Document:

ex10-1.htm

    EXHIBIT
10.1

    

    EXECUTIVE
BONUS PLAN

    

    

    The
following is a description of the EMCORE Corporation (“EMCORE”) Fiscal 2008
Executive Bonus Plan (the “Fiscal 2008 Executive Bonus Plan”).  This
constitutes a written description of a compensatory plan when no formal document
contains the compensation information.

    

    On March
31, 2008, the Board of Directors of EMCORE adopted the Fiscal 2008 Executive
Bonus Plan.  The purpose of the Fiscal 2008 Executive Bonus Plan is to
establish and implement a consistent, market-driven, performance-based approach
to compensation that is compatible with EMCORE’s compensation policy and
supports EMCORE’s strategic business plan and goals.

    

    Under the
Fiscal 2008 Executive Bonus Plan, a bonus target for each executive is created,
representing a percentage of that executive’s base salary.  The
following targets have been set based for the indicated officers:

    

    Executive
Chairman and Chief Executive Officer: 80% of base salary

    Chief
Financial Officer:  50% of base salary

    General
Counsel/Chief Legal Officer and Chief Technical Officer: 35% of base
salary

    

    The
portion of the individual officers’ targets to be paid is based on both
corporate and individual performance.  Corporate performance is
evaluated based on the company’s attainment of revenue and EBITDA goals, as set
forth in EMCORE’s Fiscal 2008 Budget (the “Fiscal 2008 Budget”), both of which
goals are weighted equally.  A threshold level of 75% of revenue goals
and 70% of EBITDA goals is set.  Achievement of 100% of revenue and
EBITDA goals correlates to payment of 100% of the bonus targets, and attainment
of lesser percentages of the revenue and EBITDA goals correlates to payment of
lesser percentages of the bonus targets.  Attainment of 110% of the
revenue and EBITDA goals will result in eligibility for 120% of the bonus
targets.

    

    The
individual performance component acts as a multiplier and can accelerate or
decelerate the target bonus percentage based upon individual performance as
determined by the Chief Executive Officer and the Compensation
Committee.  The multiplier ranges from 0% to 140% of the executive’s
target bonus.  The Chief Executive’s individual performance is
reviewed by the Compensation Committee.  The Chief Operating Officer’s
and other executive officers’ individual performance is reviewed by the Chief
Executive Officer and approved by the Compensation Committee.

    

    Payment
of bonuses (if any) is normally made after the end of the performance period
during which the bonuses were earned. Bonuses normally will be paid in cash in a
single lump sum, subject to payroll taxes and tax withholdings.

    

    The
Compensation Committee and the Chief Executive Officer retain the ability to
modify individual executive bonuses based upon individual performance and the
successful completion of business projects and other management performance
objectives.  In addition, the Compensation Committee makes long-term
incentive grants to executive officers and employees which are not covered under
the terms of the Fiscal 2008 Executive Bonus Plan.ex10_7.htm

    

     

    Exhibit
10.7

     

     

    DYNEX
CAPITAL, INC.

     

    401(K)
OVERFLOW PLAN

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

     

    
      
        
          Nonqualified
Retirement Plan 7.5A

          Effective:
July 1, 1997

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    TABLE
OF CONTENTS

     

     

    
      
        	
                INTRODUCTION

              	 
      	
                1

              
	 
      	 
      	 
      
	
                ARTICLE
      I FORMAT AND DEFINITIONS

              	 
      	
                2

              
	 
      	 
      	 
      
	
                SECTION
      1.01  --FORMAT.

              	 
      	
                2

              
	
                SECTION
      1.02  --DEFINITIONS.

              	 
      	
                2

              
	 
      	 
      	 
      
	
                ARTICLE
      II PARTICIPATION

              	 
      	
                7

              
	 
      	 
      	 
      
	
                SECTION 2.01  --ACTIVE PARTICIPANT.

              	 
      	
                7

              
	
                SECTION 2.02  --INACTIVE
      PARTICIPANT.

              	 
      	
                7

              
	
                SECTION 2.03  --CESSATION OF
      PARTICIPATION.

              	 
      	
                7

              
	 
      	 
      	 
      
	
                ARTICLE
      III CONTRIBUTIONS

              	 
      	
                8

              
	 
      	 
      	 
      
	
                SECTION 3.01  --SALARY SAVINGS
      CONTRIBUTIONS.

              	 
      	
                8

              
	
                SECTION 3.02  --EMPLOYER
      CONTRIBUTIONS.

              	 
      	
                8

              
	
                SECTION 3.03  --NONFORFEITABILITY OF
      CONTRIBUTIONS.

              	 
      	
                9

              
	
                SECTION
      3.04  --ALLOCATION.

              	 
      	
                9

              
	 
      	 
      	 
      
	
                ARTICLE
      IV INVESTMENT OF CONTRIBUTIONS

              	 
      	
                10

              
	 
      	 
      	 
      
	
                SECTION 4.01  --INVESTMENT OF
      CONTRIBUTIONS.

              	 
      	
                10

              
	
                SECTION 4.01A-- AGREEMENT OF
      AGENCY.

              	 
      	
                10

              
	 
      	 
      	 
      
	
                ARTICLE
      V BENEFITS

              	 
      	
                12

              
	 
      	 
      	 
      
	
                SECTION 5.01  --RETIREMENT
      BENEFITS.

              	 
      	
                12

              
	
                SECTION 5.02  --DEATH
      BENEFITS.

              	 
      	
                12

              
	
                SECTION 5.03  --TERMINATION
      BENEFITS.

              	 
      	
                12

              
	
                SECTION 5.04  --WHEN BENEFITS
      START.

              	 
      	
                12

              
	
                SECTION 5.05  --WITHDRAWAL
      PRIVILEGES.

              	 
      	
                13

              
	 
      	 
      	 
      
	
                ARTICLE
      VI DISTRIBUTION OF BENEFITS

              	 
      	
                14

              
	 
      	 
      	 
      
	
                SECTION 6.01  --AUTOMATIC FORMS OF
      DISTRIBUTION.

              	 
      	
                14

              
	
                SECTION 6.02  --OPTIONAL FORMS OF
      DISTRIBUTION.

              	 
      	
                14

              
	
                SECTION 6.03  --ELECTION
      PROCEDURES.

              	 
      	
                15

              
	
                SECTION 6.04  --NOTICE
      REQUIREMENTS.

              	 
      	
                17

              
	 
      	 
      	 
      
	
                ARTICLE
      VII TERMINATION OF PLAN

              	 
      	
                20

              
	 
      	 
      	 
      
	
                ARTICLE
      VIII ADMINISTRATION OF PLAN

              	 
      	
                21

              
	 
      	 
      	 
      
	
                SECTION
      8.01  --ADMINISTRATION.

              	 
      	
                21

              

      

      

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

      

      
        	
                SECTION
      8.02  --RECORDS.

              	 
      	
                21

              
	
                SECTION 8.03  --INFORMATION
      AVAILABLE.

              	 
      	
                21

              
	
                SECTION 8.04  --CLAIM AND APPEAL
      PROCEDURES.

              	 
      	
                22

              
	
                SECTION 8.05  --DELEGATION OF
      AUTHORITY.

              	 
      	
                22

              
	 
      	 
      	 
      
	
                ARTICLE
      IX GENERAL PROVISIONS

              	 
      	
                23

              
	 
      	 
      	 
      
	
                SECTION
      9.01  --AMENDMENTS.

              	 
      	
                23

              
	
                SECTION
      9.02  --MERGERS.

              	 
      	
                23

              
	
                SECTION 9.03  --PROVISIONS RELATING TO
      THE INSURER AND OTHER PARTIES.

