Document:

exv10w14

 

Exhibit 10.14

PROTOTYPE DEFINED BENEFIT PENSION PLAN AND TRUST

Sponsored By

SBERA

BASIC PLAN DOCUMENT #02

			
	Copyright 2002 McKay Hochman Co., Inc.
	 	AUGUST 2002

 

 

THIS DOCUMENT IS COPYRIGHTED UNDER THE LAWS OF THE UNITED STATES. ITS USE, DUPLICATION OR
REPRODUCTION, INCLUDING THE USE OF ELECTRONIC MEANS, IS PROHIBITED BY LAW WITHOUT THE EXPRESS
CONSENT OF THE AUTHOR.

TABLE OF CONTENTS

	 	 	 	 	 
	DEFINITIONS
	 	 	1	 
	1.1 ACCRUED BENEFIT
	 	 	1	 
	1.2 Actuarial Equivalent (Equivalence)
	 	 	2	 
	1.3 Adoption Agreement
	 	 	2	 
	1.4 Anniversary Date
	 	 	2	 
	1.5 Annual Additions
	 	 	2	 
	1.6 Annual Benefit
	 	 	3	 
	1.7 Annuity Starting Date
	 	 	3	 
	1.8 Applicable Interest Rate
	 	 	3	 
	1.9 Applicable Life Expectancy
	 	 	3	 
	1.10 Applicable Mortality Table
	 	 	3	 
	1.11 Average Annual Compensation
	 	 	3	 
	1.12 Basic Normal Retirement Benefit
	 	 	4	 
	1.13 Break In Service
	 	 	4	 
	1.14 Code
	 	 	4	 
	1.15 Compensation
	 	 	4	 
	1.16 Covered Compensation
	 	 	6	 
	1.17 Custodian
	 	 	6	 
	1.18 Defined Benefit Plan
	 	 	6	 
	1.19 Defined Benefit Plan Dollar Limitation
	 	 	6	 
	1.20 Defined Benefit (Plan) Fraction
	 	 	6	 
	1.21 Defined Contribution Plan
	 	 	7	 
	1.22 Defined Contribution (Plan) Fraction
	 	 	7	 
	1.23 Designated Beneficiary
	 	 	7	 
	1.24 Direct Rollover
	 	 	7	 
	1.25 Disability
	 	 	7	 
	1.26 Distributee
	 	 	7	 
	1.27 Distribution Calendar Year
	 	 	8	 
	1.28 Earliest Retirement Age
	 	 	8	 
	1.29 Early Retirement Age
	 	 	8	 
	1.30 Earned Income
	 	 	8	 
	1.31 Effective Date
	 	 	8	 
	1.32 Election Period
	 	 	8	 
	1.33 Elapsed Time
	 	 	8	 
	1.34 Eligible Retirement Plan
	 	 	8	 
	1.35 Eligible Rollover Distribution
	 	 	8	 
	1.36 Employee
	 	 	9	 
	1.37 Employer
	 	 	9	 
	1.38 Entry Date
	 	 	9	 
	1.39 ERISA
	 	 	9	 
	1.40 First Distribution Calendar Year
	 	 	9	 
	1.41 Fresh-Start Date
	 	 	9	 
	1.42 Fresh-Start Group
	 	 	9	 
	1.43 Frozen Accrued Benefit
	 	 	9	 
	1.44 Frozen Projected Benefit
	 	 	10	 
	1.45 Fund
	 	 	10	 
	1.46 Highest Average Compensation
	 	 	10	 
	1.47 Highly Compensated Employee
	 	 	10	 
	1.48 Hour Of Service
	 	 	11	 
	1.49 Joint And Survivor Annuity
	 	 	12	 
	1.50 Key Employee
	 	 	12	 
	1.51 Leased Employee
	 	 	12	 

i

 

	 	 	 	 	 
	1.52 Limitation Year
	 	 	12	 
	1.53 Lookback Month
	 	 	12	 
	1.54 Maximum Permissible Amount
	 	 	12	 
	1.55 Master Or Prototype Plan
	 	 	13	 
	1.56 Month Of Service
	 	 	13	 
	1.57 Normal Retirement Age
	 	 	14	 
	1.58 Normal Retirement Benefit
	 	 	14	 
	1.59 Normal Retirement Date
	 	 	14	 
	1.60 Owner-Employee
	 	 	14	 
	1.61 Paired Plans
	 	 	14	 
	1.62 Participant
	 	 	14	 
	1.63 Period Of Severance
	 	 	14	 
	1.64 Permissive Aggregation Group
	 	 	14	 
	1.65 Plan
	 	 	14	 
	1.66 Plan Administrator
	 	 	14	 
	1.67 Plan Year
	 	 	14	 
	1.68 Present Value
	 	 	15	 
	1.69 Projected Annual Benefit
	 	 	15	 
	1.70 Qualified Deferred Compensation Plan
	 	 	15	 
	1.71 Qualified Domestic Relations Order
	 	 	15	 
	1.72 Qualified Early Retirement Age
	 	 	15	 
	1.73 Qualified Joint And Survivor Annuity
	 	 	15	 
	1.74 Qualified Voluntary Contribution
	 	 	15	 
	1.75 Required Aggregation Group
	 	 	15	 
	1.76 Required Beginning Date
	 	 	16	 
	1.77 Retirement Protection Act Of 1999 (RPA ‘94) Old Law Benefit
	 	 	16	 
	1.78 Rollover Contribution
	 	 	16	 
	1.79 Self-Employed Individual
	 	 	16	 
	1.80 Service 
	 	 	16	 
	1.81 Shareholder Employee
	 	 	16	 
	1.82 Simplified Employee Pension Plan
	 	 	16	 
	1.83 Social Security Retirement Age
	 	 	16	 
	1.84 Sponsor
	 	 	17	 
	1.85 Spouse
	 	 	17	 
	1.86 Stability Period
	 	 	17	 
	1.87 Straight Life Annuity
	 	 	17	 
	1.88 Super Top-Heavy Plan
	 	 	17	 
	1.89 Tax Reform Act Of 1986 (TRA ‘86) Accrued Benefit
	 	 	17	 
	1.90 Taxable Wage Base
	 	 	17	 
	1.91 Theoretical Contribution
	 	 	17	 
	1.92 Theoretical ILP Reserve
	 	 	17	 
	1.93 Top-Heavy Determination Date
	 	 	17	 
	1.94 Top-Heavy Plan
	 	 	17	 
	1.95 Top-Heavy Ratio
	 	 	18	 
	1.96 Top-Paid Group
	 	 	19	 
	1.97 Transfer Contribution
	 	 	19	 
	1.98 Trust
	 	 	19	 
	1.99 Trustee
	 	 	19	 
	1.100 USERRA
	 	 	19	 
	1.101 Valuation Date
	 	 	19	 
	1.102 Vested Accrued Benefit
	 	 	19	 
	1.103 Voluntary After-tax Contribution
	 	 	19	 
	1.104 Welfare Benefit Fund
	 	 	20	 
	1.105 Year Of Participation
	 	 	20	 
	1.106 Year Of Service
	 	 	20	 
	ELIGIBILITY REQUIREMENTS
	 	 	22	 
	2.1 Participation
	 	 	22	 
	2.2 Change In Classification Of Employment
	 	 	22	 
	2.3 Computation Period
	 	 	22	 

ii

 

	 	 	 	 	 
	2.4 Employment Rights
	 	 	22	 
	2.5 Service With Controlled Groups
	 	 	22	 
	2.6 Leased Employees
	 	 	22	 
	EMPLOYER CONTRIBUTIONS
	 	 	24	 
	3.1 Amount
	 	 	24	 
	3.2 Expenses And Fees
	 	 	24	 
	3.3 Responsibility For Contributions
	 	 	24	 
	3.4 Allocations Of Benefits
	 	 	24	 
	3.5 Return Of Contributions
	 	 	25	 
	EMPLOYEE CONTRIBUTIONS
	 	 	26	 
	4.1 Voluntary After-tax Contributions
	 	 	26	 
	4.2 Qualified Voluntary Contributions
	 	 	26	 
	4.3 Rollover Contribution
	 	 	26	 
	4.4 Transfer Contribution
	 	 	26	 
	4.5 Direct Rollover Of Benefits
	 	 	27	 
	4.6 Separate Accounts
	 	 	27	 
	4.7 Adjustments To Participant Accounts
	 	 	27	 
	4.8 Nonforfeitability
	 	 	27	 
	4.9 In-Service Withdrawals Of Employee Contributions
	 	 	28	 
	4.10 Withdrawal On Termination Of Employment
	 	 	28	 
	4.11 Withdrawal On Death
	 	 	28	 
	RETIREMENT BENEFITS
	 	 	29	 
	5.1 Normal Retirement Benefit
	 	 	29	 
	5.2 Adjusting Frozen Accrued Benefits
	 	 	29	 
	5.3 Late Retirement Benefit
	 	 	29	 
	5.4 Disability Retirement Benefit
	 	 	30	 
	5.5 Definite Benefit Requirements
	 	 	30	 
	5.6 Early Retirement Benefit
	 	 	31	 
	5.7 Cash-Out Of Accrued Benefits
	 	 	31	 
	5.8 Restrictions On Immediate Distributions
	 	 	31	 
	5.9 Normal Form Of Payment
	 	 	32	 
	5.10 Optional Forms Of Payment
	 	 	32	 
	5.11 Commencement Of Benefits
	 	 	33	 
	5.12 In-Service Withdrawals Of Employer Contributions
	 	 	33	 
	5.13 Claims Procedures
	 	 	33	 
	5.14 Suspension Of Benefits
	 	 	33	 
	5.15 Special Rules For Fully Insured Plans
	 	 	34	 
	DISTRIBUTION REQUIREMENTS
	 	 	36	 
	6.1 Joint And Survivor Annuity Requirements
	 	 	36	 
	6.2 Minimum Distribution Requirements
	 	 	36	 
	6.3 Limits On Distribution Periods
	 	 	36	 
	6.4 Required Beginning Date
	 	 	36	 
	6.5 Determination Of Amount To Be Distributed Each Year
	 	 	37	 
	6.6 Eligibility For Death Benefits
	 	 	39	 
	6.7 Death After Commencement Of Benefits
	 	 	39	 
	6.8 Death Prior To Commencement Of Benefits
	 	 	39	 
	6.9 Life Expectancy
	 	 	40	 
	6.10 Beneficiary Election Of Distribution Method
	 	 	40	 
	6.11 Payments To A Child Of The Participant
	 	 	40	 
	6.12 Deemed Distribution Starting Date
	 	 	40	 
	6.13 No Beneficiary
	 	 	40	 
	6.14 Transitional Rules
	 	 	40	 
	JOINT AND SURVIVOR ANNUITY REQUIREMENTS
	 	 	42	 
	7.1 Precedence Over Conflicting Provisions
	 	 	42	 
	7.2 Payment Of Qualified Joint And Survivor Annuity
	 	 	42	 

iii

 

	 	 	 	 	 
	7.3 Payment Of Qualified Pre-Retirement Survivor Annuity
	 	 	42	 
	7.4 Qualified Election
	 	 	42	 
	7.5 Notice Requirements For Qualified Joint And Survivor Annuity
	 	 	43	 
	7.6 Notice Requirements For Qualified Pre-Retirement Survivor Annuity
	 	 	44	 
	7.7 No Notices For Fully Subsidized Plans
	 	 	44	 
	7.8 Transitional Joint And Survivor Annuity Rules
	 	 	44	 
	7.9 Automatic Joint And Survivor Annuity And Early Survivor Annuity
	 	 	44	 
	7.10 Annuity Contracts
	 	 	45	 
	VESTING
	 	 	46	 
	8.1 Employer Paid Benefits
	 	 	46	 
	8.2 Computation Period
	 	 	46	 
	8.3 Requalification After A Break In Service
	 	 	46	 
	8.4 Calculating Vested Interest
	 	 	46	 
	8.5 Commencement Of Benefits
	 	 	46	 
	8.6 Forfeitures
	 	 	46	 
	8.7 Unclaimed Benefits
	 	 	46	 
	8.8 Amendment Of Vesting Schedule
	 	 	47	 
	8.9 Amendments Affecting Vested And/Or Accrued Benefits
	 	 	47	 
	8.10 Service With Controlled Groups
	 	 	48	 
	8.11 Compliance With Uniformed Service Employment And Reemployment Rights Act Of 1994
	 	 	48	 
	LIMITATIONS ON BENEFITS
	 	 	49	 
	9.1 Participation In This Plan
	 	 	49	 
	9.2 Participation In This Plan And Another Employer Plan
	 	 	49	 
	9.3 Limitations On Benefits
	 	 	50	 
	ADMINISTRATION
	 	 	51	 
	10.1 Plan Administrator
	 	 	51	 
	10.2 Persons Serving As Plan Administrator
	 	 	52	 
	10.3 Action By Employer
	 	 	52	 
	10.4 Responsibilities Of The Parties
	 	 	52	 
	10.5 Allocation Of Investment Responsibility
	 	 	52	 
	10.6 Appointment Of Investment Manager
	 	 	52	 
	10.7 Participant Loans
	 	 	53	 
	10.8 Insurance Policies
	 	 	54	 
	10.9 Determination Of Qualified Domestic Relations Order (QDRO Or Order)
	 	 	55	 
	10.10 Receipt And Release For Payments
	 	 	56	 
	10.11 Resignation And Removal
	 	 	56	 
	10.12 Claims And Claims Review Procedure
	 	 	56	 
	10.13 Bonding
	 	 	57	 
	TRUST PROVISIONS
	 	 	58	 
	11.1 Establishment Of The Trust
	 	 	58	 
	11.2 Control Of Plan Assets
	 	 	58	 
	11.3 Discretionary Trustee
	 	 	58	 
	11.4 Nondiscretionary Trustee
	 	 	59	 
	11.5 Provisions Relating To Individual Trustees
	 	 	59	 
	11.6 Investment Instructions
	 	 	59	 
	11.7 Fiduciary Standards
	 	 	59	 
	11.8 Powers Of The Trustee
	 	 	60	 
	11.9 Appointment Of Additional Trustee And Allocation Of Responsibilities
	 	 	62	 
	11.10 Compensation, Administrative Fees And Expenses
	 	 	62	 
	11.11 Records
	 	 	63	 
	11.12 Limitation On Liability And Indemnification
	 	 	63	 
	11.13 Custodian
	 	 	64	 
	11.14 Investment Alternatives Of The Custodian
	 	 	66	 
	11.15 Prohibited Transactions
	 	 	66	 
	11.16 Exclusive Benefit Rules
	 	 	66	 

iv

 

	 	 	 	 	 
	11.17 Assignment And Alienation Of Benefits
	 	 	66	 
	11.18 Liquidation Of Assets
	 	 	67	 
	11.19 Resignation And Removal
	 	 	67	 
	TOP-HEAVY PROVISIONS
	 	 	68	 
	12.1 Applicability Of Rules
	 	 	68	 
	12.2 Minimum Benefit
	 	 	68	 
	12.3 Minimum Vesting
	 	 	69	 
	12.4 Limitations On Benefits
	 	 	69	 
	12.5 Benefit Reduction Resulting From Aggregation
	 	 	69	 
	AMENDMENT AND TERMINATION
	 	 	72	 
	13.1 Amendment By Sponsor
	 	 	72	 
	13.2 Amendment By Employer
	 	 	72	 
	13.3 Protected Benefits
	 	 	72	 
	13.4 Plan Termination
	 	 	72	 
	13.5 Allocation Of Assets Upon Termination
	 	 	72	 
	13.6 Early Termination Provisions
	 	 	73	 
	13.7 Early Termination Restrictions
	 	 	74	 
	13.8 Qualification Of Employer’s Plan
	 	 	75	 
	13.9 Mergers And Consolidations
	 	 	76	 
	13.10 Resignation And Removal
	 	 	76	 
	13.11 Qualification Of Prototype
	 	 	76	 
	GOVERNING LAW
	 	 	77	 
	14.1 Governing Law
	 	 	77	 
	14.2 State Community Property Laws
	 	 	77	 
	MINIMUM DISTRIBUTION REQUIREMENTS MODEL AMENDMENT
	 	 	6	 
	ARTICLE XV
	 	 	6	 
	15.1 Effective Date
	 	 	6	 
	15.2 Coordination With Minimum Distribution Requirements Previously In Effect
	 	 	6	 
	15.3 Precedence
	 	 	6	 
	15.4 Requirements Of Treasury Regulations Incorporated
	 	 	6	 
	15.5 TEFRA Section 242(b)(2) Elections
	 	 	6	 
	15.6 Required Beginning Date
	 	 	6	 
	15.7 Death Of Participant Before Distributions Begin
	 	 	6	 
	15.8 Forms Of Distributions
	 	 	7	 
	15.9 Amount of Required Minimum Distribution For Each Distribution Calendar Year
	 	 	7	 
	15.10 Lifetime Required Minimum Distributions Continue Through Year Of Participant’s Death
	 	 	7	 
	15.11 Death On Or After Distributions Begin
	 	 	8	 
	15.12 Death Before Date Distributions Begin
	 	 	8	 
	15.13 Designated Beneficiary
	 	 	8	 
	15.14 Distribution Calendar Year
	 	 	8	 
	15.15 Life Expectancy
	 	 	9	 
	15.16 Participant’s Vested Accrued Benefit
	 	 	9	 
	15.17 Required Beginning Date
	 	 	9	 
	Retroactive annuity starting date MODEL AMENDMENT
	 	 	10	 

v

 

PROTOTYPE DEFINED BENEFIT PENSION PLAN AND TRUST

Sponsored By

SBERA

The Sponsor hereby establishes the following Prototype Retirement Plan and Trust for use by those
of its customers who qualify and wish to adopt a qualified retirement program. Any Plan and Trust
established hereunder shall be administered for the exclusive benefit of Participants and their
beneficiaries under the following terms and conditions:

ARTICLE I

DEFINITIONS

1.1 Accrued Benefit

The Basic Normal Retirement Benefit computed in accordance with the Plan’s benefit formula
projected to a Participant’s Normal Retirement Age based on the Participant’s Average Annual
Compensation as defined in paragraph 1.11, in effect at the date of determination and determined
under one of the methods specified below:

	 	(a)	 	Under the fractional method of calculating Accrued Benefit, the Normal
Retirement Benefit at the Participant’s Normal Retirement Age is multiplied by a
fraction, as specified in the Adoption Agreement, the numerator of which is either the
actual number of Years of Service the Participant has completed with the Employer or
the actual number of Years of Participation in the Plan, and the denominator of which
is the number of Years of Service or Participation the Participant would have
accumulated with the Employer as of such Participant’s Normal Retirement Age, or the
current year, if later. If so selected, “Years and Months” will be substituted for
“Years” in the preceding sentence. However, if this Plan has had a fresh-start and
after the latest Fresh-Start Date the fresh-start rule used under the Plan is the
formula with wear-away, the amount in the preceding sentence will not be less than the
Participant’s Frozen Accrued Benefit. If this Plan has had a fresh-start and after the
latest Fresh-Start Date the fresh-start rule used under the Plan is the formula with
wear-away or extended wear-away, in determining the Participant’s Accrued Benefit with
respect to Years of Participation or Service after the latest Fresh-Start Date under
the formula without wear-away, the numerator of the fraction will be limited to the
Participant’s Years of Participation or Service after the latest Fresh-Start Date.

	 	(1)	 	If the Employer’s Plan is a Standardized Unit Benefit Plan, a
Participant’s Accrued Benefit at any time equals the product of the Normal
Retirement Benefit multiplied by a fraction, the numerator of which is the
number of Years of Participation at such time, and the denominator of which is
the number of Years of Participation the Participant would have at Normal
Retirement Age, or the current year if later.
	 
	 	(2)	 	If the Employer’s Plan is a Standardized Flat Benefit Plan, a
Participant’s Accrued Benefit at any time equals the product of the Normal
Retirement Benefit multiplied by a fraction, the numerator of which is the
number of Years of Participation at such time, and the denominator of which is
the number of Years of Participation the Participant would have at Normal
Retirement Age, or twenty-five (25) years if greater.

	 	(b)	 	Alternately, each Participant may accrue a
benefit based on a fixed percentage of
Compensation or stated dollar amount per Year
of Participation or per Year of Service. When
determining the Accrued Benefit under this
method, the Basic Normal Retirement Benefit is
the total benefit accrued at the Participant’s
Normal Retirement Date. If the Participant
separates from Service prior to his or her
Normal Retirement Date, the Accrued Benefit is
equal to the Normal Retirement Benefit as of
the date of separation of Service. If the
accrual is based on a percentage of
Compensation for each Year of Participation, a

- 1 -

 

	 	 	 	Participant should not
accrue benefits in any year which exceed
133-1/3% of the annual rate at which the
Participant could accrue benefits for any prior
Plan Year.

	 	(c)	 	Under the “three percent (3%) method”, a Participant’s Accrued Benefit at any
time shall equal three percent (3%) of the Normal Retirement Benefit, multiplied by the
number of Years of Participation including years after Normal Retirement Age (not in
excess of 33-1/3). Under this method, the Normal Retirement Benefit is the benefit to
which the Participant would be entitled if he or she commenced participation at the
earliest possible entry age under the Plan and served continuously until the earlier of
age sixty-five (65) or the Plan’s Normal Retirement Age. Compensation is based on the
same number of years as specified in the definition of Average Annual Compensation in
the Adoption Agreement.

The accrual computation period for purposes of computing a Participant’s Accrued Benefit at any
time shall be the Plan Year. Regardless of the method used, a Participant’s Accrued Benefit in a
given year shall never be less than his or her Accrued Benefit as of the end of the prior Plan
Year.

For Plan Years beginning before Code Section 411 is applicable hereto, the Participant’s Accrued
Benefit shall be the greater of that provided by the Plan, or one-half of the benefit that would
have accrued had the above provisions been in effect. In the event the Accrued Benefit as of the
effective date of Code Section 411 is less than that provided above, such difference shall be
accrued in accordance with this paragraph.

1.2 Actuarial Equivalent (Equivalence)

A benefit having the same Present Value on the date payment commences as another stated benefit.
For purposes of establishing Actuarial Equivalence, Present Value shall be determined by
discounting all future payments for interest and mortality on the basis specified in Section III of
the Adoption Agreement.

1.3 Adoption Agreement

The document attached hereto by which an Employer elects to establish a qualified retirement plan
and trust under the terms of this Prototype Plan and Trust.

1.4 Anniversary Date

The first day or last day of the Plan Year or other day selected by the Employer pursuant to the
Plan’s administrative procedures.

1.5 Annual Additions

The sum of the following amounts credited to a Participant’s account for the Limitation Year:

	 	(a)	 	Employer contributions,
	 
	 	(b)	 	Employee contributions (under Article IV),
	 
	 	(c)	 	forfeitures,
	 
	 	(d)	 	amounts allocated after March 31, 1984 to an individual medical account, as
defined in Code Section 415(l)(2), which is part of a pension or annuity plan
maintained by the Employer (these amounts are treated as Annual Additions to a Defined
Contribution Plan though they arise under a Defined Benefit Plan),
	 
	 	(e)	 	amounts derived from contributions paid or accrued after 1985, in taxable years
ending after 1985, which are either attributable to post-retirement medical benefits,
allocated to the separate account of a Key Employee, as defined in Code Section
419A(d)(3), or under a Welfare Benefit Fund maintained by the Employer are also treated
as Annual Additions to a Defined Contribution Plan. (For purposes of this paragraph,
an Employee is a Key Employee if he or she meets the requirements of paragraph 1.50 at
any time during the Plan Year or preceding Plan Year.) Welfare Benefit Fund is defined
at paragraph 1.104; and
	 
	 	(f)	 	allocations under a Simplified Employee Pension Plan.

- 2 -

 

1.6 Annual Benefit

A retirement benefit under the Plan which is payable annually in the form of a Straight Life
Annuity. Except as provided below, a benefit payable in a form other than a Straight Life Annuity
must be adjusted to an Actuarially Equivalent Straight Life Annuity before applying the limitations
of this Article. For Limitation Years beginning before January 1, 1995, such Actuarially Equivalent
Straight Life Annuity is equal to the greater of the annuity benefit computed using the interest
rate specified in Section III the Adoption Agreement or five percent (5%). For Limitation Years
beginning after December 31, 1994, the Actuarially Equivalent Straight Life Annuity is equal to the
greater of the annuity benefit computed using the interest rate and mortality table (or other
tabular factor) specified in the Adoption Agreement and the annuity benefit computed using a five
percent (5%) interest rate assumption and the applicable mortality table specified in the Adoption
Agreement. In determining the Actuarially Equivalent Straight Life Annuity for a benefit form
other than a nondecreasing annuity payable for a period of not less than the life of the
Participant (or, in the case of a Qualified Pre-Retirement Survivor Annuity, the life of the
surviving Spouse), or decreases during the life of the Participant merely because of the death of
the survivor annuitant (but only if the reduction is not below fifty percent (50%) of the Annual
Benefit payable before the death of the survivor annuitant), or the cessation or reduction of
Social Security supplements of qualified disability payments [as defined in Code Section
401(a)(11)], “the applicable interest rate”, as defined in Section III of the Adoption Agreement,
will be substituted for “a five percent (5%) interest rate assumption” in the preceding sentence.
The Annual Benefit does not include any benefits attributable to Employee contributions or Rollover
Contributions, or the assets transferred from a qualified plan that was not maintained by the
Employer. No actuarial adjustment to the benefit is required for:

	 	(a)	 	the value of a Qualified Joint and Survivor Annuity,
	 
	 	(b)	 	the value of benefits that are not directly related to retirement benefits
(such as the qualified disability benefit, pre-retirement death benefits, and
post-retirement medical benefits), and
	 
	 	(c)	 	the value of post-retirement cost-of-living increases made in accordance with
Code Section 415(d) and Federal Income Tax Regulations Section 1.415-3(c)(2)(iii).

1.7 Annuity Starting Date

Used in conjunction with the Qualified Joint and Survivor Annuity requirements, it is the first day
of the first period for which a benefit amount is paid as an annuity or in any other form. The
Annuity Starting Date for disability benefits shall be the date such benefits commence if the
disability benefit is not an auxiliary benefit. An auxiliary benefit is a disability benefit that
does not reduce the benefit payable at Normal Retirement Age. If benefit payments in any form are
suspended pursuant to paragraph 5.14 of the Plan for an Employee who continues in Service without a
separation and who does not receive a benefit payment, the recommencement of benefit payments shall
be treated as a new Annuity Starting Date.

1.8 Applicable Interest Rate

The rate of interest on thirty (30) year Treasury Securities as specified for the Lookback Month
for the Stability Period specified in the Adoption Agreement.

1.9 Applicable Life Expectancy

The life expectancy (or joint and last survivor expectancy) calculated using the attained age of
the Participant (or Designated Beneficiary) as of the Participant’s (or Designated Beneficiary’s)
birthday in the Applicable Calendar Year reduced by one for each calendar year which has elapsed
since the date life expectancy was first calculated. If life expectancy is being recalculated, the
Applicable Life Expectancy shall be the life expectancy as so recalculated. The life expectancy of
a non-Spouse beneficiary may not be recalculated.

1.10 Applicable Mortality Table

The table set forth in Revenue Ruling 95-6, 1995-1 C. B., or such successor table as determined by
the Secretary of the Treasury or his or her designee.

1.11 Average Annual Compensation

A Participant’s annual Compensation averaged over the highest three (3) consecutive Plan Years or
calendar years or such other period specified in Section III of the Adoption Agreement. For a
Participant with less than three (3) Years of Service, Average Annual Compensation means the
average of his or her total period of Service measured by the Plan Year or calendar year as elected
in Section III of the Adoption Agreement. In Adoption Agreements not incorporating permitted
disparity, the years may be nonconsecutive. In the event that a Participant is employed for less
than the Plan’s full accounting period, and has not been credited with the number of years in the
averaging period, annual Compensation shall be the annual equivalent of his or her remuneration for
such period, if the Participant qualifies for a

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Year of Service or Participation. For Participants with more Service than specified in the
averaging period, the average will be based on the selection in Section III of the Adoption
Agreement.

1.12 Basic Normal Retirement Benefit

A monthly pension beginning on the first day of the month following a Participant’s Normal
Retirement Date, or actual retirement date if the Participant works past Normal Retirement and does
not commence payment, and ending on the first day of the month in which death occurs.

1.13 Break In Service

A twelve (12) consecutive month period during which an Employee fails to complete more than 500
Hours of Service, if the Hours of Service method is used to determine a Year of Service or a period
of severance of at least twelve (12) consecutive months if the Elapsed Time Method is being used to
determine a Year of Service.

1.14 Code

The Internal Revenue Code of 1986 including any amendments thereto. Reference to any section or
subsection of the Code, includes reference to any comparable or succeeding provisions of any
legislation which amends, supplements or replaces such section or subsection, and also includes
reference to any Regulation issued pursuant to or with respect to such section or subsection.

1.15 Compensation

The Employer may select one of the following three safe-harbor definitions of Compensation in the
Adoption Agreement. An Employer who adopts a standardized plan, a plan that uses permitted
disparity, or a plan that must provide a top-heavy minimum benefit must use one of the three
safe-harbor definitions of Compensation. In a Nonstandardized Adoption Agreement, the Employer may
modify the definition of Compensation, provided that such definition, as modified, satisfies the
provisions of Code Sections 414(s) and 401(a)(4). Compensation will also include Compensation from
the Employer paid by another individual or entity under the provisions of Code Sections 3121 and
3306. Unless otherwise specified in the Adoption Agreement, Compensation shall only include
amounts earned while a Participant if Plan Year is chosen as the determination period.

	 	(a)	 	Code Section 3401(a) Wages. Compensation is defined as wages within the
meaning of Code Section 3401(a) for the purposes of Federal income tax withholding at
the source but determined without regard to any rules that limit the remuneration
included in wages based on the nature or location of the employment or the services
performed [such as the exception for agricultural labor in Code Section 3401(a)(2)].
	 
	 	(b)	 	Code Sections 6041, 6051 and 6052 Reportable Wages Compensation is defined as
information required to be reported under Code Sections 6041, 6051 and 6052 of the
Internal Revenue Code (wages, tips and other compensation as reported on Form W-2).
Compensation includes wages at (a) above and all other payments of Compensation to an
Employee by the Employer (in the course of the Employer’s trade or business) for which
the Employer is required to furnish the Employee a written statement under Code
Sections 6041(d), 6051(a)(3) and 6052. Compensation must be determined without regard
to any rules that limit the remuneration included in wages based on the nature or
location of the employment or the services performed [such as the exception for
agricultural labor in Code Section 3401(a)(2)].
	 
	 	(c)	 	Code Section 415 Compensation. Compensation is defined as Code Section 415
Compensation which is: a Participant’s Earned Income, wages, salaries, and fees for
professional services and other amounts received (without regard to whether or not an
amount is paid in cash) for personal services actually rendered in the course of
employment with the Employer maintaining the Plan to the extent that the amounts are
includible in gross income [including, but not limited to, commissions paid salesmen,
Compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses, fringe benefits and reimbursements or other expense
allowances under a nonaccountable plan as described in Regulations Section 1.62-2(c)].
For Limitation Years beginning after December 31, 1997, for purposes of applying the
definition of this paragraph and the limitations of Article IX, Compensation paid or
made available during such Limitation Years shall include any elective deferral [as
defined in Code Section 402(g)(3)], and any amount which is contributed or deferred by
the Employer at the election of the Employee and which is not includible in gross
income of the Employee by reason of Code Sections 125, 132(f) 402(e)(3), 402(h)(1) or
403(b). Compensation excludes the following:

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	 	(1)	 	for Limitation Years beginning before January 1, 1998, Employer
contributions, made under the terms of a salary deferral agreement between an
Employee and the Employer, to a plan of deferred compensation which are not
includible in the Employee’s gross income for the taxable year in which
contributed. Such contributions shall include any amount deferred under Code
Section 125 in connection with a cafeteria plan, Code Section 402(e)(3) in
connection with a cash or deferred plan, Code Section 402(h)(1)(B) in connection
with a Simplified Employee Pension Plan, Code Section 457 Plan and Code Section
403(b) in connection with a tax-sheltered annuity plan;
	 
	 	(2)	 	distributions received from a plan of deferred compensation;
	 
	 	(3)	 	amounts realized from the exercise of a non-qualified stock
option, or when restricted stock (or property) held by the Employee either
becomes freely transferable or is no longer subject to a substantial risk of
forfeiture;
	 
	 	(4)	 	amounts realized from the sale, exchange or other disposition of
stock acquired under a qualified stock option; and
	 
	 	(5)	 	other amounts which received special tax benefits, or
contributions made by the Employer (whether or not under a salary reduction
agreement) towards the purchase of an annuity contract described in Code Section
403(b) (whether or not the contributions are actually excludible from the gross
income of the Employee).

Unless otherwise specified by the Employer in the Adoption Agreement, Compensation shall be
determined as provided in Code Section 3401(a), i.e. paragraph (a) above.

Exclusions From Compensation A Participant’s Compensation shall be determined in accordance with
paragraph (a), (b) or (c) above and shall not exclude any item of income unless provided in the
basic definition or elected by the Employer in the Adoption Agreement. When applicable to a
Self-Employed Individual, Compensation shall mean Earned Income.

Annual Additions And Top-Heavy Rules For purposes of applying the limitations of Article IX and
top-heavy minimums, the definition of Compensation shall be Code Section 415 Compensation described
in paragraph 1.15(c). For Plan Years beginning before January 1, 1998, Compensation excludes
amounts deferred under a plan of deferred compensation as described at paragraph 1.15(c)(1). For
Plan Years beginning after December 31, 1997, Compensation includes amounts deferred under a plan
of deferred compensation as described at paragraph 1.15(c)(1). Also, for purposes of applying the
limitations of Article IX, Compensation for a Limitation Year is the Compensation actually paid or
made available during such Limitation Year. For Limitation Years beginning after December 31, 1997,
compensation paid or made available during such Limitation Year shall include any elective deferral
[as defined in Code Section 402(g)(3)], and any amount which is contributed or deferred by the
Employer at the election of the Employee and which is not includible in the gross income of the
Employee by reason of Code Sections 125, 457 or 132(f)(4).

Contributions Made Of Behalf Of Disabled Participants Notwithstanding the preceding paragraph,
Compensation for a Participant in a Defined Contribution Plan who is permanently and totally
disabled [as defined in Code Section 22(e)(3)] is the Compensation such Participant would have
received for the Limitation Year if the Participant had been paid at the rate of Compensation paid
immediately before becoming permanently and totally disabled. Effective for Plan Years beginning
after December 31, 1996, such imputed Compensation for the disabled Participant may be taken into
account only if the contributions made on behalf of such Participant are nonforfeitable when made.
Compensation will mean compensation as that term is defined in this paragraph of Basic Plan
Document #02.

Highly Compensated And Key Employees For purposes of paragraphs 1.47 and 1.50, Compensation shall
be Code Section 415 Compensation as described in paragraph 1.15(c). Such definition shall include
any amount deferred under Code Section 125 in connection with a cafeteria plan, Code Section 132(f)
in connection with qualified transportation fringe benefits, Code Section 402(e)(3) in connection
with a cash or deferred plan, Code Section 402(h)(1)(B) in connection with a Simplified Employee
Pension Plan (SIMPLE), Code Section 402(k) in connection with a Savings Incentive Match Plan for
Employees and Code Section 403(b) in connection with a tax-sheltered annuity plan.

Computation Period The Plan Year shall be the computation period for purposes of determining a
Participant’s Compensation, unless the Employer selects a different computation period in the
Adoption Agreement.

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Limitation On Compensation  The annual Compensation of each Participant which may be taken into
account for determining all benefits provided under the Plan (including benefits under Article XI)
for any year shall not exceed the limitation as imposed by Code Section 401(a)(17), as adjusted
under Code Section 401(a)(17)(B).

Short Plan Year If a Plan has a Plan Year that contains fewer than twelve (12) calendar months,
then the annual Compensation limit for that period is an amount equal to the limitation as imposed
by Code Section 401(a)(17) as adjusted for the calendar year in which the Compensation period
begins, multiplied by a fraction, the numerator of which is the number of full months in the short
Plan Year and the denominator of which is twelve (12).

USERRA For purposes of Employee and Employer make-up contributions or benefits, Compensation
during the period of military service shall be deemed to be the Compensation the Employee would
have received during such period if the Employee were not in qualified military service, based on
the rate of pay the Employee would have received from the Employer but for the absence due to
military leave. If the Compensation the Employee would have received during the leave is not
reasonably certain, Compensation will be equal to the Employee’s average Compensation from the
Employer during the twelve (12) month period immediately preceding the military leave or, if
shorter, the Employee’s actual period of employment with the Employer.

Prior Year(s) If Compensation for any prior Plan Year is taken into account in determining an
Employee’s contributions or benefits for the current year, the Compensation for such prior year is
subject to the applicable annual Compensation limit in effect for that prior year. For this
purpose, for years beginning before January 1, 1990, the applicable annual Compensation limit is
$200,000. For Plan Years beginning on or after January 1, 1994, the annual Compensation of each
Participant taken into account for determining all benefits provided under the Plan for any Plan
Year shall not exceed $150,000, as adjusted for increases in the cost-of-living in accordance with
Code Section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to
any determination period beginning in such calendar year.

1.16 Covered Compensation

The average (without indexing) of the Taxable Wage Bases in effect for each calendar year during
the thirty-five (35) year period ending with the last day of the calendar year in which the
Participant attains (or will attain) Social Security Retirement Age [as defined in Code Section
414(b)(8)]. No increase in Covered Compensation shall decrease a Participant’s Accrued Benefit
under the Plan. In determining a Participant’s Covered Compensation for a Plan Year, the Taxable
Wage Base for all calendar years beginning after the first day of the Plan Year is assumed to be
the same as the Taxable Wage Base in effect at the beginning of the Plan Year for which the
determination is being made. Covered Compensation for a Plan Year after the thirty-five (35) year
period is the Participant’s Covered Compensation for the Plan Year during which the Participant
attained Social Security Retirement Age. For a Plan Year before the thirty-five (35) year period,
Covered Compensation is the Taxable Wage Base in effect as of the beginning of the Plan Year. A
Participant’s Covered Compensation will be determined based on the year designated by the Employer
in the Adoption Agreement. For Plan Years beginning before 1989, Covered Compensation is as was
defined under the terms of the Plan as then in effect.

1.17 Custodian

The institution or institutions (who may be the Sponsor or an affiliate) and any successors or
assigns thereto, appointed by the Employer to hold the assets of the Trust as provided at paragraph
11.3 hereof.

1.18 Defined Benefit Plan

A Plan under which a Participant’s benefit is determined by a formula contained in the Plan under
which no individual accounts are maintained for Participants.

1.19 Defined Benefit Plan Dollar Limitation

The limit is $90,000, as adjusted. Effective on January 1, 1988, and each January thereafter, the
$90,000 limitation will be automatically adjusted by multiplying such limit by the cost of living
adjustment factor prescribed by the Secretary of the Treasury under Code Section 415(d) in such
manner as the Secretary shall prescribe. Effective for Plan Years beginning after December 31,
1994, such adjustments will be in multiples of $5,000. The new limitation will apply to Limitation
Years ending within the calendar year of the date of the adjustment.

1.20 Defined Benefit (Plan) Fraction

A fraction, the numerator of which is the sum of the Participant’s Projected Annual Benefits under
all the Defined Benefit Plans (whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125% of the dollar limitation determined for the Limitation
Year under Code Sections 415(b)(1)(A) and (d) or 140% of

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the Highest Average Compensation, including any adjustments under Code Section 415(b)(5), both in
accordance with the Maximum Permissible Amount.

Notwithstanding the above, if the Participant was a Participant as of the first day of the first
Limitation Year beginning after December 31, 1986, in one or more Defined Benefit Plans maintained
by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not
be less than 125% of the sum of the annual benefits under such plans which the Participant had
accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding
any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence
applies only if the Defined Benefit Plans individually and in the aggregate satisfied the
requirements of Section 415 for all Limitation Years beginning before January 1, 1987.

1.21 Defined Contribution Plan

A Plan under which individual accounts are maintained for each Participant to which all
contributions, forfeitures, investment income and gains or losses, and expenses are credited or
deducted. A Participant’s benefit under such Plan is based solely on the fair market value of his
or her account balance.

1.22 Defined Contribution (Plan) Fraction

A fraction, the numerator of which is the sum of the Annual Additions to the Participant’s account
under all the Defined Contribution Plans (whether or not terminated) maintained by the Employer for
the current and all prior Limitation Years [including the Annual Additions attributable to the
Participant’s Voluntary Contributions to all Defined Benefit Plans, whether or not terminated,
maintained by the Employer, and the Annual Additions attributable to all Welfare Benefit Funds, as
defined in paragraph 1.104, individual medical accounts and Simplified Employee Pension Plans
maintained by the Employer], and the denominator of which is the sum of the maximum aggregate
amounts for the current and all prior Limitation Years of Service with the Employer (regardless of
whether a Defined Contribution Plan was maintained by the Employer). The maximum aggregate amount
in the Limitation Year is the lesser of 125% of the dollar limitation determined under Code
Sections 415(b) and (d) in effect under Code Section 415(c)(1)(A) or thirty-five percent (35%) of
the Participant’s Compensation for such year.

Transitional Rule: If the Employee was a Participant as of the first day of the first Limitation
Year beginning after 1986, in one or more Defined Contribution Plans maintained by the Employer
which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if the sum
of this fraction and the Defined Benefit Fraction would otherwise exceed 1.0 under the terms of
this Plan. Under the adjustment, an amount equal to the product of (1) the excess of the sum of
the fractions over 1.0 times (2) the denominator of this fraction will be permanently subtracted
from the numerator of this fraction. The adjustment is calculated using the fractions as they
would be computed as of the end of the last Limitation Year beginning before 1987, and disregarding
any changes in the terms and conditions of the Plan made after May 5, 1986, but using the Code
Section 415 limitation applicable to the first Limitation Year beginning on or after January 1,
1987. The Annual Addition for any Limitation Year beginning before 1987, shall not be recomputed
to treat all Employee contributions as Annual Additions. Additionally, any adjustments which were
previously made to reflect prior law changes, such as the Tax Equity and Fiscal Responsibility Act
of 1982, shall continue to be incorporated in the fraction.

1.23 Designated Beneficiary

The individual who is designated as the beneficiary under the Plan in accordance with Code Section
401(a)(9) and the Regulations thereunder.

1.24 Direct Rollover

A payment by the Plan to the Eligible Retirement Plan specified by the Participant.

1.25 Disability

Unless the Employer has elected a different definition in the Adoption Agreement, an illness or
injury of a potentially permanent nature, expected to last for a continuous period of not less than
twelve (12) months, certified by a physician selected by or satisfactory to the Employer which
prevents the Employee from engaging in any occupation for wage or profit for which the Employee is
reasonably fitted by training, education or experience.

1.26 Distributee

A Distributee includes a Participant or former Participant. In addition, the Participant’s or
former Participant’s surviving Spouse and the Participant’s or former Participant’s Spouse or
former Spouse who is the alternate payee under a Qualified Domestic Relations Order, as defined at
Code Section 414(p), are Distributees with regard to the interest of the Spouse or former Spouse.

- 7 -

 

1.27 Distribution Calendar Year

A calendar year for which a minimum distribution is required.

1.28 Earliest Retirement Age

The earliest date under the Plan on which the Participant could elect to receive retirement
benefits.

1.29 Early Retirement Age

The age set by the Employer in the Adoption Agreement [but not less than fifty-five (55)], which is
the earliest age at which a Participant may retire and receive his or her benefits under the Plan.

1.30 Earned Income

Net earnings from self-employment in the trade or business with respect to which the Plan is
established, determined without regard to items not included in gross income and the deductions
allocable to such items, provided that personal services of the individual are a material
income-producing factor. Earned Income shall be reduced by contributions made by an Employer to a
qualified plan to the extent deductible under Code Section 404. For tax years beginning after
1989, net earnings shall be determined taking into account the deduction for one-half of
self-employment taxes allowed to the taxpayer under Code Section 164(f) to the extent deductible.

1.31 Effective Date

The date on which the Employer’s Plan or amendment to such Plan becomes effective. For amendments
reflecting statutory and regulatory changes contained in the Uruguay Round Agreements Act of the
General Agreement on Tariffs and Trade (“GATT”), the Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA) , the Small Business Job Protection Act of 1996 (SBJPA), the Taxpayer
Relief Act of 1997 (TRA’97), and the IRS Restructuring and Reform Act of 1998, the Effective Date
will be the earlier of the date upon which such amendment is first administratively applied or the
first day of the Plan Year following the date of adoption of such amendment.

1.32 Election Period

The period which begins on the first day of the Plan Year in which the Participant attains age
thirty-five (35) and ends on the date of the Participant’s death. If a Participant separates from
Service prior to the first day of the Plan Year in which age thirty-five (35) is attained, with
respect to benefits accrued prior to separation, the Election Period shall begin on the date of
separation.

1.33 Elapsed Time

A method of determining an Employee’s entitlement under the Plan with respect to eligibility to
participate, as well as vesting which is not based on the Employee’s completion of a specified
number of Hours of Service during a consecutive twelve (12) month period, but rather with reference
to the total period of time which elapses during which the Employee is employed by the Employer
maintaining the Plan.

1.34 Eligible Retirement Plan

An Eligible Retirement Plan is an individual retirement account (IRA) as described in Code Section
408(a), an individual retirement annuity (IRA) as described in Code Section 408(b), an annuity plan
as described in Code Section 403(a), or a qualified trust as described in Code Section 401(a),
which accepts Eligible Rollover Distributions. However in the case of an Eligible Rollover
Distribution to a surviving Spouse, an Eligible Retirement Plan is an individual retirement account
or individual retirement annuity.

1.35 Eligible Rollover Distribution

Any distribution of all or any portion of the balance to the credit of the Participant except that
an Eligible Rollover Distribution does not include:

	 	(a)	 	any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of
the Participant or the joint lives (or joint life expectancies) of the Participant and
the Participant’s Designated Beneficiary, or for a specified period of ten (10) years
or more;
	 
	 	(b)	 	any hardship withdrawals under Code Section 401(k)(2)(B)(i)(IV) received after
December 31, 1998,
	 
	 	(c)	 	any distribution to the extent such distribution is required under Code Section
401(a)(9); and
	 
	 	(d)	 	the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation with
respect to Employer securities).

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1.36 Employee

A person employed by the Employer (including Self-Employed Individuals and partners), all Employees
of a member of an affiliated service group [as defined in Code Section 414(m)], all Employees of a
controlled group of corporations [as defined in Code Section 414(b)], all Employees of any
incorporated or unincorporated trade or business which is under common control [as defined in Code
Section 414(c)], leased Employees [as defined in Code Section 414(n)], and any Employee required to
be aggregated by Code Section 414(o). All such Employees shall be treated as employed by a single
Employer.

Leased Employees shall not be Employees for purposes of participation in the Plan established under
a Nonstandardized Adoption Agreement, unless elected otherwise in the Adoption Agreement. Leased
Employees [as defined in Code Section 414(n)] shall be considered Employees in a Plan established
under a Standardized Adoption Agreement except as otherwise provided in this paragraph. The
exclusion is only available if Leased Employees do not constitute more than 20% of the recipient
Employer’s non-highly compensated work force, and the Employer complies with the requirements as
outlined in paragraph 2.6, and so elects in the Adoption Agreement

1.37 Employer

The Self-Employed Individual, partnership, corporation or other organization which adopts this Plan
including any firm who succeeds the Employer and adopts this Plan. For purposes of Article IX,
Limitations on Allocations, Employer shall mean the Employer that adopts this Plan, and all members
of a controlled group of corporations [as defined in Code Section 414(b) as modified by Section
415(h)], all commonly controlled trades or businesses [as defined in Section 414(c) as modified by
Section 415(h)] or affiliated service groups [as defined in Section 414(m)] of which the adopting
Employer is a part, and any other entity required to be aggregated with the Employer pursuant to
regulations under Code Section 414(o).

1.38 Entry Date

The date on which an Employee commences participation in the Plan as determined by the Employer in
the Adoption Agreement. Unless the Employer specifies otherwise in the Adoption Agreement, entry
into the Plan shall be on the first day of the Plan Year or the first day of the seventh month of
the Plan Year coinciding with or following the date on which an Employee meets the eligibility
requirements.

1.39 ERISA

The Employee Retirement Income Security Act of 1974, as amended and any successor statute.

1.40 First Distribution Calendar Year

For distributions beginning before the Participant’s death, the First Distribution Calendar Year is
the calendar year immediately preceding the calendar year which contains the Participant’s Required
Beginning Date. For distributions beginning after the Participant’s death, the First Distribution
Calendar Year is the calendar year in which distributions are required to begin pursuant to
paragraph 6.9.

