 

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

 

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

 

(1)                                  The
amendment provides a single-sum distribution form that is otherwise identical
to the optional form of benefit eliminated or restricted.  For purposes of this condition (1), a

 

70

 

single-sum distribution form is otherwise identical only if it is
identical in all respects to the eliminated or restricted optional form of
benefit (or would be identical except that it provides greater rights to the
Participant) except with respect to the timing of payments after commencement.

 

(2)                                  The
amendment is not effective unless the amendment provides that the amendment
shall not apply to any distribution with an annuity starting date earlier than
the earlier of: (i) the ninetieth (90th) day after the date the Participant
receiving the distribution has been furnished a summary that reflects the
amendment and that satisfies the Act requirements at 29 CFR 2520.104b-3
(relating to a summary of material modifications) or (ii) the first day of the
second Plan Year following the Plan Year in which the amendment is adopted.

 

7.2                                 TERMINATION

 

(a)                                  The Employer shall
have the right at any time to terminate the Plan by delivering to the Trustee
and Administrator written notice of such termination. Upon any full or partial
termination, all amounts credited to the affected Participants’ Combined
Accounts shall become 100% Vested as provided in Section 6.4 and shall not
thereafter be subject to forfeiture, and all unallocated amounts, including
Forfeitures, shall be allocated to the accounts of all Participants in
accordance with the provisions hereof.

 

(b)                                 Upon the full
termination of the Plan, the Employer shall direct the distribution of the
assets of the Trust Fund to Participants in a manner which is consistent with
and satisfies the provisions of Section 6.5. Distributions to a
Participant shall be made in cash or in property allocated to the Participant’s
account or through the purchase of irrevocable nontransferable deferred
commitments from an insurer. Except 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 7.1(c).

 

7.3                                 MERGER, CONSOLIDATION
OR TRANSFER OF ASSETS

 

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 7.1(c).

 

71

 

ARTICLE VIII

TOP HEAVY

 

8.1                                 TOP
HEAVY PLAN REQUIREMENTS

 

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

 

8.2                                 DETERMINATION OF TOP
HEAVY STATUS

 

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

 

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

 

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

 

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

 

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

 

72

 

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

 

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

 

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

 

(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.

 

73

 

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

 

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

 

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

 

(2)                                  Permissive
Aggregation Group: The Employer may also include any other plan not required to
be included in the Required Aggregation Group, provided the resulting group,
taken as a whole, would continue to satisfy the provisions of Code Sections
401(a)(4) and 410. Such group shall be known as a Permissive Aggregation Group.

 

In the case of a Permissive Aggregation
Group, only a plan that is part of the Required Aggregation Group will be
considered a Top Heavy Plan if the Permissive Aggregation Group is a Top Heavy
Group. No plan in the Permissive Aggregation Group will be considered a Top
Heavy Plan if the Permissive Aggregation Group is not a Top Heavy Group.

 

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

 

(4)                                  An
Aggregation Group shall include any terminated plan of the Employer if it was
maintained within the last five (5) years ending on the Determination Date.

 

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

 

(e)                                  Present Value of
Accrued Benefit: In the case of a defined benefit plan, the Present Value of
Accrued Benefit for a Participant other

 

74

 

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

 

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

 

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

 

(2)                                  the
Aggregate Accounts of Key Employees under all defined contribution plans
included in the group,

 

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

 

ARTICLE IX

MISCELLANEOUS

 

9.1                                 PARTICIPANT’S
RIGHTS

 

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

 

9.2                                 ALIENATION

 

(a)                                  Subject to the
exceptions provided below, and as otherwise permitted by the Code and the Act,
no benefit which shall be payable out of the Trust Fund to any person
(including a Participant or the Participant’s Beneficiary) shall be subject in
any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, or charge the same shall be void; and no
such benefit shall in any manner be liable for, or subject to, the debts,
contracts, liabilities, engagements, or torts of any such person, nor shall it
be subject to attachment or legal

 

75

 

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

 

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

 

9.3                                 CONSTRUCTION
OF PLAN

 

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

 

9.4                                 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.