              	 
      	
                24

              
	
                SECTION 9.04  --EMPLOYMENT
      STATUS.

              	 
      	
                24

              
	
                SECTION 9.05  --RIGHTS TO PLAN
      ASSETS.

              	 
      	
                24

              
	
                SECTION
      9.06  --BENEFICIARY.

              	 
      	
                24

              
	
                SECTION 9.07  --NONALIENATION OF
      BENEFITS.

              	 
      	
                25

              
	
                SECTION
      9.08  --CONSTRUCTION.

              	 
      	
                25

              
	
                SECTION 9.09  --LEGAL
      ACTIONS.

              	 
      	
                25

              
	
                SECTION 9.10  --SMALL
      AMOUNTS.

              	 
      	
                26

              
	
                SECTION 9.11  --WORD
      USAGE.

              	 
      	
                26

              
	 
      	 
      	 
      
	
                PLAN
      EXECUTION

              	 
      	 
      

      

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    INTRODUCTION

     

    The
Employer is establishing a nonqualified, defined contribution employees’
retirement plan which has been designed as, and is intended to be, a funded plan
for purposes of the Employee Retirement Income Security Act of 1974, as amended,
and a nonqualified plan under the Internal Revenue Code of 1986, including any
later amendments to the Code.  The Employer agrees to operate the plan
according to the terms, provisions and conditions set forth in this
document.

     

    The
purpose of the Plan is to provide a vehicle to overcome the limitations
regarding the contributions which can be made by or on the behalf of some highly
compensated employees to the Qualified Plan.  This Plan, working in
combination with the Qualified Plan, will permit Participants and the Employer
to contribute the full amount of Salary Savings Contributions and Employer
contributions desired without regard to the limitations of the Qualified
Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
I

     

    

     

    FORMAT
AND DEFINITIONS

     

    SECTION
1.01  --              FORMAT.

     

    Words and
phrases defined in the DEFINITIONS SECTION of Article I shall have that defined
meaning when used in this Plan, unless the context clearly indicates
otherwise.

     

    These
words and phrases have an initial capital letter to aid in identifying them as
defined terms.

     

    SECTION
1.02  --              DEFINITIONS.

     

    ACCOUNT
means, for a Participant, his share of the Investment Fund.  Separate
accounting records are kept for those parts of his Account that result
from:

     

    
      	
               
      

            	
              (a)

            	
              Salary
      Savings Contributions.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Matching
      Contributions.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Excess
      Contributions.

            

    

     

    A
Participant’s Account shall be reduced by any distribution of his
Account.  A Participant’s Account will participate in the earnings
credited, expenses charged and any appreciation or depreciation of the
Investment Fund.  His Account is subject to any minimum guarantees
applicable under the Group Contract or other investment
arrangement.

     

    ACTIVE
PARTICIPANT means an Eligible Employee who is actively participating in the Plan
according to the provisions in the ACTIVE PARTICIPANT SECTION of Article
II.

     

    ANNUITY
STARTING DATE means, for a Participant, the first day of the first period for
which an amount is payable as an annuity or any other form.

     

    BENEFICIARY
means the person or persons named by a Participant to receive any benefits under
this Plan upon the Participant’s death.  See the BENEFICIARY SECTION
of Article IX.

     

    CLAIMANT
means any person who has made a claim for benefits under this
Plan.  See the CLAIM AND APPEAL PROCEDURES SECTION of Article
VIII.

     

    CODE
means the Internal Revenue Code of 1986, as amended.

     

    COMPENSATION
means the total earnings paid or made available to an Employee by the Employer
during any specified period.  Compensation shall exclude Employer
Contributions made under this Plan.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Earnings”
in this definition means an Employee’s W-2 earnings.

     

    Compensation
shall also include employer contributions made pursuant to a salary reduction
agreement which are not includible in the gross income of the Employee under
Code Sections 125, 402(a)(8), 402(h), 403(b) or 457.

     

    CONTINGENT
ANNUITANT means an individual named by the Participant to receive a lifetime
benefit after the Participant’s death in accordance with a survivorship life
annuity.

     

    CONTRIBUTIONS
means

     

    Salary
Savings Contributions

    Matching
Contributions

    Excess
Contributions

     

    as set
out in Article III, unless the context clearly indicates otherwise.

     

    ELIGIBLE
EMPLOYEE means any Employee of the Employer as determined from Plan Year to Plan
Year by the Employer, and for whom contributions to the Qualified Plan are
limited by more than $500 due to the restrictions imposed by the Qualified Plan
to meet qualification requirements of the Internal Revenue Code.

     

    EMPLOYEE
means an individual who is employed by the Employer.

     

    EMPLOYER
means Dynex Capital, Inc. or any adopting employer of the Dynex Capital 401(k)
Plan.  The Employer will act as Agent for its Employees participating
in this Plan.  See the AGREEMENT OF AGENCY SECTION of Article
IV.  This will also include any successor corporation or firm of the
Employer which shall, by written agreement, assume the obligations of this Plan
or any predecessor corporation or firm of the Employer (absorbed by the
Employer, or of which the Employer was once a part) which became a predecessor
because of a change of name, merger, purchase of stock or purchase of assets and
which maintained this Plan.

     

    EMPLOYER
CONTRIBUTIONS means

     

    Matching
Contributions

    Excess
Contributions

     

    as set
out in Article III, unless the context clearly indicates otherwise.

     

    ENTRY
DATE means the date an Employee first enters the Plan as an Active
Participant.  See the ACTIVE PARTICIPANT SECTION of Article
II.

     

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

     

    EXCESS
CONTRIBUTIONS means excess contributions made by the Employer to fund this
Plan.  See the EMPLOYER CONTRIBUTIONS SECTION of Article
III.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    FISCAL
YEAR means the Employer’s taxable year.  The last day of the Fiscal
Year is December 31.

     

    GROUP
CONTRACT means the group annuity contract or contracts into which the Employer
enters with the Insurer for the investment of Contributions and the payment of
benefits under this Plan.  The term Group Contract as it is used in
this Plan is deemed to include the plural unless the context clearly indicates
otherwise.

     

    INACTIVE
PARTICIPANT means a former Active Participant who has an Account.  See
the INACTIVE PARTICIPANT SECTION of Article II.

     

    INSURER
means Principal Mutual Life Insurance Company and any other insurance company or
companies named by the Employer.

     

    INVESTMENT
FUND means the total assets held for the purpose of providing benefits for
Participants.  These funds result from Contributions made under the
Plan.

     

    INVESTMENT
MANAGER means any fiduciary (other than a trustee or Named
Fiduciary)

     

    
      	
               
      

            	
              (a)

            	
              who
      has the power to manage, acquire, or dispose of any assets of the Plan;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              who
      (1) is registered as an investment adviser under the Investment Advisers
      Act of 1940, or (2) is a bank, as defined in the Investment Advisers Act
      of 1940, or (3) is an insurance company qualified to perform services
      described in subparagraph (a) above under the laws of more than one state;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              who
      has acknowledged in writing being a fiduciary with respect to the
      Plan.

            

    

     

    LATE
RETIREMENT DATE means the first day of any month which is after a Participant’s
Normal Retirement Date and on which retirement benefits begin.  If a
Participant continues to work for the Employer after his Normal Retirement Date,
his Late Retirement Date shall be the earliest first day of the month on or
after he ceases to be an Employee.  A later Retirement Date may apply
if the Participant so elects.  See the WHEN BENEFITS START SECTION of
Article V.

     

    MATCHING
CONTRIBUTIONS means matching contributions made by the Employer to fund this
Plan.  See the EMPLOYER CONTRIBUTIONS SECTION of Article
III.