1.41 Fresh-Start Date

The last day of the Plan Year preceding a Plan Year for which any amendment of the Plan that
directly or indirectly affects the amount of a Participant’s benefit determined under the current
formula (such as an amendment to the definition of Compensation used in the current benefit formula
or a change in the Normal Retirement Age of the Plan) is made effective. However, if under the
Adoption Agreement the Fresh-Start Group is limited to an acquired group of Employees, or a group
of Employees with a Frozen Accrued Benefit attributable to assets and liabilities transferred to
the Plan, the Fresh-Start Date will be the date designated in the Adoption Agreement. If this Plan
has had a Fresh-Start for all Participants, and in a subsequent Plan Year is aggregated for
purposes of Code Section 401(a)(4) with another plan that did not make the same Fresh-Start, this
Plan will have a Fresh-Start on the last day of the Plan Year preceding the Plan Year during which
the Plans are first aggregated.

1.42 Fresh-Start Group

The group which consists of all Participants who have Accrued Benefits as of the Fresh-Start Date
and have at least one Hour of Service with the Employer after that date. The Fresh-Start Group may
be limited to a specific group of Employees as provided in the Adoption Agreement.

1.43 Frozen Accrued Benefit

The amount of a Participant’s Accrued Benefit determined in accordance with the provisions of the
Plan applicable in the year containing the latest Fresh-Start Date, determined as if the
Participant terminated employment with the Employer as of the latest Fresh-Start Date (or the date
the Participant actually terminated employment with the

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Employer, if earlier), without regard to any amendment made to the Plan after that date other than
amendments recognized as effective as of or before the date under Code Section 401(b) or Treasury
Regulations Section 1.401(a)(4)-11(g). If the Participant has not had a Fresh-Start, the
Participant’s Frozen Accrued benefit shall be zero (0). If permitted in the Adoption Agreement,
the Employer shall index the Frozen Accrued Benefit for any Participant in direct relation to their
Compensation. Such adjustment shall be made pursuant to the requirements of Treasury Regulations
Section 1.401(a)(4)-13(d)(4) through (7).

1.44 Frozen Projected Benefit

The Participant’s Frozen Projected Benefit is equal to the Participant’s Frozen Accrued Benefit.
However, if as of the latest Fresh-Start Date the Participant’s Accrued Benefit is determined in
accordance with Code Section 411(b)(1)(F), the Participant’s Frozen Projected Benefit is the
greater of (a) and (b), where (a) is equal to the Participant’s Projected Annual Benefit under the
Plan on the latest Fresh-Start Date (or the date the Participant terminated Service, if earlier)
multiplied by a fraction, the numerator of which is the Participant’s years of credited Service,
and the denominator of which is the Participant’s years of credited Service projected through the
later of the Plan Year in which the Participant attains Normal Retirement Age and the current Plan
Year, and (b) is equal to the amount that would be payable to the Participant at Normal Retirement
Age (or current age, if later) under the insurance contracts assuming that the only premiums not
paid under the contract(s) are those that are due for Service after the latest Fresh-Start Date.

If as of the Participant’s latest Fresh-Start Date the amount of a Participant’s Frozen Projected
Benefit was limited by the application of Code Section 415, the Participant’s Frozen Projected
Benefit will be increased for years after the latest Fresh-Start Date to the extent permitted under
Code Section 415(d)(1). In addition, the Frozen Projected Benefit of a Participant whose Frozen
Projected Benefit includes the top-heavy minimum benefits provided in paragraph 12.2 of the Plan
will be increased to the extent necessary to comply with the average Compensation requirement of
Code Section 416(c)(1)(D)(i).

If the Plan’s normal form of benefit in effect on the Participant’s latest Fresh-Start Date is not
the same as the normal form under the Plan after such Fresh-Start Date and/or the Normal Retirement
Age for any Participant on that Date was greater than the Normal Retirement Age for that
Participant under the Plan after such Fresh-Start Date, the Frozen Projected Benefit will be
expressed as an actuarially equivalent benefit in the normal form under the Plan after the
Participant’s latest Fresh-Start Date, commencing at the Participant’s Normal Retirement Age under
the Plan in effect after such latest Fresh-Start Date.

If the Plan provides a new optional form of benefit with respect to a Participant’s Frozen
Projected Benefit, such new optional form of benefit will be provided with respect to each
Participant’s entire Projected Benefit, and the Participant’s Projected Benefit minus the
Participant’s Frozen Projected Benefit will be equal to at least .5% times the Participant’s Years
of Service after the Fresh-Start Date, up to and including the year the Participant attains Normal
Retirement Age (or current age, if later).

1.45 Fund

All contributions received by the Trustee under this Plan and Trust, investments thereof and
earnings and appreciation thereon.

1.46 Highest Average Compensation

Used for Top-Heavy test purposes (unless elected otherwise in the Adoption Agreement) and the
limitation provisions of Article IX, it is the average Compensation for the three (3) consecutive
Years of Service with the Employer that produces the highest average. A Year of Service with the
Employer is the twelve (12) consecutive month period defined in Section III of the Adoption
Agreement.

In the case of a Participant who has separated from service, the Participant’s Highest Average
Compensation will be automatically adjusted by multiplying such Compensation by the cost of living
adjustment factor prescribed by the Secretary of the Treasury under Code Section 415(d) in such
manner as the Secretary shall prescribe. The adjusted Compensation amount will apply to Limitation
Years ending within the calendar year of the date of the adjustment.

1.47 Highly Compensated Employee

Effective for years after December 31, 1996, the term Highly Compensated Employee means any
Employee who: (1) is a five percent (5%) owner at any time during the year or preceding year, or
(2) for the preceding year had Compensation from the Employer in excess of $80,000 and if the
Employer so elects in the Adoption Agreement, is in the Top-Paid Group for the preceding year. The
$80,000 amount is adjusted at the same time and in the same manner as under Code Section 415(d),
except that the base period is the calendar quarter ending September 30, 1996.

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For the determination of who is a Highly Compensated Employee, the applicable year of the Plan for
which a determination is being made is called a determination year and the preceding twelve (12)
month period is called a look-back year. Employees who do not meet the Highly Compensated Employee
definition are considered Non-Highly Compensated Employees.

A Highly Compensated former Employee is based on the rules applicable to determining Highly
Compensated Employee status in effect for that determination year, in accordance with Section
1.414(q)-1T, A-4 of the temporary Income Tax Regulations and Notice 97-45.

In determining whether an Employee is a Highly Compensated Employee for years beginning in 1997,
the amendments to Code Section 414(q) stated above are treated as having been in effect for years
beginning in 1996. In order to be effective, a Top-Paid Group election or calendar year data
election must apply consistently to all plans of the Employer that begin with or within the same
calendar year.

1.48 Hour Of Service

	 	(a)	 	Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for the Employer. These hours shall be credited to the Employee
for the computation period in which the duties are performed; and
	 
	 	(b)	 	Each hour for which an Employee is paid, or entitled to payment, by the
Employer 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), layoff, jury duty, military duty
or leave of absence. No more than 501 Hours of Service shall be credited under this
paragraph for any single continuous period (whether or not such period occurs in a
single computation period). Hours under this paragraph shall be calculated and
credited pursuant to Section 2530.200b-2 of the Department of Labor Regulations which
are incorporated herein by this reference; and
	 
	 	(c)	 	Each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Employer. The same Hours of Service shall not be credited
both under paragraph (a) or paragraph (b), as the case may be, and under this paragraph
(c). These hours shall be credited to the Employee for the computation period or
periods to which the award or agreement pertains rather than the computation period in
which the award, agreement or payment is made.
	 
	 	(d)	 	Hours of Service shall be credited for employment with the Employer and for
employment for any period of time with other members of an affiliated service group [as
defined in Code Section 414(m)], a controlled group of corporations [as defined in Code
Section 414(b)], or a group of trades or businesses under common control [as defined in
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). Hours of
Service shall also be credited for any individual considered an Employee for purposes
of this Plan under Code Section 414(n) or (o).
	 
	 	(e)	 	Solely for purposes of determining whether a Break in Service, as defined in
paragraph 1.13, for participation and vesting purposes has occurred in a computation
period, an individual who is absent from work for maternity or paternity reasons shall
receive credit for the Hours of Service which would otherwise have been credited to
such individual but for such absence, or in any case in which such hours cannot be
determined, eight (8) Hours of Service per day of such absence. For purposes of this
paragraph, an absence from work for maternity or paternity reasons means an absence by
reason of the pregnancy of the individual, by reason of a birth of a child of the
individual, by reason of the placement of a child with the individual in connection
with the adoption of such child by such individual, or for purposes of caring for such
child for a period beginning immediately following such birth or placement. The Hours
of Service credited under this paragraph shall be credited in the computation period in
which the absence begins if the crediting is necessary to prevent a Break in Service in
that period, or in all other cases, in the following computation period. No more than
501 hours will be credited under this paragraph.
	 
	 	(f)	 	Hours of Service shall be determined on the basis of either the hours counting
or the elapsed time method as selected by the Employer in Section III of the Adoption
Agreement. If no selection is made, actual Hours will be used.

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1.49 Joint And Survivor Annuity

An immediate annuity for the life of the Participant with a survivor annuity for the life of the
Participant’s Spouse which is not less than one-half nor greater than the amount of the annuity
payable during the joint lives of the Participant and the Participant’s Spouse. The Joint and
Survivor Annuity will be the Actuarial Equivalent of the Basic Normal Retirement Benefit. The
percentage of the survivor annuity under the Plan shall be fifty percent (50%) (unless a different
percentage is elected by the Employer in Section VII of the Adoption Agreement).

1.50 Key Employee

Any Employee or former Employee (and the beneficiaries of such Employee) who at any time during the
determination period was an officer of the Employer if such individual’s annual Compensation
exceeds fifty percent (50%) of the dollar limitation under Code Section 415(b)(1)(A) (the defined
benefit maximum annual benefit), an owner (or considered an owner under Code Section 318) of one of
the ten (10) largest interests in the Employer if such individual’s Compensation exceeds 100% of
the dollar limitation under Code Section 415(c)(1)(A), a five percent (5%) owner of the Employer,
or a one percent (1%) owner of the Employer who has an annual Compensation of more than $150,000.
For purposes of determining who is a Key Employee, annual Compensation is as defined in paragraph
1.15, but shall also shall include amounts deferred through a salary reduction agreement to a cash
or deferred plan under Code Section 401(k), a Simplified Employee Pension Plan under Code Section
402(h)(l)(B), a cafeteria plan under Code Section 125, a tax-deferred annuity under Code Section
403(b), or Code Section 132(f)(4). The determination period is the Plan Year containing the
Top-Heavy Determination Date and the four preceding Plan Years. Compensation for the purpose of
this definition means Compensation as defined at paragraph 1.15(c). The determination of who is a
Key Employee will be made in accordance with Code Section 416(i)(1) and the Regulations thereunder.

1.51 Leased Employee

Any person (other than an Employee of the recipient) who pursuant to an agreement between the
recipient and any other person (“leasing organization”) has performed services for the recipient
[or for the recipient and related persons determined in accordance with Code Section 414(n)(6)] on
a substantially full-time basis for a period of at least one (1) year, and such services are
performed under the primary direction or control of the recipient Employer. If a Leased Employee
is treated as an Employee by reason of this paragraph, his or her Compensation as defined in
paragraph 1.15 includes Compensation received from the leasing organization that is attributable to
services performed for the Employer.

1.52 Limitation Year

The calendar year or such other twelve (12) consecutive month period designated by the Employer in
Section III of the Adoption Agreement. All qualified plans maintained by the Employer must use the
same Limitation Year. If the Limitation Year is amended to a different twelve (12) consecutive
month period, the new Limitation Year must begin on a date within the Limitation Year in which the
amendment is made. If no designation is made on the Adoption Agreement, the Limitation Year shall
be the same as the Plan Year.

1.53 Lookback Month

The first, second, third, fourth, or fifth calendar month preceding the first day of the Stability
Period as specified in the Adoption Agreement.

1.54 Maximum Permissible Amount

	 	(a)	 	The lesser of the Defined Benefit Dollar Limitation or 100% of the
Participant’s Highest Average Compensation.
	 
	 	(b)	 	If the Participant has less than ten (10) years of participation in the Plan,
the Defined Benefit Dollar Limitation shall be reduced in the following manner. It
shall be multiplied by a fraction, the numerator of which is the number of years (or
part thereof) of participation in the Plan, and the denominator of which is ten (10).
In the case of a Participant who has less than ten (10) Years of Service with the
Employer, the Compensation limitation shall be multiplied by a fraction, the numerator
of which is the number of years (or part thereof) of Service with the Employer, and the
denominator of which is ten (10). The adjustments of this section (b) shall be applied
in the denominator of the Defined Benefit Fraction based upon Years of Service. For
purposes of computing the Defined Benefit Fraction only, Years of Service shall include
future Years of Service (or part thereof) commencing before the

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	 	 	 	Participant’s Normal Retirement Age. Such future Year of Service shall include the
year that contains the date the Participant reaches Normal Retirement Age, only if it
can be reasonably anticipated that the Participant will receive a Year of Service for
such year, or the year in which the Participant terminates employment, if earlier.
This paragraph does not apply for Limitation Years beginning on or after January 1,
2000.
	 
	 	(c)	 	If the Annual Benefit of the Participant commences before the Participant’s
Social Security Retirement Age but on or after age sixty-two (62), the Defined Benefit
Dollar Limitation, as reduced in (b) above if necessary, shall be determined as
follows:

	 	(1)	 	If a Participant’s Social Security Retirement Age is sixty-five
(65), the dollar limitation for benefits commencing on or after age sixty-two
(62) is determined by reducing the Defined Benefit Dollar Limitation by 5/9 of
one percent (1%) for each month by which benefits commence before the month in
which the Participant attains age sixty-five (65).
	 
	 	(2)	 	If a Participant’s Social Security Retirement Age is greater than
sixty-five (65), the dollar limitation for benefits commencing on or after age
sixty-two (62) is determined by reducing the Defined Benefit Dollar Limitation
by 5/9 of one percent (1%) for each of the first thirty-six (36) months and 5/12
of one percent (1%) for each of the additional months [up to twenty-four (24)
months] by which benefits commence before the month of the Participant’s Social
Security Retirement Age.

	 	(d)	 	If the Annual Benefit of a Participant commences prior to age sixty-two (62),
the Defined Benefit Dollar Limitation shall be the Actuarial Equivalent of an Annual
Benefit beginning at age sixty-two (62), as determined above, reduced for each month by
which benefits commence before the month in which the Participant attains age sixty-two
(62). The Annual Benefit beginning before age sixty-two (62) shall be determined as the
lesser of the equivalent Annual Benefit computed using the interest rate and mortality
table (or other tabular factor) equivalence for early retirement benefits, and the
equivalent Annual Benefit computed using a five percent (5%) interest rate and the
applicable mortality table as defined in the Adoption Agreement. Any decrease in the
adjusted Defined Benefit Dollar Limitation determined in accordance with this provision
(d) shall not reflect any mortality decrement to the extent that benefits will not be
forfeited upon the death of the Participant.
	 
	 	(e)	 	If the Annual Benefit of a Participant commences after the Participant’s Social
Security Retirement Age, the Defined Benefit Dollar Limitation as reduced in (b) above,
if necessary, shall be increased so that it is the Actuarial Equivalent of an Annual
Benefit of such dollar limitation beginning at the Participant’s Social Security
Retirement Age The equivalent Annual Benefit beginning after Social Security Retirement
Age shall be determined as the lesser of the equivalent Annual Benefit computed using
the interest rate and mortality table (or other tabular factor) specified in the Plan
for purposes of determining Actuarial Equivalence for delayed retirement benefits, and
the equivalent Annual Benefit computed using a five percent (5%) interest rate
assumption and the applicable mortality table as defined in the Adoption Agreement.
	 
	 	(f)	 	Notwithstanding anything else in this section to the contrary, the benefit
otherwise accrued or payable to a Participant under this Plan shall be deemed not to
exceed the Defined Benefit Dollar Limitation if:

	 	(1)	 	the retirement benefits payable for a Plan Year under any form of
benefit with respect to such Participant under this Plan and under all other
Defined Benefit Plans (regardless of whether terminated) ever maintained by the
Employer do not exceed $1,000 multiplied by the Participant’s number of Years of
Service or parts thereof [not to exceed ten (10)] with the Employer; and
	 
	 	(2)	 	the Employer has not at any time maintained a Defined
Contribution Plan, a Welfare Benefit Plan, or an individual medical account in
which the Participant participated.

1.55 Master Or Prototype Plan

A plan, the form of which is the subject of a favorable opinion letter from the Internal Revenue
Service.

1.56 Month Of Service

A calendar month during any part of which an Employee is employed or deemed employed.

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1.57 Normal Retirement Age

The age set by the Employer in Section 5 of the Adoption Agreement at which a Participant may
retire and receive his or her benefits under the Plan. For Plan Years beginning before January 1,
1988, if Normal Retirement Age was determined with reference to the anniversary of the
participation commencement date [more than five (5) but not to exceed ten (10) years], the
anniversary date for Participants who first commenced participation under the Plan before the first
Plan Year beginning on or after January 1, 1988 shall be the earlier of the tenth anniversary of
the date the Participant commenced participation in the Plan [or such anniversary as had been
elected by the Employer, if less than ten (10)] or the fifth anniversary of the first day of the
first Plan Year beginning on or after January 1, 1988. The participation commencement date is the
first day of the first Plan Year in which the Participant commenced participation in the Plan.

1.58 Normal Retirement Benefit

When determining the Accrued Benefit, the Normal Retirement Benefit is the Annual Benefit to which
the Participant would be entitled if he or she continued to earn annually until such Normal
Retirement Age the same rate of Compensation upon which his or her Normal Retirement Benefit would
be computed. This rate of Compensation is computed on the basis of Compensation taken into account
under the Plan.

1.59 Normal Retirement Date

The date on which retirement benefits will actually commence. Normal Retirement Date shall be as
specified in Section V of the Adoption Agreement.

1.60 Owner-Employee

A sole proprietor or partner owning more than ten percent (10%) of either the capital or profits
interest of the partnership.

1.61 Paired Plans

Two or more plans maintained by the Sponsor designed so that a single or any combination of plans
adopted by an Employer will meet the antidiscrimination rules, the contribution and benefit
limitations, and the Top-Heavy provisions of the Code.

1.62 Participant

Any Employee who has met the eligibility requirements and is participating in the Plan. Inactive
Participant’s do not accrue benefits under the Plan.

1.63 Period Of Severance

For Plans using Elapsed Time for purposes of crediting Service, a Break in Service shall mean a
Period of Severance of at least twelve (12) months. A Period of Severance is a continuous period of
time during which the Employer does not employ the Employee. Such period begins on the date the
Employee retires, quits or is discharged, or if earlier, the twelve (12) month anniversary of the
date on which the Employee was otherwise first absent from Service.

1.64 Permissive Aggregation Group

The Required Aggregation Group of plans plus any other plan or plans of the Employer which, when
considered as a group with the Required Aggregation Group, would continue to satisfy the
requirements of Code Sections 401(a)(4) and 410.

1.65 Plan

The Employer’s retirement plan as embodied herein and in the Adoption Agreement, as may be amended
from time to time.

1.66 Plan Administrator

For Employers who are members of the Savings Banks Employees Retirement Association (SBERA), Tom
Forese shall be the Plan Administrator. All other Employers shall select their own Plan
Administrator. If no Plan Administrator is selected, the Employer shall be the Plan Administrator.

1.67 Plan Year

For Employers who are members of the Savings Bank Employees Retirement Association (SBERA), the
twelve (12) consecutive month period beginning on January 1 of each year. For all other Employers,
the twelve (12) consecutive month period designated by the Employer in the Adoption Agreement.

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1.68 Present Value

The Actuarial Equivalent of the Normal Form of Benefit determined on the basis of the mortality
rates specified in Section III of the Adoption Agreement and either the interest rate(s) specified
in the Adoption Agreement or the Code Section 417 interest rate(s), whichever produces the greater
benefit. When determining the Present Value of Accrued Benefits for Top-Heavy purposes, only the
interest and mortality rates specified for that purpose in Section XII of the Adoption Agreement
will be used.

1.69 Projected Annual Benefit

For Limitation Years beginning before January 1, 2000, the Annual Benefit as defined in paragraph
1.6 to which the Participant would be entitled under the terms of the Plan assuming:

	 	(a)	 	the Participant will continue employment until Normal Retirement Age under the
Plan (or current age, if later), and
	 
	 	(b)	 	the Participant’s Compensation for the current Limitation Year and all other
relevant factors used to determine benefits under the Plan will remain constant for all
future Limitation Years.

1.70 Qualified Deferred Compensation Plan

Any pension, profit-sharing, stock bonus, or other plan which meets the requirements of Code
Section 401 and includes a trust exempt from tax under Code Section 501(a) or any annuity plan
described in Code Section 403(a).

1.71 Qualified Domestic Relations Order

A Qualified Domestic Relations Order (QDRO) is a signed domestic relations order issued by a state
court or agency which creates, recognizes or assigns to an alternate payee(s) the right to receive
all or part of a Participant’s benefit under the Plan and which meets the requirements of Code
Section 414(p). An alternate payee is a Spouse, former Spouse, child, or other dependent who is
treated as a beneficiary under the Plan as a result of the QDRO. Unless otherwise elected by the
Employer in the Adoption Agreement, the earliest date for payment of a QDRO to an alternative payee
is the date upon which the order is deemed qualified

1.72 Qualified Early Retirement Age

The latest of:

	 	(a)	 	the earliest date under the Plan on which a Participant may elect to receive
retirement benefits,
	 
	 	(b)	 	the first day of the 120th month beginning before a Participant reaches Normal
Retirement Age, or
	 
	 	(c)	 	the date on which a Participant begins participation.

1.73 Qualified Joint And Survivor Annuity

An immediate annuity for the life of the Participant with a survivor annuity for the life of the
Spouse which is not less than fifty percent (50%) and not more than 100% of the amount of the
annuity which is payable during the joint lives of the Participant and the Spouse and which is the
Actuarial Equivalent of the Basic Normal Retirement Benefit, or if greater, any optional form of
benefit. The exact amount of the survivor annuity will be specified by the Employer in Section VII
of the Adoption Agreement. The percentage of the survivor annuity under the Plan shall be fifty
percent (50%) (unless a different percentage is elected in the Adoption Agreement).

1.74 Qualified Voluntary Contribution

A tax-deductible voluntary Employee contribution which was permitted to be made for the 1982
through 1986 tax years. This type of contribution is no longer permitted to be made by a
Participant. This Plan shall accept such type of contribution if made to a prior Plan and will
establish an appropriate recordkeeping account on behalf of the Participant.

1.75 Required Aggregation Group

A Group of plans including:

	 	(a)	 	each qualified plan of the Employer in which at least one Key Employee
participates or participated at any time during the determination period (regardless of
whether the plan has terminated), and
	 
	 	(b)	 	any other qualified plan of the Employer which enables a plan described in (a)
to meet the requirements of Code Sections 401(a)(4) and 410.

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1.76 Required Beginning Date

The date on which a Participant is required to take his or her first minimum distribution under the
Plan, as selected by the Employer in the Adoption Agreement.

1.77 Retirement Protection Act Of 1999 (RPA ‘94) Old Law Benefit

The Participant’s Accrued Benefit under the terms of the Plan as of the Plan’s RPA ‘94 freeze date,
for the Annuity Starting Date and optional form and taking into account the limitations of Code
Section 415, as in effect on December 7, 1994, including the participation requirements under Code
Section 415(b)(5). In determining the amount of a Participant’s RPA ‘94 Old Law Benefit, the
following shall be disregarded:

	 	(a)	 	any Plan amendment increasing benefits adopted after the RPA ‘94 freeze date; and
	 
	 	(b)	 	any cost of living adjustments that become effective after such date.

The RPA ‘94 freeze date must be a date that is on or before the first day of the first Limitation
Year beginning after December 31, 1999, and must be the same date that the Code Section 417(e)(3)
changes are made effective for the Plan.

If the RPA ‘94 benefit was reduced during the period between the RPA ‘94 freeze date and the first
day of the first Limitation Year beginning on or after January 1, 2000 because of Annual Additions
credited to a Participant’s account in an existing Defined Contribution Plan, the RPA ‘94 Old Law
Benefit may increase to the RPA ‘94 freeze date level as of the first day of the first Limitation
Year beginning on or after January 1, 2000.

1.78 Rollover Contribution

A contribution made by a Participant of an amount distributed to such Participant from another
Qualified Deferred Compensation Plan in accordance with Code Section 402(c).

1.79 Self-Employed Individual

An individual who has Earned Income for the taxable year from the trade or business for which the
Plan is established including an individual who would have had Earned Income but for the fact that
the trade or business had no net profit for the taxable year.

1.80 Service

The period of current or prior employment with the Employer, including any imputed period of
employment which must be counted under USERRA. If the Employer maintains a plan of a predecessor
employer, service for such predecessor shall be treated as Service for the Employer. Service is
determined under an Hours Counting Method or under the Elapsed Time Method, as selected by the
Employer in the Adoption Agreement. For Plan Years after 1991, if this Plan initially or upon Plan
amendment credits or increases benefits for Service prior to the year in which the amendment is
made, the period for which such credit or increase is granted shall be limited to the five (5)
years preceding the year in which the amendment is made if the safe-harbor of Regulations Section
1.401(a)(4)-5 is to apply. Such credit or increase must be granted on a uniform basis to all
current Employees under the Plan.

1.81 Shareholder Employee

An Employee or officer who owns [or is considered as owning within the meaning of Code Section
318(a)(i)], on any day during the taxable year of an electing small business (Subchapter S)
corporation, more than five percent (5%) of such corporation’s outstanding stock.

1.82 Simplified Employee Pension Plan

An individual retirement account which meets the requirements of Code Section 408(k) and to which
the Employer makes contributions pursuant to a written formula. These plans are considered for
contribution limitation and Top-Heavy testing purposes.

1.83 Social Security Retirement Age

Age sixty-five (65) in the case of a Participant attaining age sixty-two (62) before January 1,
2000 (i.e., born before January 1, 1938), age sixty-six (66) for a Participant attaining age
sixty-two (62) after December 31, 1999, and before January 1, 2017 (i.e., born after
December 31, 1937, but before January 1, 1955), and age sixty-seven (67) for a Participant
attaining age sixty-two (62) after December 31, 2016 (i.e., born after December 31, 1954).

- 16 -

 

1.84 Sponsor

SBERA, or any successor(s) or assign(s).

1.85 Spouse

The individual to whom a Participant is married, or was married in the case of a deceased
Participant who was married at the time of his or her death. A former Spouse will be treated in the
same manner as a Spouse to the extent provided under a Qualified Domestic Relations Order as
prescribed in Code Section 414(p).

1.86 Stability Period

The successive period of one (1) calendar month, one (1) Plan quarter, one (1) calendar quarter,
one (1) Plan Year, or one (1) calendar year, as specified in the Adoption Agreement, that contains
the Annuity Starting Date for the distribution and for which the Applicable Interest Rate remains
constant.

1.87 Straight Life Annuity

A method of payment made in equal installments for the life of the Participant that terminates upon
the Participant’s death.

1.88 Super Top-Heavy Plan

A Plan described at paragraph 1.94 hereof under which the Top-Heavy Ratio (as defined at paragraph
1.95) exceeds 90%.

1.89 Tax Reform Act Of 1986 (TRA ’86) Accrued Benefit

A Participant’s Accrued Benefit under the Plan, determined as if the Participant had separated from
Service as of the close of the last Limitation Year beginning before 1987, when expressed as an
Annual Benefit within the meaning of Code Section 415(b)(2). In determining the amount of a
Participant’s TRA ’86 Accrued Benefit, the following shall be disregarded:

	 	(a)	 	any change in the terms and conditions of the Plan after May 5, 1986; and
	 
	 	(b)	 	any cost of living adjustments occurring after May 5, 1986.

1.90 Taxable Wage Base

For Plans which have an allocation formula which takes into account the Employer’s contribution
under the Federal Insurance Contributions Act (FICA), the contribution and benefits base in effect
under Section 230 of the Social Security Act at the beginning of the Plan Year.

1.91 Theoretical Contribution

Used with regard to the purchase of insurance, it is the contribution that would be made on behalf
of the Participant, using the individual level premium funding method from the age at which
participation commenced to Normal Retirement Age, to fund the Participant’s entire retirement
benefit without regard to pre-retirement ancillary benefits. The entire retirement benefit for
this purpose is based upon a single Straight Life Annuity and assumes continuation of current
salary (no salary scale) and the current Defined Benefit Fraction.

1.92 Theoretical ILP Reserve

Used with regard to the purchase of insurance, it is the reserve that would be available at the
time of death if for each year of Plan participation a contribution had been made on behalf of the
Participant in an amount equal to the Theoretical Contribution.

1.93 Top-Heavy Determination Date

For the first Plan Year, it is the last day of that year. For any Plan Year subsequent to the first
Plan Year, the last day of the preceding Plan Year.

1.94 Top-Heavy Plan

For any Plan Year beginning after 1983, the Employer’s Plan is Top-Heavy if any of the following
conditions exists:

	 	(a)	 	If the Top-Heavy Ratio for the Employer’s Plan exceeds sixty percent (60%) and
this Plan is not part of any Required Aggregation Group or Permissive Aggregation Group
of plans.

- 17 -

 

	 	(b)	 	If the Employer’s Plan is a part of a Required Aggregation Group of plans but
not part of a Permissive Aggregation Group and the Top-Heavy Ratio for the group of
plans exceeds sixty percent (60%).
	 
	 	(c)	 	If the Employer’s Plan is a part of a Required Aggregation Group and part of a
Permissive Aggregation Group of plans and the Top-Heavy Ratio for the Permissive
Aggregation Group exceeds sixty percent (60%).

1.95 Top-Heavy Ratio

	 	(a)	 	If the Employer maintains one or more Defined Benefit Plans and the Employer
has never maintained any Defined Contribution Plan (including any Simplified Employee
Pension Plan) which during the five (5) year period ending on the Top-Heavy
Determination Date(s) has or has had account balances, the Top-Heavy Ratio for this
Plan alone or for the Required or Permissive Aggregation Group, as appropriate, is a
fraction, the numerator of which is the sum of the Present Value of Accrued Benefits of
all Key Employees as of the Top-Heavy Determination Date(s) [including any part of any
Accrued Benefit distributed in the five (5) year period ending on the Top-Heavy
Determination Date(s)], and the denominator of which is the sum of the Present Value of
Accrued Benefits [including any part of any Accrued Benefit distributed in the five (5)
year period ending on the Top-Heavy Determination Date(s)] of all Participants
determined in accordance with Code Section 416 and the Regulations thereunder.
	 
	 	(b)	 	If the Employer maintains one or more Defined Benefit Plans and the Employer
maintains or has maintained one or more Defined Contribution Plans (including any
Simplified Employee Pension Plan) which during the five (5) year period ending on the
Determination Date(s) has or has had any account balances, the Top-Heavy Ratio for any
Required or Permissive Aggregation Group, as appropriate, is a fraction, the numerator
of which is the sum of account balances under the aggregated Defined Contribution Plans
for all Key Employees as of the Top-Heavy Determination Date(s) and the Present Value
of Accrued Benefits under the aggregated Defined Benefit Plans for all Key Employees,
determined in accordance with (a) above and the denominator of which is the sum of the
account balances under the aggregated Defined Contribution Plans for all Participants
as of the Top-Heavy Determination Date(s) and the Present Value of Accrued Benefits
under the aggregated Defined Benefit Plans determined in accordance with (a) above for
all Participants as of the Top-Heavy Determination Date(s), all determined in
accordance with Code Section 416 and the Regulations thereunder. The account balances
under a Defined Contribution Plan in both the numerator and denominator of the
Top-Heavy Ratio are increased for any distribution of an account balance made in the
five (5) year period ending on the Top-Heavy Determination Date.
	 
	 	(c)	 	For purposes of (a) and (b) above, the value of account balances and the
Present Value of Accrued Benefits will be determined as of the most recent Valuation
Date that falls within or ends with the twelve (12) month period ending on the
Top-Heavy Determination Date, except as provided in Code Section 416 and the
Regulations thereunder for the first and second Plan Years of a Defined Benefit Plan.
The account balances and Accrued Benefits of a Participant (1) who is not a Key
Employee but who was a Key Employee in a prior year or (2) who has not been credited
with at least one (1) Hour of Service with any Employer maintaining the Plan at any
time during the five (5) year period ending on the Top-Heavy Determination Date will be
disregarded. The calculation of the Top-Heavy Ratio, and the extent to which
distributions, rollovers, and transfers are taken into account will be made in
accordance with Code Section 416 and the Regulations thereunder. Qualified Voluntary
Employee Contributions will not be taken into account for purposes of computing the
Top-Heavy Ratio. When aggregating plans, the value of account balances and Accrued
Benefits will be calculated with reference to the Top-Heavy Determination Dates that
fall within the same calendar year.
	 
	 	(d)	 	The Accrued Benefit of a Participant other than a Key Employee shall be
determined under the method, if any, that uniformly applies for accrual purposes under
all Defined Benefit Plans maintained by the Employer, or if there is no such method, as
if such benefit accrued not more rapidly than the slowest accrual rate permitted under
the fractional rule of Code Section 411(b)(1)(C).

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1.96 Top-Paid Group

The group consisting of the top twenty percent (20%) of Employees when ranked on the basis of
Compensation paid during such year. For purposes of determining the number of Employees in the
group (but not who is in it), the following Employees shall be excluded:

	 	(a)	 	Employees who have not completed six (6) months of Service.
	 
	 	(b)	 	Employees who normally work less than 171/2 hours per week.
	 
	 	(c)	 	Employees who normally do not work more than six (6) months during any year.
	 
	 	(d)	 	Employees who have not attained age twenty-one (21).
	 
	 	(e)	 	Employees included in a collective bargaining unit, covered by an agreement
between Employee representatives and the Employer, where retirement benefits were the
subject of good faith bargaining and provided that ninety percent (90%) or more of the
Employer’s Employees are covered by the agreement.
	 
	 	(f)	 	Employees who are nonresident aliens and who receive no earned income which
constitutes income from sources within the United States.

Effective for Plan Years beginning after December 31, 1996, the application of the family
aggregation rules under Code Section 414(q)(6) will no longer apply.

1.97 Transfer Contribution

A non-taxable transfer of a Participant’s benefit directly from a Qualified Deferred Compensation
Plan to this Plan. This type of transfer does not constitute constructive receipt of plan assets.

1.98 Trust

The trust established in conjunction with the Plan, together with any and all amendments thereto
which holds assets of the Plan held by or in the name of the Trustee or Custodian.

1.99 Trustee

For Employers who are members of SBERA, the Trustee shall be the Trustees of the Savings Banks
Employees Retirement Association. For all other Employers, the Trustee shall be the individual,
individuals or institution appointed by the Employer to serve as Trustee of the Plan. In the event
the Employer does not name an individual, individuals or institution to serve as Trustee of the
Plan, the Employer will be deemed to be the Trustee.

1.100 USERRA

The Uniformed Services Employment and Reemployment Rights Act of 1994, as amended effective August
5, 1996. Notwithstanding any provision of the Plan to the contrary, contributions, benefits, Plan
loan repayment, suspensions and service credit with respect to qualified military service will be
provided in accordance with Code Section 414(u).

1.101 Valuation Date

The Anniversary Date or any other date during each Plan Year used for determining the fair market
value of assets and computing Plan funding. For Top-Heavy purposes, the date elected by the
Employer in the Adoption Agreement as of which account balances or Accrued Benefits are valued for
calculating the Top-Heavy Ratio.

1.102 Vested Accrued Benefit

Used to determine the applicability of the Qualified Joint and Survivor Annuity Rules, it is the
value of the Participant’s Vested Accrued Benefit derived from Employer and Employee contributions
(including Rollovers). The provisions of Article VII shall apply to a Participant who is vested in amounts attributable to
Employer contributions, Employee contributions (or both) at the time of death or distribution.

1.103 Voluntary After-tax Contribution

An Employee contribution which is not tax-deductible and which is not required as a condition for
participation in the Plan.

- 19 -

 

1.104 Welfare Benefit Fund

Any fund that is part of a plan of the Employer, or has the effect of a plan, through which the
Employer provides welfare benefits to Employees or their beneficiaries. For these purposes,
Welfare Benefits means any benefit other than those with respect to which Code Section 83(h)
(relating to transfers of property in connection with the performance of services), Code Section
404 (relating to deductions for contributions to an Employees’ trust or annuity and Compensation
under a deferred payment plan) and Code Section 404(a) (relating to certain foreign deferred
compensation plans). A “Fund” is any social club, voluntary employee benefit association,
supplemental unemployment benefit trust or qualified group legal service organization described in
Code Section 501(c)(7), (9), (17) or (20); any trust, corporation, or other organization not exempt
from income tax, or to the extent provided in Regulations, any account held for an Employer by any
person. The provisions of the Plan relating to Welfare Benefit Funds are applicable to tax years
beginning after 1985.

1.105 Year Of Participation

The Participant shall be credited with a Year of Participation (computed to fractional parts of a
year) for each accrual computation period for which the following conditions are met:

	 	(a)	 	the Participant is credited with at least the number of Hours of Service [or in
the event of a Plan using the Elapsed Time Method, one (1) year of employment] for
benefit accrual purposes, required under the terms of the Plan in order to accrue a
benefit for the accrual computation period, and
	 
	 	(b)	 	the Participant is included as a Participant under the eligibility provisions
of the Plan for at least one day of the accrual computation period.

If these two conditions are met, the portion of a Year of Participation credited to the Participant
shall equal the amount of benefit accrual service credited to the Participant for such accrual
computation period. If elected in the Adoption Agreement, a Participant who is permanently and
totally disabled within the meaning of Code Section 415(c)(3)(C)(i) for an accrual computation
period shall receive a Year of Participation with respect to that period. In addition, for a
Participant to receive a Year of Participation (or part thereof) for an accrual computation period,
the Plan must be established no later than the last day of such accrual computation period. In no
event will more than one (1) Year of Participation be credited for any twelve (12) month period.

Beginning with the 1990 Plan Year, unless specified otherwise in the Adoption Agreement, a Year of
Participation shall mean a Plan Year during which a Participant either completes more than 500
Hours of Service [or in the event of a Plan using the Elapsed Time Method, completed three (3)
consecutive months of employment] or is employed on the last day of the Plan Year.

1.106 Year Of Service

	 	(a)	 	Hours of Service Method - A twelve (12) consecutive month period during which
an Employee has not less than the number of Hours of Service specified in Section III
of the Adoption Agreement.
	 
	 	(b)	 	Elapsed Time Method - For purposes of determining either an Employee’s initial
or continued eligibility to participate in the Plan, or the nonforfeitable interest in
the Participant’s account balance derived from Employer contributions, an Employee will
receive credit for the aggregate of all time period(s) worked commencing with the
Employee’s first day of employment or reemployment and ending on the date a Break in
Service begins. The first day of employment or reemployment is the first day the
Employee performs an Hour of Service for the Employer. An Employee will also receive
credit for any Period of Severance of less than twelve (12) consecutive months.
Fractional periods of a year will be expressed in terms of days.
	 
	 	 	 	Each Employee will share in Employer contributions for the period beginning on the
date the Employee commences participation under the Plan and ending on the date on
which such Employee terminates employment with the Employer or is no longer a member
of an eligible class of Employees.
	 
	 	 	 	An Employer adopting the Elapsed Time Method is required to credit periods of Service
and, under the Service spanning rules, certain periods of severance of twelve (12)
months or less. Under the first Service spanning rule, if an Employee severs from
Service as a result of resignation, discharge or retirement and then returns to
Service within twelve (12) months, the Period of Severance is required to be taken
into account. A situation may arise in which an Employee is absent from Service for
any

- 20 -

 

	 	 	 	reason other than resignation, discharge, retirement and during the absence a
resignation, discharge or retirement occurs. The second Service spanning rule
provides that, under such circumstances, the Plan is required to take into account
the period of time between the severance from Service date (i.e., the date of
resignation, discharge or retirement) and the first anniversary of the date on which
the Employee was first absent, if the Employee returns to Service on or before such
first anniversary date.

- 21 -

 

ARTICLE II

ELIGIBILITY REQUIREMENTS

2.1 Participation

Current Employees who meet the eligibility requirements in the Adoption Agreement on the Effective
Date of the Plan shall become Participants as of the Effective Date of the Plan. If elected in the
Adoption Agreement, all Employees employed on the Effective Date of the Plan may participate, even
if they have not satisfied the Plan’s eligibility requirements. Employees hired after the Effective
Date of the Plan shall become Participants on the Entry Date coinciding with or immediately
following the date on which they meet the eligibility requirements. Depending on the Plan’s
eligibility requirements, the Entry Date may actually be earlier than the date on which the
Employee satisfies the eligibility requirements. The Employee must satisfy the eligibility
requirements specified in the Adoption Agreement to become a Participant in the Plan. An Employee
will begin to participate no later than the earlier of the first day of the Plan Year beginning
after the date on which the Employee has met the minimum age and Service requirements or six (6)
months after the date eligibility is met. In the event that an Employee has satisfied the
eligibility requirements, but is not employed on the Entry Date, such Eligible Employee will become
a Participant upon his or her rehire. If, however, an individual fails to satisfy the eligibility
requirements and incurs a Break in Service or Period of Severance before his or her rehire, such
individual will be treated as a new Employee and will have to requalify under the Plan’s
eligibility requirements. A former Participant shall again become a Participant immediately upon
returning to the employ of the Employer. Unless, specified otherwise in the Adoption Agreement,
benefits will begin to accrue as of the first day of the month following the return to employment.

2.2 Change In Classification Of Employment

In the event an Employee who is not a member of the eligible class of Employees becomes a member of
the eligible class, such Employee shall participate immediately if such Employee has satisfied the
minimum age and Service requirements and would have previously become a Participant had he or she
been in the eligible class. In the event a Participant becomes ineligible to participate because he
or she is no longer a member of an eligible class of Employees, such Employee shall participate
immediately upon his or her return to an eligible class of Employees. Notwithstanding any other
provision in this Plan, an Employee may not accrue a benefit under this Plan for the period during
which they are ineligible to participate.

2.3 Computation Period

For purposes of determining Years of Service and Breaks in Service for purposes of eligibility
under the Hours of Service Method, the twelve (12) consecutive month period shall commence on the
date on which an Employee first performs an Hour of Service for the Employer and each anniversary
thereof. If, however, the period so specified is one (1) year or less, the succeeding twelve (12)
consecutive month period shall commence on the first day of the Plan Year beginning prior to the
anniversary of the date the Employee first performed an Hour of Service regardless of whether the
Employee is entitled to be credited with 1,000 (or such lesser number as specified by the Employer
in the Adoption Agreement) Hours of Service during the Employee’s first employment year.

2.4 Employment Rights

Participation in the Plan shall not confer upon a Participant any employment rights, nor shall it
interfere with the Employer’s right to terminate the employment of any Employee at any time.

2.5 Service With Controlled Groups

All Years of Service with other members of a controlled group of corporations [as defined in Code
Section 414(b)], trades or businesses under common control [as defined in Code Section 414(c)],
members of an affiliated service group [as defined in Code Section 414(m)], or as required at Code
Section 414(o), shall be credited for purposes of determining an Employee’s eligibility to
participate.

2.6 Leased Employees

Any Leased Employee shall be treated as an Employee of the recipient Employer; however,
contributions or benefits provided by the leasing organization which are attributable to services
performed for the recipient Employer shall be treated as provided by the recipient Employer and
shall offset against any benefit accruing under this Plan.

A Leased Employee shall not be considered an Employee of the recipient if such Employee is covered
by a money purchase pension plan providing:

	 	(a)	 	a non-integrated Employer contribution rate of at least ten percent (10%) of
Compensation [as defined in Code Section 415(c)(3) but including amounts contributed by
the Employer pursuant to a salary reduction agreement which are excludable from the
Employee’s gross income under a cafeteria

- 22 -

 

	 	 	 	plan covered by Code Section 125, a cash or
deferred profit-sharing plan under Code Section 401(k), a Simplified Employee Pension
Plan under Code Section 402(h)(l)(B), and a tax-sheltered annuity under Code Section
403(b)];
	 
	 	(b)	 	immediate participation; and
	 
	 	(c)	 	full and immediate vesting.

The exclusion is only available if Leased Employees do not constitute more than twenty percent
(20%) of the recipient’s non-highly compensated work force. The Plan Administrator must apply this
paragraph 2.6 consistent with Code Sections 414(n) and 414(o) and the Regulations issued
thereunder.

- 23 -

 

ARTICLE III

EMPLOYER CONTRIBUTIONS

3.1 Amount

The Employer intends to make periodic contributions to the Plan in accordance with the minimum
funding standards established under the Code.

3.2 Expenses And Fees

The Employer may reimburse the Plan for all expenses and fees incurred in the administration of the
Plan or Trust and paid from the assets of the Plan. Such expenses shall include, but shall not be
limited to, fees for professional services, recordkeeping services, printing and postage.
Brokerage commissions may not be reimbursed. If such expenses and fees are not paid from the Plan,
the Employer may pay such expenses and fees directly. Reimbursement of any Plan fees will be
considered Employer contributions subject to Code Sections 404 and 415.

3.3 Responsibility For Contributions

Neither the Trustee nor the Sponsor nor the Custodian shall be required to determine if the
Employer has made a contribution or if the amount contributed is in accordance with the Adoption
Agreement or the Code. The Employer shall have sole responsibility in this regard. The Trustee
shall be accountable solely for contributions received by it within the limits of Article IX.

3.4 Allocations Of Benefits

The Employer’s contribution shall be determined in accordance with the benefit formula selected by
the Employer in the Adoption Agreement, and the minimum accrual requirements for Top-Heavy Plans.
Beginning with the 1990 Plan Year and thereafter, for plans on Standardized Adoption Agreements
001, 002, and 005, Participants who are either credited with more than 500 Hours of Service or who
are employed on the last day of the Plan Year must receive a full benefit accrual. In
Nonstandardized Adoption Agreements 003, 004, and 006, benefits shall accrue to Participants who
have completed a Year of Service, as specified in the Adoption Agreement. For Nonstandardized
Adoption Agreements 003, 004, and 006, the Employer may only apply the Year of Service requirements
specified in the Adoption Agreement for benefit accrual purposes, if the Plan satisfies coverage
and minimum participation testing as set forth in Code Sections 401(a)(26) and 410(b) and the
Regulations thereunder. If when applying the Year of Service requirements the Plan fails to
satisfy the aforementioned requirements, additional Participants will be eligible to receive an
accrual of benefits until the requirements are satisfied. If this section is applicable, then,
notwithstanding any other provision of the Plan, a Participant shall have no right to any accrual
under this Plan until this section, including the coverage and participation tests defined below,
have been applied. For a Plan Year, this section must be applied before any Employer contributions
can be made to this Plan. A Plan satisfies the coverage test if, on the last day of the Plan Year
(taking into account all Employees or former Employees on any day during the Plan Year), the number
of Non-Highly Compensated Employees who benefit under the Plan is at least equal to seventy percent
(70%) of the percentage of Highly Compensated Employees benefiting under the Plan as of such day.
A Plan satisfies the participation test if on any day of the Plan Year, the number of Employees who
benefit under the Plan is at least equal to the lesser of fifty (50) or forty percent (40%) of the
total number of includible Employees as of such day.

If the Plan fails to satisfy either the coverage or minimum participation tests, the Year of
Service requirement will be suspended first for Employees who have satisfied the Plan’s eligibility
requirements as specified in Section IV of the Adoption Agreement and who are employed on the last
day of the Plan Year, but who failed to be credited with enough Hours of Service for that Plan Year
to qualify for a Year of Service, as defined in the Adoption Agreement. Additional Participants
will be eligible to accrue the benefit defined under Section VI of the Adoption Agreement based on
their having been credited with the greatest number of Hours of Service during the Plan Year before
separating from Service. The process of suspending the Year of Service requirement for additional
Participants will continue until the Plan satisfies both the coverage and minimum participation
tests for the Plan Year. Notwithstanding this paragraph, no benefits will be accrued for Employees
who were excluded from Participation in the Plan because they were a member of a collective
bargaining unit, a nonresident alien without U.S. source income or because they were excluded by the Plan’s age and Service requirement. Also, no benefits will be
accrued for Participant’s who have separated from Service and have failed to be credited with more
than 500 Hours of Service.

If after accruing benefits for all the Participants specified above, the coverage and minimum
participation requirements are still not satisfied, the Employer will amend the Adoption Agreement
to eliminate the exclusion of Employees from participation in the Plan based upon job
classifications. Notwithstanding the above, if the Employer so chooses in Section III of the
Adoption Agreement, the average benefits test will be used to satisfy the requirements of Code
Section 410(b), instead of the steps outlined above.

- 24 -

 

Effective as of December 12, 1994, notwithstanding any provisions of this Plan to the contrary,
Participants will accrue the right to share in allocations of Employer contributions with respect
to periods of qualified military service as provided in Code Section 414(u).

3.5 Return Of Contributions

Contributions made to the Plan by the Employer shall be irrevocable except as provided below:

	 	(a)	 	Any contribution forwarded to the Trustee because of a mistake of fact,
provided that the contribution is returned to the Employer within one (1) year of the
contribution.
	 
	 	(b)	 	In the event that the Commissioner of Internal Revenue determines that the Plan
is not initially qualified under the Internal Revenue Code, any contribution made
incident to that initial qualification by the Employer must be returned to the Employer
within one (1) year after the date the initial qualification is denied, but only if the
application for the qualification is made by the time prescribed by law for filing the
Employer’s return for the taxable year in which the Plan is adopted, or such later date
as the Secretary of the Treasury may prescribe.
	 