 

9.5                                 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.

 

9.6                                 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

 

76

 

other means, for any part of the corpus or income of any Trust Fund
maintained pursuant to the Plan or any funds contributed thereto to be used
for, or diverted to, purposes other than the exclusive benefit of Participants,
Former Participants, or their Beneficiaries.

 

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

 

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

 

9.7                                 EMPLOYER’S AND TRUSTEE’S
PROTECTIVE CLAUSE

 

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

 

9.8                                 INSURER’S
PROTECTIVE CLAUSE

 

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

 

77

 

9.9                                 RECEIPT AND RELEASE
FOR PAYMENTS

 

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

 

9.10                           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.

 

9.11                           NAMED FIDUCIARIES AND
ALLOCATION OF RESPONSIBILITY

 

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

 

9.12                           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.

 

78

 

9.13                           APPROVAL BY INTERNAL REVENUE
SERVICE

 

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

 

9.14                           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.

 

 

79

 

IN WITNESS
WHEREOF, this Plan has been executed on the day and year written below.

 

Signed, sealed, and delivered 

in the presence of:

 

	
   

  	
   

  	
  Universal City Development Partners,

  Ltd. d/b/a Universal Orlando

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Glenda
  Kordich

  	
   

  	
  By

  	
  /s/ John R. Sprouls

  	
   

  
	
   

  	
   

  	
          EMPLOYER
  John R. Sprouls

  
	
   

  	
   

  	
   

  
	
  /s/ Tim
  Arnst

  	
   

  	
   

  	
  12/20/04

  	
   

  
	
  WITNESSES AS
  TO EMPLOYER

  	
   

  	
   

  	
  DATE

  
						

 

 

80Exhibit 10.28

 

AMENDMENT OF THE PLAN FOR EGTRRA,

REVENUE RULING 2002-27 AND

REVENUE PROCEDURE 2002-29

 

AMENDMENT NUMBER ONE TO

UNIVERSAL ORLANDO

401(K) RETIREMENT PLAN

 

 

AMENDMENT OF THE PLAN FOR EGTRRA,

REVENUE RULING 2002-27 AND

REVENUE PROCEDURE 2002-29

 

AMENDMENT NUMBER ONE TO

UNIVERSAL ORLANDO

401(K) RETIREMENT PLAN

 

BY THIS AGREEMENT, Universal
Orlando 401(k) Retirement Plan (herein referred to as the Plan) is hereby
amended as follows:

 

ARTICLE I

PREAMBLE

 

1.1                                 Adoption
and effective date of amendment.  This
amendment of the Plan is adopted to reflect certain provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the model amendment
of Revenue Ruling 2002-27 and the model amendment of Revenue Procedure
2002-29.  This amendment is intended as
good faith compliance with the requirements of EGTRRA, the model amendment of
Revenue Ruling 2002-27 and the model amendment of Revenue Procedure 2002-29 and
is to be construed in accordance with EGTRRA, the model amendment of Revenue
Ruling 2002-27 and the model amendment of Revenue Procedure 2002-29 and
guidance issued thereunder.  Except as
otherwise provided, this amendment shall be effective as of the first day of
the first Plan Year beginning after December 31, 2001.

 

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

 

ARTICLE II

LIMITATIONS ON CONTRIBUTIONS

 

2.1                                 Effective
date.  This Article shall be
effective for “limitation years” beginning after December 31, 2001.

 

2.2                                 Maximum
annual addition.  Except to the extent
permitted under Article IX of this amendment and Code Section 414(v),
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:

 

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

 

(b)                                 one-hundred
percent (100%) of the Participant’s “415 Compensation” for the “limitation
year.”

 

The “415 Compensation” limit
referred to in (b) shall not apply to any contribution for medical benefits
after separation from service (within the meaning of Code Section 401(h)
or Code Section 419A(f)(2)) which is otherwise treated as an “annual
addition.”

