Document:

EXHIBIT 10.12.2 State
Bank of Long Island 401(k) Retirement Plan and Trust, as amended, Adoption
Agreement, as amended

	
  

 
	

 

 
	
  

 
	
 STATE BANK OF LONG ISLAND 401(K)
 RETIREMENT PLAN AND TRUST

 
	
  

 
	

 

 

Nonstandardized 401(k) Plan

ADOPTION AGREEMENT #005

NONSTANDARDIZED 401(k) PLAN

[Related Employers only]

          The
undersigned Employer, by executing this Adoption Agreement, establishes a
retirement plan and trust (collectively “Plan”) under the Prudential Retirement
Prototype Plan (basic plan document #03). The Employer, subject to the
Employer’s Adoption Agreement elections, adopts fully the Prototype Plan and
Trust provisions. This Adoption Agreement, the basic plan document and any
attached Appendices or agreements permitted or referenced therein, constitute the
Employer’s entire plan and trust document. All
“Election” references within this Adoption Agreement are Adoption Agreement
Elections. All “Article” or “Section” references are basic plan document
references. Numbers in parentheses which follow election numbers are basic plan
document references. Where an Adoption Agreement election calls for
the Employer to supply text, the Employer (without altering the content of any
existing printed text) may lengthen any space or line, or create additional
tiers. When Employer-supplied text uses terms substantially similar to existed
printed options, all clarifications and caveats applicable to the printed
options apply to the Employer-supplied text unless the context requires
otherwise. The Employer makes the following elections granted under the
corresponding provisions of the basic plan document. 

ARTICLE I

DEFINITIONS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 EMPLOYER (1.23).

 
	
  

 	
  

 
	
  

 	
 Name:
 State Bank of Long Island

 
	
  

 	
  

 
	
  

 	
 Address:
 2 Jericho Plaza, Wing C, Jericho, New York 11753

 
	
  

 	
  

 
	
  

 	
 Phone
 number: (516) 465-2260

 
	
  

 	
  

 
	
  

 	
 E-mail
 (optional): __________________________________

 
	
  

 	
  

 
	
  

 	
 Employer’s
 Taxable Year: ____________________________

 
	
  

 	
  

 
	
  

 	
 EIN:
 11-2124927

 
	
  

 	
  

 
	
 2.

 	
 PLAN (1.40).

 
	
  

 	
  

 
	
  

 	
 Name:
 State Bank of Long Island 401(k) Retirement Plan and Trust

 
	
  

 	
  

 
	
  

 	
 Plan
 number: 002  (3-digit number for Form 5500 reporting)

 
	
  

 	
  

 	
  

 
	
  

 	
 Trust
 EIN (optional):
 __________________________________

 
	
  

 	
  

 
	
 3.       PLAN/LIMITATION
 YEAR (1.42/1.33). Plan Year
 and Limitation Year mean the 12 consecutive month period (except for a short
 Plan/Limitation Year) ending every (Complete
 (a) and (b)):

 
	
  

 	
  

 
	
 [Note: Complete any applicable blanks under Election
 3 with a specific date, e.g., “June 30” OR “the last day of February” OR “the
 first Tuesday in January.” In the case of a Short Plan Year or a Short
 Limitation Year, include the year, e.g., “May 1, 2008.”]

 
	
  

 
	
 (a)

 	
 Plan Year (Choose
 one of (1) or (2) and choose (3) if applicable):

 
	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 December 31.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Fiscal Plan Year: ending: ____________.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Short Plan Year: commencing: ____________ and ending:
 ____________.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Limitation Year (Choose
 one of (1) or (2) and choose (3) if applicable):

 
	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 Generally same as Plan Year. The Limitation
 Year is the same as the Plan Year except where the Plan Year is a short year
 in which event the Limitation Year is always a 12 month period, unless the
 short Plan Year (and short Limitation Year) result from a Plan amendment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Different Limitation Year: ending:
 ____________.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Short Limitation Year: commencing:
 ____________ and ending: ____________.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.       EFFECTIVE
 DATE (1.19). The Employer’s
 adoption of the Plan is a (Choose one of
 (a), (b), or (c). Choose (d) if applicable):

 
	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 New Plan. The Plan’s Effective Date is: ____________.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Restated Plan. The Plan’s restated Effective Date is: January
 1, 2002. The Plan’s original Effective Date was: June 1, 1987.

 
	
  

 	
  

 	
  

 
	
 [Note:
 See Section 1.51 for the definition of Restated Plan. If this Plan is an EGTRRA restatement: (i) the
 EGTRRA restatement Effective Date must be the later of the beginning of the
 2002 Plan Year or the Plan’s original Effective Date; and (ii) if specific
 Plan provisions, as reflected in this Adoption Agreement, do not date back to
 the EGTRRA restatement Effective Date, indicate as such in Appendix A.]

 

© 2008 Prudential

1

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Restatement of surviving and merging plans. The Plan restates
 two (or more) plans (Complete (1) and (2).
 Choose (3) as applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 This (surviving) Plan. The Plan’s
 restated Effective Date is: _____________. The Plan’s original Effective Date
 was: _____________.

 
	
  

 	
  

 	
  

 
	
 [Note: If
 this Plan is an EGTRRA restatement: (i) the EGTRRA restatement Effective Date
 must be the later of the beginning of the 2002 Plan Year or the Plan’s
 original Effective Date; and (ii) if specific Plan provisions, as reflected
 in this Adoption Agreement, do not date back to the EGTRRA restatement
 Effective Date, indicate as such in Appendix A.]

 
	
  

 
	
  

 	
 (2)

 	
 Merging plan. The ______________________ Plan was or
 will be merged into this surviving Plan as of: _____________. The merging
 plan’s restated Effective Date is: _____________. The merging plan’s original
 Effective Date was: _____________.

 
	
  

 	
  

 	
  

 
	
  

 	
 [See the Note under Election 4(c)(1) if this
 document is the merging plan’s EGTRRA restatement.] 

 
	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Additional merging plans. The following
 additional plans were or will be merged into this surviving Plan (Complete a. and b. as applicable): 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name
 of merging plan

 	
 Merger date

 	
 Restated

 Effective Date

 	
 Original

 Effective Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 ______________________

 	
 ___________

 	
 ___________

 	
 ___________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 ______________________

 	
 ___________

 	
 ___________

 	
 ___________

 

	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Special Effective Date for Elective Deferral provisions:
 ___________________________________________

 
	
  

 	
  

 	
  

 
	
 5.       TRUSTEE (1.65). The Trustee executing this
 Adoption Agreement is (Choose one of (a),
 (b), (c), (d), or (e). Choose (f) if applicable):

 
	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 A discretionary Trustee. See Section
 8.02(A).

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 A nondiscretionary (directed) Trustee or Custodian. See Section
 8.02(B).

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 A Trustee under the Prudential Trust Company Trust
 Agreement, a separate trust agreement the Trustee has executed and that the IRS
 has approved for use with this Plan. Under this Election 5(c): (i) the
 Trustee is not executing the Adoption Agreement; and (ii) Article VIII of the
 basic plan document and any other basic plan document provisions which affect
 the Trustee do not apply, except as indicated otherwise in the separate trust
 agreement. See Section 8.11(C).

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [X]

 	
 A Trustee under the Prudential Bank & Trust Company, FSB Trust
 Agreement, a separate trust agreement the Trustee has executed and
 that the IRS has approved for use with this Plan. Under this Election 5(d):
 (i) the Trustee is not executing the Adoption Agreement; and (ii) Article
 VIII of the basic plan document and any other basic plan document provisions
 which affect the Trustee do not apply, except as indicated otherwise in the
 separate trust agreement. See Section 8.11(C).

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 A Trustee under the Pre-Approved Trust Agreement, a separate
 trust agreement the Trustee has executed and that the IRS has approved for
 use with this Plan. Under this Election 5(e): (i) the Trustee is not
 executing the Adoption Agreement; and (ii) Article VIII of the basic plan
 document and any other basic plan document provisions which affect the
 Trustee do not apply, except as indicated otherwise in the separate trust
 agreement. See Section 8.11(C).

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Permitted Trust amendments apply. Under Section
 8.11 the Employer in Appendix C has made certain permitted amendments to the
 Trust. Such amendments do not constitute a separate trust under Election
 5(c), 5(d), or 5(e).

 
	
  

 	
  

 	
  

 
	
 6.       CONTRIBUTION
 TYPES (1.12). The Employer
 and/or Participants, in accordance with the Plan terms, make the following
 Contribution Types to the Plan/Trust (Choose
 one or more of (a) through (h) as applicable. Choose (i) if applicable):
 

 
	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Pre-Tax Deferrals. See Section 3.02 and Elections 20-23.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Roth Deferrals. See Section 3.02(E) and Elections 20, 21,
 and 23. [Note: The Employer may not limit
 Elective Deferrals to Roth Deferrals only.]

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Matching. See Sections 1.34 and 3.03 and Elections
 24-26. [Note: The Employer may make an
 Operational QMAC without electing 6(c). See Section 3.03(C)(2).]

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Nonelective. See Sections 1.37 and 3.04 and Elections
 27-29. [Note: The Employer may make an
 Operational QNEC without electing 6(d). See Section 3.04(C)(2).]

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  [X]

 	
 Safe Harbor/Additional Matching. The Plan is (or
 pursuant to a delayed election, may be) a safe harbor 401(k) Plan. The
 Employer will make (or under a delayed election, may make) Safe Harbor
 Contributions as it elects in Election 30. The Employer may or may not make
 Additional Matching Contributions as it elects in Election 30. See Election
 26 as to matching Catch-Up Deferrals. See Section 3.05.

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Employee (after-tax). See Section 3.09
 and Election 35.

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  [  ]

 	
 SIMPLE 401(k). The Plan is a SIMPLE 401(k) Plan. See
 Section 3.10. The Employer operationally will elect for each Plan Year to
 make a SIMPLE Matching Contribution or a SIMPLE Nonelective Contribution as
 described in Section 3.10(E). The

 

© 2008 Prudential

2

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Employer
 must notify Participants of the Employer’s SIMPLE contribution election and
 of the Participants’ deferral election rights and limitations within a
 reasonable period of time before the 60th day prior to the beginning of the
 Plan Year. [Note: The Employer electing
 6(g) may not elect any other Contribution Types except under Elections 6(a),
 6(b), and 6(h).]

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  [  ]

 	
 Designated IRA. See Section 3.12 and Election 36.

 
	
  

 	
  

 	
  

 
	
 (i)

 	
  [  ]

 	
 None (frozen plan). The Plan is/was
 frozen effective as of: ____________________. See Sections 3.01(J) and 11.04.

 
	
  

 	
  

 	
  

 
	
 [Note: Elections 20 through 30 and Elections 35
 through 37 do not apply to any Plan Year in which the Plan is frozen.]

 
	
  

 
	
 7.

 	
 DISABILITY (1.15). Disability means (Choose one of (a) or (b)):

 
	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Basic Plan. Disability as defined in Section 1.15(A).

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Describe: __________________________________________________________________________________

 
	
  

 	
  

 	
  

 
	
 [Note: The Employer may elect an alternative
 definition of Disability for purposes of Plan distributions. However, the use
 of an alternative definition may result in loss of favorable tax treatment of
 the Disability distribution.]

 
	
  

 
	
 8.       EXCLUDED
 EMPLOYEES (1.21(D)). The following
 Employees are not Eligible Employees but are Excluded Employees (Choose one of (a) or (b)):

 
	
  

 	
  

 
	
 [Note: Regardless of the Employer’s elections under
 Election 8: (i) Employees of any Related Employers (excluding the Signatory
 Employer) are Excluded Employees unless the Related Employer becomes a
 Participating Employer; and (ii) Reclassified Employees and Leased Employees
 are Excluded Employees unless the Employer in Appendix B elects otherwise.
 See Sections 1.21(B), 1.21(D)(3), and 1.23(D).]

 
	
  

 
	
 (a)

 	
  [  ]

 	
 No Excluded Employees. All Employees
 are Eligible Employees as to all Contribution Types.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Exclusions. The following Employees are Excluded
 Employees (either as to all Contribution Types or to the designated
 Contribution Type) (Choose one or more of
 (1) through (7) as applicable):

 
	
  

 	
  

 	
  

 
	
 [Note: For this Election 8, unless described
 otherwise in Election 8(b)(7), Elective Deferrals includes Pre-Tax Deferrals,
 Roth Deferrals, Employee Contributions and Safe Harbor Contributions.
 Matching includes all Matching Contributions except Safe Harbor Matching Contributions.
 Nonelective includes all Nonelective Contributions except Safe Harbor
 Nonelective Contributions.]

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 All

 Contributions

 	
  

 	
  (2)

 Elective

 Deferrals

 	
  (3)

 

 Matching

 	
  (4)

 

 Nonelective

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 No exclusions. No exclusions as to the

 designated Contribution Type.

 	
 N/A

 (See Election

 8(a))

 	
  

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [X]

 	
 Collective Bargaining (union) Employees.

 As described in Code §410(b)(3)(A).

 See Section 1.21(D)(1).

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Non-Resident Aliens. As described in
 Code

 §410(b)(3)(C). See Section 1.21(D)(2).

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 HCEs. See Section 1.21(E). See Election 30(e)

 as to exclusion of some or all HCEs

 from Safe Harbor Contributions.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [  ]

 	
 Hourly paid Employees.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
  [  ]

 	
 Part-Time/Temporary/Seasonal Employees.

 See Section 1.21(D)(4). A Part-Time, Temporary

 or Seasonal Employee is an Employee

 whose regularly scheduled Service is less than

 _____ (specify a maximum of 1,000)

 Hours of Service in the relevant Eligibility

 Computation Period.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: If the Employer under Election 8(b)(6) elects
 to treat Part-Time, Temporary and Seasonal Employees as Excluded Employees
 and any such an Employee actually completes at least 1,000 Hours of Service
 during the relevant Eligibility Computation Period, the Employee becomes an
 Eligible Employee. See Section 1.21(D)(4).]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
  [  ]

 	
 Describe exclusion category and/or Contribution Type:
 ______________________________________

 (e.g., Exclude Division B Employees
 OR Exclude salaried Employees from Discretionary Matching Contributions.)

 

© 2008 Prudential

3

Nonstandardized 401(k) Plan

[Note: Any exclusion under Election 8(b)(7), except as
to Part-Time/Temporary/Seasonal Employees, may not be based on age or Service
or level of Compensation. See Election 14 for eligibility conditions based on
age or Service.]

9.       COMPENSATION
(1.11(B)). The following base
Compensation (as adjusted under Elections 10 and 11) applies in allocating
Employer Contributions (or the designated Contribution Type) (Choose one or more of (a) through (d) as applicable):

[Note: For this Election 9 all definitions include
Elective Deferrals unless excluded under Election 11. See Section 1.11(D). Unless
described otherwise in Election 9(d), Elective Deferrals includes Pre-Tax
Deferrals, Roth Deferrals and Employee Contributions, Matching includes all
Matching Contributions and Nonelective includes all Nonelective Contributions.
In applying any Plan definition which references Section 1.11 Compensation,
where the Employer in this Election 9 elects more than one Compensation
definition for allocation purposes, the Plan Administrator will use W-2 Wages
for such other Plan definitions if the Employer has elected W-2 Wages for any
Contribution Type or Participant group under Election 9. If the Employer has
not elected W-2 Wages, the Plan Administrator for such other Plan definitions
will use 415 Compensation.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  (1)

 All

 Contributions

 	
  

 	
  (2)

 Elective

 Deferrals

 	
  (3)

 

 Matching

 	
  (4)

 Nonelective

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 W-2 Wages (plus Elective Deferrals).

 See Section 1.11(B)(1).

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Code §3401 Federal Income Tax

 Withholding Wages (plus Elective

 Deferrals). See Section 1.11(B)(2).

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 415 Compensation (simplified).

 See Section 1.11(B)(3).

 [Note: The Employer may elect an
 alternative

 “general 415 Compensation” definition by

 electing 9(c) and by electing the alternative

 definition in Appendix B. See Section 1.11(B)(4).]

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Describe Compensation
 by Contribution Type or by Participant group: _____________________________

 

[Note: Under Election 9(d), the Employer may: (i)
elect Compensation from the elections available under Elections 9(a), (b), or
(c), or a combination thereof as to a Participant group (e.g., W-2 Wages for
Matching Contributions for Division A Employees and 415 Compensation in all
other cases); and/or (ii) define the Contribution Type column headings in a
manner which differs from the “all-inclusive” description in the Note
immediately preceding Election 9(a) (e.g., Compensation for Safe Harbor
Matching Contributions means W-2 Wages and for Additional Matching
Contributions means 415 Compensation).]

10.     PRE-ENTRY/POST-SEVERANCE
COMPENSATION (1.11(H)/(I)).
Compensation under Election 9 (Complete (a).
Choose (b). if applicable):

[Note: The Plan does not take into account
Post-Severance Compensation unless the Employer elects otherwise in Appendix B
or except as otherwise specified in a Plan amendment. For this Election 10,
unless described otherwise in Election 10(b), Elective Deferrals includes
Pre-Tax Deferrals, Roth Deferrals and Employee Contributions, Matching includes
all Matching Contributions and Nonelective includes all Nonelective
Contributions.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 All

 Contributions

 	
  

 	
  (2)

 Elective

 Deferrals

 	
  (3)

 

 Matching

 	
  (4)

 

 Nonelective

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Pre-Entry Compensation. Includes (Choose

 (1) and (2) as applicable):

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Plan Year. Compensation for the entire

 Plan Year which includes the Participant’s

 Entry Date.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [X]

 	
 Participating Compensation. Only
 Participating

 Compensation. See Section 1.11(H)(1).

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Under a Participating Compensation election,
 in applying any Adoption Agreement elected contribution limit or formula, the
 Plan Administrator will count only the Participant’s Participating
 Compensation. See Section 1.11(H)(1) as to plan disaggregation.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Describe Pre-Entry Compensation by Contribution Type or by
 Participant group: ____________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Under Election 10(b), the Employer may: (i)
 elect Compensation from the elections available under Election 10(a) or a
 combination thereof as to a Participant group (e.g., Participating
 Compensation for all Contribution Types as to Division A Employees, Plan Year
 Compensation for all Contribution Types to Division B Employees); and/or (ii)
 define the Contribution Type column headings in a manner which differs from
 the “all-inclusive” description in the Note immediately preceding Election
 10(a) (e.g., Compensation for Nonelective Contributions is Participating
 Compensation and for Safe Harbor Nonelective Contributions is Plan Year
 Compensation).]

 

© 2008 Prudential

4

Nonstandardized 401(k) Plan

11.     EXCLUDED COMPENSATION (1.11(G)). Apply
the following Compensation exclusions to Elections 9 and 10 (Choose one of (a) or (b)):

	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 No exclusions. Compensation as to all Contribution Types
 means Compensation as elected in Elections 9 and 10.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Exclusions. Exclude the following (Choose one or more of (1) through (9) as
 applicable):

 

[Note: In a safe harbor 401(k) plan, allocations
qualifying for the ADP or ACP test safe harbors must be based on a
non-discriminatory definition of Compensation. If the Plan applies permitted
disparity, allocations also must be based on a non-discriminatory definition of
Compensation if the Plan is to avoid more complex testing. Elections 11(b)(4)
through (b)(9) may cause allocation Compensation to fail to be
non-discriminatory. In a non-safe harbor 401(k) plan, Elections 11(b)(4)
through (b)(9) which result in Compensation failing to be non-discriminatory
may result in more complex nondiscrimination testing. For this Election 11,
unless described otherwise in Election 11(b)(9), Elective Deferrals includes
Pre-Tax Deferrals, Roth Deferrals and Employee Contributions, Matching includes
all Matching Contributions and Nonelective includes all Nonelective
Contributions.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 All

 Contributions

 	
  

 	
  (2)

 Elective

 Deferrals

 	
  (3)

 

 Matching

 	
  (4)

 

 Nonelective

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 No exclusions-limited. No

 exclusions as to the designated

 Contribution Type(s).

 	
 N/A

 (See

 Election 11(a))

 	
  

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Elective Deferrals. See Section
 1.20.

 	
 N/A

 	
  

 	
 N/A

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Fringe benefits. As described in Treas.

 Reg. §1.414(s)-1(c)(3).

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Compensation exceeding $ ______.
Apply this election to (Choose one of a. or b.):

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 All Participants. [Note:
 If the Employer

 elects Safe Harbor Contributions under

 Election 6(e), the Employer may not

 elect 11(b)(4)a. to limit the Safe Harbor

 Contribution allocation to the NHCEs.]

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 HCE Participants only.

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [  ]

 	
 Bonus.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
  [  ]

 	
 Commission.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
  [  ]

 	
 Overtime.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
  [  ]

 	
 Related Employers. See Section 1.23(C).

 (If there are Related Employers, choose
 one or

 both of a. and b. as applicable):

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 Non-Participating. Compensation paid to

 Employees by a Related Employer that is

 not a Participating Employer.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Participating. As to the Employees of any

 Participating Employer, Compensation paid

 by any other Participating Employer to its

 Employees. See Election 28(g)(2)a.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
  [  ]

 	
 Describe Compensation exclusion(s):
 _____________________________________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Under Election 11(b)(9), the Employer may:
 (i) describe Compensation from the elections available under Elections
 11(b)(1) through (8), or a combination thereof as to a Participant group
 (e.g., No exclusions as to
 Division A Employees and exclude bonus as to Division B Employees); (ii)
 define the Contribution Type column headings in a manner which differs from
 the “all-inclusive” description in the Note immediately preceding Election
 11(b)(1) (e.g., Elective
 Deferrals means §125 cafeteria deferrals only OR No exclusions as to Safe
 Harbor Contributions and exclude bonus as to Nonelective Contributions);
 and/or (iii) describe another exclusion (e.g., Exclude shift differential
 pay).]

 

© 2008 Prudential

5

Nonstandardized 401(k) Plan

12.     HOURS OF SERVICE (1.31). The Plan
credits Hours of Service for the following purposes (and to the Employees
described in Elections 12(d) or (e)) as follows (Choose one or more of (a) through (e) as applicable):

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 All

 Purposes

 	
  

 	
  (2)

 Eligibility

 	
  (3)

 

 Vesting

 	
  (4)
Allocation
 

 Conditions

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Actual Method. See Section 1.31(A)(1).

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Equivalency Method: _____________ (e.g., daily,

 weekly, etc.). See Section 1.31(A)(2).

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Elapsed Time Method. See Section
 1.31(A)(3).

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Actual (hourly) and Equivalency (salaried).

 Actual Method for hourly paid Employees

 and Equivalency Method: _____________

 (e.g., daily, weekly, etc.) for
 salaried Employees.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 Describe method:
 ___________________________________________________________________________

 
	
  

 	
  

 	
  

 
	
 [Note: Under Election 12(e), the Employer may
 describe Hours of Service from the elections available under Elections 12(a)
 through (d), or a combination thereof as to a Participant group and/or
 Contribution Type (e.g., For
 all purposes, Actual Method applies to office workers and Equivalency Method
 applies to truck drivers).]

 

13.       ELECTIVE
SERVICE CREDITING (1.56(C)).
The Plan must credit Related Employer Service under Section 1.23(C) and also
must credit certain Predecessor Employer/Predecessor Plan Service under Section
1.56(B). The Plan also elects under Section 1.56(C) to credit as Service the
following Predecessor Employer service (Choose
one of (a) or (b)):

	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Not applicable. No elective Predecessor Employer Service
 crediting applies.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Applies. The Plan credits the specified service with
 the following designated Predecessor Employers as Service for the Employer
 for the purposes indicated (Choose (1) and
 (2) as applicable. Complete (3). Choose (4) if applicable):

 
	
  

 	
  

 	
  

 
	
 [Note: Any elective Service crediting under this
 Election 13 must be nondiscriminatory.]

 
	
  

 

	
  

 	
  

 	
  

 
	
 (1)

 	
  [  ]

 	
 All purposes. Credit Service for all purposes with
 Predecessor Employer(s): ____________________________

 (insert as many names as needed).

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 

 Eligibility

 	
  

 	
  (2)

 

 Vesting

 	
  

 	
  (3)

 Contribution

 Allocation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [X]

 	
 Designated purposes. Credit Service
 with the following Predecessor Employer(s) for the designated purpose(s):

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 Employer: Acquired Employees from Anchor
Savings, Dime of Williamsburg, North Side Savings
 and Atlantic Banks, Studebaker-Worthington
 Leasing Corp.

 	
  [X]

 	
  

 	
  [X]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 Employer: ______________________________

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
 Employer: ______________________________

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Time period. Under Elections 13(b)(1) or (2), the Plan
 credits (Choose one or more of a., b., and
 c. as applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [X]

 	
 All. All Service under Election(s) 13(b) (2)(a) ,
 regardless of when rendered.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Service after. All Service under Election(s) 13(b) _____,
 which is or was rendered after: ________ (specify date).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  [  ]

 	
 Service before. All Service under Election(s) 13(b) _____,
 which is or was rendered before: ________ (specify date).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Describe elective Predecessor Employer Service crediting:
 ___________________________________.

 

[Note: Under Election 13(b)(4), the Employer may
describe service crediting from the elections available under Elections
13(b)(1) through (3), or a combination thereof as to a Participant group and/or
Contribution Type (e.g., For all purposes credit service with X only on/after
1/1/05 OR Credit all service for all purposes with entities the Employer
acquires after 12/31/04 OR Service crediting for X Company applies only for
purposes of Nonelective Contributions and not for Matching Contributions).]

© 2008 Prudential

6

Nonstandardized
401(k) Plan

ARTICLE
II

ELIGIBILITY REQUIREMENTS

	
 

	
 

	
 

	
14.     ELIGIBILITY (2.01). To become a Participant
in the Plan, an Eligible Employee must satisfy (Choose one of (a) or (b)):

	
 

	
 

	
[Note: If the Employer under a safe harbor plan elects
“early” eligibility for Elective Deferrals (e.g., less than one Year of
Service and age 21), but does not elect early eligibility for any Safe Harbor
Contributions, also see Election 30(f).]

	
 

	
 

	
(a)

	
[  ]

	
No conditions. No eligibility conditions as to all
Contribution Types. Entry is on the Employment Commencement Date (if that
date is also an Entry Date), or if later, upon the next following Plan Entry
Date.

	
 

	
 

	
 

	
[Note: No eligibility conditions apply to Prevailing
Wage Contributions unless the Prevailing Wage Contract provides otherwise.
See Section 2.01(D).]

	
 

	
 

	
 

	
(b)

	
[X]

	
Conditions. The following eligibility conditions
(either as to all Contribution Types or as to the designated Contribution
Type) (Choose one or more of (1) through (8) as applicable):

	
 

	
 

	
 

	
[Note: For this Election 14, unless described otherwise
in Election 14(b)(8)), or the context otherwise requires, Elective Deferrals
includes Pre-Tax Deferrals, Roth Elective Deferrals and Employee
Contributions, Matching includes all Matching Contributions (except Safe
Harbor Matching Contributions under Section 3.05(E)(3) and Operational QMACs
under Section 3.03(C)(2)) and Nonelective includes all Nonelective
Contributions (except Safe Harbor Nonelective Contributions under Section
3.05(E)(2) and Operational QNECs under Section 3.04(C)(2)). Safe Harbor
includes Safe Harbor Nonelective and Safe Harbor Matching Contributions. If
the Employer elects more than one Year of Service as to Additional Matching,
the Plan will not satisfy the ACP test safe harbor. See Section 3.05(F)(3).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
(2)

	
(3)

	
(4)

	
(5)

	
 

	
 

	
 

	
 

	
 

	
All

Contributions

	
Elective

Deferrals

	
Matching

	
Nonelective

	
Safe

Harbor

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
[  ]

	
None. Entry on the Employment Commencement Date (if
that date is also an Entry Date) or if later, upon the next following Plan
Entry Date.

	
N/A

(See Election

14(a))

	
[  ]

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
[X]

	
Age 21 (not to exceed age 21). 

	
[X]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
[  ]

	
One Year of Service. See Election 16(a).

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
[  ]

	
Two Years of Service (without an intervening Break
in Service). 100% vesting is required. [Note: Two Years of Service does
not apply to Elective Deferrals, Safe Harbor Contributions or SIMPLE
Contributions.]

	
N/A

	
 

	
N/A

	
[  ]

	
[  ]

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(5)

	
[X]

	
three (3) month(s) (not exceeding 12
months for Elective Deferrals, Safe Harbor Contributions  and SIMPLE Contributions and not
exceeding 24 months for other contributions). If more than 12
months, 100% vesting is required. Service need not be continuous (no minimum
Hours of Service required, and is mere passage of time).

	
[X]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(6)

	
[  ]

	
_____ month(s) with at least _____ Hours of Service
in each month (not exceeding 12 months for Elective Deferrals, Safe
Harbor Contributions and SIMPLE Contributions and not exceeding
24 months for other contributions). If more than 12 months, 100% vesting
is required. If the Employee does not complete the designated Hours of
Service each month during the specified monthly time period, the Employee is
subject to the one Year of Service (or two Years of Service if elect more
than 12 months) requirement with 1,000 Hours of Service per Year of Service.
The months during which the Employee completes the specified Hours of Service
(Choose one of a. or b.):

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
[  ]

	
Consecutive. Must be consecutive.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
b.

	
[  ]

	
Not consecutive. Need not be consecutive.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(7)

	
[  ]

	
_____ Hours of Service within the _____ time period
following the Employee’s Employment

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
[  ]

© 2008 Prudential

7

Nonstandardized
401(k) Plan

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commencement Date (not exceeding 12 months for
Elective Deferrals, Safe Harbor Contributions and SIMPLE
Contributions and not exceeding 24 months for other contributions).
If more than 12 months, 100% vesting is required. If the Employee does not
complete the designated Hours of Service during the specified time period (if
any), the Employee is subject to the one Year of Service (or two Years of
Service if elect more than 12 months) requirement with 1,000 Hours of Service
per Year of Service.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: The Employer may complete the second blank in
Election 14(b)(7) with “N/A” if the Employer wishes to impose an Hour of
Service requirement without specifying a time period within which an Employee
must complete the required Hours of Service.]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(8)

	
[X]

	
Describe eligibility conditions: However, any
employee classified as a “temporary employee” is required to complete 1,000
Hours of Service during a 12 consecutive month period beginning on the
employee’s date of hire. Subsequent 12 month periods are based on the Plan
Year for all contributions.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: The Employer may use Election 14(b)(8) to
describe different eligibility conditions as to different Contribution Types
or Employee groups (e.g., As to all Contribution Types, no eligibility
requirements for Division A Employees and one Year of Service as to Division
B Employees). The Employer also may elect different ages for different
Contribution Types and/or to specify different months or Hours of Service
requirements under Elections 14(b)(5), (b)(6), or (b)(7) as to different
Contribution Types. Any election must satisfy Code §410(a).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
15.     SPECIAL ELIGIBILITY
EFFECTIVE DATE (DUAL ELIGIBILITY) (2.01(E)). The eligibility
conditions of Election 14 (Choose (a) or choose (b) and (c) as applicable):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[X]

	
No exceptions. Apply to all Employees.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: Elections 15(b) or (c) may trigger a coverage
failure under Code §410(b).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[  ]

	
Waiver of eligibility conditions for certain Employees.
For all Contribution Types, apply solely to an Eligible Employee employed or
reemployed by the Employer after _________ (specify date). If
the Eligible Employee was employed or reemployed by the Employer by the
specified date, the Employee will become a Participant on the latest of: (i)
the Effective Date; (ii) the restated Effective Date; (iii) the Employee’s
Employment Commencement Date or Re-Employment Commencement Date; or (iv) on
the date the Employee attains age _____ (not exceeding age 21).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: If the Employer does not wish to impose an age
condition under clause (iv) as part of the requirements for the eligibility
conditions waiver, leave the age blank.]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
[  ]

	
Describe special eligibility Effective Date(s):
________________________________________________

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: Under Election 15(c), the Employer may describe
special eligibility Effective Dates as to a Participant group and/or
Contribution Type (e.g., Eligibility conditions apply only as to Nonelective
Contributions and solely as to the Eligible Employees of Division B who were
hired or reemployed by the Employer after January 1, 2007).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16.     YEAR OF SERVICE -
ELIGIBILITY (2.02(A)). (Choose (a), (b), and (c) as applicable):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: If the Employer under Election 14 elects a one
or two Year(s) of Service condition (including any requirement which defaults
to such conditions under Elections 14(b)(6), (7), and (8)) or elects to apply
a Year of Service for eligibility under any other Adoption Agreement
election, the Employer should complete Election 16. The Employer should not
complete Election 16 if it elects the Elapsed Time Method for eligibility.]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[X]

	
Year of Service. An Employee must complete 1,000
Hour(s) of Service during the relevant Eligibility Computation Period to
receive credit for one Year of Service under Article II. [Note: The number
may not exceed 1,000. If left blank, the requirement is 1,000 Hours of
Service. Under Elections 14(b)(6) and (b)(7) and under Election 14(b)(8) if
it incorporates Elections 14(b)(6) or (7), the number is 1,000 and the
Employer should not supply any other number in the blank.]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[X]

	
Subsequent Eligibility Computation Periods. After
the Initial Eligibility Computation Period described in Section 2.02(C)(2),
the Plan measures Subsequent Eligibility Computation Periods as (Choose
one of (1), (2), or (3)):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
[X]

	
Plan Year. The Plan Year, beginning with the Plan
Year which includes the first anniversary of the Employee’s Employment
Commencement Date.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
[  ]

	
Anniversary Year. The Anniversary Year, beginning
with the Employee’s second Anniversary Year.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
[  ]

	
Split. The Plan Year as described in Election
16(b)(1) as to: ______________ (describe Contribution Type(s)) and the
Anniversary Year as described in Election 16(b)(2) as to: ______________ (describe
Contribution Type(s)).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Note: To maximize delayed entry under a two Years of
Service condition for Nonelective Contributions or Matching Contributions,
the Employer should elect to remain on the Anniversary Year for such
contributions.]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
[  ]

	
Describe:
___________________________________________________  (e.g., Anniversary Year as to Division A
and Plan Year as to Division B.)

© 2008 Prudential

8

Nonstandardized
401(k) Plan

17.     ENTRY
DATE (2.02(D)). Entry Date means the Effective Date and (Choose
one or more of (a) through (f) as applicable):

[Note: For this Election 17,
unless described otherwise in Election 17(f), Elective Deferrals includes
Pre-Tax Deferrals, Roth Elective Deferrals and Employee Contributions, Matching
includes all Matching Contributions (except Operational QMACs under Section
3.03(C)(2)) and Nonelective includes all Nonelective Contributions (except
Operational QNECs under Section 3.04(C)(2)). Entry as to Prevailing Wage
Contributions is on the Employment Commencement Date unless the Prevailing Wage
Contract provides otherwise. See Section 2.02(D).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
 

	
(2)

	
(3)

	
(4)

	
 

	
 

	
 

	
All

Contributions

	
 

	
Elective

Deferrals

	
Matching

	
Nonelective

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[  ]

	
Semi-annual. The first day of the first month and
of the seventh month of the Plan Year.

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[  ]

	
First day of Plan Year

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
[  ]

	
First day of each Plan Year quarter

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
[X]

	
The first day of each month

	
[X]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(e)

	
[  ]

	
Immediate. Upon Employment Commencement Date or if
later, upon satisfaction of eligibility conditions.

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(f)

	
[  ]

	
Describe Entry Date(s):
_________________________________________________________________

[Note: Under Election 17(f), the
Employer may describe Entry Dates from the elections available under Elections
17(a) through (e), or a combination thereof as to a Participant group and/or
Contribution Type or may elect additional Entry Dates (e.g., As to Matching
Contributions excluding Additional Matching, immediate as to Division A
Employees and semi-annual as to Division B Employees OR the earlier of the
Plan’s semi-annual Entry Dates or the entry dates under the Employer’s medical
plan).]

18.     PROSPECTIVE/RETROACTIVE
ENTRY DATE (2.02(D)). An Employee after satisfying the eligibility
conditions in Election 14 will become a Participant (unless an Excluded
Employee under Election 8) on the Entry Date (if employed on that date) (Choose
one or more of (a) through (f) as applicable):

[Note: Unless otherwise excluded
under Election 8, an Employee who remains employed by the Employer on the
relevant date must become a Participant by the earlier of: (i) the first day of
the Plan Year beginning after the date the Employee completes the age and
service requirements of Code §410(a); or (ii) 6 months after the date the
Employee completes those requirements. For this Election 18, unless described
otherwise in Election 18(f), Elective Deferrals includes Pre-Tax Deferrals,
Roth Deferrals and Employee Contributions, Matching includes all Matching
Contributions (except Operational QMACs under Section 3.03(C)(2)) and
Nonelective includes all Nonelective Contributions, (except Operational QNECs
under Section 3.04(C)(2)).]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
 

	
(2)

	
(3)

	
(4)

	
 

	
 

	
 

	
All

Contributions

	
 

	
Elective

Deferrals

	
Matching

	
Nonelective

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[X]

	
Immediately following or coincident with the date
the Employee completes the eligibility conditions.

	
[X]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[  ]

	
Immediately following the date the Employee
completes the eligibility conditions.

	
[  ]

	
OR

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
[  ]

	
Immediately preceding or coincident with the date
the Employee completes the eligibility conditions.

	
N/A

	
 

	
N/A

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
[  ]

	
Immediately preceding the date the Employee
completes the eligibility conditions.

	
N/A

	
 

	
N/A

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(e)

	
[  ]

	
Nearest the date the Employee completes the
eligibility conditions.

	
N/A

	
 

	
N/A

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(f)

	
[  ]

	
Describe retroactive/prospective entry relative to
Entry Date: __________________________________

[Note: Under Election 18(f), the
Employer may describe the timing of entry relative to an Entry Date from the
elections available under Elections 18(a) through (e), or a combination thereof
as to a Participant group and/or Contribution Type (e.g., As to Matching
Contributions excluding Additional Matching nearest as to Division A Employees
and immediately following as to Division B Employees).]

19.     BREAK
IN SERVICE – PARTICIPATION (2.03). The one year hold-out rule
described in Section 2.03(C) (Choose one of (a), (b), or (c)):

	
 

	
 

	
 

	
(a)

	
[X]

	
Does not apply.

	
 

	
 

	
 

	
(b)

	
[  ]

	
Applies. Applies to the Plan and to all
Participants.

© 2008 Prudential

9

Nonstandardized
401(k) Plan

	
 

	
 

	
 

	
(c)

	
[  ]

	
Limited application. Applies to the Plan, but only
to a Participant who has incurred a Severance from Employment.

[Note: The Plan does not apply
the rule of parity under Code §410(a)(5)(D) unless the Employer in Appendix B
specifies otherwise. See Section 2.03(D).]

ARTICLE III

PLAN CONTRIBUTIONS AND FORFEITURES

20.     ELECTIVE
DEFERRAL LIMITATIONS (3.02(A)). The following limitations apply to
Elective Deferrals under Elections 6(a) and 6(b), which are in addition to
those limitations imposed under the basic plan document (Choose (a) or
choose (b) and (c) as applicable):

	
 

	
 

	
 

	
(a)

	
[  ]

	
None. No additional Plan imposed limits.

[Note: The Employer under
Election 20 may not impose a lower deferral limit applicable only to Catch-Up
Eligible Participants and the Employer’s elections must be nondiscriminatory.
The elected limits apply to Pre-Tax Deferrals and to Roth Deferrals unless
described otherwise. Under a safe harbor plan: (i) NHCEs must be able to defer
enough to receive the maximum Safe Harbor Matching and Additional Matching
Contribution under the plan and must be permitted to defer any lesser amount;
and (ii) the Employer may limit Elective Deferrals to a whole percentage of
Compensation or to a whole dollar amount. See Section 1.54(C) as to
administrative limitations on Elective Deferrals.]

	
 

	
 

	
 

	
 

	
(b)

	
[X]

	
Additional Plan limit(s). (Choose (1) and (2) as
applicable. Complete (3) if (1) or (2) is chosen):

	
 

	
 

	
 

	
 

	
 

	
(1)

	
[X]

	
Maximum deferral amount. A Participant’s Elective
Deferrals may not exceed: 35% (specify dollar amount or percentage
of Compensation).

	
 

	
 

	
 

	
 

	
 

	
(2)

	
[X]

	
Minimum deferral amount. A Participant’s Elective
Deferrals may not be less than: 1% (specify dollar amount or
percentage of Compensation).

	
 

	
 

	
 

	
 

	
 

	
(3)

	
Application of limitations. The Election 20(b)(1)
and (2) limitations apply based on Elective Deferral Compensation described
in Elections 9 – 11. If the Employer elects Plan Year/Participation
Compensation under column (1) and in Election 10 elects Participating
Compensation, in the Plan Years commencing after an Employee becomes a
Participant, apply the elected minimum or maximum limitations to the Plan
Year. Apply the elected limitation based on such Compensation during the
designated time period and only to HCEs as elected below. (Choose a. or
choose b. and c. as applicable. Under each of a., b. or c. choose one of (1)
or (2). Choose (3) if applicable):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
(2)

	
(3)

	
 

	
 

	
 

	
Plan
Year/Participating

Compensation

	
Payroll period

	
HCEs only

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
[  ]

	
Both. Both limits under Elections 20(b)(1) and (2).

	
[  ]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
b.

	
[X]

	
Maximum limit. The maximum amount limit under
Election 20(b)(1).

	
[X]

	
[  ]

	
[  ]

	
 

	
 

	
 

	
 

	
 

	
 

	
c.

	
[X]

	
Minimum limit. The minimum amount limit under
Election 20(b)(2).

	
[  ]

	
[X]

	
[  ]

	
 

	
 

	
 

	
(c)

	
[  ]

	
Describe Elective Deferral limitation(s):
____________________________________________________

[Note: Under Election 20(c), the
Employer: (i) may describe limitations on Elective Deferrals from the elections
available under Elections 20(a) and (b) or a combination thereof as to a
Participant group (e.g., No limit applies to Division A Employees. Division B
Employees may not defer in excess of 10% of Plan Year Compensation); (ii) may
elect a different time period to which the limitations apply; and/or (iii) may
apply a different limitation to Pre-Tax Deferrals and to Roth Deferrals.]

21.     AUTOMATIC
DEFERRAL (3.02(B)). The Automatic Deferral provisions of Section
3.02(B) (Choose one of (a) or (b)):

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[  ]

	
Do not apply.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[X]

	
Apply. The Automatic Deferral Effective Date is: January
1, 2008 (specify date). (Complete (1), (2), and (3). Choose (4)
as applicable):

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
Automatic Deferral Amount. The Employer, as to each
Participant affected, will withhold as the Automatic Deferral Amount, 3
% from the Participant’s Compensation each payroll period unless the
Participant makes a Contrary Election.

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
Participants affected. The Automatic Deferral
applies to (Choose one of a., b., c., or d.):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
[  ]

	
All Participants. All Participants, regardless of
any prior Salary Reduction Agreement, unless and until they make a Contrary
Election after the Automatic Deferral Effective Date.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
b.

	
[  ]

	
Election of at least Automatic Deferral amount. All
Participants, except those who have in effect a Salary Reduction Agreement on
the Automatic Deferral Effective Date provided that the Elective Deferral
amount under the Agreement is at least equal to the Automatic Deferral
Amount.

© 2008 Prudential

10

Nonstandardized
401(k) Plan

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
c.

	
[X]

	
No existing Salary Reduction Agreement. All
Participants, except those who have in effect a Salary Reduction Agreement on
the Automatic Deferral Effective Date regardless of the Elective Deferral
amount under the Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
d.

	
[  ]

	
New Participants. Each Employee whose Entry Date is
on or following the Automatic Deferral Effective Date.

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
Scheduled increases. The Automatic Deferral Amount
will or will not increase (as a percentage of Compensation) in Plan Years
following the Plan Year containing the Automatic Deferral Effective Date (or,
if later, the Plan Year in which the Automatic Deferral first applies to a
Participant) as follows (Choose one of a., b., or c.):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
[  ]

	
No scheduled increase. The Automatic Deferral
Amount applies in all Plan Years.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
b.

	
[  ]

	
Scheduled increase. The Automatic Deferral Amount
will increase as follows:

	
 

	
 

	
 

	
Plan Year of application to a Participant  

	
 

	
Automatic Deferral Amount  

	

	
 

	

	
1

	
 

	
3%

	
2

	
 

	
3%

	
3

	
 

	
4%

	
4

	
 

	
5%

	
5 and thereafter

	
 

	
6%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
c.

	
[  ]

	
Other scheduled increase. The Automatic Deferral
Amount will increase as follows:

	
 

	
 

	
 

	
Plan Year of application to a Participant  

	
 

	
Automatic Deferral Amount  

	

	
 

	

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
_____

	
 

	
_____%

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
[X] Describe Automatic Deferral: This initial
percentage will increase by 1% (up to a maximum of 10%) each Plan Year
beginning after the Plan Year following the Plan Year in which the first
contributions are made pursuant to a default election. The escalation date is
the first of January for Participants automatically enrolled before this date
in the calendar year, apply the scheduled increase starting in the current
calendar year.

[Note: Under Election 21(b)(4),
the Employer may describe Automatic Deferral provisions from the elections available
under Election 21 and/or a combination thereof as to a Participant group (e.g.,
Automatic Deferrals do not apply to Division A Employees. All Division B
Employee/Participants are subject to an Automatic Deferral Amount equal to 3%
of Compensation effective as of January 1, 2008).]

22.     CODA
(3.02(C)). The CODA provisions of Section 3.02(C) (Choose one of (a)
or (b)):

	
 

	
 

	
 

	
 

	
 

	
(a)

	
[X]

	
Do not apply.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
[  ]

	
Apply. For each Plan Year for which the Employer
makes a designated CODA contribution under Section 3.02(C), a Participant may
elect to receive directly in cash not more than the following portion (or, if
less, the Elective Deferral Limit) of his/her proportionate share of that
CODA contribution (Choose one of (1) or (2)):

	
 

	
 

	
 

	
 

	
 

	
(1)

	
[  ]

	
All or any portion.

	
 

	
 

	
 

	
 

	
 

	
(2)

	
[  ]

	
_____%

23.     CATCH-UP
DEFERRALS (3.02(D)). A Catch-Up Eligible Participant (Choose one
of (a) or (b)):

	
 

	
 

	
 

	
(a)

	
[X]

	
Permitted. May make Catch-Up Deferrals to the Plan.

	
 

	
 

	
 

	
(b)

	
[  ]

	
Not Permitted. May not make Catch-Up Deferrals to
the Plan.

24.     MATCHING
CONTRIBUTIONS (EXCLUDING SAFE HARBOR MATCH AND ADDITIONAL MATCH UNDER SECTION
3.05) (3.03(A)). The Employer Matching Contributions under Election
6(c) are subject to the following additional elections regarding type
(discretionary/fixed), rate/amount, limitations and time period (collectively,
such elections are “the matching formula”) and the allocation of Matching
Contributions is subject to Section 3.06 except as otherwise provided (Choose
one or more of (a) through (g) as applicable; then, for the elected match,
complete (1), (2), and/or (3) as applicable. If the Employer completes (2) or
(3), also complete one of (4), (5), or (6)):

[Note: If the Employer wishes to
make any Matching Contributions that satisfy the ADP or ACP safe harbor, the
Employer should make these Elections under Election 30, and not under this
Election 24.] 

© 2008 Prudential

11

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 

 Match

 Rate/Amt

 [$/% of Elective 

 Deferrals]

 	
  

 	
  (2)

 Limit on 

 Deferrals 

 Matched

 [$/% of 

 Compensation]

 	
  

 	
  (3)

 

 Limit on 

 Match Amount

 [$/% of 

 Compensation]

 	
  

 	
  (4)

 

 Apply 

 limit(s) per 

 Plan Year 

 [“true-up”]

 	
  

 	
  (5)

 Apply 

 limit(s) per 

 payroll 

 period [no 

 “true-up”]

 	
  

 	
  (6)

 Apply 

 limit(s) per 

 designated 

 time period 

 [no “true-up”]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Discretionary – see Section 1.34(B) (The Employer may, but is not required to complete
 (a)(1)-(6). See the “Note” following Election 24.)

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Fixed – uniform rate/amount

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [   ]

 	
 Fixed – tiered

 	
  

 	
 Elective

 Deferral %

 	
 Matching

 Rate

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
 ______%

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______%

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______%

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______%

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [   ]

 	
 Fixed – Years of Service

 	
  

 	
 Years

 of Service

 	
 Matching

 Rate

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
 ______  

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______  

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______  

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ______  

 	
 _____%

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 “Years of
 Service” under this Election 24(d) means (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Eligibility. Years of Service for
 eligibility in Election 16.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Vesting. Years of Service for vesting in
 Elections 42 and 43.