	 	(c)	 	Contributions forwarded to the Trustee are presumed to be deductible and are
conditioned on their deductibility. Contributions which are disallowed under Code
Section 404 must be returned to the Employer within one (1) year of the disallowance of
the deduction.

- 25 -

 

ARTICLE IV

EMPLOYEE CONTRIBUTIONS

4.1 Voluntary After-tax Contributions

If previously allowed, beginning with the Plan Year in which the attached Adoption Agreement is
executed, this Plan will no longer accept Employee contributions which are allocated to a separate
account. Voluntary Contributions already made may stay in the Trust. Such contributions (as
adjusted for investment experience) shall be nonforfeitable at all times.

Under any Plan which can be established hereunder, an Employee may repay a defaulted loan with
after-tax dollars and may buy-back amounts previously forfeited even if Voluntary Contributions are
not permitted in the Plan. These amounts shall not be treated as contributions and shall not be
subject to the limitations on Annual Additions or the nondiscrimination tests of Code Section
401(m).

4.2 Qualified Voluntary Contributions

The Plan Administrator will not accept Qualified Voluntary Employee Contributions which are made
for a taxable year beginning after 1986. Contributions made prior to that date will be maintained
in a separate account that will be nonforfeitable at all times. The assets of the Trust will be
valued annually at fair market value as of the last day of the Plan Year. On such date, the
earnings and losses of the Trust attributable to the Qualified Voluntary Employee Contribution will
be allocated to each Participant’s Qualified Voluntary Contributions account in the ratio that such
account balance bears to all such account balances. Subject to Article VII, Joint and Survivor
Annuity Requirements (if applicable), the Participant may withdraw any part of the Qualified
Voluntary Employee Contribution account by making a written application to the Plan Administrator.
No part of the Qualified Voluntary Contributions account will be used to purchase life insurance.

4.3 Rollover Contribution

If elected in the Adoption Agreement, a Participant/Employee may make a Rollover Contribution to
any Defined Benefit Plan established hereunder of all or any part of an amount distributed or
distributable to him or her from a Qualified Deferred Compensation Plan or an Individual Retirement
Account (IRA) under Code Section 408 where the IRA was used as a conduit from a Qualified Deferred
Compensation Plan provided:

	 	(a)	 	the amount distributed to the Participant/Employee is transferred to the Plan
no later than the sixtieth day after such distribution was received by the Participant,
	 
	 	(b)	 	the amount distributed is not one of a series of substantially equal periodic
payments made for the life (or life expectancy) of the Participant/Employee or the
joint lives (or joint life expectancies) of the Participant/Employee and the
Participant’s/Employee’s Designated Beneficiary, or for a specified period of ten (10)
years or more,
	 
	 	(c)	 	the amount distributed is not a required minimum distribution required under
Code Section 401(a)(9),
	 
	 	(d)	 	if the amount distributed included property, such property is rolled over, or
if sold the proceeds of such property may be rolled over, and
	 
	 	(e)	 	the amount distributed is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to Employer
securities).

In addition, if the Adoption Agreement allows Rollover Contributions, the Plan will also accept any
Eligible Rollover Distribution (as defined at paragraph 1.35) directly to the Plan.

The Plan Administrator shall be responsible for determining the tax-free status of any Rollover
Contribution made to this Plan, and the Trustee/Custodian shall have no responsibility for any such
determination.

4.4 Transfer Contribution

Unless provided otherwise in the Adoption Agreement, an Employee may also arrange for the direct
transfer of his or her benefit from a Qualified Deferred Compensation Plan to this Plan provided
that the transfer is made in accordance with paragraphs 4.3(b), (c) and (e) hereof. Such transfer
shall be made in cash and/or in-kind. The Employer and/or the Trustee/Custodian in their sole
discretion shall have the right to refuse to accept a transfer in-kind including but not limited to
if such assets do not comply operationally, would result in a prohibited transaction, are not
readily

- 26 -

 

marketable or are not compatible with the Employer’s investment policy objectives. For
accounting and record keeping purposes, Transfer Contributions shall be identical to Rollover
Contributions.

In the event the Employer accepts a Transfer Contribution from a Plan in which the
Participant/Employee was directing the investment of his or her account, the Employer may, if the
Employer determines that it is appropriate and not in violation of the nondiscrimination rules
under Regulations Section 1.401(a)(4)-4, permit the Employee to continue to direct his or her
investments with respect only to such Transfer Contribution.

4.5 Direct Rollover Of Benefits

Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
Distributee’s election under this paragraph, for distributions made on or after January 1, 1993, a
Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have
any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover, provided the amount to be paid directly to an
Eligible Retirement Plan is at least $500. Any portion of a distribution which is not paid directly
to an Eligible Retirement Plan shall be paid to the Distributee. For purposes of this paragraph, a
surviving Spouse or a Spouse or former Spouse who is an alternate payee under a Qualified Domestic
Relations Order as defined in Code Section 414(p), will be permitted to elect to have any Eligible
Rollover Distribution paid directly to an individual retirement account (IRA) or an individual
retirement annuity (IRA). The Plan provisions otherwise applicable to distributions continue to
apply to Rollover and Transfer Contributions.

4.6 Separate Accounts

The Employer shall establish a separate bookkeeping account for each Participant showing the total
value of his or her Employee contributions. Each Participant’s account shall be separated for
bookkeeping purposes into the following sub-accounts:

	 	(a)	 	Voluntary After-tax Contributions.
	 
	 	(b)	 	Qualified Voluntary Contributions.
	 
	 	(c)	 	Rollover Contributions and Transfer Contributions.

4.7 Adjustments To Participant Accounts

The assets of the accounts shall be valued annually at fair market value as of the last day of the
Plan Year. As of each Valuation Date of the Plan, the Employer shall add to each account:

	 	(a)	 	any Employee contributions made by the Participant since the last Valuation
Date, and
	 
	 	(b)	 	the Participant’s proportionate share of any investment earnings and increase
in the fair market value of the Fund since the last Valuation Date, based on the ratio
that each Participant’s account balance bears to all such account balances.

The Employer shall deduct from each account:

	 	(c)	 	any withdrawals or payments made from the Participant’s account since the last
Valuation Date, and
	 
	 	(d)	 	the Participant’s proportionate share of any decrease in the fair market value
of the Fund since the last Valuation Date, based on the ratio that each Participant’s
account balance bears to all such account balances.

A Participant’s share of investment earnings and any increase or decrease in the fair market value
of the Fund shall be based on the proportionate value of all active accounts (other than accounts
with segregated investments) as of the last Valuation Date less withdrawals since the last
Valuation Date. Beginning with the 1989 Plan Year, all Rollover and Transfer Contributions will be
credited with an allocation of the actual investment earnings and gains and losses from the actual
date of deposit of each such contribution to the end of the valuation period. All previous
contributions will continue to accrue earnings and losses as specified above. Accounts with
segregated investments shall receive only the income or loss on such segregated investments.

4.8 Nonforfeitability

A Participant shall always have a 100% vested and nonforfeitable interest in his or her Voluntary
After-tax Contributions, Qualified Voluntary Contributions, Rollover Contributions, and Transfer
Contributions plus the earnings

- 27 -

 

thereon. No suspension or forfeiture of Employer related benefit
accruals (including any minimum accruals made under paragraph 13.2 hereof) will occur solely as a
result of a Participant’s withdrawal of any Employee contributions.

4.9 In-Service Withdrawals Of Employee Contributions

A Participant may withdraw all or any part of the fair market value of his or her Voluntary
After-tax Contributions, Qualified Voluntary Contributions, Rollover Contributions, or Transfer
Contributions upon written request to the Employer. Such request shall include the Participant’s
address, social security number, birth date, and amount of the withdrawal. If at the time a
distribution of Qualified Voluntary Contributions is received the Participant has not attained age
591/2 and is not disabled, as defined at Code Section 22(e)(3), the Participant will be subject to a
Federal income tax penalty, unless the distribution is rolled over to a qualified plan or
individual retirement plan within sixty (60) days of the date of distribution or one of the
exceptions under Code Section 72(t) is satisfied. To the extent that they have not been considered
in determining the Participant’s Accrued Benefit under the Plan, a Participant may withdraw all or
any part of the fair market value of his or her pre-1987 Voluntary After-tax Contributions with or
without withdrawing the earnings attributable thereto. Post 1986 Voluntary After-tax Contributions
may only be withdrawn along with a portion of the earnings thereon. The amount of the earnings to
be withdrawn is determined by using the formula DA [1-(V ÷ V + E)], where DA is the distribution
amount, V is the amount of Voluntary After-tax Contributions and V + E is the amount of Voluntary
After-tax Contributions plus the earnings attributable thereto. A Participant withdrawing his or
her other contributions prior to attaining age 591/2 and satisfying the Plan’s Early Retirement Age,
will be subject to Federal tax penalty to the extent that the withdrawn amounts are includible in
income. Such distributions shall not be eligible for redeposit to the Fund. A withdrawal of
Employee contributions under this paragraph shall not prohibit such Participant from accruing in
any future benefit from Employer contributions. A request to withdraw amounts pursuant to this
paragraph, other than Qualified Voluntary Contributions, must if applicable, be consented to by the
Participant’s Spouse. The consent shall comply with the requirements of paragraph 5.7 relating to
immediate distributions.

4.10 Withdrawal On Termination Of Employment

A Participant may withdraw the fair market value of his or her account accrued from Employee
contributions at any time following termination of employment. However, such benefit must be paid
in a lump sum no later than the time prescribed under paragraph 5.7 hereof.

4.11 Withdrawal On Death

Subject to the Joint and Survivor Annuity Requirements set forth in Article VII, the fair market
value of a Participant’s account accrued from Employee contributions may be paid to his or her
Designated Beneficiary in a lump sum as soon as practical following the Participant’s death, but in
any event within five (5) years of the Participant’s death. If the amount is not so withdrawn, it
will be paid in the same manner as the Participant’s benefits under the Plan.

- 28 -

 

ARTICLE V

RETIREMENT BENEFITS

5.1 Normal Retirement Benefit

Each Participant shall be eligible to retire upon attaining his or her Normal Retirement Age and
shall thereafter be entitled to receive a monthly pension benefit computed in accordance with the
formula adopted and at the time selected by the Employer in the Adoption Agreement. The Normal
Retirement Benefit of each Participant shall not be less than the largest periodic benefit that
would have been payable to the Participant upon separation from Service at or prior to Normal
Retirement Age under the Plan exclusive of Social Security supplements, premiums on disability or
term insurance, and the value of Disability benefits not in excess of the Basic Normal Retirement
Benefit. For purposes of comparing periodic benefits in the same form commencing prior to and at
Normal Retirement Age, the greater benefit is determined by converting the benefit payable prior to
Normal Retirement Age into the same form of annuity benefit payable at Normal Retirement Age and
comparing the amount of such annuity payments. In the case of a Top-Heavy Plan, the Basic Normal
Retirement Benefit shall not be smaller than the minimum benefit to which the Participant is
entitled under paragraph 12.2. Such benefits shall be payable in the normal form set forth in
paragraph 5.9 or the Actuarial Equivalent thereof in one of the optional forms of payment described
in paragraph 5.10 hereof.

5.2 Adjusting Frozen Accrued Benefits

	 	(a)	 	If as of the Participant’s latest Fresh-Start Date the amount of a
Participant’s Frozen Accrued Benefit was limited by the application of Code Section
415, the Participant’s Frozen Accrued Benefit will be increased for the years after the
latest Fresh-Start Date to the extent permitted under Code Section 415(d)(1). In
addition, if a Participant’s Frozen Accrued Benefit includes the Top-Heavy minimum
benefits provided in paragraph 12.2, such benefit will be increased to the extent
necessary to comply with the average Compensation requirements of Code Section
416(c)(1)(D)(i).
	 
	 	(b)	 	If the Plan’s Normal Form of benefit in effect on the Participant’s latest
Fresh-Start Date is not the same as the Normal Form under the Plan after such
Fresh-Start Date and/or the Normal Retirement Age for the Participant on that date was
greater than the Normal Retirement Age for the Participant under the Plan after such
Fresh-Start Date, the Frozen Accrued Benefit will be expressed as an Actuarial
Equivalent benefit in the normal form under the Plan after the Participant’s latest
Fresh-Start Date, commencing at the Participant’s Normal Retirement Age in effect after
such date.
	 
	 	(c)	 	If the Plan provides a new optional form of benefit with respect to a
Participant’s Frozen Accrued Benefit, such new optional form will be provided with
respect to each Participant’s entire Accrued Benefit (including accruals both before
and after the Fresh-Start Date).
	 
	 	(d)	 	If the Plan is a unit credit plan, with respect to Plan Years beginning after
the latest Fresh-Start Date, the current benefit formula will provide each Participant
in the Fresh-Start Group a benefit of not less than .5% of the Participant’s Average
Annual Compensation times the Participant’s Year’s of Service after the latest
Fresh-Start Date.
	 
	 	(e)	 	If the Plan is a flat benefit plan, with respect to Plan Years beginning after
the Plan’s latest Fresh-Start Date, the current benefit formula will provide each
Participant a benefit of not less than twenty-five percent (25%) of the Participant’s
Average Annual Compensation. If a Participant will have less than fifty (50) Years of
Service after the latest Fresh-Start Date through the year the Participant attains
Normal Retirement Age (or current age, if greater), then such minimum percentage will
be reduced by multiplying it by the following ratio:

Participant’s Years of Service after the latest Fresh-Start Date

50

5.3 Late Retirement Benefit

A Participant may elect to work beyond his or her Normal Retirement Age. In such event, the
Participant’s monthly pension benefit shall be deferred until his or her actual retirement, unless
the Employer elects otherwise in Section XVII of the Adoption Agreement or a minimum distribution is required by law. The deferred monthly
pension benefit shall be adjusted as provided in the Adoption Agreement. However, in the case of a
Top-Heavy Plan, the Basic Normal Retirement Benefit shall not be smaller than the minimum benefit
to which the Participant is entitled under paragraph 12.2. If a benefit commencing after Normal
Retirement Age will not be the Actuarial Equivalent of the

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benefit to which the Participant would
have been entitled if benefits commenced at Normal Retirement Age, the Suspension of Benefit
provisions of paragraph 5.14 shall apply.

5.4 Disability Retirement Benefit

If Section X of the Adoption Agreement provides for a Disability benefit, any Participant who meets
the age and Service requirements and who becomes disabled as defined herein shall be eligible to
retire and shall be entitled to receive the Actuarial Equivalent of his or her Accrued Benefit.

5.5 Definite Benefit Requirements

Except to the extent a Participant’s benefits are suspended in accordance with the provisions of
paragraph 5.14, the amount of any benefit under the terms of this Plan will be the Actuarial
Equivalent of the normal form of benefit commencing at Normal Retirement Age. Actuarial
Equivalence shall be determined on the basis of the mortality rates specified in Section III of the
Adoption Agreement, and either the interest rate(s) specified in Section 3 of the Adoption
Agreement or the Code Section 417 interest rate(s), whichever produces the greater benefit. For
new Plans adopted after December 8, 1994, the rates required by Code Section 417 as adjusted for
the General Agreement on Tariffs and Trade (GATT) must be used. These specifications are to be
elected in the Adoption Agreement. In the case of a Plan that provides for permitted disparity
under Code Section 401(l), if benefits commence to a Participant at an age other than Normal
Retirement Age, the Participant’s benefit will be adjusted in accordance with tables provided in
the Adoption Agreement.

Notwithstanding the preceding paragraph, for purposes of determining the amount of a distribution
in a form other than an annual benefit that is nondecreasing for the life of the Participant or, in
the case of a Qualified Pre-Retirement survivor, the life of the Participant’s Spouse; or that
decreases during the life of the Participant merely because of the death of the surviving annuitant
(but only if the reduction is to a level not below fifty percent (50%) of the annual benefit
payable before the death of the surviving annuitant) or merely because of the cessation or
reduction of Social Security supplements or qualified disability payments, Actuarial Equivalence
will be determined on the basis of the applicable mortality table and Applicable Interest Rate
under Code Section 417(e), if it produces a benefit greater than that determined under the
preceding paragraph. In addition, the amount of any distribution under the terms of this Plan will
be determined in accordance with the preceding paragraphs.

Notwithstanding the election by the Employer in the Adoption Agreement, a Plan amendment that
changes the date for determining the Applicable Interest Rate (including an indirect change as a
result of a change in Plan Year), shall not be given effect with respect to any distribution during
the period ending one (1) year after the later of the amendment’s Effective Date or adoption date,
if, during such period and as a result of such amendment, the Participant’s distribution would be
reduced.

For Plan Years beginning before January 1, 2000, the Code Section 417 interest rate(s) are:

	 	(a)	 	the Applicable Interest Rate if the Present Value of the benefit [using such
rate(s)] is not in excess of $25,000; or
	 
	 	(b)	 	120% of the Applicable Interest Rate if the Present Value of the benefit
exceeds $25,000 [as determined under clause (a) above]. In no event shall the Present
Value determined under this clause (b) be less than $25,000.

The Applicable Interest Rate, for a Plan covered under PBGC termination coverage, is the interest
rate(s) which would be used (as of the first day of the Plan Year which contains the Annuity
Starting Date or such other day specified in Section III of the Adoption Agreement) by the Pension
Benefit Guaranty Corporation for a trusteed single-employer plan to value a benefit under
termination of an insufficient trusteed single-employer plan.

The Code Section 417 interest rate limitations shall apply to distributions in Plan Years beginning
after 1984. Notwithstanding the foregoing, the Code Section 417 interest rate limitations shall
not apply to any distributions commencing in Plan Years beginning before 1987, if such
distributions were determined in accordance with the interest rate(s) as required by Treasury Regulations Section 1.417(e)-1T(e) (including the PBGC
immediate interest rate).

The Code Section 417 interest rate limitations shall not apply to annuity contracts distributed to
or owned by a Participant prior to September 17, 1985, unless additional contributions are made
under the Plan by the Employer with respect to such contracts. In addition, the Code Section 417
interest rate limitations shall not apply to annuity contracts owned by the Employer or distributed
to or owned by a Participant prior to the first Plan Year after 1988, if the annuity contracts
satisfied the requirements in Regulations Sections 1.401(a)-11T and 1.417(e)-1T. The preceding
sentence

- 30 -

 

shall not apply if additional contributions are made under the Plan by the Employer with
respect to such contracts on or after the beginning of the first Plan Year beginning after 1988.

If as a result of actuarial increases to the benefit of a Participant who delays the commencement
of benefits beyond Normal Retirement Age the Accrued Benefit of such Participant would exceed the
Code Section 415 limitations under Article IX of the Plan for such year, immediately before the
actuarial increase that would cause such Participant’s benefit to exceed the limitations of Code
Section 415, payment of benefits to such Participant will be suspended in accordance with paragraph
5.14 of the Plan, if applicable; otherwise distribution of the Participant’s benefit will commence.

5.6 Early Retirement Benefit

If Section 10 of the Adoption Agreement provides an Early Retirement Benefit, any Participant who
meets the age and Service requirements shall be eligible to retire and shall be entitled to receive
the Actuarial Equivalent of his or her Accrued Benefit. If a Participant separated from Service
before satisfying the age requirement for Early Retirement, but has satisfied the Service
requirement, the Participant will be entitled to elect an Early Retirement benefit upon
satisfaction of such age requirement.

5.7 Cash-Out Of Accrued Benefits

If an Employee terminates Service and the Present Value of the Employee’s Vested Accrued Benefit
derived from Employer and Employee contributions is not greater than $5,000 (or a lesser amount if
indicated in the Adoption Agreement), unless otherwise specified in the Adoption Agreement, the
Employee will receive a distribution of the Present Value of the entire vested portion of such
Accrued Benefit and the nonvested portion will be treated as a forfeiture. For purposes of this
paragraph, if the Present Value of an Employee’s Vested Accrued Benefit is zero (0), the Employee
shall be deemed to have received a distribution of such Vested Accrued Benefit.

If an Employee terminates Service and the Present Value of the Employee’s Vested Accrued Benefit
derived from Employer and Employee contributions exceeds $5,000, unless otherwise specified in the
Adoption Agreement, the Employee may elect, in accordance with paragraph 5.7 of the Plan, to
receive a distribution of the Present Value of the entire vested portion of such Accrued Benefit
and the nonvested portion will be treated as a forfeiture. A Participant’s Vested Accrued Benefit
shall not include Qualified Voluntary Employee Contributions. For the purpose of the foregoing
provisions, Present Value shall be calculated using the interest rate specified in Section III of
the Adoption Agreement.

If an Employee receives a distribution pursuant to this paragraph and the Employee resumes covered
employment under the Plan, he or she shall have the right to restore his or her Employer-derived
Accrued Benefit (including all optional forms of benefits and subsidies relating to such benefits)
to the extent forfeited upon the repayment to the Plan of the full amount of the distribution plus
interest, compounded annually from the date of distribution at the rate determined for purposes of
Code Section 411(c)(2)(C). Such repayment must be made before the earlier of five (5) years after
the first date on which the Participant is subsequently reemployed by the Employer, or the date the
Participant incurs five (5) consecutive one (1) year Breaks in Service following the date of
distribution.

If a Participant is deemed to receive a distribution pursuant to this section, and the Participant
resumes employment covered under this Plan before the date he or she incurs five (5) consecutive
one (1) year Breaks in Service, upon the reemployment of such Participant, the Employer-derived
Accrued Benefit will be restored to the amount of such Accrued Benefit on the date of the deemed
distribution.

5.8 Restrictions On Immediate Distributions

	 	(a)	 	If either the Present Value of a Participant’s Vested Accrued Benefit derived
from Employer and Employee contributions exceeds (or at the time of any prior
distribution exceeded) $5,000 or there are remaining payments to be made with respect
to a particular distribution option that previously commenced, and the Accrued Benefit
is immediately distributable, the Participant and the Participant’s Spouse (or where
either the Participant or the Spouse has died, the survivor) must consent to any
distribution of such Accrued Benefit. The consent of the Participant and the
Participant’s Spouse shall be obtained in writing within the ninety (90) day period
ending on the Annuity Starting Date. The Annuity Starting Date is the first day of the
first period for which an amount is paid as an annuity or any other form. The Plan
Administrator shall notify the Participant and the Participant’s Spouse of the right to
defer any distribution until the Participant’s Accrued Benefit is no longer immediately
distributable. Such notification shall include a general description of the material
features and an explanation of the relative values of, the optional forms of benefit

- 31 -

 

	 	 	 	available under the Plan in a manner that would satisfy the notice requirements of Code
Section 417(a)(3), and shall be provided no less than thirty (30) days and no more than
ninety (90) days prior to the Annuity Starting Date.
	 
	 	(b)	 	The Annuity Starting Date for a distribution in a form other than a Qualified
Joint and Survivor Annuity may be less than thirty (30) days after receipt of the
written explanation described in the preceding paragraph provided:

	 	(i)	 	the Participant has been provided with information that clearly
indicates that the Participant has at least thirty (30) days to consider whether
to waive the Qualified Joint and Survivor Annuity and has affirmatively elected
(with spousal consent) to a form of distribution other than a Qualified Joint
and Survivor Annuity;
	 
	 	(ii)	 	the Participant is permitted to revoke any affirmative
distribution election at least until the Annuity Starting Date or, if later, at
any time prior to the expiration of the seven (7) day period that begins the day
after the explanation of the Qualified Joint and Survivor Annuity is provided to
the Participant; and
	 
	 	(iii)	 	the Annuity Starting Date is a date after the date that the
written explanation was provided to the Participant.

	 	 	 	Notwithstanding the foregoing, only the Participant need consent to the commencement
of a distribution in the form of a Qualified Joint and Survivor Annuity while the
Accrued Benefit is immediately distributable. Neither the consent of the Participant
nor the Participant’s Spouse shall be required to the extent that a distribution is
required to satisfy Code Sections 401(a)(9) or 415.
	 
	 	 	 	Present Value shall be determined in accordance with Section III of the Adoption
Agreement. An Accrued Benefit is immediately distributable if any part of the
Accrued Benefit could be distributed to the Participant (or Surviving Spouse) before
the Participant attains (or would have attained if not deceased) the later of Normal
Retirement Age or age sixty-two (62).
	 
	 	(c)	 	For purposes of determining the applicability of the foregoing consent
requirements to distributions made before the first day of the first Plan Year
beginning after 1988, the Participant’s Vested Accrued Benefit shall not include
amounts attributable to Qualified Voluntary Employee Contributions.
	 
	 	(d)	 	Transitional Rule for Cash Out Limits - For distributions made before March 22,
1999, if the Present Value of a Participant’s Vested Accrued Benefit derived from
Employer and Employee Contributions exceeds (or at the time of any prior distribution
in Plan Years beginning before August 6, 1997, exceeded $3,500 or in Plan Years
beginning after August 5, 1997, exceeded $5,000) and the Accrued Benefit is immediately
distributable, the Participant and the Participant’s Spouse (or where either the
Participant or the Spouse has died, the survivor) must consent to any distribution of
such Accrued Benefit.

5.9 Normal Form Of Payment

The Basic Normal Retirement Benefit is calculated as a Straight Life Annuity as defined at
paragraph 1.87, unless otherwise specified in Section VII of the Adoption Agreement. However, all
distributions of benefits shall be subject to the Joint and Survivor Annuity Requirements of Article VII. The normal form of payment, as so
limited by Article VII, will be automatic unless the Participant files a written application with
the Employer prior to actual retirement requesting an optional form of payment.

5.10 Optional Forms Of Payment

In lieu of the normal form of payment, a Participant may, subject to the Joint and Survivor Annuity
Requirements of Article VII, make written application to the Employer at any time requesting one of
the following optional forms of payment as limited by the Employer in Section VII of the Adoption
Agreement, each of which is the Actuarial Equivalent of the Basic Normal Retirement Benefit:

	 	(a)	 	Straight Life Annuity.
	 
	 	(b)	 	Life annuity with not more than 240 monthly payments guaranteed.

- 32 -

 

	 	(c)	 	Joint and Survivor Annuity with a minimum of fifty percent (50%) and a maximum
of 100% of the Participant’s benefit continuing to his or her Spouse for life after the
Participant’s death.
	 
	 	(d)	 	Lump sum payment.
	 
	 	(e)	 	Other form(s) permitted in the Adoption Agreements.

Such payments shall be made directly from the Trust or, if directed by the Employer, through the
purchase of a paid-up nontransferable annuity contract. No optional form of payment which is made
available to Participants may be eliminated by the Employer in future Plan amendments.

5.11 Commencement Of Benefits

Unless a Participant elects otherwise in writing, distribution of benefits will begin no later than
the sixtieth day after the latest of the close of the Plan Year in which:

	 	(a)	 	the Participant attains age sixty-five (65) (or Normal Retirement Age if
earlier),
	 
	 	(b)	 	occurs the tenth anniversary of the year in which the Participant commenced
participation in the Plan, or
	 
	 	(c)	 	the Participant terminates Service with the Employer.

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 paragraph 5.7 of the Plan,
shall be deemed an election to defer commencement of payment of any benefit.

5.12 In-Service Withdrawals Of Employer Contributions

Benefits accrued from Employer related contributions may not commence to be paid prior to Normal
Retirement Age, Early Retirement Age, Disability retirement, termination of employment, Plan
termination, or death.

5.13 Claims Procedures

Upon retirement, death, or other severance of employment, the Participant or representative of such
Participant may make application to the Employer requesting payment of benefits due and the manner
of payment. If no application for benefits is made, the Employer shall automatically pay any
vested benefit due hereunder in the normal form at the time prescribed at paragraph 5.11. If an
application for benefits is made, the Employer shall accept, reject, or modify such request and
shall notify the Participant in writing setting forth the response of the Employer and in the case
of a denial or modification the Employer shall:

	 	(a)	 	state the specific reason or reasons for the denial,
	 
	 	(b)	 	provide specific reference to pertinent Plan provisions on which the denial is
based,
	 
	 	(c)	 	provide a description of any additional material or information necessary for
the Participant or his representative to perfect the claim and an explanation of why
such material or information is necessary, and
	 
	 	(d)	 	explain the Plan’s claim review procedure as contained herein.

In the event the request is rejected or modified, the Participant or his representative may within
sixty (60) days following receipt by the Participant or representative of such rejection or
modification, submit a written request for review by the Employer of its initial decision. Within
sixty (60) days following such request for review, the Employer shall render its final decision in
writing to the Participant or representative stating specific reasons for such decision. If the
Participant or representative is not satisfied with the Employer’s final decision, the Participant
or representative can institute an action in a Federal Court of competent jurisdiction; for this
purpose, process would be served on the Employer.

5.14 Suspension Of Benefits

If the Employer chooses through its administrative policies to make this paragraph operative,
retirement benefits commencing after Normal Retirement Age will be the Actuarial Equivalent of the
benefit to which the Participant would have been entitled if benefits commenced at Normal
Retirement Age.

- 33 -

 

	 	(a)	 	Normal or Early Retirement Benefits in pay status will be suspended for each
calendar month during which the Participant completes at least forty (40) Hours of
Service with the Employer in ERISA Section 203(a)(3)(B) service. Similarly, the
actuarial value of benefits which commence later than Normal Retirement Age will be
computed without regard to amounts which would have been suspended under the preceding
sentence as if the Participant had been receiving benefits since Normal Retirement Age.
	 
	 	(b)	 	Resumption of Payment — If benefit payments have been suspended, payments shall
resume no later than the first day of the third calendar month after the calendar month
in which the Participant ceases to be employed in ERISA Section 203(a)(3)(B) service.
The initial payment upon resumption shall include the payment scheduled to occur in the
calendar month when payments resume and any amounts withheld during the period between
the cessation of ERISA Section 203(a)(3)(B) service and the resumption of payments.
	 
	 	(c)	 	Notification — No payment shall be withheld by the Plan pursuant to this
paragraph unless the Plan notifies the Participant by personal delivery or first class
mail during the first calendar month or payroll period in which the Plan withholds
payments that his or her benefits are suspended. Such notifications shall contain a
description of the specific reasons why benefit payments are being suspended, a
description of the Plan provision relating to the suspension of payments, a copy of
such provisions, and a statement to the effect that applicable Department of Labor
regulations may be found in Regulations Section 2530.203-3. In addition, the notice
shall inform the Participant of the Plan’s procedures for affording a review of the
suspension of benefits. Requests for such reviews may be considered in accordance with
the claims procedure adopted by the Plan pursuant to ERISA Section 503 and applicable
Regulations.
	 
	 	(d)	 	Amount Suspended:

	 	(1)	 	Life Annuity — In the case of benefits payable periodically on a
monthly basis for as long as a life (or lives) continues, such as a Straight
Life Annuity or a Qualified Joint and Survivor Annuity, an amount equal to the
portion of a monthly benefit payment derived from Employer contributions.
	 
	 	(2)	 	Other Benefit Forms — In the case of a benefit payable in a form
other than the form described in sub-paragraph (1) above, an amount of the
Employer-derived portion of benefit payments for a calendar month in which the
Participant is employed in ERISA Section 203(a)(3)(B) service, equal to the
lesser of:

	 	(i)	 	the amount of benefits which would have been
payable to the Participant if he had been receiving monthly benefits
under the Plan since actual retirement based on a single Straight Life
Annuity commencing at actual retirement age; or
	 
	 	(ii)	 	the actual amount paid or scheduled to be paid to
the Participant for such month. Payments which are scheduled to be paid
less frequently than monthly may be converted to monthly payments for
purposes of the above sentence.

	 	(e)	 	This section does not apply to the minimum benefit to which the Participant is
entitled under the Top-Heavy rules of paragraph 12.2.

5.15 Special Rules For Fully Insured Plans

Notwithstanding other Plan provisions to the contrary:

	 	(a)	 	This Plan may be funded exclusively by the purchase of individual insurance
contracts, except for any Top-Heavy sidefund trust maintained for purposes of meeting
the minimum benefit requirements of Code Section 416(c).
	 
	 	(b)	 	All contracts will provide for level annual premium payments to be paid for the
period commencing with the date that each individual became a Participant in the Plan
(or, in the case of an increase in benefits, commencing at the time such increase
becomes effective) and extending to the Normal Retirement Age for each such
Participant.

- 34 -

 

	 	(c)	 	A fully insured Plan may provide that the amount of retirement benefit provided
by insurance or annuity contracts will not be provided or increased until the
Participant’s Compensation is large enough to provide or increase the retirement
benefit by a specified minimum amount. This minimum can be no greater than $120 per
year or $10 per month.
	 
	 	(d)	 	In a fully insured Plan, the current benefit formula may not recognize Years of
Service before an Employee commences participation in the Plan. Notwithstanding the
foregoing, a Plan with a current benefit formula that was adopted and in effect on
September 19, 1991, may continue to recognize Years of Service prior to an Employee’s
participation in the Plan, to the extent provided in the Plan on such date. The
preceding sentence does not apply with respect to an Employee who first becomes a
Participant in the Plan after that date.
	 
	 	(e)	 	A fully insured Plan satisfies the permitted disparity rules of Code Section
401(l) if each Participant’s benefit under the Plan’s benefit formula satisfies the
permitted disparity rules otherwise applicable to Defined Benefit Plans. This includes
any required reductions of up to 0.75% to the maximum excess allowance, or, if
applicable, the maximum offset allowance. However, the applicable factor as determined
must be further reduced by multiplying it by 0.80.
	 
	 	(f)	 	For fully insured Plans, adjustments are not required for benefits beginning at
a time other than Normal Retirement Age.
	 
	 	(g)	 	Benefits provided by the Plan are equal to the benefits provided under each
contract at Normal Retirement Age under the Plan and are guaranteed by an insurance
carrier (licensed under the laws of a state to do business with the Plan) to the extent
premiums have been paid.
	 
	 	(h)	 	The premium payments for a Participant who continues benefiting after Normal
Retirement Age are equal to the amount necessary to fund additional benefits that
accrued under the Plan’s benefit formula for the Plan Year.
	 
	 	(i)	 	Each Participant’s Accrued Benefit as of any applicable date is the cash
surrender value of the Participant’s insurance contract, or if greater, the cash
surrender value the Participant’s insurance contracts would have had on such applicable
date if (i) premiums payable for such Participant’s Years of Participation for the
current Plan Year and all prior Plan Years under such contracts had been paid before
lapse and (ii) no rights under such contracts had been subject to a security interest
at any time, and (iii) no policy loans were outstanding at any time.
	 
	 	(j)	 	All benefits must be funded through contracts of the same series which must
have cash values based on the same terms (including interest and mortality assumptions)
and the same conversion rights. A Plan does not fail to satisfy this requirement,
however, if any prospective change in the contract series or insurer applies on the
same terms to all Participants in the Plan.
	 
	 	(k)	 	No rights under any contracts will be subject to a security interest at any
time, and no policy loans, including loans to Participants, will be made at any time.

- 35 -

 

ARTICLE VI

DISTRIBUTION REQUIREMENTS

6.1 Joint And Survivor Annuity Requirements

Any benefit payable under this Article is subject to the Joint and Survivor Annuity provisions set
forth in Article VII. The requirements of this Article shall apply to any distribution of a
Participant’s interest and will take precedence over any inconsistent provisions of this Plan.
Unless otherwise specified, the provisions of this Article apply to calendar years beginning after
1984.

6.2 Minimum Distribution Requirements

All distributions required under this Article shall be determined and made in accordance with the
minimum distribution requirements of Code Section 401(a)(9) and the Regulations thereunder,
including the minimum distribution incidental benefit rules found at Regulations Section
1.401(a)(9)-2. The entire interest of a Participant must be distributed or begin to be distributed
no later than the Participant’s Required Beginning Date. Life expectancy and joint and last
survivor life expectancy are computed by using the expected return multiples found in the tables
published at Regulations Section 1.72-9.

6.3 Limits On Distribution Periods

As of the First Distribution Calendar Year, distributions if not made in a single-sum, may only be
made over one of the following periods (or a combination thereof):

	 	(a)	 	the life of the Participant;
	 
	 	(b)	 	the life of the Participant and a Designated Beneficiary;
	 
	 	(c)	 	a period certain not extending beyond the life expectancy of the Participant;
or
	 
	 	(d)	 	a period certain not extending beyond the joint and last survivor expectancy of
the Participant and a Designated Beneficiary.

6.4 Required Beginning Date

The entire interest of a Participant must be distributed or begin to be distributed no later than
the Participant’s Required Beginning Date. The Required Beginning Date of a Participant shall be
one of the following as selected by the Employer in the Adoption Agreement:

	 	(a)	 	The April 1 of the calendar year following the calendar year in which the
Participant attains age 701/2.
	 
	 	(b)	 	The April 1 of the calendar year following the calendar year in which the
Participant attains age 701/2, except that benefit distributions to a Participant [other
than a five percent (5%)owner] with respect to benefits accrued after the later of the
adoption or effective date of the amendment to the Plan must commence by the later of
the April 1 of the calendar year following the calendar year in which the Participant
attains age 701/2 or retires.
	 
	 	(c)	 	The later of the April 1 of the calendar year following the calendar year in
which the Participant attains age 701/2 or retires except that benefit distributions to a
five percent (5%) owner must commence by the April 1 of the calendar year following the
calendar year in which the Participant attains age 701/2.

Any Participant attaining age 701/2 in years after 1995 may elect by April 1 of the calendar year
following the year in which the participant attained age 701/2, (or by December 31, 1997 in the case
of a Participant attaining age 701/2 in 1996) to defer distributions until the calendar year
following the calendar year in which the Participant retires. If no such election is made the
Participant will begin receiving distributions by the April 1 of the calendar year following the
year in which the Participant attained age 701/2 (or by December 31, 1997 in the case of a
Participant attaining age 701/2 in 1996).

Any Participant attaining age 701/2 in years prior to 1997 may elect to stop distributions and
recommence by the April 1 of the calendar year following the year in which the Participant retires.
There is either (as elected by the Employer in the adoption agreement) (i) a new annuity starting
date upon recommencement, or (ii) no new annuity starting date upon recommencement.

- 36 -

 

Elimination of Pre-Retirement Age 701/2 Distribution Option —  This distribution option is only
eliminated with respect to Employees who reach age 701/2 in or after a calendar year that begins
after the later of December 31, 1998, or the adoption date of the amendment. The pre-retirement age
701/2 distribution option is an optional form of benefit under which benefits payable in a particular
distribution form (including any modifications that may be elected after benefit commencement)
commence at a time during the period that begins on or after January 1 of the calendar year in
which an employee attains age 701/2 and ends April 1 of the immediately following calendar year.

Five percent (5%) owner — A Participant is treated as a five percent (5%) owner for purposes of
this section is such Participant is a five percent (5%) owner as defined in Code Section 416 at any
time during the Plan Year ending with or within the calendar year in which such owner attains age
701/2. Once distributions have begun to a five percent (5%) owner under this section, they must
continue to be distributed, even if the Participant ceases to be a five percent (5%) owner in a
subsequent year.

Transitional Rules for Plan Years began before January 1, 1997 —  The Required Beginning Date of a
Participant who attained age 701/2 before 1988, shall be determined in accordance with (1) or (2)
below:

	 	(a)	 	Non-five percent (5%) owners. The Required Beginning Date of a Participant who
is not a five percent (5%) owner is the first day of April of the calendar year
following the calendar year in which the later of retirement or attainment of age 701/2
occurs. The Required Beginning Date of a Participant who is not a five percent (5%)
owner, who attains age 701/2 during 1988 and who has not retired as of 1989, is April 1,
1990.
	 
	 	(b)	 	Five percent (5%) owners. The Required Beginning Date of a Participant who is
a five percent (5%) owner during any year beginning after 1979, is the first day of
April following the later of:

	 	(1)	 	the calendar year in which the Participant attains age 701/2, or
	 
	 	(2)	 	the earlier of the calendar year with or within which ends the
Plan Year in which the Participant becomes a five percent (5%) owner, or the
calendar year in which the Participant retires.

	 	(c)	 	A Participant is treated as a five percent (5%) owner for purposes of this
paragraph if such Participant is a five percent (5%) owner as defined in Code Section
416(i) (determined in accordance with Code Section 416 but without regard to whether
the Plan is Top-Heavy) at any time during the Plan Year ending with or within the
calendar year in which such owner attains age 661/2 or any subsequent Plan Year.
	 
	 	(d)	 	Once distributions have begun to a five percent (5%) owner under this
paragraph, they must continue to be distributed, even if the Participant ceases to be a
five percent (5%) owner in a subsequent year.

6.5 Determination Of Amount To Be Distributed Each Year

	 	(a)	 	If the Participant’s interest is to be paid in the form of Straight Life
Annuity distribution under the Plan, payments under the annuity shall satisfy the
following requirements:

	 	(1)	 	the annuity distributions must be paid in periodic payments made
at intervals not longer than one (1) year;
	 
	 	(2)	 	the distribution period must be over a life (or lives) or over a
period certain not longer than a life expectancy (or joint life and last
survivor expectancy) described in Code Sections 401(a)(9)(A)(ii) or
401(a)(9)(b)(iii) whichever is applicable;
	 
	 	(3)	 	the life expectancy (or joint life and last survivor expectancy)
for purposes of determining the period certain shall be determined without
recalculation of life expectancy;
	 
	 	(4)	 	once payments have begun over a period certain, the period
certain may not be lengthened even if the period certain is shorter than the
maximum permitted;
	 
	 	(5)	 	payments must either be nonincreasing or increase only as
follows:

	 	(i)	 	with any percentage increase in a specified and
generally recognized cost-of-living index;

- 37 -

 

	 	(ii)	 	to the extent of the reduction to the amount of
the Participant’s payments to provide for a survivor benefit upon death,
but only if the beneficiary whose life was being used to determine the
distribution period described in paragraph 6.3 above dies and the
payments continue otherwise in accordance with that section over the
life of the Participant;
	 
	 	(iii)	 	to provide cash refunds of Employee
contributions upon the Participant’s death; or
	 
	 	(iv)	 	because of an increase in benefits under the
Plan.

	 	(6)	 	If the annuity is a Straight Life Annuity [or a life annuity with
a period certain not exceeding twenty (20) years], the amount which must be
distributed on or before the Participant’s Required Beginning Date (or, in the
case of distributions after the death of the Participant, the date distributions
are required to begin pursuant to paragraph 6.9 below) shall be the payment
which is required for one payment interval. The second payment need not be made
until the end of the next payment interval even if that payment interval ends in
the next calendar year. Payment intervals are the periods for which payments
are received, e.g., bi-monthly, monthly, semi-annually, or annually.
	 
	 	 	 	If the annuity is a period certain annuity without a life contingency [or is
a life annuity with a period certain exceeding twenty (20) years], periodic
payments for each distribution calendar year shall be combined and treated as
an annual amount. The amount which must be distributed by the Participant’s
Required Beginning Date or, in the case of distributions after the death of
the Participant, the date distributions are required to begin pursuant to
paragraph 6.9 is the annual amount for the First Distribution Calendar Year.
The annual amount for other Distribution Calendar Years, including the annual
amount for the calendar year in which the Participant’s Required Beginning
Date (or the date distributions are required to begin pursuant to paragraph
6.9 below) occurs, must be distributed on or before December 31 of the
calendar year for which the distribution is required.

	 	(b)	 	Annuities purchased after 1988, are subject to the following additional
conditions:

	 	(1)	 	Unless the Participant’s Spouse is the Designated Beneficiary, if
the Participant’s interest is being distributed in the form of a period certain
annuity without a life contingency, the period certain as of the beginning of
the First Distribution Calendar Year may not exceed the applicable period
determined using the table set forth in Q&A A-5 of Regulations Section
1.401(a)(9)-2, as proposed.
	 
	 	(2)	 	If the Participant’s interest is being distributed in the form of
a Joint and Survivor Annuity for the joint lives of the Participant and a
non-Spouse beneficiary, annuity payments to be made on or after the
Participant’s Required Beginning Date to the Designated Beneficiary after the
Participant’s death must not at any time exceed the applicable percentage of the
annuity payment for such period that would have been payable to the Participant
using the table set forth in Q&A A-6 of Regulations Section 1.401(a)(9)-2, as
proposed.

	 	(c)	 	Transitional Rule - If payments under an annuity which complies with
sub-paragraph (a) above begin prior to 1989, the minimum distribution requirements in
effect as of July 27, 1987, shall apply to distributions from this Plan, regardless of
whether the annuity form of payment is irrevocable. This transitional rule also
applies to deferred annuity contracts distributed to or owned by the Participant prior
to 1989, unless additional contributions are made under the Plan by the Employer with
respect to such contract.
	 
	 	(d)	 	If the form of distribution is an annuity made in accordance with this
paragraph 6.5, any additional benefits accruing to the Participant after his or her
Required Beginning Date shall be distributed as a separate and identifiable component of the annuity beginning with the first payment
interval ending in the calendar year immediately following the calendar year in which
such amount accrues.
	 
	 	(e)	 	Any part of the Participant’s interest which is in the form of an individual
account shall be distributed in a manner satisfying the requirements of Code Section
401(a)(9) and the Regulations thereunder.
	 
	 	(f)	 	Except with respect to all Participants in a governmental or church plan, or a
five percent (5%) owner in other plans, a Participant’s Accrued Benefit is actuarially
increased to take into account the period

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	 	 	 	after age 701/2 in which the Employee does not
receive any benefits under the Plan. The actuarial increase begins on the April 1
following the calendar year in which the Employee attains age 701/2 (January 1, 1997 in
the case of an Employee who attained age 701/2 prior to 1996), and ends on the date on
which benefits commence after retirement in an amount sufficient to satisfy Code
Section 401(a)(9).
	 
	 	 	 	The amount of actuarial increase payable as of the end of the period for actuarial
increases must be no less than the Actuarial Equivalent of the Employee’s retirement
benefits that would have been payable as of the date the actuarial increase must
commence plus the Actuarial Equivalent of additional benefits accrued after that
date, reduced by the Actuarial Equivalent of any distributions made after that date.
The actuarial increase is generally the same as, and not in addition to, the
actuarial increase required for that same period under Code Section 411 to reflect
the delay in payments after Normal Retirement, except that the actuarial increase
required under Code Section 401(a)(9)(C) must be provided even during the period
during which an Employee is in ERISA Section 203(a)(3)(B) service.
	 
	 	 	 	For purposes of Code Section 411(b)(1)(H), the actuarial increase will be treated as
an adjustment attributable to the delay in distribution of benefits after the
attainment of Normal Retirement Age. Accordingly, to the extent permitted under Code
Section 411(b)(1)(H), the actuarial increase required under Code Section
401(a)(9)(C)(iii) may reduce the benefit accrual otherwise required under Code
Section 411(b)(1)(H)(i), except that the rules on the suspension of benefits are not
applicable.

6.6 Eligibility For Death Benefits

The Plan need not provide a pre-retirement death benefit, other than a qualified pre-retirement
survivor annuity for the benefit of either the Spouse of a married Participant or for the benefit
of a former Spouse under the provisions of a Qualified Domestic Relations Order. Additional
incidental pre-retirement death benefits may be provided for by the Employer in the Adoption
Agreement. Except as provided below for Participants who are employed after attaining the
Qualified Early Retirement Age (as defined in paragraph 1.65), unless the Employer provides for an
additional incidental death benefit, no benefit will be payable to the Designated Beneficiary of an
unmarried active or terminated Participant who dies prior to Normal Retirement Age, even though
such Participant may have had a vested and nonforfeitable interest in a deferred benefit payable at
Normal Retirement Age. Notwithstanding the above, a Participant who is employed after attaining
the Qualified Early Retirement Age shall be given the opportunity to elect to have a Qualified
Joint and Survivor Annuity or one of the optional forms of payment, become effective upon his or
her death. To the extent that it is not in conflict with the provisions of Article VII, such
election shall be made during the period beginning on the later of the 90th day prior to the
Participant’s attainment of the Qualified Early Retirement Age or on the date on which
participation begins and ends on the date the Participant actually retires or terminates
employment. The Plan may require a minimum not to exceed $1,000 before it will provide or increase
an insured death benefit.

6.7 Death After Commencement Of Benefits

If the Participant dies after distribution of his or her interest has commenced, the remaining
portion of such interest will continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Participant’s death.

6.8 Death Prior To Commencement Of Benefits

If the Participant dies before distribution of his or her interest commences, the Participant’s
entire death benefit, if any, will be distributed no later than the December 31 of the calendar
year containing the fifth anniversary of the Participant’s death except to the extent that an
election is made to receive distributions in accordance with (a) or (b) below.

	 	(a)	 	If any portion of the Participant’s interest is payable to a Designated
Beneficiary, distributions may be made in substantially equal installments over the
life or over a period certain not greater than the life expectancy of the Designated
Beneficiary commencing on or before December 31 of the calendar year immediately
following the calendar year in which the Participant died.
	 
	 	(b)	 	If the Designated Beneficiary is the Participant’s Surviving Spouse, the date
distributions are required to begin in accordance with (a) above shall not be earlier
than the later of:

	 	(1)	 	December 31 of the calendar year immediately following the
calendar year in which the Participant died, and
	 
	 	(2)	 	December 31 of the calendar year in which the Participant would
have attained at 701/2.