 

 

ARTICLE III

INCREASE IN COMPENSATION LIMIT

 

The annual Compensation of each
Participant taken into account in determining allocations for any Plan Year
beginning after December 31, 2001, shall not exceed $200,000, as adjusted
for cost-of-living increases in accordance with Code Section 401(a)(17)(B).

 

ARTICLE IV

MODIFICATION OF TOP-HEAVY RULES

 

4.1                                 Effective
date.  This Article shall apply for
purposes of determining whether the Plan is a top-heavy plan under Code Section 416(g)
for Plan Years beginning after December 31, 2001, and whether the Plan
satisfies the minimum benefits requirements of Code Section 416(c) for
such years.  This Article amends Article VIII
of the Plan.

 

4.2                                 Determination
of top-heavy status.

 

(a)                                  Key
employee.  Key employee means any
Employee or former Employee (including any deceased Employee) who at any time
during the Plan Year that includes the determination date was an officer of the
Employer having “415 Compensation” greater than $130,000 (as adjusted under
Code Section 416(i)(1) for Plan Years beginning after December 31,
2002), a 5-percent owner of the Employer, or a 1-percent owner of the Employer
having “415 Compensation” of more than $150,000.  The determination of who is a key employee
will be made in accordance with Code Section 416(i)(1) and the applicable
regulations and other guidance of general applicability issued thereunder.

 

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

 

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

 

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

 

4.3                                 Minimum
benefits. 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

 

2

 

preceding sentence shall apply
with respect to matching contributions under the Plan or, if the Plan provides
that the minimum contribution requirement shall be met in another plan, such
other plan.  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).

 

4.4                                 Applicability.
 The top-heavy requirements of Code Section 416,
Article VIII of the Plan and this Article IV shall not apply in any
Plan Year beginning after December 31, 2001, in which the Plan consists
solely of a cash or deferred arrangement which meets the requirements of Code Section 401(k)(12)
and matching contributions with respect to which the requirements of Code Section 401(m)(11)
are met.

 

ARTICLE V

DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS

 

5.1                                 Effective
date.  This Article shall apply to
distributions made after December 31, 2001.

 

5.2                                 Modification
of definition of eligible retirement plan.  For purposes of the direct rollover provisions
in Section 6.13 p.62 of the Plan, 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).

 

5.3                                 Modification
of definition of eligible rollover distribution to exclude hardship
distributions.  For purposes of the direct
rollover provisions in Section 6.13 p. 62 of the Plan, any amount
that is distributed on account of hardship shall not be an eligible rollover
distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an eligible retirement plan.

 

ARTICLE VI

ROLLOVERS FROM OTHER PLANS

 

The Administrator,
operationally and on a nondiscriminatory basis, may limit the source of
rollover contributions that may be accepted by this Plan.

 

ARTICLE VII

ROLLOVERS DISREGARDED IN INVOLUNTARY CASH-OUTS

 

7.1                                 Applicability
and effective date.  This Article applies
to rollover contributions and involuntary cash-outs, and shall be effective
with respect to distributions made on and after January 1, 2005 with
respect to Participants who separate from service on or after January 1,
2005.

 

7.2                                 Rollovers
disregarded in determining value of account balance for involuntary
distributions.  For purposes of the
Sections of the Plan that provide for the involuntary distribution of Vested
accrued benefits of $5,000 or less, the value of a Participant’s nonforfeitable
account balance shall be determined without regard to that portion of the
account balance that is attributable to rollover contributions (and

 

3

 

earnings allocable thereto)
within the meaning of Code Sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16).  If the
value of the Participant’s nonforfeitable account balance as so determined is
$5,000 or less, then the Plan shall immediately distribute the Participant’s
entire nonforfeitable account balance.

 

ARTICLE VIII

REPEAL OF MULTIPLE USE TEST

 

The multiple use test described
in Treasury Regulation Section 1.401(m)-2 and Section 4.5(a)(2) p.33
and 4.7(a)(2) p.38 of the Plan shall not apply for Plan Years beginning after December 31,
2001.

 

ARTICLE IX

CATCH-UP CONTRIBUTIONS

 

9.1                                 Effective
date.  This Article shall apply to
catch-up contributions made on and after January 1, 2005.