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [   ]

 	
 Fixed – multiple formulas

 	
  

 	
 Formula 1:

 	
 ________

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
 Formula 2:

 	
 ________

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 
	
  

 	
  

 	
  

 	
  

 	
 Formula 3:

 	
 ________

 	
  

 	
 _____

 	
  

 	
 _____

 	
  

 	
  [   ]

 	
  

 	
  [   ]

 	
  

 	
  [   ] ____

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [   ]

 	
 Related and Participating Employers. If any
 Related and Participating Employers contribute Matching Contributions to the
 Plan, the following apply (Complete (1)
 and (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Matching formula. The matching formula for
 the Participating Employer(s) (Choose one
 of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 All the same. Is (are) the same as for the
 Signatory Employer under this Election 24.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 At least one different. Is (are) as follows:
 ______________________________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Allocation sharing. The Plan Administrator
 will allocate the Matching Contributions made by the Signatory Employer and
 by any Participating Employer (Choose one
 of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Employer by Employer. Only to the
 Participants directly employed by the contributing Employer.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Across Employer lines. To all Participants
 regardless of which Employer directly employs them and regardless of whether
 their direct Employer made Matching Contributions for the Plan Year.

 

[Note: The Employer should not elect 24(f) unless
there are Related Employers which are also Participating Employers. See Section
1.23(D).]

© 2008 Prudential

12

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  [   ]

 	
 Describe:
 ___________________________________________________________ (e.g., A Discretionary Matching Contribution
 applies to Division A Participants. A Fixed Matching Contribution equal to 50%
 of Elective Deferrals not exceeding 6% of Plan Year Compensation applies to
 Division B Participants.)

 

[Note: See Section 1.34(A) as to Fixed Matching
Contributions. A Participant’s Elective Deferral percentage is equal to the
Participant’s Elective Deferrals divided by his/her Compensation. The matching
rate/amount is the specified rate/amount of match for the corresponding
Elective Deferral amount/percentage. Any Matching Contributions apply to
Pre-Tax Deferrals and to Roth Deferrals unless described otherwise in Election
24(g). Matching Contributions for nondiscrimination testing purposes are
subject to the targeting limitations. See Section 4.10(D). The Employer under
Election 24(a) in its discretion may determine the amount of a Discretionary
Matching Contribution and the matching contribution formula. Alternatively, the
Employer in Election 24(a) may specify the Discretionary Matching Contribution
formula.]

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25. QMAC
 (PLAN-DESIGNATED) (3.03(C)(1)).
 The following provisions apply regarding Plan-Designated QMACs (Choose one of (a) or (b)):

 
	
  

 	
  

 
	
 [Note: Regardless of its elections under this
 Election 25, the Employer under Section 3.03(C)(2) may elect for any Plan
 Year where the Plan is using Current Year Testing to make Operational QMACs
 which the Plan Administrator will allocate only to NHCEs for purposes of
 correction of an ADP or ACP test failure.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Not applicable. There are no Plan-Designated
 QMACs.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Applies. There are Plan-Designated QMACs to
 which the following provisions apply (Complete
 (1) and (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Matching Contributions affected. The
 following Matching Contributions (as allocated to the designated allocation
 group under Election 25(b)(2)) are Plan-Designated QMACs (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 All. All Matching Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Designated. Only the following Matching
 Contributions under Election 24: __________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Allocation Group. Subject to Section 3.06,
 allocate the Plan-Designated QMAC (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 NHCEs only. Only to NHCEs who make Elective
 Deferrals subject to the Plan-Designated QMAC.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 All Participants. To all Participants who
 make Elective Deferrals subject to the Plan-Designated QMAC.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The Plan
 Administrator will allocate all other Matching Contributions as Regular
 Matching Contributions under Section 3.03(B), except as provided in Sections
 3.03(C)(2) or 3.05.

 
	
  

 
	
 [Note: See Section 4.10(D) as to targeting
 limitations applicable to QMAC nondiscrimination testing.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26. MATCHING CATCH-UP DEFERRALS (3.03(D)).
 If a Participant makes a Catch-Up Deferral, the Employer (Choose one of (a) or (b)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Match. Will apply to the Catch-Up Deferral (Choose one of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 All. All Matching Contributions.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 Designated. The following Matching
 Contributions in Election 24: ______________________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 No Match. Will not match any Catch-Up
 Deferrals.

 
	
  

 	
  

 	
  

 
	
 [Note: Election 26 does not apply to a safe harbor
 401(k) plan unless the Employer will apply the ACP test. See Elections
 37(a)(2)b. and 37(a)(2)c.(ii). In this case, Election 26 applies only to
 Additional Matching, if any. A safe harbor 401(k) Plan will apply the Basic
 Match or Enhanced Match to Catch-Up Deferrals. If the Employer elects to
 apply the ACP test safe harbor under Election 37(a)(2)a. or 37(a)(2)c.(i),
 Election 26 does not apply and the Plan also will apply any Additional Match
 to Catch-Up Deferrals.]

 
	
  

 
	
 27. NONELECTIVE
 CONTRIBUTIONS (TYPE/AMOUNT) INCLUDING PREVAILING WAGE CONTRIBUTIONS (3.04(A)). The Employer Nonelective
 Contributions under Election 6(d) are subject to the following additional
 elections as to type and amount (Choose
 one or more of (a) through (e) as applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Discretionary. An amount the Employer in its
 sole discretion may determine.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Fixed. (Choose
 one or more of (1), (2), and (3) as applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [   ]

 	
 Uniform %. _____% of each Participant’s
 Compensation, per _____________ (e.g.,
 Plan Year, month).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 Fixed dollar amount. $_____, per
 ____________ (e.g., Plan Year, month, HOS,
 per Participant per month).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [   ]

 	
 Describe:
 ______________________________________________________ (specify time period, e.g., per Plan Year quarter.
 If not specified, the time period is the Plan Year).

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: The Employer under Election 27(b)(3) may
 specify any Fixed Nonelective Contribution formula not described under
 Elections 27(b)(1) or (2) (e.g., For each Plan Year, 2% of net profits
 exceeding $50,000) and/or the Employer may describe different Fixed
 Nonelective Contributions as applicable to different Participant groups
 (e.g., A Fixed Nonelective Contribution equal to 5% of Plan Year 

 

© 2008 Prudential

13

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Compensation applies to Division A Participants and a Fixed
 Nonelective Contribution equal to $500 per Participant each Plan Year applies
 to Division B Participants).]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [   ]

 	
 Prevailing Wage Contribution. The Prevailing
 Wage Contribution amount(s) specified for the Plan Year or other applicable
 period in the Employer’s Prevailing Wage Contract(s). The Employer will make
 a Prevailing Wage Contribution only to Participants covered by the Contract
 and only as to Compensation paid under the Contract. If the Participant
 accrues an allocation of Employer Contributions (including forfeitures) under
 the Plan or any other Employer plan in addition to the Prevailing Wage
 Contribution, the Plan Administrator will (Choose
 one of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [   ]

 	
 No offset. Not reduce the Participant’s
 Employer Contribution allocation by the amount of the Prevailing Wage
 Contribution.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 Offset. Reduce the Participant’s Employer
 Contribution allocation by the amount of the Prevailing Wage Contribution.

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [   ]

 	
 Related and Participating Employers. If any
 Related and Participating Employers contribute Nonelective Contributions to
 the Plan, the contribution formula(s) (Choose
 one of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [   ]

 	
 All the same. Is (are) the same as for the
 Signatory Employer under this Election 27.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 At least one different. Is (are) as follows:
 _________________________.

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: The Employer should not elect 27(d) unless
 there are Related Employers which are also Participating Employers. See
 Section 1.23(D). The Employer electing 27(d) also must complete Election
 28(g) as to the allocation methods which apply to the Participating
 Employers.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [   ]

 	
 Describe:
 _________________________________________________________________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Under Election 27(e), the Employer may
 describe the amount and type of Nonelective Contributions from the elections
 available under Election 27 and/or a combination thereof as to a Participant group
 (e.g., A Discretionary Nonelective Contribution applies to Division A
 Employees. A Fixed Nonelective Contribution equal to 5% of Plan Year
 Compensation applies to Division B Employees).]

 
	
  

 
	
 28. NONELECTIVE
 CONTRIBUTION ALLOCATION (3.04(B)).
 The Plan Administrator, subject to Section 3.06, will allocate to each
 Participant any Nonelective Contribution (excluding QNECs) under the
 following contribution allocation formula (Choose
 one or more of (a) through (h) as applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Pro rata. As a uniform percentage of
 Participant Compensation.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Permitted disparity. In accordance with the
 permitted disparity allocation provisions of Section 3.04(B)(2), under which
 the following permitted disparity formula and definition of “Excess Compensation”
 apply (Complete (1) and (2)):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Formula (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Two-tiered.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Four-tiered.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Excess Compensation. For purposes of Section
 3.04(B)(2), “Excess Compensation” means Compensation in excess of (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Percentage amount. ______% (not exceeding 100%) of the taxable wage
 base in effect on the first day of the Plan Year, rounded to the next highest
 $______ (not exceeding the taxable wage
 base).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Dollar amount. The following amount: $_____ (not exceeding the taxable wage base in effect on
 the first day of the Plan Year).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [   ]

 	
 Incorporation of contribution formula. The
 Plan Administrator will allocate any Fixed Nonelective Contribution under
 Elections 27(b), 27(d) or 27(e), or any Prevailing Wage Contribution under
 Election 27(c), in accordance with the contribution formula the Employer
 adopts under those Elections.

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [   ]

 	
 Classifications of Participants. In accordance
 with the classifications allocation provisions of Section 3.04(B)(3). The
 classifications are (Choose one of (1),
 (2), or (3)):

 
	
  

 	
  

 	
  

 
	
 [Note: Typically,
 the Employer would elect 28(d) where it intends to satisfy nondiscrimination
 requirements using “cross-testing” under Treas. Reg. §1.401(a)(4)-8. However,
 choosing this election does not necessarily require application of
 cross-testing and the Plan may be able to satisfy nondiscrimination as to its
 classification-based allocations by testing allocation rates.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [   ]

 	
 Each in own classification. Each Participant
 constitutes a separate classification.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 NHCEs/HCEs. Nonhighly Compensated
 Employee/Participants and Highly Compensated Employee/Participants.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [   ]

 	
 Describe the classifications:
 __________________________________________________________

 

© 2008 Prudential

14

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Any classifications under Election 28(d) must
 result in a definitely determinable allocation under Treas. Reg. §1.401-1(b)(1)(ii)
 and must constitute a reasonable classification within the meaning of Treas.
 Reg. §1.410(b)-4(b). The number of allocation rates is subject to the
 limitations in Section 3.04(B)(3)(b). Standard interest and mortality
 assumptions under Treas. Reg. §1.401(a)(4)-12 apply. In the case of a
 self-employed Participant, the requirements of Treas. Reg. §1.401(k)-1(a)(6)
 apply and the allocation method should not result in a cash or deferred
 election for the self-employed Participant. The Employer by the due date of
 its tax return (including extensions) must advise the Plan Administrator or
 Trustee in writing as to the allocation rate applicable to each Participant
 under Election 28(d)(1) or applicable to each classification under Elections
 28(d)(2) or (3) for the allocation Plan Year. Under Election 28(d)(1), the
 Employer may decide from year to year the classification (allocation rate)
 applicable to each Participant, without the need to amend the Plan to change
 the classification.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [   ]

 	
 Age-based. In accordance with the age-based
 allocation provisions of Section 3.04(B)(5). The Plan Administrator will use
 the Actuarial Factors based on the following assumptions (Complete both (1) and (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Interest rate. (Choose one of a., b., or c.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 7.5%          b.     [   ]     8.0%          c.     [   ]     8.5%

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Mortality table. (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 UP-1984. See Appendix D.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Alternative: __________________ (Specify 1983 GAM, 1983 IAM, 1971 GAM or 1971 IAM
 and attach applicable tables using such mortality table and the specified
 interest rate as replacement Appendix D.)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [   ]

 	
 Uniform points. In accordance with the
 uniform points allocation provisions of Section 3.04(B)(6). Under the uniform
 points allocation formula, a Participant receives (Choose one or both of (1) and (2). Choose (3) if applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [   ]

 	
 Years of Service. ____________ point(s) for
 each Year of Service. The maximum number of Years of Service counted for
 points is _________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Year of
 Service” under this Election 28(f) means (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Eligibility. Years of Service for
 eligibility in Election 16.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Vesting. Years of Service for vesting in
 Elections 42 and 43.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 [Note: A Year of Service must satisfy Treas. Reg.
 §1.401(a)(4)-11(d)(3) for the uniform points allocation to qualify as a safe
 harbor allocation under Treas. Reg. §1.401(a)(4)-2(b)(3).]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [   ]

 	
 Age. ____________ point(s) for each year of
 age attained during the Plan Year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [   ]

 	
 Compensation. ____________ point(s) for each
 $______ (not to exceed $200)
 increment of Plan Year Compensation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  [   ]

 	
 Related and Participating Employers. If any
 Related and Participating Employers contribute Nonelective Contributions to
 the Plan, the Plan Administrator will allocate the Nonelective Contributions
 made by the Participating Employer(s) under Election 27(d) (Complete (1) and (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Allocation Method. (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 All the same. Using the same allocation
 method as applies to the Signatory Employer under this Election 28.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 At least one different. Under the following
 allocation method(s): __________________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Allocation sharing. The Plan Administrator
 will allocate the Nonelective Contributions made by the Signatory Employer
 and by any Participating Employer (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Employer by Employer. Only to the
 Participants directly employed by the contributing Employer.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Across Employer lines. To all Participants
 regardless of which Employer directly employs them and regardless of whether
 their direct Employer made Nonelective Contributions for the Plan Year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: The Employer should not elect 28(g) unless
 there are Related Employers which are also Participating Employers. See
 Section 1.23(D) and Election 27(d). If the Employer elects 28(g)(2)a., the
 Employer should also elect 11(b)(8)b., to disregard the Compensation paid by
 “Y” Participating Employer in determining the allocation of the “X”
 Participating Employer contribution to a Participant (and vice versa) who
 receives Compensation from both X and Y. If the Employer elects 28(g)(2)b.,
 the Employer should not elect 11(b)(8)b. Election 28(g)(2)a. does not apply
 to Safe Harbor Nonelective Contributions.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
  [   ]

 	
 Describe:
 ________________________________________________________________________________
 (e.g., Pro rata as to Division A
 Participants and Permitted Disparity (two-tiered at 100% of the SSTWB) as to
 Division B Participants.)

 

© 2008 Prudential

15

Nonstandardized
401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29. QNEC
 (PLAN-DESIGNATED) (3.04(C)(1)).
 The following provisions apply regarding Plan-Designated QNECs (Choose one of (a) or (b)):

 
	
  

 
	
 [Note: Regardless of its elections under this
 Election 29, the Employer under Section 3.04(C)(2) may elect for any Plan
 Year where the Plan is using Current Year Testing to make Operational QNECs
 which the Plan Administrator will allocate only to NHCEs for purposes of
 correction of an ADP or ACP test failure.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Not applicable. There are no Plan-Designated
 QNECs.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Applies. There are Plan-Designated QNECs to
 which the following provisions apply (Complete
 (1), (2), and (3)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Nonelective Contributions affected. The
 following Nonelective Contributions (as allocated to the designated
 allocation group under Election 29(b)(2)) are Plan-Designated QNECs (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 All. All Nonelective Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Designated. Only the following Nonelective
 Contributions under Election 27: ________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Allocation Group. Subject to Section 3.06,
 allocate the Plan-Designated QNEC (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 NHCEs only. Only to NHCEs under the method
 elected in Election 29(b)(3).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 All Participants. To all Participants under
 the method elected in Election 29(b)(3).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Allocation Method. The Plan Administrator
 will allocate a Plan-Designated QNEC using the following method (Choose one of a., b., c., or d.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [   ]

 	
 Pro rata.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [   ]

 	
 Flat dollar.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  [   ]

 	
 Reverse. See Section 3.04(C)(3).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 d.

 	
  [   ]

 	
 Describe:
 ________________________________________________________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Any allocation method the Employer elects
 under Election 29(b)(3)d. must be definitely determinable. See Section
 4.10(D) as to targeting limitations applicable to QNEC nondiscrimination
 testing.]

 
	
  

 
	
 30. SAFE
 HARBOR 401(k) PLAN (SAFE HARBOR CONTRIBUTIONS/ADDITIONAL MATCHING
 CONTRIBUTIONS) (3.05). The
 Employer under Election 6(e) will (or in the case of the Safe Harbor
 Nonelective Contribution may) contribute the following Safe Harbor
 Contributions described in Section 3.05(E) and will or may contribute
 Additional Matching Contributions described in Section 3.05(F) (Choose one of (a), (b), (c), or (d) when and as
 applicable. Complete (e) and (h). Choose (f), (g), and (i) as applicable):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [   ]

 	
 Safe Harbor Nonelective Contribution. The
 Safe Harbor Nonelective Contribution equals _______% of a Participant’s Compensation
 [Note: The amount in the blank must be at
 least 3%. The Safe Harbor
 Nonelective Contribution applies toward (offsets) most other Employer
 Nonelective Contributions. See Section 3.05(E)(11).]

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [   ]

 	
 Safe Harbor Nonelective Contribution/delayed year-by-year election
 (maybe and supplemental
 notices). In connection with the Employer’s provision of the maybe
 notice under Section 3.05(I)(1), the Employer elects into safe harbor status
 by giving the supplemental notice and by making this Election 30(b) to
 provide for a Safe Harbor Nonelective Contribution equal to ______% (specify amount at least equal to 3%) of
 a Participant’s Compensation. This Election 30(b) and safe harbor status
 applies for the Plan Year ending: ________________ (specify Plan Year end), which is the
 Plan Year to which the Employer’s maybe and supplemental notices apply.

 
	
  

 	
  

 	
  

 
	
 [Note: If
 the Employer makes a delayed election into safe harbor status under Section
 3.05(I)(1), the Employer must amend the Plan to provide for a Safe Harbor
 Nonelective Contribution equal to at least 3% of each Participant’s
 Compensation. The Employer may make this amendment by substitute Adoption
 Agreement page (electing Election 30(b)) or by another form of amendment
 under Section 11.02(B). An Employer using the maybe notice should not elect a
 Safe Harbor Nonelective Contribution under Election 30(a) unless the Employer
 intends to continue safe harbor status under this election in the subsequent
 Plan Year. By making its amendment into safe harbor status under Election
 30(b), the Employer avoids the need to further amend the Plan if the Employer
 is not certain that it will apply the safe harbor in the subsequent Plan
 Year. By contrast, an Employer which gave the maybe notice and has decided to
 make the Safe Harbor Nonelective Contribution for that year and for future
 years should use Election 30(a). The Employer only elects 30(a) and should
 not elect 30(b) if prior to the Plan Year the Employer unequivocally decides
 to elect safe harbor status for the Plan Year and provides a safe harbor
 notice consistent with this election rather than giving the maybe notice. If
 the Employer gives the maybe notice and the Employer will or may make
 Matching Contributions, the Employer should elect Additional Matching under
 Election 30(h)(and should not elect Matching Contributions under Election 24)
 if it wishes to avoid ACP testing.]

 

© 2008 Prudential

16

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Basic Matching Contribution. A Matching
 Contribution equal to 100% of each Participant’s Elective Deferrals not
 exceeding 3% of the Participant’s
 Compensation, plus 50% of each Participant’s Elective Deferrals in excess of
 3% but not in excess of 5% of the Participant’s Compensation. See Sections
 1.34(E) and 3.05(E)(4). (Complete (1)):
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Time period. For purposes of this Election
 30(c), “Compensation” and “Elective Deferrals” mean Compensation and Elective
 Deferrals for: ________________________. [Note: The Employer must
 complete the blank line with the applicable time period for computing the
 Basic Match, such as “each payroll period,” “each calendar month,” “each Plan
 Year quarter” or “the Plan Year.”] 

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ] 

 	
 Enhanced Matching Contribution. See Sections
 1.34(F) and 3.05(E)(5). (Choose one of (1)
 or (2) and complete (3) for any election):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Uniform percentage. A Matching Contribution
 equal to _______% of each Participant’s Elective Deferrals but not as to Elective
 Deferrals exceeding _______% of the Participant’s Compensation. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Tiered formula. A Matching Contribution
 equal to the specified matching rate for the corresponding level of each
 Participant’s Elective Deferral percentage. A Participant’s Elective Deferral
 percentage is equal to the Participant’s Elective Deferrals divided by
 his/her Compensation. 

 

	
  

 	
  

 	
  

 
	
 Elective Deferral Percentage 

 	
  

 	
 Matching Rate 

 
	
 

 	
  

 	
 

 
	
 _______%

 	
  

 	
 _______%

 
	
 _______%

 	
  

 	
 _______%

 
	
 _______%

 	
  

 	
 _______%

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Time period. For purposes of this Election
 30(d), “Compensation” and “Elective Deferrals” mean Compensation and Elective
 Deferrals for: ________________________. [Note: The Employer must
 complete the blank line with the applicable time period for computing the
 Enhanced Match, such as “each payroll period,” “each calendar month,” “each
 Plan Year quarter” or “the Plan Year.”]

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: The matching rate may not increase as the
 Elective Deferral percentage increases and the Enhanced Matching formula
 otherwise must satisfy the requirements of Code §§401(k)(12)(B)(ii) and
 (iii). If the Employer elects to satisfy the ACP safe harbor under Election
 37(a)(2)a., the Employer also must limit Elective Deferrals taken into
 account for the Enhanced Matching Contribution to a maximum of 6% of Plan
 Year Compensation.] 

 
	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
 Participants who will receive Safe Harbor Contributions.
 The allocation of Safe Harbor Contributions (Choose
 one of (1), (2), or (3)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Applies to all Participants. Applies to all
 Participants except as may be limited under Election 30(f). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 NHCEs only. Is limited to NHCE Participants
 only and may be limited further under Election 30(f). No HCE will receive a
 Safe Harbor Contribution allocation. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 NHCEs and designated HCEs. Is limited to
 NHCE Participants and to the following HCE Participants and may be limited
 further under Election 30(f):
 ______________________________________________.

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: Any HCE allocation group the Employer
 describes under Election 30(e)(3) must be definitely determinable.
 (e.g., Division “A” HCEs OR HCEs who own
 more than 5% of the Employer without regard to attribution rules).]

 
	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Early Elective Deferrals/delay of Safe Harbor Contribution.
 The Employer may elect this Election 30(f) only if the Employer in Election
 14 elects eligibility requirements for Elective Deferrals of less than age 21
 and one Year of Service but elects age 21 and one Year of Service for Safe
 Harbor Matching or for Safe Harbor Nonelective Contributions. The Employer under
 this Election 30(f) limits the allocation of any Safe Harbor Contribution
 under Election 30 for a Plan Year to those Participants: (i) who have
 attained age 21; (ii) who have completed one Year of Service; and (iii) who
 the Plan Administrator in applying the OEE rule described in Section 4.06(C),
 treats as benefiting in the disaggregated plan covering the Includible
 Employees. Those Participants in the Plan Year whom the Plan Administrator
 treats as Otherwise Excludable Employees will not receive any Safe Harbor
 Contribution allocation and the Plan Administrator will apply the ADP (and,
 as applicable the ACP) test(s) to the disaggregated plan benefiting the
 Otherwise Excludable Employees. If the Employer in Election 10(a)(2) has
 elected “Participating Compensation” for allocating Elective Deferrals,
 Nonelective Contributions or Matching Contributions (as relevant to the
 allocation under this Election 30 based on the Contribution Type), the Plan
 Administrator, in allocating the Safe Harbor Contribution for the Plan Year
 in which the Participant crosses over to the Includible Employees group, will
 count Compensation and Elective Deferrals only on and following the
 Cross-Over Date. See Section 3.05(D). 

 
	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  [  ]

 	
 Another plan. The Employer will make the Safe
 Harbor Contribution to the following plan: _______________.

 
	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
 Additional Matching Contributions. See
 Sections 1.34(G) and 3.05(F). (Choose one
 of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 No Additional Matching Contributions. The
 Employer will not make any Additional Matching Contributions to its safe
 harbor Plan. 

 

© 2008
Prudential 

17

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (2)

 	
  [  ]

 	
 Additional Matching Contributions. The
 Employer will or may make the following Additional Matching Contributions to
 its safe harbor Plan. (Choose a. and b. as
 applicable): 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
  [  ]

 	
 Fixed Additional Matching Contribution. The
 following Fixed Additional Matching Contribution (Choose (i) and (ii) as applicable and complete (iii) for any
 election): 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
  [  ]

 	
 Uniform percentage. A Matching Contribution
 equal to _______% of each Participant’s Elective Deferrals but not as to Elective
 Deferrals exceeding _______% of the Participant’s Compensation. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
  [  ]

 	
 Tiered formula. A Matching Contribution
 equal to the specified matching rate for the corresponding level of each
 Participant’s Elective Deferral percentage. A Participant’s Elective Deferral
 percentage is equal to the Participant’s Elective Deferrals divided by
 his/her Compensation. 

 

	
  

 	
  

 	
  

 
	
 Elective Deferral Percentage 

 	
  

 	
 Matching Rate 

 
	
 

 	
  

 	
 

 
	
 _______%

 	
  

 	
 _______%

 
	
 _______%

 	
  

 	
 _______%

 
	
 _______%

 	
  

 	
 _______%

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 Time period. For purposes of this Election
 30(h)(2)a., “Compensation” and “Elective Deferrals” mean Compensation and
 Elective Deferrals for: ____________________. [Note: The Employer must complete the blank line with the applicable
 time period for computing the Additional Match, e.g., “each payroll period,”
 “each calendar month,” “each Plan Year quarter” OR “the Plan Year.” If the
 Employer elects a match under both (i) and (ii) and will apply a different
 time period to each match, the Employer may indicate as such in the blank
 line.] 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Discretionary Additional Matching Contribution.
 The Employer may make a Discretionary Additional Matching Contribution. If
 the Employer makes a Discretionary Matching Contribution, the Discretionary
 Matching Contribution will not apply as to Elective Deferrals exceeding
 _____% of the Participant’s Compensation (complete
 the blank if applicable or leave blank). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: If the Employer elects to satisfy the ACP
 safe harbor under Election 37(a)(2)a. or 37(a)(2)c.(i), then as to any and
 all Matching Contributions, including Fixed Additional Matching Contributions
 and Discretionary Additional Matching Contributions: (i) the matching rate
 may not increase as the Elective Deferral percentage increases; (ii) no HCE
 may be entitled to a greater rate of match than any NHCE; (iii) the Employer
 must limit Elective Deferrals taken into account for the Additional Matching
 Contributions to a maximum of 6% of Plan Year Compensation; (iv) the Plan
 must apply all Matching Contributions to Catch-Up Deferrals; and (v) in the
 case of a Discretionary Additional Matching Contribution, the contribution
 amount may not exceed 4% of the Participant’s Plan Year Compensation.]
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (i)

 	
  [  ]

 	
 Multiple Safe Harbor Contributions in disaggregated Plan.
 The Employer elects to make different Safe Harbor Contributions and/or
 Additional Matching Contributions to disaggregated parts of its Plan under
 Treas. Reg. §1.401(k)-1(b)(4) as follows:
 ____________________________________________________________
 (Specify contributions for disaggregated
 plans, e.g., as to Collectively Bargained Employees a 3% Nonelective Safe
 Harbor Contribution applies and as to non-Collectively Bargained Employees,
 the Basic Matching Contribution applies). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31. ALLOCATION
 CONDITIONS (3.06(B)/(C)).
 The Plan does not apply any allocation conditions to: (i) Elective Deferrals;
 (ii) Safe Harbor Contributions; (iii) commencing as of the Final 401(k)
 Regulations Effective Date, Additional Matching Contributions which will
 satisfy the ACP test safe harbor; (iv) Employee Contributions; (v) Rollover
 Contributions; (vi) Designated IRA Contributions; (vii) SIMPLE Contributions;
 or (viii) Prevailing Wage Contributions, except as may be required by the
 Prevailing Wage Contract. To receive an allocation of Matching Contributions,
 Nonelective Contributions or Participant forfeitures, a Participant must
 satisfy the following allocation condition(s) (Choose one of (a) or (b). Choose (c) if applicable): 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 No conditions. No allocation conditions
 apply to Matching Contributions, to Nonelective Contributions or to
 forfeitures. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Conditions. The following allocation
 conditions apply to the designated Contribution Type and/or forfeitures (Choose one or more of (1) through (7) as
 applicable): 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: For this Election 31, except as the Employer
 describes otherwise in Election 31(b)(7) or as provided in Sections
 3.03(C)(2) and 3.04(C)(2) regarding Operational QMACs and Operational QNECs,
 Matching includes all Matching Contributions and Nonelective includes all
 Nonelective Contributions to which allocation conditions may apply. The
 Employer under Election 31(b)(7) may not impose an Hour of Service condition
 exceeding 1,000 Hours of Service in a Plan Year.] 

 

© 2008
Prudential 

18

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  

 	
  

 	
  (2)

 	
  

 	
  (3)

 	
  

 	
  (4)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Matching,

 Nonelective

 and Forfeitures

 	
  

 	
  

 	
  

 	
 Matching

 	
  

 	
 Nonelective

 	
  

 	
 Forfeitures

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 None.

 	
  

 	
 N/A

 	
  

 	
  

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (See Election

 31(a))

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 501 HOS/terminees (91 consecutive days if
 Elapsed Time). See Section 3.06(B)(1)(b).

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Last day of the Plan Year.

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Last day of the Election 31(c) time period.

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [  ]

 	
 1,000 HOS in the Plan Year (182 consecutive
 days in Plan Year if Elapsed Time).

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
  [  ]

 	
 _____(specify) HOS within the Election 31(c) time period,
 (but not exceeding 1,000 HOS in a Plan Year).

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
  [  ]

 	
 Describe conditions:
 __________________________________________________________________

 
	
  

 	
  

 	
  

 	
  (e.g., Last day of the Plan Year as to Nonelective Contributions for
 Participating Employer “A” Participants. No allocation conditions for
 Participating Employer “B” Participants).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Time period. Under Section 3.06(C), apply
 Elections 31(b)(4), (b)(6) or (b)(7) to the specified
 contributions/forfeitures based on each (Choose
 one of (1) through (5)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Plan Year

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Plan Year quarter

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Calendar month

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Payroll period

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [  ]

 	
 Describe time period:
 __________________________________________________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: If the Employer elects 31(b)(4) or (b)(6),
 the Employer must choose (c). If the Employer elects 31(b)(7), choose (c) if
 applicable.]

 

32. ALLOCATION
CONDITIONS – APPLICATION/WAIVER/SUSPENSION (3.06(D)/(F)). Under Section 3.06(D), in the event of
Severance from Employment as described below, apply or do not apply Election
31(b) allocation conditions to the specified contributions/forfeitures as
follows (If the Employer elects 31(b), the
Employer must complete Election 32. Choose one of (a) or (b). Complete (c)):

[Note: For this Election 32, except as the Employer
describes otherwise in Election 31(b)(7) or as provided in Sections 3.03(C)(2)
and 3.04(C)(2) regarding Operational QMACs and Operational QNECs, Matching
includes all Matching Contributions and Nonelective includes all Nonelective
Contributions to which allocation conditions may apply.] 

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Total waiver or application. If a
 Participant incurs a Severance from Employment on account of or following
 death, Disability, attainment of Normal Retirement Age, or attainment of
 Early Retirement Age as specified (Choose
 one of (1) or (2)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Do not apply. Do not apply elected
 allocation conditions to Matching Contributions, to Nonelective Contributions
 or to forfeitures. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Apply. Apply elected allocation conditions
 to Matching Contributions, to Nonelective Contributions and to forfeitures. 

 

© 2008
Prudential 

19

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  

 	
  

 	
  (2)

 	
  

 	
  (3)

 	
  

 	
  (4)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Matching,

 Nonelective

 and Forfeitures

 	
  

 	
  

 	
  

 	
 Matching

 	
  

 	
 Nonelective

 	
  

 	
 Forfeitures

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Application/waiver as to Contribution Types events.
 If a Participant incurs a Severance from Employment, apply allocation
 conditions except such
 conditions are waived if Severance is on account of or following death,
 Disability, attainment of Normal Retirement Age, or attainment of Early
 Retirement Age as specified, and as applied to the specified Contribution
 Types/forfeitures (Choose (1), (2), (3)
 and (4) as applicable):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Death

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Disability

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Normal Retirement Age

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Early Retirement Age

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
 Suspension. The suspension of allocation
 conditions of Section 3.06(F) (Choose one
 of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Applies. Applies as follows (Choose one of a., b., or c.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 Both. Applies both to Nonelective
 Contributions and to Matching Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Nonelective. Applies only to Nonelective
 Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  [  ]

 	
 Match. Applies only to Matching
 Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Does not apply.

 

33. FORFEITURE
ALLOCATION METHOD (3.07). The Plan Administrator will allocate a Participant forfeiture
attributable to all Contribution Types or attributable to all Nonelective
Contributions or to all Matching Contributions as follows (Choose one or more of (a) through (g) as applicable.
Choose (e) only in conjunction with at least one other election):  

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: Even if the Employer elects immediate
 vesting, the Employer should complete Election 33. See Section 7.07.]

 	
  

 	
  (1)

 	
  

 	
  

 	
  

 	
  (2)

 	
  

 	
  (3)

 	
  

 
	
  

 	
 All

 Forfeitures

 	
  

 	
  

 	
  

 	
 Nonelective

 Forfeitures

 	
  

 	
 Matching

 Forfeitures

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Additional Nonelective. Allocate as
 additional Discretionary Nonelective Contribution.

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Additional Match. Allocate as additional
 Discretionary Matching Contribution.

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [X]

 	
 Reduce Nonelective. Apply to Nonelective
 Contribution.

 	
  

 	
  [X]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [X]

 	
 Reduce Match. Apply to Matching
 Contribution.

 	
  

 	
  [X]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [X]

 	
 Plan expenses. Pay reasonable Plan expenses
 first (See Section 7.04(C)), then allocate in the manner described above.

 	
  

 	
  [X]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Safe harbor/top-heavy exempt. Apply all
 forfeitures to Safe Harbor Contributions and Plan expenses in accordance with
 Section 3.07(A)(4).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  [  ]

 	
 Describe: __________________________________________________________________________________

 
	
  

 	
  

 	
  (e.g., Forfeitures attributable to transferred balances from Plan X
 are allocated only to former Plan X participants.)

 

34. FORFEITURE
ALLOCATION TIMING (3.07(B)).
See Sections 3.07, 5.07 and 7.07 as to when a forfeiture occurs. Once a
forfeiture occurs, this Election 34 determines the timing of the forfeiture
allocation. The Plan Administrator will allocate a Participant’s forfeiture (Choose one or both of (a) and (b) as applicable):

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (1)

 	
  

 	
  

 	
  

 	
  (2)

 	
  

 	
  (3)

 	
  

 
	
  

 	
  

 	
 All

 Forfeitures

 	
  

 	
  

 	
  

 	
 Nonelective

 Forfeitures

 	
  

 	
 Matching

 Forfeitures

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Same Plan Year. In the same Plan Year in
 which the designated forfeiture occurs.

 	
  

 	
  [X]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 

© 2008 Prudential

20

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Next Plan Year. In the Plan Year following
 the Plan Year in which the designated forfeiture occurs.

 	
  

 	
  [  ]

 	
  

 	
 OR

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 

[Note: The elected forfeiture allocation timing
applies irrespective of when the Employer makes its contribution(s), if any,
for a Plan Year. Even if the Employer elects immediate vesting, the Employer
should complete Election 34. See Sections 3.07 and 7.07.] 

35. EMPLOYEE (AFTER-TAX) CONTRIBUTIONS (3.09). The following additional elections
apply to Employee Contributions under Election 6(f). (Complete (a) and (b)): 

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Limitations. The Plan permits Employee
 Contributions subject to the following limitations, if any, in addition to
 those already imposed under the Plan (Choose
 one of (1) or (2)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 None. No additional limitations. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Additional limitations. The following
 additional limitations: _____________________________________.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [Note: Any designated limitation(s) must be the same
for all Participants and must be definitely determinable.]  

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Matching Contributions. (Choose one of (1) or (2)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 None. The Employer will not make any
 Matching Contributions based on Employee Contributions. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Applies. For each Plan Year, the Employer’s
 Matching Contribution made as to Employee Contributions is:

 _______________________________________________________________________________________
 . 

 

36. DESIGNATED
IRA CONTRIBUTIONS (3.12).
Under Election 6(h), a Participant may make Designated IRA Contributions
effective for Plan Years beginning after ________________ (date specified must be no earlier than December 31,
2002). (Complete (a) and (b)):

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Type of IRA contribution. A Participant’s
 Designated IRA Contributions will be (Choose
 one of (1), (2), or (3)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Traditional. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Roth. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Traditional/Roth. As the Participant elects
 at the time of contribution.

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Type of Account. A Participant’s Designated
 IRA Contributions will be held in the following form of Account(s) (Choose one of (1), (2), or (3)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 IRA.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Individual Retirement Annuity.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 IRA/Individual Retirement Annuity. As the
 Participant elects at the time of contribution.

 

ARTICLE IV

LIMITATIONS AND TESTING 

[Note: The Employer, in the “Effective as of
execution” column under Election 37, must elect those testing elections which
are: (i) in effect as of date of the Employer’s execution of this Adoption Agreement;
and (ii) if the Adoption Agreement restates the Plan, also are retroactive to the later of the Plan’s original
Effective Date or EGTRRA restated Effective Date, except as indicated in
Appendix A. If the Employer wishes to change any testing election after it
executes this Adoption Agreement, the Employer must elect the changes in the
“Changes post-execution” column under Election 37, and the Employer must
specify the Plan Year Effective Date(s) of any changed election. The Employer
may complete the Effective Date blanks specifying the changed election applies
to a single Plan Year (e.g., “2011 only”), or a range of Plan Years (e.g.,
“2011-2015”) or may specify the change as becoming effective in a specified
Plan Year (e.g., “commencing 2010”). If the Employer specifies a single Plan
Year only or specifies a range of Plan Years, the Plan becomes subject to the
election in the “Effective as of execution” column in the Plan Years commencing
after the specified Year(s), unless the Employer subsequently changes the
election. If the Employer specifies the change as commencing in a Plan Year,
the election applies in the specified Plan Year and in all following Plan Years
unless the Employer subsequently changes the election.]  

37. ANNUAL
TESTING ELECTIONS (4.06(B)).
The Employer makes the following Plan specific annual testing elections under
Section 4.06(B). (Complete (a) and (b)):

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  (2)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Effective as of execution

 (and retroactively

 if restatement)

 	
  

 	
 Changes post-execution

 (specify Plan Year

 Effective Date(s))

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Nondiscrimination testing. (Choose one or more of (1), (2), or (3)):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Traditional 401(k) Plan/ADP/ACP test. The
 following testing method(s) apply (Choose
 a. and b. as applicable):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

© 2008 Prudential

21

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Note: The Plan may “split test” for Plan Years
 commencing in 2005.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 Current Year Testing. See Section 4.11(E).
 Current Year Testing applies to the ADP/ACP tests as elected below (Choose one or both of (i) and (ii)):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
  [  ]

 	
 ADP test.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
  [  ]

 	
 ACP test.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 

[Note: The Employer may leave (ii) blank if the Plan
does not permit Matching Contributions or Employee Contributions and the Plan
Administrator will not recharacterize Elective Deferrals as Employee
Contributions for testing.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Prior Year Testing. See Section 4.11(I). Prior
 Year Testing applies to the ADP/ACP tests as elected below. See Sections
 4.10(B)(4)(f)(iv) and 4.10(C)(5)(e)(iv) as to the first Plan Year. (Choose one
 or both of (i) and (ii)):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
  [  ]

 	
 ADP test.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
  [  ]

 	
 ACP test.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 

[Note: The Employer may leave (ii) blank if the Plan
does not permit Matching Contributions or Employee Contributions and the Plan
Administrator will not recharacterize Elective Deferrals as Employee
Contributions for testing.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [X]

 	
 Safe Harbor Plan/No testing or ACP test only.
 (Choose one of a., b., or c.):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [X]

 	
 No testing.

 	
  

 	
  [  ]

 	
  

 	
  [X]

 	
 Effective
 Date(s):

 January 1, 2008     

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ADP test
 safe harbor applies and if applicable, ACP test safe harbor applies.

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 ACP test only.

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 ADP test
 safe harbor applies, but Plan will perform ACP test as follows (Choose one of (i) or (ii)):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
  [  ]

 	
 Current Year Testing.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
  [  ]

 	
 Prior Year Testing.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 

[Note: The Employer may elect Prior Year Testing under
Election 37(a)(2)b.(ii) only for Plan Years after the Final 401(k) Regulations
Effective Date.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  [  ]

 	
 Possible delayed election.
(maybe notice/supplemental notice)

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 The Employer
 under Section 3.05(I)(1) may treat the Plan as a Traditional 401(k) Plan or
 may make a delayed election to treat the Plan as a Safe Harbor 401(k) Plan.
 If the Employer gives the maybe and supplemental notices and amends the Plan
 to provide for the Safe Harbor Nonelective Contribution, the Plan is an ADP
 test safe harbor plan for the Plan Year to which the maybe and supplemental
 notices and the amendment apply. If the Employer does not give the
 supplemental notice, the Plan is a Traditional 401(k) Plan, subject to ADP
 Current Year Testing and, if applicable, to ACP Current Year Testing. If the
 Employer gives the supplemental notice and amends the Plan to provide for the
 Safe Harbor Nonelective Contribution, and the Employer has elected Additional
 Matching Contributions under Election 30(h) (Choose
 one of (i) or (ii)): 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
  [  ]

 	
 No testing. ADP and ACP test safe harbors
 apply. The Employer’s elections under 30(h) as to Additional Matching
 Contributions satisfy the ACP safe harbor requirements and the Employer
 elects to apply the Election 30(h) stated ACP test safe harbor conditions
 (see the Note following Election 30(h)) as to all Additional Matching
 Contributions. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
  [  ]

 	
 ACP test only. ADP safe harbor applies, but
 the Plan will perform the ACP test as to all Additional Matching
 Contributions using Current Year Testing.

 

© 2008
Prudential 

22

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 [Note: Even if the Employer does not elect
 37(a)(2)c., the Employer still may make a delayed election into safe harbor
 status under Section 3.05(I)(1) using the maybe and supplemental notices and
 by amending the plan to provide for the Safe Harbor Nonelective Contribution.
 However, in this case, the Employer also must amend the Plan to make its
 testing elections under this Election 37 consistent with its delayed election
 into safe harbor status. The Employer then may elect any election under
 37(a)(2), including 37(a)(2)c. An Employer’s election of 37(a)(2)c. permits
 the Plan to remain in perpetual possible delayed safe harbor election status,
 while minimizing the number of Plan amendments required to do so.]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 [  ]

 	
 SIMPLE 401(k) Plan/No testing.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 HCE determination. (Complete both (1) and (2)):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Top-paid group election. (Choose one of a. or b.):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [X]

 	
 Does not apply.

 	
  

 	
  [X]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Applies.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective Date(s):

 ________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Calendar year data election (fiscal year Plan only).
(Choose one of a.
 or b.):

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [X]

 	
 Does not apply.

 	
  

 	
  [  ]

 	
  

 	
  [X]

 	
 Effective
 Date(s):

 January 1, 2008     

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Applies.

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
 Effective
 Date(s):

 ________________

 	
  

 

ARTICLE V

VESTING REQUIREMENTS

	
  

 	
  

 	
  

 	
  

 
	
 38. NORMAL
 RETIREMENT AGE (5.01). A
 Participant attains Normal Retirement Age under the Plan on the following
 date (Choose one of (a) or (b)):
 

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Specific age. The date the Participant
 attains age   65  . [Note: The age may not exceed age 65.] 

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Age/participation. The later of the date the
 Participant attains age _____ or the _______ anniversary of the first day of
 the Plan Year in which the Participant commenced participation in the Plan. [Note: The age may not exceed age 65 and the
 anniversary may not exceed the 5th.] 

 
	
  

 	
  

 	
  

 	
  

 
	
 39. EARLY
 RETIREMENT AGE (5.01). (Choose one of (a) or (b)): 

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Not applicable. The Plan does not provide
 for an Early Retirement Age. 

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Early Retirement Age. Early Retirement Age
 is the later of: (i) the date a Participant attains age ______; (ii) the
 date a Participant reaches his/her _______ anniversary of the first day of
 the Plan Year in which the Participant commenced participation in the Plan;
 or (iii) the date a Participant completes _______ Years of Service.

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: The Employer should leave blank any of
 clauses (i), (ii), and (iii) which are not applicable.] 

 
	
  

 	
  

 	
  

 	
  

 
	
 “Years of
 Service” under this Election 39 means (Choose
 one of (1) or (2) as applicable): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Eligibility. Years of Service for
 eligibility in Election 16. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Vesting. Years of Service for vesting in
 Elections 42 and 43. 

 
	
  

 	
  

 	
  

 	
  

 
	
 [Note: Election of an Early Retirement Age does not
 affect the time at which a Participant may receive a Plan distribution.
 However, a Participant becomes 100% vested at Early Retirement Age.]
 

 
	
  

 	
  

 	
  

 	
  

 
	
 40. ACCELERATION
 ON DEATH OR DISABILITY (5.02).
 Under Section 5.02, if a Participant incurs a Severance from Employment as a
 result of death or Disability (Choose one
 of (a), (b), or (c)): 

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Applies. Apply 100% vesting. 

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Not applicable. Do not apply 100% vesting.
 The Participant’s vesting is in accordance with the applicable Plan vesting
 schedule. 

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Limited application. Apply 100% vesting, but
 only if a Participant incurs a Severance from Employment as a result of (Choose one of (1) or (2)): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Death. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Disability. 

 

© 2008
Prudential 

23

Nonstandardized 401(k) Plan

41.     VESTING
SCHEDULE (5.03). A Participant
has a 100% Vested interest at all times in his/her Accounts attributable to:
(i) Elective Deferrals; (ii) Employee Contributions; (iii) QNECs; (iv) QMACs;
(v) Safe Harbor Contributions; (vi) SIMPLE Contributions; (vii) Rollover
Contributions; (viii) Prevailing Wage Contributions unless the Prevailing Wage
Contract provides otherwise; (ix) DECs; and (x) Designated IRA Contributions.
The following vesting schedule applies to Regular Matching Contributions, to
Additional Matching Contributions (irrespective of ACP testing status) and to
Nonelective Contributions (other than Prevailing Wage Contributions) (Choose (a) or choose one or both of (b) and (d) as
applicable. Choose (c) if elect a non-top-heavy schedule under (b) or (d)):

	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Immediate vesting. 100% Vested at all times
 in all Accounts.

 

[Note: Unless all Contribution Types are 100%
Vested, the Employer should not elect 41(a). If the Employer elects immediate
vesting under 41(a), the Employer should not complete the balance of Election
41 or Elections 42 and 43 (except as noted therein). The Employer must elect
41(a) if the eligibility Service condition under Election 14 as to all
Contribution Types (except Elective Deferrals and Safe Harbor Contributions)
exceeds one Year of Service or more than 12 months. The Employer must elect
41(b)(1) as to any Contribution Type where the eligibility service condition
exceeds one Year of Service or more than 12 months. The Employer should elect
41(b) if any Contribution Type is subject to a vesting schedule.]  

	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Vesting schedules: Apply the following
 vesting schedules (Choose one or more of
 (1) through (7) as applicable):

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  (2)

 	
  (3)

 	
  (4)

 
	
  

 	
  

 	
  

 	
  

 	
 All

 Contributions

 	
  

 	
 Nonelective

 	
 Regular

 Matching

 	
 Additional

 Matching (See

 Section 3.05(F))

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Immediate vesting

 	
 N/A

 	
  

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
 (See Election 41(a))

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Top-heavy: 6-year graded

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Top-heavy: 3-year cliff

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Modified top-heavy:

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
 Years of
Service  

 	
 Vested %  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 

 	
 

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Less than 1

 	
 a. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 1

 	
 b. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 2

 	
 c. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 3

 	
 d. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 4

 	
 e. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 5

 	
 f. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 6 or more

 	
 100%

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [  ]

 	
 Non-top-heavy: 7-year graded

 	
 N/A

 	
  

 	
  [  ]

 	
 N/A

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
  [  ]

 	
 Non-top-heavy: 5-year cliff

 	
 N/A

 	
  

 	
  [  ]

 	
 N/A

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
  [  ]

 	
 Modified non-top-heavy: 

 	
 N/A

 	
  

 	
  [  ]

 	
 N/A

 	
 N/A

 
	
  

 	
  

 	
  

 	
 Years of
Service 

 	
 Vested %  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 

 	
 

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Less than 1

 	
 a. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 1

 	
 b. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 2

 	
 c. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 3

 	
 d. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 4

 	
 e. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 5

 	
 f. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 6

 	
 g. ______

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 7 or more

 	
 100%

 	
  

 	
  

 	
  

 	
  

 	
  

 

[Note: If the Employer does not elect 41(a), the
Employer under 41(b) must elect immediate vesting or must elect a top-heavy or
modified top-heavy vesting schedule. The modified top-heavy schedule of
Election 41(b)(4) must satisfy Code §416. A top-heavy schedule must apply to
Regular Matching Contributions and to Additional Matching Contributions. See
Section 5.03(A)(1). The Employer as to Nonelective Contributions only may elect
one of Elections 41(b)(5), (6), or (7) in addition to electing a top-heavy
schedule. The Employer must complete Election 41(c) if it elects any
non-top-heavy schedule. If the Employer does not elect a non-top-heavy
schedule, the elected top-heavy schedule(s) applies to all Plan Years. If the
Employer elects 41(b)(7), the modified non-top-heavy schedule must satisfy Code
§411(a)(2). If the Employer
elects Additional Matching under Election 30(h), the Employer should elect
vesting under the Additional Matching column in this Election 41(b). That
election applies to the Additional Matching even if the Employer has given the maybe
notice but does not give the supplemental notice for any Plan Year and as to
such Plan Years, the Plan is not a safe harbor plan and the Matching
Contributions are not Additional Matching Contributions. If the Plan’s
Effective Date is after December 31, 2006, do not complete Elections 41(b)(5),
(b)(6), or (b)(7).]  