- 39 -

 

	 	 	 	If the Spouse dies before payments begin, subsequent distributions shall be made
pursuant to this paragraph 6.8 with the exception of sub-paragraph (b) as if the
Spouse had been the Participant.

6.9 Life Expectancy

If payout is made other than through the purchase of an immediate annuity, the applicable calendar
year shall be the First Distribution Calendar Year, and if life expectancy is being recalculated
each such succeeding calendar year. If annuity payments commence before the Required Beginning
Date, the applicable calendar year is the year such payments commence. If distribution is in the
form of an immediate annuity purchased after the Participant’s death with the Participant’s
remaining interest, the applicable calendar year is the year of purchase.

For purposes of paragraph 6.9, payments will be calculated by use of the return multiples as
specified in Regulations Section 1.72-9. Life expectancy of a Surviving Spouse may be recalculated
annually however, in the case of any other Designated Beneficiary, such life expectancy will be
calculated at the time payment first commences and payments for any 12-consecutive month period
will be based on such life expectancy minus the number of whole years passed since distribution
first commenced.

6.10 Beneficiary Election Of Distribution Method

If the Participant has not made an election pursuant to paragraph 6.9 by the time of his or her
death, the Participant’s Designated Beneficiary must elect the method of distribution no later than
the earlier of:

	 	(a)	 	December 31 of the calendar year in which distributions would be required to
begin under said paragraph, or
	 
	 	(b)	 	December 31 of the calendar year which contains the fifth anniversary of the
date of death of the Participant. If the Participant has no Designated Beneficiary, or
if the Designated Beneficiary does not elect a method of distribution, distribution of
the Participant’s entire interest must be completed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

6.11 Payments To A Child Of The Participant

For purposes of this Article, any amount paid to a child of the Participant will be treated as if
it had been paid to the Surviving Spouse if the amount becomes payable to the Surviving Spouse when
the child reaches the age of majority.

6.12 Deemed Distribution Starting Date

For the purposes of this Article VI, distribution of a Participant’s interest is considered to
begin on the Participant’s Required Beginning Date (or, if paragraph 6.9 above is applicable, the
date distribution is required to begin to the Surviving Spouse pursuant to said paragraph). If
distribution in the form of an annuity described in paragraph 6.5(a) above irrevocably commences to
the Participant before the Required Beginning Date, the date distribution is considered to begin is
the date distribution actually commences.

6.13 No Beneficiary

Any portion of the amount payable hereunder which is undisposed of because of the Participant’s or
former Participant’s failure to designate a beneficiary, or because all of the Designated
Beneficiaries are deceased, shall be paid to his or her Spouse. If the Participant had no Spouse
at the time of death, payment shall be made to the personal representative of his or her estate in a lump sum. If no representative can be found, then the
amounts due to the Participant shall be forfeited to the Trust until the Participant, or if
applicable, their beneficiary, makes a valid claim for the benefits.

6.14 Transitional Rules

	 	(a)	 	Notwithstanding the other requirements of this Article and subject to the
requirements of Article VII, Joint and Survivor Annuity Requirements, distribution on
behalf of any Participant, including a five percent (5%) owner, may be made in
accordance with all of the following requirements (regardless of when such distribution
commences):

	 	(1)	 	The distribution by the Plan is one which would not have
disqualified such Plan under Code Section 401(a)(9) as in effect prior to
amendment by the Deficit Reduction Act of 1984.
	 
	 	(2)	 	The distribution is in accordance with a method of distribution
designated by the Participant whose interest in the Plan is being distributed
or, if the Participant is deceased, by a beneficiary of such Participant.

- 40 -

 

	 	(3)	 	Such designation was in writing, was signed by the Participant or
the beneficiary, and was made before 1984.
	 
	 	(4)	 	The Participant had accrued a benefit under the Plan as of
December 31, 1983.
	 
	 	(5)	 	The method of distribution designated by the Participant or the
beneficiary specifies the time at which distribution will commence, the period
over which distributions will be made, and in the case of any distribution upon
the Participant’s death, the beneficiaries of the Participant listed in order of
priority.

	 	(b)	 	A distribution upon death will not be covered by this transitional rule unless
the information in the designation contains the required information described above
with respect to the distributions to be made upon the death of the Participant.
	 
	 	(c)	 	For any distribution which commences before 1984 but continues after 1983, the
Participant, or the beneficiary to whom such distribution is being made, will be
presumed to have designated the method of distribution under which the distribution is
being made if the method of distribution was specified in writing and the distribution
satisfies the requirements in subsections (a)(1) and (5).
	 
	 	(d)	 	If a designation is revoked any subsequent distribution must satisfy the
requirements of Code Section 401(a)(9) and the Regulations thereunder. If a
designation is revoked subsequent to the date distributions are required to begin, the
Plan must distribute by the end of the calendar year following the calendar year in
which the revocation occurs the total amount not yet distributed which would have been
required to have been distributed to satisfy Code Section 401(a)(9) and the Regulations
thereunder, but for the Tax Equity and Fiscal Responsibility Act Section 242(b)(2)
election. For calendar years beginning after 1988, such distributions must meet the
minimum distribution incidental benefit requirements in Regulations Section
1.401(a)(9)-2. Any changes in the designation will be considered to be a revocation of
the designation. However, the mere substitution or addition of another beneficiary
(one not named in the designation) will not be considered to be a revocation of the
designation, so long as such substitution or addition does not alter the period over
which distributions are to be made under the designation, directly or indirectly (for
example, by altering the relevant measuring life). In the case in which an amount is
transferred or rolled over from one plan to another plan, the rules in Q&A J-21 and Q&A
J-3 of Regulations Section 1.401(a)(9)-1 shall apply.

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ARTICLE VII

JOINT AND SURVIVOR ANNUITY REQUIREMENTS

7.1 Precedence Over Conflicting Provisions

The provisions of this Article shall take precedence over any conflicting provision in this Plan
and shall apply to any Participant who is credited with at least one (1) Hour of Service with the
Employer on or after August 23, 1984, and such other Participants as provided in paragraph 7.8.
The terms of any annuity contract purchased and distributed by the Plan to a Participant or Spouse
shall comply with the requirements of this Plan. Any annuity contract distributed from the Plan
must be nontransferable.

7.2 Payment Of Qualified Joint And Survivor Annuity

Unless an optional form of benefit is selected pursuant to a Qualified Election within the ninety
(90) day period ending on the date benefit payments would commence, a married Participant’s Vested
Accrued Benefit will be paid in the form of a Qualified Joint and Survivor Annuity, and an
unmarried Participant’s Vested Accrued Benefit will be paid in the form of an immediate Straight
Life Annuity, unless an optional form is elected. The Participant may elect to have such annuity
distributed upon attainment of the Earliest Retirement Age under the Plan.

7.3 Payment Of Qualified Pre-Retirement Survivor Annuity

Unless an optional form of benefit has been selected within the Election Period pursuant to a
Qualified Election, the Participant’s Surviving Spouse will receive a benefit in accordance with
paragraph (a) or (b) below as applicable.

	 	(a)	 	If a Participant dies after the Earliest Retirement Age, the Participant’s
Surviving Spouse (if any) will receive the same benefit that would be payable if the
Participant had retired with an immediate Qualified Joint and Survivor Annuity on the
day before the Participant’s date of death.
	 
	 	 	 	The Surviving Spouse may elect to commence payment under such annuity within a
reasonable period after the Participant’s death. The actuarial value of benefits
which commence later than the date on which payments would have been made to the
Surviving Spouse under a Qualified Joint and Survivor Annuity in accordance with this
provision shall be adjusted to reflect the delayed payment.
	 
	 	(b)	 	If a Participant dies on or before the Earliest Retirement Age, the
Participant’s Surviving Spouse (if any) will receive the same benefit that would be
payable if the Participant had:

	 	(1)	 	separated from Service on the date of death,
	 
	 	(2)	 	survived to the Earliest Retirement Age,
	 
	 	(3)	 	retired with an immediate Qualified Joint and Survivor Annuity at
the Earliest Retirement Age, and
	 
	 	(4)	 	died on the day after the Earliest Retirement Age.

For purposes of (b) above and subject to the provisions of paragraph 6.5 of the Plan, a Surviving
Spouse will begin to receive payments at the Earliest Retirement Age unless such Surviving Spouse
elects a later date.

Benefits commencing after the Earliest Retirement Age will be the Actuarial Equivalent of the
benefit to which the Surviving Spouse would have been entitled if benefits had commenced at the
Earliest Retirement Age under an immediate Qualified Joint and Survivor Annuity in accordance with
(b) above.

For the purposes of this paragraph 7.3, the benefit payable to the Surviving Spouse shall be
attributable to Employee contributions in the same proportion as the contribution is to the Accrued
Benefit of the Participant.

7.4 Qualified Election

An election to either waive a Qualified Joint and Survivor Annuity or a qualified pre-retirement
survivor annuity. Any such election shall not be effective unless:

	 	(a)	 	the Participant’s Spouse consents in writing to the election;

- 42 -

 

	 	(b)	 	the election designates a specific beneficiary, including any class of
beneficiaries or any contingent beneficiaries, which may not be changed without spousal
consent (or the Spouse expressly permits designations by the Participant without any
further spousal consent);
	 
	 	(c)	 	the Spouse’s consent acknowledges the effect of the election; and
	 
	 	(d)	 	the Spouse’s consent is witnessed by a Plan representative or notary public.

Additionally, a Participant’s waiver of the Qualified Joint and Survivor Annuity shall not be
effective unless the election designates a form of benefit payment which may not be changed without
spousal consent (or the Spouse expressly permits designations by the Participant without any
further spousal consent). If it is established to the satisfaction of the Plan Administrator that
there is no Spouse or that the Spouse cannot be located, a waiver will be deemed a Qualified
Election. Any consent by a Spouse obtained under this provision (or establishment that the consent
of a Spouse may not be obtained) shall be effective only with respect to such Spouse. A consent
that permits designations by the Participant without any requirement of further consent by such
Spouse must acknowledge that the Spouse has the right to limit consent to a specific beneficiary,
and a specific form of benefit where applicable, and that the Spouse voluntarily elects to
relinquish either or both of such rights. A revocation of a prior waiver may be made by a
Participant without the consent of the Spouse at any time before the commencement of benefits. The
number of revocations shall not be limited. No consent obtained under this provision shall be
valid unless the Participant has received notice as provided in paragraphs 7.5 and 7.6 below.

A special election to waive the qualified pre-retirement survivor annuity is available to a
Participant who will not yet attain age thirty-five (35) as of the end of any current Plan Year.
This election will be valid for the period beginning on the date of such election and ending on the
first day of the Plan Year in which the Participant will attain age thirty-five (35). Such
election will not be valid unless the Participant receives a written explanation of the qualified
pre-retirement survivor annuity as provided in paragraphs 7.5 and 7.6 below. Qualified
pre-retirement survivor annuity coverage will be automatically reinstated as of the first day of
the Plan Year in which the Participant attains age thirty-five (35). Any new waiver on or after
such date shall be subject to the full requirements of Article.

7.5 Notice Requirements For Qualified Joint And Survivor Annuity

The Plan Administrator shall provide each Participant, no less than thirty (30) days and no more
than ninety (90) days prior to the Annuity Starting Date, a written explanation of:

	 	(a)	 	the terms and conditions of a Qualified Joint and Survivor Annuity;
	 
	 	(b)	 	the Participant’s right to make and the effect of an election to waive the
Qualified Joint and Survivor Annuity form of benefit;
	 
	 	(c)	 	the rights of a Participant’s Spouse;
	 
	 	(d)	 	the right to make, and the effect of, a revocation of a previous election to
waive the Qualified Joint and Survivor Annuity; and
	 
	 	(e)	 	the relative values of the various optional forms of benefits under the Plan.

The Participant and the Participant’s Spouse may consent to waiving the minimum thirty (30) day
notice period described above and may receive notice no less than seven (7) days prior to the
Annuity Starting Date, provided that:

	 	(f)	 	the Participant has been provided with information that clearly indicates that
the Participant has at least thirty (30) days to consider whether to waive the
Qualified Joint and Survivor Annuity and has affirmatively elected (with spousal
consent) to a form of distribution other than a Qualified Joint and Survivor Annuity;
	 
	 	(g)	 	the Participant is permitted to revoke any affirmative distribution election at
least until the Annuity Starting Date or, if later, at any time prior to the expiration
of the seven (7) day period that begins the day after the explanation of the Qualified Joint and Survivor Annuity is provided
to the Participant; and
	 
	 	(h)	 	the Annuity Starting Date is a date after the date that the written explanation
was provided to the Participant.

- 43 -

 

7.6 Notice Requirements For Qualified Pre-Retirement Survivor Annuity

The Plan Administrator shall provide each Participant a written explanation of the qualified
pre-retirement survivor annuity in such terms and in such manner as would be comparable to the
explanation provided for meeting the requirements of paragraph 7.5 applicable to a Qualified Joint
and Survivor Annuity. Such explanation shall be provided within the applicable period ending on
the later of:

	 	(a)	 	the period beginning with the first day of the Plan Year in which the
Participant attains age thirty-two (32) and ending with the close of the Plan Year
preceding the Plan Year in which the Participant attains age thirty-five (35);
	 
	 	(b)	 	a reasonable period ending after the individual becomes a Participant;
	 
	 	(c)	 	a reasonable period ending after this paragraph ceases to apply to the Participant;
	 
	 	(d)	 	a reasonable period ending after this Article first applies to the Participant.
Notwithstanding the foregoing, notice must be provided within a reasonable period
ending after separation from Service in the case of a Participant who separates from
Service before attaining age thirty-five (35).

For purposes of applying the preceding paragraph, a reasonable period ending after the enumerated
events described in (b), (c) and (d) is the end of the two (2) year period beginning one (1) year
prior to the date the applicable event occurs, and ending one (1) year after that date. In the
case of a Participant who separates from Service before the Plan Year in which age thirty-five (35)
is attained, notice shall be provided within the two (2) year period beginning one (1) year prior
to separation and ending one (1) year after separation. If such a Participant thereafter returns
to employment with the Employer, the applicable period for such Participant shall be redetermined.

7.7 No Notices For Fully Subsidized Plans

The respective notices prescribed by paragraphs 7.5 and 7.6 need not be given to a Participant if
the Plan “fully subsidizes” the costs of a Qualified Joint and Survivor Annuity or qualified
pre-retirement survivor annuity and the Participant cannot elect another form of benefit or in the
case of a married Participant designate a non-spouse beneficiary. For purposes of this paragraph,
a Plan fully subsidizes the costs of a benefit if under the Plan no increase in cost or decrease in
benefits to the Participant may result from the Participant’s failure to elect another benefit.
Prior to the time the Plan allows the Participant to waive the qualified pre-retirement survivor
annuity, the Plan may not charge the Participant for the cost of such benefit by reducing the
Participant’s benefits under the Plan or by any other method.

7.8 Transitional Joint And Survivor Annuity Rules

Special transition rules apply to Participants who are not receiving benefits on August 23, 1984.

	 	(a)	 	Any living Participant not receiving benefits on August 23, 1984, who would
otherwise not receive the benefits prescribed by the previous paragraphs of this
Article, must be given the opportunity to elect to have the prior paragraphs of this
Article apply if such Participant is credited with at least one (1) Hour of Service
under this Plan or a predecessor Plan in a Plan Year beginning on or after January 1,
1976 and such Participant had at least ten (10) Years of Service for vesting purposes
when he or she separated from Service.
	 
	 	(b)	 	Any living Participant not receiving benefits on August 23, 1984, who was
credited with at least one (1) Hour of Service under this Plan or a predecessor Plan on
or after September 2, 1974, and who is not otherwise credited with any Service in a
Plan Year beginning on or after January 1, 1976, must be given the opportunity to have
his or her benefits paid in accordance with paragraph 7.9.
	 
	 	(c)	 	The respective opportunities to elect [as described in (a) and (b) above] must
be afforded to the appropriate Participants during the period commencing on August 23,
1984 and ending on the date benefits would otherwise commence to said Participants.

7.9 Automatic Joint And Survivor Annuity And Early Survivor Annuity

Any Participant who has elected pursuant to paragraph 7.8(b), and any Participant who does not
elect under paragraph 7.8(a) or who meets the requirements of paragraph 7.8(a), except that such
Participant does not have at least ten (10) years of vesting Service when he or she separates from
Service, shall have his or her benefits distributed in accordance with all of the following
requirements if benefits would have been payable in the form of a Straight Life Annuity.

- 44 -

 

	 	(a)	 	Automatic Joint and Survivor Annuity. If benefits in the form of a Straight
Life Annuity become payable to a married Participant who:

	 	(1)	 	begins to receive payments under the Plan on or after Normal
Retirement Age; or
	 
	 	(2)	 	dies on or after Normal Retirement Age while still working for
the Employer; or
	 
	 	(3)	 	begins to receive payments on or after the Qualified Early
Retirement Age; or
	 
	 	(4)	 	separates from Service on or after attaining Normal Retirement
(or the Qualified Early Retirement Age) and after satisfying the eligibility
requirements for the payment of benefits under the Plan and thereafter dies
before beginning to receive such benefits,

	 	 	 	then such benefits will be received under this Plan in the form of a Qualified Joint
and Survivor Annuity, unless the Participant has elected otherwise during the
Election Period. The Election Period must begin at least six (6) months before the
Participant attains Qualified Early Retirement Age and end not more than ninety (90)
days before the commencement of benefits. Any election hereunder will be in writing
and may be changed by the Participant at any time.
	 
	 	(b)	 	Election of Early Survivor Annuity. A Participant who is employed after
attaining the Qualified Early Retirement Age will be given the opportunity to elect,
during the Election Period, to have a survivor annuity payable on death. If the
Participant elects the survivor annuity, payments under such annuity must not be less
than the payments which would have been made to the Spouse under the Qualified Joint
and Survivor Annuity if the Participant had retired on the day before his or her death.
Any election under this provision will be in writing and may be changed by the
Participant at any time. The Election Period begins on the later of:

	 	(1)	 	the 90th day before the Participant attains the Qualified Early
Retirement Age, or
	 
	 	(2)	 	the date on which participation begins,

	 	 	 	and ends on the date the Participant terminates employment.

7.10 Annuity Contracts

Any annuity contract distributed under this Plan must be nontransferable. The terms of any annuity
contract purchased and distributed by the Plan to a Participant or Spouse shall comply with the
requirements of this Plan.

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ARTICLE VIII

VESTING

8.1 Employer Paid Benefits

A Participant shall acquire a vested and nonforfeitable interest in his or her Accrued Benefit
attributable to Employer contributions in accordance with the table selected in Section IX(B) of
the Adoption Agreement, provided that if a Participant is not already fully vested, he or she shall
become so upon attaining Normal Retirement Age, attaining Early Retirement Age if such age is
specified in Section X(A) of the Adoption Agreement, on retirement due to Disability if Disability
benefits are provided for in Section X(B) of the Adoption Agreement, or on termination of the Plan.

8.2 Computation Period

The computation period for purposes of determining Years of Service and Breaks in Service for
purposes of computing a Participant’s nonforfeitable right to his or her Accrued Benefit derived
from Employer contributions shall be determined by the Employer in Section IX(A) of the Adoption
Agreement. In the event a former Participant with no vested interest in his or her Accrued Benefit
from Employer contributions requalifies for participation in the Plan after incurring a Break in
Service, such Participant shall be credited for vesting with all pre-break and post-break Service.

8.3 Requalification After A Break In Service

If a former Participant becomes qualified for membership hereunder after a Break in Service, such
Participant shall receive full credit for each year of prior Service in determining such
Participant’s total Years of Service for purposes of vesting and benefit accruals. However, no
Participant shall be entitled to receive a benefit by application of this paragraph which would
exceed the benefit such Participant would have received had employment been continuous.

8.4 Calculating Vested Interest

A Participant’s vested and nonforfeitable benefit shall be calculated by multiplying his or her
Accrued Benefit attributable to Employer contributions determined as of his or her termination date
by the decimal equivalent of the vested percentage determined as of the same date.

8.5 Commencement Of Benefits

The vested and nonforfeitable benefit payable to a terminated Participant shall commence to be paid
on the earlier of the date on which the Participant attains his or her Early Retirement Date
(provided that such Participant has completed the Service requirement for Early Retirement as of
his or her termination date) or on his or her Normal Retirement Age. If such benefit is payable on
Early Retirement, such benefit shall be the Actuarial Equivalent of the benefit payable at Normal
Retirement Age. Notwithstanding the foregoing, the Employer may as part of its established
administrative policies, in accordance with paragraph 5.7 and Section XVII of the Adoption
Agreement, pay such Participant’s Vested Accrued Benefit in a lump sum provided that the Present
Value of such benefit is less than $5,000. The Employer may also as provided in paragraphs 5.7 and
6.5 and Section XVII of the Adoption Agreement pay out amounts in excess of $5,000, provided the
Participant so requests and the Spouse, if any, consents. If a terminated Participant who has
received a lump sum payment under this paragraph is re-employed and qualifies for participation in
the Plan, the Employer shall disregard the Participant’s prior Service for purposes of future
benefit accruals unless the Participant has repaid the distribution in accordance with the
provisions of paragraph 5.7. The prior Service will be considered for purposes of vesting with
respect to future benefit accruals, regardless of whether there has been a repayment.

8.6 Forfeitures

Any Accrued Benefit of a Participant who has separated from Service to which he or she is not
entitled under the foregoing provisions, shall be forfeited. Such forfeiture shall take place in
the Plan Year which follows the date the Participant is paid out, or if earlier when the
Participant has incurred five (5) consecutive one (1) year Breaks in Service. Any forfeiture of
benefits shall be used to reduce the Employer’s contribution.

8.7 Unclaimed Benefits

In the event that Participants or beneficiaries cannot be located, the following actions will be
taken:

	 	(a)	 	The Plan Administrator shall notify Participants or beneficiaries by certified
or registered mail to his or her last known address of record with the Employer when
their benefits become distributable. If a Participant does not respond to the notice
within ninety (90) days of the date of the notice, the Plan Administrator may take
reasonable steps to locate the Participant including, but not limited to, requesting
assistance from the Employer, Employees, Social Security Administration, the Pension
Benefit Guaranty Corporation, and/or the Internal Revenue Service.

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	 	(b)	 	If the Participant cannot be located after a period of twelve (12) months, or
such other period determined in a uniform and nondiscriminatory manner by the Plan
Administrator, the Plan Administrator shall treat the benefit as a forfeiture pursuant
to paragraph 8.6.
	 
	 	(c)	 	If a Participant or Beneficiary later makes a claim for such benefit, the Plan
Administrator shall validate such claim and provide the Participant or beneficiary with
all notices and other information necessary for the Participant or beneficiary to
perfect the claim. If the Plan Administrator validates the claim for benefits, the
Participant’s account balance shall be restored to the benefit amount treated as
forfeiture. The funds necessary to restore the Participant’s account will first be
taken from amounts eligible for reallocation or other disposition as forfeitures with
respect to the Plan Year. If such funds do not exist or if such funds are
insufficient, the Employer will make a contribution prior to the date on which the
benefit is payable to restore such Participant’s account. Such benefit shall be paid
or commence to be paid in the same manner as if the benefit was eligible for
distribution on the date the claim for benefit is validated.
	 
	 	(d)	 	The Plan Administrator shall follow the same procedure in locating and
subsequently treating as a forfeiture the benefit of a Participant whose benefit has
been properly paid under Plan terms but where the Participant or Beneficiary has not
negotiated the benefit check(s).
	 
	 	(e)	 	The Plan Administrator may use any reasonable procedure to dispose of
distributable Plan assets including but not limited to any of the following: (i)
establishing an IRA in the name of the Participant or Beneficiary with any institution,
(ii) purchasing an annuity contract in the name of the Participant or Beneficiary with
the assets attributable to them in the Trust, or (iii) establishing a bank account for
and in the name of the Participant or Beneficiary. This provision will only be
operative when the Plan is terminated.
	 
	 	(f)	 	Notwithstanding the foregoing, the Plan Administrator in his discretion may
establish alternative procedures for locating and administering the benefits of missing
Plan Participants.

8.8 Amendment Of Vesting Schedule

No amendment of the vesting schedule in the Adoption Agreement shall directly or indirectly deprive
a Participant of his or her nonforfeitable rights to benefits accrued to the date of the amendment.
Further, if the vesting schedule of the Plan is amended, or the Plan is amended in any way that
directly or indirectly affects the computation of any Participant’s nonforfeitable benefit,
(including a change to or from a Top-Heavy vesting schedule), each Participant with at least three
(3) Years of Service with the Employer may elect, within a reasonable period after the adoption of
the amendment, to have his or her nonforfeitable benefit computed under the Plan without regard to
such amendment. For Participants who do not have at least one (1) Hour of Service in any Plan Year
beginning after 1988, the preceding sentence shall be applied by substituting “five (5) Years of
Service” for “three (3) Years of Service” where such language appears. The period during which the
election may be made shall commence with the date the amendment is adopted and shall end on the
later of:

	 	(a)	 	sixty (60) days after the amendment is adopted;
	 
	 	(b)	 	sixty (60) days after the amendment becomes effective; or
	 
	 	(c)	 	sixty (60) days after the Participant is issued written notice of the amendment
by the Employer or the Trustee.

8.9 Amendments Affecting Vested And/Or Accrued Benefits

No amendment to the Plan (including a change in the actuarial basis for determining optional or
Early Retirement benefits) shall be effective to the extent that it has the effect of decreasing a
Participant’s Accrued Benefit. Notwithstanding the preceding sentence, a Participant’s Accrued Benefit may be reduced to the
extent permitted under Code Section 412(c)(8). For purposes of this paragraph, a Plan amendment
which has the effect of (a) eliminating or reducing an Early Retirement benefit or a
retirement-type subsidy, or (b) eliminating an optional form of benefit, with respect to benefits
attributable to Service before the amendment, shall be treated as reducing Accrued Benefits. In
the case of a retirement-type subsidy, the preceding sentence shall apply only with respect to a
Participant who satisfies (either before or after the amendment) the pre-amendment conditions for
the subsidy. In general, a retirement-type subsidy is a subsidy that continues after retirement,
but does not include a qualified disability benefit, a medical benefit, a social security
supplement, or a death benefit (including life insurance). Furthermore, if the vesting schedule of
a 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

- 47 -

 

Employer-derived Accrued Benefit will not be less than the
percentage computed under the Plan without regard to such amendment.

8.10 Service With Controlled Groups

All Years of Service with other members of a controlled group of corporations [as defined in Code
Section 414(b)], trades or businesses under common control [as defined in Code Section 414(c)], or
members of an affiliated service group [as defined in Code Section 414(m)] shall be considered for
purposes of determining a Participant’s nonforfeitable benefit.

8.11 Compliance With Uniformed Service Employment And Reemployment Rights Act Of 1994

Notwithstanding any provision of this Plan to the contrary, Years of vesting Service will be
credited to Participants with respect to periods of qualified military service as provided in Code
Section 414(u).

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ARTICLE IX

LIMITATIONS ON BENEFITS

9.1 Participation In This Plan

This Article applies regardless of whether any Participant is or has ever been a participant in
another qualified plan maintained by the adopting Employer. For Limitation Years beginning before
January 1, 2000, if any Participant is or has ever been a participant in another qualified plan
maintained by the Employer or a Welfare Benefit Fund, as defined in paragraph 1.104, under which
amounts attributable to post-retirement medical benefits are allocated to separate accounts of Key
Employees, or an individual medical account as defined at Code Section 415(l)(2), or a Simplified
Employee Pension Plan which provides an Annual Addition as defined in paragraph 1.5, paragraph 9.2
is also applicable to that Participant’s benefits.

	 	(a)	 	The Annual Benefit otherwise payable to a Participant at any time will not
exceed the Maximum Permissible Amount as defined at paragraph 1.54. The limitations of
this paragraph may be applied to the Participant’s Projected Benefit, Accrued Benefit
or the actual benefit payable after converting to the desired optional form of benefit.
If the benefit the Participant would otherwise accrue in a Limitation Year would
produce an Annual Benefit in excess of the Maximum Permissible Amount, the benefit must
be limited (or the rate of accrual reduced) so that the Annual Benefit will equal the
Maximum Permissible Amount.
	 
	 	(b)	 	If a Participant makes Voluntary Contributions, or mandatory employee
contributions as defined Code Section 411(c)(2)(C), under the terms of this Plan, the
amount of such contributions is treated as an Annual Addition to a qualified Defined
Contribution Plan, for purposes of paragraphs 9.1(a) and 9.2(b) of this Article.

9.2 Participation In This Plan And Another Employer Plan

For Limitation Years beginning before January 1, 2000, this paragraph applies if any Participant is
covered, or has ever been covered, by another plan maintained by the Employer including a qualified
plan or a Welfare Benefit Fund as defined in paragraph 1.104, under which amounts attributable to
post-retirement medical benefits are allocated to separate accounts of Key Employees, an individual
medical account as defined in Code Section 415(l)(2), or a Simplified Employee Pension Plan which
provides an Annual Addition as defined in paragraph 1.5.

	 	(a)	 	If a Participant is or has ever been covered under more than one Defined
Benefit Plan maintained by the Employer, the sum of the Participant’s Annual Benefits
from all such plans may not exceed the Maximum Permissible Amount. Unless specified
otherwise in the Adoption Agreement, it is assumed that this Plan is the only Plan
accruing benefits on behalf of any Participant and that any reductions in accruals to
satisfy Code Section 415(b) will be made to this Plan. Alternatively, the Employer
will choose in Section VIII of the Adoption Agreement the method by which the combined
plans will meet this limitation.
	 
	 	(b)	 	For Limitation Years beginning before January 1, 2000, if the Employer
maintains or at any time maintained one or more qualified Defined Contribution Plans
covering any Participant in this Plan, a Welfare Benefit Fund as defined in paragraph
1.104, under which amounts attributable to post-retirement medical benefits are
allocated to separate accounts of Key Employees, an individual medical account plan as
defined in Code Section 415(l)(2), or a Simplified Employee Pension Plan the sum of the
Participant’s Defined Contribution Fraction and Defined Benefit Fraction will not
exceed 1.0 in any Limitation Year, and the Annual Benefit otherwise payable to the
Participant under this Plan will be limited in accordance with Section VIII of the
Adoption Agreement.
	 
	 	 	 	Unless, a different group of Employees is elected in the Adoption Agreement, benefit
increases resulting from the repeal of Code Section 415(e) will be provided to all
current and former Participants [with benefits limited by Code Section 415(e)] who
have an Accrued benefit under the Plan immediately before the first day of the first
Limitation Year beginning in 2000.
	 
	 	(c)	 	In the case of an individual who was a Participant in one or more Defined
Benefit Plans of the Employer as of the first day of the first Limitation Year
beginning after December 31, 1986, the application of the limitations of this Article
shall not cause the Maximum Permissible Amount for such individual under all such
Defined Benefit Plans to be less than the individual’s TRA ’86

- 49 -

 

	 	 	 	Accrued Benefit. The
preceding sentence applies only if all such Defined Benefit Plans meet the requirements
of Code Section 415 for all Limitation Years beginning before January 1, 1987.
	 
	 	(d)	 	In the case of an individual who was a Participant in one or more Defined
Benefit Plans of the Employer as of the first day of the first Limitation Year
beginning after December 31, 1994, the application of the limitations of this Article
shall not cause the Maximum Permissible Amount for such individual under all such
Defined Benefit Plans to be less than the individual’s Retirement Protection Act of
1994 (RPA ‘94) Old Law Benefit. The preceding sentence applies only if such Defined
Benefit Plans met the requirements of Code Section 415 on December 7, 1994.

9.3 Limitations On Benefits

In any Plan Year in which the Top-Heavy Ratio exceeds 90% (i.e., the Plan becomes Super Top-Heavy),
the denominators of the Defined Benefit Fraction (as defined in paragraph 1.20) and Defined
Contribution Fraction (as defined in paragraph 1.22) shall be computed using 100% of the dollar
limitation instead of 125%. In this case, additional Top-Heavy minimum benefits may not be
provided.

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ARTICLE X

ADMINISTRATION

10.1 Plan Administrator

Unless otherwise provided in a separate Trust agreement, the Plan shall be administered by the Plan
Administrator who shall have the authority to enforce the Plan on behalf of any persons having or
claiming any interest under the Plan and who shall be responsible for the operation of the Plan in
accordance with its terms. The Plan Administrator shall be the “named fiduciary” for purposes of
ERISA Section 402(a)(2) with the sole authority to control and manage the operation and
administration of the Plan, and will be responsible for complying with the reporting and disclosure
requirements of Part 1 of Subtitle B of Title I of ERISA and agent for service of legal process
with respect to the Plan. The Plan Administrator shall determine by rules of uniform application
all questions arising out of the administration, interpretation and application of the Plan which
determination(s) shall be conclusive and binding on all parties. The Employer shall be named
fiduciary and Plan Administrator except to the extent the Employer is a member of SBERA or unless
an individual or other entity (excluding the Trustee or Custodian, unless they are the Employer
sponsoring the Plan) is named to serve in such capacity. The Plan Administrator may appoint or
allocate the duties of the Plan Administrator among several individuals or entities. The Plan
Administrator’s duties shall include:

	 	(a)	 	appointing the Plan’s attorney, accountant, Service Provider, actuary, Trustee,
Custodian, investment manager, or any other party needed to administer the Plan;
	 
	 	(b)	 	directing the appropriate party with respect to payments from the Trust;
	 
	 	(c)	 	communicating with Employees regarding their participation and benefits under
the Plan, including the administration of all claims procedures;
	 
	 	(d)	 	maintaining all necessary records for the administration of the Plan,
antidiscrimination testing, and filing any returns and reports with the Internal
Revenue Service, Department of Labor, or any other governmental agency;
	 
	 	(e)	 	reviewing and approving any financial reports, investment reviews, or other
reports prepared by any party appointed by the Employer under paragraph (a);
	 
	 	(f)	 	establishing a funding policy and investment objectives consistent with the
purposes of the Plan and ERISA;
	 
	 	(g)	 	construing and resolving any question of Plan interpretation and questions of
fact. The Plan Administrator’s interpretation of Plan provisions and resolution of
questions of facts including eligibility and amount of benefits under the Plan is final
and unless it can be shown to be arbitrary and capricious, will not be subject to
“de novo” review;
	 
	 	(h)	 	monitoring the activities of the Trustee and the performance of, and making
changes when necessary to, the portfolio of the Plan;
	 
	 	(i)	 	obtaining a legal determination of the qualified status of all domestic
relations orders and complying with the requirements of the law with regard thereto;
	 
	 	(j)	 	administering the loan program including ensuring that any and all loans made
by the Plan are in compliance with the requirements of the Internal Revenue Code and
the Regulations issued thereunder, and the Regulations issued by the Department of
Labor;
	 
	 	(k)	 	determining from the records of the Employer, the Compensation, Service,
records, status, and the other facts regarding Participants and Employees;
	 
	 	(l)	 	to the extent provided in the Adoption Agreement, directing the Trustee or
Custodian with respect to the investments, in the Plan Administrator’s capacity as
named fiduciary; and
	 
	 	(m)	 	the right to employ others, including legal counsel who may, but need not, be
counsel to the Employer, to render advice regarding any questions which may arise with
respect to its rights, duties and responsibilities under the Plan, and may rely upon
the opinions or certificates of any such person.

- 51 -

 

10.2 Persons Serving As Plan Administrator

Unless otherwise provided in a separate Trust agreement, if the Employer is no longer in existence,
and the Plan or the Employer does not specify the person to take an action or otherwise serve in
the place of the Employer in connection with the operation of the Plan, the Plan Administrator
shall so act or serve, but if there is no person serving as Plan Administrator, then a successor
shall be designated in writing by a majority of Participants whose accounts under the Plan have not
yet been fully distributed at such time. A majority of the legally competent Beneficiaries of a
deceased Participant then entitled to receive benefits may exercise the deceased Participant’s
rights to participate in that designation and shall be considered for that purpose to be one
Participant, in the Participant’s place.

10.3 Action By Employer

Action by the Employer under the Plan shall be carried out by the sole proprietor, if the Employer
is a sole proprietorship, by a general partner of the Employer, if the Employer is a partnership,
or by the board of directors or a duly authorized officer of the Employer, if the Employer is a
corporation. If the Employer is no longer in existence, and the Plan does not specify the person
to take an action, or otherwise serve in the place of the Employer, in connection with the
operation of the Plan, the Plan Administrator shall so act or serve, but if there is no person
serving as Plan Administrator, such action shall be taken by a person selected following the
approach referred to in paragraph 10.2. The Trustee/Custodian shall have, and assume, no
responsibility for inquiring into the authority of any person purporting to act on behalf of an
Employer.

10.4 Responsibilities Of The Parties

Unless otherwise provided in a separate Trust agreement:

	 	(a)	 	The Employer and the Plan Administrator shall cooperate with each other in all
respects, including the provision to each other of records and other information
relating to the Plan, as may be necessary or appropriate for the proper operation of
the Plan or as may be required under the Code or ERISA.
	 
	 	(b)	 	The Plan Administrator may delegate in writing all or any part of the Plan
Administrator’s responsibilities under the Plan to agents or others by written
agreement communicated to the delegate and to the Employer or, if the Employer is no
longer in existence, to such person or persons selected following the approach in
paragraph 10.2 and, in the same manner, may revoke any such delegation of
responsibility. Any action of a delegate in the exercise of such delegated
responsibilities shall have the same force and effect for all purposes as if such
action had been taken by the Plan Administrator. The delegate shall have the right, in
such person’s sole discretion, by written instrument delivered to the Plan
Administrator, to reject and refuse to exercise any such delegated authority. The
Trustee/Custodian need not act on instructions of such a delegate despite any knowledge
of such delegation, but may require the Plan Administrator to give the
Trustee/Custodian all instructions necessary under the Plan.

10.5 Allocation Of Investment Responsibility

Unless otherwise provided in a separate Trust agreement, responsibility with respect to the
investment of the Trust shall as elected in the Adoption Agreement. The amounts allocated to
Participants’ accounts shall be invested by the Trustee or Custodian pursuant to the elections in
the Adoption Agreement, Articles X and XI as applicable, and in accordance with investment
directions from authorized parties as provided hereunder.

10.6 Appointment Of Investment Manager

Unless otherwise provided in a separate Trust agreement, the appointment of an investment manager
shall be made in accordance with this Article. If an investment manager is appointed, such entity
or individual must be registered as an investment manager under the Investment Advisors Act of 1940
or under applicable state law, meet the requirements of ERISA Section 3(38) or be a bank as defined
in said Act or an insurance company qualified under the laws of more than one state to perform
investment management services. An investment manager shall acknowledge in writing its appointment
and fiduciary status hereunder and shall agree to comply with all applicable provisions of this
document. The investment manager shall have the investment powers granted the Trustee in paragraph
11.8 except to the extent the investment manager’s powers are limited by the investment management
agreement. A copy of the investment management agreement (and any modifications or termination
thereof) must be provided to the Trustee or Custodian. Written notice of each appointment of an
investment manager shall be given to the Trustee or Custodian in advance of the effective date of
the appointment. Such notice or agreement shall specify what portion of the Trust Fund will be
subject to the investment manager’s discretion.

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10.7 Participant Loans

Unless otherwise provided in a separate Trust agreement, if permitted by the Employer in the
Adoption Agreement, a Plan Participant and Beneficiaries who are parties-in-interest as defined in
ERISA Section 3(14) may make application to the Plan Administrator requesting a loan from the Plan.
The Plan Administrator shall have the sole right to approve or deny a Participant’s application
provided that loans shall be made available to all Participants on a reasonably equivalent basis.
Loans shall not be made available to Highly Compensated Employees in an amount greater than the
amount made available to other Participants. Any loan granted under the Plan shall be made in
accordance with the terms of a written loan policy adopted by the Employer which is hereby
incorporated by reference and made a part of this Basic Plan Document #02. The loan policy may be
amended in writing from time to time without the necessity of amending this paragraph and shall be
subject to the following rules to the extent such rules are not inconsistent with such loan policy
and do not violate the provisions of Code Sections 72(p) and 4975.

	 	(a)	 	No loan, when aggregated with any outstanding loan(s) to the Participant, shall
exceed the lesser of (i) $50,000 reduced by the excess, if any, of the Participant’s
highest outstanding balance of all loans on any day during the one (1) year period
ending on the day before the loan is made, over the outstanding balance of loans from
the Plan on the date the Participant’s loan is made or (ii) one-half of the Present
Value of the Participant’s Vested Accrued Benefit consisting of contributions as
specified in the loan policy. An election may be made in the loan policy, that if the
Participant’s Vested Accrued Benefit is $20,000 or less, the maximum loan shall not
exceed the lesser of $10,000 or 100% of the Participant’s Vested Accrued Benefit. For
the purpose of the above limitation, all loans from all plans of the Employer and other
members of a group of employers described in Code Sections 414(b), 414(c), and 414(m)
are aggregated. An assignment or pledge of any portion of the Participant’s interest
in the Plan and a loan, pledge, or assignment with respect to any insurance contract
purchased under the Plan, will be treated as a loan under this paragraph.
	 
	 	(b)	 	All applications must be in accordance with procedures adopted by the Plan
Administrator.
	 
	 	(c)	 	Any loan shall bear interest at a rate reasonable at the time of application,
considering the purpose of the loan and the rate being charged by representative
commercial banks in the local area for a similar loan unless the Plan Administrator
sets forth a different method for determining loan interest rates in its written loan
procedures. The loan agreement shall also provide that the payment of principal and
interest be amortized in level payments not less frequently than quarterly.
	 
	 	(d)	 	The term of such loan shall not exceed a period of five (5) years except in the
case of a loan for the purpose of acquiring any house, apartment, condominium, or
mobile home that is used or is to be used within a reasonable time as the principal
residence of the Participant. The Plan Administrator in accordance with the Plan’s
loan policy shall determine the term of such loan.
	 
	 	(e)	 	The principal and interest paid by a Participant on his or her loan shall be
credited to the Plan in the same manner as for any other Plan investment. Unless
otherwise provided in the loan policy, loans will be treated as segregated investments
of the individual Participant on whose behalf the loan was made. This provision is not
available if its election will result in discrimination in the operation of the Plan.
	 
	 	(f)	 	If the Plan Administrator approves a Participant’s loan request, it shall be
evidenced by a note, loan agreement, and assignment of up to 50% of his or her interest
in the Trust as collateral for the loan. The Participant must obtain the consent of
his or her Spouse, if any, within the ninety (90) day period before the time his or her
accrued benefit is used as security for the loan. A new consent is required if the
accrued benefit is used for any renegotiation, extension, renewal or other revision of
the loan, including an increase in the loan amount. The consent must be written, must
acknowledge the effect of the loan, and must be witnessed by a Plan representative or
notary public. Such consent shall subsequently be binding with respect to the
consenting Spouse or any subsequent Spouse.
	 
	 	(g)	 	If a valid Spousal consent has been obtained in accordance with (f), then,
notwithstanding any other provision of this Plan, the portion of the Participant’s
Vested Accrued Benefit used as a security interest held by the Plan by reason of a loan
outstanding to the Participant shall be taken into account for purposes of determining
the amount of the accrued benefit payable at the time of death or distribution, but
only if the reduction is used as repayment of the loan. If less than 100% of the
Participant’s Vested Accrued Benefit (determined without regard to the preceding
sentence) is

- 53 -

 

	 	 	 	payable to the surviving Spouse, then the accrued benefit shall be adjusted by first reducing
the Vested Accrued Benefit by the amount of the security used as repayment of the
loan, and then determining the benefit payable to the surviving Spouse.
	 
	 	(h)	 	Any loan made hereunder shall be subject to the provisions of a loan agreement,
promissory note, security agreement, payroll withholding authorization and, if
applicable, financial disclosure. Such documentation may contain additional loan terms
and conditions not specifically itemized in this section provided that such terms and
conditions do not conflict with this section. Such additional terms and conditions may
include, but are not limited to, procedures regarding default, a grace period for
missed payments, and acceleration of a loan’s maturity date on specific events such as
termination of employment.
	 
	 	(i)	 	No loans will be made to Owner-Employees or Shareholder Employees.
	 
	 	(j)	 	Liquidation of a Participant’s assets for the purpose of the loan will be
allocated on a pro-rata basis across all the investment alternatives in a Participant’s
account, unless otherwise specified by the Participant, Plan Administrator, or the
Plan’s loan policy.
	 
	 	(k)	 	If a request for a loan is approved by the Plan Administrator, funds shall be
withdrawn from the recordkeeping subaccounts specified by the Participant or in the
absence of such a specification, from the recordkeeping subaccounts in the order
specified in the loan policy.
	 
	 	(l)	 	If a Plan permits loans to Participants, the Trustee/Custodian may appoint the
Employer as its agent, and if the Employer accepts such appointment, agree to hold all
notes and other evidence of any loans made to Participants. If provided in the loan
policy, the Plan Administrator may also require additional collateral in order to
adequately secure the loan. The Employer shall hold such notes and evidence under such
conditions of safekeeping as is prudent and as required by ERISA. The
Trustee/Custodian may account for all loans in the aggregate so that all Participant
loans will be shown collectively as a single asset of the Plan.
	 
	 	(m)	 	Unless otherwise elected in the Adoption Agreement, loan payments will be
suspended under this Plan as permitted under Code Section 414(u).

10.8 Insurance Policies

If permitted by the Employer in the Adoption Agreement, the Employer may direct the Trustee to
purchase life insurance policies for Participants under the Plan. Any insurance policies so
purchased shall be held subject to the following rules:

	 	(a)	 	The face amount of any policy purchased hereunder shall be determined by the
Employer on a uniform basis for all Participants but shall not exceed 100 times the
projected Basic Normal Retirement Benefit expressed as a monthly amount.
Alternatively, if insurance is purchased based on the Theoretical ILP Reserve, the
amount of insurance purchased may not exceed sixty-six percent (66%) of the Theoretical
Contribution for whole life and thirty-three percent (33%) for term and/or universal
life. Additional policies shall be purchased as of the first day of any Plan Year with
respect to benefit increases in order to maintain the proper ratio between the death
benefit and the Basic Normal Retirement Benefit. However, no new policy shall be
issued unless the Basic Normal Retirement Benefit expressed as a monthly amount
increases by $10 or more.
	 
	 	(b)	 	The Trustee shall be applicant and owner of any policies issued hereunder.
	 
	 	(c)	 	All policies or contracts purchased hereunder shall be endorsed as
nontransferable, and must provide that proceeds will be payable to the Trustee;
however, the Trustee shall be required to pay over the appropriate portion of the
proceeds of the contracts to the Participant’s Designated Beneficiary in accordance
with the distribution provisions of this Plan.
	 
	 	(d)	 	Each Participant shall be entitled to designate a beneficiary under the terms
of any contract issued; however, such designation will be given to the Trustee which
must be the named beneficiary on any policy. Such designation shall remain in force
until revoked by the Participant by filing a new beneficiary form with the Trustee. A
Participant’s Spouse will be the Designated Beneficiary of the proceeds in all
circumstances unless a Qualified Election has been made in accordance with

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	 	 	 	paragraph 7.4. On death, the beneficiary of a deceased Participant shall receive the benefit
provided in Section X of the Adoption Agreement.
	 
	 	(e)	 	The beneficiary of a Participant who is uninsurable shall be entitled to
receive the Actuarial Equivalent of the Participant’s Accrued Benefit in the event of
the Participant’s death.
	 
	 	(f)	 	Any payments by the insurer on account of credits, such as dividends,
experience rating credits, or surrender or cancellation credits, shall be applied
within the taxable year of the Employer in which received or within the next succeeding
taxable year toward the next premiums due before any further Employer contributions are
so applied.
	 
	 	(g)	 	If Employer contributions are inadequate to pay all premiums on insurance
policies, the Trustee may, at the direction of the Employer, utilize other amounts
remaining in the Fund to pay the premiums, allow the policies to lapse, reduce the
policies to a level at which they may be maintained, or borrow against the policies on
a prorated basis, provided that the borrowing does not discriminate in favor of the
policies on the lives of officers, shareholders, and Highly Compensated Employees.
	 
	 	(h)	 	On retirement or termination of employment of a Participant, or upon the
elimination of the insurance provisions stated in this paragraph, the Employer shall
direct the Trustee to cash surrender the Participant’s policy and credit the proceeds
to the Fund. However, before so doing, the Trustee shall first offer to transfer
ownership of the policy to the Participant in exchange for payment by the Participant
of the cash value of the policy at the time of transfer. Such payment shall be
credited to the Fund. All distributions resulting from the application of this
paragraph shall be subject to the Joint and Survivor Annuity Requirements of Article
VII.
	 
	 	(i)	 	The Plan Administrator shall be solely responsible to see that these insurance
provisions are administered properly and that if there is any conflict between the
terms of this Plan and the terms of any insurance contracts held hereunder, the Plan
provisions shall control.

10.9 Determination Of Qualified Domestic Relations Order (QDRO Or Order)

Unless otherwise provided in a separate Trust agreement, a domestic relations order shall
specifically state all of the following in order to be deemed a Qualified Domestic Relations Order
(“QDRO”):

	 	(a)	 	The name and last known mailing address (if any) of the Participant and of each
alternate payee covered by the QDRO. However, if the QDRO does not specify the current
mailing address of the alternate payee, but the Plan Administrator has independent
knowledge of that address, the QDRO will still be valid.
	 