     

    MONTHLY
DATE means each Yearly Date and the same day of each following month during the
Plan Year beginning on such Yearly Date.

     

    NAMED
FIDUCIARY means the person or persons who have authority to control and manage
the operation and administration of the Plan.

     

    The Named
Fiduciary is the Employer.

     

    NORMAL
FORM means a single life annuity with installment refund.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    NORMAL
RETIREMENT AGE means the older of age 60 or his age on the date five years after
the first day of the Plan Year in which his Entry Date occurred.

     

    NORMAL
RETIREMENT DATE means the first day of the month on or after the date the
Participant reaches his Normal Retirement Age.  Unless otherwise
provided in this Plan, a Participant’s retirement benefits shall begin on a
Participant’s Normal Retirement Date if he has ceased to be an Employee on such
date and has an Account.  Even if the Participant is an Employee on
his Normal Retirement Date, he may choose to have his retirement benefit begin
on such date.  See the WHEN BENEFITS START SECTION of Article
V.

     

    PARENTAL
ABSENCE means an Employee’s absence from work which begins on or after the first
Yearly Date after December 31, 1984,

     

    
      	
               
      

            	
              (a)

            	
              by
      reason of pregnancy of the
Employee,

            

    

     

    
      	
               
      

            	
              (b)

            	
              by
      reason of birth of a child of the
Employee,

            

    

     

    
      	
               
      

            	
              (c)

            	
              by
      reason of the placement of a child with the Employee in connection with
      adoption of such child by such Employee,
or

            

    

     

    
      	
               
      

            	
              (d)

            	
              for
      purposes of caring for such child for a period beginning immediately
      following such birth or placement.

            

    

     

    PARTICIPANT
means either an Active Participant or an Inactive Participant.

     

    PERIOD OF
SERVICE means a period of time beginning on an Employee’s Employment
Commencement Date or Reemployment Commencement Date (whichever applies) and
ending on his Severance from Service Date.

     

    PLAN
means the nonqualified retirement plan of the Employer set forth in this
document, including any later amendments to it.

     

    PLAN
ADMINISTRATOR means the person or persons who administer the Plan.

     

    The Plan
Administrator is the Employer.

     

    PLAN YEAR
means a period beginning on a Yearly Date and ending on the day before the next
Yearly Date.

     

    QUALIFIED
JOINT AND SURVIVOR FORM means, for a Participant who has a spouse, a
survivorship life annuity with installment refund, where the survivorship
percentage is 50% and the Contingent Annuitant is the Participant’s
spouse.  A former spouse will be treated as the spouse to the extent
provided under a qualified domestic relations order as described in ERISA Act
Section 206(d).  If a Participant does not have a spouse, the
Qualified Joint and Survivor Form means the Normal Form.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    The
amount of benefit payable under the Qualified Joint and Survivor Form shall be
the amount of benefit which may be provided by the Participant’s
Account.

     

    QUALIFIED
PLAN means Dynex Capital, Inc. 401(k) Plan.

     

    QUALIFIED
PRERETIREMENT SURVIVOR ANNUITY means a single life annuity with installment
refund payable to the surviving spouse of a Participant who dies before his
Annuity Starting Date.  A former spouse will be treated as the
surviving spouse to the extent provided under a qualified domestic relations
order as described in ERISA Act Section 206(d).

     

    REEMPLOYMENT
COMMENCEMENT DATE means the date an Employee first performs an Hour-of-Service
following a Period of Severance.

     

    REENTRY
DATE means the date a former Active Participant reenters the
Plan.  See the ACTIVE PARTICIPANT SECTION of Article II.

     

    RETIREMENT
DATE means the date a retirement benefit will begin and is a Participant’s
Normal or Late Retirement Date, as the case may be.

     

    SALARY
SAVINGS CONTRIBUTIONS means salary deferral contributions made by the Employer
to fund this Plan.  See the SALARY SAVINGS CONTRIBUTIONS SECTION of
Article III.

     

    SEVERANCE
FROM SERVICE DATE means the earlier of

     

    
      	
               
      

            	
              (a)

            	
              the
      date on which an Employee quits, retires, dies or is discharged,
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      first anniversary of the date an Employee begins a one-year absence from
      service (with or without pay).  This absence may be the result
      of any combination of vacation, holiday, sickness, disability, leave of
      absence or layoff.

            

    

     

    Solely to
determine whether a one-year Period of Severance has occurred for eligibility or
vesting purposes for an Employee who is absent from service beyond the first
anniversary of the first day of a Parental Absence, Severance from Service Date
is the second anniversary of the first day of the Parental
Absence.  The period between the first and second anniversaries of the
first day of the Parental Absence is not a Period of Service and is not a Period
of Severance.

     

    YEARLY
DATE means July 1, 1997, and each following January 1.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    ARTICLE
II

     

    

     

    PARTICIPATION

     

    SECTION
2.01  --              ACTIVE
PARTICIPANT.

     

    
      	
               
      

            	
              (a)

            	
              An
      Employee shall first become an Active Participant (begin active
      participation in the Plan) on the earliest Monthly Date on which he is an
      Eligible Employee.

            

    

     

    The date
is his Entry Date.

     

    If a
person has been an Eligible Employee who has met all the eligibility
requirements stated above,

     

    
      	
               
      

            	
              (b)

            	
              An
      Inactive Participant shall again become an Active Participant (resume
      active participation in the Plan) on the date he again performs an Hour of
      Service as an Eligible Employee.  This date is his Reentry
      Date.

            

    

     

    Upon
again becoming an Active Participant, he shall cease to be an Inactive
Participant.

     

    
      	
               
      

            	
              (c)

            	
              A
      former Participant shall again become an Active Participant (resume active
      participation in the Plan) on the date he again performs an Hour of
      Service as an Eligible Employee.  This date is his Reentry
      Date.

            

    

     

    There
shall be no duplication of benefits for a Participant under this Plan because of
more than one period as an Active Participant.

     

    SECTION
2.02  --              INACTIVE
PARTICIPANT.

     

    An Active
Participant shall become an Inactive Participant on the earlier of the
following:

     

    
      	
               
      

            	
              (a)

            	
              The
      date on which he ceases to be an Eligible Employee (on his Retirement Date
      if the date he ceases to be an Eligible Employee occurs within one month
      of his Retirement Date).

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      effective date of complete termination of the
  Plan.

            

    

     

    SECTION
2.03  --              CESSATION
OF PARTICIPATION.

     

    A
Participant shall cease to be a Participant on the date he is no longer an
Eligible Employee and the value of his Account is zero.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    ARTICLE
III

     

    

     

    CONTRIBUTIONS

     

    SECTION
3.01  --              SALARY
SAVINGS CONTRIBUTIONS

     

    Salary
Savings Contributions shall be equal to any percentage of the Participant’s
Compensation for the pay period as elected by the Participant, and are as
described below.

     

    
      	
               
      

            	
              (a)

            	
              Contributions of amounts
      refunded or not accepted by the Qualified Plan due to requirements under
      Code Sections 401(a)(17), 401(k), 401(m) and
      415.  Participants may elect to contribute amounts
      refunded or not accepted by the Qualified Plan due to the requirements of
      Code Sections 401(a)(17), 401(k), 401(m) and 415 to the Plan by
      designation on an election form provided by the
  Employer.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Contributions in excess of the
      Qualified Plan specified maximum deferral
      percentage.  Participants who have current elections on
      file to contribute the maximum percentage of compensation permitted under
      the Qualified Plan (12% in 1997) may elect to make Salary Savings
      Contributions to the Plan by designation on an election form provided by
      the Employer.