 

9.2                                 Applicability.
 All Employees who are eligible to make
salary reductions under this Plan and who are projected to attain age 50
before the end of a calendar year shall be eligible to make catch-up
contributions as of the January 1st of that calendar year 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 Section 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of the making
of such catch-up contributions.

 

ARTICLE X

SUSPENSION PERIOD FOLLOWING HARDSHIP DISTRIBUTION

 

A Participant who, after December 31,
2001, receives a hardship distribution pursuant to Regulation
1.401(k)-1(d)(2)(iv) of elective deferrals, shall be prohibited from making
elective deferrals and after-tax Employee contributions under this Plan and all
other plans maintained by the Employer for six (6) months after receipt of the
hardship distribution.  A Participant who
receives such a hardship distribution in calendar year 2001 shall be prohibited
from making elective deferrals and after-tax Employee contributions under this
Plan and all other plans maintained by the Employer for six (6) months after
receipt of the hardship distribution or until January 1, 2002, if later.

 

The provisions of paragraph (4)
of Section 6.11(b) of the Plan with respect to limitations on the amount
of deferrals in the year following a hardship distribution shall not apply for
years beginning on or after January 1, 2002.

 

[Eliminate 402(g) limitation
following hardship.]

 

4

 

ARTICLE XI

MODEL AMENDMENT UNDER REVENUE PROCEDURE 2002-29

MINIMUM DISTRIBUTION REQUIREMENTS

 

11.1                           General
Rules.

 

(a)                                  Effective
Date.  The provisions of this Article will
apply for purposes of determining required minimum distributions for calendar
years beginning with the 2003 calendar year.

 

(b)                                 Coordination
with Minimum Distribution Requirements Previously in Effect.  If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the effective
date of this Article equals or exceeds the required minimum distributions
determined under this Article, then no additional distributions will be
required to be made for 2002 on or after such date to the distributee.  If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the effective
date of this Article is less than the amount determined under this
Article, then required minimum distributions for 2002 on and after such date
will be determined so that the total amount of required minimum distributions
for 2002 made to the distributee will be the amount determined under this
Article.

 

(c)                                  Precedence.
 The requirements of this Article will
take precedence over any inconsistent provisions of the Plan.

 

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

 

11.2                           Time
and Manner of Distribution.

 

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

 

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

 

(1)                                  If
the Participant’s surviving spouse is the Participant’s sole designated
Beneficiary, then distributions to the surviving spouse will begin by December 31st
of the calendar year immediately following the calendar year in which the Participant
died, or by December 31st of the calendar year in which the Participant
would have attained age 70 1/2, if later.

 

(2)                                  If
the Participant’s surviving spouse is not the Participant’s sole designated
Beneficiary, then distributions to the designated Beneficiary will begin by December 31st
of the calendar year immediately following the calendar year in which the
Participant died.

 

(3)                                  If
there is no designated Beneficiary as of September 30th of the year
following the year of the Participant’s death, the Participant’s entire
interest will be distributed by

 

5

 

December 31st
of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(4)                                  If
the Participant’s surviving spouse is the Participant’s sole designated
Beneficiary and the surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this Section 11.2(b), other
than Section 11.2(b)(1), will apply as if the surviving spouse were the
Participant.

 

For purposes of this Section 11.2(b) and
Section 11.4, unless Section 11.2(b)(4) applies, distributions are
considered to begin on the Participant’s required beginning date. If Section 11.2(b)(4)
applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under Section 11.2(b)(1).

 

(c)                                  Form
of Distribution.  Unless the Participant’s
interest is distributed in a single sum on or before the required beginning
date, as of the first distribution calendar year distributions will be made in
accordance with Sections 11.3 and 11.4 of this Article.

 

11.3                           Required
Minimum Distributions During Participant’s Lifetime.

 

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

 

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

 

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

 

(b)                                 Lifetime
Required Minimum Distributions Continue Through Year of Participant’s Death.  Required minimum distributions will be
determined under this Section 11.3 beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

 

11.4                           Required
Minimum Distributions After Participant’s Death.

 

(a)                                  Death
On or After Date Distributions Begin.