	 	(b)	 	The dollar amount or percentage of the Participant’s benefit to be paid by the
Plan to each alternate payee, or the manner in which the amount or percentage will be
determined.
	 
	 	(c)	 	The number of payments or period for which the order applies.
	 
	 	(d)	 	The specific Plan (by name) to which the domestic relations order applies.

The domestic relations order shall not be deemed a QDRO if it requires the Plan to provide:

	 	(e)	 	any type or form of benefit or any option not already provided for in the Plan;
	 
	 	(f)	 	increased benefits or benefits in excess of the Participant’s vested rights;
	 
	 	(g)	 	payment of a benefit earlier than allowed by the Plan’s earliest retirement
provisions; or
	 
	 	(h)	 	payment of benefits to an alternate payee which are required to be paid to
another alternate payee under another QDRO.

Upon receipt of a domestic relations order (“Order”) which may or may not be “qualified”, the Plan
Administrator shall notify the Participant and any alternate payee(s) named in the Order of such
receipt, and forward either a copy of this paragraph or other written QDRO policies and procedures.
The Plan Administrator shall establish written procedures to establish the qualified status of a
domestic relations order, which may include forwarding the Order to the Plan’s

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legal counsel for an opinion as to whether or not the Order is in fact “qualified” as defined in Code
Section 414(p). Within a reasonable time after receipt of the Order, not to exceed sixty (60)
days, the Plan Administrator shall make a determination as to its “qualified” status and the
Participant and any alternate payee(s) shall be promptly notified in writing of the determination.

If the “qualified” status of the Order is in question, there will be a delay in any payout to any
payee including the Participant, until the status is resolved. In such event, the Plan
Administrator shall segregate the amount that would have been payable to the alternate payee(s) if
the Order had been deemed a QDRO. If the Order is not qualified or the status is not resolved (for
example, it has been sent back to the court for clarification or modification) within eighteen (18)
months beginning with the date the first payment would have to be made under the Order, the Plan
Administrator shall pay the segregated amounts plus interest to the person(s) who would have been
entitled to the benefits had there been no Order. If a determination as to the qualified status of
the Order is made after the eighteen (18) month period described above, then the Order shall only
be applied on a prospective basis. If the Order is determined to be a QDRO, the Participant and
alternate payee(s) shall again be notified promptly after such determination. Once an Order is
deemed a QDRO, the Plan Administrator shall pay to the alternate payee(s) all the amounts due under
the QDRO, including segregated amounts plus earnings, if any, which may have accrued during a
dispute as to the Order’s qualification.

Unless specified otherwise in the Adoption Agreement or in a separate Trust agreement, the QDRO
retirement age with regard to the Participant against whom the order is entered shall be the date
the order is determined to be qualified. These provisions will only allow distributions to the
alternate payee(s) and not the Participant.

10.10 Receipt And Release For Payments

Unless otherwise provided in a separate Trust agreement, any payment to any Participant, his legal
representative, Beneficiary, or to any guardian or committee appointed for such Participant or
Beneficiary in accordance with the provisions of the Plan shall be in full satisfaction of all
claims hereunder against the Trustee, Employer or Plan Administrator each of whom may require such
Participant, legal representative, Beneficiary, guardian or committee as a condition prior to such
payment, to execute a receipt and release in such form as shall be determined by the Trustee,
Employer or Plan Administrator.

10.11 Resignation And Removal

Unless otherwise provided in a separate Trust agreement, an individual serving as Plan
Administrator may resign by giving written notice to the Employer, or if the Employer is no longer
in existence, to the Trustee/Custodian, not less than thirty (30) days before the effective date of
the individual’s resignation. The Plan Administrator may be removed upon thirty (30) days prior
written notice to the Plan Administrator, with or without cause, by the Employer, or if the
Employer is no longer in existence, by a majority of the Participants and Beneficiaries following
the approach referred to in paragraph 10.2. A notice period provided for in this paragraph 10.11
may be waived or reduced if acceptable to the parties involved. The Employer, if in existence,
shall be the successor to the position involved, or the Employer may appoint a successor to a
person who has resigned or been removed as Plan Administrator, but if the Employer is no longer in
existence, the appointment shall be made by a majority of the Participants and Beneficiaries
following the approach referred to in paragraph 10.2. When the Plan Administrator’s resignation or
removal becomes effective, the Plan Administrator shall perform all acts necessary to transfer all
relevant records to its successor. A successor Plan Administrator shall have all the rights and
powers and all of the duties and obligations of the original Plan Administrator but shall have no
responsibility for acts or omissions before the successor became Plan Administrator.

10.12 Claims And Claims Review Procedure

Unless otherwise provided in a separate Trust agreement, if any Employee, Participant, Beneficiary
or any other person claims to be entitled to benefits under the Plan, and the Plan Administrator
denies that claim in whole or in part, the Plan Administrator shall, in writing, within ninety (90)
days notify the claimant that his claim has been denied in whole or in part, setting forth the
specific reason or reasons for the denial, specific reference to pertinent Plan provisions upon
which the denial is based, a description of any additional material or information which may be
needed to clarify the claim, including an explanation of why such information is necessary, and
shall refer to the claims review procedure as set forth in this paragraph 10.12. Within sixty (60)
days after the mailing or delivery by the Plan Administrator of such notice, the claimant may
request, by written notice to the Plan Administrator, a review by the Employer of the decision
denying the claim. The claimant may examine documents pertinent to the review and may submit
written issues and comments to the Plan Administrator. If the claimant fails to request such a
hearing within such sixty (60) day period, it shall be conclusively determined for all purposes of
this Plan that the denial of such claim is correct. If the claimant requests a review within the
sixty (60) day period, the Plan Administrator shall designate a time, which time shall be no less
than ten (10) nor more than forty-five (45) days from the date of receipt by the Plan Administrator
of the claimant’s notice to the Plan Administrator, and a place for such hearing, and shall
promptly notify such claimant of

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such time and place. Within forty-five (45) days after the conclusion of the hearing, including any extensions
of the date thereof mutually agreed to by the claimant and the Plan Administrator, the Plan
Administrator shall communicate to the claimant the Plan Administrator’s decision in writing, and
if the Plan Administrator confirms the denial, in whole or in part, the communication shall set
forth the specific reason or reasons for the decision and specific reference to those Plan
provisions upon which the decision is based.

10.13 Bonding

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

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ARTICLE XI

TRUST PROVISIONS

11.1 Establishment Of The Trust

	 	(a)	 	The Employer shall appoint within the Adoption Agreement who may be the Sponsor
(or an affiliate) of this Basic Plan Document #02 or an individual(s), institution or
other party, to serve as Trustee or Custodian (if applicable) of the Plan. The Employer
shall also have the right, but is not required, to appoint a Custodian in the Adoption
Agreement to have custody of the Plan’s assets. The Employer may execute a separate
trust or custodial agreement outlining the Trustee’s or Custodian’s duties and
responsibilities which shall be incorporated by reference and made part of this Basic
Plan Document #02. No such ancillary agreement may conflict with any provision(s) of
this document. Any provision which would jeopardize the tax-qualified status of this
Plan shall be null and void. Unless otherwise elected in the Adoption Agreement, the
Trust and/or Custodial provisions of this Article XI and Article X, as applicable, of
the Basic Plan Document #02 together with any such ancillary agreement shall be
operative. If the Sponsor is a bank, trust company or other financial organization, a
person or institution other than the Sponsor or its affiliate may not serve as Trustee
or Custodian of the Plan without the express written consent of the Sponsor. If a
financial organization is the Sponsor, and is not named Trustee, the Sponsor may serve
as Custodian under the Plan as provided at paragraph 11.13 herein. The Trustee shall
invest the Trust Fund in any of the investment alternatives as provided in paragraph
11.8. If a Custodian is appointed, the Trust Fund shall be invested in accordance with
paragraph 11.14.
	 
	 	(b)	 	The Employer establishes with the Trustee a Trust which shall consist of all
money and property received under Articles III and IV of this document, increased by
any income on or increment in such value of assets and decreased by any investment
loss, expense, benefit payment, withdrawal or other distribution by the Trustee in
accordance with the provisions of the Plan. The Trustee/Custodian shall hold the Trust
fund without distinction between principal and income. The Trust fund will be held,
invested, reinvested and administered by the Trustee in accordance with this Article
and any ancillary documents as provided for in this Article.

11.2 Control Of Plan Assets

The assets of the Trust or evidence of ownership shall be held by the Trustee and/or the Custodian
under the terms of the Basic Plan Document #02. If the assets represent amounts transferred from
another trustee or custodian under a former plan, the Trustee and/or Custodian named hereunder
shall not be responsible for any actions of the prior fiduciary including the propriety of any
investment decision made by the prior trustee/custodian under any prior plan. Instead, the
Employer shall be responsible for such actions.

11.3 Discretionary Trustee

If the Employer elects in the Adoption Agreement, or otherwise appoints the Trustee to act in the
capacity of discretionary Trustee, the Trustee shall invest the Trust in accordance with the Plan’s
investment policy statement and the investment alternatives permitted at paragraph 11.8 herein.
The Trustee will have the discretion and authority to invest, manage and control those Plan assets
except those assets which are subject to the investment direction of a Participant (if Participant
direction is permitted), or an investment manager or Named Investment Fiduciary, or other agent
properly appointed by the Employer. The exercise of any investment direction hereunder shall be
consistent with the investment policy of the Plan. The Trustee shall also perform custodial
functions described at paragraph 11.14 hereof for the Trust with respect to Plan assets over which
the Trustee has investment management responsibility. The Trustee may also perform custodial
functions for the Trust with respect to Plan assets the Trustee does not manage, to the extent
agreed to between the Trustee and the Employer, if the Trustee is appointed Custodian for some or
all of such assets in accordance with the terms of the Plan. The Trustee may execute any
additional documents as required which shall be treated as an addendum to this Basic Plan Document
#02. No such agreement may conflict with any provision nor shall any provision in such an
agreement jeopardize the tax-qualified status of the Plan. Any such provision shall be null and
void. The Trustee’s administrative duties shall be limited to those agreed to between the parties.
The Employer or its designate shall be responsible for other administrative duties required under
the Plan or by applicable law.

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11.4 Nondiscretionary Trustee

If the Employer elects in the Adoption Agreement or as otherwise agreed to in writing, the Trustee
may act in the capacity of a nondiscretionary Trustee. In this capacity, the Trustee shall have no
discretionary authority to invest, manage or control Plan assets and is authorized solely to make
and hold investments only as directed pursuant to paragraph 10.5. The nondiscretionary Trustee
shall have the same rights, powers and duties as the discretionary Trustee but exercises such
authority in accordance with the direction of the party which has the authority to manage and
control the investment of Plan assets. If directions are not provided to the Trustee, the Employer
will provide such necessary direction.

11.5 Provisions Relating To Individual Trustees

	 	(a)	 	Notwithstanding any other provisions of the Plan to the contrary, the
provisions of this paragraph shall apply if one (1) or more individuals are named as
Trustee(s) in the Adoption Agreement and shall not apply to any institutional Trustee
named in the Adoption Agreement.
	 
	 	(b)	 	If there shall be more than one individual acting in the capacity of Trustee,
they shall act by a majority of their number, unless they unanimously decide that one
(1) or more of them may act on the matter or category of matters involved without the
approval of the others and they may authorize in writing that one (1) or more of them
shall act on their behalf including but not limited to executing documents and
authorizing distributions on behalf of the Trustees.
	 
	 	(c)	 	Any person may rely, without having to make further inquiry, upon instructions
appearing to be genuine instructions from any individual serving as Trustee as being
the will, intent and action of all individuals so serving if no allocation of duties
has been made.
	 
	 	(d)	 	The Trustee shall be paid such reasonable compensation for services as shall
from time to time be agreed upon in writing by the Employer and the Trustee, provided
that an individual serving as Trustee who already receives full-time Compensation from
the Employer shall not receive compensation for serving as such from the Plan.

11.6 Investment Instructions

Any investment directive shall be made in writing or such other form as agreed to by the Employer,
Trustee/Custodian and the investment manager. In the absence of such directive, cash shall be
automatically invested in such investment or investments as the Employer or Named Investment
Fiduciary shall select from the investments made available for that purpose unless and until the
person or persons responsible for giving directions directs otherwise. Such automatic investment
shall be made at regular intervals and pursuant to procedures established by the parties (which
procedures may without limitation, provide for more frequent intervals only if uninvested balances
exceed a stated amount). Absent a contrary direction in accordance with the preceding provisions
of this paragraph 11.6, such instructions regarding the delegation of investment responsibility
shall remain in force until revoked or amended in writing. Neither the Trustee nor the Custodian
shall be responsible for the propriety of any directed investment made nor shall they be required
to consult with or advise the Employer regarding the investment quality of any directed investment
held hereunder. If the Employer fails to designate an investment manager, the Trustee shall have
full investment management authority as agreed upon in a duly authorized and executed investment
management agreement. If the Employer does not issue investment directions with regard to specific
assets held in the Trust, the Trustee shall have authority to invest those assets in the Trust in
its sole discretion subject to paragraph 11.8. While the Employer may direct the Trustee with
respect to Plan investments, the Employer may not:

	 	(a)	 	borrow from the Plan or pledge any of the assets of the Plan as security for a
loan,
	 
	 	(b)	 	buy property or assets from or sell property or assets to the Plan,
	 
	 	(c)	 	charge any fee for services rendered to the Plan, or
	 
	 	(d)	 	receive any services from the Plan on a preferential basis.

11.7 Fiduciary Standards

Subject to paragraphs 11.6 and 11.8 hereof, the Trustee, if discretionary, shall invest and
reinvest principal and income of the Trust in accordance with the funding policy and investment
objectives established by the Employer, provided that:

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	 	(a)	 	such investments are prudent under ERISA, as amended, and the Regulations
thereunder,
	 
	 	(b)	 	such investments are sufficiently diversified to minimize the risk of large losses,
	 
	 	(c)	 	such investments are made in accordance with the provisions of this Plan and
Trust document, and
	 
	 	(d)	 	such investments are made with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like
character with like aims.

11.8 Powers Of The Trustee

The Trustee shall be responsible for the investment, administration and safekeeping of assets held
in the Trust Fund. The Trustee shall have the following duties and responsibilities, in addition
to powers given by law:

	 	(a)	 	receiving contributions under the terms of the Plan;
	 
	 	(b)	 	implementing an investment program based on the Employer’s investment policy
statement, funding policy, investment objectives and ERISA, as amended;
	 
	 	(c)	 	invest the Trust in any form of property, including common and preferred
stocks, exchange-traded covered put and call options, bonds, money market instruments,
mutual funds (including funds for which the Sponsor, Trustee or its affiliates receive
compensation for providing investment advisory, custody, transfer agency or other
services), savings accounts, plan loans, certificates of deposit, securities issued by
the U.S. government or by governmental agencies, insurance policies and contracts, or
in any other property, real or personal, having a ready market, including securities
issued by the Trustee and/or affiliates of the Trustee as permitted by law. The
Trustee may invest in time deposits (including, if applicable, its own or those of
affiliates) which bear a reasonable interest rate. No portion of any Qualified
Voluntary Contribution, or the earnings thereon, may be invested in life insurance
contracts or, as with any Participant-directed investment, in tangible personal
property characterized by the IRS as a collectible;
	 
	 	(d)	 	invest any assets of the Trust in a group or collective trust fund established
to permit the pooling of funds of separate pension and profit-sharing trusts, provided
the Internal Revenue Service has ruled such group or collective trust to be qualified
under Code Section 401(a) and exempt under Code Section 501(a) (or the applicable
corresponding provision of any other Revenue Act) or to any other common, collective,
or commingled trust fund which has been or may hereafter be established and maintained
by the Trustee, affiliate(s) of the Trustee, the Custodian or investment manager. Such
commingling of assets of the Trust with assets of other qualified trusts is
specifically authorized, and to the extent of the investment of the Trust in such a
group or collective trust, the terms of the instrument establishing the group or
collective trust shall be a part hereof as though set forth herein. The name of the
group or collective trust fund shall be specified in an addendum to the Adoption
Agreement. The Employer expressly understands and agrees that any such collective fund
may provide for the lending of its securities by the collective fund trustee and that
such collective fund’s trustee will receive compensation from such collective fund for
the lending of securities that is separate from any compensation of the Trustee
hereunder, or any compensation of the collective fund trustee for the management of
such collective fund;
	 
	 	(e)	 	for collective investment purposes, may combine into one trust fund the Trust
created under this Plan with the Trust created under any other qualified retirement
plan the Employer maintains. However, the Trustee must maintain separate records of
account for the assets of each Trust in order to reflect properly each Participant’s
Vested Accrued Benefit under the Plan(s) in which he is a Participant;
	 
	 	(f)	 	invest up to 100% of the Trust in the common stock, debt obligations, or any
other security issued by the Employer or by an affiliate of the Employer within the
limitations provided under ERISA Sections 406, 407, and 408, as amended, and further
provided that such investment does not constitute a prohibited transaction under Code
Section 4975. Any such investment in Employer securities shall only be made upon
written direction of the Employer who shall be solely responsible for the propriety of
such investment. Additional directives regarding the purchase, sale, retention or
valuing of such securities may be addressed in an investment management or trust
agreement, which is incorporated by reference. If there are any conflicts between this
document and the above referenced agreements, this document shall govern;

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	 	(g)	 	hold cash uninvested and deposit the same with any banking or savings
institution, including its own banking department or the banking department of an
affiliate;
	 
	 	(h)	 	utilize a general disbursement account, i.e., in the form of a demand deposit
account and/or time deposit account, for distributions from the Trust, without
incurring any liability for payment of interest thereon, notwithstanding the Trustee’s
receipt of income with respect to float involving the disbursement account;
	 
	 	(i)	 	hold contributions in an omnibus account, i.e., in the form of a demand deposit
and/or time deposit account, maintained by the Trustee for up to three (3) business
days (or such longer period as may result due to circumstances beyond the Trustee’s
control), without liability for interest thereon. (The Employer acknowledges that any
float earnings associated with the assets held in such omnibus account are retained by
the Trustee as part of its compensation for performing services with respect to the
allocation of contributions to Participants’ accounts);
	 
	 	(j)	 	join in or oppose the reorganization, recapitalization, consolidation, sale or
merger of corporations or properties, including those in which it or its affiliates are
interested as Trustee, upon such terms as it deems advisable;
	 
	 	(k)	 	hold investments in nominee or bearer form;
	 
	 	(l)	 	exercise all ownership rights including the voting of proxies and the exercise
of tender offers but only with respect to assets over which the Trustee has investment
management responsibility;
	 
	 	(m)	 	to hold, manage and control all property forming part of the Trust Fund and to
sell, convey, transfer, exchange and otherwise dispose of the same from time to time;
	 
	 	(n)	 	to apply for and procure from an insurance company as an investment of the
Trust such annuity, or other contracts on the life of any Participant as the Plan
Administrator shall deem proper; to exercise, at any time or from time to time,
whatever rights and privileges may be granted under such annuity, or other contracts;
to collect, receive, and settle for the proceeds of any such annuity, or other
contracts as and when entitled to do so under the provisions thereof;
	 
	 	(o)	 	unless otherwise provided by a directive as described by paragraph 11.6, the
Employer will pass through shareholder rights (including voting rights) on Employer
securities to Plan Participants. If no directive is provided, the Trustee shall
exercise any shareholder rights (including voting rights) with respect to any
securities held, but only in accordance with the instructions of the person or persons
responsible for the investment of such securities subject to and as permitted by, any
applicable rules of the Securities and Exchange Commission and any national securities
exchange. Voting rights with respect to shares of registered investment companies held
in the Trust shall be directed by the Named Investment Fiduciary responsible for
selection of such registered investment companies as permissible investment
alternatives. In the event of any conflict with any other provision of this Article or
this Basic Plan Document #02, the provision of this paragraph shall control. The
Employer shall be responsible for preparing and distributing all required prospectuses
for Employer securities and making such materials available to Plan Participants;
	 
	 	(p)	 	to retain and employ such attorneys, agents and servants as may be necessary or
desirable, in the opinion of the Trustee, in the administration of the Plan, and to pay
them such reasonable compensation for their services as may be agreed upon as an
expense of administration of the Plan, including power to employ and retain counsel
upon any matter of doubt as to the meaning or interpretation to be placed upon this
Plan or any provisions thereof with reference to any question arising in the
administration of the Plan or pertaining to the rights and liabilities of the Trustee
hereunder. The Trustee in any such event, any act in reliance upon the advice,
opinions, records, statements and computations of any attorneys and agents and on the
records, statements and computations of any servants so selected by it in good faith
and shall be released and exonerated of and from all liability to anyone in so doing
(except to the extent that liability is imposed under ERISA);

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	 	(q)	 	to institute, prosecute and maintain, or to defend, any proceeding at law or in
equity concerning the Plan or the assets thereof or any claims thereto, or the
interests of Participants and Beneficiaries
hereunder at the sole cost and expense of the Plan or at the sole cost and expense of
the Participant that may be concerned therein or that may be affected thereby, as, in
its opinion, shall be fair and equitable in each case, and to compromise, settle and
adjust all claims and liabilities asserted by or against the Plan or asserted by or
against it, or such terms as it, in each such case, shall deem reasonable and proper.
The Trustee shall be under no duty or obligation to institute, prosecute, maintain
or defend any suit, action or other legal proceeding unless it shall be indemnified
to its satisfaction against all expenses and liabilities (including without
limitation, legal and other professional fees) which it may sustain or anticipate by
reason thereof; and
	 
	 	(r)	 	the Trustee is expressly authorized to the fullest extent permitted by law to
(1) retain the services of any broker-dealer, registered investment advisor or other
financial services entity (including the Trustee and any of its affiliates) and any
future successors in interest thereto collectively, for the purposes of this paragraph
referred to as the “Affiliated Entities”), to provide services to assist or facilitate
the purchase or sale of investments in the Trust, (2) acquire as assets of the Trust
            shares of mutual funds to which Affiliated Entities provide, for a fee, services in any
capacity and (3) acquire in the Trust any other services or products of any kind or
nature from the Affiliated Entities regardless of whether the same or dissimilar
services or products are available from other institutions. The Trust may pay directly
or indirectly (through mutual funds fees and charges for example) pay management fees,
transaction fees and other commissions to the Affiliated Entities for the services or
products provided to the Trust and/or such mutual funds at such Affiliated Entities’
standard or published rates without offset (unless required by law) from any fees
charged by the Trustee for its services as Trustee. The Trustee may also deal directly
with the Affiliated Entities regardless of the capacity in which it is then acting, to
purchase, sell, exchange or transfer assets of the Trust even though the Affiliated
Entities are receiving compensation or otherwise profiting from such transaction or are
acting as principal in such transaction. Each of the Affiliated Entities is authorized
to effect transactions on national securities exchanges for the Trust as directed by
the Trustee, and retain any transactional fees related thereto, consistent with Section
11(a)(1) of the Securities and Exchange Act of 1934, as amended and related Rule
11a2-2(T). Included specifically, but not by way of limitation in the transactions
authorized by this provision, are transactions in which any of the Affiliated Entities
is serving as an underwriting or member of an underwriting syndicate for a security
being purchased or is purchasing or selling a security for its own account. In the
event the Trustee is directed by the Plan Administrator, any named fiduciary,
designated Investment Manager, Participant and/or Beneficiary, as applicable hereunder
(collectively referred to as for purposes of this paragraph as the “Directing Party”),
the Directing Party shall be authorized, and expressly retains the right hereunder, to
direct the Trustee to retain the services of, and conduct transactions with, Affiliated
Entities fully in the manner described above.

11.9 Appointment Of Additional Trustee And Allocation Of Responsibilities

Assets for which the Trustee is not serving in the capacity of Trustee may be held by a second
Trustee appointed by the Employer to hold specified investments. In the event that an additional
Trustee is appointed for the Plan to serve as the Trustee of specific investments for which the
Trustee is not acting in the capacity of Trustee, the second Trustee shall have no responsibilities
to these assets other than as set forth herein. The Trustee shall have no duties with respect to
investment held by any other person including, without limitation, any other Trustee for the Plan.
Any other secondary Trustee of the Plan shall have no duties with respect to assets held in the
Plan by the Trustee.

11.10 Compensation, Administrative Fees And Expenses

All reasonable fees, charges and expenses incurred by the Trustee or the Custodian in connection
with the administration of the Trust and all reasonable fees, charges and expenses incurred by the
Plan Administrator in connection with the administration of the Plan (including such reasonable
compensation to the Trustee/Custodian and the Plan Administrator as may be agreed upon from time to
time between the Employer, the Trustee/Custodian and Plan Administrator) and fees for legal
services rendered to the Trustee/Custodian or Plan Administrator shall be paid from the Trust
unless:

	 	(a)	 	The payment of such expense would constitute a “prohibited transaction” within
the meaning of ERISA Section 406 or Code Section 4975 for which no statutory or
administrative exemption is available.

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	 	(b)	 	The Employer actually pays such expenses directly. Any and all reasonable
additional administrative expenses incurred to effect investment directives made by the
Participants and by each Beneficiary under this Plan shall be paid by the Trust and as
determined by the Employer shall either be charged (in accordance with such reasonable
nondiscriminatory rules as the Employer deems appropriate
under the circumstances) to the account of the individual issuing such directive, or
treated as a general expense of the Trust. If charged to a Participant’s account and
if the assets of such account are insufficient to satisfy such charges, the Employer
shall pay any deficit to the Trustee. Notwithstanding the foregoing, nothing in this
section shall prevent the Employer from paying the administrative expenses of the
Plan directly.
	 
	 	(c)	 	All transaction related expenses incurred to effect a specific investment for a
Participant directed account (such as brokerage commissions and other transaction
related expenses), shall, as determined by the Employer, either be paid from or
otherwise be charged directly to the account of the Participant providing such
direction or treated as a general expense of the Trust.
	 
	 	(d)	 	If there are insufficient liquid assets of the Trust to cover the fees of the
Trustee or the Custodian, then assets of the Trust shall be liquidated to the extent
necessary to cover fees.
	 
	 	(e)	 	Notwithstanding the foregoing, no compensation other than reimbursement for
expenses incurred shall be paid to a Plan Administrator who is the Employer or Employee
of the Employer.
	 
	 	(f)	 	In the event any part of the Plan becomes subject to tax, all taxes incurred
will be paid from the Plan at the direction of the Plan Administrator.
	 
	 	(g)	 	Any investment gain or loss of the Trust that is not directly attributable to
the investment of the account of any Participant (including, but not limited to, for
example, any “float” earned on the disbursement account established for the Plan and
not treated as part of the compensation of the Trustee or paying agent for the Plan,
and any 12b-1 or similar fees paid to the Plan) will be applied to pay administrative
expenses of the Plan, with any excess remaining at the close of the Plan Year being
allocated among the Participant’s accounts in accordance with the procedure established
by the Plan Administrator for this purpose.

11.11 Records

Within ninety (90) days following the close of each Plan Year, or at such other times as may be
agreed to between the Employer and the Trustee, and within ninety (90) days following its removal
or resignation, the Trustee shall file with the Employer a report of that part of the Trust under
the investment management of the Trustee during such year or from the end of the preceding Plan
Year to the date of removal or resignation. Such report shall include a statement of receipts and
disbursements, the net income or loss of the Trust, the gains or losses realized by the Trust upon
sale or other disposition of the assets, the increase or decrease in the value of the Trust, all
payments and distributions made from the Trust since the date of its last report, and shall contain
a schedule of assets listing the fair market value of investments held in the Trust as of the end
of the Plan Year or the date of removal or resignation, as applicable. The fair market value of
investments for which there is a ready market shall be determined using the most recent price
quoted on a national or other recognized securities exchange or over-the-counter market. The fair
market value of illiquid investments shall be obtained by a valuation performed by an independent
appraiser appointed by the Trustee or appointed by the Employer and approved by the Trustee for
this purpose whose determination shall be final. The Employer shall review the Trustee’s report and
notify the Trustee in the event of its disapproval of the report within thirty (30) days, providing
the Trustee with a written description of the items in question. The Trustee shall have sixty (60)
days to provide the Employer with a written explanation of the items in question. If the Employer
again disapproves, the Trustee shall have the right to file its report in a court of competent
jurisdiction for audit and adjudication. In the event the Employer fails to file a written
objection to the Trustee’s report within the ninety (90) day period following receipt of the
report, the Employer shall be deemed to have approved the report. In such case, the Trustee shall
be released and discharged with respect to all matters contained in the report.

11.12 Limitation On Liability And Indemnification

	 	(a)	 	The Trustee shall have the authority to manage and govern the Trust to the
extent provided in this instrument, but does not guarantee the Trust in any manner
against investment loss or depreciation in asset value, or guarantee the adequacy of
the Trust to meet and discharge all or any liabilities of the Plan.

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	 	(b)	 	The Trustee and/or Custodian shall not be liable for the making, retention, or
sale of any investment or reinvestment made by it, as herein provided, or for any loss
to, or diminution of the Trust, or for any other loss or damage which may result from
the discharge of its duties hereunder except to the extent
it is judicially determined such loss or damage is attributable to the
Trustee/Custodian’s breach of its duties hereunder or under ERISA.
	 
	 	(c)	 	An institution acting as a Custodian or nondiscretionary Trustee shall have no
discretion or investment management responsibility, unless otherwise expressly agreed
in writing (pursuant to an investment management agreement, for example) and shall only
be responsible to perform the functions described at paragraph 11.5 hereof. Neither
the Custodian nor Trustee (whether nondiscretionary or discretionary) shall have any
responsibility with respect to Plan investments and does not guarantee the adequacy of
the Trust to meet and discharge any or all liabilities associated with the Plan.
	 
	 	(d)	 	The Employer warrants that all directions issued to the Trustee or Custodian by
it or the Plan Administrator will be in accordance with the terms of the Plan and the
auxiliary agreement and not contrary to the provisions of ERISA, as amended, and the
Regulations issued thereunder.
	 
	 	(e)	 	Neither the Trustee nor the Custodian shall be answerable for any action taken
pursuant to any direction, consent, certificate, or other paper or document in the
belief that the same is genuine. All directions by the Employer, Participant, the Plan
Administrator, Named Fiduciary or an investment manager shall be made pursuant to
pre-approved communication procedures to which all such parties, as applicable, shall
have consented to in writing. The Employer shall deliver to the Trustee and Custodian
written notification identifying the individual or individuals authorized to act on
behalf the Plan and shall deliver specimens of their signatures to the
Trustee/Custodian.
	 
	 	(f)	 	The duties and obligations of the Trustee and the Custodian shall be limited to
those expressly imposed by this instrument or subsequently agreed upon by the parties
in writing. Responsibility for administrative duties required under the Plan or
applicable law not expressly imposed upon or agreed to by the Trustee or the Custodian
shall rest solely with the Employer.
	 
	 	(g)	 	The Employer shall indemnify the Trustee/Custodian against, and agrees to hold
the Trustee/Custodian harmless from, all liabilities and claims and expenses including
attorney’s fees and expenses incurred in defending against such liability or claims
against the Trustee/Custodian, unless such liability or claim results from the
negligent action or inaction of the Trustee/Custodian, or where the Trustee/Custodian
is found to have breached its duties under this Article or Part 4 of Title I of ERISA
by a final judgment of a court of competent jurisdiction. Except as otherwise provided
by the preceding sentence, the Employer also shall indemnify the Trustee/Custodian
against and agrees to hold the Trustee/Custodian harmless from all liabilities, claims
and expenses including attorney’s fees and other expenses incurred in defending against
such liabilities or claims, arising from any actions or breach of responsibility by any
party other than the Trustee/Custodian, including without limitation by specification
any acts of a prior Trustee or of another Trustee or Custodian appointed by the
Employer.
	 
	 	(h)	 	Without limiting any provision in the prior paragraph, the Employer expressly
agrees to indemnify the Trustee/Custodian against any liability or claim (including
attorney’s fees and expenses in defending against such liabilities or claims) arising
as a result of any act taken or failure to act, in accordance with the directions
received from the Employer, Plan Administrator, investment manager, Participant, or a
designee specified by the Employer directly or transmitted by a designated Service
Provider to the Plan and without limitation by specification.
	 
	 	(i)	 	The Trustee/Custodian will take all reasonable steps to assure the security of
any data received from the Employer in connection with services provided to the Plan.
The Employer will be responsible for retaining duplicate copies of any such data or
materials it forwards to the Trustee/Custodian and for taking all other reasonable and
necessary precautions in event such data or materials are lost or destroyed, regardless
of cause, or in the event reprocessing is needed for any reason. The Trustee/Custodian
will maintain records in connection with the performance of services hereunder for the
applicable period as required by law, or if no period is required, for such period as
is reasonable under the law.

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	 	(j)	 	No waiver of any breach of this agreement shall constitute a waiver of any
other breach, whether of the same or any other covenant, term or condition. The
subsequent performance of any of the terms, covenants and conditions of this Article
shall not constitute a waiver of any preceding breach, nor shall any delay or omission
of any party’s exercise of any rights arising from any default effect or impair the
party’s rights as to the same or future default.
	 
	 	(k)	 	Neither the Trustee or the Custodian shall be responsible in any way for any
actions taken, or failure to act, by a prior trustee/custodian. The Employer shall
indemnify and hold harmless the Trustee/Custodian for such prior trustee/custodian’s
acts or inactions for any periods applicable, including periods for which the Plan must
retroactively comply with any tax law or regulations thereunder.
	 
	 	(l)	 	A fiduciary with respect to the Plan shall not be liable for a breach of
fiduciary responsibility of another fiduciary with respect to the Plan except to the
extent that:

	 	(1)	 	it participates knowingly in, or knowingly undertakes to conceal,
an act or omission of such other fiduciary, knowing such act or omission is a
breach;
	 
	 	(2)	 	by its failure to comply with ERISA Section 404(a)(1) in the
administration of its specific responsibilities which give rise to its status as
a fiduciary, it has enabled such other fiduciary to commit a breach; or
	 
	 	(3)	 	it has knowledge of a breach by such other fiduciary, unless it
makes reasonable efforts under the circumstances to remedy the breach.

	 	(m)	 	If the assets of the Plan are held by two (2) or more Trustees, each Trustee
will use reasonable care to prevent a co-Trustee from committing a breach of duty under
the Employee Retirement Income Security Act of 1974, as amended, and they shall jointly
manage and control the assets of the Plan; provided however, that such co-Trustee shall
be authorized to allocate specific responsibilities, obligations or duties among the
co-Trustees pursuant to a written agreement. If co-Trustees do enter into such an
agreement, then a Trustee to whom certain responsibilities, obligations or duties have
not been allocated shall not be liable either individually or as Trustee for any loss
resulting to the Plan arising from the acts or omissions on the part of another Trustee
to which such responsibilities, obligations or duties have been allocated.

11.13 Custodian

If a discretionary Trustee has been appointed, the Employer may appoint a Custodian as provided for
in the Adoption Agreement. A Custodian shall have the same rights, powers and duties as a
nondiscretionary Trustee. Any reference in the Plan to a Trustee is also a reference to the
Custodian unless the context indicates otherwise. Any limitation of the Trustee’s liability in the
Plan shall act as a limitation of the Custodian’s liability. Where a discretionary Trustee has
provided direction, any action taken by the Custodian satisfies the requirement in the Plan
referencing the Trustee taking that action. The resignation or removal of the Custodian shall be
made in accordance with paragraph 11.19 as though the Custodian were the Trustee. The Custodian
shall be responsible for the holding and safekeeping of all or a portion of the Plan’s assets. One
or more Custodian(s) appointed under this Plan may hold all or any portion of the Plan’s assets.
Such separate assets shall be held pursuant to the terms of a separate custodial agreement with
such Custodian. The separate custodial agreement shall be treated as an addendum and, as such, may
not conflict with any provision of this document. In addition, any provision of a separate
custodial agreement which would jeopardize the tax qualified status of this Defined Contribution
Plan shall be null and void. In addition to the holding and safekeeping of Plan assets, the
Custodian’s duties shall include:

	 	(a)	 	receiving contributions under the terms of the Plan, but not determining the
amount or enforcing the payment thereof,
	 
	 	(b)	 	making distributions from the Plan in accordance with instructions received
from the Plan Administrator or an authorized representative of the Employer,
	 
	 	(c)	 	keeping records reflecting its administration of the Trust or the custodial
account and making such records, statements and reports available to the Employer for
review and audit at such times as agreed to between the Custodian, Plan Administrator,
and the Employer, and

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	 	(d)	 	retaining and employing such attorneys, agents and servants as may be necessary
or desirable, in the opinion of the Custodian, in the administration of the Plan, and
to pay them such reasonable compensation for their services as may be agreed upon as an
expense of administration of the Plan, including power to employ and retain counsel
upon any matter of doubt as to the meaning or interpretation to be placed upon this
Plan or any provisions thereof with reference to any question arising in the
administration of the Plan or pertaining to the rights and liabilities of the Trustee
hereunder. The Custodian in any such event, any act in reliance upon the advice,
opinions, records, statements and computations of any attorneys and agents and on the
records, statements and computations of any servants so selected by it in good faith
shall be released and exonerated of and from all liability to anyone in so doing
(except to the extent that liability is imposed under ERISA).

The Custodian’s duties shall be limited to those as agreed to between the Employer and the
Custodian. The Employer shall be responsible for any other administrative duties required under
the Plan or by applicable law.

11.14 Investment Alternatives Of The Custodian

	 	(a)	 	The Custodian shall hold any or all assets received from the Trustee or its
agents. If the Custodian holds title to Plan assets and such ownership requires action
on the part of the registered owner, such action will be taken by the Custodian only
upon receipt of specific instructions from the Trustee, or its designated agents or the
Named Investment Fiduciary. Proxies shall be voted by or pursuant to the express
direction of the Trustee its’ authorized agent or the Named Investment Fiduciary. The
Custodian shall not render any investment advice, including any opinion on the prudence
of directed investments. The Employer and Trustee and its agents thereof assume all
responsibility for adherence to fiduciary standards under ERISA, as amended, and the
Regulations issued thereunder.
	 
	 	(b)	 	Where the Sponsor serves as Custodian, the Trust shall only be invested in
investment alternatives the Custodian makes available in the ordinary course of
business unless the Custodian is directed otherwise by the Employer, the Trustee or any
properly designated agent thereof. The Custodian under applicable Federal or state
laws, may limit the investment alternatives including but not limited to savings
accounts, savings certificates, or in other savings instruments offered by the Sponsor
or its affiliates. Such investments shall be made at the direction of the Employer or
Trustee(s) or other Named Investment Fiduciary and the Custodian shall have no
responsibility for the propriety of such investments.

11.15 Prohibited Transactions

The Trustee, Custodian, Employer, investment manager, the Named Investment Fiduciary or Participant
shall not knowingly enter into any transaction, engage in any activity, or direct the purchase or
acquisition of any investment with respect to the Plan which would constitute a prohibited
transaction under ERISA or the Code for which a statutory or administrative exemption is not
available. The Trustee or Custodian shall not receive any investment advisory or other fees from a
regulated investment company (a mutual fund) which duplicates investment management fees charged by
the Trustee. The Trustee or Custodian shall be permitted to receive fees from a regulated
investment company if the Trustee or Custodian has made a good faith determination that the receipt
of such fees is not a prohibited transaction pursuant to any guidance or exemption issued by the
Department of Labor from time to time.

11.16 Exclusive Benefit Rules

No part of the Trust shall be used for, or diverted to, purposes other than for the exclusive
benefit of Participants, former Participants with a vested interest, and the Beneficiary or
Beneficiaries of deceased Participants who have in a vested interest in the Plan at death.

11.17 Assignment And Alienation Of Benefits

Except as provided in paragraphs 10.7 or 10.9, no right or claim to, or interest in, any part of
the Plan, or any payment from the Plan, shall be assignable, transferable, or subject to sale,
mortgage, pledge, hypothecation, commutation, anticipation, garnishment, attachment, execution, or
levy of any kind. Neither the Trustee or Custodian shall recognize any attempt to assign,
transfer, sell, mortgage, pledge, hypothecate, commute, or anticipate the same, except to the
extent required by law. The preceding sentences shall also apply to the creation, assignment, or
recognition of a right to any benefit payable with respect to a Participant pursuant to a domestic
relations order, unless such order is determined to be a Qualified Domestic Relations Order, as
defined in Code Section 414(p), or any domestic relations order entered before January 1, 1985
which the Plan’s attorney and Plan Administrator deem to be qualified.

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Notwithstanding any provision of this paragraph 11.17 to the contrary, an offset to a Participant’s
Vested Account Balance against an amount that the Participant is ordered or required to pay the
Plan with respect to a judgment, order or decree issued, or a settlement entered into, on or after
August 5, 1997, shall be permitted in accordance with Code Sections 401(a)(13)(C) and (D).

11.18 Liquidation Of Assets

If the Trustee and/or Custodian must liquidate assets in order to make distributions, transfer
assets, or pay fees, expenses or taxes assessed against all or a part of the Trust, and the
Trustee/Custodian is not instructed as to the liquidation of such assets, assets will be liquidated
on a pro rata basis across all the investment alternatives in the Trust. The Trustee and /or
Custodian are expressly authorized to liquidate assets in order to satisfy the Trust’s obligation
to pay the Trustee and /or Custodian’s fees or other compensation if such fees or compensation is
not paid on a timely basis.

11.19 Resignation And Removal

The Trustee may resign upon thirty (30) days written notice to the Employer. The Employer may
remove the Trustee upon sixty (60) days written notice to the Trustee, or such shorter period of
time as may be agreed to by the parties. The Employer may discontinue its participation in this
Prototype Defined Contribution Plan effective upon thirty (30) days written notice to the Sponsor.
In such event the Employer shall, prior to the effective date thereof, amend the Plan to eliminate
any reference to this Prototype Defined Contribution Plan and appoint a successor
trustee/custodian. The Trustee shall deliver the Trust to its successor on the effective date of
the resignation or removal, or as soon thereafter as practicable, provided that this shall not
waive any lien the Trustee may have upon the Trust for its compensation or expenses. Following the
effective date of the notice of termination, the Trustee shall have no further responsibility for
providing services to the Employer or the Plan. If the Employer fails to amend the Plan and
appoint a successor trustee/custodian within the said thirty (30) days, or such longer period as
the Trustee may specify in writing, the Plan shall be deemed individually designed and the highest
ranking officer of the Employer shall be deemed the successor trustee or custodian as the case may
be. In such event, the Trustee may but shall not be required to continue to hold custody of the
assets of the Plan until such time as appropriate arrangements have been made for the security of
the Plan assets, but for a discretionary Trustee, upon notification thereof to Plan Participants,
shall no longer have any responsibility for the investment of Plan assets.

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ARTICLE XII

TOP-HEAVY PROVISIONS

12.1 Applicability Of Rules

If the Plan is or becomes Top-Heavy in any Plan Year beginning after 1983, the provisions of this
Article will supersede any conflicting provisions in the Plan or Adoption Agreement.

12.2 Minimum Benefit

Notwithstanding any other provision in the Employer’s Plan, for any Plan Year in which the Plan is
Top-Heavy, each Participant shall accrue a minimum benefit in accordance with this paragraph. The
minimum benefit shall be provided solely by Employer contributions (without regard to any Social
Security contribution) and expressed as a Straight Life Annuity commencing at Normal Retirement
Age. Such minimum shall be computed using the definition of Compensation provided at
paragraph 1.15, as limited by Code Section 401(a)(17).

	 	(a)	 	Minimum Top-Heavy Benefits for a Defined Benefit Plan or for Paired Defined
Benefit Plans — When the Employer maintains one Plan or a combination of Paired or
non-Paired Defined Benefit Plans which are Top-Heavy or Super Top-Heavy, the Employer
shall provide a minimum non-integrated Accrued Benefit for each Year of Top-Heavy
Service while a Participant of two percent (2%) of such Participant’s Average Annual
Compensation for the five (5) consecutive years for which the Participant had the
highest Top-Heavy Compensation. The aggregate Compensation for the years during such
five-year period in which the Participant was credited with a Year of Service will be
divided by the number of such years in order to determine Average Annual Compensation.
No additional benefit accruals shall be provided under this paragraph on behalf of a
Participant attributable to Employer contributions to the extent that the total
accruals on behalf of a Participant will provide a benefit expressed as a life annuity
commencing at Normal Retirement Age which equals or exceeds twenty percent (20%) of
such Participant’s highest Average Annual Compensation for the five (5) consecutive
years for which the Participant had the highest Compensation. Average Annual
Compensation shall be calculated as above.
	 
	 	(b)	 	Minimum Top-Heavy Benefits for Paired Defined Contribution and Defined Benefit
Plans where the Plans are not Super Top-Heavy —  The minimum Top-Heavy benefit set
forth in (a) above shall apply except that the minimum non-integrated Accrued Benefit
shall be three percent (3%) of the highest five (5) consecutive year Average Annual
Compensation as calculated in (a) above for each Participant in this Plan, not to
exceed a cumulative Accrued Benefit of thirty percent (30%).
	 
	 	(c)	 	Minimum Top-Heavy Contributions for Paired Defined Contribution and Defined
Benefit Plans where the Plans are Super Top-Heavy —  The minimum Top-Heavy benefit set
forth in (a) above shall apply to any Participant in this Plan without regard to
whether the Participant also participates in Paired Defined Contribution Plan #01001,
#01002 or #01009.

If the Employer does sponsor or has sponsored a Defined Contribution Plan, the Top-Heavy minimum
benefit may be required to be higher than two percent (2%) per Year of Top-Heavy Service. Any
increase in Top-Heavy minimum benefits or contributions, under this plan or the Defined
Contribution Plan, shall be specified in Section VIII of the Adoption Agreement detailing the
actual amounts of the increase. The increased amount, under this Plan, shall not exceed three
percent (3%) per Year of Top-Heavy Service or an aggregate of thirty percent (30%) of Average
Annual Compensation.

Each Participant who completes a Year of Service with the Employer shall be entitled to the minimum
benefit accrual from Employer contributions for such Plan Year. The minimum benefit applies even
though under other Plan provisions the Participant would not otherwise be entitled to a benefit
accrual, or would have received a lesser accrual for the year because the Participant fails to make
mandatory contributions to the Plan, the Participant’s Compensation is less than a stated amount,
the Participant is not employed on the last day of the accrual computation period, or the Plan is
integrated with Social Security. If elected in the Adoption Agreement, the Employer may restrict
the minimum accrual to non-Key Participants. The minimum benefit required [to the extent required
to be nonforfeitable under Code Section 416(b)] may not be suspended or forfeited under Code
Sections 411(a)(3)(B) or 411(a)(3)(D). All accruals of Employer-derived benefits, whether or not
attributable to years for which the Plan is Top-Heavy, may be used in computing whether the above
minimum accrual requirements are in the aggregate satisfied.

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If the form of benefit is other than a Straight Life Annuity, the Employee must receive an amount
that is the Actuarial Equivalent of the minimum Straight Life Annuity benefit. If the benefit
commences at a date other than at Normal Retirement Age, the Employee must receive at least an
amount that is the Actuarial Equivalent of the minimum Straight Life Annuity benefit commencing at
Normal Retirement Age.

12.3 Minimum Vesting

For any Plan Year in which this Plan is Top-Heavy, the minimum vesting schedule elected by, or
deemed elected by, the Employer in Section IX(B) of the Adoption Agreement will automatically apply
to the Plan. The minimum vesting schedule applies to all benefits within the meaning of Code
Section 411(a)(7) except those attributable to Employee contributions, including benefits accrued
before the effective date of Code Section 416 and benefits accrued before the Plan became
Top-Heavy. Further, no reduction in a Participant’s vested benefits may occur in the event the
Plan’s status as Top-Heavy changes for any Plan Year. However, this paragraph does not apply to
the Accrued Benefits of any Employee who does not have an Hour of Service after the Plan initially
becomes Top-Heavy and such Employee’s Accrued Benefit attributable to Employer contributions and
forfeitures will be determined without regard to this paragraph.

12.4 Limitations On Benefits

For any Limitation Year beginning before January 1, 2000, in any Plan Year in which Paired Plans
are top-heavy [the Top-Heavy Ratio exceeds sixty percent (60%)] the denominators of the Defined
Benefit Fraction (as defined in paragraph 1.20) and Defined Contribution Fraction (as defined in
paragraph 1.22) shall be computed using 100% of the dollar limitation instead of 125%. In this
case, additional Top-Heavy minimum benefits may not be provided.

For any Limitation Year beginning before January 1, 2000, in any Plan Year in which the Top-Heavy
Ratio exceeds ninety percent (90%) (i.e., the Plan becomes Super Top-Heavy), the denominators of
the Defined Benefit Fraction (as defined in paragraph 1.20) and Defined Contribution Fraction (as
defined in paragraph 1.22) shall be computed using 100% of the dollar limitation instead of 125%.
In this case, additional Top-Heavy minimum benefits may not be provided.