© 2008
Prudential

24

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Nonelective Contributions: application of top-heavy schedule
 (Choose one of (1) or (2)):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Apply in all Plan Years once top-heavy.
 Apply the top-heavy vesting schedule under Election 41(b) for the first Plan
 Year in which the Plan is top-heavy and then in all subsequent Plan Years.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Apply only in top-heavy Plan Years. Apply
 the non-top-heavy schedule under Election 41(b) in all Plan Years in which
 the Plan is not a top-heavy plan.

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Special vesting provisions: __________________________________________________________________.

 

[Note: The Employer under Election 41(d) may describe
special vesting provisions from the elections available under Election 41
and/or a combination thereof as to a: (i) Participant group (e.g., Full vesting
applies to Division A Employees OR to Employees hired on/before “x” date.
6-year graded vesting applies to Division B Employees OR to Employees hired
after “x” date.); and/or (ii) Contribution Type (e.g., Full vesting applies as
to Discretionary Nonelective Contributions. 6-year graded vesting applies to
Fixed Nonelective Contributions). Any special vesting provision must satisfy
Code §411(a) and must be nondiscriminatory.]  

	
  

 	
  

 
	
 42.     YEAR
 OF SERVICE - VESTING (5.05).
 (Complete both (a) and (b)):

 

[Note: If the Employer elects the Elapsed Time Method
for vesting the Employer should not complete this Election 42. If the Employer
elects immediate vesting, the Employer should not complete Election 42 or
Election 43 unless it elects to apply a Year of Service for vesting under any
other Adoption Agreement election.]  

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Year of Service. An Employee must complete
at least 1,000 Hours of Service during a Vesting Computation Period to
receive credit for a Year of Service under Article V. [Note: The number may not exceed 1,000. If left
blank, the requirement is 1,000.]  

 
	
  

 	
  

 
	
 (b)

 	
 Vesting Computation Period. The Plan
 measures a Year of Service based on the following 12-consecutive month period
 (Choose one of (1) or (2)):

 
	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 Plan Year.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Anniversary Year.

 
	
  

 	
  

 
	
 43.     EXCLUDED
 YEARS OF SERVICE - VESTING (5.05(C)).
 The Plan excludes the following Years of Service for purposes of vesting (Choose (a) or choose one or more of (b) through
 (e) as applicable):

 
	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 None. None other than as specified in
 Section 5.05(C)(1).

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Age 18. Any Year of Service before the
 Vesting Computation Period during which the Participant attained the age of
 18.

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Prior to Plan establishment. Any Year of
 Service during the period the Employer did not maintain this Plan or a
 predecessor plan.

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Rule of Parity. Any Year of Service excluded
 under the rule of parity. See Plan Section 5.06(C).

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 Additional exclusions. The following Years
 of Service: ___________________________________________.

 

[Note: The Employer under Election 43(e) may describe vesting service exclusions provisions
available under Election 43 and/or a combination thereof as to a: (i)
Participant group (e.g., No exclusions apply to Division A Employees OR to
Employees hired on/before “x” date. The age 18 exclusion applies to Division B
Employees OR to Employees hired after “x” date.); or (ii) Contribution Type
(e.g., No exclusions apply as to Discretionary Nonelective Contributions. The
age 18 exclusion applies to Fixed Nonelective Contributions). Any exclusion
specified under Election 43(e) must comply with Code §411(a)(4). Any exclusion
must be nondiscriminatory.]  

ARTICLE VI

DISTRIBUTION OF ACCOUNT BALANCE

44.     MANDATORY
DISTRIBUTION (6.01(A)(1)/6.08(D)).
The Plan provides or does not provide for Mandatory Distribution of a
Participant’s Vested Account Balance following Severance from Employment, as
follows (Choose one of (a) or (b)):

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 No Mandatory Distribution. The Plan will not
 make a Mandatory Distribution following Severance from Employment.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Mandatory Distribution. The Plan will make a
 Mandatory Distribution following Severance from Employment. (Complete (1) and (2). Choose (3) unless the
 Employer elects to limit Mandatory Distributions to $1,000 including Rollover
 Contributions under Elections 44(b)(1)b. and 44(b)(2)b.):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Amount limit. As to a Participant who incurs
 a Severance from Employment and who will receive distribution before
 attaining the later of age 62 or Normal Retirement Age, the Mandatory
 Distribution maximum amount is equal to (Choose
 one of a., b., or c.):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [X]

 	
 $5,000.

 
	
  

 	
  

 	
  

 	 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 $1,000.

 
	
  

 	
  

 	
  

 	 	
  

 
	
  

 	
  

 	
 c.

 	
  [  ]

 	
 Specify amount: $ ______ (may not exceed $5,000). 

 

© 2008 Prudential

25

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 
	
 (2)

 	
 Application of Rollovers to amount limit. In
 determining whether a Participant’s Vested Account Balance exceeds the
 Mandatory Distribution dollar limit in Election 44(b)(1), the Plan (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
  [X]

 	
 Disregards Rollover Contribution Account.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
  [  ]

 	
 Includes Rollover Contribution Account.

 
	
  

 	
  

 	
  

 	
  

 
	
 (3)

 	
  [X]

 	
 Amount of Mandatory Distribution subject to Automatic Rollover.
 A Mandatory Distribution to a Participant before attaining the later of age
 62 or Normal Retirement Age is subject to Automatic Rollover under Section
 6.08(D) (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
  [X]

 	
 Only if exceeds $1,000. Only if the amount
 of the Mandatory Distribution exceeds $1,000, which for this purpose must
 include any Rollover Contributions Account.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
  [  ]

 	
 Specify lesser amount. Only if the amount of
 the Mandatory Distribution is at least: $ ______ (specify $1,000 or less).

 

45.     SEVERANCE
DISTRIBUTION TIMING (6.01).
Subject to the timing limitations of Section 6.01(A)(1) in the case of a
Mandatory Distribution, or in the case of any Distribution Requiring Consent
under Section 6.01(A)(2), for which consent is received, the Plan Administrator
will instruct the Trustee to distribute a Participant’s Vested Account Balance
as soon as is administratively practical following the time specified below (Choose one or more of (a) through (k) as applicable):

 [Note: If a Participant dies after Severance from
Employment but before receiving distribution of all of his/her Account, the
elections under this Election 45 no longer apply. See Section 6.01(B) and
Election 49.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  (1)

 Mandatory

 Distribution

 	
  (2)

 Distribution

 Requiring Consent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Immediate. Immediately following Severance
 from Employment.

 	
  [X]

 	
  [X]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Next Valuation Date. After the next
 Valuation Date following Severance from Employment.

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Plan Year. In the _____ Plan Year following
 Severance from Employment (e.g., next or
 fifth).

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Plan Year quarter. In the ______ Plan Year
 quarter following Severance from Employment (e.g.,
 next or fifth).

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 Contribution Type Accounts. ___________ as
 to the Participant’s ___________ Account(s)
 and ___________ as to the
 Participant’s ___________
 Account(s) (e.g., As soon as is practical following Severance from
 Employment as to the Participant’s Elective Deferral Account and as soon as
 is practical in the next Plan Year following Severance from Employment as to
 the Participant’s Nonelective and Matching Accounts).

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Vesting controlled timing. If the
 Participant’s total Vested Account Balance exceeds $______, distribute __________ (specify timing) and if the Participant’s total Vested
 Account Balance does not exceed $ _____,
 distribute __________ (specify timing).

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  [  ]

 	
 Distribute at Normal Retirement Age. As to a
Mandatory Distribution, distribute not later than 60 days after the beginning
of the Plan Year following the Plan Year in which the previously severed
Participant attains the earlier of Normal Retirement Age or age 65. [Note: An election under column (2) only will have
effect if the Plan’s NRA is less than age 62.]  

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
  [  ]

 	
 Acceleration. Notwithstanding any later
 specified distribution date in Election 45, a Participant may elect an
 earlier distribution following Severance from Employment (Choose (1) and (2) as applicable):

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Disability. If Severance from Employment is
 on account of Disability or if the Participant incurs a Disability following
 Severance from Employment.

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Hardship. If the Participant incurs a
 hardship under Section 6.07 following Severance from Employment.

 	
  

 	
  

 

© 2008 Prudential

26

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (i)

 	
  [  ]

 	
 Required distribution at Normal Retirement Age.
 A severed Participant may not elect to delay distribution beyond the later of
 age 62 or Normal Retirement Age.

 	
 N/A

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (j)

 	
  [  ]

 	
 No buy-back/vesting controlled timing. Distribute
 as soon as is practical following Severance from Employment if the
 Participant is fully Vested. Distribute as soon as is practical following a
 Forfeiture Break in Service if the Participant is not fully Vested.

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (k)

 	
  [  ]

 	
 Describe Severance from Employment distribution timing: _______________________________________

 

[Note: The Employer under Election 45(k) may describe Severance from Employment distribution
timing provisions from the elections available under Election 45 and/or a
combination thereof as to any: (i) Participant group (e.g., Immediate
distribution after Severance of Employment applies to Division A Employees OR
to Employees hired on/before “x” date. Distribution after the next Valuation
Date following Severance from Employment applies to Division B Employees OR to
Employees hired after “x” date.); (ii) Contribution Type (e.g., As to Division
A Employees, immediate distribution after Severance of Employment applies as to
Elective Deferral Accounts and distribution after the next Valuation Date
following Severance from Employment applies to Nonelective Contribution
Accounts); and/or (iii) merged plan account now held in the Plan (e.g., The
accounts from the X plan merged into this Plan continue to be distributable in
accordance with the X plan terms [supply terms] and not in accordance with the
terms of this Plan). An Employer’s election under Election 45(k) must: (i) be
objectively determinable; (ii) not be subject to Employer discretion; (iii)
comply with Code §401(a)(14) timing requirements; (iv) be nondiscriminatory and
(v) preserve Protected Benefits as required.]

46.     IN-SERVICE
DISTRIBUTIONS/EVENTS (6.01(C)).
A Participant may elect an In-Service Distribution of the designated
Contribution Type Accounts based on any of the following events in accordance
with Section 6.01(C) (Choose one of (a) or
(b)):

[Note: If the Employer elects any In-Service
Distribution option, a Participant may elect to receive as many In-Service
Distributions per Plan Year (with a minimum of one per Plan Year) as the Plan
Administrator’s In-Service Distribution form or policy may permit. If the form
or policy is silent, the number of In-Service Distributions is not limited.
Prevailing Wage Contributions are treated as Nonelective Contributions unless
the Prevailing Wage Contract provides otherwise. See Section 6.01(C)(4)(d) if
the Employer elects to use Prevailing Wage Contributions to offset other
contributions.]

	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 None. The Plan does not permit any
 In-Service Distributions except as to any of the following (if applicable):
 (i) RMDs under Section 6.02; (ii) Protected Benefits; and (iii) under Section
 6.01(C)(4) as to Employee Contributions, Rollover Contributions, DECs,
 Transfers, and Designated IRA Contributions.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Permitted. In-Service Distributions are
 permitted as follows from the designated Contribution Type Accounts (Choose one or more of (1) through (9)):

 

[Note: Unless the Employer elects otherwise in
Election 46(b)(9), Elective Deferrals under Election 46(b) includes Pre-Tax and
Roth Deferrals and Matching Contributions includes Additional Matching
Contributions, irrespective of the Plan’s ACP testing status.]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  (2)

 	
  

 	
  (3)

 	
  

 	
  (4)

 	
  

 	
  (5)

 	
  

 	
  (6)

 	
  

 	
  (7)

 
	
  

 	
  

 	
  

 	
 All

 	
  

 	
 Elective

 	
  

 	
 Safe Harbor

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 Matching

 	
  

 	
 Nonelective/

 
	
  

 	
  

 	
  

 	
 Contributions

 	
  

 	
 Deferrals

 	
  

 	
 Contributions

 	
  

 	
 QNECs

 	
  

 	
 QMACs

 	
  

 	
 Contrib.

 	
  

 	
 SIMPLE

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (1)

 	
  [  ]

 	
 None. Except for Election 46(a) exceptions.

 	
 N/A 
(See Election
 46(a))

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (2)

 	
  [X]

 	
 Age 59 1/2 (must be at least 59 1/2).

 	
  [X]

 	
 OR

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (3)

 	
  [  ]

 	
 Age _____ (may
 be less than 59 1/2).

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (4)

 	
  [X]

 	
 Hardship (safe harbor). See Section 6.07(A).

 	
 N/A

 	
  

 	
  [X]

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (5)

 	
  [  ]

 	
 Hardship (non- safe harbor). See Section
 6.07(B).

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (6)

 	
  [  ]

 	
 Disability.

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (7)

 	
  [  ]

 	
 _____ year contributions. (specify minimum of two years) See
 Section 6.01(C)(4)(a)(i).

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 

© 2008 Prudential

27

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
  [  ]

 	
 _____ months of participation. (specify minimum of 60 months) See
 Section 6.01(C)(4)(a)(ii).

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
 N/A

 	
  

 	
  [  ]

 	
  

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
  [  ]

 	
 Describe: ___________________________________________________________________________

 

[Note: The Employer under Election 46(b)(9)
may describe In-Service Distribution
provisions from the elections available under Election 46 and/or a combination
thereof as to any: (i) Participant group (e.g., Division A Employee Accounts
are distributable at age 59 1/2 OR Accounts of Employees hired on/before “x”
date are distributable at age 59 1/2). No In-Service Distributions apply to
Division B Employees OR to Employees hired after “x” date.); (ii) Contribution
Type (e.g., Discretionary Nonelective Contribution Accounts are distributable
on Disability. Fixed Nonelective Contribution Accounts are distributable on
Disability or Hardship (non-safe harbor)); and/or (iii) merged plan account now
held in the Plan (e.g., The accounts from the X plan merged into this Plan
continue to be distributable in accordance with the X plan terms [supply terms]
and not in accordance with the terms of this Plan). An Employer’s election under
Election 46(b)(9) must: (i) be objectively determinable; (ii) not be subject to
Employer discretion; (iii) preserve Protected Benefits as required; (iv) be
nondiscriminatory; and (v) not permit an “early” distribution of any Restricted
401(k) Accounts or Restricted Pension Accounts. See Section 6.01(C)(4).]  

In-Service Distribution of other Accounts.
See Section 6.01(C)(4) as to In-Service Distribution of Employee Contributions,
Rollover Contributions, DECs, Transfers, and Designated IRA Contributions.

47.     IN-SERVICE
DISTRIBUTIONS/ADDITIONAL CONDITIONS (6.01(C)).
The following additional conditions apply to In-Service Distributions under
Election 46(b) (Choose one of (a) or (b)):

[Note: The Employer should complete Election 47 if the
Employer elects any In-Service Distributions under Election 46(b).]

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Additional conditions. (Complete (1). Choose (2) and (3) as applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Vesting. A Participant may receive an
 In-Service Distribution under Election 46(b) based on vesting in the distributing
 Account as follows (Choose one of a., b.,
 or c.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 100% vesting required. A Participant may not
 receive any In-Service Distribution unless the Participant is 100% Vested in
 the distributing Account.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 100% vesting required except hardship. A
 Participant may not receive any In-Service Distribution unless the
 Participant is 100% Vested in the distributing Account, unless the
 distribution is based on hardship.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  [  ]

 	
 Not required. A Participant may receive an In-Service
 Distribution even from a partially-Vested Account, but the amount distributed
 may not exceed the Vested amount in the distributing partially-Vested
 Account.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Minimum amount. A Participant may not
 receive an In-Service Distribution in an amount which is less than: $ ______ (specify amount not exceeding $1,000).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 Describe other conditions:
 _____________________________________________________________

 

[Note: An Employer’s election under Election 47(a)(3)
must: (i) be objectively determinable; (ii) not be subject to Employer
discretion; (iii) preserve Protected Benefits as required; (iv) be
nondiscriminatory; and (v) not
permit an “early” distribution of any Restricted 401(k) Accounts or Restricted
Pension Accounts. See Section 6.01(C)(4).]  

	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 No other conditions. A Participant may elect
 to receive an In-Service Distribution upon any Election 46(b) event without
 further condition, provided that the amount distributed may not exceed the
 Vested amount in the distributing Account.

 

48.     POST-SEVERANCE
AND LIFETIME RMD DISTRIBUTION METHODS (6.03).
A Participant whose Vested Account Balance exceeds $5,000 (or any lesser amount
elected in Appendix B, Election 54(g)(7)): (i) who has incurred a Severance
from Employment and will receive a distribution; or (ii) who remains employed
but who must receive lifetime RMDs, may elect distribution under one of the
following method(s) of distribution described in Section 6.03 and subject to
any Section 6.03 limitations. (Choose one or
more of (a) through (f) as applicable):

[Note: If a Participant dies after Severance from
Employment but before receiving distribution of all of his/her Account, the
elections under this Election 48 no longer apply. See Section 6.01(B) and
Election 49.]

	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Lump-Sum. See Section 6.03(A)(3).

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Installments only if Participant subject to lifetime RMDs.
 A Participant who is required to receive lifetime RMDs may receive
 installments payable in monthly, quarterly or annual installments equal to or
 exceeding the annual RMD amount. See Sections 6.02(A) and 6.03(A)(4)(a).

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  [X]

 	
 Installments. See Section 6.03(A)(4).

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Alternative Annuity:
 ___________________________________________. See Section 6.03(A)(5).

 

© 2008 Prudential

28

Nonstandardized 401(k) Plan 

[Note: Under a Plan which is subject to the joint and
survivor annuity distribution requirements of Section 6.04 (Election 50(b)),
the Employer may elect under 48(d) to offer one or more additional annuities
(Alternative Annuity) to the Plan’s QJSA or QPSA. If the Employer elects under
Election 50(a) to exempt Exempt Participants from the joint and survivor
annuity requirements, the Employer should not elect to provide an Alternative
Annuity under 48(d).] 

	
  

 	
  

 	
  

 
	
  (e) 

 	
  [X]

 	
 Ad-Hoc distributions. See Section
 6.03(A)(6). 

 

[Note: If an Employer elects to permit Ad-Hoc
distributions: (i) the option must be available to all Participants; and (ii)
the option is a Protected Benefit.]

	
  

 	
  

 	
  

 
	
  (f) 

 	
  [  ]

 	
 Describe distribution method(s): _____________________________________________________________

 

[Note: The Employer under Election 48(f) may describe Severance from Employment distribution
methods from the elections available under Election 48 and/or a combination
thereof as to any: (i) Participant group (e.g., Division A Employee Accounts
are distributable in a Lump-Sum OR Accounts of Employees hired after “x” date
are distributable in a Lump-Sum. Division B Employee Accounts are distributable
in a Lump-Sum or in Installments OR Accounts of Employees hired on/before “x”
date are distributable in a Lump-Sum or in Installments.); (ii) Contribution
Type (e.g., Discretionary Nonelective Contribution Accounts are distributable
in a Lump-Sum. Fixed Nonelective Contribution Accounts are distributable in a
Lump-Sum or in Installments); and/or (iii) merged plan account now held in the
Plan (e.g., The accounts from the X plan merged into this Plan continue to be
distributable in accordance with the X plan terms [supply terms] and not in
accordance with the terms of this Plan). An Employer’s election under Election
48(f) must: (i) be objectively determinable; (ii) not be subject to Employer,
Plan Administrator or Trustee discretion; (iii) be nondiscriminatory; and (iv)
preserve Protected Benefits as required.] 

49.     BENEFICIARY
DISTRIBUTION ELECTIONS (6.01(B)/6.02(B)/6.03).
Subject to the Participant’s elections under Section 6.01(B)(1) as to the
timing and method of distribution of the Participant’s Account to the
Participant’s Beneficiary (which Participant elections must be consistent with
the Plan and this Election 49), in the case of a Participant’s death, the
Beneficiary will receive distribution of the Participant’s Account (or of the
Beneficiary’s share thereof) as follows (Complete
(a), (b), and (c)):

[Note: For purposes of this Election 49, unless
otherwise noted, a “Beneficiary” includes, but is not limited to a “Designated
Beneficiary” under Section 6.02(E)(1).] 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  (1)

 Spouse Beneficiary

 	
  (2)

 Other Beneficiary

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Timing. The Plan will distribute to the
 Beneficiary as soon as is practical at (or not later than) the following time
 or date (Choose one of (1) through (4).
 Choose (5) if applicable):

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [  ]

 	
 Immediate. Immediately following the
 Participant’s death.

 	
  

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Next Calendar Year. In the calendar year
 which next follows the calendar year of the Participant’s death, but not
 later than December 31 of such following calendar year.

 	
  

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [X] 

 	
 As Beneficiary elects. At such time as the
 Beneficiary may elect, provided that distribution pursuant to such election
 (or in the absence of any Beneficiary election) must commence no later than
 the Section 6.02 required date.

 	
  

 	
  [X]

 	
  [X]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 Describe: __________________________________________

 	
  

 	
  [  ]

 	
  [  ]

 

[Note: The Employer under Election 49(a)(4) may
describe an alternative distribution timing or afford the Beneficiary an
election which is narrower than that permitted under election 49(a)(3).
However, any election under Election 49(a)(4) must require distribution to
commence no later than the Section
6.02 required date.] 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
  [X]

 	
 Death before DCD; spousal election to delay.
 If the Participant dies before his/her Distribution Commencement Date and the
 Participant’s sole Designated Beneficiary is his/her spouse, the spouse may
 elect to delay distribution until the end of the calendar year in which the
 Participant would have attained age 70 1/2, if that date is later than the
 date upon which distribution would be required to commence to a non-spouse
 Beneficiary.

 	
  

 	
  [X]

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Method. The Plan will distribute to the
 Beneficiary under the following distribution method(s). If more than one
 method is elected, the Beneficiary may choose the method of distribution. (Choose one or more of (1) through (4) but do not
 elect (4) only):

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 Lump-Sum. See Section 6.03(A)(3).

 	
  

 	
  [X]

 	
  [X]

 

	
  

 	
  

 
	
 © 2008
 Prudential

 	
 29

 

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [X]

 	
 Installments sufficient to satisfy RMD. 
See
 Section 6.03(A)(4)(a). An Installment in each Distribution Calendar Year must
 at least equal the RMD amount.

 	
  

 	
  [X]

 	
  [X]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [X]

 	
 Ad-Hoc sufficient to satisfy RMD. See
 Section 6.03(A)(6). The Beneficiary must elect an Ad-Hoc distribution for
 each Distribution Calendar Year at least equal to the RMD amount.

 	
  

 	
  [X]

 	
  [X]

 

[Note: If an Employer elects to permit Ad-Hoc
distributions: (i) the option must be available to all Beneficiaries; and (ii)
the option is a Protected Benefit.] 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
  [  ]

 	
 QPSA. See Section 6.04(B).

 	
  

 	
  [  ]

 	
 N/A

 

[Note: If the Employer elects 50(b), the Employer
should elect 49(b)(4). If the Employer elects 50(a), the Employer should not
elect 49(b)(4). A surviving spouse may elect to waive the QPSA in favor of
another method.] 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
 Death before the DCD. If a Participant dies
 before the Distribution Commencement Date, the distribution to the
 Beneficiary will be made in accordance with the following rule(s) (Choose one of (1), (2), or (3)):

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
  [X]

 	
 Beneficiary election. See Section
 6.02(B)(1)(e). This election applies only if the Beneficiary is a Designated
 Beneficiary under Treas. Reg.
 §1.401(a)(9)-4. If not, the 5-year rule applies. In the absence of the
 Designated Beneficiary’s election, the Life Expectancy rule applies. The Employer
 in Appendix B may elect to change the default (no Designated Beneficiary
 election) to the 5-year rule.

 	
  

 	
  [X]

 	
  [X]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
  [  ]

 	
 Life Expectancy rule. See Section
 6.02(B)(1)(d). This election applies only if the Beneficiary is a Designated
 Beneficiary under Treas. Reg.
 §1.401(a)(9)-4. If not, the 5-year rule applies.

 	
  

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [  ]

 	
 5-year rule. See Section 6.02(B)(1)(c). This
 election applies regardless of whether the Beneficiary is a Designated
 Beneficiary under Treas. Reg.
 §1.401(a)(9)-4.

 	
  

 	
  [  ]

 	
  [  ]

 

50. JOINT
AND SURVIVOR ANNUITY REQUIREMENTS (6.04).
The joint and survivor annuity distribution requirements of Section 6.04 (Choose one of (a) or (b)): 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Profit sharing exception. Do not apply to an
 Exempt Participant, as described in Section 6.04(G)(1), but apply to any
 other Participants (or to a portion of their Account as described in Section
 6.04(G)) (Complete (1)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 One-year marriage rule. Under Section
 7.05(A)(3) relating to an Exempt Participant’s Beneficiary designation under
 the profit sharing exception (Choose one
 of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 Applies. The one-year marriage rule applies.

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [X]

 	
 Does not apply. The one-year marriage rule
 does not apply.

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Joint and survivor annuity applicable.
 Section 6.04 applies to all Participants (Complete
 (1)):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 One-year marriage rule. Under Section
 6.04(B) relating to the QPSA (Choose one
 of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  [  ]

 	
 Applies. The one-year marriage rule applies.

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  [  ]

 	
 Does not apply. The one-year marriage rule
 does not apply.

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
 © 2008
 Prudential

 	
 30

 

Nonstandardized 401(k) Plan

ARTICLE VII

ADMINISTRATIVE PROVISIONS

51.     ALLOCATION
OF EARNINGS (7.04(B)). For
each Contribution Type provided under the Plan, the Plan allocates Earnings
using the following method (Choose one or
more of (a) through (f) as applicable):

[Note: Elective Deferrals/Employee Contributions also
includes Rollover Contributions, Transfers, DECs and Designated IRA
Contributions, Matching Contributions includes all Matching Contributions and
Nonelective Contributions includes all Nonelective Contributions unless
described otherwise in Election 51(f).] 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (1)

 	
  

 	
 (2)

 	
 (3)

 	
 (4)

 
	
  

 	
  

 	
  

 	
  

 	
 All

 Contributions

 	
  

 	
 Elective Deferrals/

 Employee

 Contributions

 	
 Matching

 Contributions

 	
 Nonelective
Contributions

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [X]

 	
 Daily. See Section 7.04(B)(4)(a).

 	
  

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Balance forward.

 See Section 7.04(B)(4)(b).

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Balance forward with adjustment.

 See Section 7.04(B)(4)(c). Allocate pursuant to the balance forward method,
 except treat as part of the relevant Account at the beginning of the
 Valuation Period _____% of the contributions made during the following
 Valuation Period: ____________________.

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Weighted average. See Section 7.04(B)(4)(d).
 If not a monthly weighting period, the weighting period is: __________.

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 Participant-Directed Account. See Section
 7.04(B)(4)(e).

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Describe Earnings allocation method: _______________________________________________________

 

[Note: The Employer under Election 51(f) may describe Earnings allocation methods from the
elections available under Election 51 and/or a combination thereof as to any:
(i) Participant group (e.g., Daily applies to Division A Employees OR to
Employees hired after “x” date. Balance forward applies to Division B Employees
OR to Employees hired on/before “x” date.); (ii) Contribution Type (e.g., Daily
applies as to Discretionary Nonelective Contribution Accounts.
Participant-Directed Account applies to Fixed Nonelective Contribution
Accounts); (iii) investment type, investment vendor or Account type (e.g.,
Balance forward applies to investments placed with vendor A and
Participant-Directed Account applies to investments placed with vendor B OR
Daily applies to Participant-Directed Accounts and balance forward applies to
pooled Accounts); and/or (iv) merged plan account now held in the Plan (e.g.,
The accounts from the X plan merged into this Plan continue to be subject to
Earnings allocation in accordance with the X plan terms [supply terms] and not
in accordance with the terms of this Plan). An Employer’s election under
Election 51(f) must: (i) be objectively determinable; (ii) not be subject to
Employer discretion; and (iii) be nondiscriminatory.] 

ARTICLE VIII

TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

52.     VALUATION
OF TRUST (8.02(C)(4)). In
addition to the last day of the Plan Year, the Trustee (or Named Fiduciary as
applicable) must value the Trust Fund on the following Valuation Date(s) (Choose one or more of (a) through (d) as applicable):

[Note: Elective Deferrals/Employee
Contributions also include Rollover Contributions, Transfers, DECs and
Designated IRA Contributions, Matching Contributions includes all Matching
Contributions and Nonelective Contributions includes all Nonelective
Contributions unless described otherwise in Election 52(d).]  

 © 2008 Prudential

 31

Nonstandardized 401(k) Plan

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  (1)

 	
  

 	
  (2)

 	
  (3)

 	
  (4)

 
	
  

 	
  

 	
  

 	
  

 	
 All

 Contributions

 	
  

 	
 Elective Deferrals/

 Employee

 Contributions

 	
 Matching

 Contributions

 	
 Nonelective
Contributions

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 No additional Valuation Dates.

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  [X]

 	
 Daily Valuation Dates. Each business day of
 the Plan Year on which Plan assets for which there is an established market
 are valued and the Trustee is conducting business.

 	
  

 	
  [X]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Last day of a specified period. The last day
 of each _______ of the Plan Year.

 	
  

 	
  [  ]

 	
 OR

 	
  [  ]

 	
  [  ]

 	
  [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Specified Valuation
 Dates: __________________________________________________________________.

 

[Note: The Employer under Election 52(d) may describe Valuation Dates from the elections
available under Election 52 and/or a combination thereof as to any: (i)
Participant group (e.g., No additional Valuation Dates apply to Division A
Employees OR to Employees hired after “x” date. Daily Valuation Dates apply to
Division B Employees OR to Employees hired on/before “x” date.); (ii)
Contribution Type (e.g., No additional Valuation Dates apply as to
Discretionary Nonelective Contribution Accounts. The last day of each Plan Year
quarter applies to Fixed Nonelective Contribution Accounts); (iii) investment
type, investment vendor or Account type (e.g., No additional Valuation Dates
apply to investments placed with vendor A and Daily Valuation Dates apply to
investments placed with vendor B OR Daily Valuation Dates apply to Participant-Directed
Accounts and no additional Valuation Dates apply to pooled Accounts); and/or
(iv) merged plan account now held in the Plan (e.g., The accounts from the X
plan merged into this Plan continue to be subject to Trust valuation in
accordance with the X plan terms [supply terms] and not in accordance with the
terms of this Plan). An Employer’s election under Election 52(d) must: (i) be
objectively determinable; (ii) not be subject to Employer discretion; and (iii)
be nondiscriminatory.] 

 © 2008 Prudential

 32

Nonstandardized 401(k) Plan

EXECUTION PAGE

The Employer, by executing this Adoption
Agreement, hereby agrees to the provisions of this Plan and Trust.

	
  

 	
  

 
	
  

 	
 Employer: State Bank of
 Long Island

 
	
  

 	
  

 
	
  

 	
 Date: ___________________________________________________

 
	
  

 	
  

 
	
  

 	
 Signed: _________________________________________________

 
	
  

 	
  

 
	
  

 	
 ________________________________________________________

 
	
  

 	
 [print name/title]

 

The Trustee, by executing
this Adoption Agreement, hereby accepts its position and agrees to all of the
obligations, responsibilities and duties imposed upon the Trustee under the
Prototype Plan and Trust. If the Employer under Election 5(c), 5(d), or 5(e)
will use a separate Trust, the Trustee need not execute this Adoption
Agreement. 

	
  

 	
  

 
	
  

 	
 Nondiscretionary
 Trustee(s): Prudential Bank & Trust Company, FSB

 
	
  

 	
  

 
	
  

 	
 Date:
 ___________________________________________________

 
	
  

 	
  

 
	
  

 	
 Signed:
 _________________________________________________

 
	
  

 	
  

 
	
  

 	
 ________________________________________________________

 
	
  

 	
 [print name/title]

 
	
  

 	
  

 
	
  

 	
 Nondiscretionary Trustee(s):
 _________________________________

 
	
  

 	
  

 
	
  

 	
 Date:
 ____________________________________________________

 
	
  

 	
  

 
	
  

 	
 Signed:
 __________________________________________________

 
	
  

 	
  

 
	
  

 	
 _________________________________________________________

 
	
  

 	
 [print name/title]

 

	
  

 	
  

 
	
  

 	
 Prototype Plan Sponsor: The
 Prudential Insurance Company of America (PICA)

 
	
  

 	
  

 
	
  

 	
 Date:
 ____________________________________________________

 
	
  

 	
  

 
	
  

 	
 Signed: __________________________________________________

 
	
  

 	
  

 
	
  

 	
 _________________________________________________________

 
	
  

 	
 [print name/title]

 
	
  

 	
  

 

Use of Adoption Agreement. Failure to complete properly the elections in
this Adoption Agreement may result in disqualification of the Employer's Plan.
The Employer only may use this Adoption Agreement only in conjunction with the
basic plan document referenced by its document number on Adoption Agreement
page one. 

Execution for Page Substitution Amendment Only. If this paragraph is completed, this
Execution Page documents an amendment to Adoption Agreement Election(s) ____
effective ____________ , by substitute Adoption Agreement page number(s) . The
Employer should retain all Adoption Agreement Execution Pages and amended
pages. [Note: The Effective Date may be
retroactive or may be prospective as permitted under Applicable Law.]

Prototype Plan Sponsor. The Prototype Plan Sponsor identified on the
first page of the basic plan document will notify all adopting Employers of any
amendment to this Prototype Plan or of any abandonment or discontinuance by the
Prototype Plan Sponsor of its maintenance of this Prototype Plan. For inquiries
regarding the adoption of the Prototype Plan, the Prototype Plan Sponsor's
intended meaning of any Plan provisions or the effect of the Opinion Letter
issued to the Prototype Plan Sponsor, please contact the Prototype Plan Sponsor
at the following address and telephone number: 751 Broad Street, Newark, NJ
07102-3777 1-800-848-4015. 

Reliance on Sponsor Opinion Letter. The Prototype Plan Sponsor has obtained from
the IRS an Opinion Letter specifying the form of this Adoption Agreement and
the basic plan document satisfy, as of the date of the Opinion Letter, Code
§401. An adopting Employer may rely on the Prototype Sponsor's IRS Opinion
Letter only to the extent
provided in Rev. Proc. 2005-16. The Employer may not rely on the Opinion Letter
in certain other circumstances or with respect to certain qualification
requirements, which are specified in the Opinion Letter and in Rev. Proc.
2005-16, Sections 19.02 and 19.03. In order to have reliance in such
circumstances or with respect to such qualification requirements, the Employer
must apply for a determination letter to Employee Plans Determinations of the
IRS. 

© 2008 Prudential 

33

Nonstandardized 401(k) Plan 

APPENDIX A

EGTRRA RESTATED PLANS - SPECIAL EFFECTIVE DATES 

[Covering period from
restated Effective Date in Election 4(b) until Employer executes EGTRRA
restatement]

53.  SPECIAL
EFFECTIVE DATES (1.19). The
Employer elects or does not elect Appendix A special Effective Date(s) as
follows. 
 (Choose (a) or one or more of (b) through (r) as applicable): 

[Note: If the Employer elects 53(a), do not complete the balance of this
Election 53.] 

	
  

 	
  

 	
  

 
	
 (a)

 	
  [  ]

 	
 Not
 applicable. The
 Employer does not elect any Appendix A special Effective Dates. 

 

[Note: The Employer should use this Appendix A where it is restating its
Plan for EGTRRA with a retroactive Effective Date, but where one or more
Adoption Agreement elections under the restated Plan became effective after the
Plan's general restatement Effective Date under Election 4(b). For periods
prior to the below-specified special Effective Date(s), the Plan terms in
effect prior to its restatement under this Adoption Agreement control for
purposes of the designated provisions. Any special Effective Date the Employer
elects must comply with Applicable Law.] 

	
  

 	
  

 	
  

 
	
 (b)

 	
  [  ]

 	
 Contribution
 Types (1.12). The
 Contribution Types under Election(s) 6 ____ are effective: _________.
[Note: The Plan may not permit Roth Deferrals before
 January 1, 2006.] 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  [  ]

 	
 Excluded
 Employees (1.21(D)).
 The Excluded Employee provisions under Election(s) 8 ____ are effective:
 __________.

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  [  ]

 	
 Compensation
 (1.11). The
 Compensation definition under Election(s) _____ (specify 9-11 as applicable) are effective: _________. 

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  [  ]

 	
 Eligibility
 (2.01-2.03). The
 eligibility provisions under Election(s)_____ (specify 14-19 as applicable) are effective: __________.

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  [  ]

 	
 Elective
 Deferrals (3.02(A)-(C)). The Elective Deferral provisions under Election(s) ____ (specify 20-22 as applicable) are
 effective: ____________.

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  [  ]

 	
 Catch-Up
 Deferrals (3.02(D)).
 The Catch-Up Deferral provisions under Election 23 _____ are effective: ___________.

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  [  ]

 	
 Matching
 Contributions (3.03).
 The Matching Contribution provisions under Election(s) _____ (specify 24-26 as applicable) are
 effective: _____________.

 
	
  

 	
  

 	
  

 
	
 (i)

 	
  [  ]

 	
 Nonelective
 Contributions (3.04).
 The Nonelective Contribution provisions under Election(s) ____ (specify 27-29 as applicable) are
 effective: ______________.

 
	
  

 	
  

 	
  

 
	
 (j)

 	
  [  ]

 	
 401(k)
 safe harbor (3.05).
 The 401(k) safe harbor provisions under Election(s) 30 _____ are
 effective: ____________.

 
	
  

 	
  

 	
  

 
	
 (k)

 	
  [  ]

 	
 Allocation
 conditions (3.06).
 The allocation conditions under Election(s) _____ (specify 31-32 as applicable) are effective: __________.

 
	
  

 	
  

 	
  

 
	
 (l)

 	
  [X]

 	
 Forfeitures
 (3.07). The
 forfeiture allocation provisions under Election(s) 33(c), (d), and (e)
 (specify 33-34 as applicable)
 are effective: September 1, 2009 . 

 
	
  

 	
  

 	
  

 
	
 (m)

 	
  [  ]

 	
 Employee
 Contributions (3.09).
 The Employee Contribution provisions under Election(s) 35 _____ are
 effective: ___________.

 
	
  

 	
  

 	
  

 
	
 (n)

 	
  [X]

 	
 Testing
 elections (4.06(B)).
 The testing elections under Election(s) 37 (a) under the “Effective as of
 execution (and retroactively if restatement)” column are effective: January
 1, 2008 . 

 
	
  

 	
  

 	
  

 
	
 (o)

 	
  [  ]

 	
 Vesting
 (5.03). The vesting
 provisions under Election(s) ______ (specify
 38-43 as applicable) are effective: __________. 

 
	
  

 	
  

 	
  

 
	
 (p)

 	
  [  ]

 	
 Distributions
 (6.01 and 6.03). The
 distribution elections under Election(s) ______ (specify 44-50 as applicable) are effective: _____________.

 
	
  

 	
  

 	
  

 
	
 (q)

 	
  [  ]

 	
 Earnings/Trust
 valuation (7.04(B)/8.02(C)(4)). The Earnings allocation and Trust valuation provisions under
 Election(s) ______ (specify 51-52 as
 applicable) are effective:
 _______________.

 
	
  

 	
  

 	
  

 
	
 (r)

 	
  [  ]

 	
 Special
 Effective Date(s) for other elections (specify
 elections and dates): If this Plan is retroactively effective
 on the Effective Date, the provisions of this Plan generally control,
 however, if the provisions of this Plan are different from the provisions of
 the Employer's prior plan, and after the retroactive Effective Date of this
 Plan, the Employer operated in compliance with the provisions of the prior
 plan, the provisions of such prior plan are incorporated into this Plan for
 purposes of determining whether the Employer operated the Plan in compliance
 with its terms, provided operation in compliance with the terms of the prior
 plan do not violate any qualification requirements under the Code,
 regulations or other IRS guidance. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Qualified Automatic
 Contribution Arrangement and Eligible Automatic Contribution Arrangement
 became effective on January 1, 2008.

 

© 2008 Prudential 

1

Nonstandardized 401(k) Plan 

Section
2.3(c) – Prior to January 1, 2010, the safe harbor matching contribution will
be based on Elective Deferrals and Compensation during each payroll period.
Effective January 1, 2010, the safe harbor matching contribution will be based
on the entire Plan Year. 

Section
2.3(e) of the Amendment for EACA and/or QACA Provisions – Prior to September 1,
2009, the QACA Safe Harbor Contribution was a 100% immediate vesting schedule.
Effective September 1, 2009, the vesting schedule became 100% after 1 Year of
Service. 

© 2008 Prudential 

2

Nonstandardized 401(k) Plan 

APPENDIX B

BASIC PLAN DOCUMENT OVERRIDE ELECTIONS

54.     BASIC
PLAN OVERRIDES. The Employer elects or does not elect to override various
basic plan provisions as follows (Choose (a)
or choose one or more of (b) through (i) as applicable):

[Note: If the Employer elects 54(a), do not complete
the balance of this Election 54.]

	
  

 	
  

 	
  

 
	
 (a)

 	
 [  ]

 	
 Not applicable. The Employer does not elect
 to override any basic plan provisions. 

 

[Note: The Employer at the time of restating its Plan
with this Adoption Agreement may make an election on Appendix A (Election
53(r)) to specify a special Effective Date for any override provision the
Employer elects in this Election 54. If the Employer, after it has executed
this Adoption Agreement, later amends its Plan to change any election on this
Appendix B, the Employer should document the Effective Date of the Appendix B
amendment on the Execution Page or otherwise in the amendment.] 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 [X]

 	
 Definition (Article I) overrides. (Choose one or more of (1) through (9) as
 applicable): 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 W-2 Compensation exclusion of paid/reimbursed moving expenses
 (1.11(B)(1)). W-2 Compensation excludes amounts paid
 or reimbursed by the Employer for moving expenses incurred by an Employee,
 but only to the extent that, at the time of payment, it is reasonable to
 believe that the Employee may deduct these amounts under Code §217.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 Alternative (general) 415 Compensation (1.11(B)(4)).
 The Employer elects to apply the alternative (general) 415 definition of
 Compensation in lieu of simplified 415 Compensation. As to amounts received
 from an unfunded nonqualified deferred compensation plan which is includible
 in gross income in the taxable year of receipt (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Include. Include the nonqualified deferred
 compensation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Do not include. Do not include the
 nonqualified deferred compensation. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
  [X]

 	
 Inclusion of Deemed 125 Compensation (1.11(C)).
 Compensation under Section 1.11 includes Deemed 125 Compensation. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 [  ]

 	
 Inclusion of Post-Severance Compensation (1.11(I) and 4.05(C)(1)).
 The Plan includes Post-Severance Compensation within the meaning of Prop.
 Treas. Reg. §1.415(c)-2(e) as described in Sections 1.11(I) and 4.05(C)(1) as
 follows (Choose one or both of a. and b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Include for 415 testing. Include for 415
 testing and for other testing which uses 415 Compensation. This provision
 applies effective as of
 _______________ (specify a date
 which is no earlier than January 1, 2005).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Include for allocations. Include for
 allocations as follows (specify
 affected Contribution Type(s) and any
 adjustments to Post-Severance Compensation used for allocation): _____________________________.
This provision applies effective as of
 ______________ (specify a date which is no
 earlier than January 1, 2002).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 [  ]

 	
 Inclusion of Deemed Disability Compensation (1.11(K)).
 Include Deemed Disability Compensation. (Choose
 one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 NHCEs only. Apply only to disabled NHCEs.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 All Participants. Apply to all disabled
 Participants. The Employer will make Employer Contributions for such disabled
 Participants for: ______________________________ (specify a fixed or determinable period).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 [  ]

 	
 Early application of final 401(k) regulations (1.28).
 The Employer (consistent with the Plan Administrator’s operation of the Plan)
 elects to apply the final 401(k) regulations before the beginning of the 2006
 Plan Year. The Employer elects to apply the regulations effective as of:
 ____________________________ (specify Plan
 Year ending after December 29, 2004, e.g., Plan Year ending December 31, 2004
 OR Plan Year beginning January 1, 2005).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 [X]

 	
 Leased Employees (1.21(B)). The Employer for
 purposes of the following Contribution Types, does not exclude Leased
 Employees: All Contributions (specify
 Contribution Types). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 [  ]

 	
 Offset if contributions to leasing organization plan (1.21(B)(2)).
 The Employer will reduce allocations to this Plan for any Leased Employee to
 the extent that the leasing organization contributes to or provides benefits
 under a leasing organization plan to or for the Leased Employee and which are
 attributable to the Leased Employee’s services for the Employer. The amount of
 the offset is as follows: ___________________________.

 

[Note: The election of an offset under this Election
54(b)(8) requires that the Employer aggregate its plan with the leasing
organization’s plan for coverage and nondiscrimination testing.] 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 [  ]

 	
 Reclassified Employees (1.21(D)(3)). The
 Employer for purposes of the following Contribution Types, does not exclude
 Reclassified Employees (or the following categories of Reclassified
 Employees): __________________________ (specify
 Contribution Types and/or categories of Reclassified Employees). 

 

© 2008
Prudential

1

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
 [  ]

 	
 Rule of parity – participation (Article II) override (2.03(D)).
 For purposes of Plan participation, the Plan applies the “rule of parity”
 under Code §410(a)(5)(D).

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
 [  ]

 	
 Contribution/allocation (Article III) overrides.
 (Choose one or more of (1) through (7) as
 applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 Treatment of Automatic Deferrals as Roth Deferrals (3.02(B)(7)).
 The Employer elects to treat Automatic Deferrals as Roth Deferrals in lieu of
 treating Automatic Deferrals as Pre-Tax Deferrals.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 Application of Safe Harbor Contributions to other allocations
 (3.05(E)(11)). Any Safe Harbor Nonelective
 Contributions allocated to a Participant’s account will not be applied toward (offset) any
 allocation to the Participant of a non-Safe Harbor Nonelective Contribution.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 [  ]

 	
 Short Plan Year or allocation period (3.06(B)(1)(c)).
 The Plan Administrator (Choose one of a.
 or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 No pro-ration. Will not pro-rate Hours of Service in any
 short allocation period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Pro-ration based on months. Will pro-rate
 any Hour of Service requirement based on the number of months in the short
 allocation period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 [  ]

 	
 Limited waiver of allocation conditions for re-hired Participants
 (3.06(G)). The allocation conditions the Employer
 has elected in the Adoption Agreement do not apply to re-hired Participants
 in the Plan Year they resume participation, as described in Section 3.06(G).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 [  ]

 	
 Associated Match forfeiture timing (3.07(A)(1)(c)).
 Forfeiture of associated matching contributions occurs in the Testing Year. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 [  ]

 	
 Safe Harbor top-heavy exempt fail-safe (3.07(A)(4)).
 In lieu of ordering forfeitures as (a), (b), (c), and (d) under Section
 3.07(A)(4), the Employer establishes the following forfeiture ordering rules (Specify the ordering rules, for example, (d), (a),
 (b), and (c)): _____________.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 [  ]

 	
 Suspension (3.06(F)(3)). The Plan
 Administrator in applying Section 3.06(F) will (Choose one or more of a., b., and c. as applicable):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Re-order tiers. Apply the suspension tiers
 in Section 3.06(F)(2) in the following order: _____________________ (specify order).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Hours of Service tie-breaker. Apply the
 greatest Hours of Service as the tie-breaker within a suspension tier in lieu
 of applying the lowest Compensation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
 [  ]

 	
 Additional/other tiers. Apply the following
 additional or other tiers: __________________ (specify suspension tiers and ordering).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
 [  ]

 	
 Testing (Article IV) overrides. (Choose one or both of (1) and (2) as applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 Early application of Gap Period income to Excess Deferrals
 (4.11(C)(1)). The Plan Administrator will distribute
 Gap Period income allocated on Excess Deferrals as to Excess Deferrals
 occurring in the ________ Taxable Year and in later Taxable Years (Specify a Taxable Year before 2008).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 Early application of Gap Period income to Excess
 Contributions/Aggregates (4.11(C)(2)). The Plan
 Administrator will distribute Gap Period income allocated on Excess
 Contributions and Excess Aggregate Contributions occurring in the ________ Plan Year
 and in later Plan Years (Specify a Plan
 Year before the Final 401(k) Regulations Effective Date).