            

    

     

    Elections
to start or change Salary Savings Contributions may be effective on a
Participant’s Entry Date (Reentry Date, if applicable) or any following
date.  The Participant may start, make any change or terminate an
election by completing a new election form provided by the
Employer.

     

    SECTION
3.02  --              EMPLOYER
CONTRIBUTIONS

     

    Employer
Contributions for each Plan Year are as described below:

     

    
      	
               
      

            	
              (a)

            	
              Matching
      Contributions.  For Participants who are 100% vested
      under the Qualified Plan, the amount of each Matching Contribution made by
      the Employer for a Participant shall be equal to the amount the Employer
      would have made under the Qualified Plan in the absence of limitations
      imposed by Code Sections 401(a)(17), 401(k), 401(m) and 415, if the
      Participant had made all contributions contributed to this Plan to the
      Qualified Plan, reduced by the Employer’s matching contributions to the
      Qualified Plan.

            

    

     

    For
Participants who are less than 100% vested under the Qualified Plan, the
Matching Contribution to the Plan is determined as described in the above
paragraph, but only to the extent these contributions would be vested according
to the vesting provisions of the Qualified Plan.  Amounts not
initially contributed to the Plan will be contributed by the Employer to the
Plan in subsequent years as the Participant’s vesting status under the Qualified
Plan increases.

     

    
      	
               
      

            	
              (b)

            	
              Excess
      Contributions.  For Participants who are 100% vested
      under the Qualified Plan, the amount of each Excess Contribution made by
      the Employer

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    for the
Participant shall be equal to the amount the Employer would have contributed to
the Qualified Plan if the limits of Section 415 and 401(a)(17) of the Code were
not operative, reduced by the Employer’s Discretionary Contributions (as defined
in the Qualified Plan) to the Qualified Plan.

     

    For
Participants who are less than 100% vested under the Qualified Plan, the amount
of each Excess Contribution made by the Employer for the Participant is as
described in the above paragraph, but only to the extent these contributions
would be vested according to the vesting provisions of the Qualified
Plan.  Amounts not initially contributed to the Plan will be
contributed by the Employer to the Plan in subsequent years as the Participant’s
vesting status under the Qualified Plan increases.

     

    SECTION
3.03  --              NONFORFEITABILITY
OF CONTRIBUTIONS.

     

    All
Contributions are fully vested and nonforfeitable when made.

     

    SECTION
3.04  --              ALLOCATION.

     

    The
following Contributions for each Plan Year shall be allocated to each
Participant for whom such Contributions were made under the SALARY SAVINGS
CONTRIBUTIONS and EMPLOYER CONTRIBUTIONS SECTIONS of Article III.

     

    Salary
Savings Contributions

    Matching
Contributions

    Excess
Contributions

     

    These
Contributions shall be allocated when made and credited to the Participant’s
Account.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    ARTICLE
IV

     

     

     

    INVESTMENT
OF CONTRIBUTIONS

     

    SECTION
4.01  --              INVESTMENT
OF CONTRIBUTIONS.

     

    All
Contributions are forwarded by the Employer to the appropriate funding
arrangement for deposit in the Investment Fund.

     

    Investment
of Contributions is governed by the provisions of the Plan, the Group Contract
and any other funding arrangement in which the Investment Fund is or may be
invested.  To the extent permitted by the Plan, Group Contract or
other funding arrangement, the Participant shall direct the Contributions to any
of the accounts available under the Plan or Group Contract and may request the
transfer of assets resulting from those Contributions between such
accounts.  A Participant may not direct the Employer to invest the
Participant’s Account in collectibles.  To the extent that a
Participant does not direct the investment of his Account, such Account shall be
invested ratably in the accounts available under the Investment Fund or Group
Contract in the same manner as the undirected Accounts of all other
Participants.  The Accounts of all Inactive Participants may be
segregated and invested separately from the Accounts of all other
Participants.

     

    The
Investment Fund shall be valued at current fair market value as of the last day
of the last calendar month ending in the Plan Year and, at the discretion of the
Employer, may be valued more frequently.  The valuation shall take
into consideration investment earnings credited, expenses charged, payments made
and changes in the value of the assets held in the Investment
Fund.  The Account of a Participant shall be credited with its share
of the gains and losses of the Investment Fund.  That part of a
Participant’s Account invested in a funding arrangement which establishes an
account or accounts for such Participant thereunder shall be credited with the
gain or loss from such account or accounts.  That part of a
Participant’s Account which is invested in other funding arrangements shall be
credited with a proportionate share of the gain or loss of such
investments.  The share shall be determined by multiplying the gain or
loss of the investment by the ratio of the part of the Participant’s Account
invested in such funding arrangement to the total of the Investment Fund
invested in such funding arrangement.

     

    At least
annually, the Named Fiduciary shall review all pertinent Employee information
and Plan data in order to establish the funding policy of the Plan and to
determine appropriate methods of carrying out the Plan’s
objectives.  The Named Fiduciary shall inform any Investment Manager
of the Plan’s short-term and long-term financial needs so the investment policy
can be coordinated with the Plan’s financial requirements.

     

    SECTION
4.01A--            
AGREEMENT OF AGENCY.

     

    The
Employer agrees that it will act as Agent of its employees who are Participants
under this Plan for purposes of entering into a Group Contract and collecting
salary deferral amounts, if any, and any Employer deposits to the Plan, and
transmitting said amounts to the Insurer for deposit under the Group
Contract.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    As Agent,
the Employer has the right to:

     

    
      	
               
      

            	
              (i)

            	
              agree
      to any amendments to such contract, as long as any such amendment does not
      adversely affect the amounts accumulated for a Participant or beneficiary
      before the effective date of said
amendment;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              terminate
      the Group Contract; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              direct
      benefit payments and exercise any other rights, duties and privileges of
      the Contractholder.

            

    

     

    The
Insurer may rely on information given by the Agent and on Contractholder
decisions made by the Agent.  Nothing in this agency agreement,
however, gives the Agent the right to direct payments from the Group Contract to
other than Participants or their beneficiaries without the express consent of
the Participant.  In no event will the Agent convert assets held under
the Group Contract to its own use.

     

    The
Employer and its successors or assignees shall remain Agent until it notifies
each Participant hereunder that it will no longer serve as Agent.  The
Employer’s agency agreement will not terminate until the Group Contract has been
terminated by the Employer and distribution of the Participant accounts has
occurred.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    ARTICLE
V

     

    

     

    BENEFITS

     

    SECTION
5.01  --              RETIREMENT
BENEFITS.

     

    On a
Participant’s Retirement Date, his Account shall be distributed to him according
to the distribution of benefits provisions of Article VI and the provisions of
the SMALL AMOUNTS SECTION of Article IX.

     

    SECTION
5.02  --              DEATH
BENEFITS.

     

    If a
Participant dies before his Annuity Starting Date, his Account shall be
distributed according to the distribution of benefits provisions of Article VI
and the provisions of the SMALL AMOUNTS SECTION of Article IX.

     

    SECTION
5.03  --              TERMINATION
BENEFITS.

     

    A
Participant may receive a distribution of his Account at any time after he
ceases to be an Employee, provided he has not again become an
Employee.  If such amount is not payable under the provisions of the
SMALL AMOUNTS SECTION of Article IX, it will be distributed only if the
Participant so elects.  The Participant’s election shall be subject to
the requirements in the ELECTION PROCEDURES SECTION of Article VI for a
qualified election of a retirement benefit.

     

    If a
Participant does not receive an earlier distribution according to the provisions
of this section or the SMALL AMOUNTS SECTION of Article IX, upon his Retirement
Date or death, his Account shall be applied according to the provisions of the
RETIREMENT BENEFITS SECTION or the DEATH BENEFITS SECTION of Article
V.