12.5 Benefit Reduction Resulting From Aggregation

Notwithstanding any other provision to the contrary, no Participant shall accrue an Annual Benefit
(as defined in paragraph 1.6 of the Plan) in excess of the adjusted Maximum Permissible Amount.
For purposes of this provision, the adjusted Maximum Permissible Amount is:

	 	(a)	 	for Limitation Years beginning before January 1, 2000, the lesser of the
Maximum Permissible Amount (defined in paragraph 1.54), of the Plan or the Code Section
415(e) aggregated limitation. For purposes of this paragraph, the Code Section 415(e)
aggregated limitation is the product of:

	 	(1)	 	one (1) minus the Defined Contribution Fraction (as defined in
paragraph 1.22 of the Plan), and
	 
	 	(2)	 	the lesser of 125% of the adjusted dollar limitation (as defined
below), or 140% of the Participant’s Highest Average Compensation; or

	 	(b)	 	for Limitation Years beginning on or after January 1, 2000, the Maximum
Permissible Amount as defined in paragraph 1.54 of the Plan.
	 
	 	(c)	 	The adjusted dollar limitation is $90,000 payable in the form of a Straight
Life Annuity commencing at the Participant’s Social Security Retirement Age, as defined
in paragraph 1.83 of the Plan.
	 
	 	(d)	 	If the Participant has less than ten (10) Years of Participation (as defined in
paragraph 1.105 of the Plan) in the Plan, the Defined Benefit Plan Dollar Limitation
shall be multiplied by a fraction (i) the numerator of which is the number of Years (or
part thereof) of Participation in the Plan, and (ii) the denominator of which is ten
(10). To the extent provided in Regulations or in other guidance issued by the Internal
Revenue Service, the preceding sentence shall be applied separately with respect to
each change in the benefit structure of the Plan. If the Participant has less than ten
(10) Years of Service with the Employer, the Compensation limitation shall be
multiplied by a fraction (i) the numerator of which is the number of Years (or part
thereof) of Service with the Employer and the denominator of which is ten (10). The
adjustments of this sub-paragraph (d) shall be applied in the denominator of the
Defined Benefit Fraction based upon Years of Service. For purposes of computing the
Defined Benefit Plan Fraction only, Years of Service shall include future years (or
part

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	 	 	 	thereof) occurring before the Participant’s Normal Retirement Age. Such future Years of Service shall
include the year which contains the date the Participant reaches Normal Retirement
Age, or the year in which the Participant terminates employment, if earlier.
	 
	 	(e)	 	If the Annual Benefit of the Participant commences before the Participant’s
Social Security Retirement Age, but on or after age sixty-two (62), the adjusted dollar
limitation is reduced above, if necessary, shall be determined as follows:

	 	(1)	 	If a Participant’s Social Security Retirement Age is sixty-five
(65), the dollar limitation for benefits commencing on or after age sixty-two
(62) is determined by reducing the adjusted dollar limitation by 5/9 of one
percent (1%) for each month by which benefits commence before the month in which
the Participant attains age sixty-five (65).
	 
	 	(2)	 	If a Participant’s Social Security Retirement Age is greater than
sixty-five (65), the dollar limitation for benefits commencing on or after age
sixty-two (62) is determined by reducing the adjusted dollar limitation by 5/9
of one percent (1%) for each of the first thirty-six (36) months and 5/12 of one
percent (1%) for each of the additional months [up to twenty-four (24) months]
by which benefits commence before the month of the Participant’s Social Security
Retirement Age.

	 	(f)	 	If the Annual Benefit of a Participant commences prior to age sixty-two (62),
the adjusted dollar limitation shall be an Annual Benefit that is the Actuarial
Equivalent of the Defined Benefit Dollar Limitation for age sixty-two (62), as
determined above, reduced for each month by which benefits commence before the month in
which the Participant attains age sixty-two (62). The Annual Benefit beginning prior
to age sixty-two (62) shall be determined as the lesser of the equivalent Annual
Benefit computed using the interest rate and mortality table (or other tabular factor)
equivalence for early retirement benefits and the equivalent Annual Benefit computed
using a five percent (5%) interest rate and the Applicable Mortality Table as defined
in paragraph 1.10 of the Plan. Any decrease in the adjusted Defined Benefit Dollar
Limitation determined in accordance with this provision (f) shall not reflect any
mortality decrement to the extent that the benefits will not be forfeited upon the
death of the Participant.
	 
	 	(g)	 	If the Annual Benefit of a Participant commences after the Participant’s Social
Security Retirement Age, the Defined Benefit Dollar Limitation as reduced in (d) above,
if necessary, shall be increased so that it is the Actuarial Equivalent of an Annual
Benefit of such dollar limitation beginning at the Participant’s Social Security
Retirement Age. The equivalent Annual Benefit beginning after Social Security
Retirement Age shall be determined as the lesser of the equivalent Annual Benefit
computed using the interest rate and mortality table (or other tabular factor)
specified in the Plan for purposes of determining Actuarial Equivalence for delayed
retirement benefits, and the equivalent annual benefit computed using a five percent
(5%) interest rate assumption and the Applicable Mortality Table as defined in
paragraph 1.10 of the Plan.
	 
	 	(h)	 	Notwithstanding anything else in this Article to the contrary, the benefit
otherwise accrued or payable to a Participant under this Plan shall be deemed not to
exceed the Defined Benefit Dollar Limitation if:

	 	(1)	 	the retirement benefits payable for a Plan Year under any form of
benefit with respect to such Participant under this Plan and all other defined
benefit plans (regardless of whether terminated) ever maintained by the employer
do not exceed $1,000 multiplied by the Participant’s number of Years of Service
or parts thereof [not to exceed ten (10)] with the Employer; and
	 
	 	(2)	 	the Employer has not at any time maintained a Defined
Contribution Plan, a Welfare Benefit Plan, or an individual medical account in
which the Participant participated.
	 
	 	 	 	Notwithstanding the above, in the case of an individual who was a Participant in one
or more Defined Benefit Plans of the Employer as of the first day of the first
Limitation Year beginning after December 31, 1986, the adjusted Maximum Permissible
Amount shall not be less than a Participant’s TRA ‘86 Accrued Benefit, as defined at
paragraph 1.89.

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	 	 	 	Notwithstanding the above, in the case of an individual who was a Participant in one
or more Defined Benefit Plans of the Employer as of the first Limitation Year
beginning after December 31, 1994, the adjusted Maximum Permissible Amount shall not
be less than the Participant’s Retirement Protection Act of 1994 (RPA ‘94) Old Law
Benefit. The Participant’s RPA ‘94 old law benefit is the Participant’s Accrued
Benefit under the terms of the Plan as of the close of the last Limitation Year
beginning before January 1, 1995 (the RPA ‘94 freeze date), determined as if the
Participant had separated from Service as of that date. In determining the amount of
a Participant’s RPA ‘94 old law benefit, the following shall be disregarded:

	 	(i)	 	any Plan amendment increasing benefits adopted after the RPA ‘94
freeze date; and
	 
	 	(ii)	 	any cost of living adjustments that become effective after such
date.

A Participant’s RPA ‘94 Old Law Benefit is not increased after the RPA ‘94 freeze date, but if the
limitations of Code Section 415 as in effect on December 7, 1994 are less than the limitations that
were applied to determine the Participant’s RPA ‘94 Old Law Benefit on the RPA ‘94 freeze date,
then the Participant’s RPA ‘94 Old Law Benefit will be reduced in accordance with such reduced
limitation. If at any date after the RPA ‘94 freeze date the Participant’s total Plan benefit,
before the application of Code Section 415, is less than the Participant’s RPA ‘94 Old Law Benefit,
the RPA ‘94 Old Law Benefit will be reduced to the Participant’s total Plan benefit.

If the RPA ‘94 benefit was reduced during the period between the RPA ‘94 freeze date and the first
day of the first Limitation Year beginning on or after January 1, 2000 because of Annual Additions
credited to a Participant’s account in an existing Defined Contribution Plan, the RPA ‘94 Old Law
Benefit may increase to the RPA ‘94 freeze date level as of the first day of the first Limitation
Year beginning on or after January 1, 2000.

Effective on January 1, 1988, and each January 1 thereafter, the $90,000 limitation above will be
automatically adjusted to the new dollar limitation determined by the Commissioner of Internal
Revenue for that calendar year. The new limitation will apply to Limitation Years ending within
the calendar year of the date of the adjustment.

In the case of a Participant who has separated from Service, a Participant’s Highest Average
Compensation will be automatically adjusted by multiplying such Compensation by the cost of living
adjustment factor prescribed by the Secretary of the Treasury under Code Section 415(d) in such
manner as the Secretary shall prescribe. The adjusted Compensation amount will apply to Limitation
Years ending within the calendar year of the date of the adjustment.

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ARTICLE XIII

AMENDMENT AND TERMINATION

13.1 Amendment By Sponsor

The Sponsor may amend any or all provisions of this Prototype Defined Benefit Plan at any time
without obtaining the approval or consent of any Employer which has adopted this Plan and Trust
provided that no amendment shall authorize or permit any part of the corpus or income of the Plan
to be used for or diverted to purposes other than for the exclusive benefit of Participants and
their Beneficiaries, or eliminate an optional form of distribution. For purposes of Sponsor
amendments, the mass submitter of this Basic Plan Document #02 shall be recognized as the agent of
the Sponsor. If the Sponsor does not adopt the amendments made by the mass submitter, it will no
longer be identical to or a minor modifier of the mass submitter plan.

13.2 Amendment By Employer

The Employer may amend any option in the Adoption Agreement, and may include language as permitted
in the Adoption Agreement to satisfy Code Section 415 or to avoid duplication of minimums under
Code Section 416 because of the required aggregation of multiple plans. The Employer may also
adopt certain model amendments published by the Internal Revenue Service which specifically provide
that their adoption will not cause the Plan to be treated as an individually designed plan for
which the Employer must obtain a separate determination letter. An Employer that amends the Plan
for any other reason, including a waiver of the minimum funding requirement under Code Section
412(d), will no longer participate in this Prototype Plan program and will be considered an
individually designed Plan. In such event, all references to the institution or company as Sponsor
shall be deemed null and void.

13.3 Protected Benefits

An amendment (including the adoption of this Plan as a restatement of an existing Plan) may not
decrease a Participant’s accrued benefit or account balance except to the extent permitted under
Code Section 412(c)(8), and may not reduce or eliminate a Code Section 411(d)(6) protected benefit
(except as provided by the Code or the Regulations issued thereunder) determined immediately prior
to the date of adoption, or if later, the Effective Date of the amendment. Where this Plan is
being adopted to amend another plan that contains a protected benefit not provided for in this
document, the Employer may attach an addendum to the Adoption Agreement that describes such
protected benefit which shall be incorporated in the Plan.

13.4 Plan Termination

Employers shall have the right to terminate their Plans at any time. The Sponsor shall be given
written notice of the Employer intention to terminate the Plan sixty (60) days in advance. If the
Plan is terminated or partially terminated, the rights of all affected Employees to benefits
accrued to the date of such termination or partial termination (to the extent funded as of such
date) shall vest and become nonforfeitable. In the event of a partial termination, only those who
separate from Service shall be fully vested. In the event of termination, the Employer shall
direct the Trustee with respect to the distribution of benefits to or for the exclusive benefit of
Participants or their beneficiaries.

The Trustee shall dispose of the Fund in accordance with the written directions of the Plan
Administrator, provided that no liquidation of assets and payment of benefits, (or provision
therefore), shall actually be made by the Trustee until after it is established by the Employer in
a manner satisfactory to the Trustee, that the applicable requirements, if any, of ERISA and the
Code governing the termination of employee benefit plans, have been or are being, complied with, or
that appropriate authorizations, waivers, exemptions, or variances have been, or are being
obtained.

13.5 Allocation Of Assets Upon Termination

If the Plan is terminated, or if there is partial termination, the Fund shall be allocated on the
basis of the costs of benefits due active and retired Participants, their Spouses or beneficiaries
with respect to Service to the date of termination or partial termination. If the Fund cannot
provide such costs in full, it shall be allocated in the following order of priority, allocations
within the last category for which assets are available, being made in proportion to the costs
within that category for each Participant.

	 	(a)	 	Benefits accrued for Participants from Employee contributions.
	 
	 	(b)	 	Costs for Participants who have been receiving benefits or who have been
eligible to receive Normal Retirement Benefits for more than three (3) years as of the
date of termination.
	 
	 	(c)	 	Costs for Participants who have been receiving benefits or who have been
eligible to receive Normal Retirement Benefits for less than three (3) years as of the
date of termination.

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	 	(d)	 	Costs for Participants who were eligible to receive early retirement benefits
as of the date of termination.
	 
	 	(e)	 	Costs for all other benefits insured by the Pension Benefit Guaranty
Corporation.
	 
	 	(f)	 	Costs for any other benefits.

If the allocation made pursuant to (e) and (f) above results in discrimination in favor of
Participants who are officers, shareholders, or highly compensated, then the assets allocated under
(e) and (f) shall be reallocated to avoid such discrimination. All amounts allocated under this
paragraph shall be nonforfeitable. After allocation, the Employer shall determine whether to make
payments from the Fund to the extent the monies so allocated are sufficient, or whether to purchase
immediate or deferred annuities from an insurance company in whatever amounts the monies so
allocated will provide. If the Fund has sufficient assets to cover the cost of all Accrued
Benefits and full settlement of all such benefits is made through the purchase of a group annuity
contract or through the purchase and distribution of individual annuity contracts or otherwise,
then any balance remaining in the Fund may be either refunded to the Employer or allocated to
Participants as specified in Section XIX of the Adoption Agreement. In the event of a reversion to
the Employer, the Employer has the right to either increase benefits under this Plan by twenty
percent (20%) of the reversion amount or transfer twenty-five percent (25%) of the reversion amount
to a replacement plan.

If upon Plan termination all Plan liabilities are satisfied, any excess assets arising from
erroneous actuarial computation will revert to the Employer.

13.6 Early Termination Provisions

	 	(a)	 	Prior to the date the pre-termination restrictions in paragraph 13.5 are
effective, Employer contributions on behalf of any of the twenty-five (25) highest paid
Employees at the time the Plan is established and whose anticipated Annual Benefit
exceeds $1,500 will be restricted as provided in paragraph 13.6(b) upon the occurrence
of the following conditions:

	 	(1)	 	the Plan is terminated within ten (10) years after its
establishment;
	 
	 	(2)	 	the benefits of such highest paid Employee become payable within
ten (10) years after the establishment of the Plan; or
	 
	 	(3)	 	if Code Section 412 [without regard to Code Section 412(h)(2)]
does not apply to this Plan, the benefits of such Employee become payable after
the Plan has been in effect for ten years, and the full current costs of the
Plan for the first ten (10) years have not been funded.

	 	(b)	 	Employer contributions which may be used for the benefit of an Employee
described in paragraph 13.6(a) shall not exceed the greater of $20,000, or twenty
percent (20%) of the first $50,000 of the Employee’s Compensation multiplied by the
number of years between the date of the establishment of the Plan and:

	 	(1)	 	the date of the termination of the Plan if 13.6(a)(1) applies,
	 
	 	(2)	 	the date the benefits become payable if 13.6(a)(2) applies, or
	 
	 	(3)	 	the date of the failure to meet the full current costs if
13.6(a)(3) applies.

	 	(c)	 	If the Plan is amended so as to increase the benefit actually payable in event
of the subsequent termination of the Plan, or the subsequent discontinuance of
contributions thereunder, then the provisions of the above paragraphs shall be applied
to the Plan as so changed as if it were a new Plan established on the date of the
change. The original group of twenty-five (25) Employees [as described in 13.6(a)
above] will continue to have the limitations in 13.6(b) apply as if the Plan had not
been changed. The restrictions relating to the change of Plan should apply to benefits
or funds for each of the twenty-five (25) highest paid Employees on the Effective Date
of the change except that such restrictions need not apply with respect to any Employee
in this group for whom the normal annual pension or annuity provided by the Employer
contributions prior to that date and during the

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	 	 	 	ensuing ten (10) years, based on his or
her rate of Compensation on that date, could not exceed $1,500.
	 
	 	 	 	The Employer contributions which may be used for the benefit of the new group of
twenty-five (25) Employees will be limited to the greater of:

	 	(1)	 	the Employer contributions (or funds attributable thereto) which
would have been applied to provide the benefits for the Employee if the previous
Plan had been continued without change,
	 
	 	(2)	 	$20,000, or
	 
	 	(3)	 	the sum of (A) the Employer contributions (or funds attributable
thereto) which would have been applied to provide benefits for the Employee
under the previous Plan if it had been terminated the date before the Effective
Date of change, and (B) an amount computed by multiplying the number of years
for which the current costs of the Plan after that date are met by twenty
percent (20%) of his or her annual Compensation, or $10,000, whichever is
smaller.

	 	(d)	 	Notwithstanding the above limitations, the following limitations will apply if
they would result in a greater amount of Employer contributions to be used for the
benefit of the restricted Employee:

	 	(1)	 	in the case of a substantial owner [as defined in Section
4022(b)(5) of the Employee Retirement Income Security Act, (ERISA)], a dollar
amount which equals the Present Value of the benefit guaranteed for such
Employee under Section 4022 of ERISA, or if the Plan has not terminated, the
Present Value of the benefit that would be guaranteed if the Plan terminated on
the date the benefit commences, determined in accordance with regulations of the
Pension Benefit Guaranty Corporation (PBGC), and
	 
	 	(2)	 	in the case of the other restricted Employees, a dollar amount
which equals the present value of the maximum benefit described in Section
4022(b)(3)(B) of ERISA (determined on the earlier of the date the Plan
terminates or the date benefits commence, and determined in accordance with
regulations of the PBGC) without regard to any other limitations in Section 4022
of ERISA.

	 	(e)	 	If, as of the date of this Plan terminates, the value of Plan assets is not
less than the Present Value of all Accrued Benefits (whether or not nonforfeitable)
distributions of assets to each Participant equal to the Present Value of that
Participant’s Accrued Benefit will not be discriminatory if the formula for computing
benefits as of the date of termination is not discriminatory. All Present Values and
the value of Plan assets will be computed using assumptions satisfying Section 4044 of
ERISA. Upon the occurrence of the above situation, the amount by which the value of
Plan assets exceeds the Present Value of Accrued Benefits (whether or not
nonforfeitable) will revert to the Employer.
	 
	 	(f)	 	Notwithstanding the otherwise applicable restrictions on distributions of
benefits incident to early Plan termination, a Participant’s otherwise restricted
benefit may be distributed in full upon depositing with an acceptable depository
property having a fair market value equal to 125% of the amount which would be
repayable had the Plan terminated on the date of the lump sum distribution. If the
market value of the property held by the depository falls below 110% of the amount
which would be repayable if the Plan were then to terminate, additional property
necessary to bring the value of the property held by the depository up to 125% of such
amount will be deposited.

13.7 Early Termination Restrictions

In the event of Plan termination, the benefit of any Highly Compensated active or former Employee
is limited to a benefit that is nondiscriminatory under Code Section 401(a)(4).

	 	(a)	 	For Plan Years beginning on or after the date set forth in the Adoption
Agreement, benefits distributed to any of the twenty-five (25) most Highly Compensated
active and former Highly Compensated Employees, with the greatest Compensation in the
current or any prior Plan Year, are restricted such that the annual payments are no
greater than an amount equal to the payment that would be made on behalf of the
Employee under a Straight Life Annuity that is the Actuarial 

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	 	 	 	Equivalent of the sum of
the Employee’s Accrued Benefit and the Employee’s other benefits under the Plan [other
than a social
security supplement within the meaning of Regulations Section 1.411(a)-7(c)(4)(ii)],
and the amount the Employee is entitled to receive under social security.

	 	(b)	 	The preceding sub-paragraph (a) shall not apply if:

	 	(1)	 	after payment of the benefit to an Employee described in the
preceding paragraph, the value of Plan assets equals or exceeds 110% of the
value of current liabilities, as defined in Code Section 412(1)(7), or
	 
	 	(2)	 	the value of the benefits for an Employee described above is less
than one percent (1%) of the value of current liabilities before distribution,
or
	 
	 	(3)	 	the value of the benefits payable under the Plan to an Employee
described above does not exceed $3,500.

	 	(c)	 	An Employee’s otherwise restricted benefit may be distributed in full to the
affected Employee if prior to the receipt of the restricted amount, the Employee enters
into a written agreement with the Plan Administrator to secure repayment to the Plan of
the restricted amount. The restricted amount is the excess of the amounts distributed
to the Employee (accumulated with reasonable interest) over the amounts that could have
been distributed to the Employee under a Straight Life Annuity described in
sub-paragraph (a) above (accumulated with reasonable interest). The Employee may
secure repayment of the restricted amount upon distribution by:

	 	(1)	 	entering into an agreement for promptly depositing in escrow with
an acceptable depository property having a fair market value equal to at least
125% of the restricted amount,
	 
	 	(2)	 	providing a bank letter of credit in an amount equal to at least
100% of the restricted amount, or
	 
	 	(3)	 	posting a bond equal to at least 100% of the restricted amount.
	 
	 	 	 	If the Employee elects to post the bond, the bond will be furnished by an insurance
company, bonding company or other surety for federal bonds.

	 	(d)	 	The escrow arrangement may provide that an Employee may withdraw amounts in
excess of 125% of the restricted amount. If the market value of the property in the
escrow account falls below 110% of the remaining restricted amount, the Employee must
deposit additional property to bring the value of the property held by the depository
up to 125% of the restricted amount. The escrow arrangement may provide that the
Employee may have the right to receive any income from the property placed in escrow,
subject to the Employee’s obligation to deposit additional property, as set forth in
the preceding sentence.
	 
	 	(e)	 	A surety or bank may release any liability on a bond or letter of credit in
excess of 100% of the restricted amount.
	 
	 	(f)	 	If the Plan Administrator certifies to the depository, surety or bank that the
Employee (or the Employee’s estate) is no longer obligated to repay any restricted
amount, the depository may redeliver to the Employee any property held under the escrow
agreement, and a surety or bank may release any liability on an Employee’s bond or
letter of credit.

For purposes of this paragraph, benefit includes loans in excess of the amount set forth in Code
Section 72(p)(2)(A), any periodic income, any withdrawal values payable to a living Employee, and
any death benefits not provided for by insurance on the Employee’s life.

13.8 Qualification Of Employer’s Plan

If the adopting Employer fails to obtain or retain applicable Internal Revenue Service
qualification as a Prototype Plan, such Employer’s Plan shall no longer participate in this
Prototype Defined Benefit Plan and will be considered an individually designed plan.

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13.9 Mergers And Consolidations

	 	(a)	 	In the case of any merger or consolidation of the Employer’s Plan with, or
transfer of assets or liabilities of the Employer’s Plan to any other plan,
Participants in the Employer’s Plan shall be entitled to receive benefits immediately
after the merger, consolidation, or transfer which are equal to or greater than the
benefits they would have been entitled to receive immediately before the merger,
consolidation, or transfer if the Plan had then terminated.
	 
	 	(b)	 	Any corporation into which the Trustee, Custodian or any successor thereto may
be merged or with which it may be consolidated, or any corporation resulting from any
merger or consolidation to which the Trustee, Custodian or any successor thereto may be
a party, or any corporation to which all or substantially all the business of the
Trustee, Custodian or any successor thereto may be transferred, shall automatically be
the successor of such Trustee without the filing of any instrument or performance of
any further act, before any court.

13.10 Resignation And Removal

The Trustee/Custodian may resign by written notice to the Employer which shall be effective sixty
(60) days after delivery. The Employer may also discharge any Trustee/Custodian upon sixty (60)
days notice. In either case, the Employer will appoint a successor trustee or custodian. The
Trustee/Custodian shall deliver the Fund to its successor on the effective date of the resignation
or removal, or as soon thereafter as practicable, provided that this shall not waive any lien the
Trustee/Custodian may have upon the Fund for its compensation or expenses. The Employer may
discontinue its participation in this Prototype Plan effective upon sixty (60) days written notice
to the Sponsor. In such event the Employer shall, prior to the effective date thereof, amend the
Plan to eliminate any reference to this Prototype Plan.

Following the effective date of the notice of termination, the Trustee/Custodian shall have no
further responsibility for providing services to the Employer or the Plan. If the Employer fails
to amend the Plan and appoint a successor trustee/custodian within the said sixty (60) days, or
such longer period as the Trustee/Custodian may specify in writing, the Plan shall be deemed
individually designed and the Employer shall be deemed the successor trustee/custodian as the case
may be. In such event, the Sponsor may continue to hold custody of the assets of the Plan until
such time as appropriate arrangements have been made for the security of the Plan assets, but upon
notification thereof to Plan Participants, shall no longer have any responsibility for the
investment of Plan assets.

13.11 Qualification Of Prototype

The Sponsor intends that this Prototype Defined Benefit Plan will meet the requirements of the Code
as a qualified Defined Benefit Plan. Should the Commissioner of Internal Revenue or any delegate
of the Commissioner at any time determine that the Prototype Defined Benefit Plan fails to meet the
requirements of the Code, the Sponsor will amend the Basic Plan Document #02 to maintain its
qualified status.

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ARTICLE XIV

GOVERNING LAW

14.1 Governing Law

Construction, validity and administration of the Prototype Defined Benefit Plan, and any Employer
Plan established under the terms of this Plan and accompanying Adoption Agreement, shall be
governed by Federal law to the extent applicable and to the extent not applicable by the laws of
the State or Commonwealth in which the principal office of the Prototype Sponsor or its affiliate
is located.

14.2 State Community Property Laws

The terms and conditions of the Prototype Defined Benefit Plan and any Employer’s Plan established
under the terms of this Basic Plan Document #02 and accompanying Adoption Agreement shall be
applicable without regard to community property laws of any state.

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AMENDMENT

TO THE

PROTOTYPE DEFINED BENEFIT PLAN

BASIC PLAN DOCUMENT #02

The Employer named in the Adoption Agreement hereby amends the Plan to reflect certain
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”).
This amendment is intended as a good faith compliance with the requirements of EGTRRA and
is to be construed in accordance with EGTRRA and guidance issued thereunder. This
amendment shall supersede the provisions of the Basic Plan Document #02 to the extent
those provisions are inconsistent with the provisions of this amendment. The Basic Plan
Document #02 is hereby amended as follows:

	1.	 	Paragraph 1.15 of the Basic Plan Document #02 entitled “Compensation”, under the
paragraph entitled “Limitation on Compensation” is amended effective for Plan Years
beginning after December 31, 2001, by the addition of the following at the end of
the paragraph:
	 
	 	 	“Unless specified otherwise in the Adoption Agreement, for purposes of determining
benefit accruals in Plan Years ending after December 31, 2001, Compensation even
for Plan Years ending before the 2001 Plan Year shall be $200,000, as adjusted.
The cost-of-living adjustment in effect for a calendar year applies to annual
Compensation for the determination period that begins with or within such calendar
year.”
	 
	2.	 	Paragraph 1.19 of the Basic Plan Document #02 entitled “Defined Benefit Dollar
Limitation” is amended by the addition of the following sub-paragraph at the end
thereof:
	 
	 	 	“For Limitation Years ending after December 31, 2001, the “Defined Benefit Dollar
Limitation” is $160,000, as adjusted. Said Defined Benefit Dollar Limitation shall
be effective January 1 of each year and is determined under Code Section 415(d) in
such manner as the Secretary shall prescribe, and is payable in the form of a
Straight Life Annuity. A limitation as adjusted under Code Section 415(d) will
apply to Limitation Years ending with or within the calendar year for which the
adjustment applies.”
	 
	3.	 	Paragraph 1.34 of the Basic Plan Document #02 entitled “Eligible Retirement Plan”
is amended by the addition of the following at the end thereof:
	 
	 	 	“The following shall apply only to distributions made after December 31, 2001.
For purposes of the Direct Rollover provisions in paragraph 4.5 of the Plan, an
Eligible Retirement Plan shall also mean an annuity contract described in Code
Section 403(b) and an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of
a state or political subdivision of a state which agrees to separately account for
amounts transferred into such plan from this Plan. The definition of Eligible
Retirement Plan shall also apply in the case of a distribution to a surviving
Spouse, or to a Spouse or former Spouse who is the alternate payee under a
Qualified Domestic Relations Order, as defined in Code Section 414(p).
	 
	 	 	For purposes of the Direct Rollover provisions in paragraph 4.5 of the Plan, a
portion of the distribution shall not fail to be an Eligible Rollover Distribution
merely because the portion consists of Voluntary After-tax Contributions that are
not includible in gross income. However, such portion may be transferred only to
an individual retirement account or annuity described in Code Section 408(a) or
(b), or to a qualified Defined Contribution Plan described in Code Section 401(a)
or 403(a) that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is includible in
gross income and the portion of such distribution which is not so includible.”
	 
	4.	 	Paragraph 1.50 of the Basic Plan Document #02 entitled “Key Employee”, is deleted
in its entirety and replaced with the following for Plan Years beginning after
December 31, 2001:
	 
	 	 	“1.50 Key Employee Key Employee means any Employee or former Employee (including
any deceased Employee) who at any time during the Plan Year that includes the
determination date was an officer of the Employer having annual Compensation
greater than $130,000 [as adjusted

- 1 -

 

	 	 	under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002], a five
percent (5%) owner of the Employer, or a one percent (1%) owner of the Employer
having annual Compensation of more than $150,000. For this purpose, annual
Compensation means Compensation within the meaning of Code Section 415(c)(3). The
determination of who is a Key Employee will be made in accordance with Code
Section 416(i)(1) and the applicable Regulations and other guidance of general
applicability issued thereunder.”
	 
	5.	 	Paragraph 1.54 of the Basic Plan Document #02 entitled “Maximum Permissible
Amount”, is amended by the addition of the following sub-paragraphs (g) — (k):

	 	"(g) 	 	 The “Maximum Permissible Amount” is the lesser of the Defined Benefit
Dollar Limitation or the defined benefit compensation limitation [both
adjusted where required, as provided in (h) and, if applicable, in (i) or (j)
below].
	 
	 	(h)	 	If the Participant has fewer than 10 Years of Participation in the
Plan, the Defined Benefit Dollar Limitation shall be multiplied by a
fraction, (1) the numerator of which is the number of Years (or part thereof)
of Participation in the Plan and (2) the denominator of which is 10. In the
case of a Participant who has fewer than 10 Years of Service with the
Employer, the defined benefit compensation limitation shall be multiplied by
a fraction, (1) the numerator of which is the number of Years (or part
thereof) of Service with the Employer and (2) the denominator of which is 10.
	 
	 	(i)	 	If the benefit of a Participant begins prior to age 62, the Defined
Benefit Dollar Limitation applicable to the Participant at such earlier age
is an Annual Benefit payable in the form of a Straight Life Annuity beginning
at the earlier age that is the Actuarial Equivalent of the Defined Benefit
Dollar Limitation applicable to the Participant at age 62 [adjusted under (h)
above, if required]. The Defined Benefit Dollar Limitation applicable at an
age prior to age 62 is determined as the lesser of (1) the Actuarial
Equivalent (at such age) of the Defined Benefit Dollar Limitation computed
using the interest rate and mortality table (or other tabular factor)
specified in Section III(B) of the Adoption Agreement and (2) the Actuarial
Equivalent (at such age) of the Defined Benefit Dollar Limitation computed
using a 5% interest rate and the applicable mortality table as defined in
Section III(B) of the Adoption Agreement. Any decrease in the Defined Benefit
Dollar Limitation determined in accordance with this paragraph (i) shall not
reflect a mortality decrement if benefits are not forfeited upon the death of
the Participant. If any benefits are forfeited upon death, the full mortality
decrement is taken into account.
	 
	 	(j)	 	If the benefit of a Participant begins after the Participant attains
age 65, the Defined Benefit Dollar Limitation applicable to the Participant
at the later age is the Annual Benefit payable in the form of a Straight Life
Annuity beginning at the later age that is actuarially equivalent to the
Defined Benefit Dollar Limitation applicable to the Participant at age 65
[adjusted under (i) above, if required]. The Actuarial Equivalent of the
Defined Benefit Dollar Limitation applicable at an age after age 65 is
determined as (1) the lesser of the Actuarial Equivalent (at such age) of the
Defined Benefit Dollar Limitation computed using the interest rate and
mortality table (or other tabular factor) specified in Section III(B) of the
Adoption Agreement and (2) the Actuarial Equivalent (at such age) of the
Defined Benefit Dollar Limitation computed using a 5% interest rate
assumption and the applicable mortality table as defined in Section III(B) of
the Adoption Agreement. For these purposes, mortality between age 65 and the
age at which benefits commence shall be ignored.
	 
	 	(k)	 	Unless indicated otherwise in the Adoption Agreement, benefit
increases resulting from the increase in the above limitations will be
provided to all Participants who have one Hour of Service on or after the
first day of the first Plan Year ending after December 31, 2001.”

	6.	 	Paragraph 4.3 of the Basic Plan Document #02 entitled “Rollover Contributions”, is
amended by the addition of the following paragraph (f) which shall read as follows:

- 2 -

 

	 	“(f) 	 	 If elected by the Employer in the Adoption Agreement, the Plan will
accept Participant Rollover Contributions and/or Direct Rollovers of
distributions made after December 31, 2001, from the types of plans specified
in the Adoption Agreement, beginning on the Effective Date specified in the
Adoption Agreement.”

	7.	 	Paragraph 4.5 of the Basic Plan Document #02 entitled “Direct Rollover of
Benefits”, is amended effective January 1, 2002 by the addition of the following
paragraph:
	 
	 	 	“The following shall apply only to distributions made after December 31, 2001.
For purposes of the Direct Rollover provisions in this paragraph 4.5 of the Plan,
an Eligible Retirement Plan shall also mean an annuity contract described in Code
Section 403(b) and an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of
a state or political subdivision of a state which agrees to separately account for
amounts transferred into such plan from this Plan. The definition of Eligible
Retirement Plan shall also apply in the case of a distribution to a surviving
Spouse, or to a Spouse or former Spouse who is the alternate payee under a
Qualified Domestic Relations Order, as defined in Code Section 414(p).
	 
	 	 	For purposes of the Direct Rollover provisions in this paragraph 4.5 of the Plan,
a portion of the distribution shall not fail to be an Eligible Rollover
Distribution merely because the portion consists of Voluntary After-tax
Contributions that are not includible in gross income. However, such portion may
be transferred only to an individual retirement account or annuity described in
Code Section 408(a) or (b), or to a qualified Defined Contribution Plan described
in Code Section 401(a) or 403(a) that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution
which is includible in gross income and the portion of such distribution which is
not so includible.”
	 
	8.	 	Effective as of the date set forth in the Adoption Agreement in the section
entitled “Treatment of Rollovers in Application of Involuntary Cash-out Provisions”,
paragraph 4.10 of the Basic Plan Document #02 entitled “Withdrawal on Termination of
Employment “ is amended by the addition of the following at the end thereof:
	 
	 	 	“If elected by the Employer in the Adoption Agreement, the value of a
Participant’s Vested Accrued Benefit shall be determined without regard to that
portion of the Accrued Benefit that is attributable to Rollover Contributions (and
the earnings allocable thereto) within the meaning of Code Sections 402(c),
403(a)(4), 403(b)(8), 408(d)(3)(A)(ii) and 457(e)(16). If the value of the
Participant’s Vested Accrued Benefit as so determined is $5,000 or less, the Plan
shall, within normal administrative policy, immediately distribute the
Participant’s entire nonforfeitable Accrued Benefit.”
	 
	9.	 	Paragraph 10.7 of the Basic Plan Document #02 entitled “Participant Loans” is
amended effective January 1, 2001 by deleting the language at subsection (i) and
replacing it with the following:

	 	“(i) 	 	 Effective for Plan loans made after December 31, 2001, Plan
provisions prohibiting loans to any Owner-Employee or Shareholder Employee
shall cease to apply.”

	10.	 	Paragraph 12.2 of the Basic Plan Document #02 entitled “Minimum Benefit” is amended
for Plan Years beginning after December 31, 2001 by the addition of the following
new subparagraphs at the end of the paragraph that shall read as follows:
	 
	 	 	“Contributions Under Other Plans — The Employer may provide in the Adoption
Agreement that the minimum benefit requirement shall be met in another plan,
including another plan that consists solely of a cash or deferred arrangement
which meets the requirements of Code Section 401(k)(12) and Matching Contributions
that meet the requirements of Code Section 401(m)(11).
	 
	 	 	Determining Years of Top-Heavy Service — For purposes of satisfying the minimum
benefit requirements of Code Section 416(c)(1) and the Plan, in determining Years
of Service with the Employer, any Service with the Employer shall be disregarded
to the extent that such Service occurs during a Plan Year when the Plan benefits
[within the meaning of Code Section 410(b)] no

- 3 -

 

	 	 	Key Employee or former Key Employee.”
	 
	11.	 	Paragraph 12.5 of Basic Plan Document #02 entitled “Benefit Reduction Resulting
From Aggregation” shall be amended by the addition of a new sub-paragraph at the end
thereof that shall read as follows:
	 
	 	 	“The provisions of this paragraph 12.5 shall be superceded by the amended definition of
Maximum Permissible Amount for Plan Years beginning after 2001.”
	 
	12.	 	This paragraph shall apply for purposes of determining whether the Plan is a
Top-Heavy Plan under Code Section 416(g) for Plan Years beginning after December 31,
2001, and whether the Plan satisfies the minimum benefits requirements of Code
Section 416(c) for such years. This section amends Article XII of the Basic Plan
Document #02 by adding paragraph 12.6 entitled “Determination of Top-Heavy Status”.
The paragraph shall read as follows:

	 	“12.6 	 	 Determination Of Top-Heavy Status

	 	(a)	 	Determination of Present Values and Amounts — This
paragraph 12.6 shall apply for purposes of determining the Present
Values of Accrued Benefits and the amounts of account balances of
Employees as of the Top-Heavy Determination Date.
	 
	 	(b)	 	Distributions During the Plan Year Ending on the
Top-Heavy Determination Date — The Present Value of Accrued Benefits
and the amounts of account balances of an Employee as of the Top-Heavy
Determination Date shall be increased by the distributions made with
respect to the Employee under the Plan and any plan aggregated with
this Plan under Code Section 416(g)(2) during the 1-year period ending
on the Top-Heavy Determination Date. The preceding sentence shall
also apply to distributions under a terminated plan which, had it not
been terminated, would have been aggregated with this Plan under Code
Section 416(g)(2)(A)(i). In the case of a distribution made for a
reason other than separation from Service, death, or Disability, this
provision shall be applied by substituting “5-year period” for “1-year
period”.
	 
	 	(c)	 	Employees Not Performing Services During the Plan Year
Ending on the Top-Heavy Determination Date — The Accrued Benefits and
accounts of any individual who has not performed services for the
Employer during the 1-year period ending on the Top-Heavy
Determination Date shall not be taken into account.”

	13.	 	A new Paragraph 5.16 entitled “Application of the 1994 Group Annuity Reserving
Table” is added at the end of Article V that shall read as follows:

	 	“5.16 	 	 Application of the 1994 Group Annuity Reserving Table
	 
	 	(a)	 	Unless indicated otherwise in the Adoption Agreement, this paragraph
will apply to distributions with Annuity Starting Dates after December 31,
2001.
	 
	 	(b)	 	Notwithstanding any other Plan provisions to the contrary, the
applicable mortality table used for purposes of adjusting any benefit or
limitation under Code Sections 415(b)(2)(B), (C), or (D) as set forth in
Section III(B) of the Adoption Agreement and the applicable mortality table
used for purposes of satisfying the requirements of Code Section 417(e) as
set forth in Section III(B) of the Adoption Agreement is the table prescribed
in Revenue Ruling 2001-62.
	 
	 	 	 	However, in lieu of the sub-paragraph immediately above, if the Plan uses
the applicable mortality table for reasons other than those listed above,
then notwithstanding any other

- 4 -

 

	 	 	 	Plan provisions to the contrary, any reference in the Plan to the mortality
table prescribed in Revenue Ruling 95-6 shall be construed as a reference
to the mortality table prescribed in Revenue Ruling 2001-62 for all
purposes under the Plan.”
	 
	 	(c)	 	For any distribution with an Annuity Starting Date on or after the
effective date of this paragraph and before the adoption date of this
paragraph, if application of the amendment as of the Annuity Starting Date
would have caused a reduction in the amount of any distribution, such
reduction is not reflected in any payment made before the adoption date of
this paragraph. However, the amount of any such reduction that is required
under Section 415(b)(2)(B) of the Internal Revenue Code must be reflected
actuarially over any remaining payments to the Participant.

	14.	 	Pursuant to Article XIII, paragraph 15.1 of the Prototype Basic Plan Document #02 and in
accordance with Revenue Ruling 2002-27, the Basic Plan Document #02 is amended as follows
effective for Plan Years and Limitation Years beginning on or after January 1, 2002, except
that, for any such Employer sponsors of the Plan who operated the Plan in accordance with the
definition below prior to January 1, 2002 and in Plan Years beginning on or after January 1,
1998, such amendment is also effective for all years during such period in which the Plan
operated in accordance with this definition.
	 
	 	 	For purposes of the definition of Compensation under paragraph 1.15, amounts under Code
Section 125 include any amounts not available to a Participant in cash in lieu of group
health coverage because the Participant is unable to certify that he or she has other health
coverage. An amount will be treated as an amount under Code Section 125 only if the
Employer does not request or collect information regarding the Participant’s other health
coverage as part of the enrollment process for the health plan.”

- 5 -

 

MINIMUM DISTRIBUTION REQUIREMENTS MODEL AMENDMENT

TO THE

PROTOTYPE DEFINED BENEFIT PLAN BASIC PLAN DOCUMENT #02

The Employer named in the Adoption Agreement hereby amends the Plan to reflect certain provisions
of the final Regulations issued under Code Section 401(a)(9). This amendment is intended as a good
faith compliance with the requirements of the Regulations and is to be construed in accordance with
the guidance issued thereunder. Except as otherwise provided, this amendment shall be effective as
of the first day of the first Plan Year beginning after December 31, 2002. This amendment shall
supersede the provisions of the Basic Plan Document #02 to the extent those provisions are
inconsistent with the provisions of this amendment. The Basic Plan Document #02 is hereby amended
as follows:

ARTICLE XV

MINIMUM DISTRIBUTION REQUIREMENTS

15.1 Effective Date

The provisions of this Article will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year in compliance with Final
Treasury Regulations section 1.401(a)(9) issued on June 15, 2004.

15.2 Coordination With Minimum Distribution Requirements Previously In Effect

Notwithstanding the foregoing effective date, the Plan will not fail to satisfy Code Section
401(a)(9) with respect to Required Minimum Distributions that occurred during the 2003, 2004 and
2005 calendar years solely on the grounds that such payments did not comply with the rules of the
foregoing Final Treasury Regulations, if such distributions were based upon a reasonable and good
faith interpretation of Code Section 401(a)(9). If the Plan used the 1987 proposed regulations, the
2002 proposed regulations, the 2002 temporary and proposed regulations and the Final Treasury
Regulations issued on June 15, 2004 in processing the distribution; it will be deemed to have
complied by means of a reasonable and good faith interpretation of Code Section 401(a)(9).

15.3 Precedence

The requirements of this Article will take precedence over any inconsistent provisions of the Plan.

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

15.5 TEFRA Section 242(b)(2) Elections

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

15.6 Required Beginning Date

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

15.7 Death Of Participant Before Distributions Begin

If the Participant dies before distributions begin, the Participant’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

	 	(a)	 	If the Participant’s surviving Spouse is the Participant’s sole Designated
Beneficiary, then, except as provided in the Adoption Agreement, distributions to the
surviving Spouse will begin by December 31 of the calendar year immediately following
the calendar year in which the Participant died, or by December 31 of the calendar year
in which the Participant would have attained age 701/2, if later.
	 
	 	(b)	 	If the Participant’s surviving Spouse is not the Participant’s sole Designated
Beneficiary, then, except as provided in the Adoption Agreement, distributions to the
Designated Beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died.

- 6 -

 

	 	(c)	 	If there is no Designated Beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.
	 
	 	(d)	 	If the Participant’s surviving Spouse is the Participant’s sole Designated
Beneficiary and the surviving Spouse dies after the Participant but before
distributions to the surviving Spouse begin, this paragraph 15.7, other than paragraph
15.7(a), will apply as if the surviving Spouse were the Participant.

For purposes of this paragraph and paragraphs 15.11 and 15.12, unless paragraph 15.7(d) applies,
distributions are considered to begin on the Participant’s Required Beginning Date. If paragraph
15.7(d) applies, distributions are considered to begin on the date distributions are required to
begin to the surviving Spouse under paragraph 15.7(a). If distributions under an annuity purchased
from an insurance company irrevocably commence to the Participant before the Participant’s Required
Beginning Date [or to the Participant’s surviving Spouse before the date distributions are required
to begin to the surviving Spouse under paragraph 15.7(a)], the date distributions are considered to
begin is the date distributions actually commence.

15.8 Forms Of Distributions

Unless the Participant’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the Required Beginning Date, as of the First
Distribution Calendar Year distributions will be made in accordance with paragraph 15.9 through
paragraph 15.12 of this Article. If the Participant’s interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder will be made in accordance
with the requirements of Code Section 401(a)(9) of the Treasury Regulations and the Final Treasury
Regulations issued on June 15, 2004.

15.9 Amount of Required Minimum Distribution For Each Distribution Calendar Year

If the Participant’s interest is paid in the form of annuity distributions under the Plan, payments
under the annuity will satisfy the following requirements:

	 	(a)	 	The annuity distributions will be paid in periodic payments made at intervals
not longer than one (1) year;
	 
	 	(b)	 	The distribution period will be over a life (or lives) or over a period certain
not longer than the period described in this paragraph 15.9 and paragraphs 15.10, 15.11
and 15.12;
	 
	 	(c)	 	Once payments have begun over a period, the period may only be changed in
accordance with Q & A -13 of Section 1.401(a)(9)-6 of the Final Treasury Regulations;
	 
	 	(d)	 	Payments will either be nonincreasing or increase only as permitted by Q & A
-14 of Section 401(a)(9)-6 of the Final Treasury Regulations.

The amount that must be distributed on or before the Participant’s required beginning date (or, if
the Participant dies before distributions begin, the date distributions are required to begin as
described in paragraph 15.12) is the payment that is required for one (1) payment interval. The
second payment need not be made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods for which payments are
received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Participant’s benefit
accruals as of the last day of the first Distribution Calendar Year will be included in the
calculation of the amount of the annuity payments for payment intervals ending on or after the
Participant’s required beginning date.

Any additional benefits accruing to the Participant in a calendar year after the first Distribution
Calendar Year will be distributed beginning with the first payment interval ending in the calendar
year immediately following the calendar year in which such amount accrued.

15.10 Lifetime Required Minimum Distributions Continue Through Year Of Participant’s Death

Required minimum distributions will be determined under this paragraph and paragraph 15.9 beginning
with the first Distribution Calendar Year and up to and including the Distribution Calendar Year
that includes the Participant’s date of death.

- 7 -

 

15.11 Death On Or After Distributions Begin

	 	(a)	 	Participant Survived By Designated Beneficiary - If the Participant dies on or
after the date distributions begin and there is a Designated Beneficiary, the minimum
amount that will be distributed for each Distribution Calendar Year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s vested
accrued benefit by the longer of the remaining life expectancy of the Participant or
the remaining life expectancy of the Participant’s Designated Beneficiary, determined
as follows:

	 	(1)	 	The Participant’s remaining life expectancy is calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.
	 
	 	(2)	 	If the Participant’s surviving Spouse is the Participant’s sole
Designated Beneficiary, the remaining life expectancy of the surviving Spouse is
calculated for each Distribution Calendar Year after the year of the
Participant’s death using the surviving Spouse’s age as of the Spouse’s birthday
in that year. For Distribution Calendar Years after the year of the surviving
Spouse’s death, the remaining life expectancy of the surviving Spouse is
calculated using the age of the surviving Spouse as of the Spouse’s birthday in
the calendar year of the Spouse’s death, reduced by one for each subsequent
calendar year.
	 
	 	(3)	 	If the Participant’s surviving Spouse is not the Participant’s
sole Designated Beneficiary, the Designated Beneficiary’s remaining life
expectancy is calculated using the age of the Beneficiary in the year following
the year of the Participant’s death, reduced by one for each subsequent year.

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

15.12 Death Before Date Distributions Begin

	 	(a)	 	Participant Survived By Designated Beneficiary — Except as provided in the
Adoption Agreement, if the Participant dies before the date distributions begin and
there is a Designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the quotient
obtained by dividing the Participant’s vested accrued benefit by the remaining life
expectancy of the Participant’s Designated Beneficiary, determined as provided in
paragraph 15.11.
	 
	 	(b)	 	No Designated Beneficiary — If the Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September 30 of the
year following the year of the Participant’s death, distribution of the Participant’s
entire interest will be completed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death.
	 
	 	(c)	 	Death Of Surviving Spouse Before Distributions To Surviving Spouse Are Required
To Begin — If the Participant dies before the date distributions begin, the
Participant’s surviving Spouse is the Participant’s sole Designated Beneficiary, and
the surviving Spouse dies before distributions are required to begin to the surviving
Spouse under paragraph 15.7(a), this paragraph 15.12 will apply as if the surviving
Spouse were the Participant.

15.13 Designated Beneficiary

The individual who is designated as the Beneficiary under paragraph 1.23 of the Basic Plan Document
#02 and is the Designated Beneficiary under Code Section 401(a)(9) and Section 1.401(a)(9)-1,
Q&A-4, of the Treasury Regulations.