 
	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
 [  ]

 	
 Vesting (Article V) overrides. (Choose one or more of (1) through (6) as
 applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 Application of top-heavy vesting to Matching (5.03(A)(1)).
 The Employer makes the following elections regarding the application of
 top-heavy vesting to its Regular Matching and Additional Matching
 Contributions (Choose one or both of a.
 and b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Post-EGTRRA Matching only. Apply top-heavy
 vesting only to such post-2001 Plan Year Matching Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Waiver of Hour of Service requirement. Apply
 top-heavy vesting as under the basic plan or as modified by Election
 54(f)(1)a. to all Participants even if they did not have an Hour of Service
 in any post-2001 Plan Year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 Alternative “grossed-up” vesting formula (5.03(C)(2)).
 The Employer elects the alternative vesting formula described in Section
 5.03(C)(2).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 [  ]

 	
 a. Source of Cash-Out forfeiture restoration (5.04(B)(5)).
 To restore a Participant’s Account Balance as described in Section
 5.04(B)(5), the Plan Administrator, to the extent necessary, will allocate
 from the following source(s) and in the following order (Specify, in order, one or more of the following:
 Forfeitures, Earnings, and/or Employer Contribution):
 ____________________________________. 

 

© 2008
Prudential

2

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 [  ]

 	
 b. Forfeiture Restoration and Conditions for Restoration (5.04(B).
 The Plan Administrator will restore a re-employed Participant’s Account
 Balance under this Section 5.04(B) without requiring repayment by the
 Participant of the entire amount of the Cash-Out Distribution to the Trust.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 [  ]

 	
 Deemed Cash-Out of 0% Vested Participant (5.04(C)).
 The deemed cash-out rule of Section 5.04(C) does not apply to the Plan.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 [  ]

 	
 Accounting for Cash-Out repayment; Contribution Type (5.04(D)(2)).
 In lieu of the accounting described in Section 5.04(D)(2), the Plan
 Administrator will account for a Participant’s Account Balance attributable
 to a Cash-Out repayment: (Choose one of a.
 or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Nonelective rule. Under the nonelective
 rule.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Rollover rule. Under the rollover rule. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 [  ]

 	
 One-year hold-out rule – vesting (5.06(D)).
 The one-year hold-out Break in Service rule under Code §411(a)(6)(B) applies.

 
	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
 [  ]

 	
 Distribution (Article VI) overrides. (Choose one or more of (1) through (7) as
 applicable):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 Election of 5-year rule (6.02(B)(1)(e)).
 Under Section 6.02(B)(1)(e) relating to death before the RBD, if a Designated
 Beneficiary does not make a timely election, the 5-year rule applies in lieu
 of the Life Expectancy rule. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 2002 only special Effective Date for Section 6.02 (6.02(D)(4)).
 For the 2002 DCY only, the Plan Administrator will apply the RMD rules in
 effect under (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 1987 proposed regulations. The 1987 proposed
 Treasury regulations under Code §401(a)(9).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 2001 proposed regulations. The 2001 proposed
 Treasury regulations under Code §401(a)(9). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 [  ]

 	
 RBD definition (6.02(E)(7)(c)). In lieu of
 the RBD definition in Section 6.02(E)(7)(a) and (b), the Plan Administrator (Choose one
 of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 SBJPA definition indefinitely. Indefinitely
 will apply the pre-SBJPA RBD definition.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 SBJPA definition to specified date. Will
 apply the pre-SBJPA definition until (the
 stated date may not be earlier than January 1, 1997), and
 thereafter will apply the RBD definition in Section 6.02(E)(7)(a) and (b).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 [  ]

 	
 Modification of QJSA (6.04(A)(3)). The
 Survivor Annuity percentage will be ________ %. (Specify
 a percentage between 50% and 100%.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 [  ]

 	
 Modification of QPSA (6.04(B)(2)). The QPSA
 percentage will be ________ %. (Specify a percentage between 50% and 100%.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 [  ]

 	
 Restriction on hardship source; grandfathering (6.07(E)).
 The hardship distribution limit includes grandfathered amounts.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 [  ]

 	
 Replacement of $5,000 amount (6.09). All
 Plan references (except in Sections 3.02(D), 3.10 and 3.12(C)(2)) to “$5,000”
 will be $______. (Specify an amount less than $5,000.) 

 
	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
 [  ]

 	
 Administrative, Trust and insurance overrides (Articles VII, VIII and
 IX). (Choose one
 or more of (1) through (9) as applicable):

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 [  ]

 	
 Contributions prior to accrual or precise determination
 (7.04(B)(5)(b)). The Plan Administrator will
 allocate Earnings described in Section 7.04(B)(5)(b) as follows (Choose one of a., b., or c.):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Treat as contribution. Treat the Earnings as
 an Employer Matching or Nonelective Contribution and allocate accordingly.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Balance forward. Allocate the Earnings using
 the balance forward method described in Section 7.04(B)(4)(b).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
 [  ]

 	
 Weighted average. Allocate the Earnings on
 Matching Contributions using the weighted average method in a manner similar
 to the method described in Section 7.04(B)(4)(d).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 [  ]

 	
 Automatic revocation of spousal designation (7.05(A)(1)).
 The automatic revocation of a spousal Beneficiary designation in the case of
 divorce or legal separation does not apply.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 [  ]

 	
 Limitation on frequency of Beneficiary designation changes
 (7.05(A)(4)). Except in the case of a Participant
 incurring a major life event, a period of at least must elapse between
 Beneficiary designation changes. (Specify
 a period of time, e.g., 90 days OR 12 months.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 [  ]

 	
 Definition of “spouse” (7.05(A)(5)). The
 following definition of “spouse” applies: __________________________. (Specify a definition consistent with Applicable Law.) 

 

© 2008
Prudential 

3

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 [  ]

 	
 Administration of default provision; default Beneficiaries (7.05(C)).
 The following list of default Beneficiaries will apply:
 ____________________________________________. (Specify, in order, one or more Beneficiaries who will receive the
 interest of a deceased Participant.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 [  ]

 	
 Subsequent restoration of forfeiture-sources and ordering
 (7.07(A)(3)). Restoration of forfeitures will come
 from the following sources, in the following order
 ____________________________________________. (Specify, in order, one or more of the following: Forfeitures,
 Employer Contribution, Trust Fund Earnings.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 [  ]

 	
 State law (7.10(H)). The law of the
 following state will apply: ____________________________________________. (Specify one of the 50 states or the District of Columbia, or other
 appropriate legal jurisdiction, such as a territory of the United States or an
 Indian tribal government.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 [  ]

 	
 Employer securities/real property in Profit Sharing Plans/401(k)
 Plans (8.02(A)(13)(a)). The Plan limit on investment
 in qualifying Employer securities/real property is ________ %. (Specify a percentage which is less than 100%.)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 [  ]

 	
 Provisions relating to insurance and insurance company (9.08).
 The following provisions apply: ________________________ (Specify such language as necessary to accommodate
 life insurance Contracts the Plan holds.)

 

[Note: The provisions in this Election 54(h)(9) may
override provisions in Article IX of the Plan, but must be consistent with all
other provisions of the Plan and Applicable Law.]

	
  

 	
  

 	
  

 
	
 (i)

 	
 [  ]

 	
 Code Sections 415/416 (Article XI) override (11.02(A)(1)).
 Because of the required aggregation of multiple plans, to satisfy Code §§415
 and/or 416, the following overriding provisions apply: ______________________________________. (Specify such language as necessary to satisfy §§415 and 416.)
 

 

© 2008
Prudential 

4

Nonstandardized 401(k) Plan 

APPENDIX C

LIST OF GROUP TRUST FUNDS/PERMISSIBLE TRUST AMENDMENTS

55.  [  ]
INVESTMENT IN GROUP TRUST FUND (8.09).
The nondiscretionary Trustee, as directed or the discretionary Trustee acting
without direction (and in addition to the discretionary Trustee’s authority to
invest in its own funds under Section 8.02(A)(3)), may invest in any of the
following group trust funds: _____________________________________. (Specify the names of one or more group trust funds
in which the Plan can invest).

[Note: A discretionary or nondiscretionary Trustee
also may invest in any group trust fund authorized by an independent Named
Fiduciary.] 

56.   [  ] PERMISSIBLE TRUST AMENDMENTS (8.11). The Employer makes the following amendments to the Trust as permitted under
Rev. Proc. 2005-16, Section 5.09 (Choose one
or more of (a) through (c) as applicable): [Note: Any amendment under this Election 56 must not:
(i) conflict with any Plan provision unrelated to the Trust or Trustee; or (ii)
cause the Plan to violate Code §401(a). The amendment may override, add to,
delete or otherwise modify the Trust provisions. Do not use this Election 56 to
substitute another pre-approved trust for the Trust. See Election 5(c), 5(d),
and 5(e) as to a substitute trust.]  

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 [  ]

 	
 Investments. The Employer amends the Trust
 provisions relating to Trust investments as follows: 

 
	
  

 	
  

 	
  

 	
  

 	
 ______________________________________________________________________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 [  ]

 	
 Duties. The Employer amends the Trust
 provisions relating to Trustee (or Custodian) duties as follows: 

 
	
  

 	
  

 	
  

 	
  

 	
 ______________________________________________________________________________.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 [  ]

 	
 Other administrative provisions. The
 Employer amends the other administrative provisions of the Trust as follows: 

 
	
  

 	
  

 	
  

 	
  

 	
 ______________________________________________________________________________.

 

© 2008
Prudential 

1

Nonstandardized 401(k) Plan

APPENDIX D

TABLE I: ACTUARIAL FACTORS

UP-1984

Without Setback

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Number of years

from attained age

at the end of Plan Year until

Normal Retirement Age 

 	
  

 	
7.50% 

 	
  

 	
8.00% 

 	
  

 	
8.50% 

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 
	
 0

 	
  

 	
  

 	
  

 	
 8.458

 	
  

 	
  

 	
 8.196

 	
  

 	
  

 	
 7.949

 	
  

 
	
 1

 	
  

 	
  

 	
  

 	
 7.868

 	
  

 	
  

 	
 7.589

 	
  

 	
  

 	
 7.326

 	
  

 
	
 2

 	
  

 	
  

 	
  

 	
 7.319

 	
  

 	
  

 	
 7.027

 	
  

 	
  

 	
 6.752

 	
  

 
	
 3

 	
  

 	
  

 	
  

 	
 6.808

 	
  

 	
  

 	
 6.506

 	
  

 	
  

 	
 6.223

 	
  

 
	
 4

 	
  

 	
  

 	
  

 	
 6.333

 	
  

 	
  

 	
 6.024

 	
  

 	
  

 	
 5.736

 	
  

 
	
 5

 	
  

 	
  

 	
  

 	
 5.891

 	
  

 	
  

 	
 5.578

 	
  

 	
  

 	
 5.286

 	
  

 
	
 6

 	
  

 	
  

 	
  

 	
 5.480

 	
  

 	
  

 	
 5.165

 	
  

 	
  

 	
 4.872

 	
  

 
	
 7

 	
  

 	
  

 	
  

 	
 5.098

 	
  

 	
  

 	
 4.782

 	
  

 	
  

 	
 4.491

 	
  

 
	
 8

 	
  

 	
  

 	
  

 	
 4.742

 	
  

 	
  

 	
 4.428

 	
  

 	
  

 	
 4.139

 	
  

 
	
 9

 	
  

 	
  

 	
  

 	
 4.412

 	
  

 	
  

 	
 4.100

 	
  

 	
  

 	
 3.815

 	
  

 
	
 10

 	
  

 	
  

 	
  

 	
 4.104

 	
  

 	
  

 	
 3.796

 	
  

 	
  

 	
 3.516

 	
  

 
	
 11

 	
  

 	
  

 	
  

 	
 3.817

 	
  

 	
  

 	
 3.515

 	
  

 	
  

 	
 3.240

 	
  

 
	
 12

 	
  

 	
  

 	
  

 	
 3.551

 	
  

 	
  

 	
 3.255

 	
  

 	
  

 	
 2.986

 	
  

 
	
 13

 	
  

 	
  

 	
  

 	
 3.303

 	
  

 	
  

 	
 3.014

 	
  

 	
  

 	
 2.752

 	
  

 
	
 14

 	
  

 	
  

 	
  

 	
 3.073

 	
  

 	
  

 	
 2.790

 	
  

 	
  

 	
 2.537

 	
  

 
	
 15

 	
  

 	
  

 	
  

 	
 2.859

 	
  

 	
  

 	
 2.584

 	
  

 	
  

 	
 2.338

 	
  

 
	
 16

 	
  

 	
  

 	
  

 	
 2.659

 	
  

 	
  

 	
 2.392

 	
  

 	
  

 	
 2.155

 	
  

 
	
 17

 	
  

 	
  

 	
  

 	
 2.474

 	
  

 	
  

 	
 2.215

 	
  

 	
  

 	
 1.986

 	
  

 
	
 18

 	
  

 	
  

 	
  

 	
 2.301

 	
  

 	
  

 	
 2.051

 	
  

 	
  

 	
 1.831

 	
  

 
	
 19

 	
  

 	
  

 	
  

 	
 2.140

 	
  

 	
  

 	
 1.899

 	
  

 	
  

 	
 1.687

 	
  

 
	
 20

 	
  

 	
  

 	
  

 	
 1.991

 	
  

 	
  

 	
 1.758

 	
  

 	
  

 	
 1.555

 	
  

 
	
 21

 	
  

 	
  

 	
  

 	
 1.852

 	
  

 	
  

 	
 1.628

 	
  

 	
  

 	
 1.433

 	
  

 
	
 22

 	
  

 	
  

 	
  

 	
 1.723

 	
  

 	
  

 	
 1.508

 	
  

 	
  

 	
 1.321

 	
  

 
	
 23

 	
  

 	
  

 	
  

 	
 1.603

 	
  

 	
  

 	
 1.396

 	
  

 	
  

 	
 1.217

 	
  

 
	
 24

 	
  

 	
  

 	
  

 	
 1.491

 	
  

 	
  

 	
 1.293

 	
  

 	
  

 	
 1.122

 	
  

 
	
 25

 	
  

 	
  

 	
  

 	
 1.387

 	
  

 	
  

 	
 1.197

 	
  

 	
  

 	
 1.034

 	
  

 
	
 26

 	
  

 	
  

 	
  

 	
 1.290

 	
  

 	
  

 	
 1.108

 	
  

 	
  

 	
 0.953

 	
  

 
	
 27

 	
  

 	
  

 	
  

 	
 1.200

 	
  

 	
  

 	
 1.026

 	
  

 	
  

 	
 0.878

 	
  

 
	
 28

 	
  

 	
  

 	
  

 	
 1.116

 	
  

 	
  

 	
 0.950

 	
  

 	
  

 	
 0.810

 	
  

 
	
 29

 	
  

 	
  

 	
  

 	
 1.039

 	
  

 	
  

 	
 0.880

 	
  

 	
  

 	
 0.746

 	
  

 
	
 30

 	
  

 	
  

 	
  

 	
 0.966

 	
  

 	
  

 	
 0.814

 	
  

 	
  

 	
 0.688

 	
  

 
	
 31

 	
  

 	
  

 	
  

 	
 0.899

 	
  

 	
  

 	
 0.754

 	
  

 	
  

 	
 0.634

 	
  

 
	
 32

 	
  

 	
  

 	
  

 	
 0.836

 	
  

 	
  

 	
 0.698

 	
  

 	
  

 	
 0.584

 	
  

 
	
 33

 	
  

 	
  

 	
  

 	
 0.778

 	
  

 	
  

 	
 0.647

 	
  

 	
  

 	
 0.538

 	
  

 
	
 34

 	
  

 	
  

 	
  

 	
 0.723

 	
  

 	
  

 	
 0.599

 	
  

 	
  

 	
 0.496

 	
  

 
	
 35

 	
  

 	
  

 	
  

 	
 0.673

 	
  

 	
  

 	
 0.554

 	
  

 	
  

 	
 0.457

 	
  

 
	
 36

 	
  

 	
  

 	
  

 	
 0.626

 	
  

 	
  

 	
 0.513

 	
  

 	
  

 	
 0.422

 	
  

 
	
 37

 	
  

 	
  

 	
  

 	
 0.582

 	
  

 	
  

 	
 0.475

 	
  

 	
  

 	
 0.389

 	
  

 
	
 38

 	
  

 	
  

 	
  

 	
 0.542

 	
  

 	
  

 	
 0.440

 	
  

 	
  

 	
 0.358

 	
  

 
	
 39

 	
  

 	
  

 	
  

 	
 0.504

 	
  

 	
  

 	
 0.407

 	
  

 	
  

 	
 0.330

 	
  

 
	
 40

 	
  

 	
  

 	
  

 	
 0.469

 	
  

 	
  

 	
 0.377

 	
  

 	
  

 	
 0.304

 	
  

 
	
 41

 	
  

 	
  

 	
  

 	
 0.436

 	
  

 	
  

 	
 0.349

 	
  

 	
  

 	
 0.280

 	
  

 
	
 42

 	
  

 	
  

 	
  

 	
 0.406

 	
  

 	
  

 	
 0.323

 	
  

 	
  

 	
 0.258

 	
  

 
	
 43

 	
  

 	
  

 	
  

 	
 0.377

 	
  

 	
  

 	
 0.299

 	
  

 	
  

 	
 0.238

 	
  

 
	
 44

 	
  

 	
  

 	
  

 	
 0.351

 	
  

 	
  

 	
 0.277

 	
  

 	
  

 	
 0.219

 	
  

 
	
 45

 	
  

 	
  

 	
  

 	
 0.327

 	
  

 	
  

 	
 0.257

 	
  

 	
  

 	
 0.202

 	
  

 

Note:
A Participant’s Actuarial Factor under Table I is the factor corresponding to
the number of years until the Participant reaches his/her Normal Retirement Age
under the Plan. A Participant’s age as of the end of the current Plan Year is
his/her age on his/her last birthday. For any Plan Year beginning on or after
the Participant’s attainment of Normal Retirement Age, the factor for “zero”
years applies. 

© 2008
Prudential 

1

Nonstandardized 401(k) Plan 

APPENDIX D

TABLE II: ADJUSTMENT TO ACTUARIAL FACTORS FOR NORMAL RETIREMENT AGE

OTHER THAN 65

UP-1984

Without Setback

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Normal Retirement

Age 

 	
  

 	
7.50% 

 	
  

 	
8.00% 

 	
  

 	
8.50% 

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 
	
 55

 	
  

 	
  

 	
 1.2242

 	
  

 	
  

 	
 1.2147

 	
  

 	
  

 	
 1.2058

 	
  

 
	
 56

 	
  

 	
  

 	
 1.2043

 	
  

 	
  

 	
 1.1959

 	
  

 	
  

 	
 1.1879

 	
  

 
	
 57

 	
  

 	
  

 	
 1.1838

 	
  

 	
  

 	
 1.1764

 	
  

 	
  

 	
 1.1694

 	
  

 
	
 58

 	
  

 	
  

 	
 1.1627

 	
  

 	
  

 	
 1.1563

 	
  

 	
  

 	
 1.1503

 	
  

 
	
 59

 	
  

 	
  

 	
 1.1411

 	
  

 	
  

 	
 1.1357

 	
  

 	
  

 	
 1.1305

 	
  

 
	
 60

 	
  

 	
  

 	
 1.1188

 	
  

 	
  

 	
 1.1144

 	
  

 	
  

 	
 1.1101

 	
  

 
	
 61

 	
  

 	
  

 	
 1.0960

 	
  

 	
  

 	
 1.0925

 	
  

 	
  

 	
 1.0891

 	
  

 
	
 62

 	
  

 	
  

 	
 1.0726

 	
  

 	
  

 	
 1.0700

 	
  

 	
  

 	
 1.0676

 	
  

 
	
 63

 	
  

 	
  

 	
 1.0488

 	
  

 	
  

 	
 1.0471

 	
  

 	
  

 	
 1.0455

 	
  

 
	
 64

 	
  

 	
  

 	
 1.0246

 	
  

 	
  

 	
 1.0237

 	
  

 	
  

 	
 1.0229

 	
  

 
	
 65

 	
  

 	
  

 	
 1.0000

 	
  

 	
  

 	
 1.0000

 	
  

 	
  

 	
 1.0000

 	
  

 
	
 66

 	
  

 	
  

 	
 0.9752

 	
  

 	
  

 	
 0.9760

 	
  

 	
  

 	
 0.9767

 	
  

 
	
 67

 	
  

 	
  

 	
 0.9502

 	
  

 	
  

 	
 0.9518

 	
  

 	
  

 	
 0.9533

 	
  

 
	
 68

 	
  

 	
  

 	
 0.9251

 	
  

 	
  

 	
 0.9274

 	
  

 	
  

 	
 0.9296

 	
  

 
	
 69

 	
  

 	
  

 	
 0.8998

 	
  

 	
  

 	
 0.9027

 	
  

 	
  

 	
 0.9055

 	
  

 
	
 70

 	
  

 	
  

 	
 0.8740

 	
  

 	
  

 	
 0.8776

 	
  

 	
  

 	
 0.8810

 	
  

 
	
 71

 	
  

 	
  

 	
 0.8478

 	
  

 	
  

 	
 0.8520

 	
  

 	
  

 	
 0.8561

 	
  

 
	
 72

 	
  

 	
  

 	
 0.8214

 	
  

 	
  

 	
 0.8261

 	
  

 	
  

 	
 0.8307

 	
  

 
	
 73

 	
  

 	
  

 	
 0.7946

 	
  

 	
  

 	
 0.7999

 	
  

 	
  

 	
 0.8049

 	
  

 
	
 74

 	
  

 	
  

 	
 0.7678

 	
  

 	
  

 	
 0.7735

 	
  

 	
  

 	
 0.7790

 	
  

 
	
 75

 	
  

 	
  

 	
 0.7409

 	
  

 	
  

 	
 0.7470

 	
  

 	
  

 	
 0.7529

 	
  

 
	
 76

 	
  

 	
  

 	
 0.7140

 	
  

 	
  

 	
 0.7205

 	
  

 	
  

 	
 0.7268

 	
  

 
	
 77

 	
  

 	
  

 	
 0.6874

 	
  

 	
  

 	
 0.6942

 	
  

 	
  

 	
 0.7008

 	
  

 
	
 78

 	
  

 	
  

 	
 0.6611

 	
  

 	
  

 	
 0.6682

 	
  

 	
  

 	
 0.6751

 	
  

 
	
 79

 	
  

 	
  

 	
 0.6349

 	
  

 	
  

 	
 0.6423

 	
  

 	
  

 	
 0.6494

 	
  

 
	
 80

 	
  

 	
  

 	
 0.6090

 	
  

 	
  

 	
 0.6165

 	
  

 	
  

 	
 0.6238

 	
  

 

Note:
Use Table II only if the Normal Retirement Age for any Participant is not 65.
If a Participant’s Normal Retirement Age is not 65, adjust Table I by
multiplying all factors
applicable to that Participant in Table I by the appropriate Table II factor. 

© 2008
Prudential 

2

Nonstandardized 401(k) Plan 

AMENDMENT FOR THE FINAL 415 REGULATIONS

ARTICLE I

PREAMBLE

	
  

 	
  

 
	
 1.1

 	
 Effective date of Amendment. This Amendment
 is effective for limitation years and plan years beginning on or after July
 1, 2007, except as otherwise provided herein. 

 
	
  

 	
  

 
	
 1.2

 	
 Superseding of inconsistent provisions. This
 Amendment supersedes the provisions of the Plan to the extent those
 provisions are inconsistent with the provisions of this Amendment. 

 
	
  

 	
  

 
	
 1.3

 	
 Employer’s election. The Employer adopts all
 Articles of this Amendment, except those Articles that the Employer
 specifically elects not to adopt. 

 
	
  

 	
  

 
	
 1.4

 	
 Construction. Except as otherwise provided
 in this Amendment, any reference to “Section” in this Amendment refers only
 to sections within this Amendment, and is not a reference to the Plan. The
 Article and Section numbering in this Amendment is solely for purposes of
 this Amendment, and does not relate to any Plan article, section or other
 numbering designations. 

 
	
  

 	
  

 
	
 1.5

 	
 Effect of restatement of Plan. If the
 Employer restates the Plan, then this Amendment shall remain in effect after
 such restatement unless the provisions in this Amendment are restated or
 otherwise become obsolete (e.g., if the Plan is restated onto a plan document
 which incorporates the final Code §415 Regulation provisions). 

 
	
  

 	
  

 
	
 1.6

 	
 Adoption by prototype sponsor. Except as
 otherwise provided herein, pursuant to the provisions of the Plan and Section
 5.01 of Revenue Procedure 2005-16, the sponsor hereby adopts this Amendment
 on behalf of all adopting employers. 

 

ARTICLE II

EMPLOYER ELECTIONS

The Employer
only needs to complete the questions in Section 2.2 in order to override the
default provisions set forth below. If the Plan will use all of the default provisions,
then these questions should be skipped and the Employer does not need to
execute this amendment. 

	
  

 	
  

 	
  

 
	
 2.1

 	
 Default
 Provisions. Unless the Employer elects otherwise in Section 2.2, the
 following defaults will apply: 

 
	
  

 	
  

 
	
  

 	
 a.

 	
 The
 provisions of the Plan setting forth the definition of compensation for
 purposes of Code §415 (hereinafter referred to as “415 Compensation”), as
 well as compensation for purposes of determining highly compensated employees
 pursuant to Code §414(q) and for top-heavy purposes under Code §416
 (including the determination of key employees), shall be modified by (1)
 including payments for unused sick, vacation or other leave and payments from
 nonqualified unfunded deferred compensation plans (Amendment Section 3.2(b)),
 (2) excluding salary continuation payments for participants on military
 service (Amendment Section 3.2(c)), and (3) excluding salary continuation
 payments for disabled participants (Amendment Section 3.2(d)). 

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 The “first
 few weeks rule” does not apply for purposes of 415 Compensation (Amendment
 Section 3.3). 

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 The
 provision of the Plan setting forth the definition of compensation for
 allocation purposes (hereinafter referred to as “Plan Compensation”) shall be
 modified to provide for the same adjustments to Plan Compensation (for all
 contribution types) that are made to 415 Compensation pursuant to this
 Amendment. 

 
	
  

 	
  

 	
  

 
	
 2.2

 	
 In lieu of
default provisions. In lieu of the default provisions above, the following
apply: (select all that apply; if no selections are made, then the defaults
apply)  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 415 Compensation. (select all that apply):

 
	
  

 	
 a.

 	
 [  ]

 	
 Exclude
 leave cashouts and deferred compensation (Section 3.2(b))

 
	
  

 	
 b.

 	
 [  ]

 	
 Include
 military continuation payments (Section 3.2(c))

 
	
  

 	
 c.

 	
 [  ]

 	
 Include
 disability continuation payments (Section 3.2(d)):

 
	
  

 	
  

 	
  

 	
 1.

 	
 [  ]

 	
 For
 Nonhighly Compensated Employees only 

 
	
  

 	
  

 	
  

 	
 2.

 	
 [  ]

 	
 For all
 participants and the salary continuation will continue for the following
 fixed or determinable period: __________________________

 
	
  

 	
 d.

 	
 [  ]

 	
 Apply the
 administrative delay (“first few weeks”) rule (Section 3.3)

 

© 2008
Prudential 

1

Nonstandardized 401(k) Plan 

	
  

 	
  

 
	
  

 	
 Plan Compensation. (select all that apply): 

 
	
  

 	
  

 
	
  

 	
 NOTE: Elective Deferrals includes Pre-Tax
 Deferrals, Roth Deferrals and Employee Contributions, Matching includes all
 Matching Contributions and Nonelective includes all Nonelective
 Contributions. For all Plans other than 401(k) plans, only use column 1. or
 column 4. in the table below. 

 
	
  

 	
  

 
	
  

 	
 NOTE: Under the GUST PPD document, the plan
 excludes all post-severance compensation unless the Employer had elected
 otherwise in its adoption agreement. 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 All

 	
  

 	
 Elective

 Deferrals

 	
 Matching

 	
 Nonelective

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 e.

 	
 [  ]

 	
 Default
 provisions apply

 	
  

 	
 1. N/A

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 f.

 	
 [  ]

 	
 No change
 from existing Plan provisions

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 g.

 	
 [  ]

 	
 Exclude all
 post-severance compensation

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 h.

 	
 [  ]

 	
 Exclude
 post-severance regular pay

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 i.

 	
 [  ]

 	
 Exclude
 leave cashouts and deferred compensation

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 j.

 	
 [  ]

 	
 Include
 post-severance military continuation payments

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 k.

 	
 [  ]

 	
 Include
 post-severance disability continuation payments:

 	
  

 	
 1. [  ]

 	
 OR

 	
 2. [  ]

 	
 3. [  ]

 	
 4. [  ]

 
	
  

 	
 a.

 	
 [  ]

 	
 For Nonhighly
 Compensated Employees only

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 [  ]

 	
 For all
 participants and the salary continuation will continue for the following
 fixed or determinable period: _____________

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
 l.

 	
 [  ] 

 	
 Other
 ___________________________________ (describe) 

 

Plan Compensation Special Effective Date.
The definition of Plan Compensation is modified as set forth herein effective
as of the same date as the 415 Compensation change is effective unless
otherwise specified:

m. __________________________________________ (enter the
effective date) 

ARTICLE III

FINAL SECTION 415 REGULATIONS

	
  

 	
  

 	
  

 	
  

 
	
 3.1

 	
 Effective date. The provisions of this
 Article III shall apply to limitation years beginning on and after July 1,
 2007. 

 
	
  

 	
  

 
	
 3.2

 	
 415 Compensation paid after severance from employment.
 415 Compensation shall be adjusted, as set forth herein and as otherwise
 elected in Article II, for the following types of compensation paid after a
 Participant’s severance from employment with the Employer maintaining the
 Plan (or any other entity that is treated as the Employer pursuant to Code
 §414(b), (c), (m) or (o)). However, amounts described in subsections (a) and
 (b) below may only be included in 415 Compensation to the extent such amounts
 are paid by the later of 2 1/2 months after severance from employment or by the
 end of the limitation year that includes the date of such severance from
 employment. Any other payment of compensation paid after severance of
 employment that is not described in the following types of compensation is
 not considered 415 Compensation within the meaning of Code §415(c)(3), even
 if payment is made within the time period specified above. 

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Regular pay. 415 Compensation shall include
 regular pay after severance of employment if: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (1)

 	
 The payment
 is regular compensation for services during the participant’s regular working
 hours, or compensation for services outside the participant’s regular working
 hours (such as overtime or shift differential), commissions, bonuses, or
 other similar payments; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (2)

 	
 The payment
 would have been paid to the participant prior to a severance from employment
 if the participant had continued in employment with the Employer. 

 

© 2008
Prudential 

2

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Leave cashouts and deferred compensation.
 Leave cashouts shall be included in 415 Compensation, unless otherwise
 elected in Section 2.2 of this Amendment, if those amounts would have been
 included in the definition of 415 Compensation if they were paid prior to the
 participant’s severance from employment, and the amounts are payment for
 unused accrued bona fide sick, vacation, or other leave, but only if the
 participant would have been able to use the leave if employment had
 continued. In addition, deferred compensation shall be included in 415
 Compensation, unless otherwise elected in Section 2.2 of this Amendment, if
 the compensation would have been included in the definition of 415
 Compensation if it had been paid prior to the participant’s severance from
 employment, and the compensation is received pursuant to a nonqualified
 unfunded deferred compensation plan, but only if the payment would have been
 paid at the same time if the participant had continued in employment with the
 Employer and only to the extent that the payment is includible in the
 participant’s gross income. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Salary continuation payments for military service participants.
 415 Compensation does not include, unless otherwise elected in Section 2.2 of
 this Amendment, payments to an individual who does not currently perform
 services for the Employer by reason of qualified military service (as that
 term is used in Code §414(u)(1)) to the extent those payments do not exceed
 the amounts the individual would have received if the individual had
 continued to perform services for the Employer rather than entering qualified
 military service. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Salary continuation payments for disabled Participants.
 Unless otherwise elected in Section 2.2 of this Amendment, 415 Compensation
 does not include compensation paid to a participant who is permanently and
 totally disabled (as defined in Code §22(e)(3)). If elected, this provision
 shall apply to either just non-highly compensated participants or to all
 participants for the period specified in Section 2.2 of this Amendment. 

 
	
  

 	
  

 	
  

 
	
 3.3

 	
 Administrative delay (“the first few weeks”) rule.
 415 Compensation for a limitation year shall not include, unless otherwise
 elected in Section 2.2 of this Amendment, amounts earned but not paid during
 the limitation year solely because of the timing of pay periods and pay dates.
 However, if elected in Section 2.2 of this Amendment, 415 Compensation for a
 limitation year shall include amounts earned but not paid during the
 limitation year solely because of the timing of pay periods and pay dates,
 provided the amounts are paid during the first few weeks of the next
 limitation year, the amounts are included on a uniform and consistent basis
 with respect to all similarly situated participants, and no compensation is
 included in more than one limitation year. 

 
	
  

 	
  

 
	
 3.4

 	
 Inclusion of certain nonqualified deferred compensation amounts.
 If the Plan’s definition of Compensation for purposes of Code §415 is the
 definition in Regulation Section 1.415(c)-2(b) (Regulation Section
 1.415-2(d)(2) under the Regulations in effect for limitation years beginning
 prior to July 1, 2007) and the simplified compensation definition of
 Regulation 1.415(c)-2(d)(2) (Regulation Section 1.415-2(d)(10) under the
 Regulations in effect for limitation years prior to July 1, 2007) is not
 used, then 415 Compensation shall include amounts that are includible in the
 gross income of a Participant under the rules of Code §409A or Code
 §457(f)(1)(A) or because the amounts are constructively received by the
 Participant. [Note if the Plan’s definition of Compensation is W-2 wages or
 wages for withholding purposes, then these amounts are already included in
 Compensation.] 

 
	
  

 	
  

 
	
 3.5

 	
 Definition of annual additions. The Plan’s
 definition of “annual additions” is modified as follows: 

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Restorative payments. Annual additions for
 purposes of Code §415 shall not include restorative payments. A restorative
 payment is a payment made to restore losses to a Plan resulting from actions
 by a fiduciary for which there is reasonable risk of liability for breach of
 a fiduciary duty under ERISA or under other applicable federal or state law,
 where participants who are similarly situated are treated similarly with
 respect to the payments. Generally, payments are restorative payments only if
 the payments are made in order to restore some or all of the plan’s losses
 due to an action (or a failure to act) that creates a reasonable risk of
 liability for such a breach of fiduciary duty (other than a breach of
 fiduciary duty arising from failure to remit contributions to the Plan). This
 includes payments to a plan made pursuant to a Department of Labor order, the
 Department of Labor’s Voluntary Fiduciary Correction Program, or a
 court-approved settlement, to restore losses to a qualified defined
 contribution plan on account of the breach of fiduciary duty (other than a
 breach of fiduciary duty arising from failure to remit contributions to the
 Plan). Payments made to the Plan to make up for losses due merely to market
 fluctuations and other payments that are not made on account of a reasonable risk
 of liability for breach of a fiduciary duty under ERISA are not restorative
 payments and generally constitute contributions that are considered annual
 additions. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Other Amounts. Annual additions for purposes
 of Code §415 shall not include: (1) The direct transfer of a benefit or
 employee contributions from a qualified plan to this Plan; (2) Rollover
 contributions (as described in Code §§401(a)(31), 402(c)(1), 403(a)(4),
 403(b)(8), 408(d)(3), and 457(e)(16)); (3) Repayments of loans made to a participant
 from the Plan; and (4) Repayments of amounts described in Code §411(a)(7)(B)
 (in accordance with Code §411(a)(7)(C)) and Code §411(a)(3)(D) or repayment
 of contributions to a governmental plan (as defined in Code §414(d)) as
 described in Code §415(k)(3), as well as Employer restorations of benefits
 that are required pursuant to such repayments. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Date of tax-exempt Employer contributions.
 Notwithstanding anything in the Plan to the contrary, in the case of an
 Employer that is exempt from Federal income tax (including a governmental
 employer), Employer contributions are treated as credited to a participant’s
 account for a particular limitation year only if the contributions are
 actually made to the plan no later than the 15th day of the tenth calendar
 month following the end of the calendar year or fiscal year (as applicable,
 depending on the basis on which the employer keeps its books) with or within
 which the particular limitation year ends. 

 

© 2008
Prudential 

3

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 
	
 3.6

 	
 Change of limitation year. The limitation
 year may only be changed by a Plan amendment. Furthermore, if the Plan is
 terminated effective as of a date other than the last day of the Plan’s
 limitation year, then the Plan is treated as if the Plan had been amended to
 change its limitation year. 

 
	
  

 	
  

 
	
 3.7

 	
 Excess Annual Additions. Notwithstanding any
 provision of the Plan to the contrary, if the annual additions (within the
 meaning of Code §415) are exceeded for any participant, then the Plan may only
 correct such excess in accordance with the Employee Plans Compliance
 Resolution System (EPCRS) as set forth in Revenue Procedure 2006-27 or any
 superseding guidance, including, but not limited to, the preamble of the
 final §415 regulations. 

 
	
  

 	
  

 
	
 3.8

 	
 Aggregation and Disaggregation of Plans. 

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 For purposes
 of applying the limitations of Code §415, all defined contribution plans
 (without regard to whether a plan has been terminated) ever maintained by the
 Employer (or a “predecessor employer”) under which the participant receives
 annual additions are treated as one defined contribution plan. The “Employer”
 means the Employer that adopts this Plan and all members of a controlled
 group or an affiliated service group that includes the Employer (within the
 meaning of Code §§414(b), (c), (m) or (o)), except that for purposes of this
 Section, the determination shall be made by applying Code §415(h), and shall
 take into account tax-exempt organizations under Regulation Section
 1.414(c)-5, as modified by Regulation Section 1.415(a)-1(f)(1). For purposes
 of this Section: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (1)

 	
 A former
 Employer is a “predecessor employer” with respect to a participant in a plan
 maintained by an Employer if the Employer maintains a plan under which the
 participant had accrued a benefit while performing services for the former
 Employer, but only if that benefit is provided under the plan maintained by
 the Employer. For this purpose, the formerly affiliated plan rules in
 Regulation Section 1.415(f)-1(b)(2) apply as if the Employer and predecessor
 Employer constituted a single employer under the rules described in
 Regulation Section 1.415(a)-1(f)(1) and (2) immediately prior to the
 cessation of affiliation (and as if they constituted two, unrelated employers
 under the rules described in Regulation Section 1.415(a)-1(f)(1) and (2)
 immediately after the cessation of affiliation) and cessation of affiliation
 was the event that gives rise to the predecessor employer relationship, such
 as a transfer of benefits or plan sponsorship. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (2)

 	
 With respect
 to an Employer of a participant, a former entity that antedates the Employer
 is a “predecessor employer” with respect to the participant if, under the
 facts and circumstances, the Employer constitutes a continuation of all or a
 portion of the trade or business of the former entity. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Break-up of an affiliate employer or an affiliated service group.
 For purposes of aggregating plans for Code §415, a “formerly affiliated plan”
 of an employer is taken into account for purposes of applying the Code §415
 limitations to the employer, but the formerly affiliated plan is treated as
 if it had terminated immediately prior to the “cessation of affiliation.” For
 purposes of this paragraph, a “formerly affiliated plan” of an employer is a
 plan that, immediately prior to the cessation of affiliation, was actually
 maintained by one or more of the entities that constitute the employer (as
 determined under the employer affiliation rules described in Regulation
 Section 1.415(a)-1(f)(1) and (2)), and immediately after the cessation of
 affiliation, is not actually maintained by any of the entities that
 constitute the employer (as determined under the employer affiliation rules
 described in Regulation Section 1.415(a)-1(f)(1) and (2)). For purposes of
 this paragraph, a “cessation of affiliation” means the event that causes an
 entity to no longer be aggregated with one or more other entities as a single
 employer under the employer affiliation rules described in Regulation Section
 1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a
 controlled group), or that causes a plan to not actually be maintained by any
 of the entities that constitute the employer under the employer affiliation
 rules of Regulation Section 1.415(a)-1(f)(1) and (2) (such as a transfer of
 plan sponsorship outside of a controlled group). 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Midyear Aggregation. Two or more defined
 contribution plans that are not required to be aggregated pursuant to Code
 §415(f) and the Regulations thereunder as of the first day of a limitation
 year do not fail to satisfy the requirements of Code §415 with respect to a
 participant for the limitation year merely because they are aggregated later
 in that limitation year, provided that no annual additions are credited to
 the participant’s account after the date on which the plans are required to
 be aggregated. 

 

ARTICLE IV

PLAN COMPENSATION

	
  

 	
  

 
	
 4.1

 	
 Compensation limit. Notwithstanding
 Amendment Section 4.2 or any election in Amendment Section 2.2, if the Plan
 is a 401(k) plan, then participants may not make elective deferrals with
 respect to amounts that are not 415 Compensation. However, for this purpose,
 415 Compensation is not limited to the annual compensation limit of Code
 §401(a)(17). 

 
	
  

 	
  

 
	
 4.2

 	
 Compensation paid after severance from employment.
 Compensation for purposes of allocations (hereinafter referred to as Plan
 Compensation) shall be adjusted, unless otherwise elected in Amendment
 Section 2.2, in the same manner as 415 Compensation pursuant to Article III
 of this Amendment if those amounts would have been included in Compensation
 if they were paid prior to the Participant’s severance from employment,
 except in applying Article III, the term “limitation year” shall be replaced
 with the term “plan year” and the term “415 Compensation” shall be replaced
 with the term “Plan Compensation.” 

 

© 2008
Prudential 

4

Nonstandardized 401(k) Plan 

	
  

 	
  

 
	
 4.3

 	
 Option to apply Plan Compensation provisions early.
 The provisions of this Article shall apply for Plan Years beginning on and
 after July 1, 2007, unless another effective date is specified in Section 2.2
 of this Amendment. 

 

Except with
respect to any election made by the employer in Section 2.2, this amendment is
hereby adopted by the prototype sponsor on behalf of all adopting employers on:

__________________________________________________________
(signature and date)

Sponsor Name: The
Prudential Insurance Company of America (PICA) 

NOTE: The Employer only needs to execute this
Amendment if an election has been made in Section 2.2 of this Amendment.

This amendment
has been executed this _________________ day of ______________________________,
________.

Name of Plan: State
Bank of Long Island 401(k) Retirement Plan and Trust

Name of
Employer: State Bank of Long Island

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
           EMPLOYER

 	
  

 

© 2008
Prudential 

5

Nonstandardized 401(k) Plan 

PRUDENTIAL ADOPTION AGREEMENT

ADMINISTRATIVE CHECKLIST

September 9, 2010

This Administrative Checklist (“AC”) is not
part of the Adoption Agreement or Plan but is for the use of the Plan Administrator
in administering the Plan. 

The AC reflects the Plan policies and
operation as of the date set forth above and may also reflect Plan policies and
operation pre-dating the specified date. 

	
  

 	
  

 	
  

 	
  

 
	
 AC1.
 PARTICIPANT DISTRIBUTION NOTIFICATION PERIOD (PPA Amendment). For any
 distribution notice issued in Plan Years beginning after December 31, 2006,
 any reference to the 180-day maximum notice period prior to distribution in
 applying the notice requirements of Code §§402(f) (the rollover notice),
 411(a)(11) (Participant’s consent to distribution), and 417 (notice under the
 joint and survivor annuity rules) will continue to be enforced
 administratively as a 90 day maximum notice period unless a different maximum
 notice period is specified below. (Choose
 (a) if a different maximum notice period will be applied administratively.):

 
	
  

 	
 (a)

 	
 [  ]

 	
 The Plan
 will administratively enforce a maximum notice period of __________ days
 (maximum notice period cannot exceed 180 days.) 

 
	
  

 	
  

 	
  

 	
  

 
	
 AC2. PLAN LOANS (7.06). The Plan permits or does not permit Participant Loans as
follows (Choose one of (a) or (b)): 

 
	
  

 	
 (a)

 	
 [  ]

 	
 Does not permit. 

 
	
  

 	
 (b)

 	
 [X]

 	
 Permitted pursuant to the Loan Policy. See
 SFC Election 72 to complete Loan Policy. 

 
	
  

 	
  

 	
  

 	
  

 
	
 AC3.
HARDSHIP DISTRIBUTION SUSPENSION PERIOD (6.07(A)(2)).
A Participant who receives a safe harbor hardship distribution may not make
Elective Deferrals or Employee Contributions to the Plan during the 6-month
period following the date of the hardship distribution, unless the Plan
Administrator elects in (b) below to require a longer period. (Choose one of (a) or (b)): 

 
	
  

 	
 (a)

 	
 [X]

 	
 The Plan
 will apply the 6-month suspension period as described in Section 6.07(A)(2)
 of the Plan.

 
	
  

 	
 (b)

 	
 [  ]

 	
 The Plan
 will modify the suspension period as described in Section 6.07(A)(2) of the
 Plan. A Participant who receives a safe harbor hardship distribution may not
 make Elective Deferrals or Employee Contributions to the Plan during the ______ -month (enter a number of months, not to
 exceed 12) period following the date of the Hardship Distribution.
 

 
	
  

 	
  

 	
  

 	
  

 
	
 AC4. SPOUSAL
 CONSENT FOR DISTRIBUTIONS (7.02(C)(2)).
 The following serves as the Plan’s administrative policy with regard to the
 requirement of spousal consent for distributions that are not otherwise
 subject to the Qualified Joint and Survivor Annuity requirements. (Choose one of (a) through (c) as applicable):

 
	
  

 	
 (a)

 	
 [  ]

 	
 Not
 Applicable. Plan is subject to the Qualified Joint and Survivor Annuity
 requirements outlined in the Plan thus all distributions exceeding the
 threshold identified in the Plan are subject to spousal consent.

 
	
  

 	
 (b)

 	
 [X]

 	
 Participants
 will not be required to obtain spousal consent for all distributions made
 from the Plan (unless the Participant chooses an annuity form of payment,
 which will require a distribution, and any subsequent distributions,
 exceeding the threshold identified in the Plan to be subject to spousal
 consent).

 
	
  

 	
 (c)

 	
 [  ]

 	
 Participants
 will be required to obtain spousal consent for all distributions made from
 the Plan exceeding the threshold identified in the Plan.

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 AC5. PARTICIPANT
 DIRECTION OF INVESTMENT (7.03(B)).
 The Plan permits Participant direction of investment or does not permit
 Participant direction of investment as to some or all Accounts as follows (Choose one of (a) or (b)):

 
	
  

 	
 (a)

 	
 [  ]

 	
 Does not permit. The Plan does not permit
 Participant direction of investment of any Account. 

 
	
  

 	
 (b)

 	
 [X]

 	
 Permitted as follows. The Plan permits
 Participant direction of investment. (Complete
 (1) through (4)):

 
	
  

 	
  

 	
  

 	
 (1)

 	
 Accounts affected. (Choose a. or choose one or more of b. through f.):

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [  ]

 	
 All Accounts.

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [X]

 	
 Elective Deferral Accounts (Pre-tax and Roth) and Employee
 Contributions.

 
	
  

 	
  

 	
  

 	
  

 	
 c.

 	
 [X]

 	
 All Nonelective Contribution Accounts.

 
	
  

 	
  

 	
  

 	
  

 	
 d.

 	
 [  ]

 	
 All Matching Contribution Accounts.

 
	
  

 	
  

 	
  

 	
  

 	
 e.

 	
 [X]

 	
 All Rollover Contribution and Transfer Accounts.

 
	
  

 	
  

 	
  

 	
  

 	
 f.

 	
 [  ]

 	
 Specify Accounts: ______________________________________________________

 
	
  

 	
  

 	
  

 	
 (2)

 	
 Restrictions on Participant direction (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [  ]

 	
 None. Provided the investment does not
 result in a prohibited transaction, give rise to UBTI, create administrative
 problems or violate the Plan terms or Applicable Law.

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [X]

 	
 Restrictions: Effective January 1, 2010,
Employer Matching Contributions are made in the form of Company Stock. 

 
	
  

 	
  

 	
  

 	
 (3)

 	
 ERISA §404(c). (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [X]

 	
 Applies.

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Does not apply.

 
	
  

 	
  

 	
  

 	
 (4)

 	
 QDIA (Qualified Default Investment Alternative).
 (Choose one of a. or b.):

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [X]

 	
 Applies. See SFC Election 110 for details.

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [  ]

 	
 Does not apply.