     

    SECTION
5.04  --              WHEN
BENEFITS START.

     

    Benefits
under the Plan begin when a Participant retires, dies or ceases to be an
Employee, whichever applies, as provided in the preceding sections of this
article.  The start of benefits is subject to the qualified election
procedures of Article VI.

     

    Unless
otherwise elected, benefits shall begin before the sixtieth day following the
close of the Plan Year in which the latest date below occurs:

     

    
      	
               
      

            	
              (a)

            	
              The
      date the Participant attains age 65 (Normal Retirement Age, if
      earlier).

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      tenth anniversary of the Participant’s Entry
  Date.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      date the Participant ceases to be an
Employee.

            

    

     

    Notwithstanding
the foregoing, the failure of a Participant and spouse to consent to a
distribution while a benefit is immediately distributable, within the meaning of
the ELECTION

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    PROCEDURES
SECTION of Article VI, shall be deemed to be an election to defer commencement
of payment of any benefit sufficient to satisfy this section.

     

    The
Participant may elect to have his benefits begin after the latest date for
beginning benefits described above, subject to the provisions of this
section.  The Participant shall make the election in writing and
deliver the signed statement of election to the Plan Administrator before Normal
Retirement Date or the date he ceases to be an Employee, if
later.  The election must describe the form of distribution and the
date the benefits will begin.

     

    SECTION
5.05  --              WITHDRAWAL
PRIVILEGES.

     

    Before he
ceases to be an Employee, a Participant may withdraw all or part of his Account,
as permitted under the funding arrangement for this Plan, and in accordance with
the procedures and limitations set up by the Plan Administrator.

     

    A request
for withdrawal shall be in writing on a form furnished for that purpose and
delivered to the Plan Administrator before the withdrawal is to
occur.  The Participant’s request shall be subject to the requirements
in the ELECTION PROCEDURES SECTION of Article VI for a qualified election of a
retirement benefit payable in a form other than a Qualified Joint and Survivor
Form.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    ARTICLE
VI

     

    

     

    DISTRIBUTION
OF BENEFITS

     

    SECTION
6.01  --              AUTOMATIC
FORMS OF DISTRIBUTION.

     

    Unless a
qualified election of an optional form of benefit has been made within the
election period (see the ELECTION PROCEDURES SECTION of Article VI),. the
automatic form of benefit payable to or on behalf of a Participant is determined
as follows:

     

    
      	
               
      

            	
              (a)

            	
              The
      automatic form of retirement benefit for a Participant who does not die
      before his Annuity Starting Date shall be the Qualified Joint and Survivor
      Form.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      automatic form of death benefit for a Participant who dies before his
      Annuity Starting Date shall be:

            

    

     

    
      	
               
      

            	
              (1)

            	
              A
      Qualified Preretirement Survivor Annuity for a Participant who has a
      spouse to whom he has been continuously married throughout the one-year
      period ending on the date of his death.  The spouse may elect to
      start receiving the death benefit on any first day of the month on or
      after the Participant dies.  If the spouse dies before benefits
      start, the Participant’s Account, determined as of the date of the
      spouse’s death, shall be paid to the spouse’s
  Beneficiary.

            

    

     

    
      	
               
      

            	
              (2)

            	
              A
      single-sum payment to the Participant’s Beneficiary for a Participant who
      does not have a spouse who is entitled to a Qualified Preretirement
      Survivor Annuity.

            

    

     

    Before a
death benefit will be paid on account of the death of a Participant who does not
have a spouse who is entitled to a Qualified Preretirement Survivor Annuity, it
must be established to the satisfaction of a plan representative that the
Participant does not have such a spouse.

     

    SECTION
6.02  --              OPTIONAL
FORMS OF DISTRIBUTION.

     

    
      	
               
      

            	
              (a)

            	
              The
      optional forms of retirement benefit shall be the following: a straight
      life annuity; single life annuities with certain periods of five, ten or
      fifteen years; a single life annuity with installment refund; survivorship
      life annuities with installment refund and survivorship percentages of 50,
      66 2/3 or 100; fixed period annuities for any period of whole months which
      is not less than 60 nor more than 360; and a series of installments chosen
      by the Participant.  The minimum payment will be based on a
      period equal to the joint and last survivor expectancy of the Participant
      and the Participant’s spouse, if any, where the joint and last survivor
      expectancy is recalculated.  The balance of the Participant’s
      Account, if any, will be payable on the Participant’s death to his
      Beneficiary in a single sum.  The Participant may also elect to
      receive his Account in a single-sum
payment.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Election
of an optional form is subject to the qualified election provisions of Article
VI.

     

    
      	
               
      

            	
              (b)

            	
              The
      optional forms of death benefit are a single-sum payment and any annuity
      that is an optional form of retirement benefit.  However, a
      series of installments shall not be available if the Beneficiary is not
      the spouse of the deceased
Participant.

            

    

     

    SECTION
6.03  --              ELECTION
PROCEDURES.

     

    The
Participant, Beneficiary, or spouse shall make any election under this section
in writing.  The Plan Administrator may require such individual to
complete and sign any necessary documents as to the provisions to be
made.  Any election permitted under (a) and (b) below shall be subject
to the election provisions of (c) below.

     

    
      	
               
      

            	
              (a)

            	
              Retirement
      Benefits.  A Participant may elect his Beneficiary or Contingent
      Annuitant and may elect to have retirement benefits distributed under any
      of the optional forms of retirement benefit described in the OPTIONAL
      FORMS OF DISTRIBUTION SECTION of Article
VI.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Death
      Benefits.  A Participant may elect his Beneficiary and may elect
      to have death benefits distributed under any of the optional forms of
      death benefit described in the OPTIONAL FORMS OF DISTRIBUTION SECTION of
      Article VI.

            

    

     

    If the
Participant has not elected an optional form of distribution for the death
benefit payable to his Beneficiary, the Beneficiary may, for his own benefit,
elect the form of distribution, in like manner as a Participant.

     

    The
Participant may waive the Qualified Preretirernent Survivor Annuity by naming
someone other than his spouse as Beneficiary.

     

    In lieu
of the Qualified Preretirement Survivor Annuity described in the AUTOMATIC FORMS
OF DISTRIBUTION SECTION of Article VI, the spouse may, for his own benefit,
waive the Qualified Preretirement Survivor Annuity by electing to have the
benefit distributed under any of the optional forms of death benefit described
in the OPTIONAL FORMS OF DISTRIBUTION SECTION of Article VI.

     

    
      	
               
      

            	
              (c)

            	
              Qualified
      Election.  The Participant, Beneficiary or spouse may make an
      election at any time during the election period.  The
      Participant, Beneficiary, or spouse may revoke the election made (or make
      a new election) at any time and any number of times during the election
      period.  An election is effective only if it meets the consent
      requirements below.

            

    

     

    The
election period as to retirement benefits is the 90-day period ending on the
Annuity Starting Date.  An election to waive the Qualified Joint and
Survivor Form may not be made before the date he is provided with the notice of
the ability

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    to waive
the Qualified Joint and Survivor Form.  If the Participant elects the
series of installments, he may elect on any later date to have the balance of
his Account paid under any of the optional forms of retirement benefit available
under the Plan.  His election period for this election is the 90-day
period ending on the Annuity Starting Date for the optional form of retirement
benefit elected.