15.14 Distribution Calendar Year

A Distribution Calendar Year is a calendar year for which a minimum distribution is required. For
distributions beginning before the Participant’s death, the First Distribution Calendar Year is the
calendar year immediately preceding the calendar year which contains the Participant’s Required
Beginning Date. For distributions beginning

- 8 -

 

after the Participant’s death, the First Distribution Calendar Year is the calendar year in which
distributions are required to begin under paragraph 15.7. The required minimum distribution for
the Participant’s First Distribution Calendar Year will be made on or before the Participant’s
Required Beginning Date. The required minimum distribution for other Distribution Calendar Years,
including the required minimum distribution for the Distribution Calendar Year in which the
Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
Distribution Calendar Year.

15.15 Life Expectancy

Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the
Treasury Regulations.

If the Participant’s interest is being distributed in the form of a joint and survivor annuity for
the joint lives of the Participant and a nonspouse Beneficiary, annuity payments to be made on or
after the Participant’s required beginning date to the Designated Beneficiary after the
Participant’s death must not at any time exceed the applicable percentage of the contained in Q&A-2
of Section 1.401(a)(9)-6 of the Final Treasury Regulations. If the form of distribution combines a
joint and survivor annuity for the joint lives of the Participant and a nonspouse Beneficiary and a
period certain annuity, the requirement in the preceding sentence will apply to annuity payments to
be made to the Designated Beneficiary after the expiration of the period certain.

Unless the Participant’s Spouse is the sole Designated Beneficiary and the form of distribution is
a period certain and no life annuity, the period certain for an annuity distribution commencing
during the Participant’s lifetime may not exceed the applicable distribution period for the
Participant under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Final
Treasury Regulations for the calendar year that contains the Annuity Starting Date. If the Annuity
Starting Date precedes the year in which the Participant reaches age 70, the applicable
distribution period for the Participant is the distribution period for age 70 under the Uniform
Lifetime Table set forth in Section 1.401(a)(9)-9 of the Final Treasury Regulations plus the excess
of 70 over the age of the Participant as of the Participant’s birthday in the year that contains
the Annuity Starting Date. If the Participant’s Spouse is the Participant’s sole Designated
Beneficiary and the form of distribution is a period certain and no life annuity, the period
certain may not exceed the longer of the Participant’s applicable distribution period, as
determined under paragraph 15.9, or the joint life and last survivor expectancy of the Participant
and the Participant’s spouse as determined under the Joint and Last Survivor Table set forth in
Section 1.401(a)(9)-9 of the Final Treasury Regulations, using the Participant’s and Spouse’s
attained ages as of the Participant’s and Spouse’s birthdays in the calendar year that contains the
Annuity Starting Date.

15.16 Participant’s Vested Accrued Benefit

The vested accrued benefit is determined as of the last Valuation Date in the calendar year
immediately preceding the Distribution Calendar Year (Valuation Calendar Year) increased by the
amount of any additional benefit accruals in the Valuation Calendar Year after the Valuation Date
and decreased by distributions made in the Valuation Calendar Year after the Valuation Date. The
vested accrued benefit 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.

15.17 Required Beginning Date

The date specified in paragraph 1.76 of the Basic Plan Document #02.

- 9 -

 

RETROACTIVE ANNUITY STARTING DATE MODEL AMENDMENT

TO THE

PROTOTYPE DEFINED BENEFIT PLAN BASIC PLAN DOCUMENT #02

The Employer named in the Adoption Agreement hereby amends Article VII of the Plan by adding a new
paragraph 7.11 to permit the addition of Retroactive Annuity Starting Date feature. This amendment
is intended as a good faith compliance with the requirements of the Regulations on Retroactive
Annuity Starting Dates and is to be construed in accordance with the guidance issued thereunder.
Except as otherwise provided, this amendment shall be effective as of the first day of the first
Plan Year beginning after December 31, 2005. This amendment shall supersede the provisions of the
Basic Plan Document #02 to the extent those provisions are inconsistent with the provisions of this
amendment. The Basic Plan Document #02 is hereby amended as follows:

7.11 Retroactive Annuity Starting Date

If elected in the Adoption Agreement, a plan may have a provision permitting a Retroactive
Annuity Starting Date. If so elected, a distribution of a Participant’s benefit may be made
pursuant to a Retroactive Annuity Starting Date only if the following requirements are met:

	 	(a)	 	The Participant’s Spouse (including an alternate payee under a Qualified
Domestic Relations Order) has consented to the distribution in a manner that would
satisfy the requirements of Code Section 417(a)(2). Such spousal consent requirement
shall not apply if the amount of the Spouse’s survivor annuity payments under the
Retroactive Annuity Starting Date election is not less than the amount that such
survivor payments would have been under an optional form of benefit that would satisfy
the requirements of a Qualified Joint and Survivor Annuity, as defined in Code Section
417(b), and that has an Annuity Starting Date after the date the written explanation
was provided.
	 
	 	(b)	 	The Retroactive Annuity Starting Date distribution (including appropriate
interest adjustments) will satisfy the requirements of Code Section 415 based upon the
substitution of the date the distribution commences for the Annuity Starting Date with
respect to all Plan purposes, including the determination of the applicable interest
rate and the applicable mortality table. However, if a form of benefit would not have
been subject to the present value requirements in the event the distribution had
actually commenced on the Retroactive Annuity Starting Date, the requirement to apply
Code Section 415 as of the date the distribution commences shall not be applicable if
the date the distribution commences is twelve (12) months or less from the Retroactive
Annuity Starting Date.
	 
	 	(c)	 	If a form of benefit would have been subject to Section 417(e)(3) of the Code
had distribution commenced as of the Retroactive Annuity Starting Date, the
distribution shall be not less than the benefit produced by applying the applicable
interest rate and the applicable mortality table (as of the date the distribution
commences) to the annuity form that corresponds to the annuity form used to determine
the benefit amount as of the Retroactive Annuity Starting Date.
	 
	 	(d)	 	If a Participant elects a Retroactive Annuity Starting Date, future periodic
payments must be the same as the future periodic payments, if any, that would have been
paid to the Participant had payments actually commenced on the Retroactive Annuity
Starting Date. A make-up payment shall be paid to an affected Participant that
reflects any missed payment or payments for the period from the Retroactive Annuity
Starting Date to the date of the actual make-up payment. (Such make-up payment shall be
appropriately adjusted for interest from the date the missed payment or payments would
have been made to the date of the actual make-up payment.)

- 10 -

 

HURRICANE-RELATED RELIEF MODEL AMENDMENT

TO THE

PROTOTYPE DEFINED BENEFIT PLAN BASIC PLAN DOCUMENT #02

The Employer named in the Adoption Agreement hereby amends Article X of the Plan by adding a new
subparagraph 10.7(n) to implement provisions relating to natural disaster relief resulting from
Hurricanes Katrina, Rita and Wilma. The provisions related to IRS Notice 2005-70 will be effective
on or after August 28, 2005, if utilized by the Employer. The provisions relating to either The
Katrina Emergency Tax Relief Act of 2005 (KETRA) or the Gulf Opportunity Zone Act of 2005(GOZA)
will be effective on or after August 25, 2005 if utilized by the Employer. This amendment is
intended as a good faith compliance with the requirements of the aforesaid statutes and it is to be
construed in accordance with the guidance issued thereunder. This amendment shall supersede the
provisions of the Basic Plan Document #02 to the extent those provisions are inconsistent with the
provisions of this amendment. The Basic Plan Document #02 is hereby amended as follows:

1. Article X entitled “ADMINISTRATION” is amended by the addition of a new subparagraph 10.7 (n) to
subparagraph 10.7 entitled “Participant Loans”:

	 	“(n) 	 	 Special Rules for the application of the provisions of the Katrina Emergency
Tax Relief Act of 2005 (KETRA) and the Gulf Opportunity Zone Act of 2005 (GOZA) - If
applicable, the Plan Sponsor is authorized to comply with the provisions of KETRA, GOZA
and any otherwise applicable IRS and DOL guidance and is deemed to have retroactively
amended its Plan to comply with applicable law and regulation. The following provisions
shall apply to participant loans made to qualified Plan Participants whose principal
residence was in a federally proclaimed disaster area affected by Hurricane Katrina,
Hurricane Rita or Hurricane Wilma, and as a result of any or all of such Hurricanes
incurred an economic loss. For purposes of these provisions, such rules will apply to
participant loans that are granted at any time on or after August 25, 2005 and before
December 31, 2006 with respect to Hurricane Katrina, at any time on or after December
21, 2005 and before December 31, 2006, with respect to Hurricane Rita, and at any time
on or after December 21, 2005 and before December 31, 2006, with respect to Hurricane
Wilma.

	 	(1)	 	For participant loans made to Plan Participants eligible for
KETRA or GOZA relief during the foregoing periods, the maximum permissible
dollar limit for participant loans is increased from $50,000 to $100,000.
	 
	 	(2)	 	In calculating the maximum available loan amount available for a
Plan Participant eligible for KETRA or GOZA relief, the entire present value of
the Participant’s vested accrued benefit under the Plan shall be used.
	 
	 	(3)	 	In the event a Participant who is eligible for relief under KETRA
or GOZA had an outstanding participant loan as of August 25, 2005 with respect
to Hurricane Katrina, September 23, 2005 with respect to Hurricane Rita, or
October 23, 2005 with respect to Hurricane Wilma, and the current maturity date
of such participant loan is on or before December 31, 2006, the applicable
maturity date of such participant loan shall be extended for one (1) year.
Repayment amounts of such affected participant loans shall be adjusted to take
into account the extension and additional interest accruing during such
extension. For purposes of this relief, the extension period shall be
disregarded in determining the five-year period under Code Section 72.
	 
	 	(4)	 	Additionally, the Plan could have provided for special
hurricane-related loans to Plan Participants who lived or worked in the
Hurricane Katrina disaster area that qualified for individual relief from the
Federal Emergency Management Agency. Similar relief is not available for
Hurricanes Rita and Wilma. These special loans could also have been made
available to Plan Participants residing outside the disaster area if they had a
child, parent, grandparent or other dependent that lived or worked in the
disaster area. These loans are subject to and must satisfy the requirements of
Code Section 72(p). The increase in the loan limit to $100,000 as specified in
(1) above did not apply to these loans.”

- 11 -exv10w15

 

Exhibit 10.15

PROTOTYPE DEFINED CONTRIBUTION PLAN

Sponsored By

SBERA

BASIC PLAN DOCUMENT #01

 

 

THIS DOCUMENT IS COPYRIGHTED UNDER THE LAWS OF THE UNITED STATES. ITS USE, DUPLICATION OR
REPRODUCTION, INCLUDING THE USE OF ELECTRONIC MEANS, IS PROHIBITED BY LAW WITHOUT THE EXPRESS
CONSENT OF THE AUTHOR.

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	ACTUAL CONTRIBUTION PERCENTAGE (ACP)	 	 	1	 
	1.2
	 	ACTUAL DEFERRAL PERCENTAGE (ADP)	 	 	1	 
	1.3
	 	Adoption Agreement	 	 	  2	 
	1.4
	 	Aggregate Limit	 	 	  2	 
	1.5
	 	Allocation Date(s)	 	 	  2	 
	1.6
	 	Annual Additions	 	 	  2	 
	1.7
	 	Annuity Starting Date	 	 	  3	 
	1.8
	 	Applicable Calendar Year	 	 	  3	 
	1.9
	 	Applicable Life Expectancy	 	 	  3	 
	1.10
	 	Average Annual Compensation	 	 	  3	 
	1.11
	 	Average Contribution Percentage (ACP)	 	 	  4	 
	1.12
	 	Average Deferral Percentage (ADP)	 	 	  4	 
	1.13
	 	Beneficiary	 	 	  4	 
	1.14
	 	Break In Service	 	 	  4	 
	1.15
	 	Code	 	 	  5	 
	1.16
	 	Compensation	 	 	  5	 
	1.17
	 	Covered Compensation	 	 	  8	 
	1.18
	 	Custodian	 	 	  8	 
	1.19
	 	Davis-Bacon Act	 	 	  8	 
	1.20
	 	Defined Benefit Plan	 	 	  8	 
	1.21
	 	Defined Benefit (Plan) Fraction	 	 	  8	 
	1.22
	 	Defined Contribution Dollar Limitation	 	 	  9	 
	1.23
	 	Defined Contribution Plan	 	 	  9	 
	1.24
	 	Defined Contribution (Plan) Fraction	 	 	  9	 
	1.25
	 	Direct Rollover	 	 	  9	 
	1.26
	 	Disability	 	 	  9	 
	1.27
	 	Distribution Calendar Year	 	 	  9	 
	1.28
	 	Early Retirement Age	 	 	 10	 
	1.29
	 	Early Retirement Date	 	 	 10	 
	1.30
	 	Earned Income	 	 	 10	 
	1.31
	 	Effective Date	 	 	 10	 
	1.32
	 	Election Period	 	 	 10	 
	1.33
	 	Elapsed Time	 	 	 10	 
	1.34
	 	Elective Deferrals	 	 	 10	 
	1.35
	 	Eligible Employee	 	 	 11	 
	1.36
	 	Eligible Employer	 	 	 11	 
	1.37
	 	Eligible Participant	 	 	 11	 
	1.38
	 	Eligible Retirement Plan	 	 	 11	 
	1.39
	 	Eligible Rollover Distribution	 	 	 11	 
	1.40
	 	Employee	 	 	 12	 
	1.41
	 	Employer	 	 	 12	 
	1.42
	 	Entry Date	 	 	 13	 
	1.43
	 	ERISA	 	 	 13	 
	1.44
	 	Excess Aggregate Contributions	 	 	 13	 
	1.45
	 	Excess Annual Additions	 	 	 13	 
	1.46
	 	Excess Contribution	 	 	 13	 
	1.47
	 	Excess Elective Deferrals	 	 	 13	 
	1.48
	 	Expected Year Of Service	 	 	 13	 

 

 

	 	 	 	 	 	 	 
	1.49
	 	First Distribution Calendar Year	 	 	 13	 
	1.50
	 	Hardship	 	 	 14	 
	1.51
	 	Highest Average Compensation	 	 	 14	 
	1.52
	 	Highly Compensated Employee	 	 	 14	 
	1.53
	 	Hour Of Service	 	 	 14	 
	1.54
	 	Integration Level	 	 	 15	 
	1.55
	 	Key Employee	 	 	 15	 
	1.56
	 	Leased Employee	 	 	 16	 
	1.57
	 	Limitation Year	 	 	 16	 
	1.58
	 	Master Or Prototype Plan	 	 	 16	 
	1.59
	 	Matching Contribution	 	 	 16	 
	1.60
	 	Maximum Permissible Amount	 	 	 16	 
	1.61
	 	Net Profit	 	 	 16	 
	1.62
	 	Normal Retirement Age	 	 	 16	 
	1.63
	 	Normal Retirement Date	 	 	 16	 
	1.64
	 	Owner-Employee	 	 	 17	 
	1.65
	 	Paired Plans	 	 	 17	 
	1.66
	 	Participant	 	 	 17	 
	1.67
	 	Participant’s Benefit	 	 	 17	 
	1.68
	 	Period Of Severance	 	 	 17	 
	1.69
	 	Permissive Aggregation Group	 	 	 17	 
	1.70
	 	Plan	 	 	 17	 
	1.71
	 	Plan Administrator	 	 	 17	 
	1.72
	 	Plan Sponsor	 	 	 17	 
	1.73
	 	Plan Year	 	 	 18	 
	1.74 
	 	Present Value	 	 	 18	 
	1.75
	 	Prior Plan Year	 	 	 18	 
	1.76
	 	Prior Safe Harbor Plan	 	 	 18	 
	1.77
	 	Projected Annual Benefit	 	 	 18	 
	1.78
	 	Projected Participation	 	 	 18	 
	1.79
	 	Qualified Domestic Relations Order (QDRO Order)	 	 	 19	 
	1.80
	 	Qualified Early Retirement Age	 	 	 19	 
	1.81
	 	Qualified Joint And Survivor Annuity (QJSA)	 	 	 19	 
	1.82
	 	Qualified Matching Contributions (QMACs)	 	 	 19	 
	1.83
	 	Qualified Non-Elective Contributions (QNECs)	 	 	 19	 
	1.84
	 	Qualified Plan	 	 	 19	 
	1.85
	 	Qualified Pre-Retirement Survivor Annuity	 	 	 19	 
	1.86
	 	Qualified Voluntary Contribution	 	 	 20	 
	1.87
	 	Required Aggregation Group	 	 	 20	 
	1.88
	 	Required Beginning Date	 	 	 20	 
	1.89
	 	Required After-tax Contributions	 	 	 20	 
	1.90
	 	Rollover Contribution	 	 	 20	 
	1.91
	 	Salary Deferral Agreement	 	 	 20	 
	1.92
	 	Savings Incentive Match Plan For Employees (SIMPLE)	 	 	 20	 
	1.93
	 	Self-Employed Individual	 	 	 20	 
	1.94
	 	Service	 	 	 20	 
	1.95
	 	Severance Date	 	 	 21	 
	1.96
	 	Severance Period	 	 	 21	 
	1.97
	 	Service Provider	 	 	 21	 
	1.98
	 	Shareholder Employee	 	 	 21	 
	1.99
	 	Simplified Employee Pension Plan	 	 	 21	 
	1.100
	 	Sponsor	 	 	 21	 
	1.101
	 	Spouse	 	 	 21	 
	1.102
	 	Stated Benefit Formula	 	 	 22	 
	1.103
	 	Super Top-Heavy Plan	 	 	 22	 
	1.104
	 	Taxable Wage Base	 	 	 22	 

 

 

	 	 	 	 	 	 	 
	1.105
	 	Top-Heavy Determination Date	 	 	 22	 
	1.106
	 	Top-Heavy Plan	 	 	 22	 
	1.107
	 	Top-Heavy Ratio	 	 	 22	 
	1.108
	 	Top-Paid Group	 	 	 23	 
	1.109
	 	Transfer Contribution	 	 	 23	 
	1.110
	 	Trust	 	 	 24	 
	1.111
	 	Trustee	 	 	 24	 
	1.112
	 	Uniformed Services Employment And Reemployment Rights Act Of 1994 (USERRA)	 	 	 24	 
	1.113
	 	Valuation Date	 	 	 24	 
	1.114
	 	Vested Account Balance	 	 	 24	 
	1.115
	 	Voluntary After-tax Contribution	 	 	 24	 
	1.116
	 	Welfare Benefit Fund	 	 	 24	 
	1.117
	 	Year Of Service	 	 	 24	 
	 
	 	 	 	 	 	 
	ELIGIBILITY REQUIREMENTS	 	 	27	 
	 
	 	 	 	 	 	 
	2.1
	 	Eligibility	 	 	 27	 
	2.2
	 	Determination Of Eligibility	 	 	 27	 
	2.3
	 	Change In Classification Of Employment	 	 	 28	 
	2.4
	 	Participation	 	 	 28	 
	2.5
	 	Employment Rights	 	 	 28	 
	2.6
	 	Service With Controlled Groups	 	 	 28	 
	2.7
	 	Leased Employees	 	 	 28	 
	2.8
	 	Thrift Plan	 	 	 29	 
	2.9
	 	Target Benefit Plan	 	 	 29	 
	2.10
	 	Davis-Bacon Plan	 	 	 29	 
	2.11
	 	Waiver Of Participation	 	 	 29	 
	2.12
	 	Omission Of Eligible Employee	 	 	 30	 
	2.13
	 	Inclusion Of Ineligible Employee	 	 	 30	 
	 
	 	 	 	 	 	 
	EMPLOYER CONTRIBUTIONS	 	 	31	 
	 
	 	 	 	 	 	 
	3.1
	 	Contribution Amount	 	 	 31	 
	3.2
	 	Contribution Amount For A SIMPLE 401(k) Plan	 	 	 31	 
	3.3
	 	Responsibility For Contributions	 	 	 32	 
	3.4
	 	Return Of Contributions	 	 	 32	 
	3.5
	 	Merger Of Assets From Another Plan	 	 	 32	 
	3.6
	 	Coverage Requirements	 	 	 33	 
	3.7
	 	Eligibility For Contribution	 	 	 33	 
	3.8
	 	Target Benefit Plan Contribution	 	 	 34	 
	3.9
	 	Davis-Bacon Plan Contribution	 	 	 35	 
	3.10
	 	Uniform Dollar Contribution	 	 	 35	 
	3.11
	 	Uniform Points Contribution	 	 	 35	 
	3.12
	 	403(b) Matching Contribution	 	 	 35	 
	 
	 	 	 	 	 	 
	EMPLOYEE CONTRIBUTIONS	 	 	36	 
	 
	 	 	 	 	 	 
	4.1
	 	Voluntary After-tax Contributions	 	 	 36	 
	4.2
	 	Required After-tax Contributions	 	 	 36	 
	4.3
	 	Qualified Voluntary Contributions	 	 	 36	 
	4.4
	 	Rollover Contributions	 	 	 36	 
	4.5
	 	Plan To Plan Transfer Contributions	 	 	 37	 
	4.6
	 	Voluntary Direct Transfers Between Plans	 	 	 37	 
	4.7
	 	Elective Deferrals In A 401(k) Plan	 	 	 38	 
	4.8
	 	Elective Deferrals In A SIMPLE 401(k) Plan	 	 	 39	 
	4.9
	 	Automatic Enrollment	 	 	 40	 
	4.10
	 	Make-Up Contributions Under USERRA	 	 	 41	 
	 
	 	 	 	 	 	 
	PARTICIPANT ACCOUNTS	 	 	42	 

 

 

	 	 	 	 	 	 	 
	5.1
	 	Separate Accounts	 	 	 42	 
	5.2
	 	Valuation Date	 	 	 42	 
	5.3
	 	Allocations To Participant Accounts	 	 	 43	 
	5.4
	 	Allocating Employer Contributions	 	 	 43	 
	5.5
	 	Allocating Investment Earnings And Losses	 	 	 44	 
	5.6
	 	Allocation Adjustments	 	 	 44	 
	5.7
	 	Participant Statements	 	 	 45	 
	5.8
	 	Changes In Method And Timing Of Valuing Participants’ Accounts	 	 	 45	 
	 
	 	 	 	 	 	 
	RETIREMENT BENEFITS AND DISTRIBUTIONS	 	 	46	 
	 
	 	 	 	 	 	 
	6.1
	 	Normal Retirement Benefits	 	 	 46	 
	6.2
	 	Early Retirement Benefits	 	 	 46	 
	6.3
	 	Benefits On Termination Of Employment	 	 	 46	 
	6.4
	 	Restrictions On Immediate Distributions	 	 	 47	 
	6.5
	 	Normal And Optional Forms Of Payment	 	 	 48	 
	6.6
	 	Commencement Of Benefits	 	 	 49	 
	6.7
	 	Transitional Rules For Cash-Out Limits	 	 	 50	 
	6.8
	 	In-Service Withdrawals	 	 	 51	 
	6.9
	 	Hardship Withdrawals	 	 	 53	 
	6.10
	 	Direct Rollover Of Benefits	 	 	 54	 
	6.11
	 	Participant’s Notice	 	 	 54	 
	6.12
	 	Assets Transferred From Money Purchase Pension Plans	 	 	 55	 
	6.13
	 	Assets Transferred From A Code Section 401(k) Plan	 	 	 55	 
	 
	 	 	 	 	 	 
	DISTRIBUTION REQUIREMENTS	 	 	56	 
	 
	 	 	 	 	 	 
	7.1
	 	Joint And Survivor Annuity Requirements	 	 	 56	 
	7.2
	 	Minimum Distribution Requirements	 	 	 56	 
	7.3
	 	Limits On Distribution Periods	 	 	 56	 
	7.4
	 	Required Distributions On Or After The Required Beginning Date	 	 	 56	 
	7.5
	 	Required Beginning Date	 	 	 57	 
	7.6
	 	Transitional Rules	 	 	 59	 
	7.7
	 	Designation Of Beneficiary	 	 	 60	 
	7.8
	 	Beneficiary	 	 	 60	 
	7.9
	 	Distribution Beginning Before Death	 	 	 61	 
	7.10
	 	Distribution Beginning After Death	 	 	 61	 
	7.11
	 	Distribution Of Excess Elective Deferrals	 	 	 61	 
	7.12
	 	Distribution Of Excess Contributions	 	 	 62	 
	7.13
	 	Distribution Of Excess Aggregate Contributions	 	 	 63	 
	7.14
	 	Distributions To Minors And Individuals Who Are Legally Incompetent	 	 	 63	 
	7.15
	 	Unclaimed Benefits	 	 	 63	 
	 
	 	 	 	 	 	 
	JOINT AND SURVIVOR ANNUITY REQUIREMENTS	 	 	65	 
	 
	 	 	 	 	 	 
	8.1
	 	Applicability Of Provisions	 	 	 65	 
	8.2
	 	Payment Of Qualified Joint And Survivor Annuity	 	 	 65	 
	8.3
	 	Payment Of Qualified Pre-Retirement Survivor Annuity	 	 	 65	 
	8.4
	 	Qualified Election	 	 	 65	 
	8.5
	 	Notice Requirements For Qualified Joint And Survivor Annuity	 	 	 66	 
	8.6
	 	Notice Requirements For Qualified Pre-Retirement Survivor Annuity	 	 	 66	 
	8.7
	 	Special Safe Harbor Exception For Certain Profit-Sharing Or 401(k) Plans	 	 	 67	 
	8.8
	 	Transitional Joint And Survivor Annuity Rules	 	 	 67	 
	8.9
	 	Automatic Joint And Survivor Annuity And Early Survivor Annuity	 	 	 68	 
	8.10
	 	Annuity Contracts	 	 	 69	 
	 
	 	 	 	 	 	 
	VESTING	 	 	70	 
	 
	 	 	 	 	 	 
	9.1
	 	Employee Contributions	 	 	 70	 
	9.2
	 	Employer Contributions	 	 	 70	 

 

 

	 	 	 	 	 	 	 
	9.3
	 	Vesting Of Employer Contributions In A SIMPLE 401(k) Plan	 	 	 70	 
	9.4
	 	Computation Period	 	 	 70	 
	9.5
	 	Requalification Prior To Five Consecutive One-Year Breaks In Service	 	 	 70	 
	9.6
	 	Requalification After Five Consecutive One-Year Breaks In Service	 	 	 70	 
	9.7
	 	Calculating Vested Interest	 	 	 70	 
	9.8
	 	Forfeitures	 	 	 71	 
	9.9
	 	Amendment Of Vesting Schedule	 	 	 71	 
	9.10
	 	Service With Controlled Groups	 	 	 72	 
	9.11
	 	Compliance With Uniformed Services Employment And Reemployment Rights Act Of 1994	 	 	 72	 
	 
	 	 	 	 	 	 
	LIMITATIONS ON ALLOCATIONS	 	 	73	 
	 
	 	 	 	 	 	 
	10.1
	 	Participation In This Plan Only	 	 	 73	 
	10.2
	 	Disposition Of Excess Annual Additions	 	 	 73	 
	10.3
	 	Participation In Multiple Defined Contribution Plans	 	 	 74	 
	10.4
	 	Disposition Of Excess Annual Additions Under Two Plans	 	 	 74	 
	10.5
	 	Participation In This Plan And A Defined Benefit Plan	 	 	 74	 
	 
	 	 	 	 	 	 
	ANTIDISCRIMINATION TESTING	 	 	76	 
	 
	 	 	 	 	 	 
	11.1
	 	General Testing Requirements	 	 	 76	 
	11.2
	 	ADP Testing Limitations	 	 	 76	 
	11.3
	 	Special Rules Relating To Application Of The ADP Test	 	 	 77	 
	11.4
	 	Calculation And Distribution Of Excess Contributions And Excess Aggregate Contributions	 	 	 77	 
	11.5
	 	Qualified Non-Elective And/Or Matching Contributions	 	 	 78	 
	11.6
	 	ACP Testing Limitations	 	 	 78	 
	11.7
	 	Special Rules Relating To The Application Of The ACP Test	 	 	 79	 
	11.8
	 	Recharacterization	 	 	 80	 
	11.9
	 	Nondiscrimination Tests In A SIMPLE 401(k) Plan	 	 	 80	 
	11.10
	 	Safe Harbor Rules Of Application	 	 	 80	 
	11.11
	 	Safe Harbor Definitions	 	 	 82	 
	11.12
	 	Required Restrictions On Safe Harbor Contributions	 	 	 82	 
	11.13
	 	ADP Test Safe Harbor	 	 	 83	 
	11.14
	 	ACP Test Safe Harbor	 	 	 83	 
	11.15
	 	Safe Harbor Status	 	 	 83	 
	11.16
	 	Safe Harbor Notice Requirement	 	 	 84	 
	11.17
	 	Satisfying Safe Harbor Contribution Requirements Under Another Defined Contribution Plan	 	 	 85	 
	 
	 	 	 	 	 	 
	ADMINISTRATION	 	 	87	 
	 
	 	 	 	 	 	 
	12.1
	 	Plan Administrator	 	 	 87	 
	12.2
	 	Persons Serving As Plan Administrator	 	 	 88	 
	12.3
	 	Action By Employer	 	 	 88	 
	12.4
	 	Responsibilities Of The Parties	 	 	 88	 
	12.5
	 	Allocation Of Investment Responsibility	 	 	 88	 
	12.6
	 	Appointment Of Investment Manager	 	 	 89	 
	12.7
	 	Participant Investment Direction	 	 	 89	 
	12.8
	 	Application Of ERISA Section 404(c)	 	 	 90	 
	12.9
	 	Participant Loans	 	 	 90	 
	12.10
	 	Insurance Policies	 	 	 92	 
	12.11
	 	Determination Of Qualified Domestic Relations Order (QDRO Or Order)	 	 	 94	 
	12.12
	 	Receipt And Release For Payments	 	 	 95	 
	12.13
	 	Resignation And Removal	 	 	 95	 
	12.14
	 	Claims And Claims Review Procedure	 	 	 95	 
	12.15
	 	Bonding	 	 	 96	 

 

 

	 	 	 	 	 	 	 
	TRUST PROVISIONS	 	 	97	 
	 
	 	 	 	 	 	 
	13.1
	 	Establishment Of The Trust	 	 	 97	 
	13.2
	 	Control Of Plan Assets	 	 	 97	 
	13.3
	 	Discretionary Trustee	 	 	 97	 
	13.4
	 	Nondiscretionary Trustee	 	 	 98	 
	13.5
	 	Provisions Relating To Individual Trustees	 	 	 98	 
	13.6
	 	Investment Instructions	 	 	 98	 
	13.7
	 	Fiduciary Standards	 	 	 99	 
	13.8
	 	Powers Of The Trustee	 	 	 99	 
	13.9
	 	Appointment Of Additional Trustee And Allocation Of Responsibilities	 	 	102	 
	13.10
	 	Compensation, Administrative Fees And Expenses	 	 	102	 
	13.11
	 	Records	 	 	103	 
	13.12
	 	Limitation On Liability And Indemnification	 	 	103	 
	13.13
	 	Custodian	 	 	105	 
	13.14
	 	Investment Alternatives Of The Custodian	 	 	106	 
	13.15
	 	Prohibited Transactions	 	 	106	 
	13.16
	 	Exclusive Benefit Rules	 	 	106	 
	13.17
	 	Assignment And Alienation Of Benefits	 	 	106	 
	13.18
	 	Liquidation Of Assets	 	 	107	 
	13.19
	 	Resignation And Removal	 	 	107	 
	 
	 	 	 	 	 	 
	TOP-HEAVY PROVISIONS	 	 	108	 
	 
	 	 	 	 	 	 
	14.1
	 	Applicability Of Rules	 	 	108	 
	14.2
	 	Minimum Contribution	 	 	108	 
	14.3
	 	Minimum Vesting	 	 	108	 
	14.4
	 	Limitations On Allocations	 	 	109	 
	14.5
	 	Use Of Safe Harbor Contributions To Satisfy Top-Heavy Contribution Rules	 	 	109	 
	14.6
	 	Top-Heavy Rules For SIMPLE 401(k) Plans	 	 	109	 
	 
	 	 	 	 	 	 
	AMENDMENT AND TERMINATION	 	 	110	 
	 
	 	 	 	 	 	 
	15.1
	 	Amendment By Sponsor	 	 	110	 
	15.2
	 	Amendment By Employer	 	 	110	 
	15.3
	 	Protected Benefits	 	 	110	 
	15.4
	 	Plan Termination	 	 	110	 
	15.5
	 	Distribution Restrictions Under A Code Section 401(k) Plan	 	 	111	 
	15.6
	 	Qualification Of Employer’s Plan	 	 	111	 
	15.7
	 	Mergers And Consolidations	 	 	111	 
	15.8
	 	Qualification Of Prototype	 	 	112	 
	 
	 	 	 	 	 	 
	GOVERNING LAW	 	 	113	 
	 
	 	 	 	 	 	 
	16.1
	 	Governing Law	 	 	113	 
	16.2
	 	State Community Property Laws	 	 	113	 
	 
	 	 	 	 	 	 
	IRS MODEL AMENDMENT	 	 	115	 
	 
	 	 	 	 	 	 
	AMENDMENT TO THE PROTOTYPE DEFINED CONTRIBUTION PLAN BASIC PLAN DOCUMENT #01	 	 	116	 
	 
	 	 	 	 	 	 
	MINIMUM DISTRIBUTION REQUIREMENTS MODEL AMENDMENT	 	 	121	 
	 
	 	 	 	 	 	 
	INIMUM DISTRIBUTION REQUIREMENTS	 	 	121	 
	 
	 	 	 	 	 	 
	17.1
	 	Effective Date	 	 	121	 
	17.2
	 	Coordination With Minimum Distribution Requirements Previously In Effect	 	 	121	 
	17.3
	 	Precedence	 	 	121	 
	17.4
	 	Requirements Of Treasury Regulations Incorporated	 	 	121	 

 

 

	 	 	 	 	 	 	 
	17.5
	 	TEFRA Section 242(b)(2) Elections	 	 	121	 
	17.6
	 	Required Beginning Date	 	 	121	 
	17.7
	 	Death Of Participant Before Distributions Begin	 	 	121	 
	17.8
	 	Forms Of Distributions	 	 	122	 
	17.9
	 	Amount of Required Minimum Distribution For Each Distribution Calendar Year	 	 	122	 
	17.10
	 	Lifetime Required Minimum Distributions Continue Through Year Of Participant's Death	 	 	122	 
	17.11
	 	Death On Or After Distributions Begin	 	 	122	 
	17.12
	 	Death Before Date Distributions Begin	 	 	123	 
	17.13
	 	Designated Beneficiary	 	 	123	 
	17.14
	 	Distribution Calendar Year	 	 	123	 
	17.15
	 	Life Expectancy	 	 	124	 
	17.16
	 	Participant’s Account Balance	 	 	124	 
	17.17
	 	Required Beginning Date	 	 	124	 
	 
	 	 	 	 	 	 
	CODE SECTION 125 MODEL AMENDMENT	 	 	125	 
	 
	 	 	 	 	 	 
	IRS MODEL AMENDMENT CODE SECTION 125 “DEEMED CONTRIBUTIONS”	 	 	126	 
	 
	 	 	 	 	 	 
	DEEMED IRA AMENDMENT	 	 	127	 
	 
	18.1
	 	Deemed IRAs	 	 	127	 
	 
	18.2
	 	Individual	 	 	127	 
	18.3
	 	Investment In Collectibles	 	 	127	 
	18.4
	 	Restrictions On Directing	 	 	127	 
	18.5
	 	Prohibition Against Investing In Life Insurance	 	 	127	 
	18.6
	 	Nonforfeitability	 	 	127	 
	18.7
	 	Prohibition Against Commingling Of Assets	 	 	127	 
	18.8
	 	Separate Accounting	 	 	127	 
	18.9
	 	Reporting Duties	 	 	128	 
	18.10
	 	Voluntary Employee Contributions	 	 	128	 
	18.11
	 	Substitution Of Non-Bank Trustee Or Custodian	 	 	128	 
	 
	 	 	 	 	 	 
	TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNT PROVISIONS	 	 	128	 
	 
	 	 	 	 	 	 
	19.1
	 	Traditional IRA Or Regular IRA	 	 	128	 
	19.2
	 	Maximum Annual Contribution	 	 	128	 
	19.3
	 	Catch-Up Contribution	 	 	128	 
	19.4
	 	Required Beginning Date	 	 	128	 
	19.5
	 	Tax Year	 	 	129	 
	19.6
	 	Trustee	 	 	129	 
	19.7
	 	Traditional IRA Contributions	 	 	129	 
	19.8
	 	Excess Contributions	 	 	131	 
	19.9
	 	Sunset Provisions	 	 	131	 
	19.10
	 	Maintenance Of An Individual’s IRA	 	 	131	 
	19.11
	 	Methods Of Payment	 	 	131	 
	19.12
	 	Qualifying First-Time Homebuyer Distribution	 	 	132	 
	19.13
	 	Qualifying Higher Education Expenses	 	 	132	 
	19.14
	 	Requirements Of Income Tax Regulations	 	 	132	 
	19.15
	 	Required Beginning Date	 	 	132	 
	19.16
	 	Death Of Individual Before Distributions Begin	 	 	132	 
	19.17
	 	Forms Of Distributions	 	 	133	 
	19.18
	 	Amount Of Required Minimum Distribution For Each Distribution Calendar Year	 	 	133	 
	19.19
	 	Lifetime Required Minimum Distributions Continue Through Year Of Individual’s Death	 	 	133	 
	19.20
	 	Death On Or After Distributions Begin	 	 	134	 
	19.21
	 	Death Before Date Distributions Begin	 	 	134	 
	19.22
	 	Designated Beneficiary	 	 	134	 

 

 

	 	 	 	 	 	 	 
	19.23
	 	Remainder Beneficiary	 	 	135	 
	19.24
	 	Distribution Calendar Year	 	 	135	 
	19.25
	 	Life Expectancy	 	 	135	 
	19.26
	 	Individual’s Account Balance	 	 	135	 
	19.27
	 	Duties Of The Trustee	 	 	135	 
	19.28
	 	Duties Of The Individual	 	 	135	 
	 
	 	 	 	 	 	 
	ROTH INDIVIDUAL RETIREMENT ACCOUNT	 	 	136	 
	 
	 	 	 	 	 	 
	20.1
	 	Roth IRA	 	 	136	 
	20.2
	 	Individual Accounts	 	 	136	 
	20.3
	 	Age  Requirements	 	 	136	 
	20.4
	 	Plan Year	 	 	136	 
	20.5
	 	Timing Of Contributions	 	 	136	 
	20.6
	 	Adjusted Gross Income (AGI)	 	 	136	 
	20.7
	 	Modified AGI	 	 	136	 
	20.8
	 	Applicable Dollar Amount	 	 	136	 
	20.9
	 	Maximum Permissible Amount	 	 	137	 
	20.10
	 	Roth IRA Contributions	 	 	137	 
	20.11
	 	Excess Contribution	 	 	138	 
	20.12
	 	Qualified Distributions	 	 	138	 
	20.13
	 	Qualified Special Purpose Distribution	 	 	139	 
	20.14
	 	Nonqualified Distributions	 	 	139	 
	20.15
	 	Form Of Payment	 	 	139	 
	20.16
	 	Rollover From A Qualified Retirement Plan	 	 	139	 
	20.17
	 	Life Expectancy	 	 	139	 
	20.18
	 	Distributions Commencing Prior To Death	 	 	139	 
	20.19
	 	Distributions After Death	 	 	139	 
	20.20
	 	Ordering Rules Upon Death Of Individual	 	 	140	 
	20.21
	 	Minimum Payment	 	 	140	 
	20.22
	 	Duties Of Trustee	 	 	140	 
	20.23
	 	Duties Of Individual	 	 	140	 
	 
	 	 	 	 	 	 
	ROTH 401(K) DEFERRAL AMENDMENT	 	 	142	 
	 
	 	 	 	 	 	 
	FINAL 401(K) AND (M) AMENDMENT TO THE PROTOTYPE DEFINED CONTRIBUTION PLAN	 	 	148	 

 

 

PROTOTYPE DEFINED CONTRIBUTION PLAN

Sponsored By

SBERA

The Sponsor hereby establishes this Plan for use by its clients who wish to adopt a qualified
retirement plan. This Plan shall be interpreted in a manner consistent with the intention of the
adopting Employer that this Plan satisfy Internal Revenue Code Sections 401 and 501. Any Plan and
Trust established hereunder shall be so established for the exclusive benefit of Plan Participants
and their Beneficiaries and shall be administered under the following terms and conditions:

ARTICLE I

DEFINITIONS

1.1 Actual Contribution Percentage (ACP) The ratio (expressed as a percentage and calculated
separately for each Participant) of:

	 	(a)	 	the Participant’s Contribution Percentage Amounts [as defined at (c)-(f)] for a Plan
Year, to
	 
	 	(b)	 	the Participant’s Compensation for such Plan Year. [Unless otherwise specified in the
Adoption Agreement, Compensation will only include amounts for the period during which the
Employee was eligible to participate.]

Contribution Percentage Amounts on behalf of any Participant shall include:

	 	(c)	 	the amount of Voluntary After-tax Contributions, Required After-tax Contributions,
Matching Contributions (except to the extent such Matching Contributions may be disregarded
in accordance with IRS Notice 98-1), and Qualified Matching Contributions (to the extent
not taken into account for purposes of the ADP test) made under the Plan on behalf of the
Participant,
	 
	 	(d)	 	forfeitures of Excess Aggregate Contributions or Matching Contributions allocated to
the Participant’s account which shall be taken into account in the year in which such
forfeiture is allocated,
	 
	 	(e)	 	at the election of the Employer, Qualified Non-Elective Contributions, and
	 
	 	(f)	 	the Employer may elect to use Elective Deferrals in the Contribution Percentage Amounts
as long as the ADP test is met before the Elective Deferrals are used in the ACP test and
continues to be met following the exclusion of those Elective Deferrals that are used to
meet the ACP test.

Contribution amounts shall not include Matching Contributions, whether or not Qualified, that are
forfeited either to correct Excess Aggregate Contributions, or because the contributions to which
they relate are Excess Deferrals, Excess Contributions, or Excess Aggregate Contributions.

1.2 Actual Deferral Percentage (ADP) The ratio (expressed as a percentage and calculated
separately for each Participant) of:

	 	(a)	 	the amount of Employer contributions [as defined at (c) — (d)] actually contributed to
the Trust on behalf of such Participant for a Plan Year, to
	 
	 	(b)	 	the Participant’s Compensation for such Plan Year. [Unless otherwise specified in the
Adoption Agreement, Compensation will only include amounts received for the period during
which the Employee was eligible to participate.]

- 1 -

 

Employer contributions on behalf of any Participant shall include:

	 	(c)	 	any Elective Deferrals made pursuant to the Participant’s Salary Deferral
Agreement, including Excess Elective Deferrals of Highly Compensated Employees, but
excluding Excess Elective Deferrals distributed to Non-Highly Compensated Employees and
Elective Deferrals that are either taken into account in the Contribution Percentage
test (provided the ADP test is satisfied both with and without exclusion of these
Elective Deferrals) or are returned as excess Annual Additions,
	 
	 	(d)	 	at the election of the Employer, Qualified Non-Elective Contributions and
Qualified Matching Contributions.

For purposes of computing Actual Deferral Percentages, an eligible Employee who fails to make
Elective Deferrals shall be treated as a Participant on whose behalf no Elective Deferrals are
made.

1.3 Adoption Agreement

The document attached to this Plan by which an Employer who adopts a Plan elects the terms and
conditions of a Qualified Plan established under this Basic Plan Document #01.

1.4 Aggregate Limit

The sum of:

	 	(a)	 	125% of the greater of the Average Deferral Percentage of the Non-Highly
Compensated Employees for the Prior Plan Year or the Average Contribution Percentage of
Non-Highly Compensated Employees under the 401(k) Plan subject to Code Section 401(m)
for the Plan Year beginning with or within the Prior Plan Year, and
	 
	 	(b)	 	the lesser of 200% or two percent plus the lesser of such ADP or ACP.

Alternatively, the Aggregate Limit can be determined by substituting “the lesser of 200% or two
percent plus” for “125% of” in (a) above, and substituting “125% of” for “the lesser of 200% or two
percent plus” in (b) above if it would result in a larger Aggregate Limit.

If the Employer has elected in the Adoption Agreement to use the Current Year Testing Method, then,
in calculating the Aggregate Limit for a particular Plan Year, the Non-Highly Compensated
Employees’ ADP and ACP for that Plan Year, instead of the prior Plan Year, is used.

1.5 Allocation Date(s)

The date or dates on which Participant recordkeeping accounts are adjusted to reflect account
activity including but not limited to contributions, loans distributions, Hardship withdrawals, as
well as earnings activity including but not limited to income, capital gains or market fluctuations
in accordance with Article V hereof. Unless the Plan Administrator in a uniform and
nondiscriminatory manner designates otherwise, all allocations for a particular Plan Year will be
made as of the Valuation Date of that Plan Year.

1.6 Annual Additions

The sum of the following amounts credited to a Participant’s account for the Limitation Year:

	 	(a)	 	Employer contributions (under Article III),
	 
	 	(b)	 	Employee contributions (under Article IV),
	 
	 	(c)	 	forfeitures,
	 
	 	(d)	 	Employer allocations under a Simplified Employee Pension Plan,

- 2 -

 

	 	(e)	 	amounts allocated after March 31, 1984, to an individual medical account as
defined in Code Section 415(l)(2), which is part of a pension or annuity plan
maintained by the Employer (these amounts are treated as Annual Additions to a Defined
Contribution Plan though they arise under a Defined Benefit Plan), and
	 
	 	(f)	 	amounts derived from contributions paid or accrued after 1985, in taxable years
ending after 1985, which are either attributable to post-retirement medical benefits
allocated to the account of a Key Employee or to a Welfare Benefit Fund maintained by
the Employer. For purposes of this paragraph, an Employee is a Key Employee if he or
she meets the requirements of paragraph 1.55 at any time during the Plan Year or any
preceding Plan Year.

For purposes of applying the limitations of Code Section 415, the transfer of funds from one
Qualified Plan to another is not considered an Annual Addition. The following are not Employee
contributions for the purposes of Annual Additions:

	 	 	 	Rollover Contributions [as defined in Code Sections 402(e)(6), 403(a)(4), 403(b)(8)
and 408(d)(3)];
	 
	 	(h)	 	repayments of loans made to a Participant from the Plan;
	 
	 	(i)	 	repayments of distributions received by an Employee pursuant to Code Section
411(a)(7)(B) (cash-outs);
	 
	 	 	 	repayments of distributions received by an Employee pursuant to Code Section
411(a)(3)(D) (mandatory contributions); and
	 
	 	 	 	Employee contributions to a Simplified Employee Pension Plan excludible from gross
income under Code Section 408(k)(6).

Employee and Employer make-up contributions under USERRA received during the current Limitation
Year shall be treated as Annual Additions with respect to the Limitation Year to which the make-up
contributions are attributable. Excess Amounts applied in a Limitation Year to reduce Employer
contributions will be considered Annual Additions for such Limitation Year, pursuant to the
provisions of Article X.

1.7 Annuity Starting Date

The first day of the first period for which an amount is paid as an annuity or in any other form.

1.8 Applicable Calendar Year

The First Distribution Calendar Year, and in the event of the recalculation of life expectancy,
such succeeding calendar year. If payments commence in accordance with paragraph 7.4(d) before the
Required Beginning Date, the Applicable Calendar Year is the year such payments commence. If
distribution is in the form of an immediate annuity purchased after the Participant’s death with
the Participant’s remaining interest, the Applicable Calendar Year is the year of purchase.

1.9 Applicable Life Expectancy

The life expectancy or joint and last survivor expectancy calculated using the attained age of the
Participant or Beneficiary as of the Participant’s or Beneficiary’s birthday in the Applicable
Calendar Year, reduced by one for each calendar year which has elapsed since the date life
expectancy was first calculated. If life expectancy is being recalculated, the Applicable Life
Expectancy shall be the life expectancy as so recalculated. The life expectancy of a non-Spouse
Beneficiary may not be recalculated.

1.10 Average Annual Compensation

The average of a Participant’s annual Compensation as defined in paragraph 1.16 of this Basic Plan
Document #01, over the three (3) consecutive Plan Year period ending in either the current year or
any prior year that produces the highest average. If the Participant has fewer than three (3)
years of participation in this Plan, Compensation is averaged over the Participant’s total period
of participation.

- 3 -

 

1.11 Average Contribution Percentage (ACP)

The average of the Actual Contribution Percentages for the eligible Participants in a specified
group of Participants for a Plan Year.

1.12 Average Deferral Percentage (ADP)

The average of the Actual Deferral Percentages for Participants in a specified group of
Participants for a Plan Year.

1.13 Beneficiary

A “Beneficiary” is any person other than the Participant and an estate or trust who by operation of
law, or under the terms of the Plan is entitled to receive any Vested Account Balance of a
Participant under the Plan. A “Designated Beneficiary” is any individual designated or determined
in accordance with Code Section 401(a)(9) and the Regulations issued thereunder, except that it
shall not include any person who becomes a beneficiary by virtue of the laws of inheritance or
intestate succession.