 

© 2010
Prudential 

1

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 AC6. SALARY
REDUCTION AGREEMENT ELECTIONS (1.54(C)). The Plan permits Salary Reduction
Elections in the following form(s) (Choose
(a) through (e) as applicable). 

 
	
  

 	
 (a)

 	
 [  ]

 	
 No
 restriction on method of a Participant’s salary reduction election

 
	
  

 	
 (b)

 	
 [  ]

 	
 In whole
 percentage increments

 
	
  

 	
 (c)

 	
 [  ]

 	
 In whole
 dollar increments

 
	
  

 	
 (d)

 	
 [  ]

 	
 In
 percentage increments except that catch-up salary reductions may be made in
 whole percentage increments or whole dollar increments

 
	
  

 	
 (e)

 	
 [X]

 	
 Other: (i)
with respect to salary reductions, the election must be made in whole
percentages and (ii) with respect to catchup contributions, the election must
be made in whole dollar increments.  

 
	
  

 	
  

 	
  

 	
  

 
	
 With respect
 to timing of Salary Reduction Election changes the Plan permits salary
 reduction election changes as indicated below (Choose (a) through (e) as applicable). 

 
	
  

 	
 (a)

 	
 [X]

 	
 Permitted at
 any time and will be effective as soon as administratively feasible

 
	
  

 	
 (b)

 	
 [  ]

 	
 Permitted
 only on the first day of each calendar month

 
	
  

 	
 (c)

 	
 [  ]

 	
 Permitted
 only on the first day of each calendar quarter

 
	
  

 	
 (d)

 	
 [  ]

 	
 Permitted
 only once every (choose one of 30/60/90) days 

 
	
  

 	
 (e)

 	
 [  ]

 	
 Other:
 ________________________________________________________________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 With respect
 to a Participant’s Salary Reduction Election for bonus payments, the
 following applies (Choose (a) or (b) as
 applicable).

 
	
  

 	
 (a)

 	
 [X]

 	
 A separate
 participant election is not permitted for bonuses. The same Salary Reduction
 Agreement election will apply to all Elective Deferral Compensation.

 
	
  

 	
 (b)

 	
 [  ]

 	
 A separate
 participant election will be __________ (permitted/required) for bonuses.
 Participants may make a separate election on the Salary Reduction Agreement
 form provided by the Employer which will apply only to bonus payments. If
 permitted is elected, the participant’s regular election will apply unless a
 separate election is made. If you select required, there will be no deferral
 from bonuses unless the participant makes a separate election for bonuses. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 AC7. ROLLOVER
 CONTRIBUTIONS (3.08). The
 Plan permits or does not permit Rollover Contributions as follows (Choose one of (a) or (b)):

 
	
  

 	
 (a)

 	
 [  ]

 	
 Does not
permit.  

 
	
  

 	
 (b)

 	
 [X]

 	
 Permits. Subject to approval by the Plan Administrator and as further described below (Complete (1) and (2)): 

 
	
  

 	
  

 	
  

 	
 (1)

 	
 Who may roll over. (Choose one of a. or b.): 

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [  ]

 	
 Participants
only. 

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [X]

 	
 Eligible
Employees or Participants. 

 
	
  

 	
  

 	
  

 	
 (2)

 	
 Sources/Types. The Plan will accept a Rollover Contribution (Choose
one of a. or b.): 

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 [  ]

 	
 All. From
any Eligible Retirement Plan and as to all Contribution Types eligible to be
rolled into this Plan. 

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 [X]

 	
 Limited. Only from the following types of Eligible Retirement Plans and/or as to the
following Contribution Types: 401(a) excluding After-Tax and Roth, 403(a),
403(b) Excluding After-Tax and Roth, 408(a), 408(b) and 457(b). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 AC8. PLAN
EXPENSES (7.04(C)). The Employer will pay or the Plan will be charged
with non-settlor Plan expenses as follows (Choose
one of (a) or (b)):  

 
	
  

 	
 (a)

 	
 [  ]

 	
 Employer pays all expenses except those intrinsic to Trust assets
 which the Plan will pay (e.g., brokerage commissions). 

 
	
  

 	
 (b)

 	
 [X]

 	
 Plan pays some or all non-settlor expenses. See SFC Election 126 for
 details. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 AC9. RELATED
 AND PARTICIPATING EMPLOYERS (1.23(C)/(D)).
 There are or are not Related Employers and Participating Employers as follows
 (Complete (a) through (c)):

 
	
  

 	
 (a)

 	
 Related Employers. (Choose one of (1) or (2)):

 
	
  

 	
  

 	
 (1)

 	
 [X]

 	
 None.

 	
  

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 Name(s) of Related Employers: ____________________________

 
	
  

 	
 (b)

 	
 Participating (Related) Employers. (Choose one of (1) or (2)):

 
	
  

 	
  

 	
 (1)

 	
 [X]

 	
 None. 

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 Name(s) of Participating Employers:
 _______________________ See SFC Election 73 for details.

 
	
  

 	
 (c)

 	
 Former Participating Employers. (Choose one of (1) or (2)):

 
	
  

 	
  

 	
 (1)

 	
 [X]

 	
 None. 

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 Applies. 

 

	
  

 	
  

 	
  

 
	
 Name(s)

 	
  

 	
 Date of cessation 

 
	
 _______________________

 	
  

 	
 ______________

 
	
 _______________________

 	
  

 	
 ______________

 

AC10. TOP-HEAVY
MINIMUM-MULTIPLE PLANS (10.03).
If the Employer maintains another plan, this Plan provides that the Plan
Administrator operationally will determine in which plan the Employer will
satisfy the Top-Heavy Minimum Contribution (or benefit) requirement as to
Non-Key Employees who participate in such plans and who are entitled to a
Top-Heavy Minimum Contribution (or benefit). This Election documents the Plan
Administrator’s operational election. (Choose
(a) or choose one of (b) or (c)):

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 [  ]

 	
 Does not apply. 

 

© 2010
Prudential 

2

Nonstandardized 401(k) Plan 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 [X]

 	
 If only another Defined Contribution Plan.
 Make the Top-Heavy Minimum Allocation (Choose
 one of (1) or (2)):

 
	
  

 	
  

 	
 (1)

 	
 [X]

 	
 To this Plan. 

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 To another Defined Contribution Plan:
 _______________________________________ (plan name) 

 
	
  

 	
 (c)

 	
 [  ]

 	
 If one or more
Defined Benefit Plans. Make the Top-Heavy Minimum Allocation or provide the
top-heavy minimum benefit (Choose one of
(1), (2), or (3)): 

 
	
  

 	
  

 	
 (1)

 	
 [  ]

 	
 To this Plan. Increase the Top-Heavy Minimum
 Allocation to 5%. 

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 To another Defined Contribution Plan.
 Increase the Top-Heavy Minimum Allocation to 5% and provide under
 the: ____________________________________________ (name of other Defined
 Contribution Plan).

 
	
  

 	
  

 	
 (3)

 	
 [  ]

 	
 To a Defined Benefit Plan. Provide the 2%
 top-heavy minimum benefit under the: (name of Defined Benefit Plan) and
 applying the following interest rate and mortality assumptions: _________________. 

 

	
  

 	
  

 	
  

 	
  

 
	
 AC11.
SELF-EMPLOYED PARTICIPANTS (1.21(A)). One or more self-employed Participants
with Earned Income benefits in the Plan as follows (Choose one of (a) or (b)):  

 
	
  

 	
 (a)

 	
 [X]

 	
 None. 

 
	
  

 	
 (b)

 	
 [  ]

 	
 Applies. 

 
	
  

 	
  

 	
  

 	
  

 
	
 AC12.
PROTECTED BENEFITS (11.02(C)). The following Protected Benefits no longer
apply to all Participants or do not apply to designated amounts/Participants
as indicated, having been eliminated by a Plan amendment (Choose (a), or one or both of (b) – (c) as
applicable):  

 
	
  

 	
 (a)

 	
 [X]

 	
 Does not apply. No Protected Benefits have
 been eliminated. 

 
	
  

 	
 (b)

 	
 [  ]

 	
 Applies. Protected Benefits have been
 eliminated as follows (Choose one or more
 of rows (1) through (4) as applicable. Choose one of columns (1), (2), or
 (3), and complete column (4)): 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  (1)

 All

 Participants/

 Accounts

 	
  (2)

 Post-E.D.

 Contribution

 Accounts only

 	
  (3)

 Post-E.D.

 Participants

 only

 	
  

 	
  (4)

 Effective

 Date

 (E.D.)

 
	
 (1)

 	
 [  ]

 	
 QJSA/QPSA distributions

 	
 [  ]

 	
 [  ]

 	
 [  ]

 	
  

 	
 ________

 
	
 (2)

 	
 [  ]

 	
 Installment distributions

 	
 [  ]

 	
 [  ]

 	
 [  ]

 	
  

 	
 ________

 
	
 (3)

 	
 [  ]

 	
 In-kind distributions

 	
 [  ]

 	
 [  ]

 	
 [  ]

 	
  

 	
 ________

 
	
 (4)

 	
 [  ]

 	
 Specify: ___________________________________________________________________

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 [  ]

 	
 Applies. List any Protected Benefits that are provided under this Plan but that are
not specifically provided for under the Adoption Agreement (complete (1), (2) and (3), select one of (4) or
(5), and complete (a) through (j) as applicable): 

 
	
  

 
	
  

 	
  

 	
 (1)

 	
 [  ]

 	
 Effective Date: ________________________

 
	
  

 
	
  

 	
  

 	
 (2)

 	
 [  ]

 	
 Name of Predecessor
 Plan: ______________________________________________________

 
	
  

 
	
  

 	
  

 	
 (3)

 	
 [  ]

 	
 Name of Merged Plan:
 __________________________________________________________

 
	
  

 
	
  

 	
  

 	
 This
 addendum is with respect to (choose one of
 (4) or (5)):

 
	
  

 
	
  

 	
  

 	
 (4)

 	
 [  ]

 	
 Participants
 as of the Effective Date indicated above

 
	
  

 
	
  

 	
  

 	
 (5)

 	
 [  ]

 	
 Participant
 accounts accrued as of the Effective Date above 

 

	
  

 	
  

 	
  

 	
  

 
	
 AC13. LIFE
 INSURANCE (9.01). The Trust
 invests or does not invest in life insurance Contracts as follows (Choose one of (a) or (b)):

 
	
  

 	
 (a)

 	
 [X]

 	
 Does not
apply.  

 
	
  

 	
 (b)

 	
 [  ]

 	
 Applies.
Subject to the limitations and other provisions in Article IX and/or Appendix
B.  

 
	
  

 	
  

 	
  

 	
  

 
	
 AC14. DISTRIBUTION
 OF CASH OR PROPERTY (8.04).
 The Plan provides for distribution in the form of (Choose one of (a) or (b)):

 
	
  

 	
 (a)

 	
 [X]

 	
 Cash only.
Except where property distribution is required or permitted under Section
8.04.  

 
	
  

 	
 (b)

 	
 [  ]

 	
 Cash or
property. At the distributee’s election and consistent with any Plan
Administrator policy under Section 8.04.  

 
	
  

 
	
 AC15. EMPLOYER
 SECURITIES/EMPLOYER REAL PROPERTY (8.02(A)(13)).
 The Trust invests or does not invest in qualifying Employer securities and/or
 qualifying Employer real property as follows (Choose
 one of (a) or (b)):

 
	
  

 	
 (a)

 	
 [  ]

 	
 Does not
apply.  

 
	
  

 	
 (b)

 	
 [X]

 	
 Applies.
Such investments are subject to the limitations of Section 8.02(A)(13) and/or
Appendix B.  

 
	
  

 	
  

 	
  

 	
  

 
	
 CLIENT
 ACKNOWLEDGEMENT 

 
	
 By adopting
 this administrative checklist, serving as an administrative policy, we direct
 Prudential to make any adjustments that may be necessary to its record-keeping
 system. The Plan Sponsor understands their responsibility to notify
 participants of this administrative policy and the administrative procedures
 herein. 

 

© 2010
Prudential 

3

Nonstandardized 401(k) Plan 

I confirm that
I am authorized by the Employer to adopt the rules of procedure and policies
enclosed herein. As the Plan Administrator, I consider these rules of procedure
and policies reasonable or necessary for the proper and efficient
administration of the Plan. Therefore, upon my signature below, I hereby adopt
this Administrative Checklist as an administrative policy to the Plan. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Plan
 Administrator:

 	
  

 	
  

 	
 Date:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

Plan Name: State
Bank of Long Island 401(k) Retirement Plan and Trust

Plan Number: 002

© 2010
Prudential 

4EXHIBIT 10.13 State
Bancorp, Inc. Employee Stock Ownership Plan (December 1, 2008 Restatement)

STATE
BANCORP, INC. EMPLOYEE STOCK OWNERSHIP PLAN

 (December
1, 2008 Restatement)

	
  

 	
  

 	
  

 
	
 KP6

 	
  

 	
 6189

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 PREAMBLE

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I DEFINITIONS

 	
  

 	
 2

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
 Plan Definitions

 	
  

 	
 2

 
	
  

 	
 1.2

 	
 Interpretation

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II SERVICE

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
 Special Definitions

 	
  

 	
 12

 
	
  

 	
 2.2

 	
 Crediting of Hours of Service

 	
  

 	
 13

 
	
  

 	
 2.3

 	
 Limitations on Crediting of Hours of
 Service

 	
  

 	
 14

 
	
  

 	
 2.4

 	
 Department of Labor Rules

 	
  

 	
 15

 
	
  

 	
 2.5

 	
 Crediting of “Continuous Service”

 	
  

 	
 15

 
	
  

 	
 2.6

 	
 Crediting Eligibility Service

 	
  

 	
 15

 
	
  

 	
 2.7

 	
 Years of Vesting Service

 	
  

 	
 15

 
	
  

 	
 2.8

 	
 Crediting of Hours of Service with Respect
 to Short “Computation Periods”

 	
  

 	
 15

 
	
  

 	
 2.9

 	
 Crediting of Service on Transfer or Amendment

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III ELIGIBILITY

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
 Eligibility

 	
  

 	
 17

 
	
  

 	
 3.2

 	
 Transfers of Employment

 	
  

 	
 17

 
	
  

 	
 3.3

 	
 Reemployment

 	
  

 	
 17

 
	
  

 	
 3.4

 	
 Notification Concerning New Eligible
 Employees

 	
  

 	
 18

 
	
  

 	
 3.5

 	
 Effect and Duration

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV NO 401(k) CONTRIBUTIONS

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
 No Cash or Deferred Arrangement

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V AFTER-TAX AND ROLLOVER
 CONTRIBUTIONS

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.1

 	
 No After-Tax Contributions

 	
  

 	
 20

 
	
  

 	
 5.2

 	
 No Rollover Contributions

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI EMPLOYER CONTRIBUTIONS

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.1

 	
 Contribution Period

 	
  

 	
 21

 
	
  

 	
 6.2

 	
 Amount and Allocation of Fixed
 Contributions

 	
  

 	
 21

 
	
  

 	
 6.3

 	
 Amount and Allocation of Profit-Sharing
 Contributions

 	
  

 	
 21

 
	
  

 	
 6.4

 	
 Verification of Amount of Employer
 Contributions by the Sponsor

 	
  

 	
 22

 
	
  

 	
 6.5

 	
 Payment of Employer Contributions

 	
  

 	
 22

 
	
  

 	
 6.6

 	
 Allocation Requirements for Employer
 Contributions

 	
  

 	
 22

 
	
  

 	
 6.7

 	
 Exceptions to Allocation Requirements for
 Employer Contributions

 	
  

 	
 23

 

	
  

 	
  

 	
  

 
	
 KP6

 	
 i

 	
 6189

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.8

 	
 Vesting of Employer Contributions

 	
  

 	
 23

 
	
  

 	
 6.9

 	
 100% Vesting Events

 	
  

 	
 24

 
	
  

 	
 6.10

 	
 Election of Former Vesting Schedule

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII LIMITATIONS ON CONTRIBUTIONS

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
 Definitions

 	
  

 	
 26

 
	
  

 	
 7.2

 	
 Code Section 415 Limitations on Crediting
 of Contributions and Forfeitures

 	
  

 	
 29

 
	
  

 	
 7.3

 	
 Application of Code Section 415 Limitations
 Where Participant is Covered Under Other Qualified Defined Contribution Plan

 	
  

 	
 30

 
	
  

 	
 7.4

 	
 Scope of Limitations

 	
  

 	
 31

 
	
  

 	
 7.5

 	
 Code Section 1042 Sale Limitations

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII TRUST FUNDS AND ACCOUNTS

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
 General Fund

 	
  

 	
 33

 
	
  

 	
 8.2

 	
 Investment Funds

 	
  

 	
 33

 
	
  

 	
 8.3

 	
 Employer Stock Investment Fund

 	
  

 	
 33

 
	
  

 	
 8.4

 	
 Suspense Fund

 	
  

 	
 33

 
	
  

 	
 8.5

 	
 Income on Trust

 	
  

 	
 34

 
	
  

 	
 8.6

 	
 Accounts

 	
  

 	
 34

 
	
  

 	
 8.7

 	
 Sub-Accounts

 	
  

 	
 34

 
	
  

 	
 8.8

 	
 Company Stock Holding Account

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX LIFE INSURANCE CONTRACTS

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
 No Life Insurance Contracts

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X DEPOSIT AND INVESTMENT OF
 CONTRIBUTIONS

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
 Investment and Deposit of Certain
 Contributions

 	
  

 	
 37

 
	
  

 	
 10.2

 	
 Election to Transfer Employer Contributions
 to an Investment Fund (Diversification)

 	
  

 	
 37

 
	
  

 	
 10.3

 	
 Exercise of Voting Rights with Respect to
 Employer Stock

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI CREDITING AND VALUING ACCOUNTS

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
 Crediting Accounts

 	
  

 	
 40

 
	
  

 	
 11.2

 	
 Valuing Accounts

 	
  

 	
 40

 
	
  

 	
 11.3

 	
 Plan Valuation Procedures

 	
  

 	
 40

 
	
  

 	
 11.4

 	
 Finality of Determinations

 	
  

 	
 41

 
	
  

 	
 11.5

 	
 Notification

 	
  

 	
 41

 
	
  

 	
 11.6

 	
 Disposition of Cash Dividends on Shares
 Allocated to Fixed Contributions, Prior Money Purchase Plan Contributions,
 and Profit-Sharing Contributions Sub-Accounts

 	
  

 	
 41

 
	
  

 	
 11.7

 	
 Disposition of Income Earned on Unallocated
 Employer Stock

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XII LOANS

 	
  

 	
 43

 

	
  

 	
  

 	
  

 
	
 KP

 	
 ii

 	
 6189

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
 No Loans

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIII WITHDRAWALS WHILE EMPLOYED

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
 No In-Service Withdrawals

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIV TERMINATION OF EMPLOYMENT AND
 SETTLEMENT DATE

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
 Termination of Employment and Settlement
 Date

 	
  

 	
 45

 
	
  

 	
 14.2

 	
 Separate Accounting for Non-Vested Amounts

 	
  

 	
 45

 
	
  

 	
 14.3

 	
 Disposition of Non-Vested Amounts

 	
  

 	
 45

 
	
  

 	
 14.4

 	
 Treatment of Forfeited Amounts

 	
  

 	
 46

 
	
  

 	
 14.5

 	
 Allocations of Forfeitures

 	
  

 	
 46

 
	
  

 	
 14.6

 	
 Recrediting of Forfeited Amounts

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XV DISTRIBUTIONS

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 15.1

 	
 Distributions to Normal Retirees and
 Disabled Participants

 	
  

 	
 49

 
	
  

 	
 15.2

 	
 Distributions to Participants Who Terminate
 Employment Prior to Normal Retirement Date

 	
  

 	
 49

 
	
  

 	
 15.3

 	
 Partial Distributions to Retired or
 Terminated Participants

 	
  

 	
 50

 
	
  

 	
 15.4

 	
 Distributions to Beneficiaries

 	
  

 	
 50

 
	
  

 	
 15.5

 	
 Code Section 401(a)(9) Requirements

 	
  

 	
 50

 
	
  

 	
 15.6

 	
 Cash Outs and Participant Consent

 	
  

 	
 55

 
	
  

 	
 15.7

 	
 Automatic Rollover of Mandatory
 Distributions

 	
  

 	
 56

 
	
  

 	
 15.8

 	
 Required Commencement of Distribution

 	
  

 	
 56

 
	
  

 	
 15.9

 	
 Reemployment of a Participant

 	
  

 	
 56

 
	
  

 	
 15.10

 	
 Restrictions on Alienation

 	
  

 	
 56

 
	
  

 	
 15.11

 	
 Facility of Payment

 	
  

 	
 57

 
	
  

 	
 15.12

 	
 Inability to Locate Payee and
 Non-Negotiated Checks

 	
  

 	
 57

 
	
  

 	
 15.13

 	
 Distribution Pursuant to Qualified Domestic
 Relations Orders

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVI FORM OF PAYMENT

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
 Applicability

 	
  

 	
 59

 
	
  

 	
 16.2

 	
 Normal Form of Payment

 	
  

 	
 59

 
	
  

 	
 16.3

 	
 Optional Forms of Payment

 	
  

 	
 59

 
	
  

 	
 16.4

 	
 Change of Election

 	
  

 	
 60

 
	
  

 	
 16.5

 	
 Direct Rollover

 	
  

 	
 60

 
	
  

 	
 16.6

 	
 Notice Regarding Forms of Payment

 	
  

 	
 61

 
	
  

 	
 16.7

 	
 Reemployment

 	
  

 	
 62

 
	
  

 	
 16.8

 	
 Distribution in the Form of Employer Stock

 	
  

 	
 62

 
	
  

 	
 16.9

 	
 Put Option

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVII BENEFICIARIES

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 17.1

 	
 Designation of Beneficiary

 	
  

 	
 64

 

	
  

 	
  

 	
  

 
	
 KP6

 	
 iii

 	
 6189

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 17.2

 	
 Spousal Consent Requirements

 	
  

 	
 64

 
	
  

 	
 17.3

 	
 Revocation of Beneficiary Designation Upon
 Divorce

 	
  

 	
 65

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVIII ADMINISTRATION

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 18.1

 	
 Authority of the Sponsor

 	
  

 	
 66

 
	
  

 	
 18.2

 	
 Discretionary Authority

 	
  

 	
 66

 
	
  

 	
 18.3

 	
 Action of the Sponsor

 	
  

 	
 67

 
	
  

 	
 18.4

 	
 Claims Review Procedure

 	
  

 	
 67

 
	
  

 	
 18.5

 	
 Special Rules Applicable to Claims Related
 to Investment Errors

 	
  

 	
 68

 
	
  

 	
 18.6

 	
 Exhaustion of Remedies

 	
  

 	
 69

 
	
  

 	
 18.7

 	
 Qualified Domestic Relations Orders

 	
  

 	
 69

 
	
  

 	
 18.8

 	
 Indemnification

 	
  

 	
 69

 
	
  

 	
 18.9

 	
 Prudent Man Standard of Care

 	
  

 	
 69

 
	
  

 	
 18.10

 	
 Actions Binding

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIX AMENDMENT AND TERMINATION

 	
  

 	
 71

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 19.1

 	
 Amendment by Plan Sponsor

 	
  

 	
 71

 
	
  

 	
 19.2

 	
 Limitation on Amendment

 	
  

 	
 71

 
	
  

 	
 19.3

 	
 Termination

 	
  

 	
 71

 
	
  

 	
 19.4

 	
 Inability to Locate Payee on Plan
 Termination

 	
  

 	
 72

 
	
  

 	
 19.5

 	
 Reorganization

 	
  

 	
 72

 
	
  

 	
 19.6

 	
 Withdrawal of an Employer

 	
  

 	
 72

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XX ADOPTION BY OTHER ENTITIES

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.1

 	
 Adoption by Related Companies

 	
  

 	
 74

 
	
  

 	
 20.2

 	
 Effective Plan Provisions

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XXI MISCELLANEOUS PROVISIONS

 	
  

 	
 75

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 21.1

 	
 No Commitment as to Employment

 	
  

 	
 75

 
	
  

 	
 21.2

 	
 Benefits

 	
  

 	
 75

 
	
  

 	
 21.3

 	
 No Guarantees

 	
  

 	
 75

 
	
  

 	
 21.4

 	
 Expenses

 	
  

 	
 75

 
	
  

 	
 21.5

 	
 Precedent

 	
  

 	
 75

 
	
  

 	
 21.6

 	
 Duty to Furnish Information

 	
  

 	
 76

 
	
  

 	
 21.7

 	
 Merger, Consolidation, or Transfer of Plan
 Assets

 	
  

 	
 76

 
	
  

 	
 21.8

 	
 Condition on Employer Contributions

 	
  

 	
 76

 
	
  

 	
 21.9

 	
 Return of Contributions to an Employer

 	
  

 	
 76

 
	
  

 	
 21.10

 	
 Validity of Plan

 	
  

 	
 77

 
	
  

 	
 21.11

 	
 Trust Agreement

 	
  

 	
 77

 
	
  

 	
 21.12

 	
 Parties Bound

 	
  

 	
 77

 
	
  

 	
 21.13

 	
 Application of Certain Plan Provisions

 	
  

 	
 77

 
	
  

 	
 21.14

 	
 Merged Plans

 	
  

 	
 77

 
	
  

 	
 21.15

 	
 Transferred Funds

 	
  

 	
 78

 
	
  

 	
 21.16

 	
 Veterans Reemployment Rights

 	
  

 	
 78

 

	
  

 	
  

 	
  

 
	
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 iv

 	
 6189

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 21.17

 	
 Delivery of Cash Amounts

 	
  

 	
 78

 
	
  

 	
 21.18

 	
 Written Communications

 	
  

 	
 78

 
	
  

 	
 21.19

 	
 Plan Correction Procedures

 	
  

 	
 79

 
	
  

 	
 21.20

 	
 Prohibited Obligations

 	
  

 	
 79

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XXII TOP-HEAVY PROVISIONS

 	
  

 	
 80

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 22.1

 	
 Definitions

 	
  

 	
 80

 
	
  

 	
 22.2

 	
 Applicability

 	
  

 	
 81

 
	
  

 	
 22.3

 	
 Minimum Employer Contribution

 	
  

 	
 82

 
	
  

 	
 22.4

 	
 Exclusion of Collectively-Bargained
 Employees

 	
  

 	
 82

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XXIII EXEMPT LOANS

 	
  

 	
 83

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 23.1

 	
 Purpose of Exempt Loan

 	
  

 	
 83

 
	
  

 	
 23.2

 	
 Restrictions on Exempt Loans

 	
  

 	
 83

 
	
  

 	
 23.3

 	
 Sale or Repurchase of Shares of Employer
 Stock

 	
  

 	
 84

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ADDENDUM

 	
  

 	
 86

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.1

 	
 Applicability

 	
  

 	
 86

 
	
  

 	
 A.2

 	
 Definitions

 	
  

 	
 86

 
	
  

 	
 A.3

 	
 Normal Form of Payment

 	
  

 	
 87

 
	
  

 	
 A.4

 	
 Change of Election

 	
  

 	
 87

 
	
  

 	
 A.5

 	
 Automatic Annuity Requirements

 	
  

 	
 87

 
	
  

 	
 A.6

 	
 Qualified Preretirement Survivor Annuity
 Requirements

 	
  

 	
 88

 
	
  

 	
 A.7

 	
 Notice Regarding Forms of Payment

 	
  

 	
 88

 

	
  

 	
  

 	
  

 
	
 KP6

 	
 v

 	
 6189

 

PREAMBLE

The State
Bancorp, Inc. Employee Stock Ownership Plan, originally effective as of June 1,
1976, is hereby amended and restated in its entirety. This amendment and
restatement shall be effective as of December 1, 2008. The Plan, as amended and
restated hereby, is intended to qualify as a profit-sharing plan under Code
Section 401(a) and as an employee stock ownership plan satisfying the
requirements of Code Section 4975(e) designed to invest primarily in equity
securities of the Sponsor. The Plan is maintained for the exclusive benefit of
eligible Employees and their Beneficiaries.

Notwithstanding
any other provision of the Plan to the contrary, a Participant’s vested
interest in his Account under the Plan on and after the effective date of this
amendment and restatement shall be not less than his vested interest in his
account on the day immediately preceding the effective date. Any provision of
the Plan that restricted or limited withdrawals, loans, or other distributions,
or otherwise required separate accounting with respect to any portion of a
Participant’s Account immediately prior to the later of the effective date of
this amendment and restatement or the date this amendment and restatement is
adopted and the elimination of which would adversely affect the qualification
of the Plan under Code Section 401(a) shall continue in effect with respect to
such portion of the Participant’s Account as if fully set forth in this
amendment and restatement. 

The Plan also
includes assets previously transferred from another plan. In addition to the
provisions otherwise set forth in the Plan, the provisions in effect under such
other plan prior to the date such plan assets were transferred to the Plan, as
contained in an Addendum to the Plan, shall continue in effect.

	
  

 	
  

 	
  

 
	
 KP6

 	
 1

 	
 6189

 

ARTICLE
I

DEFINITIONS

	
  

 	
  

 
	
 1.1

 	
 Plan Definitions

 

As used
herein, the following words and phrases have the meanings hereinafter set
forth, unless a different meaning is plainly required by the context:

An “Account” means the account maintained by
the Trustee in the name of a Participant that reflects his interest in the
Trust and any Sub-Accounts maintained thereunder, as provided in Article VIII.

An “Administrative Delegate” means one or more
persons or institutions to which the Administrator has delegated certain
administrative functions pursuant to a written agreement.

The “Administrator” means the Sponsor unless the
Sponsor designates another person or persons to act as such.

An “After-Tax Contribution” means any after-tax
employee contribution made by a Participant to the Plan as may be permitted
under Article V or as may have been permitted under the terms of the Plan prior
to this amendment and restatement or any after-tax employee contribution made
by a Participant to another plan that is transferred directly to the Plan. 

The “Beneficiary” of a Participant means the
person or persons entitled under the provisions of the Plan to receive
distribution hereunder in the event the Participant dies before receiving
distribution of his entire interest under the Plan.

A
Participant’s “Benefit Payment Date”
means (i) if payment is made through the purchase of an annuity, the first day
of the first period for which the annuity is payable or (ii) if payment is made
in any other form, the first day on which all events have occurred which
entitle the Participant to receive payment of his benefit.

A “Break in Service” means any “computation
period” (as defined in Section 2.1 for purposes of determining years of
Vesting Service) during which an Employee completes no more than 500 Hours of
Service except that no Employee shall incur a Break in Service solely by reason
of temporary absence from work not exceeding 12 months resulting from
illness, layoff, or other cause if authorized in advance by an Employer or a
Related Company pursuant to its uniform leave policy, if his employment shall
not otherwise be terminated during the period of such absence.

	
  

 	
  

 	
  

 
	
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The “Code” means the Internal Revenue Code of
1986, as amended from time to time. Reference to a Code section includes such
section and any comparable section or sections of any future legislation that
amends, supplements, or supersedes such section.

The “Company
Stock Holding Account” means the account established pursuant to
Section 8.7, which is intended to hold the unallocated shares of Employer Stock
purchased to fund annual Employer Contribution obligations.

The “Compensation” of a Participant for any
period means the wages as defined in Code Section 3401(a), determined without
regard to any rules that limit compensation included in wages based on the
nature or location of the employment or services performed, and all other
payments made to him for such period for services as a Covered Employee for
which his Employer is required to furnish the Participant a written statement
under Code Sections 6041(d), 6051(a)(3), and 6052 (commonly referred to as W-2
earnings), including overtime, bonuses, and commissions.

Notwithstanding
the foregoing, Compensation shall not include the following: (i) imputed
income; (ii) reimbursed expenses; (iii) severance pay; (iv) disability payments
from any insurance company; (v) contributions to a deferred compensation plan;
(vi) amounts realized in connection with stock options; (vii) any other
contributions or benefits from this Plan or any other employee benefit plan of
an Employer; and (viii) other such payments as determined by the Administrator
under uniform rules applicable to all Participants.

Compensation
also includes: (i) any elective deferral, as defined in Code Section 402(g)(3);
(ii) any amount contributed or deferred by the Employer at the Participant’s
election which is not includable in the Participant’s gross income by reason of
Code Section 125, 132(f)(4), or 457; and (iii) certain contributions described
in Code Section 414(h)(2) that are picked up by the employing unit and treated
as employer contributions. Such amounts shall be included in Compensation only
to the extent that they would otherwise have been included in Compensation as
defined above.

Notwithstanding
any other provision of the Plan to the contrary, effective for Plan Years
beginning on and after January 1, 2009, if a Participant has a severance from
employment (as defined in Treasury Regulations Section 1.415(a)-1(f)(5)) with the
Employers and all Related Companies, Compensation shall not include amounts
received by the Participant following such severance from employment except as
provided below:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Compensation
 shall include amounts paid by an Employer to a Participant who is not
 performing services for the Employer due to qualified military service
 (within the meaning of Code Section 414(u)(1)), but only to the extent such
 amounts do not exceed the amounts the Participant would have received if he
 had continued in employment with the Employer.

 

	
  

 	
  

 	
  

 
	
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Notwithstanding
any other provision of the Plan to the contrary, Compensation does not include
differential pay, as defined hereunder. For purposes of this paragraph,
“differential pay” means any payment made to the Participant by the Employer
after December 31, 2008, with respect to a period during which the Participant
is performing service in the uniformed services, that represents all or a
portion of the wages the Participant would have received if he had continued
employment with the Employer as a Covered Employee.

In no event,
however, shall the Compensation of a Participant taken into account under the
Plan for any Plan Year exceed the limit in effect under Code Section 401(a)(17)
($230,000 for Plan Years beginning in 2008, subject to adjustment annually as
provided in Code Sections 401(a)(17)(B) and 415(d); provided, however, that the
dollar increase in effect on January 1 of any calendar year, if any, is
effective for Plan Years beginning in such calendar year). If the Compensation
of a Participant is determined over a period of time that contains fewer than
12 calendar months, then the annual compensation limitation described above
shall be adjusted with respect to that Participant by multiplying the annual compensation
limitation in effect for the Plan Year by a fraction the numerator of which is
the number of full months in the period and the denominator of which is 12;
provided, however, that no proration is required for a Participant who is
covered under the Plan for less than one full Plan Year if the formula for
allocations is based on Compensation for a period of at least 12 months. 

A “Contribution Period” means the period
specified in Article VI for which Employer Contributions shall be made.

A “Covered Employee” means any Employee of an
Employer. Notwithstanding the foregoing, the term “Covered Employee” shall not
include the following:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 any
 individual with respect to whom an Employer does not withhold income or
 employment taxes and file Form W-2 (or any replacement Form) with the
 Internal Revenue Service because such individual has executed a contract,
 letter of agreement, or other document acknowledging his status as an
 independent contractor who is not entitled to benefits under the Plan or is otherwise
 not classified by his Employer as a common law employee, even if such
 individual is later adjudicated to be a common law employee of his Employer,
 unless and until the Employer extends coverage to such individual;

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 any Leased
 Employee; and

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 any
 Self-Employed Individual.

 

The term
“Covered Employee” shall include any Employee who is covered by a collective
bargaining agreement with the Employer only if and to the extent such
collective bargaining agreement provides for coverage under the Plan.

	
  

 	
  

 	
  

 
	
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“Disabled” 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 be of
long-continued or indefinite duration. A Participant shall be considered
Disabled only if:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 He is
 eligible to receive a disability benefit under the terms of the Social
 Security Act.

 

A “Disqualified
Person” means any person who is a “disqualified person” under Code
Section 4975(e)(2), including: (i) any person who is a fiduciary with respect
to the Plan, (ii) any person providing services to the Plan; (iii) any Employer
under the Plan; (iv) any employee organization any of whose members are covered
under the Plan; (v) any owner (direct or indirect) of 50 percent or more of the
total combined voting power of all classes of voting stock or of the total
value of all classes of stock of an Employer; (vi) any officer, director or ten
percent shareholder of an Employer; and (vii) any Highly Compensated Employee
earning ten percent or more of an Employer’s yearly wages.

A ‘Dividend
Reinvestment Account” means the separate Sub-Account established for
each Participant that reflects his share of the Trust attributable to dividends
paid on Employer Stock on or after January 1, 2002 that have been reinvested in
Employer Stock. Each Participant’s Dividend Reinvestment Account shall be 100%
vested and non-forfeitable.

The “Earned Income” of an individual means the
net earnings from self employment in the trade or business with respect to
which the Plan is established, for which personal services of the individual
are a material income producing factor. Net earnings will be determined without
regard to items not included in gross income and the deductions allocable to
such items. Net earnings are reduced by contributions by the individual’s
Employer to a qualified plan to the extent the contributions are deductible
under Code Section 404. Net earnings shall be determined with regard to the
deduction allowed to the taxpayer by Code Section 164(f).

An “Eligible Employee” means any Covered
Employee who has met the eligibility requirements of Article III to participate
in the Plan.

The “Eligibility Service” of an Employee means
the period or periods of service credited to him under the provisions of
Article II for purposes of determining his eligibility to participate in the
Plan as may be required under Article III.

An “Employee” means any common law employee of
an Employer or a Related Company, any Self-Employed Individual, and any Leased
Employee.

An “Employer” means the Sponsor and any entity
which has adopted the Plan as may be provided under Article XX, including State
Bank of Long Island, New Hyde Park

	
  

 	
  

 	
  

 
	
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Leasing
Corporation, SB ORE Corp., SB Portfolio Management Corp., SB Financial Services
Corp., and Studebaker-Worthington Leasing Corp.

An “Employer Contribution” means the amount, if
any, that an Employer contributes to the Plan on behalf of its Eligible
Employees in accordance with the provisions of Article VI or Article XXII and
that an Eligible Employee may not elect instead to receive in cash.

“Employer
Stock” means common stock issued by an Employer or a Related Company
that is readily tradable on an established securities market. If there is no
common stock of an Employer or a Related Company that is readily tradable on an
established securities market, then Employer Stock means common stock of an
Employer or a Related Company having a combination of voting and dividend
rights equal to or in excess of (i) the class of common stock having the
greatest voting power and (ii) the class of common stock having the greatest
dividend rights. Noncallable preferred stock is deemed to be Employer Stock if
it is convertible at any time to stock that constitutes Employer Stock and such
conversion is at a reasonable price, determined as of the date such preferred
stock is acquired by the Trust Fund. For purposes of the foregoing, preferred
stock is treated as noncallable if after any call there is a reasonable
opportunity for conversion that meets the requirements of the preceding
sentence.

An “Enrollment Date” means December 31 of each
calendar year, subject to the provisions of Section 3.1.

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time. Reference to a section of
ERISA includes such section and any comparable section or sections of any
future legislation that amends, supplements, or supersedes such section.

An “Exempt Loan”
means any loan made to the Plan by a Disqualified Person or guaranteed by a
Disqualified Person that satisfies the requirements of IRS Regulations Section
54.4975-7(b), including a direct loan of cash, a purchase-money transaction, or
an assumption of an obligation of the Trust.

A “Fixed Contribution” means any Employer
Contribution made to the Plan as provided in Section 6.2 that is not contingent
upon a Participant’s “elective contributions” or “employee contributions” as
those terms are defined in Section 7.1.

The “General Fund” means a Trust Fund maintained
by the Trustee as required to hold and administer any assets of the Trust that
are not allocated among any separate Investment Funds as may be provided in the
Plan or the Trust Agreement. No General Fund shall be maintained if all assets
of the Trust are allocated among separate Investment Funds.

	
  

 	
  

 	
  

 
	
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A “Highly Compensated Employee” means any
Covered Employee who is a “highly compensated active employee” as defined
hereunder.

A “highly
compensated active employee” includes any Covered Employee who performs
services for an Employer or any Related Company during the Plan Year and who
(i) was a five percent owner at any time during the Plan Year or the “look back
year” or (ii) received “compensation” from the Employers and Related Companies
during the “look back year” in excess of the dollar amount in effect under Code
Section 414(q)(1)(B)(i) adjusted pursuant to Code Section 415(d) (e.g.,
$105,000 for “look back years” beginning in 2008).

The
determination of who is a Highly Compensated Employee hereunder shall be made
in accordance with the provisions of Code Section 414(q) and regulations issued
thereunder.

For purposes
of this definition, the following terms have the following meanings:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 An
 Employee’s “compensation” means his “415 compensation” as defined in Section
 7.1.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 The “look
 back year” means the 12-month period immediately preceding the Plan Year.

 

An “Hour of Service” with respect to an
Employee means each hour, if any, that may be credited to him in accordance
with the provisions of Article II.

An “Investment Fund” means any separate
investment Trust Fund maintained by the Trustee as may be provided in the Plan
or the Trust Agreement or any separate investment fund maintained by the
Trustee, to the extent that there are Participant Sub-Accounts under such
funds, to which assets of the Trust may be allocated and separately invested.

A “Leased Employee” means any person (other than an “excludable
leased employee”) who performs services for an Employer or a Related Company
(the “recipient”) (other than an employee of the “recipient”) pursuant to an
agreement between the “recipient” and any other person (the “leasing
organization”) on a substantially full-time basis for a period of at least one
year, provided that such services are performed under primary direction of or
control by the “recipient”. An “excludable leased employee” means any Leased
Employee of the “recipient” who is (a) covered by a money purchase pension plan
maintained by the “leasing organization” which provides for (i) a nonintegrated
employer contribution on behalf of each participant in the plan equal to at
least ten percent of 415 compensation (as defined in Section 7.1), (ii) full
and immediate vesting, and (iii) immediate participation by employees of the
“leasing organization” or (b) performs substantially all of his services for
the “leasing organization” or (c) whose compensation from the “leasing
organization” in each Plan Year during the four-year period ending with

	
  

 	
  

 	
  

 
	
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the Plan Year
is less than $1,000. Notwithstanding the foregoing, a person shall not be
treated as an “excludable leased employee” if Leased Employees (including any
individual who would otherwise be considered an “excludable leased employee”)
constitute more than 20 percent of the “recipient’s” nonhighly compensated work
force. For purposes of this Section, contributions or benefits provided to a
Leased Employee by the “leasing organization” that are attributable to services
performed for the “recipient” shall be treated as provided by the “recipient”.

Notwithstanding
the foregoing, if any person who performed services for a “recipient” pursuant
to an agreement between the “recipient” and the “leasing organization” becomes
a Covered Employee, all service performed by such person for the “recipient”
shall be treated as employment with an Employer as an Employee, even if
performed on less than a full-time basis, for less than a full year, or while
an “excludable leased employee.”

The “Normal Retirement Date” of an Employee
means the date he attains age 65.

A “Participant” means any person who has
satisfied the requirements of Article III to become an Eligible Employee and
who has an Account in the Trust.

The “Plan” means the State Bancorp, Inc.
Employee Stock Ownership Plan, as from time to time in effect.

A “Plan Year” means the 12-consecutive-month
period ending each December 31.

A “Predecessor Employer” means any company
that is a predecessor organization to an Employer under the Code, provided that
the Employer maintains a plan of such predecessor organization.

A “Prior Money
Purchase Plan Contribution” means any contribution, which was made
under the terms of the State Bank of Long Island Retirement Plan and Trust and
transferred to the Plan.

A “Profit-Sharing Contribution” means any
Employer Contribution made to the Plan as provided in Section 6.3 that is not
contingent upon a Participant’s “elective contributions” or “employee
contributions” as those terms are defined in Section 7.1.

A “Qualified Joint and Survivor Annuity” means
an immediate annuity payable at earliest retirement age under the Plan, as
defined in regulations issued under Code Section 401(a)(11), that is payable
for the life of a Participant with a survivor annuity payable for the life of
the Participant’s Spouse that is equal to at least 50 percent, but not more
than 100 percent, of the amount of the annuity payable during the joint lives
of the Participant and his Spouse. No survivor annuity shall be payable to the
Participant’s Spouse under a Qualified Joint and Survivor Annuity if such
Spouse is not the same person who was the Participant’s Spouse on his Benefit
Payment Date.

	
  

 	
  

 	
  

 
	
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A “Qualified Preretirement Survivor Annuity”
means an annuity payable for the life of a Participant’s surviving Spouse if
the Participant dies prior to his Benefit Payment Date.

A “Related Company” means any corporation or
business, other than an Employer, that would be aggregated with an Employer for
a relevant purpose under Code Section 414, including members of an affiliated
service group under Code Section 414(m), a controlled group of corporations
under Code Section 414(b), or a group of trades of businesses under common
control under Code Section 414(c) of which the adopting Employer is a member,
and any other entity required to be aggregated with the Employer pursuant to
Code Section 414(o).

A
Participant’s “Required Beginning Date”
means the following:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 for a
 Participant who is not a “five percent owner”, April 1 of the calendar year
 following the calendar year in which occurs the later of the Participant’s
 (i) attainment of age 70 1/2 or (ii) retirement.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

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

 

A Participant
is a “five percent owner” if he is a five percent owner, as defined in Code
Section 416(i) and determined in accordance with Code Section 416, but without
regard to whether the Plan is top-heavy, for the Plan Year ending with or
within the calendar year in which the Participant attains age 70 1/2. The
Required Beginning Date of a Participant who is a “five percent owner”
hereunder shall not be redetermined if the Participant ceases to be a five
percent owner as defined in Code Section 416(i) with respect to any subsequent
Plan Year.

A “Rollover Contribution” means any rollover
contribution to the Plan made by a Participant as may be permitted under
Article V.

A “Self-Employed Individual” means any
individual who has Earned Income for the taxable year from the trade or
business with respect to which the Plan is established or who would have had
Earned Income but for the fact that the trade or business had no net profits
for the taxable year.

The “Settlement Date” of a Participant means the
date on which a Participant’s interest under the Plan becomes distributable in
accordance with Article XV.

A “Single Life Annuity” means an annuity
payable for the life of a Participant.

The “Sponsor” means State Bancorp, Inc., and any
successor thereto. The Sponsor is a C corporation.

	
  

 	
  

 	
  

 
	
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A
Participant’s “Spouse” means the
person of the opposite sex to whom the Participant is married in a legal union
between one man and one woman as husband and wife.

A “Sub-Account” means any of the individual
sub-accounts of a Participant’s Account that is maintained as provided in
Article VIII.

The “Suspense
Fund” means the Trust Fund established to hold Employer Stock
acquired with the proceeds of an Exempt Loan pending the release of such
Employer Stock from encumbrance and its allocation among Participants’
Accounts.

The “Trust” means the trust, custodial accounts,
annuity contracts, or insurance contracts maintained by the Trustee under the
Trust Agreement.

The “Trust Agreement” means any agreement or
agreements entered into between the Sponsor and the Trustee relating to the
holding, investment, and reinvestment of the assets of the Plan, together with
all amendments thereto and shall include any agreement establishing a custodial
account, an annuity contract, or an insurance contract (other than a life,
health or accident, property, casualty, or liability insurance contract) for
the investment of assets if the custodial account or contract would, except for
the fact that it is not a trust, constitute a qualified trust under Code
Section 401.

The “Trustee” means the trustee or any successor
trustee which at the time shall be designated, qualified, and acting under the
Trust Agreement and shall include any insurance company that issues an annuity
or insurance contract pursuant to the Trust Agreement or any person holding
assets in a custodial account pursuant to the Trust Agreement. The Sponsor may
designate a person or persons other than the Trustee to perform any
responsibility of the Trustee under the Plan, other than trustee
responsibilities as defined in ERISA Section 405(c)(3), and the Trustee shall
not be liable for the performance of such person in carrying out such
responsibility except as otherwise provided by ERISA. The term Trustee shall
include any delegate of the Trustee as may be provided in the Trust Agreement.

A “Trust Fund” means any fund maintained under
the Trust by the Trustee.

A “Valuation Date” means each business day
during the Plan Year, and such other date or dates designated by the Sponsor
and communicated to the Trustee for the purpose of valuing the General Fund and
each Investment Fund and adjusting Accounts and Sub-Accounts hereunder, which
other dates need not be uniform with respect to the General Fund, each Investment
Fund, Account, or Sub-Account; provided, however, that the General Fund and
each Investment Fund shall be valued and each Account and Sub-Account shall be
adjusted no less often than once annually.

The “Vesting Service” of an Employee means the
period or periods of service credited to him under the provisions of Article II
for purposes of determining his vested interest in his Employer Contributions
Sub-Account.

	
  

 	
  

 	
  

 
	
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 1.2

 	
 Interpretation

 

Where required
by the context, the noun, verb, adjective, and adverb forms of each defined
term shall include any of its other forms. Wherever used herein, the masculine
pronoun shall include the feminine, the singular shall include the plural, and
the plural shall include the singular.

	
  

 	
  

 	
  

 
	
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ARTICLE II

SERVICE

	
  

 	
  

 
	
 2.1

 	
 Special Definitions

 

For purposes
of this Article, the following terms have the following meanings:

A “computation period” for purposes of
determining an Employee’s years of Vesting Service means each Plan Year;
provided, however, that if an Employee first completed an Hour of Service prior
to the effective date of the Plan, a Plan Year shall not mean any short Plan
Year beginning on the effective date of the Plan, if any, but shall mean any
12-consecutive-month period beginning before the effective date of the Plan
that would have been a Plan Year if the Plan had been in effect.