     

    A
Participant may make an election as to death benefits at any time before he
dies.  The spouse’s election period begins on the date the Participant
dies and ends on the date benefits begin.  The Beneficiary’s election
period begins on the date the Participant dies and ends on the date benefits
begin.  An election to waive the Qualified Preretirement Survivor
Annuity may not be made by the Participant before the date he is provided with
the notice of the ability to waive the Qualified Preretirement Survivor
Annuity.  A Participant’s election to waive the Qualified
Preretirement Survivor Annuity which is made before the first day of the Plan
Year in which he reaches age 35 shall become invalid on such date.  An
election made by a Participant after he ceases to be an Employee will not become
invalid on the first day of the Plan Year in which he reaches age 35 with
respect to death benefits from that part of his Account resulting from
Contributions made before he ceased to be an Employee.

     

    If the
Participant’s Account has at any time exceeded $5,000, any benefit which is (1)
immediately distributable or (2) payable in a form other than a Qualified Joint
and Survivor Form or a Qualified Preretirement Survivor Annuity requires the
consent of the Participant and the Participant’s spouse (or where either the
Participant or the spouse has died, the survivor).  The consent of the
Participant or spouse to a benefit which is immediately distributable must not
be made before the date the Participant or spouse is provided with the notice of
the ability to defer the distribution.  Such consent shall be made in
writing.  The consent shall not be made more than 90 days before the
Annuity Starting Date.  Spousal consent is not required for a benefit
which is immediately distributable in a Qualified Joint and Survivor
Form.  Furthermore, if spousal consent is not required because the
Participant is electing an optional form of retirement benefit that is not a
life annuity pursuant to (d) below, only the Participant need consent to the
distribution of a benefit payable in a form that is not a life annuity and which
is immediately distributable.

     

    A benefit
is immediately distributable if any part of the benefit could be distributed to
the Participant (or surviving spouse) before the Participant attains (or would
have attained if not deceased) the older of Normal Retirement Age or age
62.  If the Qualified Joint and Survivor Form is waived, the spouse
has the right to limit consent only to a specific Beneficiary or a specific form
of benefit.  The spouse can relinquish one or both
rights.  Such consent shall be made in writing.  The consent
shall not be made more than 90 days before the Annuity Starting
Date.  If the Qualified Preretirement Survivor Annuity is waived, the
spouse has the right to limit consent only to a specific
Beneficiary.  Such consent shall be in writing.  The
spouse’s consent shall be witnessed by a plan representative or notary
public.  The spouse’s consent must acknowledge the

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    effect of
the election, including that the spouse had the right to limit consent only to a
specific Beneficiary or a specific form of benefit, if applicable, and that the
relinquishment of one or both such rights was voluntary.  Unless the
consent of the spouse expressly permits designations by the Participant without
a requirement of further consent by the spouse, the spouse’s consent must be
limited to the form of benefit, if applicable, and the Beneficiary (including
any Contingent Annuitant), class of Beneficiaries, or contingent Beneficiary
named in the election.  Spousal consent is not required, however, if
the Participant establishes to the satisfaction of the plan representative that
the consent of the spouse cannot be obtained because there is no spouse or the
spouse cannot be located.  A spouse’s consent under this paragraph
shall not be valid with respect to any other spouse.  A Participant
may revoke a prior election without the consent of the spouse.  Any
new election will require a new spousal consent, unless the consent of the
spouse expressly permits such election by the Participant without further
consent by the spouse.  A spouse’s consent may be revoked at any time
within the Participant’s election period.

     

    
      	
               
      

            	
              (d)

            	
              Special
      Rule for Profit Sharing Plan.  As provided in the preceding
      provisions of the Plan, if a Participant has a spouse to whom he has been
      continuously married throughout the one-year period ending on the date of
      his death, the Participant’s Account shall be paid to such
      spouse.  However, if there is no such spouse or if the surviving
      spouse has already consented in a manner conforming to the election
      requirements in (c) above, the Account shall be payable to the
      Participant’s Beneficiary in the event of the Participant’s
      death.

            

    

     

    The
Participant may waive the spousal death benefit described above at any time
provided that no such waiver shall be effective unless it satisfies the
conditions of (c) above (other than the notification requirement referred to
therein) that would apply to the Participant’s waiver of the Qualified
Preretirement Survivor Annuity.

     

    Because
this is a profit sharing plan which pays death benefits as described above, this
subsection (d) applies if the following condition is met: with respect to the
Participant, this Plan is not a direct or indirect transferee after December 31,
1984, of a defined benefit plan, money purchase plan (including a target plan),
stock bonus plan or profit sharing plan which is subject to the survivor annuity
requirements of ERISA Act Section 205.  If the above condition is met,
spousal consent is not required for electing a benefit payable in a form that is
not a life annuity.  If the above condition is not met, the consent
requirements of this article shall be operative.

     

    SECTION
6.04  --              NOTICE
REQUIREMENTS.

     

    
      	
               
      

            	
              (a)

            	
              Optional
      forms of retirement benefit.  The Plan Administrator shall
      furnish to the Participant and the Participant’s spouse a written
      explanation of the optional forms of retirement benefit in the OPTIONAL
      FORMS OF DISTRIBUTION SECTION of Article VI, including the material
      features and relative values of these options, in a manner that would
      satisfy the notice requirements of
ERISA

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Act
Section 205 and the right of the Participant and the Participant’s spouse to
defer distribution until the benefit is no longer immediately
distributable.  The Plan Administrator shall furnish the written
explanation by a method reasonably calculated to reach the attention of the
Participant and the Participant’s spouse no less than 30 days and no more than
90 days before the Annuity Starting Date.

     

    
      	
               
      

            	
              (b)

            	
              Qualified
      Joint and Survivor Form.  The Plan Administrator shall furnish
      to the Participant a written explanation of the following:  the
      terms and conditions of the Qualified Joint and Survivor Form; the
      Participant’s right to make, and the effect of, an election to waive the
      Qualified Joint and Survivor Form; the rights of the Participant’s spouse;
      and the right to revoke an election and the effect of such a
      revocation.  The Plan Administrator shall furnish the written
      explanation by a method reasonably calculated to reach the attention of
      the Participant no less than 30 days and no more than 90 days before the
      Annuity Starting Date.

            

    

     

    After the
written explanation is given, a Participant or spouse may make written request
for additional information.  The written explanation must be
personally delivered or mailed (first class mail, postage prepaid) to the
Participant or spouse within 30 days from the date of the written
request.  The Plan Administrator does not need to comply with more
than one such request by Participant or spouse.

     

    The Plan
Administrator’s explanation shall be written in nontechnical language and will
explain the terms and conditions of the Qualified Joint and Survivor Form and
the financial effect upon the Participant’s benefit (in terms of dollars per
benefit payment) of electing not to have benefits distributed in accordance with
the Qualified Joint and Survivor Form.

     

    
      	
               
      

            	
              (c)

            	
              Qualified
      Preretirement Survivor Annuity.  As required by the Code and
      Federal regulation, the Plan Administrator shall furnish to the
      Participant a written explanation of the following: the terms and
      conditions of the Qualified Preretirement Survivor Annuity; the
      Participant’s right to make, and the effect of, an election to waive the
      Qualified Preretirement Survivor Annuity; the rights of the Participant’s
      spouse; and the right to revoke an election and the effect of such a
      revocation.  The Plan Administrator shall furnish the written
      explanation by a method reasonably calculated to reach the attention of
      the Participant within the applicable period.  The applicable
      period for a Participant is whichever of the following periods ends
      last:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      period beginning one year before the date the individual becomes a
      Participant and ending one year after such date;
  or

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      period beginning one year before the date the Participant’s spouse is
      first entitled to a Qualified Preretirement Survivor Annuity and ending
      one year after such date.

            

    

     

    If such
notice is given before the period beginning with the first day of the Plan Year
in which the Participant attains age 32 and ending with the close of the
Plan

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Year
preceding the Plan Year in which the Participant attains age 35, an additional
notice shall be given within such period.  If a Participant ceases to
be an Employee before attaining age 35, an additional notice shall be given
within the period beginning one year before the date he ceases to be an Employee
and ending one year after such date.