 

(1)                                  Participant
Survived by Designated Beneficiary.  If
the Participant dies on or after the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the longer
of the remaining life expectancy of the Participant or the remaining life
expectancy of the Participant’s designated Beneficiary, determined as follows:

 

6

 

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

 

(ii)                                  If
the Participant’s surviving spouse is the Participant’s sole designated
Beneficiary, the remaining life expectancy of the surviving spouse is
calculated for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in hat year.  For distribution
calendar years after the year of the surviving spouse’s death, the remaining
life expectancy of the surviving spouse is calculated using the age of the
surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s
death, reduced by one for each subsequent calendar year.

 

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

 

(2)                                  No
Designated Beneficiary.  If the
Participant dies on or after the date distributions begin and there is no
designated Beneficiary as of September 30th of the year after the year of
the Participant’s death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the
Participant’s remaining life expectancy calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(b)                                 Death
Before Date Distributions Begin.

 

(1)                                  Participant
Survived by Designated Beneficiary.  If
the Participant dies before the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the
remaining life expectancy of the Participant’s designated Beneficiary,
determined as provided in Section 11.4(a).

 

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

 

(3)                                  Death
of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin.  If the Participant dies before
the date distributions begin, the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving spouse under Section 11.2(b)(1),
this Section 11.4(b) will apply as if the surviving spouse were the
Participant.

 

7

 

11.5                           Definitions.

 

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

 

(b)                                 Distribution
calendar year.  A calendar year for which
a minimum distribution is required.  For
distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year
which contains the Participant’s required beginning date.  For distributions beginning after the
Participant’s death, the first distribution calendar year is the calendar year
in which distributions are required to begin under Section 11.2(b).  The required minimum distribution for the
Participant’s first distribution calendar year will be made on or before the
Participant’s required beginning date.  The required minimum distribution for other
distribution calendar years, including the required minimum distribution for
the distribution calendar year in which the Participant’s required beginning
date occurs, will be made on or before December 31st of that distribution
calendar year.

 

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

 

(d)                                 Participant’s
account balance.  The account balance as
of the last valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the amount of
any contributions made and allocated or forfeitures allocated to the account
balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation calendar year after the
valuation date.  The account balance for
the valuation calendar year includes any amounts rolled over or transferred to
the plan either in the valuation calendar year or in the distribution calendar
year if distributed or transferred in the valuation calendar year.

 

(e)                                  Required
beginning date.  The date specified in
Sections 6.5(d) p.55 and 6.6(b) p.57 of the Plan.

 

ARTICLE XII

MODEL AMENDMENT UNDER REVENUE RULING 2002-27

COMPENSATION

 

12.1                           Effective
date.  This Article shall apply to
Plan Years and “limitation years” beginning on and after January 1, 2005.

 

12.2                           For
purposes of the definition of compensation under the Plan that includes a
reference to amounts under Code Section 125, amounts under Code Section 125
include any amounts not available to a Participant in cash in lieu of group
health coverage because the Participant is unable to certify that he or she has
other health coverage.  An amount will be
treated as an amount under Code Section 125 only if the Employer does not
request or collect information regarding the Participant’s other health
coverage as part of the enrollment process for the health plan.

 

8

 

IN WITNESS WHEREOF, this Amendment has been executed this          day
of                             .

 

Signed, sealed, and delivered

in the presence of:

 

	
   

  	
   

  	
  Universal
  City Development Partners, Ltd.

  
	
   

  	
   

  	
  d/b/a
  Universal Orlando

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Tim Arnst

  	
   

  	
  By

  	
    /s/ John R. Sprouls

  	
   

  
	
   

  	
   

  	
   

  	
  EMPLOYER  JOHN R. SPROULS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Glenda Kordich

  	
   

  	
  12/20/04

  	
   

  
	
  WITNESSES AS TO EMPLOYER

  	
   

  	
  DATE

  	
   

  
							

 

9

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