The “continuous service” of an Employee means
the continuous service credited to him in accordance with the provisions of
this Article.

The “employment commencement date” of an
employee means the date he first completes an Hour of Service, as described in
Section 2.2(a).

A “maternity/paternity absence” means an
Employee’s absence from employment with an Employer or a Related Company
because of the Employee’s pregnancy, the birth of the Employee’s child, the
placement of a child with the Employee in connection with the Employee’s
adoption of the child, or the caring for the Employee’s child immediately
following the child’s birth or adoption. An Employee’s absence from employment
will not be considered a maternity/paternity absence unless the Employee
furnishes the Administrator such timely information as may reasonably be
required to establish that the absence was for one of the purposes enumerated
in this paragraph and to establish the number of days of absence attributable
to such purpose.

The “reemployment commencement date” of an
Employee means the first date following a “service break” on which he again
completes an Hour of Service, as described in Section 2.2(a).

A “service break” with respect to an Employee
means any 12-consecutive-month period beginning on the Employee’s “severance
date” and anniversaries of his “severance date” in which he does not complete
an Hour of Service, as described in Section 2.2(a).

The “severance date” of an Employee means the
earlier of (i) the date on which he retires, dies, or his employment with all
Employers and Related Companies is otherwise terminated, or (ii) the first
anniversary of the first date of a period during which he is absent from work
with all Employers and Related Companies for any other reason; provided,
however, that if he terminates employment with or is absent from work with all
Employers and Related Companies on account of service with the armed forces of
the

	
  

 	
  

 	
  

 
	
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United States,
he shall not incur a “severance date” if he is eligible for reemployment rights
under the Uniformed Services Employment and Reemployment Rights Act of 1994 and
he returns to work with an Employer or a Related Company within the period
during which he retains such reemployment rights, but, if he does not return to
work within such period, his “severance date” shall be the earlier of the date
which is one year after his absence commenced or the last day of the period
during which he retains such reemployment rights.

	
  

 	
  

 
	
 2.2

 	
 Crediting of Hours of Service

 

An Employee
shall be credited with an Hour of Service for:

	
  

 	
  

 
	
 (a)

 	
 Each hour
 for which he is paid, or entitled to payment, for the performance of duties
 for an Employer, a Predecessor Employer, or a Related Company during the
 applicable period; provided, however, that hours compensated at a premium
 rate shall be treated as straight-time hours.

 
	
  

 	
  

 
	
 (b)

 	
 Subject to
 the provisions of Section 2.3, each hour for which he is paid, or entitled to
 payment, by an Employer, a Predecessor Employer, or a Related Company on
 account of a period of time during which no duties are performed
 (irrespective of whether the employment relationship has terminated) due to
 vacation, holiday, illness, incapacity (including disability), lay-off, jury
 duty, military duty, or leave of absence.

 
	
  

 	
  

 
	
 (c)

 	
 Each hour
 for which he would have been scheduled to work for an Employer, a Predecessor
 Employer, or a Related Company during the period that he is absent from work
 because of service with the armed forces of the United States provided he is
 eligible for reemployment rights under the Uniformed Services Employment and
 Reemployment Rights Act of 1994 and returns to work with an Employer or a
 Related Company within the period during which he retains such reemployment
 rights; provided, however, that the same Hour of Service shall not be
 credited under paragraph (b) of this Section and under this paragraph (c).

 
	
  

 	
  

 
	
 (d)

 	
 Each hour
 for which back pay, irrespective of mitigation of damages, is either awarded
 or agreed to by an Employer, a Predecessor Employer, or a Related Company;
 provided, however, that the same Hour of Service shall not be credited both
 under paragraph (a) or (b) or (c) of this Section, as the case may be, and
 under this paragraph (d); and provided, further, that the crediting of Hours
 of Service for back pay awarded or agreed to with respect to periods
 described in such paragraph (b) shall be subject to the limitations set forth
 therein and in Section 2.3.

 
	
  

 	
  

 
	
 (e)

 	
 Solely for
 purposes of determining whether an Employee who is on a “maternity/paternity
 absence” has incurred a Break in Service for a “computation period”, Hours of
 Service shall include those hours with which such Employee 

 

	
  

 	
  

 	
  

 
	
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 would
 otherwise have been credited but for such “maternity/paternity absence”, or
 shall include eight Hours of Service for each day of “maternity/paternity
 absence” if the actual hours to be credited cannot be determined; except that
 not more than the minimum number of hours required to prevent a Break in
 Service shall be credited by reason of any “maternity/paternity absence”;
 provided, however, that any hours included as Hours of Service pursuant to
 this paragraph shall be credited to the “computation period” in which the
 absence from employment begins, if such Employee otherwise would incur a
 Break in Service in such “computation period”, or, in any other case, to the
 immediately following “computation period”.

 
	
  

 	
  

 
	
 (f)

 	
 Solely for
 purposes of determining whether he has incurred a Break in Service, each hour
 for which he would have been scheduled to work for an Employer, a Predecessor
 Employer, or a Related Company during the period of time that he is absent
 from work on an approved leave of absence pursuant to the Family and Medical
 Leave Act of 1993; provided, however, that Hours of Service shall not be
 credited to an Employee under this paragraph if the Employee fails to return
 to employment with an Employer or a Related Company following such leave.

 

Except as
otherwise specifically provided with respect to Predecessor Employers, Hours of
Service shall not be credited for employment with a corporation or business
prior to the date such corporation or business becomes a Related Company.

	
  

 	
  

 
	
 2.3

 	
 Limitations on Crediting of Hours of Service 

 

In the
application of the provisions of paragraph (b) of Section 2.2, the following
shall apply:

	
  

 	
  

 
	
 (a)

 	
 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 shall not be
 credited to him if such payment is made or due under a plan maintained solely
 for the purpose of complying with applicable workers’ compensation,
 unemployment compensation, or disability insurance laws.

 
	
  

 	
  

 
	
 (b)

 	
 Hours of
 Service shall not be credited with respect to a payment which solely
 reimburses an Employee for medical or medically-related expenses incurred by
 him.

 
	
  

 	
  

 
	
 (c)

 	
 A payment
 shall be deemed to be made by or due from an Employer, a Predecessor
 Employer, or a Related Company (i) regardless of whether such payment is made
 by or due from such employer directly or indirectly, through (among others) a
 trust fund or insurer to which any such employer contributes or pays premiums,
 and (ii) regardless of whether contributions made or due to such 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.

 

	
  

 	
  

 	
  

 
	
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 (d)

 	
 No more than
 501 Hours of Service shall be credited to an Employee on account of any
 single continuous period during which he performs no duties (whether or not
 such period occurs in a single “computation period”), unless no duties are
 performed due to service with the armed forces of the United States for which
 the Emlpoyee retains reemployment rights as provided in paragraph (c) of
 Section 2.2. 

 
	
  

 	
  

 
	
 2.4

 	
 Department of Labor Rules

 

The rules set
forth in paragraphs (b) and (c) of Department of Labor Regulations Section
2530.200b-2, which relate to determining Hours of Service attributable to
reasons other than the performance of duties and crediting Hours of Service to
particular periods, are hereby incorporated into the Plan by reference. 

	
  

 	
  

 
	
 2.5

 	
 Crediting of “Continuous Service” 

 

An Employee
shall be credited with “continuous service” for the aggregate of the periods of
time between his “employment commencement date” or any “reemployment
commencement date” and the “severance date” that next follows such “employment
commencement date” or “reemployment commencement date”; provided, however, that
an Employee who has a “reemployment commencement date” within the
12-consecutive-month period following the earlier of the first date of his
absence or his “severance date” shall be credited with “continuous service” for
the period between his “severance date” and “reemployment commencement date”. 

	
  

 	
  

 
	
 2.6

 	
 Crediting Eligibility Service 

 

An Employee
shall be credited with Eligibility Service equal to his “continuous service”. 

Eligibility
Service shall be credited in full calendar months. 

	
  

 	
  

 
	
 2.7

 	
 Years of Vesting Service 

 

An Employee
shall be credited with a year of Vesting Service for each “computation period”
during which he completes at least 1,000 Hours of Service. 

	
  

 	
  

 
	
 2.8

 	
 Crediting of Hours of Service with Respect to Short “Computation
 Periods” 

 

The following
provisions shall apply with respect to crediting Hours of Service with respect
to any short “computation period”: 

	
  

 	
  

 	
  

 
	
 (a)

 	
 For purposes
 of this Article, the following terms have the following meanings: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 An “old
 computation period” means any “computation period” that ends immediately
 prior to a change in the “computation period”. 

 

	
  

 	
  

 	
  

 
	
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 (ii)

 	
 A “short
 computation period” means any “computation period” of fewer than
 12-consecutive months. 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Notwithstanding
 any other provision of the Plan to the contrary, no Employee shall incur a
 Break in Service for a short “computation period” solely because of such
 short “computation period”. 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 For purposes
 of determining the years of Vesting Service to be credited to an Employee, a
 “computation period” shall not include the “short computation period”, but if
 an Employee completes at least 1,000 Hours of Service in the 12-consecutive-month
 period beginning on the first day of the “short computation period”, such
 Employee shall be credited with a year of Vesting Service for such
 12-consecutive-month period. 

 

	
  

 	
  

 
	
 2.9

 	
 Crediting of Service on Transfer or Amendment 

 

Notwithstanding
any other provision of the Plan to the contrary, if as a result of a Plan
amendment or a transfer from employment covered under another qualified plan
maintained by an Employer or a Related Company, the service crediting method
applicable to an Employee changes between the elapsed time method described in
Treasury Regulations Section 1.410(a)-7 and the Hours of Service method
described in Department of Labor Regulations Sections 2530.200 through
2530.203, an affected Employee shall be credited with Eligibility and Vesting
Service hereunder as provided in Treasury Regulations Section 1.410(a)-7(f)(1).

	
  

 	
  

 	
  

 
	
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ARTICLE III

ELIGIBILITY

	
  

 	
  

 
	
 3.1

 	
 Eligibility 

 

Each Covered
Employee who was an Eligible Employee immediately prior to December 1, 2008 shall
continue to be an Eligible Employee on December 1, 2008. Each other Employee
shall become an Eligible Employee as of follows: 

	
  

 	
  

 
	
 (a)

 	
 He shall
 become an Eligible Employee as of the first Enrollment Date immediately
 following the date he first performs an Hour of Service, provided that as of
 such Enrollment Date: (i) he is a Covered Employee; (ii) he has attained age
 21; and (iii) he has completed 6 months of Eligibility Service. 

 
	
  

 	
  

 
	
 (b)

 	
 If he does
 not satisfy the requirements of Section 3.1(a) as of the Enrollment Date
 immediately following the date he first performs an Hour of Service, he shall
 become an Eligible Employee as of the first date he satisfies all of the
 following: (i) he is a Covered Employee; (ii) he has attained age 21; and
 (iii) he has completed 6 months of Eligibility Service. 

 
	
  

 	
  

 
	
 3.2

 	
 Transfers of Employment

 

If an Employee
is transferred directly from employment with an Employer or with a Related
Company in a capacity other than as a Covered Employee to employment as a
Covered Employee, he shall become an Eligible Employee as of the later of the
date he is so transferred or the date he would have become an Eligible Employee
in accordance with the provisions of Section 3.1 if he had been a Covered
Employee for his entire period of employment with the Employer or Related
Company. 

	
  

 	
  

 
	
 3.3

 	
 Reemployment 

 

If a person
who terminated employment with an Employer and all Related Companies is
reemployed as a Covered Employee and if he had been an Eligible Employee prior
to his termination of employment, he shall again become an Eligible Employee on
the date he is reemployed. If such person was not an Eligible Employee prior to
his termination of employment, but had satisfied the requirements of Section
3.1 prior to such termination, he shall become an Eligible Employee as of the
later of the date he is reemployed or the date he would have become an Eligible
Employee in accordance with the provisions of Section 3.1 if he had continued
employment as a Covered Employee. Otherwise, the eligibility of a person who
terminated employment with an Employer and all Related Companies and who is
reemployed by an Employer or a Related Company to participate in the Plan shall
be determined in accordance with Section 3.1 or 3.2. 

	
  

 	
  

 	
  

 
	
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 3.4

 	
 Notification Concerning New Eligible Employees 

 

Each Employer
shall notify the Administrator as soon as practicable of Employees becoming
Eligible Employees as of any date. 

	
  

 	
  

 
	
 3.5

 	
 Effect and Duration 

 

Upon becoming
an Eligible Employee, a Covered Employee shall be entitled to receive
allocations of Employer Contributions in accordance with the provisions of
Article VI (provided he meets any applicable requirements thereunder) and shall
be bound by all the terms and conditions of the Plan and the Trust Agreement. A
person shall continue as an Eligible Employee eligible to participate in
allocations of Employer Contributions only so long as he continues employment
as a Covered Employee. 

	
  

 	
  

 	
  

 
	
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ARTICLE IV
NO 401(k) CONTRIBUTIONS

	
  

 	
  

 
	
 4.1

 	
 No Cash or Deferred Arrangement 

 

The Plan does
not include a cash or deferred arrangement under Code Section 401(k). 

	
  

 	
  

 	
  

 
	
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 ARTICLE V

 
	
 AFTER-TAX AND ROLLOVER CONTRIBUTIONS

 

	
  

 	
  

 
	
 5.1

 	
 No After-Tax Contributions

 

There shall be
no After-Tax Contributions made to the Plan and no After-Tax Contributions may
be transferred to the Plan.

	
  

 	
  

 
	
 5.2

 	
 No Rollover Contributions

 

There shall be
no Rollover Contributions made to the Plan.

	
  

 	
  

 	
  

 
	
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 ARTICLE VI

 
	
 EMPLOYER CONTRIBUTIONS

 

	
  

 	
  

 
	
 6.1

 	
 Contribution Period

 

The
Contribution Periods for Employer Contributions under the Plan are as follows:

	
  

 	
  

 
	
 (a)

 	
 The
 Contribution Period for Fixed Contributions is each Plan Year.

 
	
  

 	
  

 
	
 (b)

 	
 The
 Contribution Period for Profit-Sharing Contributions is each
 Plan Year.

 
	
  

 	
  

 
	
 6.2

 	
 Amount and Allocation of Fixed Contributions

 

Each Employer
shall make a Fixed Contribution to the Plan for the Contribution Period on
behalf of each of its Eligible Employees during the Contribution Period who has
met the allocation requirements for Fixed Contributions described in this
Article. The amount of such Fixed Contribution shall be equal to 3 percent of
the Compensation paid to such Eligible Employee for the Contribution Period.

Notwithstanding
the foregoing, if there is an Exempt Loan in effect for the Contribution
Period, the Fixed Contribution shall first be applied to reduce the Plan’s
obligations under the terms of the Exempt Loan, reduced by any interest or
dividends that the Administrator has previously applied against the Plan’s
obligations for such Contribution Period under the terms of the Plan. Shares of
Employer Stock released from the Suspense Fund that are attributable to Fixed
Contributions shall be allocated among the Accounts of Eligible Employees in
the same manner as provided in the preceding paragraph with respect to Fixed
Contributions.

	
  

 	
  

 
	
 6.3

 	
 Amount and Allocation of Profit-Sharing Contributions

 

Each Employer
shall make a Profit-Sharing Contribution to the Plan for the Contribution
Period in an amount determined by the Sponsor’s Board of Directors, in the
Board’s discretion.

Any
Profit-Sharing Contribution made by an Employer for a Contribution Period shall
be allocated among its Eligible Employees who during the Contribution Period
have met the allocation requirements for Profit-Sharing Contributions described
in this Article. The allocable share of each such Eligible Employee shall be
determined using the formula approved by the Sponsor’s Board of Directors for
the Contribution Period.

Notwithstanding
the foregoing, if there is an Exempt Loan in effect for the Contribution
Period, the Profit-Sharing Contribution shall first be applied to reduce the
Plan’s obligations under the terms of the Exempt Loan, reduced by any interest
or dividends that the Administrator has previously applied against the Plan’s
obligations for such 

	
  

 	
  

 	
  

 
	
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Contribution
Period under the terms of the Plan. Shares of Employer Stock released from the
Suspense Fund that are attributable to Profit-Sharing Contributions shall be
allocated among the Accounts of Eligible Employees in the same manner as
provided in the preceding paragraph with respect to Profit-Sharing Contributions.

	
  

 	
  

 
	
 6.4

 	
 Verification of Amount of Employer Contributions by the Sponsor

 

The Sponsor
shall verify the amount of Employer Contributions to be made by each Employer
in accordance with the provisions of the Plan. Notwithstanding any other
provision of the Plan to the contrary, the Sponsor shall determine the portion
of the Employer Contribution to be made by each Employer with respect to a
Covered Employee who transfers from employment with one Employer as a Covered
Employee to employment with another Employer as a Covered Employee.

	
  

 	
  

 
	
 6.5

 	
 Payment of Employer Contributions

 

Employer
Contributions made for a Contribution Period shall be paid in cash or in
qualifying employer securities, as defined in ERISA Section 407(d)(5), to the
Trustee within the period of time required under the Code in order for the
contribution to be deductible by the Employer in determining its Federal income
taxes for the Plan Year. 

Any in kind
contribution made under the terms of the Plan shall be discretionary and
unencumbered.

	
  

 	
  

 
	
 6.6

 	
 Allocation Requirements for Employer Contributions

 

An Eligible
Employee shall be eligible to receive an allocation of Employer Contributions
under this Article only if he satisfies any requirements specified in the
applicable contribution Section and also meets the requirements of this
Section.

	
  

 	
  

 
	
 (a)

 	
 A person who
 was an Eligible Employee during a Contribution Period shall be eligible to
 receive an allocation of Fixed Contributions for such Contribution Period
 only if: (i) he is employed as a Covered Employee on the last day of the
 Contribution Period; and (ii) he has completed at least 1,000 Hours of
 Service during the Contribution Period. 

 
	
  

 	
  

 
	
 (b)

 	
 A person who
 was an Eligible Employee during a Contribution Period shall be eligible to
 receive an allocation of Profit-Sharing Contributions for such Contribution
 Period only if: (i) he is employed as a Covered Employee on the last day of
 the Contribution Period; and (ii) he has completed at least 1,000 Hours of
 Service during the Contribution Period.

 

The number of
Hours of Service required to receive an allocation of Fixed Contributions or
Profit-Sharing Contributions hereunder shall be pro-rated for any short
Contribution Period. 

	
  

 	
  

 	
  

 
	
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 6.7

 	
 Exceptions to Allocation Requirements for Employer Contributions

 

Notwithstanding
any other provision of the Plan to the contrary, the last
day and annual service allocation requirements described above shall not apply
to an Employee who terminates employment during the Contribution Period on or
after his Normal Retirement Date, or because of death or becoming Disabled.

Notwithstanding
the foregoing, effective on and after January 1, 2010, the last day requirement
described above shall not apply to an Employee who is on an approved leave of
absence. However, the annual service allocation requirements described above
shall apply to an Employee who is on an approved leave of absence.

	
  

 	
  

 
	
 6.8

 	
 Vesting of Employer Contributions

 

A Participant’s vested interest in his Prior Money Purchase Plan Contributions
Sub-Account shall be at all times 100 percent.

A Participant’s vested interest in his Fixed Contributions and Profit-Sharing
Contributions Sub-Accounts shall be determined in accordance with the following
schedule:

	
  

 	
  

 	
  

 
	
 Years of Vesting Service

 	
  

 	
 Vested Interest

 
	

 

 	
  

 	

 

 
	
 Less than 2

 	
  

 	
     0%

 
	
 2, but less than 3

 	
  

 	
   20%

 
	
 3, but less than 4

 	
  

 	
   40%

 
	
 4, but less than 5

 	
  

 	
   60%

 
	
 5, but less than 6

 	
  

 	
   80%

 
	
 6 or more

 	
  

 	
 100%

 

Notwithstanding
the forgoing, if a Participant is discharged for “just cause” before he is
credited with “applicable years” of Vesting Service and before he has attained
his Normal Retirement Date, his entire Employer Contributions Sub-Account,
other than his Dividend Reinvestment Account, shall be forfeited without regard
to his years of Vesting Service.

	
  

 	
  

 	
  

 
	
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For this
purpose, “just cause” shall mean theft, fraud, embezzlement, or willful
misconduct causing significant property damage to an Employer or personal
injury to any Employee, and “applicable years” shall mean:

	
  

 	
  

 
	
 (a)

 	
 five years,
 with respect to the portion of a Participant’s Employer Contributions
 Sub-Account which is attributable to Employer Contributions made prior to
 January 1, 2007; and 

 
	
  

 	
  

 
	
 (b)

 	
 three years,
 with respect to the portion of a Participant’s Employer Contributions
 Sub-Account which is attributable to Employer Contributions made on or after
 January 1, 2007.

 

A
Participant’s Dividend Reinvestment Account shall at all times be 100% vested
and non-forfeitable.

	
  

 	
  

 
	
 6.9

 	
 100% Vesting Events

 

Notwithstanding
any other provision of the Plan to the contrary, if a Participant is employed
by an Employer or a Related Company on his Normal Retirement Date, the date he
becomes Disabled, or the date he dies, his vested interest in his full Employer
Contributions Sub-Account shall be 100 percent, without regard to the
number of his years of Vesting Service.

For purposes of determining whether a Participant is 100 percent vested
under this Section, a Participant who is absent from employment as an Employee
because of military service and who dies after December 31, 2006, while
performing qualified military service (as described in the Uniformed
Services Employment and Reemployment Rights Act of 1994) shall be treated as
having returned to employment with an Employer or a Related Company immediately
prior to his death and as having died while employed by an Employer or a
Related Company.

	
  

 	
  

 
	
 6.10

 	
 Election of Former Vesting Schedule

 

If
there is an amendment to the vesting schedule applicable to a Participant’s
Employer Contributions Sub-Account because either (a) the Sponsor adopts an
amendment to the Plan that directly or indirectly affects the computation of a
Participant’s vested interest in his Employer Contributions Sub Account or (b)
the top-heavy vesting schedule specified in Section 22.4 of the Plan applies
only for top-heavy Plan Years and the Plan becomes a “top-heavy plan”, as
defined in Section 22.1 of the Plan, and upon a subsequent “determination
date”, as defined in Section 22.1 of the Plan, is determined no longer to be a
top-heavy plan”, the following special rules shall apply:

	
  

 	
  

 
	
 (a)

 	
 In
 no event shall a Participant’s vested interest in his Employer Contributions
 Sub Account on the effective date of such an amendment be less than his
 vested

 

	
  

 	
  

 	
  

 
	
 KP6

 	
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 interest
 in his Employer Contributions Sub Account immediately prior to the effective
 date of the amendment.

 
	
  

 	
  

 
	
 (b)

 	
 In
 no event shall a Participant’s vested interest in his Employer Contributions
 Sub-Account accrued as of the later of (i) the effective date of such
 amendment or (ii) the date such amendment is adopted, be determined on and
 after the effective date of such amendment under a vesting schedule that is
 more restrictive than the vesting schedule applicable to such Employer
 Contributions Sub-Account immediately prior to the effective date of such
 amendment.

 
	
  

 	
  

 
	
 (c)

 	
 Any Participant with 3 or more years of Vesting Service shall have a
 right to have his vested interest in his Employer Contributions Sub Account
 (including amounts accrued following the effective date of such amendment)
 continue to be determined under the vesting provisions in effect prior to the
 amendment rather than under the new vesting provisions, unless the vested
 interest of the Participant in his Employer Contributions Sub Account under
 the Plan as amended is not at any time less than such vested interest
 determined without regard to the amendment. A Participant shall exercise his
 right under this Section by giving written notice of his exercise thereof to
 the Administrator within 60 days after the latest of (i) the date he receives
 notice of the amendment from the Administrator, (ii) the effective date of
 the amendment, or (iii) the date the amendment is adopted.

 

	
  

 	
  

 	
  

 
	
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ARTICLE VII

LIMITATIONS ON CONTRIBUTIONS

	
  

 	
  

 
	
 7.1

 	
 Definitions

 

For purposes
of this Article, the following terms have the following meanings:

The “annual addition” with respect to a
Participant for a “limitation year” means the sum of the following amounts credited
to the Participant’s account(s) for the “limitation year”:

	
  

 	
  

 
	
 (a)

 	
 all employer
 contributions credited to the Participant’s account for the “limitation year”
 under any qualified defined contribution plan maintained by an Employer or a
 Related Company, including “elective contributions” (other than “elective
 contributions” to an eligible deferred compensation plan under Code Section
 457) and amounts attributable to forfeitures applied to reduce the employer’s
 contribution obligation, but excluding “catch-up contributions”;

 
	
  

 	
  

 
	
 (b)

 	
 all
 “employee contributions” credited to the Participant’s account for the
 “limitation year” under any qualified defined contribution plan maintained by
 an Employer or a Related Company or any qualified defined benefit plan maintained
 by an Employer or a Related Company if either separate accounts are
 maintained under the defined benefit plan with respect to such employee
 contributions or such contributions are mandatory employee contributions
 within the meaning of Code Section 411(c)(2)(C) (without regard to whether
 the plan is subject to the provisions of Code Section 411);

 
	
  

 	
  

 
	
 (c)

 	
 all
 forfeitures credited to the Participant’s account for the “limitation year”
 under any qualified defined contribution plan maintained by the Employer or a
 Related Company;

 
	
  

 	
  

 
	
 (d)

 	
 all amounts
 credited for the “limitation year” to an individual medical benefit account,
 as described in Code Section 415(l)(2), established for the Participant as
 part of a pension or annuity plan maintained by the Employer or a Related
 Company;

 
	
  

 	
  

 
	
 (e)

 	
 if the
 Participant is a key employee, as defined in Code Section 419A(d)(3), all
 amounts derived from contributions paid or accrued after December 31, 1985,
 in taxable years ending after that date, that are attributable to
 post-retirement medical benefits credited for the “limitation year” to the
 Participant’s separate account under a welfare benefit fund, as defined in
 Code Section 419(e), maintained by the Employer or a Related Company; and

 

	
  

 	
  

 	
  

 
	
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 (f)

 	
 all amounts
 credited to the Participant for the “limitation year” under a simplified
 employee pension.

 

Notwithstanding
the foregoing, any restorative payment made to a plan by an Employer or a
Related Company to make up for losses to the plan resulting from the action or
non-action of a fiduciary for which there is a reasonable risk of liability for
a breach of fiduciary duty under ERISA or other applicable federal or state law
shall not be treated as an annual addition provided that similarly situated participants
are treated similarly with respect to the restorative payment.

Except as
otherwise specifically provided below, an amount will be treated as credited to
a Participant’s account for a “limitation year” if such amount is both (1)
allocated to the Participant’s account as of a date within such “limitation
year” (provided that if allocation of an amount is contingent upon the
satisfaction of a future condition, such amount shall not be treated as
allocated for purposes of determining “annual additions” for a “limitation
year” until the date all such conditions are satisfied) and (2) actually
contributed to the account within the applicable period described herein. If
contributions are made after the end of the applicable period, they shall be
treated as credited to the Participant’s account for the “limitation year” in
which they are made. The applicable period for making “employee contributions”
is within 30 days of the close of the “limitation year.” The applicable period
for making employer contributions is: (i) for contributions by a taxable
entity, within 30 days of the close of the period described in Code Section
404(a)(6), as applicable to the entity’s taxable year with or within which the
“limitation year” ends; or (ii) for contributions by a non-taxable entity
(including a governmental employer) within 15 days of the last day of the 10th
calendar month following the end of the calendar year or fiscal year (as
applicable, based on how the entity maintains its books) with or within which
the “limitation year” ends.

Forfeitures
re-allocated to a Participant’s account are treated as credited to the
Participant’s account for the “limitation year” in which they are allocated to
such account. Corrective contributions and contributions required by reason of
qualified military service (as defined in Code Section 414(u)) are treated as
“annual additions” for the “limitation year” to which they relate, rather than
the “limitation year” in which they are made.

An “elective contribution” means any employer
contribution made to a plan maintained by an Employer or a Related Company on
behalf of a Participant in lieu of cash compensation pursuant to his election
(whether such election is an active election or a passive election) to defer
under any qualified CODA as described in Code Section 401(k), any simplified
employee pension cash or deferred arrangement as described in Code Section
402(h)(1)(B), or any plan as described in Code Section 501(c)(18), and any
contribution made on behalf of the Participant by an Employer or a Related
Company for the purchase of an annuity contract under Code Section 403(b)
pursuant to a salary reduction agreement. For purposes of applying the
limitations described in this Article 

	
  

 	
  

 	
  

 
	
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VII, the term
“elective contribution” includes designated Roth contributions and excludes
“catch-up contributions”.

An “employee contribution” means any employee
after-tax contribution allocated to an Eligible Employee’s account under any
qualified plan of an Employer or a Related Company.

The “415 compensation” of a Participant for any
“limitation year” means the wages as defined in Code Section 3401(a),
determined without regard to any rules that limit compensation included in
wages based on the nature or location of the employment or services performed,
and all other payments made to him by an Employer or a Related Company for such
“limitation year” for which his employer is required to furnish the Participant
a written statement under Code Sections 6041(d), 6051(a)(3), and 6052 (commonly
referred to as W-2 earnings).

Notwithstanding
any other provision of the Plan to the contrary, effective for “limitation
years” beginning on and after January 1, 2008, if a Participant has a severance
from employment (as defined in Treasury Regulations Section 1.415(a)-1(f)(5))
with the Employer and all Related Companies, “415 compensation” does not
include amounts received by the Participant following such severance from
employment except amounts paid before the later of (a) the close of the
“limitation year” in which the Participant’s severance from employment occurs
or (b) within 2 1⁄2 months of such severance if such amounts:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 are payments
 for accrued vacation or other leave, but only if the Participant would have
 been able to use such leave if his employment had continued and such amounts
 would have been includable in “415 compensation” if his employment had
 continued.

 

For purposes
of this subsection, a Participant will not be considered to have incurred a
severance from employment if his new employer continues to maintain the plan
with respect to such Participant.

Notwithstanding
the foregoing, effective on and after January 1, 2008, amounts paid by an
Employer or a Related Company to a Participant who is not performing services
for the Employer or Related Company due to qualified military service (within
the meaning of Code Section 414(u)(1)) shall be included as “415 compensation”
to the extent such amounts do not exceed the amounts the Participant would have
received if he had continued in employment with the Employer or Related
Company.

Notwithstanding
any other provision of the Plan to the contrary, if a Participant is absent
from employment as a Covered Employee to perform service in the uniformed
services (as defined in Chapter 43 of Title 38 of the United States Code), his
Compensation will include any differential pay, as defined hereunder, he
receives or is entitled to receive from his Employer. For purposes of this
paragraph, “differential pay” means any payment 

	
  

 	
  

 	
  

 
	
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made to the
Participant by the Employer after December 31, 2008, with respect to a period
during which the Participant is performing service in the uniformed services
while on active duty for a period of more than 30 days that represents all or a
portion of the wages the Participant would have received if he had continued
employment with the Employer as a Covered Employee.

To be included
in a Participant’s “415 compensation” for a particular “limitation year”, an
amount must have been received by the Participant (or would have been received,
but for the Participant’s election under Code Section 125, 132(f)(4), 401(k),
402(h)(1)(B), 403(b), 408(p)(2)(A)(i), or 457) within such “limitation year”.

In no event,
however, shall the “415 compensation” of a Participant taken into account under
the Plan for any “limitation year” exceed the limit in effect under Code
Section 401(a)(17) ($230,000 for “limitation years” beginning in 2008, subject
to adjustment annually as provided in Code Sections 401(a)(17)(B) and 415(d);
provided, however, that the dollar increase in effect on January 1 of any
calendar year, if any, is effective for “limitation years” beginning in such
calendar year). If the “415 compensation” of a Participant is determined over a
period of time that contains fewer than 12 calendar months, then the annual
compensation limitation described above shall be adjusted with respect to that
Participant by multiplying the annual compensation limitation in effect for the
Plan Year by a fraction the numerator of which is the number of full months in
the period and the denominator of which is 12; provided, however, that no
proration is required for a Participant who is covered under the Plan for fewer
than 12 months.

A “limitation year” means the Plan Year.

	
  

 	
  

 
	
 7.2

 	
 Code Section 415 Limitations on Crediting of Contributions and
 Forfeitures

 

Notwithstanding
any other provision of the Plan to the contrary, the “annual addition” with
respect to a Participant for a “limitation year” shall in no event exceed the
lesser of: (i) the maximum dollar amount permitted under Code Section
415(c)(1)(A), adjusted as provided in Code Section 415(d) (e.g., $46,000
for the “limitation year” beginning in 2008); or (ii) 100 percent of
the Participant’s “415 compensation” for the “limitation year”; provided,
however, that the limit in clause (i) shall be pro-rated for any short
“limitation year”. The limit in clause (ii) shall not apply to any contribution
to an individual medical account, as defined in Code Section 415(l), or to a
post-retirement medical benefits account maintained for a key employee which is
treated as an “annual addition” under Code Section 419A(d)(2).

The
limitations contained in this Section 7.2 shall not apply to forfeitures of
shares of Employer Stock if such shares were acquired with the proceeds of an
Exempt Loan and shall not apply to Fixed Contributions and Profit-Sharing
Contributions that are applied by the Trustee to the repayment of interest on
an Exempt Loan and are charged against the Participant’s Account. The provisions
of the preceding sentence shall apply only to a Plan Year in which no more than
one-third of Fixed Contributions and Profit-Sharing 

	
  

 	
  

 	
  

 
	
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Contributions
which are deductible under Code Section 404(a)(9) are allocated to the Accounts
of Participants who are Highly Compensated Employees.

If for any
Plan Year Fixed Contributions and Profit-Sharing Contributions are used to
repay an Exempt Loan and shares of Employer Stock are thereby released from the
Suspense Fund, the “annual additions” for the Plan Year with respect to such
shares shall be determined based upon the amount of the Fixed Contributions and
Profit-Sharing Contributions used to repay the Exempt Loan. 

If the
Employer or a Related Company participates in a multiemployer plan, in determining
whether the “annual additions” made on behalf of a Participant to the Plan,
when aggregated with “annual additions” made on the Participant’s behalf under
the multiemployer plan satisfy the above limitation, only “annual additions”
made by the Employer (or a Related Company) to the multiemployer plan shall be
aggregated with the “annual additions” under the Plan and “415 compensation”
shall include only compensation paid to the Participant by the Employer (or a
Related Company).

If the “annual
addition” to the Account of a Participant in any “limitation year” beginning on
or after January 1, 2008, nevertheless exceeds the amount that may be applied
for his benefit under the limitations described in clauses (i) and (ii) above,
correction shall be made in accordance with the Employee Plans Compliance
Resolution System, as set forth in Revenue Procedure 2008-50, or any
superseding guidance.

	
  

 	
  

 
	
 7.3

 	
 Application of Code Section 415 Limitations Where Participant is
 Covered Under Other Qualified Defined Contribution Plan

 

If a
Participant is covered by any other qualified defined contribution plan
(whether or not terminated) maintained by an Employer or a Related Company
concurrently with the Plan, and if the “annual addition” to be made under the
Plan for the “limitation year” when combined with the “annual addition” to be
made under such other qualified defined contribution plan(s) would otherwise
exceed the amount that may be applied for the Participant’s benefit under the
limitation contained in the preceding Section, the “annual addition” to be made
under the Plan shall be reduced, to the extent necessary so that the limitation
in the preceding Section is satisfied.

If the “annual
addition” to the Account of a Participant in any “limitation year” beginning on
or after January 1, 2008, when combined with the “annual addition” made under
any other qualified defined contribution plan maintained by an Employer or a
Related Company nevertheless exceeds the amount that may be applied for the
Participant’s benefit under the limitation contained in the preceding Section,
correction shall be made in accordance with the Employee Plans Compliance
Resolution System, as set forth in Revenue Procedure 2008-50, or any
superseding guidance.

	
  

 	
  

 	
  

 
	
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 7.4

 	
 Scope of Limitations

 

The Code
Section 415 limitations contained in the preceding Sections shall be applicable
only with respect to benefits provided pursuant to defined contribution plans
and defined benefit plans described in Code Section 415(k). For purposes of
applying the Code Section 415 limitations contained in the preceding Sections,
the term “Related Company” shall be adjusted as provided in Code Section
415(h).

	
  

 	
  

 
	
 7.5

 	
 Code Section 1042 Sale Limitations

 

No portion of
the Trust Fund attributable to (or allocable in lieu of) Employer Stock
acquired by the Plan after October 22, 1986 in a sale to which Code Section
1042 (or for estates of decedents who died prior to December 20, 1989, Code
Section 2057) applies may accrue or be allocated directly or indirectly under
any plan maintained by the Employer:

	
  

 	
  

 
	
 (a)

 	
 during the
 “nonallocation period”, as defined herein, for the benefit of: (1) any
 taxpayer who makes an election under Code Section 1042 with respect to
 Employer Stock (or any decedent if the executor of the decedent’s estate
 makes a qualified sale to which Code Section 2057 applies); or (2) any
 individual who is related to the taxpayer (or decedent) within the meaning of
 Code Section 267(b); or

 
	
  

 	
  

 
	
 (b)

 	
 for the
 benefit of any other person who owns (after application of Code Section
 318(a), without regard to the employee trust exception in Code Section
 318(a)(2)(B)(i)) more than 25 percent of: (1) any class of outstanding stock
 of the Employer or a Related Company which issued such Employer Stock; or (2)
 the total value of any class of outstanding stock of the Employer or any
 Related Company.

 

Notwithstanding
the foregoing, the provisions of (a)(2) above shall not apply to lineal
descendants of a taxpayer provided that the aggregate amount allocated to the benefit
of all such lineal descendants during the “nonallocation period” does not
exceed more than five percent of the Employer Stock (or amounts allocated in
lieu thereof) held by the Plan which are attributable to a sale to the Plan by
any person related to such descendants (within the meaning of Code Section
267(c)(4)) in a transaction to which Code Section 1042 or 2057 is applied.

A person shall
be treated as not satisfying the stock ownership provisions of paragraph (b)
above if such person does not satisfy such provisions: (1) at any time during
the one-year period ending on the date of sale of Employer Stock to the Plan;
or (2) on the date as of which Employer Stock is allocated to Participants in
the Plan.

For purposes of this Section,
the “nonallocation period” means the period beginning on the date of sale of
the Employer Stock and ending on the later of: (i) the date which is ten 

	
  

 	
  

 	
  

 
	
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years after the date of sale;
or (ii) the date the final payment of the Exempt Loan incurred in connection
with the sale is allocated among Eligible Employees.

	
  

 	
  

 	
  

 
	
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ARTICLE VIII

TRUST FUNDS AND ACCOUNTS

	
  

 	
  

 
	
 8.1

 	
 General Fund

 

The Trustee
shall maintain a General Fund as required to hold and administer any assets of
the Trust that are not allocated to an Investment Fund or to the Suspense Fund.
The General Fund shall be held and administered as a separate common trust
fund. The interest of each Participant or Beneficiary under the Plan in the
General Fund shall be an undivided interest. The General Fund may be invested
in whole or in part in equity securities issued by an Employer or a Related
Company that are publicly traded and are “qualifying employer securities” as
defined in ERISA Section 407(d)(5).

	
  

 	
  

 
	
 8.2

 	
 Investment Funds

 

The Sponsor
shall direct the establishment and maintenance of Investment Funds to which
contributions made on behalf of an eligible Participant may be allocated in
accordance with Article X and shall communicate the same and any changes
therein in writing to the Administrator and the Trustee. Such Investment Funds
are intended to satisfy the requirements of Code Section 401(a)(28).

Each such
Investment Fund shall be held and administered as a separate common trust fund.
The interest of each Participant or Beneficiary under the Plan in any such
Investment Fund shall be an undivided interest.

	
  

 	
  

 
	
 8.3

 	
 Employer Stock Investment Fund

 

The Sponsor
shall direct the establishment and maintenance of an Employer Stock Investment
Fund to which the following contributions shall be allocated:

	
  

 	
  

 
	
 •

 	
 Fixed
 Contributions.

 
	
  

 	
  

 
	
 •

 	
 Profit-Sharing
 Contributions.

 
	
  

 	
  

 
	
 •

 	
 Prior Money
 Purchase Plan Contributions.

 

The Employer
Stock Investment Fund shall be held and administered as a separate common trust
fund. The interest of each Participant or Beneficiary under the Plan in the
Employer Stock Investment Fund shall be an undivided interest. The Employer
Stock Investment Fund is intended to be invested primarily in Employer Stock.

	
  

 	
  

 
	
 8.4

 	
 Suspense Fund

 

The Sponsor
shall direct the establishment and maintenance of a Suspense Fund to hold all
shares of Employer Stock acquired with the proceeds of an Exempt Loan pending

	
  

 	
  

 	
  

 
	
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their release from encumbrance and allocation to Participants’ Accounts. The
Suspense Fund shall be held and administered as a separate trust fund.

	
  

 	
  

 
	
 8.5

 	
 Income on Trust

 

Any dividends,
interest, distributions, or other income received by the Trustee with respect
to any Trust Fund maintained hereunder shall be allocated by the Trustee to the
Trust Fund for which the income was received.

	
  

 	
  

 
	
 8.6

 	
 Accounts

 

As of the
first date a contribution is made by or on behalf of a Covered Employee there
shall be established an Account in his name reflecting his interest in the
Trust. Each Account shall be maintained and administered for each Participant
and Beneficiary in accordance with the provisions of the Plan. The balance of
each Account shall be the balance of the account after all credits and charges
thereto, for and as of such date, have been made as provided herein.

	
  

 	
  

 
	
 8.7

 	
 Sub-Accounts

 

A
Participant’s Account shall be divided into such separate, individual
Sub-Accounts as are necessary or appropriate to reflect the Participant’s
interest in the Trust.

	
  

 	
  

 
	
 8.8

 	
 Company Stock Holding Account

 

Notwithstanding
any other provision of the Plan, the Sponsor shall direct the establishment and
maintenance of a Company Stock Holding Account. Subject to the rules stated
below, the Trustee shall allocate to the Company Stock Holding Account all
monthly purchases of Employer Stock that are intended to fund an annual
Employer Contribution obligation. The Company Stock Holding Account shall be
established and maintained as follows:

	
  

 	
  

 
	
 (a)

 	
 The Sponsor
 shall send the Trustee a wire on the first and fifteenth days of each month
 (or on the next business day should any such date fall on a day in which the
 New York Stock Exchange is closed).

 
	
  

 	
  

 
	
 (b)

 	
 Pursuant to
 the instructions received with a wire, the Trustee shall purchase Employer
 Stock prior to the respective 12:00 p.m. cut-off time, using the stated
 execution price.

 
	
  

 	
  

 
	
 (c)

 	
 All shares
 of Employer Stock purchased pursuant to this Section 8.7 shall be held in the
 Company Stock Holding Account, until the annual allocation of Employer
 Contributions takes place.

 

	
  

 	
  

 	
  

 
	
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 (d)

 	
 The Trustee
 shall receive written direction from the Sponsor as of the end of each Plan
 Year, indicating the date on which the annual allocation of shares of
 Employer Stock will take place for such Plan Year. Included in such written
 direction shall be the number of shares to be released from the Company Stock
 Holding Account and allocated among the Accounts of Eligible Employees (i.e.,
 whether all, or just a specific portion of the, shares in the Company Stock
 Holding Account will be so allocated). 

 
	
  

 	
  

 
	
 (e)

 	
 The Trustee
 shall use the execution price and applicable Employer Contribution allocation
 formula when allocating previously purchased shares of Employer Stock from
 the Company Stock Holding Account to the Accounts of Eligible Employees. 

 

	
  

 	
  

 	
  

 
	
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ARTICLE
IX

LIFE INSURANCE CONTRACTS

	
  

 	
  

 
	
 9.1

 	
 No Life Insurance Contracts

 

A Participant’s Account may not
be invested in life insurance contracts on the life of the Participant.

	
  

 	
  

 	
  

 
	
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ARTICLE X

DEPOSIT AND INVESTMENT OF CONTRIBUTIONS

	
  

 	
  

 
	
 10.1

 	
 Investment and Deposit of Certain Contributions

 

Subject to the
diversification requirements of Section 10.2, all contributions to the Plan,
including Prior Money Purchase Plan Contributions, are required to be invested
in the Employer Stock Investment Fund.

Upon
contribution to the Plan, all such contributions shall be deposited in the
Trust and allocated to the Employer Stock Investment Fund.

	
  

 	
  

 
	
 10.2

 	
 Election to Transfer Employer Contributions to an Investment Fund
 (Diversification)

 

Provided that
his Account balance exceeds $500, an active or terminated Employee who has
attained age 55 and completed ten years of participation shall be eligible each
Plan Year during the “qualified election period” to elect at any time to
transfer any portion, up to 50% of the balance of his Account to one or more of
the alternative Investment Funds established pursuant to Section 8.2. 

The Employee’s
transfer election shall specify a percentage, in the increments prescribed by
the Administrator, of his Account that is to be transferred, which percentage
may not, in the aggregate, exceed 50 percent for any Plan Year during the
“qualified election period.” Any
transfer election must be recorded with the Administrator, in such form as the
Administrator shall prescribe. Subject
to any restrictions pertaining to a particular Investment Fund, if recorded in
accordance with any rules prescribed by the Administrator, an Employee’s transfer
election may be implemented effective as of the business day on which the
Administrator receives the Employee’s instructions. If an Employee elects to transfer any portion, or all, of his
Account to an alternative Investment Fund, he may not thereafter elect to
transfer such amount back to the Employer Stock Investment Fund.

This Section
10.2 is intended to satisfy the requirements of Code Section 401(a)(28).

For the
purposes of this Section, the “qualified election period” means the
six-Plan-Year period beginning with the first Plan Year in which the Employee
is eligible to make a transfer pursuant to this Section 10.2.

	
  

 	
  

 
	
 10.3

 	
 Exercise of Voting Rights with Respect to Employer Stock

 

If the
Employer has a registration-type class of securities or, with respect to
Employer Stock acquired by, or transferred to, the Plan in connection with a
securities acquisition loan (as defined in Code Section 133(b)) after July 10,
1989, but before August 20, 1996, 

	
  

 	
  

 	
  

 
	
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each
Participant or his Beneficiary, if the Participant has died, shall be entitled
to direct the Trustee as to the manner in which the Employer Stock which is
entitled to vote and which is allocated to the Participant’s Fixed
Contributions, Prior Money Purchase Plan Contributions, and Profit-Sharing
Contributions Sub-Accounts is to be voted.

If more than
ten percent of total Plan assets are invested in Employer Stock and the
Employer does not have a registration-type class of securities, with respect to
Employer Stock other than Employer Stock acquired by, or transferred to, the
Plan in connection with a securities acquisition loan (as defined in Code
Section 133(b)) after July 10, 1989, but before August 20, 1996, each
Participant or Beneficiary in the Plan shall be entitled to direct the Trustee
as to the manner in which voting rights on such shares of Employer Stock that
are allocated to the Participant’s Fixed Contributions, Prior Money Purchase
Plan Contributions, and Profit-Sharing Contributions Sub-Accounts are to be
exercised with respect to any corporate matter which involves the voting of
such shares with respect to the approval or disapproval of any corporate merger
or consolidation, recapitalization, reclassification, liquidation, dissolution,
sale of substantially all assets of a trade or business, or such similar transaction
as prescribed in regulations.

If the
Employer does not have a registration-type class of securities and the by-laws
of the Employer require the Plan to vote an issue in a manner that reflects a
one-man, one-vote philosophy, each Participant or Beneficiary shall be entitled
to cast one vote on an issue and the Trustee shall vote the shares held by the
Plan in proportion to the results of the votes cast on the issue by the
Participants and Beneficiaries.

The Trustee
shall be entitled to exercise, in such a manner as the Trustee deems
appropriate, all voting rights attributable to Employer Stock: (a) which is
held unallocated in the Suspense Fund; or (b) which is allocated to a
Participant’s Account and for which the Plan proffers pass-through voting rights
in accordance with the foregoing provisions of this Section, but for which the
Trustee does not receive any written direction from the Participant as to the
manner in which votes shall be cast with respect to such shares. The Trustee
shall also be entitled to exercise, in such manner as the Trustee deems
appropriate, voting rights attributable to Employer Stock, whether allocated to
Participants’ Accounts or held unallocated in the Suspense Fund, with respect
to all matters not subject to direction by Participants.

If any
agreement entered into by the Trust provides for voting of any shares of
Employer Stock pledged as security for any obligation of the Plan, then such
shares of Employer Stock shall be voted in accordance with such agreement.