     

    After the
written explanation is given, a Participant or spouse may make written request
for additional information.  The written explanation must be
personally delivered or mailed (first class mail, postage prepaid) to the
Participant or spouse within 30 days from the date of the written
request.  The Plan Administrator does not need to comply with more
than one such request by a Participant or spouse.

     

    The Plan
Administrator’s explanation shall be written in nontechnical language and will
explain the terms and conditions of the Qualified Preretirement Survivor Annuity
and the financial effect upon the spouse’s benefit (in terms of dollars per
benefit payment) of electing not to have benefits distributed in accordance with
the Qualified Preretirernent Survivor Annuity.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

     

    ARTICLE
VII

     

    

     

    TERMINATION
OF PLAN

     

    The
Employer expects to continue the Plan indefinitely but reserves the right to
terminate the Plan in whole or in part at any time upon giving written notice to
all parties concerned.  Complete discontinuance of Contributions under
the Plan constitutes complete termination of Plan.

     

    The
Participant’s Account shall continue to participate in the earnings credited,
expenses charged and any appreciation or depreciation of the Investment Fund
until the Account is distributed.  A distribution under this article
will be a retirement benefit and shall be distributed to the Participant
according to the provisions of Article VI.

     

    Upon
complete termination of Plan, no more Employees shall become Participants and no
more Contributions shall be made.

     

    The
assets of this Plan shall not be paid to the Employer at any time.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    ARTICLE
VIII

     

    

     

    ADMINISTRATION
OF PLAN

     

    SECTION
8.01  --              ADMINISTRATION.

     

    Subject
to the provisions of this article, the Plan Administrator has complete control
of the administration of the Plan.  The Plan Administrator has all the
powers necessary for it to properly carry out its administrative
duties.  Not in limitation, but in amplification of the foregoing, the
Plan Administrator has the power to construe the Plan and to determine all
questions that may arise under the Plan, including all questions relating to the
eligibility of Employees to participate in the Plan and the amount of benefit to
which any Participant, Beneficiary, spouse or Contingent Annuitant may become
entitled.  The Plan Administrator’s decisions upon all matters within
the scope of its authority shall be final.

     

    Unless
otherwise set out in the Plan, Group Contract or other funding arrangement, the
Plan Administrator may delegate recordkeeping and other duties which are
necessary for the administration of the Plan to any person or firm which agrees
to accept such duties.  The Plan Administrator shall be entitled to
rely upon all tables, valuations, certificates and reports furnished by the
consultant or actuary appointed by the Plan Administrator and upon all opinions
given by any counsel selected or approved by the Plan
Administrator.

     

    The Plan
Administrator shall receive all claims for benefits by Participants, former
Participants, Beneficiaries, spouses and Contingent Annuitants.  The
Plan Administrator shall determine all facts necessary to establish the right of
any Claimant to benefits and the amount of those benefits under the provisions
of the Plan.  The Plan Administrator may establish rules and
procedures to be followed by Claimants in filing claims for benefits, in
furnishing and verifying proofs necessary to determine age, and in any other
matters required to administer the Plan.

     

    SECTION
8.02  --              RECORDS.

     

    All acts
and determinations of the Plan Administrator shall be duly
recorded.  All these records, together with other documents necessary
for the administration of the Plan, shall be preserved in the Plan
Administrator’s custody.

     

    Writing
(handwriting, typing, printing), photostating, photographing, microfilming,
magnetic impulse, mechanical or electrical recording or other forms of data
compilation shall be acceptable means of keeping records.

     

    SECTION
8.03  --              INFORMATION
AVAILABLE.

     

    Any
Participant in the Plan or any Beneficiary may examine copies of the Plan
description, latest annual report, any bargaining agreement, this Plan, the
Group Contract or any other instrument under which the Plan was established or
is operated.  The Plan Administrator shall maintain all of the items
listed in this section in its office, or in such other place or places as it may
designate in order to comply with governmental regulations.  These
items may be examined during reasonable business hours.  Upon the
written request of a Participant or Beneficiary receiving benefits under the
Plan, the Plan Administrator will furnish him with a

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    copy of
any of these items.  The Plan Administrator may make a reasonable
charge to the requesting person for the copy.

     

    SECTION
8.04  --              CLAIM
AND APPEAL PROCEDURES.

     

    A
Claimant must submit any required forms and pertinent information when making a
claim for benefits under the Plan.

     

    If a
claim for benefits under the Plan is denied, the Plan Administrator shall
provide adequate written notice to the Claimant whose claim for benefits under
the Plan has been denied.  The notice must be furnished within 90 days
of the date that the claim is received by the Plan Administrator.  The
Claimant shall be notified in writing within this initial 90-day period if
special circumstances require an extension of time needed to process the claim
and the date by which the Plan Administrator’s decision is expected to be
rendered.  The written notice shall be furnished no later than 180
days after the date the claim was received by the Plan
Administrator.

     

    The Plan
Administrator’s notice to the Claimant than specify the reason for the denial;
specify references to pertinent Plan provisions on which denial is based;
describe any additional material and information needed for the Claimant to
perfect his claim for benefits; explain why the material and information is
needed; inform the Claimant that any appeal he wishes to make must be in writing
to the Plan Administrator within 60 days after receipt of the Plan
Administrator’s notice of denial of benefits and that failure to make the
written appeal within such 60-day period shall render the Plan Administrator’s
determination of such denial final, binding and conclusive.

     

    If the
Claimant appeals to the Plan Administrator, the Claimant, or his authorized
representative, may submit in writing whatever issues and comments the Claimant,
or his representative, feels are pertinent.  The Claimant, or his
authorized representative may review pertinent Plan documents.  The
Plan Administrator shall reexamine all facts related to the appeal and make a
final determination as to whether the denial of benefits is justified under the
circumstances.  The Plan Administrator shall advise the Claimant of
its decision within 60 days of his written request for review, unless special
circumstances (such as a hearing) would make rendering a decision within the
60-day limit unfeasible.  The Claimant must be notified within the
60-day limit if an extension is necessary.  The Plan Administrator
shall render a decision on a claim for benefits no later than 120 days after the
request for review s received.

     

    SECTION
8.05  --              DELEGATION
OF AUTHORITY.

     

    All or
any part of the administrative duties and responsibilities under this article
may be delegated by the Plan Administrator to a retirement
committee.  The duties and responsibilities of the retirement
committee shall be set out in a separate written agreement.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    ARTICLE
IX

     

    

     

    GENERAL
PROVISIONS

     

    SECTION
9.01  --              AMENDMENTS.