For purposes
of this Section the term “registration-type class of securities” means:

	
  

 	
  

 
	
 (a)

 	
 a class of
 securities required to be registered under Section 12 of the Securities
 Exchange Act of 1934; and

 

	
  

 	
  

 	
  

 
	
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 (b)

 	
 a class of
 securities which would be required to be so registered except for the
 exemption from registration provided in subsection (g)(2)(H) of such Section
 12 of such Act.

 

	
  

 	
  

 	
  

 
	
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ARTICLE XI

CREDITING AND VALUING ACCOUNTS

	
  

 	
  

 
	
 11.1

 	
 Crediting Accounts

 

All
contributions made under the provisions of the Plan shall be credited to
Accounts in the Trust Funds by the Trustee, in accordance with procedures
established in writing by the Administrator, either when received or on the
succeeding Valuation Date after valuation of the Trust Fund has been completed
for such Valuation Date as provided in Section 11.2, as shall be determined by
the Administrator. 

	
  

 	
  

 
	
 11.2

 	
 Valuing Accounts

 

Accounts in
the Trust Funds shall be valued by the Trustee on the Valuation Date, in
accordance with procedures established in writing by the Administrator, either
in the manner adopted by the Trustee and approved by the Administrator or in
the manner set forth in Section 11.3 as Plan valuation procedures, as
determined by the Administrator.

	
  

 	
  

 
	
 11.3

 	
 Plan Valuation Procedures

 

With respect
to the Trust Funds, the Administrator may determine that the following
valuation procedures shall be applied. As of each Valuation Date hereunder, the
portion of any Accounts in a Trust Fund shall be adjusted to reflect any increase
or decrease in the value of the Trust Fund for the period of time occurring
since the immediately preceding Valuation Date for the Trust Fund (the
“valuation period”) in the following manner:

	
  

 	
  

 
	
 (a)

 	
 First, the
 value of the Trust Fund shall be determined by valuing all of the assets of
 the Trust Fund at fair market value.

 
	
  

 	
  

 
	
 (b)

 	
 Next, the
 net increase or decrease in the value of the Trust Fund attributable to net
 income and all profits and losses, realized and unrealized, during the
 valuation period shall be determined on the basis of the valuation under
 paragraph (a) taking into account appropriate adjustments for contributions,
 loan payments, and transfers to and distributions, withdrawals, loans, and
 transfers from such Trust Fund during the valuation period.

 
	
  

 	
  

 
	
 (c)

 	
 Finally, the
 net increase or decrease in the value of the Trust Fund shall be allocated
 among Accounts in the Trust Fund in the ratio of the balance of the portion
 of such Account in the Trust Fund as of the preceding Valuation Date less any
 distributions, withdrawals, loans, and transfers from such Account balance in
 the Trust Fund since the Valuation Date to the aggregate balances of the
 portions of all Accounts in the Trust Fund similarly adjusted, and each
 Account in the Trust Fund shall be credited or charged with the amount of its
 allocated share. 

 

	
  

 	
  

 	
  

 
	
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 Notwithstanding
 the foregoing, the Administrator may adopt such accounting procedures as it
 considers appropriate and equitable to establish a proportionate crediting of
 net increase or decrease in the value of the Trust Fund for contributions,
 loan payments, and transfers to and distributions, withdrawals, loans, and
 transfers from such Trust Fund made by or on behalf of a Participant during
 the valuation period.

 

	
  

 	
  

 
	
 11.4

 	
 Finality of Determinations

 

The Trustee
shall have exclusive responsibility for determining the value of each Account
maintained hereunder. The Trustee’s determinations thereof shall be conclusive
upon all interested parties.

	
  

 	
  

 
	
 11.5

 	
 Notification

 

Within a
reasonable period of time after the end of each Plan Year quarter, the
Administrator shall notify each Participant and Beneficiary of the value of his
Account and Sub-Accounts as the most recent Valuation Date.

	
  

 	
  

 
	
 11.6

 	
 Disposition of Cash Dividends on Shares Allocated to Fixed
 Contributions, Prior Money Purchase Plan Contributions, and Profit-Sharing
 Contributions Sub-Accounts

 

Cash dividends
on Employer Stock held in a Participant’s Fixed Contributions, Prior Money
Purchase Plan Contributions, and Profit-Sharing Contributions Sub-Accounts
shall, in the discretion of the Administrator, be:

	
  

 	
  

 
	
 (a)

 	
 credited to
 the Participant’s Account;

 
	
  

 	
  

 
	
 (b)

 	
 used to
 repay an Exempt Loan; or

 
	
  

 	
  

 
	
 (c)

 	
 paid in cash
 to the Participant or the Participant’s Beneficiary. If payment is to be made in cash to the
 Participant or the Participant’s Beneficiary, the Administrator shall direct
 the Employer to pay the dividends either:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 in cash
 directly to Participants, former Participants, and Beneficiaries in
 proportion to their respective interests in the Employer Stock Investment
 Fund attributable to Fixed Contributions, Prior Money Purchase Plan
 Contributions, and Profit-Sharing Contributions as of the record date for
 such dividends, as described in Code Section 404(k); or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 in cash to
 the Trustee for distribution to the Participants, former Participants, and
 Beneficiaries.

 

	
  

 	
  

 	
  

 
	
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If cash
dividends are paid directly to the Trustee for distribution pursuant to
paragraph (c)(ii) above, the Trustee shall distribute such dividends in cash to
Participants, former Participants, and Beneficiaries in proportion to their
respective interests in the Employer Stock Investment Fund attributable to
Fixed Contributions, Prior Money Purchase Plan Contributions, and
Profit-Sharing Contributions as of the record date for such dividends, which
distribution shall be made based on a schedule determined by the Administrator,
but not later than 90 days after the close of the Plan Year in which such
dividends are paid.

If cash
dividends are used to repay an Exempt Loan pursuant to paragraph (b) above,
Employer Stock shall be released from the Suspense Fund and allocated to a
Participant’s Account in the ratio that the Participant’s total number of
shares of Employer Stock sharing in such cash dividends that are attributable
to Fixed Contributions and Profit-Sharing Contributions bears to the aggregate
number of shares of such Employer Stock of all Participants. Employer Stock
allocated to a Participant’s Account hereunder shall have a fair market value
not less than the amount of cash dividends that would have been distributable
to the Participant pursuant to paragraph (c) above.

	
  

 	
  

 
	
 11.7

 	
 Disposition of Income Earned on Unallocated Employer Stock

 

Any income earned with respect
to Employer Stock held in the Suspense Account may be used, at the discretion
of the Administrator, to repay an Exempt Loan.
Employer Stock that is released from encumbrance with respect to such
income and any such income that is not used to repay an Exempt Loan shall be
allocated as of the Valuation Date in the ratio that a Participant’s Fixed
Contributions and Profit-Sharing Contributions Sub-Accounts balance after the
allocation of all other earnings and losses bears to the aggregate Fixed
Contributions and Profit-Sharing Contributions Sub-Accounts balances of all
Participants after the allocation of all other earnings and losses.

	
  

 	
  

 	
  

 
	
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ARTICLE XII 

LOANS

	
  

 	
  

 
	
 12.1

 	
 No Loans 

 
	
  

 	
  

 
	
 There shall
 be no loans made to Participants from the Plan.

 

	
  

 	
  

 	
  

 
	
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ARTICLE XIII 

WITHDRAWALS WHILE EMPLOYED

	
  

 	
  

 
	
 13.1

 	
 No In-Service Withdrawals 

 
	
  

 	
  

 
	
 Except as
 otherwise specifically provided in Article XV, no Participant who is employed
 by an Employer or a Related Company shall be eligible to withdraw any portion
 of his Account under the Plan.

 

	
  

 	
  

 	
  

 
	
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ARTICLE XIV 

TERMINATION OF EMPLOYMENT AND SETTLEMENT DATE

	
  

 	
  

 
	
 14.1

 	
 Termination of Employment and Settlement Date 

 
	
  

 	
  

 
	
 A
 Participant’s Settlement Date shall occur on the date he terminates
 employment with the Employers and all Related Companies because of death,
 disability, retirement, or other termination of employment. Written notice of
 a Participant’s Settlement Date shall be given by the Administrator to the
 Trustee.

 

	
  

 	
  

 	
  

 
	
 14.2

 	
 Separate Accounting for Non-Vested Amounts 

 
	
  

 	
  

 	
  

 
	
 If as of a
 Participant’s Settlement Date the Participant’s vested interest in his
 Employer Contributions Sub-Account is less than 100 percent, that portion of
 his Employer Contributions Sub-Account that is not vested shall be accounted
 for separately from the vested portion and shall be disposed of as provided
 in the following Section. If prior to such Settlement Date the Participant
 received a distribution under the Plan and the non-vested portion of his
 Employer Contributions Sub-Account was not forfeited as provided in the
 following Section and the Participant elected not to repay to the Plan the
 full amount of such distribution, his vested interest in his Employer
 Contributions Sub-Account shall be an amount (“X”) determined by the
 following formula: 

 
	
  

 	
  

 	
  

 
	
 X = P(AB +
 D) - D

 
	
  

 	
  

 
	
 For purposes
 of the formula:

 
	
  

 	
  

 	
  

 
	
  

 	
 P   =

 	
 The
 Participant’s vested interest in his Employer Contributions Sub-Account on
 the date distribution is to be made. 

 
	
  

 	
  

 	
  

 
	
  

 	
 AB=

 	
 The balance
 of the Participant’s Employer Contributions Sub-Account as of the Valuation
 Date immediately preceding the date distribution is to be made. 

 
	
  

 	
  

 	
  

 
	
  

 	
 D   =

 	
 The amount
 of all prior distributions from the Participant’s Employer Contributions
 Sub-Account. 

 
	
  

 	
  

 	
  

 
	
 14.3

 	
 Disposition of Non-Vested Amounts 

 
	
  

 	
  

 	
  

 
	
 That portion
 of a Participant’s Employer Contributions Sub-Account that is not vested upon
 the occurrence of his Settlement Date shall be disposed of as follows:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 If the
 Participant has no vested interest in his Account upon the occurrence of his
 Settlement Date or his vested interest in his Account as of the date of
 distribution does not exceed $5,000 resulting in the distribution or deemed
 distribution to the 

 

	
  

 	
  

 	
  

 
	
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 Participant
 of his entire vested interest in his Account, the non-vested balance in the
 Participant’s Employer Contributions Sub-Account shall be forfeited and his
 Account closed as of the date the Participant first incurs a 1-year Break in
 Service following (i) the Participant’s Settlement Date, if the Participant
 has no vested interest in his Account and is therefore deemed to have
 received distribution on that date, or (ii) the date actual distribution is
 made to the Participant. 

 
	
  

 	
  

 
	
 (b)

 	
 If the
 Participant’s vested interest in his Account exceeds $5,000 and the
 Participant is eligible for and consents in writing to a single sum payment
 of his vested interest in his Account, the non-vested balance in the
 Participant’s Employer Contributions Sub-Account shall be forfeited and his
 Account closed as of the date the Participant first incurs a 1-year Break in
 Service following his receipt of the single sum payment, provided that such
 distribution is made because of the Participant’s Settlement Date. A
 distribution is deemed to be made because of a Participant’s Settlement Date
 if it occurs prior to the end of the second Plan Year beginning on or after
 the Participant’s Settlement Date. 

 
	
  

 	
  

 
	
 (c)

 	
 If neither
 paragraph (a) nor paragraph (b) is applicable, the non-vested balance
 remaining in the Participant’s Employer Contributions Sub-Account shall
 continue to be held in such Sub-Account and shall not be forfeited until the
 date the Participant incurs 5-consecutive Breaks in Service. 

 
	
  

 	
  

 
	
 14.4

 	
 Treatment of Forfeited Amounts 

 
	
  

 	
  

 
	
 Whenever the
 non-vested balance of a Participant’s Employer Contributions Sub-Account is
 forfeited during a Plan Year in accordance with the provisions of the
 preceding Section, such forfeiture shall be allocated among Participants’
 Accounts in accordance with the provisions of the following Section.

 
	
  

 	
  

 
	
 14.5

 	
 Allocations of Forfeitures 

 
	
  

 	
  

 
	
 Forfeited
 amounts that are required to be allocated among Participants’ Accounts in accordance
 with the preceding Section shall be allocated among the Accounts of
 Participants who are Eligible Employees during the Plan Year for which the
 forfeiture is being allocated as follows:

 
	
  

 	
  

 
	
 (a)

 	
 To receive
 an allocation of forfeitures attributable to Fixed or Profit-Sharing
 Contributions hereunder, a Participant must: (i) be employed as a
 Covered Employee on the last day of the Plan Year; and (ii) have completed at least
 1,000 Hours of Service during the Plan Year. The number of Hours of Service
 required to receive an allocation of forfeitures hereunder shall be pro rated
 for any short Plan Year. Notwithstanding any other provision of the Plan to the
 contrary, the last day and annual service allocation requirements described
 above shall not apply to an Eligible Employee who terminates employment
 during the Plan Year 

 

	
  

 	
  

 	
  

 
	
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 on or after
 his Normal or Early Retirement Date, or because of death or becoming
 Disabled. 

 
	
  

 	
  

 
	
 (b)

 	
 Forfeitures
 attributable to Fixed or Profit-Sharing Contributions shall be allocated in
 the ratio which an eligible Participant’s Compensation for the Plan Year from
 the Employers bears to the aggregate of such Compensation for all such
 eligible Participants. 

 
	
  

 	
  

 
	
 (c)

 	
 Forfeitures
 attributable to Fixed and Profit-Sharing Contributions that are to be
 credited to a Participant’s Account hereunder shall be credited,
 respectively, to his Fixed and Profit-Sharing Contributions Sub-Accounts. A
 Participant’s vested interest in amounts attributable to forfeitures
 allocated to his Fixed and Profit-Sharing Contributions Sub-Accounts
 hereunder shall be determined under the vesting schedule applicable to Fixed
 and Profit-Sharing Contributions. 

 
	
  

 	
  

 
	
 (d)

 	
 Notwithstanding
 the foregoing, prior to allocating forfeitures attributable to Fixed and
 Profit-Sharing Contributions among Participants’ Accounts, such forfeited
 amounts shall be applied against Plan expenses. The forfeited amounts to be
 allocated among Participants’ Accounts shall be reduced by any such amounts
 that are applied against Plan expenses as provided herein. 

 
	
  

 	
  

 
	
 14.6

 	
 Recrediting of Forfeited Amounts 

 
	
  

 	
  

 
	
 A former
 Participant who forfeited the non-vested portion of his Employer
 Contributions Sub-Account in accordance with the provisions of paragraph (a)
 or (b) of the above Section entitled “Disposition of Non-Vested Amounts” and
 who is reemployed by an Employer or a Related Company shall have such
 forfeited amounts recredited to a new Account in his name, without adjustment
 for interim gains or losses experienced by the Trust, if he returns to
 employment with an Employer or a Related Company before he incurs
 5-consecutive Breaks in Service commencing after the date he received, or is
 deemed to have received, distribution of his vested interest in his Account.
 Funds needed in any Plan Year to recredit the Account of a Participant with
 the amounts of prior forfeitures in accordance with the preceding sentence
 shall come first from forfeitures that arise during such Plan Year, and then
 from Trust income earned in such Plan Year, to the extent that it has not yet
 been allocated among Participants’ Accounts as provided in Article XI, with
 each Trust Fund being charged with the amount of such income proportionately,
 unless his Employer chooses to make an additional Employer Contribution, and
 shall finally be provided by his Employer by way of a separate Employer
 Contribution.

 
	
  

 	
  

 
	
 A former
 Participant who received an actual distribution and who returns to employment
 within the time period described above may elect to repay to the Plan the
 full amount of such distribution before the earlier of (i) the end of the
 5-year period beginning on the date he is reemployed or (ii) the date he
 incurs 5-consecutive Breaks in Service

 

	
  

 	
  

 	
  

 
	
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 commencing
 after the date he received, or is deemed to have received, distribution of
 his vested interest in his Account. 

 

	
  

 	
  

 	
  

 
	
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ARTICLE XV

DISTRIBUTIONS

	
  

 	
  

 
	
 15.1

 	
 Distributions to Normal Retirees and Disabled Participants

 

Subject to the
provisions of the Section below entitled “Code Section 401(a)(9) Requirements,”
a Participant whose Settlement Date occurs on or after his Normal Retirement
Date or the date he becomes Disabled shall, with the written consent of his
Spouse, receive distribution of his vested interest in his Account in the form
provided under Article XVI beginning as soon as reasonably practicable
following his Settlement Date or the date his application for distribution is
filed with the Administrator, if later.

Notwithstanding
the foregoing, pursuant to Code Sections 401(a)(14) and 409(o), if the
Participant and, if applicable pursuant to Code Sections 401(a)(11) and 417,
with the consent of the Participant’s Spouse, elects the distribution of the
Participant’s Account, other than his Prior Money Purchase Plan Contributions
Sub-Account, then the distribution of such Account balance shall commence not
later than one year after the close of the Plan Year in which the Participant
makes such election following a separation from service, except that this
provision shall not apply if the Participant is reemployed by the Employer
before distribution is required to begin under this provision.

	
  

 	
  

 
	
 15.2

 	
 Distributions to Participants Who Terminate Employment Prior to
 Normal Retirement Date

 

Subject to the
provisions of the Section below entitled “Code Section 401(a)(9) Requirements,”
a Participant whose Settlement Date occurs prior to his Normal Retirement Date,
for reasons other than death or becoming Disabled, may elect, with the written
consent of his Spouse, to receive distribution of his vested interest in his
Account in the form provided under Article XVI beginning as soon as reasonably
practicable following the earlier of: (1) the date on which the Participant
first incurs a Break in Service; or (2) his Normal Retirement Date.

Notwithstanding
the foregoing, pursuant to Code Sections 401(a)(14) and 409(o), if the
Participant and, if applicable pursuant to Code Sections 401(a)(11) and 417,
with the consent of the Participant’s Spouse, elects the distribution of the
Participant’s Account, other than his Prior Money Purchase Plan Contributions
Sub-Account, then the distribution of such Account balance shall commence not
later than one year after the close of the Plan Year in which the Participant
makes such election following a separation from service, except that this
provision shall not apply if the Participant is reemployed by the Employer
before distribution is required to begin under this provision.

	
  

 	
  

 	
  

 
	
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 15.3

 	
 Partial Distributions to Retired or Terminated Participants

 

A Participant
whose Settlement Date has occurred, but who has not reached his Required
Beginning Date may elect, with the written consent of his Spouse, to receive
distribution of all or any portion of his Account at any time prior to his
Required Beginning Date in a cash withdrawal or in any other form provided in
Article XVI or the Addendum.

	
  

 	
  

 
	
 15.4

 	
 Distributions to Beneficiaries

 

Subject to the
provisions of the Section below entitled “Code Section 401(a)(9) Requirements,”
if a Participant dies prior to his Benefit Payment Date, his Beneficiary shall
receive distribution of the Participant’s vested interest in his Account in the
form provided under Article XVI beginning as soon as reasonably practicable
following the date the Beneficiary’s application for distribution is filed with
the Administrator. If distribution is to be made to a Participant’s Spouse, it
shall be made available within a reasonable period of time after the
Participant’s death that is no less favorable than the period of time
applicable to other distributions. 

If a
Participant dies after the date distribution of his vested interest in his
Account begins under this Article, but before his entire vested interest in his
Account is distributed, his Beneficiary shall receive distribution of the
remainder of the Participant’s vested interest in his Account beginning as soon
as reasonably practicable following the Participant’s date of death.

	
  

 	
  

 
	
 15.5

 	
 Code Section 401(a)(9) Requirements

 

The provisions
of this Section take precedence over any inconsistent provision of the Plan;
provided, however, that the provisions of this Section are not intended to
create additional forms of payment that are not otherwise provided under
Article XVI.

To the extent
required under Code Section 401(a)(9), all distributions made from the Plan
shall be determined and made in accordance with the provisions of Code Section
401(a)(9) and the Treasury Regulations issued thereunder, as set forth in this
Section. If distribution is made through the purchase of an annuity contract,
as provided in the Addendum, the terms of such annuity contract shall satisfy
the requirements of Code Section 401(a)(9) and the Treasury Regulations issued
thereunder. 

	
  

 	
  

 
	
 (a)

 	
 A
 Participant’s vested interest in his Account shall be distributed, or begin
 to be distributed to the Participant no later than the Participant’s Required
 Beginning Date.

 
	
  

 	
  

 
	
 (b)

 	
 Following
 the Participant’s Required Beginning Date, the minimum amount that will be
 distributed for each “distribution calendar year”, up to and including the
 “distribution calendar year” that includes the Participant’s date of death,
 is the lesser of:

 

	
  

 	
  

 	
  

 
	
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 (i)

 	
 the quotient
 obtained by dividing the Participant’s “mrd account balance” by the
 distribution period in the Uniform Lifetime Table set forth in Section
 1.401(a)(9)-9, Q & A-2 of the Treasury Regulations, using the
 Participant’s age as of the Participant’s birthday in the “distribution
 calendar year” or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 if the
 Participant’s sole “designated beneficiary” for a “distribution calendar
 year” is the Participant’s Spouse, the quotient obtained by dividing the
 Participant’s “mrd account balance” by the number in the Joint and Last
 Survivor Table set forth in Section 1.401(a)(9)-9, Q & A-3 of the
 Treasury Regulations, using the Participants and Spouse’s attained ages as of
 the Participant’s and Spouse’s birthdays in the “distribution calendar year”.

 

	
  

 	
  

 
	
 (c)

 	
 If a
 Participant dies on or after his Required Beginning Date, but before his
 vested interest in his Account has been distributed in full, the remainder of
 the Participant’s vested Account balance shall be distributed, or begin to be
 distributed to the Participant’s Beneficiary as soon as reasonably
 practicable following the Participant’s death.

 
	
  

 	
  

 
	
 (d)

 	
 The minimum
 amount that will be distributed to a Participant’s Beneficiary for each
 “distribution calendar year” following the year in which the Participant’s
 death occurs is:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If the
 Participant’s Beneficiary is a “designated beneficiary”, the quotient
 obtained by dividing the Participant’s “mrd account balance” by the longer
 of:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
 the remaining
 life expectancy of the Participant, calculated using the age of the
 Participant in the year of death, reduced by one for each subsequent year or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 the
 remaining life expectancy of the “designated beneficiary”, calculated as
 provided in (1) or (2) below, as applicable.

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (1)

 	
 If the
 Participant’s Spouse is his sole “designated beneficiary”, the Spouse’s
 remaining life expectancy is calculated for each “distribution calendar year”
 using the surviving Spouse’s age as of the Spouse’s birthday during that
 calendar year. For “distribution calendar years” after the year of the
 surviving Spouse’s death, the remaining life expectancy 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 year.

 

	
  

 	
  

 	
  

 
	
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 (2)

 	
 If the
 Participant’s Spouse is not the sole “designated beneficiary”, the
 “designated beneficiary’s” remaining life expectancy is calculated for each
 “distribution calendar year” using his age in the calendar year following the
 Participant’s death, reduced by one for each subsequent year.

 

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If the
 Participant’s Beneficiary is not a “designated beneficiary” (determined as of
 September 30 of the calendar year following the year of the Participant’s
 death), the quotient obtained by dividing the Participant’s “mrd account
 balance” by the Participant’s remaining life expectancy calculated using the
 age of the Participant in the calendar year of death, reduced by one for each
 subsequent year.

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 Minimum
 distribution amounts shall be determined using the Uniform Lifetime Table set
 forth in Section 1.401(a)(9)-9 of the Treasury Regulations and the Joint and
 Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury
 Regulations.

 

	
  

 	
  

 
	
 (e)

 	
 If a
 Participant dies before his Required Beginning Date and before his vested
 interest in his Account has been distributed in full, the Participant’s
 vested Account balance shall be distributed or begin to be distributed as
 provided below:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If
 distribution is to be made in a single sum payment, distribution shall be
 made no later than December 31 of the calendar year containing the 5th
 anniversary of the Participant’s death; provided, however, that if the Participant’s
 Spouse is his sole “designated beneficiary” with respect to all or any
 portion of the Participant’s vested Account, the Spouse may elect to postpone
 payment until December 31 of the calendar year in which the Participant would
 have attained age 70 1/2, if later. The Spouse’s election to defer payment
 must be made no later than September 30 of the calendar year that contains
 the 5th anniversary of the Participant’s death. If a Participant’s
 “designated beneficiary” does not wish to receive payment in a single sum,
 but would prefer to receive minimum payments as provided in the following
 paragraph, the Participant’s “designated beneficiary” must notify the
 Administrator of his election no later than September 30 of the calendar year
 following the calendar year of the Participant’s death; provided, however,
 that if the Participant’s Spouse is his sole “designated beneficiary” with
 respect to all or any portion of the Participant’s vested Account, the Spouse
 must notify the Administrator of her election no later than September 30 of
 the calendar year in which minimum distributions would be required to
 commence to the Participant’s Spouse under this Section or, if earlier,
 September 30 of the calendar year that contains the 5th anniversary of the
 Participant’s death. 

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
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 (ii)

 	
 If
 distribution is to be made to a Participant’s “designated beneficiary” in a
 form other than a single sum payment, distribution shall be made in
 accordance with the following requirements:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
 Distribution
 shall commence to the Participant’s “designated beneficiary” no later than
 December 31 of the calendar year following the calendar year of the
 Participant’s death; provided, however, that if the Participant’s Spouse is
 his sole “designated beneficiary” with respect to all or any portion of the
 Participant’s vested Account, the Spouse may elect to postpone commencement
 until December 31 of the calendar year in which the Participant would have
 attained age 70 1/2, if later. The Spouse’s election to defer payment must be
 made no later than September 30 of the calendar year following the calendar
 year of the Participant’s death.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 The minimum
 amount that will be distributed to the “designated beneficiary” for each
 “distribution calendar year” during the “designated beneficiary’s” lifetime
 is the quotient obtained by dividing the Participant’s “mrd account balance”
 by the “designated beneficiary’s” remaining life expectancy.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (C)

 	
 The
 “designated beneficiary’s” remaining life expectancy is determined for the
 first “distribution calendar year” using the Single Life Table in Section
 1.401(a)(9)-9, Q & A-1 of the Treasury Regulations, and the “designated
 beneficiary’s” age as of his or her birthday in the calendar year immediately
 following the calendar year of the Participant’s death. In subsequent
 “distribution calendar years,” the “designated beneficiary’s” remaining life
 expectancy is determined as follows:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (1)

 	
 If the
 Participant’s Spouse is not the Participant’s sole “designated beneficiary,”
 the “life expectancy” determined above is reduced by one for each calendar
 year that has elapsed after the calendar year immediately following the
 calendar year of the Participant’s death.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (2)

 	
 If the
 Participant’s surviving Spouse is the Participant’s sole “designated
 beneficiary,” the “designated beneficiary’s” remaining “life expectancy”
 shall be re-determined for each subsequent “distribution calendar year” using
 the Single Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations,
 and the “designated beneficiary’s” age as of the “designated beneficiary’s”
 birthday in the “distribution calendar year.”

 

	
  

 	
  

 	
  

 
	
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 (iii)

 	
 A
 Participant’s Spouse qualifies as the Participant’s sole “designated
 beneficiary” if she is entitled to the Participant’s entire vested interest
 in his Account or his entire vested interest in a segregated portion of the
 Participant’s Account and no other “designated beneficiary” is entitled to
 any portion of that interest unless the Spouse dies prior to receiving full
 distribution of that interest.

 
	
  

 
	
  

 	
 (iv)

 	
 If the
 Participant’s Spouse is a sole “designated beneficiary” with respect to all
 or any portion of the Participant’s interest and the Spouse dies after the
 Participant but before distributions to the Spouse begin, the rules described
 above shall be applied with respect to the interest for which the Spouse was
 the sole “designated beneficiary,” substituting the date of the Spouse’s
 death for the date of the Participant’s death.

 
	
  

 
	
  

 	
 (v)

 	
 If there is
 no “designated beneficiary” as of September 30 of the calendar year following
 the calendar year of the Participant’s death, the Participant’s entire
 interest will be distributed by December 31 of the calendar year containing
 the 5th anniversary of the Participant’s death.

 

	
  

 	
  

 
	
 (f)

 	
 For purposes
 of this Section the following terms have the following meanings:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 A
 Participant’s “designated beneficiary”
 means the individual who is the Participant’s Beneficiary under Article XVII
 of the Plan and is the designated beneficiary under Code Section 401(a)(9)
 and Treasury Regulations Section 1.401(a)(9)-4.

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 A “distribution calendar year” means a
 calendar year for which a minimum payment is required. The first year for
 which a minimum payment is required depends on whether distribution begins
 before or after the Participant’s death. If distribution begins before the
 Participant’s death, the first “distribution calendar year” is the calendar
 year immediately preceding the calendar year that contains the Participant’s
 Required Beginning Date. If distribution begins after the Participant’s
 death, the first “distribution calendar year” is the calendar year in which
 distributions are required to begin under paragraph (c) of this Section.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The required
 minimum payment for the Participant’s first “distribution calendar year” must
 be made on or before the Participant’s Required Beginning Date. The required
 minimum payment for other “distribution calendar years,” including the
 required minimum payment for the “distribution calendar year” in which the
 Participant’s Required Beginning Date occurs, must be made on or before
 December 31 of that “distribution calendar year.”

 

	
  

 	
  

 	
  

 
	
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 (iii)

 	
 A
 Participant’s “mrd account balance”
 means the Participant’s Account balance as of the last Valuation Date in the
 calendar year immediately preceding the “distribution calendar year” (the
 “valuation calendar year”), adjusted as follows:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
 Such Account
 balance shall be 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 Such Account
 balance shall be 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.” 

 

	
  

 	
  

 
	
 15.6

 	
 Cash Outs and Participant Consent

 

Notwithstanding
any other provision of the Plan to the contrary, if a Participant’s vested
interest in his Account does not exceed $5,000, distribution of such vested
interest shall be made to the Participant in a single sum payment or through a
direct rollover, as described in Article XVI, as soon as reasonably practicable
following his Settlement Date. 

If a
Participant has no vested interest in his Account on his Settlement Date, he
shall be deemed to have received distribution of such vested interest on his
Settlement Date.

If a
Participant’s vested interest in his Account exceeds $5,000, distribution shall
not commence to such Participant prior to his Normal Retirement Date without
the Participant’s written consent and the written consent of his Spouse.
Notwithstanding the foregoing, spousal consent shall not be required if
distribution is made through the purchase of a Qualified Joint and Survivor
Annuity or the Spouse cannot be located or spousal consent cannot be obtained
for other reasons set forth in Code Section 401(a)(11) and regulations issued
thereunder.

If a
Participant’s Account is subject to the “automatic annuity” provisions
specified in the Addendum, the Participant’s vested interest in his Account
shall be deemed to exceed $5,000 if the Participant’s Benefit Payment Date has
occurred with respect to amounts currently held in his Account and as of such
Benefit Payment Date his vested interest in his Account exceeded $5,000.

	
  

 	
  

 	
  

 
	
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 15.7

 	
 Automatic Rollover of Mandatory Distributions

 

If
distribution of a Participant’s vested interest is to be made to a Participant
as provided in the preceding Section before the later of the Participant’s
Normal Retirement Date or the date the Participant attains age 62, and the
amount of such vested interest exceeds $1,000, distribution of such vested
interest shall be made through a direct rollover to an individual retirement
plan selected by the Administrator, unless the Participant affirmatively elects
distribution in a single sum payment or through a direct rollover to an
“eligible retirement plan” (as defined in Code Section 402(c)(8)(B), modified
as provided in Code Section 401(a)(31)(E)) specified by the Participant. Any
distribution made to a Participant’s surviving Spouse or other Beneficiary or
to an alternate payee under a qualified domestic relations order shall not be
subject to the automatic rollover provisions described in the preceding sentence.

	
  

 	
  

 
	
 15.8

 	
 Required Commencement of Distribution

 

Unless the
Participant elects a later date, distribution of his vested interest in his
Account shall commence to the Participant no later than 60 days after the close
of the Plan Year in which occurs the latest of (i) the Participant’s Normal
Retirement Date, (ii) the Participant’s attainment of age 65, (iii) the tenth
anniversary of the year in which the Participant commenced participation, or
(iv) the Participant’s Settlement Date. A Participant who does not make
application for his benefit to commence shall be deemed to have elected to
postpone distribution hereunder.

	
  

 	
  

 
	
 15.9

 	
 Reemployment of a Participant

 

If a
Participant whose Settlement Date has occurred is reemployed by an Employer or
a Related Company, he shall lose his right to any distribution or further
distributions from the Trust arising from his prior Settlement Date and his
interest in the Trust shall thereafter be treated in the same manner as that of
any other Participant whose Settlement Date has not occurred.

	
  

 	
  

 
	
 15.10

 	
 Restrictions on Alienation

 

Except as
provided in Code Section 401(a)(13) (relating to qualified domestic relations
orders), Code Section 401(a)(13)(C) and (D) (relating to offsets ordered or
required under a criminal conviction involving the Plan, a civil judgment in
connection with a violation or alleged violation of fiduciary responsibilities
under ERISA, or a settlement agreement between the Participant and the
Department of Labor in connection with a violation or alleged violation of
fiduciary responsibilities under ERISA), Treasury Regulations Section
1.401(a)-13(b)(2) (relating to Federal tax levies and judgments), or as
otherwise required by law, no benefit under the Plan at any time shall be
subject in any manner to anticipation, alienation, assignment (either at law or
in equity), encumbrance, garnishment, levy, execution, or other legal or
equitable process; and no person shall have power in any manner to anticipate,
transfer, assign (either at law or in equity),

	
  

 	
  

 	
  

 
	
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alienate or subject to
attachment, garnishment, levy, execution, or other legal or equitable process,
or in any way encumber his benefits under the Plan, or any part thereof, and
any attempt to do so shall be void.

	
  

 	
  

 
	
 15.11

 	
 Facility of Payment

 

If the
Administrator finds that any individual to whom an amount is payable hereunder
is incapable of attending to his financial affairs because of any mental or
physical condition, including the infirmities of advanced age, such amount may,
in the discretion of the Administrator, be paid to such individual’s court
appointed guardian or to another person with a valid power of attorney. The
Trustee shall make such payment only upon receipt of written instructions to
such effect from the Administrator. Any such payment shall be charged to the
Account from which the payment would otherwise have been paid to the individual
found incapable of attending to his financial affairs and shall be a complete
discharge of any liability therefor under the Plan.

If distribution
is to be made to a minor Beneficiary, the Administrator may, in its discretion,
pay the amount to a duly qualified guardian or other legal representative, to
an adult relative under the applicable state Uniform Gifts to Minors Act, as
custodian, or to a trust that has been established for the benefit of the
minor. Any such payment shall be charged to the Account from which the payment
would otherwise have been paid to the minor and shall be a complete discharge
of any liability therefor under the Plan.

	
  

 	
  

 
	
 15.12

 	
 Inability to Locate Payee and Non-Negotiated Checks

 

If any benefit
becomes payable to any person, or to the executor or administrator of any
deceased person, and if that person or his executor or administrator does not
present himself to the Administrator within a reasonable period after the
Administrator mails written notice of his eligibility to receive a distribution
hereunder to his last known address and makes such other diligent effort to
locate the person as the Administrator determines, such as (1) providing a
distribution notice to the lost Participant at his/her last known address by
certified mail, (2) use of the Internal Revenue Service letter forwarding
program under IRS Revenue Procedure 94-22, (3) use of a commercial locater service,
the internet or other general search method, or (4) use of the Social Security
Administration search program, that benefit will be forfeited. However, if the
payee later files a claim for that benefit, the benefit will be restored
without adjustment for gains or losses.

If a
distribution check has been issued and is outstanding for more than 180 days
and the Administrator has been unable to locate the payee after diligent
efforts have been made to do so, then except as specifically directed by the Administrator,
the amount of the check shall be re-deposited to the Plan and forfeited.
However, if the payee is subsequently located, the check amount will be
restored to an Account established on the payee’s behalf, without adjustment
for investment gains or losses since the date of issuance.

	
  

 	
  

 	
  

 
	
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Any amount
forfeited under this Section shall be applied against the Employer Contribution
obligations for any subsequent Contribution Period of the Employer for which
the Participant last performed services as an Employee or against Plan
expenses, as directed by the Administrator. Notwithstanding the foregoing,
however, should the amount of all such forfeitures for any Contribution Period
with respect to any Employer exceed the amount of such Employer’s Employer
Contribution obligations for the Contribution Period, the excess amount of such
forfeitures shall be held unallocated in a suspense account established with
respect to the Employer and shall be applied against Plan expenses and the
Employer’s Employer Contribution obligations for the following Contribution
Period.

	
  

 	
  

 
	
 15.13

 	
 Distribution Pursuant to Qualified Domestic Relations Orders

 

Notwithstanding any other
provision of the Plan to the contrary, if a qualified domestic relations order
so provides, distribution may be made to an alternate payee pursuant to a
qualified domestic relations order, as defined in Code Section 414(p),
regardless of whether the Participant’s Settlement Date has occurred or whether
the Participant is otherwise entitled to receive a distribution under the Plan.

	
  

 	
  

 	
  

 
	
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ARTICLE XVI

FORM OF PAYMENT

	
  

 	
  

 
	
 16.1

 	
 Applicability

 

Subject to the
provisions of the Addendum regarding prior protected forms of payment, the
provisions of this Article shall apply to all Participants and Beneficiaries
eligible to receive a distribution under the Plan.

	
  

 	
  

 
	
 16.2

 	
 Normal Form of Payment

 

The provisions
of this Section do not apply to postpone distribution to a Participant or his
Beneficiary beyond the date required under the terms of the Plan other than
this Section, but shall apply only to the extent they accelerate the time of
distribution.

Subject to the
provisions of the Addendum providing annuity payments with respect to a
Participant’s Prior Money Purchase Plan Contributions Sub-Account, unless a
Participant or Beneficiary elects distribution in accordance with Section 16.3,
distributions from a Participant’s Account shall be made to the Participant or
his Beneficiary in installments over a period equal to: (a) five years, with
respect to a Participant whose vested interest in his Account does not exceed
$935,000 (subject to adjustment annually as provided in Code Sections 409(o)(2)
and 415(d)); or (b) five years plus one additional year (to a maximum of five
additional years) for each $185,000 (subject to adjustment annually as provided
in Code Sections 409(o)(2) and 415 (d)), or fraction thereof, by which the
Participant’s vested interest in his Account exceeds $935,000 (subject to
adjustment annually as provided in Code Sections 409(o)(2) and 415 (d)).
Notwithstanding the foregoing, distribution may be made pursuant to a more
rapid distribution schedule elected by the Participant or his Beneficiary if
the Administrator determines, based on non-discretionary standards that take
into account the available liquid assets of the Employer and the Trust Fund,
that such schedule can be met.

Each
installment shall be equal in amount except as necessary to adjust for any
changes in the value of the Participant’s Account.

	
  

 	
  

 
	
 16.3 

 	
 Optional Forms of Payment 

 

A Participant,
or his Beneficiary, as the case may be, may elect to receive distribution of
all or a portion of his Account in one of the following forms:

	
  

 	
  

 
	
 (a)

 	
 in a single
 sum cash payment; or

 
	
  

 	
  

 
	
 (b)

 	
 in a series
 of annual installments over a specified period. Payments hereunder must
 satisfy the distribution requirements described in the Section of Article XV
 entitled “Code Section 401(a)(9) Requirements.” Each installment shall be
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 in amount
 except as necessary to adjust for any changes in the value of the
 Participant’s Account, unless the Participant elects a more rapid
 distribution schedule.

 
	
  

 	
  

 
	
 16.4

 	
 Change of Election

 

A Participant or Beneficiary
who has elected an optional form of payment may revoke or change his election
at any time prior to his Benefit Payment Date by filing his election with the
Administrator in the form prescribed by the Administrator. There is no limit on
the number of elections or revocations a Participant or his Beneficiary may
make prior to his Benefit Payment Date.

	
  

 	
  

 
	
 16.5

 	
 Direct Rollover

 

Notwithstanding any other
provision of the Plan to the contrary, in lieu of receiving distribution in a
form of payment provided under this Article, a “qualified distributee” may
elect in writing, in accordance with rules prescribed by the Administrator, to
have a portion or all of any “eligible rollover distribution” paid directly by
the Plan to the “eligible retirement plan” designated by the “qualified
distributee”. Any such payment by the Plan to another “eligible retirement
plan” shall be a direct rollover.

Notwithstanding the foregoing,
a “qualified distributee” may not elect a direct rollover with respect to an
“eligible rollover distribution” if the total value of the “eligible rollover
distributions” expected to be made to the “qualified distributee” for the year
is less than $200 or with respect to a portion of an “eligible rollover
distribution” if the value of such portion is less than $500.

For purposes of this Section,
the following terms have the following meanings:

	
  

 	
  

 
	
 (a)

 	
 An “eligible
 retirement plan” with respect to a “qualified distributee” who is the
 Participant, his surviving Spouse, or his Spouse or former Spouse who is an
 alternate payee under a qualified domestic relations order means any of the
 following: (i) an individual retirement account described in Code Section
 408(a); (ii) an individual retirement annuity described in Code Section
 408(b); (iii) an annuity plan described in Code Section 403(a) that accepts
 rollovers; (iv) a qualified trust described in Code Section 401(a) that accepts
 rollovers, (v) an annuity contract described in Code Section 403(b) that
 accepts rollovers; (vi) 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; or (vii) effective for distributions made on or after January 1, 2009,
 a Roth IRA, as described in Code Section 408A, provided, that for
 distributions made prior to January 1, 2010, such rollover shall be subject
 to the limitations contained in Code Section 408A(c)(3)(B).

 

	
  

 	
  

 	
  

 
	
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 Effective
 January 1, 2009, an “eligible retirement plan” with respect to a “qualified
 distributee” other than the Participant, his surviving Spouse, or his Spouse
 or former Spouse who is an alternate payee under a qualified domestic
 relations order, means either an individual retirement account described in
 Code Section 408(a) or an individual retirement annuity described in Code
 Section 408(b) (an “IRA”). Such IRA must be treated as an IRA inherited from
 the deceased Participant by the “qualified distributee” and must be
 established in a manner that identifies it as such.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 An “eligible
 rollover distribution” means any distribution of all or any portion of the
 balance of a Participant’s Account; provided, however, that an eligible
 rollover distribution does not include the following:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

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

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 A “qualified
 distributee” means a Participant, his surviving Spouse, or his Spouse or
 former Spouse who is an alternate payee under a qualified domestic relations
 order, as defined in Code Section 414(p). Effective January 1, 2010, a
 “qualified distributee” includes a Participant’s non-Spouse Beneficiary who
 is his designated beneficiary within the meaning of Code Section
 401(a)(9)(E).

 
	
  

 	
  

 	
  

 
	
 16.6

 	
 Notice Regarding Forms of Payment

 

Within the
60-day period ending 30 days before a Participant’s Benefit Payment Date, the
Administrator shall provide the Participant with a written explanation of his
right to defer distribution until his Normal Retirement Date, or such later
date as may be provided in the Plan, his right to make a direct rollover, the
forms of payment provided under the Plan, and the consequences of consenting to
a current distribution rather than deferring payment to his Normal Retirement
Date. Distribution of the Participant’s Account may commence fewer than 30 days
after such notice is provided to the Participant if (i) the Administrator
clearly informs the Participant of his right to consider his election of
whether or not to make a direct rollover or to receive a distribution prior to
his Normal Retirement Date and his form of payment for a period of at least 30
days following his receipt of the notice and (ii) the Participant, after
receiving the notice, affirmatively elects an early distribution.

	
  

 	
  

 	
  

 
	
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 16.7

 	
 Reemployment

 

If a Participant is reemployed
by an Employer or a Related Company prior to receiving distribution of the
entire balance of his vested interest in his Account, his prior election of a
form of payment hereunder shall become ineffective.

	
  

 	
  

 
	
 16.8

 	
 Distribution in the Form of Employer Stock

 

Notwithstanding any other provision of the Plan to the contrary, to the
extent that his Fixed Contributions, Prior Money Purchase Plan Contributions,
and Profit-Sharing Contributions are invested in Employer Stock on the date
distribution is to be made to a Participant, the Participant may elect to
receive distribution of all or a portion of the fair market value of such
contributions in the form of Employer Stock, unless the Employer’s charter or
by-laws restrict ownership of Employer Stock to employees and the Trust Fund.
Distribution in the form of Employer Stock shall be made in whole shares only.
Partial shares shall be distributed in cash.

The by-laws or articles of
incorporation of the Employer may restrict the sale or transfer of Employer
Stock distributed from the Plan, provided that such restrictions apply to all
Employer Stock of the same class. If such Employer Stock is subject to a right
of first refusal, in no event may the Employer pay a price for such Employer
Stock that is less than the price offered by any third party making a bona fide
offer and in no event shall the Trust pay a price less than the fair market
value of the Employer Stock.

	
  

 	
  

 
	
 16.9

 	
 Put Option

 

If distribution is made from a Participant’s Employer Contributions
Sub-Account to the Participant or his Beneficiary of Employer Stock that is not
readily tradable on an established securities market or of Employer Stock
acquired with the proceeds of an Exempt Loan that is subject to a trading
limitation, such Employer Stock shall be subject to the put option described in
this Section. Employer Stock is subject to a “trading limitation” if it is
subject to a restriction under Federal or State securities law or any
regulation thereunder, or under an agreement that would make the Employer Stock
less freely tradable than stock not subject to such restriction.

The put option shall be
exercisable during the 60-day period beginning the day following the date the
Employer Stock is distributed to the Participant, or his Beneficiary, if
applicable. If the put option is not exercised within such period, the
Participant, or his Beneficiary, if applicable, shall have an additional 60-day
period beginning the first day of the Plan Year following the date the Employer
Stock is distributed (or, if later, the first day following the end of the
initial 60-day period, as provided in regulations issued by the Secretary of
the Treasury) in which to exercise the put option. However, in the case of
Employer Stock that is publicly traded without restriction when distributed but
ceases to be so traded within either of the 60-day periods described herein
after distribution, the Employer must notify each holder of such Employer Stock
in writing on or before the

	
  

 	
  

 	
  

 
	
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tenth day
after the date the Employer Stock ceases to be so traded that for the remainder
of the applicable 60-day period the Employer Stock is subject to the put
option. The number of days between the tenth day and the date on which notice
is actually given, if later than the tenth day, must be added to the duration
of the put option. The notice must inform distributees of the term of the put option
that they are to hold. The terms must satisfy the requirements of this Section.

The put option
is exercised by the holder notifying the Employer in writing that the put
option is being exercised. The notice shall state the name and address of the
holder and the number of shares to be sold. The period during which a put
option is exercisable does not include any time when a distributee is unable to
exercise it because the party bound by the put option is prohibited from
honoring it because of applicable Federal or State law. The price at which a
put option must be exercisable is the fair market value of the Employer Stock.

Payment under
a put option involving a “total distribution”, as defined herein, shall be paid
in substantially equal monthly, quarterly, semiannual, or annual installments
over a period certain beginning not later than 30 days after the exercise of
the put option and not extending beyond five years. Payment may be deferred if
adequate security and a reasonable rate of interest on the unpaid amounts are
provided. For purposes of this Section, a “total distribution” means a
distribution to a Participant or his Beneficiary within one taxable year of the
Participant’s entire vested interest in his Account.

Payment under
a put option involving installment distributions must be paid not later than 30
days after the exercise of the put option. 

Payment under
a put option may not be restricted by the provisions of a loan or any other
arrangement, including the terms of the Employer’s articles of incorporation,
unless so required by applicable state law. 

	
  

 	
  

 	
  

 
	
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ARTICLE
XVII

BENEFICIARIES

	
  

 	
  

 
	
 17.1

 	
 Designation of Beneficiary

 

The
Beneficiary of a Participant who does not have a Spouse shall be the person or
persons designated by such Participant in accordance with rules prescribed by
the Administrator. The Beneficiary of a Participant who has a Spouse shall be
his Spouse, unless the Participant designates a person or persons other than
his Spouse as Beneficiary with the written consent of his Spouse. For purposes
of this Section, a Participant shall be treated as not having a Spouse and such
Spouse’s consent shall not be required if the Participant does not have a
Spouse on his Benefit Payment Date. A Participant’s designation of a Beneficiary
shall be subject to the Qualified Preretirement Survivor Annuity provisions
described in the Addendum. 

If no
Beneficiary has been designated pursuant to the provisions of this Section, or
if no Beneficiary survives the Participant and he has no surviving Spouse, then
the Beneficiary under the Plan shall be the deceased Participant’s lineal
descendents, per stirpes, including his legally adopted children. If there are
no such surviving lineal descendants, then the Beneficiary under the Plan shall
be the deceased Participant’s lineal ascendants, per capita. If there are no
such surviving lineal ascendants, then the Beneficiary under the Plan shall be
the deceased Participant’s estate.