     

    The
Employer may amend this Plan at any time, to comply with the requirements of any
law or regulation issued by any governmental agency to which the Employer is
subject.  Amendments may be made in the form of written resolutions or
by a separate written document and, except in the case of an amendment adopted
pursuant to the next sentence hereof, shall be adopted pursuant to action by the
Board of Directors of the Employer (including pursuant to any standing
authorization for any officer, director or committee to adopt amendments) in
accordance with its applicable procedures, including, where applicable, by
majority vote or consent in writing.  In addition, and as an
alternative, to amendment of the Plan by action of the Board of Directors of the
Employer, the Chief Executive Officer and the Chief Financial Officer of Dynex
Capital, Inc., acting jointly or individually, shall be and are hereby
authorized to adopt on behalf of the Board of Directors of the Employer and to
execute any technical amendments to the Plan which in the opinion of counsel for
Dynex Capital, Inc. are required by law and are deemed advisable by such
officers and to also adopt and execute any other discretionary amendments to the
Plan which are deemed advisable by such officers so long as any such amendments
do not, in the view of such officers, materially increase costs of the Plan to
the Employer.  An amendment may not diminish or adversely affect any
accrued interest or benefit of Participants or their Beneficiaries or eliminate
an optional form of distribution with respect to benefits attributable to
service before the amendment nor allow reversion or diversion of Plan assets to
the Employer at any time, except as may be necessary to comply with the
requirements of any law or regulation issued by any governmental agency to which
the Employer is subject.  No amendment to this Plan shall be effective
to the extent that it has the effect of decreasing a Participant’s accrued
benefit.  For purposes of this paragraph, a Plan amendment which has
the effect of decreasing a Participant’s Account or eliminating an optional form
of benefit, with respect to benefits attributable to service before the
amendment shall be treated as reducing an accrued
benefit.  Furthermore, if the vesting schedule of the Plan is amended,
in the case of an Employee who is a Participant as of the later of the date such
amendment is adopted or the date it becomes effective, the nonforfeitable
percentage (determined as of such date) of such Employee’s employer-derived
accrued benefit will not be less than his percentage computed under the Plan
without regard to such amendment.

     

    SECTION
9.02  --              MERGERS.

     

    The Plan
may not be merged or consolidated with, nor have its assets or liabilities
transferred to, any other retirement plan, unless each Participant in the plan
would (if the plan then terminated) receive a benefit immediately after the
merger, consolidation or transfer which is equal to or greater than the benefit
the Participant would have been entitled to receive immediately before the
merger, consolidation or transfer (if this Plan had then
terminated).

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      SECTION
9.03  --              PROVISIONS
RELATING TO THE INSURER AND OTHER PARTIES.

       

    

    The
obligations of an Insurer shall be governed solely by the provisions of the
Group Contract.  The Insurer shall not be required to perform any act
not provided in or contrary to the provisions of the Group
Contract.  See the CONSTRUCTION SECTION of this article.

     

    Any
issuer or distributor of investment contracts or securities is governed solely
by the terms of its policies, written investment contract, prospectuses,
security instruments, and any other written agreements entered into with the
Employer or Participant.

     

    Such
Insurer, issuer or distributor is not a party to the Plan, nor bound in any way
by the Plan provisions.  Such parties shall not be required to look to
the terms of this Plan, nor to determine whether the Employer, the Plan
Administrator, or the Named Fiduciary have the authority to act in any
particular manner or to make any contract or agreement.

     

    Until
notice of any amendment or termination of this Plan has been received by the
Insurer at its home office or an issuer or distributor at their principal
address, they are and shall be fully protected in assuming that the Plan has not
been amended or terminated and in dealing with any party acting as Agent
according to the latest information which they have received at their home
office or principal address.

     

    SECTION
9.04  --              EMPLOYMENT
STATUS.

     

    Nothing
contained in this Plan gives an Employee the right to be retained in the
Employer’s employ or to interfere with the Employer’s right to discharge any
Employee.

     

    SECTION
9.05  --              RIGHTS
TO PLAN ASSETS.

     

    No
Employee shall have any right to or interest in any assets of the Plan upon
termination of his employment or otherwise except as specifically provided under
this Plan, and then only to the extent of the benefits payable to such Employee
in accordance with Plan provisions.

     

    Any final
payment or distribution to a Participant or his legal representative or to any
Beneficiaries, spouse or Contingent Annuitant of such Participant under the Plan
provisions shall be in full satisfaction of all claims against the Plan, the
Named Fiduciary, the Plan Administrator, the Insurer, and the Employer arising
under or by virtue of the Plan.

     

    SECTION
9.06  --              BENEFICIARY

     

    Each
Participant may name a Beneficiary to receive any death benefit (other than any
income payable to a Contingent Annuitant) that may arise out of his
participation in the Plan.  The Participant may change his Beneficiary
from time to time.  Unless a qualified election has been made, for
purposes of distributing any death benefits before Retirement Date, the
Beneficiary of a Participant who has a spouse who is entitled to a Qualified
Preretirement Survivor Annuity shall be the Participant’s spouse.  The
Participant’s Beneficiary designation and any change of Beneficiary shall be
subject to the provisions of the ELECTION

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    PROCEDURES
SECTION of Article VI.  It is the responsibility of the Participant to
give written notice to the Insurer of the name of the Beneficiary on a form
furnished for that purpose.

     

    With the
Employer’s consent, the Plan Administrator may maintain records of Beneficiary
designations for Participants before their Retirement Dates.  In that
event, the written designations made by Participants shall be filed with the
Plan Administrator.  If a Participant dies before his Retirement Date,
the Plan Administrator shall certify to the Insurer the Beneficiary designation
on its records for the Participant.

     

    If, at
the death of a Participant, there is no Beneficiary named or surviving, any
death benefit under the Group Contract shall be paid under the applicable
provisions of the Group Contract.

     

    SECTION
9.07  --              NONALIENATION
OF BENEFITS.

     

    Benefits
payable under the Plan are not subject to the claims of any creditor of any
Participant, Beneficiary, spouse or Contingent Annuitant.  A
Participant, Beneficiary, spouse or Contingent Annuitant does not have any
rights to alienate, anticipate, commute, pledge, encumber or assign any of such
benefits.  The preceding sentences shall also apply to the creation,
assignment, or recognition of a right to any benefit payable with respect to a
Participant according to a domestic relations order, unless such order is
determined by the Plan Administrator to be a qualified domestic relations order,
as defined in ERISA Act Section 206(d), or any domestic relations order entered
before January 1, 1985.

     

    SECTION
9.08  --              CONSTRUCTION.

     

    The
validity of the Plan or any of its provisions is determined under and construed
according to Federal law and, to the extent permissible, according to the laws
of the state in which the Employer has its principal office.  In case
any provision of this Plan is held illegal or invalid for any reason, such
determination shall not affect the remaining provisions of this Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had
never been included.

     

    In the
event of any conflict between the provisions of the Plan and the terms of any
contract or policy issued hereunder, the provisions of the Plan control the
operation and administration of the Plan.

     

    SECTION
9.09  --              LEGAL
ACTIONS.

     

    The Plan,
the Plan Administrator, and the Named Fiduciary are the necessary parties to any
action or proceeding involving the assets held with respect to the Plan or
administration of the Plan.  No person employed by the Employer, no
Participant, former Participant or their Beneficiaries or any other person
having or claiming to have an interest in the Plan is entitled to any notice of
process.  A final judgment entered in any such action or proceeding
shall be binding and conclusive on all persons having or claiming to have an
interest in the Plan.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    SECTION
9.10  --     SMALL AMOUNTS.

     

    If the
Account of a Participant has never exceeded $5,000, the entire Account shall be
payable in a single sum as of the earliest of his Retirement Date, the date he
dies, or the date he ceases to be an Employee for any other
reason.  This is a small amounts payment.  If a small amount
is payable as of the date the Participant dies, the small amounts payment shall
be made to the Participant’s Beneficiary (spouse if the death benefit is payable
to the spouse).  If a small amount is payable while the Participant is
living, the small amounts payment shall be made to the
Participant.  The small amounts payment is in full settlement of all
benefits otherwise payable.  The service credited to a Participant who
is reemployed by the Employer is not diminished as a result of receiving a small
amounts payment.

     

    No other
small amounts payments shall be made.

     

    SECTION
9.11  --              WORD
USAGE.

     

    The
masculine gender, where used in this Plan, shall include the feminine gender and
the singular words as used in this Plan may include the plural, unless the
context indicates otherwise.

     

    

     

    

     

    

     

    

     

    

     

     

     

    
       

      26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]