If a
Beneficiary dies after becoming entitled to receive a distribution under the
Plan but before distribution is made to him in full, and if the Participant has
not designated another Beneficiary to receive the balance of the distribution
in that event, the estate of the deceased Beneficiary shall be the Beneficiary
as to the balance of the distribution. 

	
  

 	
  

 
	
 17.2

 	
 Spousal Consent Requirements

 

Any written
consent given by a Participant’s Spouse pursuant to this Article must
acknowledge the effect of the action taken and must be witnessed by a Plan
representative or a notary public. In addition, the Spouse’s written consent
must either (i) specify any non-Spouse Beneficiary designated by the
Participant and that such Beneficiary may not be changed without the Spouse’s
written consent or (ii) acknowledge that the Spouse has the right to limit
consent to a specific Beneficiary, but permit the Participant to change the
designated Beneficiary without the Spouse’s further consent. A Participant’s
Spouse will be deemed to have given written consent to the Participant’s
designation of Beneficiary if the Participant establishes to the satisfaction
of a Plan representative that such consent cannot be obtained because the
Spouse cannot be located or because of other circumstances set forth in Section
401(a)(11) of the Code and regulations issued thereunder. Any written consent
given or deemed to have been given by a Participant’s Spouse hereunder shall be
valid only with respect to the Spouse who signs the consent.

	
  

 	
  

 	
  

 
	
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 17.3

 	
 Revocation of Beneficiary Designation Upon Divorce

 

Notwithstanding any other
provision of this Article XVII to the contrary, if a Participant designates his
or her Spouse as Beneficiary under the Plan, such designation shall
automatically become null and void as of the date of any final divorce or
similar decree or order unless either (i) the Participant re-designates such
former Spouse as his or her Beneficiary after the date of the final decree or
order or (ii) such former Spouse is designated as the Participant’s Beneficiary
under a qualified domestic relations order; provided, however, that such former
Spouse shall be the Participant’s Beneficiary under this clause (ii) only to
the extent required in accordance with the qualified domestic relations order.

	
  

 	
  

 	
  

 
	
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ARTICLE XVIII 

ADMINISTRATION

	
  

 	
  

 
	
 18.1

 	
 Authority of the Sponsor 

 
	
  

 	
  

 
	
 The Sponsor,
 which shall be the administrator for purposes of ERISA and the plan
 administrator for purposes of the Code, shall be responsible for the
 administration of the Plan and, in addition to the powers and authorities
 expressly conferred upon it in the Plan, shall have all such powers and
 authorities as may be necessary to carry out the provisions of the Plan,
 including the power and authority to interpret and construe the provisions of
 the Plan, to make benefit determinations, and to resolve any disputes which
 arise under the Plan. The Sponsor may employ such attorneys, agents, and
 accountants as it may deem necessary or advisable to assist in carrying out
 its duties hereunder. The Sponsor shall be a “named fiduciary” as that term
 is defined in ERISA Section 402(a)(2). The Sponsor, by action of its board of
 directors, may: 

 
	
  

 	
  

 
	
 (a)

 	
 allocate any
 of the powers, authority, or responsibilities for the operation and
 administration of the Plan (other than trustee responsibilities as defined in
 ERISA Section 405(c)(3)) among named fiduciaries; and 

 
	
  

 	
  

 
	
 (b)

 	
 designate a
 person or persons other than a named fiduciary to carry out any of such
 powers, authority, or responsibilities; 

 
	
  

 	
  

 
	
 except that
 no allocation by the Sponsor of, or designation by the Sponsor with respect
 to, any of such powers, authority, or responsibilities to another named
 fiduciary or a person other than a named fiduciary shall become effective
 unless such allocation or designation shall first be accepted by such named
 fiduciary or other person in a writing signed by it and delivered to the
 Sponsor. 

 
	
  

 	
  

 
	
 The Sponsor
 shall also have the authority and discretion to engage an Administrative
 Delegate who shall perform, without discretionary authority or control,
 administrative functions within the framework of policies, interpretations,
 rules, practices, and procedures made by the Sponsor or other “named
 fiduciary”. Any action made or taken by the Administrative Delegate may be appealed
 by an affected Participant to the Sponsor in accordance with the claims
 review procedure as provided in Section 18.4. Any decisions which call for
 interpretations of plan provisions not previously made by the Sponsor shall
 be made only by the Sponsor. The Administrative Delegate shall not be
 considered a fiduciary with respect to the services it provides. 

 
	
  

 	
  

 
	
 18.2

 	
 Discretionary Authority 

 
	
  

 	
  

 
	
 In carrying
 out its duties under the Plan, including making benefit determinations,
 interpreting or construing the provisions of the Plan, making factual
 determinations, and resolving disputes, the Sponsor (or any individual to
 whom authority has been delegated 

 

	
  

 	
  

 	
  

 
	
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 in
 accordance with Section 18.1, other than the Administrative Delegate) shall
 have absolute discretionary authority. The decision of the Sponsor (or any
 individual to whom authority has been delegated in accordance with Section
 18.1, other than the Administrative Delegate) shall be final and binding on
 all persons and entitled to the maximum deference allowed by law. 

 
	
  

 	
  

 
	
 18.3

 	
 Action of the Sponsor 

 
	
  

 	
  

 
	
 Any act
 authorized, permitted, or required to be taken under the Plan by the Sponsor
 and which has not been delegated in accordance with Section 18.1, may be
 taken by a majority of the members of the board of directors of the Sponsor,
 either by vote at a meeting, or in writing without a meeting, or by the
 employee or employees of the Sponsor designated by the board of directors to
 carry out such acts on behalf of the Sponsor. All notices, advice,
 directions, certifications, approvals, and instructions required or
 authorized to be given by the Sponsor under the Plan shall be in writing and
 signed by either (i) a majority of the members of the Sponsor’s board of
 directors or by such member or members as may be designated by an instrument
 in writing, signed by all the members thereof, as having authority to execute
 such documents on its behalf, or (ii) the employee or employees authorized to
 act for the Sponsor in accordance with the provisions of this Section. 

 
	
  

 	
  

 
	
 18.4

 	
 Claims Review Procedure 

 
	
  

 	
  

 
	
 Except to
 the extent that the provisions of any collective bargaining agreement provide
 another method of resolving claims for benefits under the Plan, the
 provisions of this Section shall control whenever a claim for benefits under
 the Plan filed by any person (referred to in this Section as the “Claimant”)
 is denied. The provisions of this Section shall also control whenever a
 Claimant seeks a remedy under any provision of ERISA or other applicable law
 in connection with any error regarding his Account (including a failure or
 error in implementing investment directions) and such claim is denied. 

 
	
  

 	
  

 
	
 Whenever a
 claim under the Plan is denied, whether in whole or in part, the Sponsor
 shall transmit a written notice of such decision to the Claimant within 90
 days of the date the claim was filed or, if special circumstances require an
 extension, within 180 days of such date, which notice shall be written in a
 manner calculated to be understood by the Claimant and shall contain a
 statement of (i) the specific reasons for the denial of the claim, (ii)
 specific reference to pertinent Plan provisions on which the denial is based,
 (iii) a description of any additional material or information necessary for
 the Claimant to perfect the claim and an explanation of why such information
 is necessary, (iv) that the Claimant is entitled to receive, upon request and
 free of charge, reasonable access to, and copies of, all documents, (v)
 records and other information relevant to the Claimant’s claim, a description
 of the review procedures and in the event of an adverse review decision, a
 statement describing any voluntary review procedures and the Claimant’s right
 to obtain copies of such procedures, and (vi) a statement that there is no
 further administrative review following the initial review, and that the
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 bring a
 civil action under ERISA Section 502(a) if the Sponsor’s decision on review
 is adverse to the Claimant. The notice shall also include a statement
 advising the Claimant that, within 60 days of the date on which he receives
 such notice, he may obtain review of such decision in accordance with the
 procedures hereinafter set forth. Within such 60-day period, the Claimant or
 his authorized representative may request that the claim denial be reviewed
 by filing with the Sponsor a written request therefor, which request shall
 contain the following information: 

 
	
  

 	
  

 
	
 (a)

 	
 the date on
 which the Claimant’s request was filed with the Sponsor; provided, however,
 that the date on which the Claimant’s request for review was in fact filed
 with the Sponsor shall control in the event that the date of the actual
 filing is later than the date stated by the Claimant pursuant to this
 paragraph; 

 
	
  

 	
  

 
	
 (b)

 	
 the specific
 portions of the denial of his claim which the Claimant requests the Sponsor
 to review; 

 
	
  

 	
  

 
	
 (c)

 	
 a statement
 by the Claimant setting forth the basis upon which he believes the Sponsor
 should reverse the previous denial of his claim for benefits and accept his
 claim as made; and 

 
	
  

 	
  

 
	
 (d)

 	
 any written
 material (offered as exhibits) which the Claimant desires the Sponsor to
 examine in its consideration of his position as stated pursuant to paragraph
 (c) of this Section. 

 
	
  

 	
  

 
	
 Within 60
 days of the date determined pursuant to paragraph (a) of this Section or, if
 special circumstances require an extension, within 120 days of such date, the
 Sponsor shall conduct a full and fair review of the decision denying the
 Claimant’s claim for benefits and shall render its written decision on review
 to the Claimant. The Sponsor’s decision on review shall be written in a
 manner calculated to be understood by the Claimant and shall specify the
 reasons and Plan provisions upon which the Sponsor’s decision was based. 

 
	
  

 	
  

 
	
 Notwithstanding
 the foregoing, special procedures apply for processing claims and reviewing
 prior claim determinations if a Claimant’s claim for benefits is contingent
 upon a determination as to whether a Participant is Disabled under the Plan. 

 
	
  

 	
  

 
	
 18.5

 	
 Special Rules Applicable to Claims Related to Investment Errors 

 
	
  

 	
  

 
	
 Any person
 alleging that there has been a failure or error in implementing investment
 directions with respect to a Participant’s Account must file a claim with the
 Administrator on or before the earlier of: (a) 60 days from the mailing of a
 trade confirmation, account statement, or any other document, from which the
 error can be discovered; or (b) one year from the date of the transaction
 related to the error. Any claim filed outside of such period shall be limited
 to the benefit that would have been 

 

	
  

 	
  

 	
  

 
	
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 determined
 if the claim were timely filed, and therefore any adjustments shall be
 calculated for such period only. 

 
	
  

 	
  

 
	
 18.6

 	
 Exhaustion of Remedies 

 
	
  

 	
  

 
	
 No civil
 action for benefits under the Plan shall be brought unless and until the
 aggrieved person has: (a) submitted a timely claim for benefits in accordance
 with this Article; (b) been notified by the Administrator that the claim has
 been denied; (c) filed a written request for a review of the claim in
 accordance with the preceding Section; (d) been notified in writing of an
 adverse benefit determination on review; and (e) filed the civil action
 within 1 years of the date he receives a final adverse determination of his
 claim on review. 

 
	
  

 	
  

 
	
 18.7

 	
 Qualified Domestic Relations Orders 

 
	
  

 	
  

 
	
 The Sponsor
 shall establish reasonable procedures to determine the status of domestic
 relations orders and to administer distributions under domestic relations orders
 which are deemed to be qualified orders. Such procedures shall be in writing
 and shall comply with the provisions of Code Section 414(p) and regulations
 issued thereunder. 

 
	
  

 	
  

 
	
 18.8

 	
 Indemnification 

 
	
  

 	
  

 
	
 In addition
 to whatever rights of indemnification the members of the Sponsor’s board of
 directors or any employee or employees of the Sponsor to whom any power,
 authority, or responsibility is delegated pursuant to Section 18.3, may be
 entitled under the articles of incorporation or regulations of the Sponsor,
 under any provision of law, or under any other agreement, the Sponsor shall
 satisfy any liability actually and reasonably incurred by any such person or
 persons, including expenses, attorneys’ fees, judgments, fines, and amounts
 paid in settlement (other than amounts paid in settlement not approved by the
 Sponsor), in connection with any threatened, pending or completed action,
 suit, or proceeding which is related to the exercising or failure to exercise
 by such person or persons of any of the powers, authority, responsibilities,
 or discretion as provided under the Plan, or reasonably believed by such
 person or persons to be provided hereunder, and any action taken by such
 person or persons in connection therewith, unless the same is judicially determined
 to be the result of such person or persons’ gross negligence or willful
 misconduct. 

 
	
  

 	
  

 
	
 18.9

 	
 Prudent Man Standard of Care 

 
	
  

 	
  

 
	
 The Trustee,
 the Sponsor and any other fiduciary under the Plan shall discharge his duties
 under the Plan solely in the interests of Participants and Beneficiaries and,
 in accordance with the requirements of ERISA Section 404(a)(1)(B), with the
 care, skill, prudence, and diligence under the prevailing circumstances that
 a prudent man acting in a like capacity and familiar with such matters would
 use in conducting an enterprise of like character with like aims. 

 

	
  

 	
  

 	
  

 
	
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 18.10

 	
 Actions Binding 

 
	
  

 	
  

 
	
 Subject to
 the provisions of Section 18.4, any action taken by the Sponsor which is
 authorized, permitted, or required under the Plan shall be final and binding
 upon the Employers, the Trustee, all persons who have or who claim an
 interest under the Plan, and all third parties dealing with the Employers or
 the Trustee. 

 

	
  

 	
  

 	
  

 
	
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ARTICLE XIX 

AMENDMENT AND TERMINATION

	
  

 	
  

 
	
 19.1

 	
 Amendment by Plan Sponsor 

 
	
  

 	
  

 
	
 Subject to
 the provisions of Section 19.2, the Sponsor may at any time and from time to
 time, by action of its board of directors, or such officers of the Sponsor as
 are authorized by its board of directors, amend the Plan, either
 prospectively or retroactively. Any such amendment shall be by written
 instrument executed by the Sponsor. 

 
	
  

 	
  

 
	
 19.2

 	
 Limitation on Amendment 

 
	
  

 	
  

 
	
 Except as
 otherwise required by law, no amendment shall be made to the Plan that decreases
 the accrued benefit of any Participant or Beneficiary, except that nothing
 contained herein shall restrict the right to amend the provisions of the Plan
 relating to the administration of the Plan and Trust. Moreover, no such
 amendment shall be made hereunder which shall permit any part of the Trust to
 revert to an Employer or any Related Company or be used or be diverted to
 purposes other than the exclusive benefit of Participants and Beneficiaries.
 The Sponsor shall make no retroactive amendment to the Plan unless such
 amendment satisfies the requirements of Code Section 401(b) and/or Treasury
 Regulations Section 1.401(a)(4)-11(g), as applicable. 

 
	
  

 	
  

 
	
 19.3

 	
 Termination 

 
	
  

 	
  

 
	
 The Sponsor
 reserves the right, by action of its board of directors, to terminate the
 Plan as to all Employers at any time (the effective date of such termination
 being hereinafter referred to as the “termination date”). Upon any such
 termination of the Plan, the following actions shall be taken for the benefit
 of Participants and Beneficiaries: 

 
	
  

 	
  

 
	
 (a)

 	
 As of the
 termination date, each Investment Fund shall be valued and all Accounts and
 Sub-Accounts shall be adjusted in the manner provided in Article XI, with any
 unallocated contributions or forfeitures being allocated as of the termination
 date in the manner otherwise provided in the Plan. The termination date shall
 become a Valuation Date for purposes of Article XI. In determining the net
 worth of the Trust, there shall be included as a liability such amounts as
 shall be necessary to pay all expenses in connection with the termination of
 the Trust and the liquidation and distribution of the property of the Trust,
 as well as other expenses, whether or not accrued, and shall include as an
 asset all accrued income. 

 
	
  

 	
  

 
	
 (b)

 	
 All Accounts
 shall then be disposed of to or for the benefit of each Participant or
 Beneficiary in accordance with the provisions of Article XV as if the
 termination date were his Settlement Date; provided, however, that
 notwithstanding the provisions of Article XV, if the Plan does not offer an
 annuity option and if 

 

	
  

 	
  

 	
  

 
	
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 neither his
 Employer nor a Related Company establishes or maintains another defined
 contribution plan (other than an employee stock ownership plan as defined in
 Code Section 4975(e)(7)), the Participant’s written consent to the
 commencement of distribution shall not be required regardless of the value of
 the vested portions of his Account. 

 
	
  

 	
  

 
	
 Notwithstanding
 anything to the contrary contained in the Plan, upon any such Plan termination,
 the vested interest of each Participant and Beneficiary in his Employer
 Contributions Sub-Account shall be 100 percent; and, if there is a partial
 termination of the Plan, the vested interest of each Participant and
 Beneficiary who is affected by the partial termination in his Employer
 Contributions Sub-Account shall be 100 percent. For purposes of the preceding
 sentence only, the Plan shall be deemed to terminate automatically if there
 shall be a complete discontinuance of contributions hereunder by all
 Employers. 

 
	
  

 	
  

 
	
 19.4

 	
 Inability to Locate Payee on Plan Termination 

 
	
  

 	
  

 
	
 If
 distribution of a Participant’s Account is to be made to the Participant, his
 Beneficiary, or an alternate payee under a qualified domestic relations order
 (a “payee”) on account of the termination of the Plan, and such payee does
 not present himself to the Administrator within a reasonable period after the
 Administrator mails written notice of his eligibility to receive a
 distribution hereunder to his last known address and makes such other
 diligent effort to locate the person as the Administrator determines,
 distribution of such Account shall be made at the direction of the
 Administrator through a direct rollover to an individual retirement plan
 established on behalf of the payee with a provider selected by the
 Administrator, purchase of an annuity contract on behalf of the payee, or
 transfer to another “eligible retirement plan”, as defined in the Section of
 Article XVI entitled “Direct Rollovers”. 

 
	
  

 	
  

 
	
 19.5

 	
 Reorganization 

 
	
  

 	
  

 
	
 The merger,
 consolidation, or liquidation of any Employer with or into any other Employer
 or a Related Company shall not constitute a termination of the Plan as to
 such Employer. 

 
	
  

 	
  

 
	
 19.6

 	
 Withdrawal of an Employer 

 
	
  

 	
  

 
	
 An Employer
 other than the Sponsor may withdraw from the Plan at any time upon notice in
 writing to the Administrator (the effective date of such withdrawal being
 hereinafter referred to as the “withdrawal date”), and shall thereupon cease
 to be an Employer for all purposes of the Plan. An Employer shall be deemed
 automatically to withdraw from the Plan in the event of its complete
 discontinuance of contributions, or, subject to Section 19.6 and unless the
 Sponsor otherwise directs, it ceases to be a Related Company of the Sponsor
 or any other Employer. Upon the withdrawal of an Employer, the withdrawing
 Employer shall determine whether a partial termination has occurred 

 

	
  

 	
  

 	
  

 
	
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 with respect
 to its Employees. In the event that the withdrawing Employer determines a
 partial termination has occurred, the action specified in Section 19.4 shall
 be taken as of the withdrawal date, as on a termination of the Plan, but with
 respect only to Participants who are employed solely by the withdrawing
 Employer, and who, upon such withdrawal, are neither transferred to nor
 continued in employment with any other Employer or a Related Company. The
 interest of any Participant employed by the withdrawing Employer who is
 transferred to or continues in employment with any other Employer or a Related
 Company, and the interest of any Participant employed solely by an Employer
 or a Related Company other than the withdrawing Employer, shall remain
 unaffected by such withdrawal; no adjustment to his Accounts shall be made by
 reason of the withdrawal; and he shall continue as a Participant hereunder
 subject to the remaining provisions of the Plan. 

 

	
  

 	
  

 	
  

 
	
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ARTICLE XX 

ADOPTION BY OTHER ENTITIES

	
  

 	
  

 
	
 20.1

 	
 Adoption by Related Companies 

 
	
  

 	
  

 
	
 A Related
 Company that is not an Employer may, with the consent of the Sponsor, adopt
 the Plan and become an Employer hereunder by causing an appropriate written
 instrument evidencing such adoption to be executed in accordance with the
 requirements of its organizational authority. Any such instrument shall specify
 the effective date of the adoption. 

 
	
  

 	
  

 
	
 20.2

 	
 Effective Plan Provisions 

 
	
  

 	
  

 
	
 An Employer
 who adopts the Plan shall be bound by the provisions of the Plan in effect at
 the time of the adoption and as subsequently in effect because of any
 amendment to the Plan. 

 

	
  

 	
  

 	
  

 
	
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ARTICLE XXI

MISCELLANEOUS PROVISIONS

	
  

 	
  

 
	
 21.1

 	
 No Commitment as to Employment

 
	
  

 	
  

 
	
 Nothing
 contained herein shall be construed as a commitment or agreement upon the
 part of any person to continue his employment with an Employer or Related
 Company, or as a commitment on the part of any Employer or Related Company to
 continue the employment, compensation, or benefits of any person for any
 period.

 
	
  

 
	
 21.2

 	
 Benefits

 
	
  

 	
  

 
	
 Nothing in
 the Plan nor the Trust Agreement shall be construed to confer any right or
 claim upon any person, firm, or corporation other than the Employers, the
 Trustee, Participants, and Beneficiaries.

 
	
  

 
	
 21.3

 	
 No Guarantees

 
	
  

 	
  

 
	
 The
 Employers, the Administrator, and the Trustee do not guarantee the Trust from
 loss or depreciation, nor do they guarantee the payment of any amount which
 may become due to any person hereunder.

 
	
  

 
	
 21.4

 	
 Expenses

 
	
  

 	
  

 
	
 The expenses
 of operation and administration of the Plan, including the expenses of the
 Administrator and fees of the Trustee, shall be paid from the Trust, unless the
 Sponsor elects to make payment. To the extent paid from the Trust,
 administrative expenses shall be paid first from any forfeitures. Any
 remaining expenses shall be allocated among Participants’ Accounts.

 
	
  

 
	
 Notwithstanding
 the foregoing, the costs incident to the management of the assets of an
 Investment Fund or to the purchase or sale of securities held in an
 Investment fund shall be allocable to Accounts invested in such Investment
 Fund and administrative expenses that are incurred directly with respect to
 an individual Participant’s Account will be allocated to that Account. 

 
	
  

 
	
 21.5

 	
 Precedent

 
	
  

 	
  

 
	
 Except as
 otherwise specifically provided, no action taken in accordance with the Plan
 shall be construed or relied upon as a precedent for similar action under
 similar circumstances.

 

	
  

 	
  

 	
  

 
	
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 21.6

 	
 Duty to Furnish Information

 
	
  

 	
  

 
	
 The
 Employers, the Administrator, and the Trustee shall furnish to any of the
 others any documents, reports, returns, statements, or other information that
 the other reasonably deems necessary to perform its duties hereunder or
 otherwise imposed by law.

 
	
  

 
	
 21.7

 	
 Merger, Consolidation, or Transfer of Plan Assets

 
	
  

 	
  

 
	
 The Plan
 shall not be merged or consolidated with any other plan, nor shall any of its
 assets or liabilities be transferred to another plan, unless, immediately
 after such merger, consolidation, or transfer of assets or liabilities, each
 Participant in the Plan would receive a benefit under the Plan which is at
 least equal to the benefit he would have received immediately prior to such
 merger, consolidation, or transfer of assets or liabilities (assuming in each
 instance that the Plan had then terminated).

 
	
  

 
	
 21.8

 	
 Condition on Employer Contributions

 
	
  

 	
  

 
	
 Notwithstanding
 anything to the contrary contained in the Plan or the Trust Agreement, any
 contribution of an Employer hereunder is conditioned upon the continued
 qualification of the Plan under Code Section 401(a), the exempt status of the
 Trust under Code Section 501(a), and the deductibility of the contribution
 under Code Section 404. Except as otherwise provided in this Section and
 Section 21.9, however, in no event shall any portion of the property of the
 Trust ever revert to or otherwise inure to the benefit of an Employer or any
 Related Company.

 
	
  

 
	
 21.9

 	
 Return of Contributions to an Employer

 
	
  

 	
  

 
	
 Notwithstanding
 any other provision of the Plan or the Trust Agreement to the contrary, in
 the event any contribution of an Employer made hereunder:

 
	
  

 
	
 (a)

 	
 is made
 under a mistake of fact, or

 
	
  

 	
  

 
	
 (b)

 	
 is
 disallowed as a deduction under Code Section 404,

 
	
  

 	
  

 
	
 such
 contribution, reduced for any losses experienced by the Trust Fund, may be
 returned to the Employer within one year after the payment of the
 contribution or the disallowance of the deduction to the extent disallowed,
 whichever is applicable. In the event the Plan does not initially qualify
 under Code Section 401(a), any contribution of an Employer made hereunder may
 be returned to the Employer within one year of the date of denial of the
 initial qualification of the Plan, but only if an application for
 determination was made within the period of time prescribed under ERISA
 Section 403(c)(2)(B).

 

	
  

 	
  

 	
  

 
	
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 21.10

 	
 Validity of Plan

 
	
  

 	
  

 
	
 The validity
 of the Plan shall be determined and the Plan shall be construed and
 interpreted in accordance with the laws of the state or commonwealth in which
 the Trustee has its principal place of business or, if the Trustee is an
 individual or group of individuals, the state or commonwealth in which the
 Sponsor has its principal place of business, except as preempted by
 applicable Federal law. The invalidity or illegality of any provision of the
 Plan shall not affect the legality or validity of any other part thereof.

 
	
  

 
	
 21.11

 	
 Trust Agreement

 
	
  

 	
  

 
	
 The Trust
 Agreement and the Trust maintained thereunder shall be deemed to be a part of
 the Plan as if fully set forth herein and the provisions of the Trust
 Agreement are hereby incorporated by reference into the Plan.

 
	
  

 
	
 21.12

 	
 Parties Bound

 
	
  

 	
  

 
	
 The Plan
 shall be binding upon the Employers, all Participants and Beneficiaries
 hereunder, and, as the case may be, the heirs, executors, administrators,
 successors, and assigns of each of them.

 
	
  

 
	
 21.13

 	
 Application of Certain Plan Provisions

 
	
  

 	
  

 
	
 For purposes
 of the general administrative provisions and limitations of the Plan, a
 Participant’s Beneficiary or alternate payee under a qualified domestic
 relations order shall be treated as any other person entitled to receive
 benefits under the Plan. Upon any termination of the Plan, any such Beneficiary
 or alternate payee under a qualified domestic relations order who has an
 interest under the Plan at the time of such termination, which does not cease
 by reason thereof, shall be deemed to be a Participant for all purposes of
 the Plan. A Participant’s Beneficiary, if the Participant has died, or
 alternate payee under a qualified domestic relations order shall be treated
 as a Participant for purposes of directing investments as provided in Article
 X. 

 
	
  

 
	
 21.14

 	
 Merged Plans

 
	
  

 	
  

 
	
 In the event
 another defined contribution plan (the “merged plan”) is merged into and made
 a part of the Plan, each Employee who was eligible to participate in the
 “merged plan” immediately prior to the merger shall become an Eligible
 Employee on the date of the merger. In no event shall a Participant’s vested
 interest in his Sub-Account attributable to amounts transferred to the Plan
 from the “merged plan” (his “transferee Sub-Account”) on and after the merger
 be less than his vested interest in his account under the “merged plan”
 immediately prior to the merger. Notwithstanding any other provision of the
 Plan to the contrary, a Participant’s service credited for eligibility and
 vesting purposes under the “merged plan” as of the merger, if any, shall be
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 Service
 under the Plan to the extent Eligibility and Vesting Service are credited
 under the Plan. Special provisions applicable to a Participant’s “transferee
 Sub-Account”, if any, shall be specifically reflected in the Plan or in an
 Addendum to the Plan.

 
	
  

 
	
 21.15

 	
 Transferred Funds

 
	
  

 	
  

 
	
 If funds
 from another qualified plan are transferred or merged into the Plan, such
 funds shall be held and administered in accordance with any restrictions
 applicable to them under such other plan to the extent required by law and
 shall be accounted for separately to the extent necessary to accomplish the
 foregoing.

 
	
  

 
	
 21.16

 	
 Veterans Reemployment Rights

 
	
  

 	
  

 
	
 Notwithstanding
 any other provision of the Plan to the contrary, contributions, benefits, and
 service credit with respect to qualified military service shall be provided
 in accordance with Code Section 414(u). Any contributions required to be made
 in accordance with this Section shall be contributed to the Plan within the
 time period prescribed under applicable regulations or other guidance. The
 Administrator shall notify the Trustee of any Participant with respect to
 whom additional contributions are made because of qualified military service.
 

 
	
  

 
	
 If a
 Participant who is absent from employment as a Covered Employee because of
 military service dies after December 31, 2006, while performing qualified
 military service (as defined in Code Section 414(u)), the Participant shall
 be treated as having returned to employment as a Covered Employee on the day
 immediately preceding his death for purposes of determining the Participant’s
 vested interest in his Account and his Beneficiary’s eligibility for a death
 benefit under the Plan. Notwithstanding the foregoing, such a Participant
 shall not be entitled to additional contributions with respect to his period
 of military leave.

 
	
  

 
	
 21.17

 	
 Delivery of Cash Amounts

 
	
  

 	
  

 
	
 To the
 extent that the Plan requires the Employers to deliver cash amounts to the
 Trustee, such delivery may be made through any means acceptable to the
 Trustee, including wire transfer.

 
	
  

 
	
 21.18

 	
 Written Communications

 
	
  

 	
  

 
	
 Any
 communication among the Employers, the Administrator, and the Trustee that is
 stipulated under the Plan to be made in writing may be made in any medium
 that is acceptable to the receiving party and permitted under applicable law.
 In addition, any communication or disclosure to or from Participants and/or
 Beneficiaries that is required under the terms of the Plan to be made in
 writing may be provided in any other medium (electronic, telephonic, or
 otherwise) that is acceptable to the Administrator and permitted under
 applicable law.

 

	
  

 	
  

 	
  

 
	
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 21.19

 	
 Plan Correction Procedures 

 
	
  

 	
  

 
	
 The Employer
 shall take such action as it deems necessary to correct any Plan failure,
 including, but not limited to, operational failures, documentation failures
 (such as a failure to timely amend), failures affecting Plan qualification,
 etc. Subject to the requirements of the Employee Plans Compliance Resolution
 System, as set forth in Revenue Procedure 2008-50, or any superseding
 guidance (“EPCRS”), the Employer may adopt any correction method that it
 deems appropriate under the circumstances. In addition to any correction
 method specified in the Plan, the Employer may, where appropriate, make
 correction in accordance with EPCRS, including the making of a Qualified
 Nonelective Contribution permitted under EPCRS, but not otherwise provided
 under the Plan.

 
	
  

 
	
 In the event
 of a fiduciary breach or a prohibited transaction, correction shall be made
 in accordance with the requirements of ERISA and the Code.

 
	
  

 
	
 21.20

 	
 Prohibited Obligations

 
	
  

 	
  

 
	
 The Plan
 cannot obligate itself to acquire Employer Stock from a particular holder at
 an indefinite time determined upon the happening of a specified event, such
 as the death of the holder, or under a put option binding upon the Plan.
 However, at the time a put option is exercised, the Plan may be given the
 opportunity to assume the rights and obligations of the Employer under a put
 option that is binding on the Employer. The price to the Plan of any Employer
 Stock acquired under a put option cannot exceed fair market value.

 

	
  

 	
  

 	
  

 
	
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ARTICLE XXII

TOP-HEAVY PROVISIONS

	
  

 	
  

 
	
 22.1

 	
 Definitions

 

For purposes
of this Article, the following terms shall have the following meanings:

The “compensation” of an employee means his “415
compensation” as defined in Section 7.1.

The “determination date” with respect to any
Plan Year means the last day of the preceding Plan Year, except that the
“determination date” with respect to the first Plan Year of the Plan, shall
mean the last day of such Plan Year.

A “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 an Employer or a
Related Company having annual “compensation” greater than $160,000 (as adjusted
under Section 416(i)(1) of the Code for Plan Years beginning after December 31,
2007), a 5% owner of an Employer or a Related Company, or a 1% owner of an
Employer or a Related Company having annual “compensation” of more than
$150,000.

A “non-key employee” means any Employee who is
not a “key employee”.

A “permissive aggregation group” means those
plans included in each Employer’s “required aggregation group” together with
any other plan or plans of the Employer or any Related Company, so long as the
entire group of plans would continue to meet the requirements of Code Sections
401(a)(4) and 410.

A “required aggregation group” means the group
of tax-qualified plans maintained by an Employer or a Related Company
consisting of each plan in which a “key employee” participates or participated
at any time during the Plan Year containing the “determination date” or any of
the 4 preceding Plan Years (regardless of whether the plan has terminated) and
each other plan that enables a plan in which a “key employee” participates to
meet the requirements of Code Section 401(a)(4) or Code Section 410.

A “top-heavy group” with respect to a
particular Plan Year means a “required” or “permissive aggregation group” if
the sum, as of the “determination date”, of the present value of the cumulative
accrued benefits for “key employees” under all defined benefit plans included
in such group and the aggregate of the account balances of “key employees”
under all defined contribution plans included in such group exceeds 60 percent
of a similar sum determined for all employees covered by the plans included in
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A “top heavy plan” with respect to a
particular Plan Year means (i) in the case of a defined contribution plan
(including any simplified employee pension plan), a plan for which, as of the
“determination date”, the aggregate of the accounts (within the meaning of Code
Section 416(g) and the regulations and rulings thereunder) of “key employees”
exceeds 60 percent of the aggregate of the accounts of all participants under
the plan, with the accounts valued as of the relevant valuation date and
increased for any distribution of an account balance made during the 1-year
period ending on the “determination date” (5-year period ending on the
“determination date” if distribution is made for any reason other than
severance from employment, death, or disability), (ii) in the case of a defined
benefit plan, a plan for which, as of the “determination date”, the present
value of the cumulative accrued benefits payable under the plan (within the
meaning of Code Section 416(g) and the regulations and rulings thereunder) to
“key employees” exceeds 60 percent of the present value of the cumulative
accrued benefits under the plan for all employees, with the present value of
accrued benefits for employees (other than “key employees”) to be determined
under the accrual method uniformly used under all plans maintained by an
Employer or, if no such method exists, under the slowest accrual method
permitted under the fractional accrual rate of Code Section 411(b)(1)(C) and
including the present value of any part of any accrued benefits distributed
during the 1-year period ending on the “determination date” (5-year period
ending on the “determination date” if distribution is made for any reason other
than severance from employment, death, or disability), and (iii) any plan
(including any simplified employee pension plan) included in a “required
aggregation group” that is a “top heavy group”. For purposes of this paragraph,
the accounts and accrued benefits of any employee who has not performed
services for an Employer or a Related Company during the 1-year period ending
on the “determination date” shall be disregarded. For purposes of this
paragraph, the present value of cumulative accrued benefits under a defined
benefit plan for purposes of top heavy determinations shall be calculated using
the actuarial assumptions otherwise employed under such plan, except that the
same actuarial assumptions shall be used for all plans within a “required” or
“permissive aggregation group”. Notwithstanding the foregoing, if a plan is
included in a “required” or “permissive aggregation group” that is not a
“top-heavy group”, such plan shall not be a “top-heavy plan”.

The “valuation date” with respect to any
“determination date” means the most recent Valuation Date occurring within the
12-month period ending on the “determination date”.

	
  

 	
  

 
	
 22.2

 	
 Applicability

 

Notwithstanding
any other provision of the Plan to the contrary, the provisions of this Article
shall be applicable during any Plan Year in which the Plan is determined to be
a “top-heavy plan” as hereinafter defined. 

	
  

 	
  

 	
  

 
	
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 22.3

 	
 Minimum Employer Contribution

 

If the Plan is
determined to be a “top heavy plan” for a Plan Year, the Employer Contributions
and forfeitures allocated to the Account of each “non-key employee” who is an
Eligible Employee and who is employed by an Employer or a Related Company on
the last day of such top heavy Plan Year shall be no less than the lesser of
(i) three percent of his “compensation” or (ii) the largest percentage of
“compensation” that is allocated as an Employer Contribution for such Plan Year
to the Account of any “key employee”; except that, in the event the Plan is
part of a “required aggregation group”, and the Plan enables a defined benefit
plan included in such group to meet the requirements of Code Section 401(a)(4)
or 410, the minimum allocation of Employer Contributions and forfeitures to
each such “non-key employee” shall be 3% of the “compensation” of such “non key
employee”. Any minimum allocation to a “non-key employee” required by this
Section shall be made without regard to any social security contribution made
on behalf of the “non-key employee”, his number of hours of service, his level
of “compensation”, or whether he declined to make elective or mandatory
contributions.

Employer
Contributions allocated to a Participant’s Account in accordance with this
Section shall be considered “annual additions” under Article VII for the
“limitation year” for which they are made and shall be separately accounted
for. Employer Contributions allocated to a Participant’s Account shall be
allocated upon receipt among the Investment Funds in accordance with the
Participant’s currently effective investment election. 

	
  

 	
  

 
	
 22.4

 	
 Exclusion of Collectively-Bargained Employees

 

Notwithstanding
any other provision of this Article, Employees who are covered by an agreement
that the Secretary of Labor finds to be a collective bargaining agreement
between employee representatives and one or more employers shall not be
entitled to a minimum allocation or accelerated vesting under this Article,
unless otherwise provided in the collective bargaining agreement.

	
  

 	
  

 	
  

 
	
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ARTICLE XXIII 

EXEMPT LOANS

23.1 Purpose of Exempt Loan 

The proceeds
of any Exempt Loan must be used within a reasonable period of time to: (a)
acquire Employer Stock; (b) repay the Exempt Loan; or (c) repay a prior Exempt
Loan. 

23.2 Restrictions on Exempt Loans 

Any Exempt
Loan must satisfy all of the following requirements: 

	
  

 	
  

 	
  

 
	
 (a)

 	
 The Exempt
 Loan is primarily for the benefit of Participants and their Beneficiaries.
 All facts and circumstances surrounding the Exempt Loan shall be considered
 in determining whether this requirement has been satisfied, including: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Whether at
 the time the Exempt Loan is made, the interest rate charged under the terms
 of the Exempt Loan and the price of the Employer Stock to be acquired with
 the proceeds of the Exempt Loan is such that Plan assets shall not be drained
 off. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Whether the
 Exempt Loan is at least as favorable to the Plan as the terms of a comparable
 loan resulting from arms’ length negotiation between independent parties. 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 The interest
 rate charged under the terms of the Exempt Loan is a reasonable rate of
 interest. 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 The
 collateral pledged to the creditor by the Plan consists only of Employer
 Stock purchased with the borrowed funds. 

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 Under the
 terms of the Exempt Loan, the creditor has no recourse against Plan assets
 except with respect to the collateral described in paragraph (c) above,
 earnings attributable to such collateral, and Employer Contributions (other
 than contributions made in Employer Stock) made to meet current obligations
 under the Exempt Loan and earnings attributable to such contributions. 

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 Under the
 terms of the Exempt Loan, the shares of Employer Stock held as collateral for
 the loan that are to be released each Plan Year shall equal the product of
 (i) the number of encumbered shares of Employer Stock held before the release
 of shares for the current Plan Year multiplied by (ii) a fraction, the
 numerator of which is the amount of principal and interest paid for the
 current Plan Year and the denominator of which is the sum of the amount of
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 interest
 paid for the current Plan Year plus the principal and interest to be paid for
 all future Plan Years.

 
	
 (f)

 	
 The Exempt
 Loan is for a specified term and is not payable on demand of any person,
 except in the case of default. 

 
	
  

 	
  

 
	
 (g)

 	
 In the event
 of a default on an Exempt Loan, the value of the Trust Fund transferred in
 satisfaction of the Exempt Loan shall not exceed the amount of the default.
 If the lender is a Disqualified Person, the Exempt Loan must provide for the
 transfer of Trust Funds only upon and to the extent of the failure of the
 Plan to meet the payment schedule under the Exempt Loan. 

 
	
  

 	
  

 
	
 (h)

 	
 Payments
 made on the Exempt Loan during a Plan Year shall not exceed: (1) the sum over
 all the Plan Years during the term of the Exempt Loan of all Employer
 Contributions and cash dividends paid by the Employer to the Plan with
 respect to such Exempt Loan and earnings on such contributions and dividends,
 less (2) the sum of all Exempt Loan payments during the preceding Plan Years.
 A separate accounting shall be maintained for such Employer Contributions,
 cash dividends, and earnings until the Exempt Loan is repaid. 

 

23.3 Sale or Repurchase of Shares of Employer
Stock 

Except as otherwise
specifically provided in Section 16.8, no share of Employer Stock acquired with
the proceeds of an Exempt Loan may be subject to a put, call, or other option,
or buy-sell or similar arrangement while held by or when distributed from the
Trust, whether or not the Exempt Loan has been repaid or the Plan ceases to be
an Employee Stock ownership plan. Subject to any right of first refusal
provided in accordance with regulations issued under Code Section 4975(e), no
person may be required to sell shares to the Employers, nor may the Trust enter
into an agreement that obligates the Trust to purchase Shares upon the death of
a shareholder of an Employer. 

	
  

 	
  

 	
  

 
	
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*          *          *

          EXECUTED
AT_________________________________________________________________,

________________________________________,
this ____________ day of___________________, ________.

	
  

 	
  

 
	
  

 	
 STATE
 BANCORP, INC.

 
	
  

 	
  

 
	
  

 	
 By:
 _______________________________________________

 
	
  

 	
  

 
	
  

 	
         Title:
 _________________________________________

 
	
  

 	
  

 

	
  

 	
  

 	
  

 
	
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ADDENDUM

STATE BANCORP, INC. EMPLOYEE STOCK OWNERSHIP PLAN

          Re:
Protected Prior Annuity Form of Payment 

A.1 Applicability 

Notwithstanding
any other provision of the Plan to the contrary, the following provisions apply
with respect to that portion of a Participant’s Account that is attributable to
Prior Money Purchase Plan Contributions. The term “Account” when used in this
Addendum refers only to that portion of a Participant’s Account described in
the preceding sentence. 

A.2 Definitions 

For purposes
of this Article, the following terms have the following meanings: 

The “automatic annuity form” means the form of
annuity that will be purchased on behalf of a Participant unless the
Participant elects another form of annuity. 

A “qualified election” means an election that
is made during the “qualified election period”. A “qualified election” of a
form of payment other than a Qualified Joint and Survivor Annuity or
designating a Beneficiary other than the Participant’s Spouse to receive
amounts otherwise payable as a Qualified Preretirement Survivor Annuity must
include the written consent of the Participant’s Spouse, if any. A
Participant’s Spouse will be deemed to have given written consent to the
Participant’s election if the Participant establishes to the satisfaction of a
Plan representative that such consent cannot be obtained because the Spouse
cannot be obtained because the Spouse cannot be located or because of other
circumstances set forth in Code Section 401(a)(11) and regulations issued
thereunder. The Spouse’s written consent must acknowledge the effect of the
Participant’s election and must be witnessed by a Plan representative or a
notary public. In addition, the Spouse’s written consent must either (i)
specify the form of payment selected instead of a Qualified Joint and Survivor
Annuity, if applicable, and that such form may not be changed (except to a
Qualified Joint and Survivor Annuity) without written spousal consent and
specify any non-Spouse Beneficiary designated by the Participant, if
applicable, and that such Beneficiary may not be changed without written
spousal consent or (ii) acknowledge that the Spouse has the right to limit
consent as provided in clause (i), but permit the Participant to change the
form of payment selected or the designated Beneficiary without the Spouse’s
further consent. Any written consent given or deemed to have been given by a
Participant’s Spouse hereunder shall be irrevocable and shall be effective only
with respect to such Spouse and not with respect to any subsequent Spouse. 

The “qualified election period” with respect to
the “automatic annuity form” means the 90-day period ending on a Participant’s
Benefit Payment Date. The “qualified election 

	
  

 	
  

 	
  

 
	
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period” with
respect to a Qualified Preretirement Survivor Annuity means the period
beginning on the first day of the Plan Year in which the Participant attains
age 35 or, if he terminates employment prior to such date, the day he
terminates employment with his Employer and all Related Companies. A Participant
whose employment has not terminated may make a “qualified election” designating
a Beneficiary other than his Spouse prior to the Plan Year in which he attains
age 35; provided, however, that such election shall cease to be effective as of
the first day of the Plan Year in which the Participant attains age 35. 

A.3 Normal Form of Payment 

Unless a
Participant, or his Beneficiary, if the Participant has died, elects one of the
forms of payment provided in Article XVI, distribution shall be made to the
Participant, or his Beneficiary, as the case may be, through the purchase of a
single premium, nontransferable annuity contract for such term and in such form
as the Participant, or his Beneficiary, as the case may be, shall select,
subject to the automatic annuity and Qualified Preretirement Survivor Annuity
requirements described in this Article; provided, however, that a Participant’s
Beneficiary may not elect to receive distribution of an annuity payable over
the joint lives of the Beneficiary and any other individual. The terms of any
annuity contract purchased hereunder and distributed to a Participant or his
Beneficiary shall comply with the requirements of the Plan. 

A.4 Change of Election 

Subject to the
automatic annuity requirements of this Addendum, a Participant or Beneficiary
who has elected a form of payment provided under Article XVI or this Addendum
may revoke or change his election at any time prior to his Benefit Payment Date
by filing his election with the Administrator in the form prescribed by the
Administrator. There is no limit on the number of elections or revocations a
Participant or his Beneficiary may make prior to his Benefit Payment Date. 

A.5 Automatic Annuity Requirements 

Distribution
shall be made to a Participant through the purchase of an annuity contract that
provides for payment in one of the following “automatic annuity forms”, unless
the Participant elects a different type of annuity or elects an optional form
of payment provided in Article XVI. 

	
  

 	
  

 
	
 (a)

 	
 The
 “automatic annuity form” for a Participant who has a Spouse on his Benefit
 Payment Date is the 50 percent Qualified Joint and Survivor Annuity. 

 
	
  

 	
  

 
	
 (b)

 	
 The
 “automatic annuity form” for a Participant who does not have a Spouse on his
 Benefit Payment Date is the Single Life Annuity. 

 

	
  

 	
  

 	
  

 
	
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A
Participant’s election of an annuity other than the “automatic annuity form” or
of an optional form of payment shall not be effective unless it is a “qualified
election”; provided, however, that spousal consent shall not be required if the
form of payment elected by the Participant is a Qualified Joint and Survivor
Annuity. A Participant may only change his election of a form of payment
pursuant to a “qualified election”; provided, however, that spousal consent
shall not be required if the form of payment elected by the Participant is a
Qualified Joint and Survivor Annuity. 

A.6 Qualified Preretirement Survivor Annuity
Requirements 

If a married
Participant dies before his Benefit Payment Date, his Spouse shall receive
distribution of the value of the Participant’s vested interest in his Account
through the purchase of an annuity contract that provides for payment over the
life of the Participant’s Spouse. A Participant’s Spouse may elect to receive
distribution under any one of the other forms of payment available under this
Article instead of in the Qualified Preretirement Survivor Annuity form. A
married Participant may only designate a non-Spouse Beneficiary to receive
distribution of his Account pursuant to a “qualified election”. 

A.7 Notice Regarding Forms of Payment 

The
explanation provided to a Participant pursuant to Article XVI, shall include a
description of the annuity form of payment available under the Addendum,
including a written explanation of (i) the terms and conditions of the “automatic
annuity form”, (ii) the Participant’s right to choose a form of payment other
than the “automatic annuity form” or to revoke such choice, and (iii) the
rights of the Participant’s Spouse. 

The
Administrator shall provide such explanation within the 60-day period ending 30
days before the Participant’s Benefit Payment Date. Notwithstanding the
foregoing, distribution of the Participant’s Account may commence fewer than 30
days after such explanation is provided to the Participant if (i) the Administrator
clearly informs the Participant of his right to consider his election of
whether or not to make a direct rollover or to receive a distribution prior to
his Normal Retirement Date and his election of a form of payment for a period
of at least 30 days following his receipt of the explanation, (ii) the
Participant, after receiving the explanation, affirmatively elects an early
distribution with his Spouse’s written consent, if necessary, (iii) the
Participant may revoke his election at any time prior to the later of his
Benefit Payment Date or the expiration of the seven-day period beginning the
day after the date the explanation is provided to him, and (iv) distribution
does not commence to the Participant before such revocation period ends. 

In addition,
the Administrator shall provide a Participant with a written explanation of (i)
the terms and conditions of the Qualified Preretirement Survivor Annuity, (ii)
the Participant’s right to designate a non-Spouse Beneficiary to receive
distribution of his Account otherwise payable as a Qualified Preretirement
Survivor Annuity or to revoke 

	
  

 	
  

 	
  

 
	
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such
designation, and (iii) the rights of the Participant’s Spouse. The
Administrator shall provide such explanation within one of the following
periods, whichever ends last: 

	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

 	
 the period
 beginning 12 calendar months before the date an individual becomes a
 Participant and ending 12 calendar months after such date; 

 

provided,
however, that in the case of a Participant who separates from service prior to
attaining age 35, the explanation shall be provided to such Participant within
the period beginning 12 calendar months before the Participant’s separation
from service and ending 12 calendar months after his separation from service. 

	
  

 	
  

 	
  

 
	
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