1.14 Break In Service

	 	 	 	If the Hours of Service method is used in determining either an Employee’s initial
or continuing eligibility to participate in the Plan, or the nonforfeitable interest
in the Employee’s account balance derived from Employer contributions, a Break in
Service is a twelve (12) consecutive month period during which the Employee has not
completed more than five hundred (500) Hours of Service.
	 
	 	 	 	For purposes of determining whether a Break in Service has occurred in a particular
computation period, an Employee who is absent from work for maternity or paternity
reasons shall receive credit for Hours of Service which would otherwise have been
credited to such Employee but for such absence, or in any case in which such hours
cannot be determined, with eight (8) Hours of Service per day of such absence. The
Hours of Service to be so credited shall be credited in the computation period in
which the absence begins if the crediting is necessary to prevent a Break in Service
in that period or, in all other cases, in the following computation periods.
	 
	 	(c)	 	With respect to determinations based on the Elapsed Time method, a severance
period of not less than twelve (12) consecutive months. In the case of an Employee who
is absent from work for maternity or paternity reasons, the twelve (12) consecutive
month period beginning on the first anniversary of the first day of such absence shall
not constitute a Break in Service.
	 
	 	(d)	 	Notwithstanding the foregoing, in the case of an Employee who is absent from
work beyond the first anniversary of the first day of absence from work for maternity
or paternity reasons, such period begins on the second anniversary of the first day of
such absence. The period between the first and second anniversaries of said first day
of absence from work is neither a Period of Service for which the Employee will receive
credit nor is such period a Break in Service. For purposes of this paragraph, an
absence from work for maternity or paternity reasons means an absence (1) by reason of
the pregnancy of the Employee, (2) by reason of the birth of a child of the Employee,
(3) by reason of the placement of a child with the Employee in connection with the
adoption of such child by such Employee, or (4) for purposes of caring for such child
for a period beginning immediately following such birth or placement.
	 
	 	(e)	 	An Employer adopting the Elapsed Time method is required to credit periods of
Service and, under the Service spanning rules, certain periods of severance of twelve
(12) months or less. Under the first Service spanning rule, if an Employee severs from
Service as a result of resignation, discharge or retirement and then returns to Service
within twelve (12) months, the Period of Severance is required to be taken into
account. A situation may arise in which an Employee is absent from Service for any
reason other than resignation, discharge, retirement and during the absence a
resignation, discharge or retirement occurs. The second Service spanning rule provides
that, under such circumstances, the Plan is required to take into account the period of
time between the severance from Service date (i.e., the date of resignation, discharge
or

- 4 -

 

	 		 	retirement) and the first anniversary of the date on which the Employee was first
absent, if the Employee returns to Service on or before such first anniversary date.

1.15 Code

The Internal Revenue Code of 1986, including any amendments thereto. Reference to any section or
subsection of the Code, includes reference to any comparable or succeeding provisions of any
legislation which amends, supplements or replaces such section or subsection, and also includes
reference to any Regulation issued pursuant to or with respect to such section or subsection.

1.16 Compensation

The Employer may select one of the following three safe harbor definitions of Compensation in the
Adoption Agreement. The definition of Compensation (for Employers who adopt) under standardized
plans, plans that provide permitted disparity (other than the CODA portion of these plans), Target
Benefit Plans and for Employers determining top-heavy minimum contributions must be one of the
three safe harbor definitions of Compensation. In a Nonstandardized Adoption Agreement, the
Employer may modify the definition of Compensation provided that such definition, as modified,
satisfies the provisions of Code Sections 414(s) and 401(a)(4). Compensation will also include
Compensation by the Employer through another employer or entity under the provisions of Code
Sections 3121 and 3306.

	 	(a)	 	Code Section 3401(a) Wages — All remuneration received by an Employee for
services performed for the Employer which are subject to Federal income tax withholding
at the source. Unless elected otherwise in the Adoption Agreement, Compensation shall
include any amount deferred under a Salary Deferral Agreement which is not includible
in the gross income of a Participant under Code Section 125 in connection with a
cafeteria plan, Code Section 402(e)(3) in connection with a cash or deferred plan, Code
Section 402(h)(1)(B) in connection with a Simplified Employee Pension Plan, Code
Section 401(k) in connection with a SIMPLE Retirement Account, Code Section 457 in
connection with a Plan maintained under said Section, and Code Section 403(b) in
connection with a tax-sheltered annuity plan. Wages are determined without regard to
any rules that limit the remuneration included in wages based on the nature or location
of the employment or the services performed [such as the exception for agricultural
labor in Code Section 3401(a)(2)]. For Limitation Years beginning after December 31,
1997, for purposes of applying the limitations of this paragraph, Compensation paid or
made available during such Limitation Year shall include any Elective Deferral [as
defined in Code Section 402(g)(3)], and any amount which is contributed or deferred by
the Employer at the election of the Employee and which is not includible in the gross
income of the Employee by reason of Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1),
or 403(b).
	 
	 	(b)	 	Code Sections 6041, 6051 And 6052 Reportable Wages — All remuneration received
by an Employee for services performed for the Employer which are required to be
reported on Form W-2. Unless otherwise elected in the Adoption Agreement, Compensation
shall include any amount deferred under a Salary Deferral Agreement which is not
includible in the gross income of a Participant under Code Section 125 in connection
with a cafeteria plan, Code Section 402(e)(3) in connection with a cash or deferred
plan, Code Section 402(h)(1)(B) in connection with a Simplified Employee Pension Plan,
and Code Section 403(b) in connection with a tax-sheltered annuity plan. A
Participant’s wages includes remuneration defined at subparagraph (a) above and all
other remuneration paid to an Employee by the Employer (in the course of the Employer’s
trade or business) for which the Employer is required to furnish the Employee a written
statement under Code Sections 6041(d), 6051(a)(3) and 6052. Such amount must be
determined without regard to any rules that limit the remuneration included in wages
based on the nature or location of the employment or the services performed [such as
the exception for agricultural labor in Code Section 3401(a)(2)]. For Limitation Years
beginning after December 31, 1997, for purposes of applying the limitations of this
paragraph, Compensation paid or made available during such Limitation Year shall
include any Elective Deferral [as defined in Code Section 402(g)(3)], and any amount
which is contributed or deferred by the Employer at the election of the Employee and
which is not includible in the gross income of the Employee by reason of Code Sections
125, 132(f)(4), 402(e)(3), 402(h)(1) or 403(b).

- 5 -

 

	 	(c)	 	Code Section 415 Compensation — A Participant’s Earned Income, wages,
salaries, and fees for professional services and other amounts received, without regard
to whether or not an amount is paid in cash, for personal services actually rendered in
the course of employment with the Employer maintaining the Plan. Compensation
includes, but is not limited to, commissions paid salesmen, Compensation for services
on the basis of a percentage of profits, commissions on insurance premiums, tips,
bonuses, fringe benefits and reimbursements or other expense allowances under a
nonaccountable plan [as described in Regulation Section 1.62-2(c)]. For Limitation
Years beginning after December 31, 1997, for purposes of applying the limitations of
this paragraph, Compensation paid or made available during such Limitation Year shall
include any Elective Deferral [as defined in Code Section 402(g)(3)], and any amount
which is contributed or deferred by the Employer at the election of the Employee and
which is not includible in the gross income of the Employee by reason of Code Sections
125, 132(f)(4), 402(e)(3), 402(h)(1) or 403(b). Compensation excludes the following:

	 	(1)	 	for Plan Years beginning before January 1, 1998, Employer
contributions made under the terms of a Salary Deferral Agreement between an
Employee and the Employer to a plan of deferred compensation which are not
includible in the Employee’s gross income for the taxable year in which
contributed. Such contributions shall include any amount deferred under Code
Section 125 in connection with a cafeteria plan, Code Section 402(e)(3) in
connection with a cash or deferred plan, Code Section 402(h)(1)(B) in
connection with a Simplified Employee Pension Plan, Code Section 402(k) in
connection with a SIMPLE Retirement Account, Code Section 457 in connection
with a Plan maintained under said Section, and Code Section 403(b) in
connection with a tax-sheltered annuity plan,
	 
	 	(2)	 	distributions received from a plan of deferred compensation,
	 
	 	(3)	 	amounts realized from the exercise of a non-qualified stock
option, or when restricted stock (or property) held by the Employee either
becomes freely transferable or is no longer subject to a substantial risk of
forfeiture,
	 
	 	(4)	 	amounts realized from the sale, exchange or other disposition
of stock acquired under a qualified stock option, and
	 
	 	(5)	 	amounts deferred by an Employee under the terms of a
non-qualified deferred compensation plan.

Unless otherwise specified by the Employer in the Adoption Agreement, Compensation shall be
determined as provided in Code Section 3401(a) [paragraph (a) above]. Notwithstanding the
foregoing, the Compensation of a Participant who is a sole proprietor, partner or a member of a
limited liability corporation (LLC) shall be determined under Code Section 415. Unless indicated
otherwise in the Adoption Agreement, the definition of Compensation used in nondiscrimination
testing (ADP/ACP Testing) will be determined by the Employer. Notwithstanding any other provision
to the contrary, if the Plan is an amendment and restatement of a Qualified Plan, for Plan Years
ending prior to the Plan Year in which the amendment or restatement is adopted, Compensation shall
have the meaning set forth in the Qualified Plan prior to its amendment.

Exclusions From Compensation A Participant’s Compensation shall be determined in accordance with
paragraph (a), (b) or (c) above and shall not exclude any item of income unless provided in the
basic definition or elected by the Employer in the Adoption Agreement.

Annual Additions And Top-Heavy Rules Except as elected on the Adoption Agreement, for purposes of
Article X and XIV, Compensation shall be Code Section 415 Compensation as described in paragraph
1.16(c). For Plan Years beginning before January 1, 1998, Compensation excludes amounts deferred
under a plan of deferred Compensation as described at paragraph 1.16(c)(1). For Plan Years
beginning after December 31, 1997, Compensation includes amounts deferred under a plan of deferred
compensation as described at paragraph 1.16(c)(1). For purposes of

- 6 -

 

applying the limitations of Article X, Compensation for a Limitation Year is the Compensation
actually paid or made available during such Limitation Year. For Limitation Years beginning after
December 31, 1997, for purposes of applying the limitations of this paragraph, Compensation paid or
made available during such Limitation Year shall include any Elective Deferral [as defined in Code
Section 402(g)(3)], and any amount which is contributed or deferred by the Employer at the election
of the Employee and which is not includible in the gross income of the Employee by reason of Code
Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b).

If the Plan is or becomes Top-Heavy in any Plan Year beginning after December 31, 1983, the
provisions of Article XIV will supersede any conflicting provisions in the Basic Plan Document #01
or Adoption Agreement.

Contributions Made On Behalf Of Disabled Participants Compensation with respect to a Participant in
a Defined Contribution Plan who is permanently and totally disabled [as defined in Code Section
22(e)(3)] is the Compensation such Participant would have received for the Limitation Year if the
Participant had been paid at the rate of Compensation paid immediately before becoming permanently
and totally disabled; for Limitation Years beginning before January 1, 1997, but not for Limitation
Years beginning after December 31, 1996, such imputed Compensation for the disabled Participant may
be taken into account only if the Participant is not a Highly Compensated Employee (defined at
paragraph 1.52) and contributions made on behalf of such Participant are nonforfeitable when made.
Compensation will mean Compensation as that term is defined in this paragraph.

Highly Compensated And Key Employees For purposes of paragraphs 1.52 and 1.55, Compensation shall
be Code Section 415 Compensation as described in paragraph 1.16(c). Such definition shall include
any amount deferred under Code Section 125 in connection with a cafeteria plan, Code Section
402(e)(3) in connection with a cash or deferred plan, Code Section 402(h)(1)(B) in connection with
a Simplified Employee Pension Plan, Code Section 402(k) in connection with a SIMPLE Retirement
Account (SIMPLE), Code Section 457 in connection with a Plan maintained under said Section, and
Code Section 403(b) in connection with a tax-sheltered annuity plan. The Employer, if elected in
the Adoption Agreement, may limit Compensation considered for purposes of the Plan for these
Participants.

Computation Period The Plan Year, while eligible to participate, shall be the computation period
for purposes of determining a Participant’s Compensation, unless the Employer selects a different
computation period in the Adoption Agreement.

Limitation On Compensation The annual Compensation of each Participant which may be taken into
account for determining all benefits provided under the Plan for any year, shall not exceed the
limitation as imposed by Code Section 401(a)(17), as adjusted under Code Section 401(a)(17)(B). If
a Plan has a Plan Year that contains fewer than twelve (12) calendar months, the annual
Compensation limit for that period is an amount equal to the limitation as imposed by Code Section
401(a)(17) as adjusted for the calendar year in which the Compensation period begins, multiplied by
a fraction, the numerator of which is the number of full months in the short Plan Year and the
denominator of which is twelve (12).

USERRA For purposes of Employee and Employer make-up contributions, Compensation during the period
of military service shall be deemed to be the Compensation the Employee would have received during
such period if the Employee were not in qualified military service, based on the rate of pay the
Employee would have received from the Employer but for the absence due to military leave. If the
Compensation the Employee would have received during the leave is not reasonably certain,
Compensation will be equal to the Employee’s average Compensation from the Employer during the
twelve (12) month period immediately preceding the military leave or, if shorter, the Employee’s
actual period of employment with the Employer.

Definition of Compensation for Purposes of Safe Harbor CODA Provisions Compensation for the
purposes of a Safe Harbor CODA is defined in this paragraph 1.16 of this Basic Plan Document #01.
No dollar limit other than the limit imposed by Code Section 401(a)(17) applies to the Compensation
of a Non-Highly Compensated Employee. For purposes of determining the Compensation subject to a
Participant’s salary deferral election, the Employer may use an alternative definition to the one
described above provided such alternative definition is a reasonable definition within the meaning
of Section 1.414(s)-1(d)(2) of the Regulations and permits each Participant

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to contribute sufficient Elective Deferrals to receive the maximum amount of Matching Contributions
(determined using the definition of Compensation described above) available to the Participant
under the Plan.

Definition Of Compensation For Purposes Of 401(k) SIMPLE Provisions For purposes of paragraphs 1.36
and 3.2, of this Basic Plan Document #01, Compensation is the sum of the wages, tips and other
compensation from the Employer subject to Federal income tax withholding [as described in Code
Section 6051(a)(3)] and the Employee’s salary reduction contributions made under Code Section 125
in connection with a cafeteria plan, Code Section 402(e)(3) in connection with a cash or deferred
plan, Code Section 402(h)(1)(B) in connection with a Simplified Employee Pension Plan, Code Section
402(k) in connection with a SIMPLE Retirement Account, Code Section 457 in connection with a plan
maintained under said Section and Code Section 403(b) in connection with a tax-sheltered annuity
plan, required to be reported by the Employer on Form W-2 [as described in Code Section
6051(a)(8)]. For self-employed individuals, Compensation means net earnings from self-employment
determined under Code Section 1402(a) prior to subtracting any contributions made to this Plan on
behalf of any Employee. The provisions of the Plan implementing the limit on Compensation under
Code Section 401(a)(17) apply to the Compensation under paragraph 4.8 of Article IV.

1.17 Covered Compensation

A Participant’s Covered Compensation for a Plan Year is the average (without indexing) of the
Taxable Wage Bases in effect for each calendar year in the thirty-five (35) year period ending with
the calendar year in which the Participant attains (or will attain) social security retirement age.
In determining a Participant’s Covered Compensation for a Plan Year, the Taxable Wage Base in
effect for the current Plan Year and any subsequent Plan Year will be assumed to be the same as the
taxable wage base in effect as of the beginning of the Plan Year for which the determination is
being made. Covered Compensation will be determined for the year designated by the Employer in
Section III(C) of the Target Benefit Plan Adoption Agreement.

A Participant’s Covered Compensation for a Plan Year before the end of the thirty-five (35) year
period ending with the last day of the calendar year in which the Participant attains social
security retirement age is the Taxable Wage Base in effect as of the beginning of the Plan Year. A
Participant’s Covered Compensation for a Plan Year after such thirty-five (35) year period is the
Participant’s Covered Compensation for the Plan Year during which the thirty-five (35) year period
ends.

1.18 Custodian

The institution or institutions (who may be the Sponsor or an affiliate) and any successors or
assigns thereto, appointed by the Employer to hold the assets of the Trust as provided at paragraph
13.2 herein.

1.19 Davis-Bacon Act

40 U.S.C. Section 276a et seq. as may be amended from time to time.

1.20 Defined Benefit Plan

A plan under which a Participant’s benefit is determined by a formula contained in the plan and no
Employee accounts are maintained for Participants.

1.21 Defined Benefit (Plan) Fraction

For Limitation Years beginning before January 1, 2000, a fraction, the numerator of which is the
sum of the Participant’s Projected Annual Benefits under all the Defined Benefit Plans (whether or
not terminated) maintained by the Employer, and the denominator of which is the lesser of 125% of
the dollar limitation determined for the Limitation Year under Code Sections 415(b) and (d) or 140%
of the Highest Average Compensation, including any adjustments under Code Section 415(b).

Transitional Rule If an Employee was a Participant as of the first day of the first Limitation
Year beginning after 1986, in one or more Defined Benefit Plans maintained by the Employer which
were in existence on May 6, 1986, the denominator of this fraction will not be less than 125% of
the sum of the annual benefits under such Plans which the Participant had accrued as of the close
of the last Limitation Year beginning before 1987, disregarding any changes in the terms and
conditions of the Plan after May 5, 1986. The preceding sentence applies only if the

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Defined Benefit Plans individually and in the aggregate satisfied the requirements of Code Section
415 for all Limitation Years beginning before 1987.

1.22 Defined Contribution Dollar Limitation

Thirty thousand dollars ($30,000) as adjusted by the Secretary of the Treasury for increases in the
cost-of-living. This limitation shall be adjusted by the Secretary at the same time and in the
same manner as under Code Section 415(d). Such increases will be in multiples of five thousand
dollars ($5,000).

1.23 Defined Contribution Plan

A plan under which Employee accounts are maintained for each Participant to which all
contributions, forfeitures, investment income and gains or losses, and expenses are credited or
deducted. A Participant’s benefit under such plan is based solely on the fair market value of his
or her account balance.

1.24 Defined Contribution (Plan) Fraction

For Limitation Years beginning before January 1, 2000, a fraction, the numerator of which is the
sum of the Annual Additions to the Participant’s account under all the Defined Contribution Plans
(whether or not terminated) maintained by the Employer for the current and all prior Limitation
Years (including the Annual Additions attributable to the Participant’s nondeductible Employee
contributions to all Defined Benefit Plans, whether or not terminated, maintained by the Employer,
and the Annual Additions attributable to all Welfare Benefit Funds as defined in paragraph 1.116,
individual medical accounts as defined in Code Section 415(l)(2) and Simplified Employee Pension
Plans as defined in paragraph 1.99, maintained by the Employer), and the denominator of which is
the sum of the maximum aggregate amounts for the current and all prior Limitation Years of Service
with the Employer (regardless of whether a Defined Contribution Plan was maintained by the
Employer). The maximum aggregate amount in the Limitation Year is the lesser of 125% of the dollar
limitation determined under Code Sections 415(b) and (d) in effect under Code Section 415(c)(1)(A)
or 35% of the Participant’s Compensation for such year.

Transitional Rule If an Employee was a Participant as of the end of the first day of the first
Limitation Year beginning after 1986, in one or more Defined Contribution Plans maintained by the
Employer which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if
the sum of this fraction and the Defined Benefit Fraction would otherwise exceed 1.0 under the
terms of this Plan. Under the adjustment, an amount equal to the product of the excess of the sum
of the fractions over 1.0 multiplied by the denominator of this fraction, will be permanently
subtracted from the numerator of this fraction. The adjustment is calculated using the fractions
as they would be computed as of the end of the last Limitation Year beginning before 1987, and
disregarding any changes in the terms and conditions of the Plan made after May 6, 1986, but using
the Code Section 415 limitation applicable to the first Limitation Year beginning on or after
January 1, 1987. The Annual Addition for any Limitation Year beginning before 1987, shall not be
re-computed to treat all Employee contributions as Annual Additions.

1.25 Direct Rollover

A payment made by the Plan to an Eligible Retirement Plan that is specified by the Participant or a
payment received by the Plan from an Eligible Retirement Plan on behalf of a Participant or an
Employee, if selected in the Adoption Agreement by the Employer.

1.26 Disability

Unless the Employer has elected a different definition in the Adoption Agreement, Disability is
defined as an illness or injury of a potentially permanent nature, expected to last for a
continuous period of not less than 12 months or can be expected to result in death, certified by a
physician selected by or satisfactory to the Employer, which prevents the Participant from engaging
in any occupation for wage or profit for which the Employee is reasonably fitted by training,
education or experience. If elected by the Employer in the Adoption Agreement, nonforfeitable
contributions will be made to the Plan on behalf of each disabled Participant who is not a Highly
Compensated Employee (as defined at paragraph 1.52). Compensation for purposes of calculating the
contribution will mean Compensation as defined at paragraph 1.16 herein.

1.27 Distribution Calendar Year

A calendar year for which a minimum distribution is required.

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1.28 Early Retirement Age

The age set by the Employer in the Adoption Agreement, not less than age fifty five (55), at which
a Participant becomes fully vested and is eligible to retire and receive his or her benefits under
the Plan.

1.29 Early Retirement Date

The date elected by the Employer in the Adoption Agreement on which a Participant or former
Participant has satisfied the Early Retirement Age requirements. If no election is made on the
Adoption Agreement, it shall mean the date on which a Participant attains his or her Early
Retirement Age.

A former Participant who has separated from Service after satisfying any service requirement but
before satisfying the Early Retirement Age and who thereafter reaches the age requirement elected
on the Adoption Agreement shall be entitled to receive benefits under the Plan (other than full
vesting and any allocation of Employer contributions) as though the requirements for Early
Retirement Age had been satisfied.

1.30 Earned Income

Net earnings from self-employment in the trade or business with respect to which the Plan is
established, determined without regard to items not included in gross income and the deductions
allocable to such items, provided that personal services of the individual are a material
income-producing factor. Earned Income shall be reduced by contributions made by an Employer to a
Qualified Plan to the extent deductible under Code Section 404. Net earnings shall be determined
taking into account the deduction for one-half of self-employment taxes allowed to the taxpayer
under Code Section 164(f), to the extent deductible for taxable years beginning after December 31,
1989.

1.31 Effective Date

The date on which the Employer’s Plan or amendment to such Plan becomes effective. For amendments
reflecting statutory and regulatory changes contained in The Uruguay Round Agreements Act of the
General Agreement on Tariffs and Trade (GATT), The Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA), The Small Business Job Protection Act of 1996 (SBJPA), The Taxpayer
Relief Act of 1997 (TRA’97), The Internal Revenue Service Restructuring and Reform Act of 1998
(IRSRRA), and the Community Renewal Tax Relief Act of 2000 (CRA), the Effective Date(s) of the
applicable provisions of this legislation will be the earlier of the date upon which such amendment
is first administratively applied or the first day of the Plan Year following the date of adoption
of such amendment or adoption of the Basic Plan Document #01 and accompanying Adoption Agreement.

1.32 Election Period

The period which begins on the first day of the Plan Year in which the Participant attains age
thirty-five (35) and ends on the date of the Participant’s death. If a Participant separates from
Service prior to the first day of the Plan Year in which age thirty-five (35) is attained, the
Election Period shall begin on the date of separation, with respect to the account balance as of
the date of separation.

1.33 Elapsed Time

A method of determining an Employee’s entitlement under the Plan with respect to eligibility to
participate, and/or vesting, which is not based on the Employee’s completion of a specified number
of Hours of Service during a consecutive twelve (12) month period, but rather with reference to the
total period of time which elapses during which the Employee is employed by the Employer
maintaining the Plan.

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

1.34 Elective Deferrals

Employer contributions in lieu of cash Compensation made to the Plan on behalf of the Participant
pursuant to a Salary Deferral Agreement or other deferral mechanism. With respect to any taxable
year, a Participant’s Elective

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Deferral is the sum of all Employer contributions made on behalf of such Participant pursuant to an
election to defer under any qualified cash or deferred arrangement as described in Code Section
401(k), any Simplified Employee Pension Plan with a cash or deferred arrangement as described in
Code Section 408(k)(6), any SIMPLE IRA Plan described in Code Section 408(p), any eligible deferred
compensation plan under Code Section 457, any plan as described under Code Section 501(c)(18), and
any Employer contributions made on behalf of a Participant for the purchase of an annuity contract
under Code Section 403(b) pursuant to a Salary Deferral Agreement. Elective Deferrals shall not
include any deferrals properly distributed as excess Annual Additions.

1.35 Eligible Employee

For purposes of the SIMPLE 401(k) Plan provisions, any Employee who is entitled to make Elective
Deferrals under the terms of the SIMPLE 401(k) Plan.

1.36 Eligible Employer

An Eligible Employer means with respect to any Plan Year, an Employer who had no more than one
hundred (100) Employees who received at least $5,000 of Compensation from the Employer for the
preceding year. In applying the preceding sentence, all Employees of controlled groups of
corporations under Code Section 414(b), all Employees of trades or businesses (whether incorporated
or not) under common control under Code Section 414(c), all Employees of affiliated service groups
under Code Section 414(m), and Leased Employees required to be treated as the Employer’s Employees
under Code Section 414(n), are taken into account.

An Eligible Employer that elects to have the SIMPLE 401(k) Plan provisions apply to the Plan that
fails to be an Eligible Employer for any subsequent year, is treated as an Eligible Employer for
the two (2) years following the last year the employer was an Eligible Employer. If the failure is
due to any acquisition, disposition, or similar transaction involving an Eligible Employer, the
preceding sentence applies only if the provisions of Code Section 410(b)(6)(C)(I) are satisfied.

1.37 Eligible Participant

Any Employee who is eligible to make a Voluntary or Required After-tax Contribution or an Elective
Deferral (if the Employer takes such contributions into account in the calculation of the Actual
Contribution Percentage), or to receive a Matching Contribution (including forfeitures) or a
Qualified Matching Contribution. If a Required After-tax Contribution is required as a condition
of participation in the Plan, any Employee who would be a Participant in the Plan if such Employee
made such a contribution shall be treated as an Eligible Participant even though no Employee
contributions are made.

1.38 Eligible Retirement Plan

An individual retirement account (IRA) as described in Code Section 408(a), an individual
retirement annuity (IRA) as described in Code Section 408(b), an annuity plan as described in Code
Section 403(a), or a qualified trust as described in Code Section 401(a), which accepts Eligible
Rollover Distributions. However, in the case of an Eligible Rollover Distribution paid to a
surviving Spouse, an Eligible Retirement Plan is an individual retirement account or individual
retirement annuity.

1.39 Eligible Rollover Distribution

An Eligible Rollover Distribution is any distribution of all or any portion of the balance to the
credit of the Participant except that an Eligible Rollover Distribution does not include:

	 	(a)	 	any distribution that is one of a series of substantially equal periodic
payments made not less frequently than annually for the life (or life expectancy) of
the Participant or the joint lives (or joint life expectancies) of the Participant and
the Participant’s Beneficiary, or for a specified period of ten (10) years or more,
	 
	 	(b)	 	any distribution to the extent such distribution is required under Code Section
401(a)(9),
	 
	 	(c)	 	any Hardship withdrawals under Code Section 401(k)(2)(B)(i)(IV) received after
December 31, 1998, (or if elected by the Employer in accordance with IRS Notice 99-5,
received after December 31, 1999).

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	 	(d)	 	the portion of any distribution that would not be includible in gross income if
paid to the Participant (determined without regard to the exclusion for net unrealized
appreciation with respect to Employer securities),
	 
	 	(e)	 	excess amounts which are returned to a Participant in accordance with
paragraphs 7.11, 7.12, 7.13, and 10.2,

any other distribution(s) that is reasonably expected to total less than $200 during
a year,

corrective distributions of Excess Elective Deferrals under Code Section 402(g), and
the income allocable thereto,

Excess Contributions and Excess Aggregate Contributions under Code Section 401(k)
and Code Section 401(m), and the income allocable thereto,

PS 58 costs, and

dividends paid on securities under Code Section 404(k).

1.40 Employee

A person employed by an Employer maintaining the Plan (including Self-Employed Individuals and
partners). The term Employee shall include Employees of a member of an affiliated service group
[as defined in Code Section 414(m)], all Employees of a controlled group of corporations [as
defined in Code Section 414(b)], all Employees of any incorporated or unincorporated trade or
business which is under common control [as defined in Code Section 414(c)], Leased Employees [as
defined in Code Section 414(n)], and any Employee required to be aggregated by Code Section 414(o).
All such Employees shall be treated as employed by a single Employer.

Leased Employees shall not be Employees for purposes of participation in any Plan established under
a Nonstandardized Adoption Agreement, unless otherwise elected by the Employer in the Adoption
Agreement. Leased Employees [as defined in Code Sections 414(n) or 414(o)] shall be considered
Employees in a Plan established under a standardized Adoption Agreement except as otherwise
provided in this paragraph. Exclusion under a standardized Adoption Agreement is available only if
Leased Employees do not constitute more than 20% of the recipient Employer’s non-highly compensated
work force, and the Employer complies with the requirements as outlined in paragraph 2.7, and so
elects in the Adoption Agreement.

An individual shall only be treated as an Employee if he or she is reported on the payroll records
of the Employer or an employer who is a member of the same controlled group or affiliated service
group as a common law employee. The term does not include any other common law employee or any
Leased Employee. It is expressly intended that individuals not treated as common law employees by
the Employer or a member of the same controlled group or affiliated service group on their payroll
records, as identified by a specific job code or work status code, are to be excluded from plan
participation even if a court or administrative agency subsequently determines that such
individuals are common law employees and not independent contractors.

1.41 Employer

The Self-Employed Individual, partnership, corporation or other organization which adopts this Plan
including any entity that succeeds the Employer and adopts this Plan. For purposes of Article X,
Limitations on Allocations, Employer shall mean the Employer that adopts this Plan, and all members
of a controlled group of corporations [as defined in Code Section 414(b) as modified by Code
Section 415(h)], all commonly controlled trades or businesses [as defined in Code Section 414(c) as
modified by Code Section 415(h)] or affiliated service groups [as defined in Code Section 414(m)]
of which the adopting Employer is a part, and any other entity required to be aggregated with the
Employer pursuant to Regulations under Code Section 414(o).

In addition to such required treatment, the Plan Sponsor may, in its discretion, designate as an
Employer any business entity which is not such a “common control,” “affiliated service group” or
“predecessor” business entity

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which is otherwise affiliated with the Employer, subject to such nondiscriminatory limitations as
the Employer may impose.

1.42 Entry Date

The date as of which an Employee who has satisfied the Plan’s eligibility requirements enters or
reenters the Plan, as defined in the Adoption Agreement.

1.43 ERISA

The Employee Retirement Income Security Act of 1974, as amended and any successor statute.

1.44 Excess Aggregate Contributions

The excess, with respect to any Plan Year, of:

	 	(a)	 	the aggregate Contribution Percentage Amounts taken into account in computing
the numerator of the Contribution Percentage actually made on behalf of Highly
Compensated Employees for such Plan Year, over
	 
	 	(b)	 	the maximum Contribution Percentage Amounts permitted by the ACP test
(determined hypothetically by reducing contributions made on behalf of Highly
Compensated Employees in order of their Contribution Percentages beginning with the
highest of such percentages).
	 
	 	(c)	 	Such determination shall be made after first determining Excess Elective
Deferrals pursuant to paragraph 1.47 and then determining Excess Contributions pursuant
to paragraph 1.46.

1.45 Excess Annual Additions

The excess of the Participant’s Annual Additions for the Limitation Year over the Maximum
Permissible Amount.

1.46 Excess Contribution

With respect to any Plan Year, the excess of:

the aggregate amount of Employer contributions actually taken into account in
computing the ADP of Highly Compensated Employees for such Plan Year, over

	 	(b)	 	the maximum amount of such contributions permitted by the ADP Test (determined
by hypothetically reducing contributions made on behalf of Highly Compensated Employees
in order of the ADPs, beginning with the highest of such percentages).

1.47 Excess Elective Deferrals

Those Elective Deferrals that are includible in a Participant’s gross income under Code Section
402(g) to the extent such Participant’s Elective Deferrals for a taxable year exceed the dollar
limitation under Code Section 402(g). Excess Elective Deferrals shall be treated as Annual
Additions under the Plan, unless such amounts are distributed no later than the first April 15
following the close of the Participant’s taxable year.

1.48 Expected Year Of Service

An eligibility computation period during which an Employee in an eligible class is expected to
complete a Year of Service. If an Employee who is not expected to complete a Year of Service
actually completes a Year of Service during an applicable computation period, he shall be deemed to
have become an Employee in the eligible class as of the first day of the eligibility computation
period in which he first completes a Year of Service.

1.49 First Distribution Calendar Year

For distributions beginning before the Participant’s death, the First Distribution Calendar Year is
the calendar year immediately preceding the calendar year which contains the Participant’s Required
Beginning Date. For distributions beginning after the Participant’s death, the First Distribution
Calendar Year is the calendar year in which distributions are required to begin pursuant to
paragraph 7.10.

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1.50 Hardship

An immediate and heavy financial need of the Employee where such Employee lacks other available
financial resources to satisfy such financial need.

1.51 Highest Average Compensation

For Limitation Years beginning before January 1, 2000, the average Compensation for the three (3)
consecutive Years of Service with the Employer that produces the highest average. A Year of
Service with the Employer is the twelve (12) consecutive month period defined in the Adoption
Agreement, or, if not indicated in the Adoption Agreement, as defined in paragraph 1.117.

1.52 Highly Compensated Employee

Effective for years after December 31, 1996, the term Highly Compensated Employee means any
Employee who: (1) is a 5% owner at any time during the year or preceding year, or (2) for the
preceding year had Compensation from the Employer in excess of $80,000 and if the Employer so
elects in the Adoption Agreement, is in the Top-Paid Group for the preceding year. The $80,000
amount is adjusted at the same time and in the same manner as under Code Section 415(d), except
that the base period is the calendar quarter ending September 30, 1996.

For the determination of who is a Highly Compensated Employee, the applicable year of the Plan for
which a determination is being made is called a determination year and the preceding twelve (12)
month period is called a look-back year. Employees who do not meet the Highly Compensated Employee
definition are considered Non-Highly Compensated Employees.

A Highly Compensated former Employee is based on the rules applicable to determining Highly
Compensated Employee status in effect for that determination year, in accordance with Section
1.414(q)-1T, A-4 of the temporary Income Tax Regulations and IRS Notice 97-45.

In determining whether an Employee is a Highly Compensated Employee for years beginning in 1997,
the amendments to Code Section 414(q) stated above are treated as having been in effect for years
beginning in 1996. In order to be effective, a Top-Paid Group election or calendar year data
election must apply consistently to all plans of the Employer that begin with or within the same
calendar year.

1.53 Hour Of Service

	 	(a)	 	Unless otherwise specified in the Adoption Agreement, each hour for which an
Employee is paid, or entitled to payment, for the performance of duties for the
Employer. These hours shall be credited to the Employee for the computation period in
which the duties are performed, and
	 
	 	(b)	 	each hour for which an Employee is paid, or entitled to payment, by the
Employer 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), layoff, jury duty, military duty
or leave of absence. No more than five hundred and one (501) Hours of Service shall be
credited under this paragraph for any single continuous period (whether or not such
period need occur in a single computation period). Hours under this paragraph shall be
calculated and credited pursuant to Section 2530.200b-2 of the Department of Labor
Regulations which are incorporated herein by this reference, and
	 
	 	(c)	 	each hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Employer. The same Hours of Service shall not be credited
both under paragraph (a) or paragraph (b), as the case may be, and under this paragraph
(c). These hours shall be credited to the Employee for the computation period or
periods to which the award or agreement pertains rather than the computation period in
which the award, agreement or payment is made.

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	 	(d)	 	Hours of Service shall be credited for employment with the Employer and with
other members of an affiliated service group [as defined in Code Section 414(m)], a
controlled group of corporations [as defined in Code Section 414(b)], or a group of
trades or businesses under common control [as defined in 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) and the Regulations thereunder. Hours of
Service shall also be credited for any individual considered an Employee for purposes
of this Plan under Code Section 414(n) or Code Section 414(o) and the Regulations
thereunder.
	 
	 	(e)	 	Solely for purposes of determining whether a Break in Service, as defined in
paragraph 1.14, for participation and vesting purposes has occurred in a computation
period, an individual who is absent from work for maternity or paternity reasons shall
receive credit for the Hours of Service which would otherwise have been credited to
such individual but for such absence, or in any case in which such hours cannot be
determined, eight (8) Hours of Service per day of such absence. For purposes of this
paragraph, an absence from work for maternity or paternity reasons means an absence by
reason of the pregnancy of the individual, by reason of a birth of a child of the
individual, by reason of the placement of a child with the individual in connection
with the adoption of such child by such individual, or for purposes of caring for such
child for a period beginning immediately following such birth or placement. The Hours
of Service credited under this paragraph shall be credited in the computation period in
which the absence begins if the crediting is necessary to prevent a Break in Service in
that period, or in all other cases, in the following computation period. No more than
five hundred and one (501) hours will be credited under this paragraph.

Hours of Service shall be determined under the hours counting method as elected by
the Employer in the Adoption Agreement. If no election is made, actual hours under
the hours counting method will be used.

1.54 Integration Level

The amount of Compensation specified in the Adoption Agreement at or below which the rate of
contributions or benefits (expressed in each case as a percentage of such Compensation) provided
under the Plan is less than the rate of contributions or benefits (expressed in each case as a
percentage of such Compensation) provided under the Plan with respect to Compensation above such
level. The Adoption Agreement must specify an Integration Level in effect for the Plan Year for
each Participant. No Integration Level in effect for a particular year may exceed the contribution
and benefit base (“Taxable Wage Base”) under Section 230 [Code Section 3121(a)(1)] of the Social
Security Act in effect on the first day of the Plan Year.

1.55 Key Employee

Any Employee or former Employee (and the Beneficiaries of such Employee) who at any time during the
determination period was:

	 	(a)	 	an officer of the Employer if such individual’s annual Compensation exceeds 50%
of the dollar limitation under Code Section 415(b)(1)(A) (the defined benefit maximum
annual benefit),
	 
	 	(b)	 	an owner or an individual considered an owner under Code Section 318 of one of
the ten (10) largest interests in the Employer if such individual’s Compensation
exceeds 100% of the dollar limitation under Code Section 415(c)(1)(A) and such
ownership exceeds 1/2%,
	 
	 	(c)	 	a more than 5% owner of the Employer, or
	 
	 	(d)	 	a 1% owner of the Employer who has an annual Compensation of more than
$150,000.

The determination period is the Plan Year containing the Top-Heavy Determination Date and the four
(4) preceding Plan Years. The determination of Key Employee status will be made in accordance with
Code Section 416(i)(1) and the Regulations thereunder.

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1.56 Leased Employee

Effective for Plan Years beginning after December 31, 1996, any person (other than an Employee of
the recipient) who, pursuant to an agreement between the recipient and any other person (“leasing
organization”), has performed services for the recipient [or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)] on a substantially full-time basis for a
period of at least one year and such services are performed under the primary direction or control
of the recipient Employer. If a Leased Employee is treated as an Employee by reason of this
paragraph 1.56, “Compensation” includes Compensation from the leasing organization which is
attributable to services performed for the Employer.

1.57 Limitation Year

The calendar year or such other twelve (12) consecutive month period designated by the Employer in
the Adoption Agreement for purposes of determining the maximum Annual Additions to a Participant’s
account. All Qualified Plans maintained by the Employer must use the same Limitation Year. If the
Limitation Year is amended to a different twelve (12) consecutive month period, the new Limitation
Year must begin on a date within the Limitation Year in which the amendment is made. If no
designation is made on the Adoption Agreement, the Limitation Year will automatically default to
the Plan Year.

1.58 Master Or Prototype Plan

A plan, the form of which is the subject of a favorable opinion letter from the Internal Revenue
Service.

1.59 Matching Contribution

An Employer contribution made to this or any other Defined Contribution Plan on behalf of a
Participant on account of a Voluntary or Required After-tax Contribution made by such Participant,
or on account of a Participant’s Elective Deferral made by such Participant under a Plan maintained
by the Employer.

1.60 Maximum Permissible Amount

The maximum Annual Additions that may be contributed or allocated to a Participant’s account under
the Plan for any Limitation Year shall not exceed the lesser of:

	 	(a)	 	the Defined Contribution Dollar Limitation, or

25% of the Participant’s Compensation for the Limitation Year.

The Compensation limitation referred to in (b) shall not apply to any contribution for medical
benefits [within the meaning of Code Section 401(h) or Code Section 419A(f)(2)] which is otherwise
treated as an Annual Addition under Code Sections 415(l)(1) or 419(d)(2). If a short Limitation
Year is created because of an amendment changing the Limitation Year to a different twelve (12)
consecutive month period, the Maximum Permissible Amount will not exceed the Defined Contribution
Dollar Limitation multiplied by a fraction, the numerator of which is the number of months in the
short Limitation Year and the denominator of which is twelve (12).

1.61 Net Profit

The current and accumulated operating earnings of the Employer after Federal and state income
taxes, excluding nonrecurring or unusual items of income, and before contributions to this and any
other Qualified Plan of the Employer, unless the Employer has elected a different definition in the
Adoption Agreement.

1.62 Normal Retirement Age

The age set by the Employer in the Adoption Agreement, not to exceed age sixty-five (65), at which
a Participant becomes fully vested and is eligible to retire and receive his or her benefits under
the Plan.

1.63 Normal Retirement Date

The date on which the Participant attains the Normal Retirement Age as elected in the Adoption
Agreement. If no election is made on the Adoption Agreement, it shall mean the date on which a
Participant attains his or her Normal Retirement Age.

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1.64 Owner-Employee

A sole proprietor or a partner owning more than 10% of either the capital or profits interest of
the partnership.

1.65 Paired Plans

Two (2) or more plans which are either a combination of two (2) or more standardized Defined
Contribution Plans or a combination of one (1) or more standardized Defined Contribution Plan(s)
and one (1) Defined Benefit Plan offered by the same sponsor, which have been designed so that any
single Plan, or combination of Plans adopted by an Employer, where each Plan by itself or the Plans
together will meet the requirements of the antidiscrimination rules, the contribution and benefit
limitations, and the Top-Heavy provisions of Code Sections 401(a)(4), 415 and 416.

1.66 Participant

Any current Employee who met the applicable eligibility requirements and reached his or her Entry
Date and, where the context so requires, pursuant to the terms of the Plan, any living former
Employee on whose behalf an Account is maintained or former Employee who has met the eligibility
requirements.

1.67 Participant’s Benefit

With respect to required distributions pursuant to paragraph 7.4, the account balance as of the
last Valuation Date in the calendar year immediately preceding the Distribution Calendar Year
increased by the amount of any contributions or forfeitures allocated to the account balance as of
the dates in the calendar year after the Valuation Date and decreased by distributions made in the
calendar year after the Valuation Date. A special exception exists for the second Distribution
Calendar Year. For purposes of this paragraph, if any portion of the minimum distribution for the
First Distribution Calendar Year is made in the second Distribution Calendar Year on or before the
Required Beginning Date, the amount of the minimum distribution made in the second Distribution
Calendar Year shall be treated as if it had been made in the immediately preceding Distribution
Calendar Year.

1.68 Period Of Severance

For Plans using Elapsed Time for purposes of crediting Service:

a Break in Service shall mean a Period of Severance of at least twelve (12) months;

a Period of Severance is a continuous period of time during which the Employee is
not employed by the Employer;

a Period of Severance begins on the date the Employee retires, quits, or is
discharged, or if earlier, the twelve (12) month anniversary of the date on which
the Employee was otherwise first absent from Service.

1.69 Permissive Aggregation Group

The Required Aggregation Group of plans plus any other plan or plans of the Employer which, when
considered as a group with the Required Aggregation Group, would continue to satisfy the
requirements of Code Sections 401(a)(4) and 410.

1.70 Plan

The Defined Contribution Plan of the Employer in the form of this Prototype Defined Contribution
Plan and the applicable Adoption Agreement executed by the Employer as may be amended from time to
time (which includes any addendum thereto). The Plan shall have the name specified in the Adoption
Agreement.

1.71 Plan Administrator

1.71 For Employers who are members of the Savings Banks Employees Retirement Association (SBERA),
Tom Forese shall be the Plan Administrator. All other Employers shall select their own Plan
Administrator. If no Plan Administrator is selected, the Employer shall be the Plan Administrator.

1.72 Plan Sponsor

The Employer who adopts this Prototype Defined Contribution Plan and accompanying Adoption
Agreement.

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1.73 Plan Year

For Employers who are members of the Savings Bank Employees Retirement Associations (SBERA), the
twelve (12) consecutive month period beginning on November 1 of each year. Effective January 1,
2000, for employers who are members of SBERA, the twelve (12) consecutive month period beginning on
January 1 of each year shall become the Plan Year. For all other Employers, the twelve (12)
consecutive month period designated by the Employer in the Adoption Agreement.
        .

1.74 Present Value

The actuarial equivalent of a Participant’s accrued benefit under a Defined Benefit Plan maintained
by the Employer expressed in the form of a lump sum. Actuarial equivalence shall be based on
reasonable interest and mortality assumptions determined in accordance with the Top-Heavy
provisions of the respective plan. Present Value is used for the purposes of the Top-Heavy test
and the determination with respect thereto.

1.75 Prior Plan Year

The Plan Year immediately preceding the current Plan Year.

1.76 Prior Safe Harbor Plan

A Target Benefit Plan that:

	 	(a)	 	was adopted and in effect on September 19, 1991,
	 
	 	(b)	 	which on that date contained a Stated Benefit Formula applicable to Target
Benefit Plans that took into account Service prior to that date, and
	 
	 	(c)	 	satisfied the applicable nondiscrimination requirements for Target Benefit
Plans for those prior years. For purposes of determining whether a plan satisfies the
applicable nondiscrimination requirements for Target Benefit Plans for Plan Years
beginning before January 1, 1994, no amendments after September 19, 1991, other than
amendments necessary to satisfy Code Section 401(l), will be taken into account.

1.77 Projected Annual Benefit

For Limitation Years beginning before January 1, 2000, the annual retirement benefit (adjusted to
an actuarial equivalent straight life annuity if such benefit is expressed in a form other than a
straight life annuity or Qualified Joint and Survivor Annuity) to which the Participant would be
entitled under the terms of a Defined Benefit Plan or Plans, assuming:

	 	(a)	 	the Participant will continue employment until Normal Retirement Age under the
Plan (or current age, if later), and

the Participant’s Compensation for the current Limitation Year and all other
relevant factors used to determine benefits under the Plan will remain constant for
all future Limitation Years.

1.78 Projected Participation

For purposes of determining a Participant’s stated benefit, a Participant’s years of Projected
Participation under the Plan is the sum of (a) and (b), where

	 	(a)	 	is the number of years during which the Participant benefited under this Plan
beginning with the latest of:

	 	(1)	 	the first Plan Year in which the Participant benefited under the Plan,
	 
	 	(2)	 	the first Plan Year taken into account in the Stated Benefit Formula, and

- 18 -

 

	 	(3)	 	any Plan Year immediately following a Plan Year in which the
Plan did not satisfy the safe harbor for Target Benefit Plans in Regulations
Section 1.401(a)(4)-8(b)(3), and ending with the last day of the current Plan
Year, and

	 	(b)	 	is the number of years if any, subsequent to the current Plan Year through the
end of the Plan Year in which the Participant attains Normal Retirement Age.

For purposes of this definition of years of Projected Participation, if this Plan is a Prior Safe
Harbor Plan, the Plan is deemed to satisfy the safe harbor for Target Benefit Plans in Regulations
Section 1.401(a)(4)-8(b)(3) and a Participant is treated as benefiting under the Plan in any Plan
Year beginning prior to January 1, 1994.

1.79 Qualified Domestic Relations Order (QDRO Order)

A Qualified Domestic Relations Order (QDRO) is a signed domestic relations order issued by a state
court or agency which creates, recognizes or assigns to an alternate payee(s) the right to receive
all or part of a Participant’s Plan benefit and which meets the requirements of Code Section
414(p). An alternate payee is a Spouse, former Spouse, child, or other dependent who is treated as
a Beneficiary under the Plan as a result of the QDRO. Unless elected otherwise by the Employer in
the Adoption Agreement, the earliest date for payment of a QDRO to an alternate payee, is the date
upon which the order is deemed qualified.

1.80 Qualified Early Retirement Age

For purposes of paragraph 8.9, Qualified Early Retirement Age is the latest of:

	 	(a)	 	the earliest date under the Plan on which the Participant may elect to receive
retirement benefits, or
	 
	 	(b)	 	the first day of the 120th month beginning before the Participant reaches
Normal Retirement Age, or
	 
	 	(c)	 	the date the Participant begins participation.

1.81 Qualified Joint And Survivor Annuity (QJSA)

An immediate annuity for the life of the Participant with a survivor annuity for the life of the
Participant’s Spouse which is at least 50% of but not more than 100% of the annuity payable during
the joint lives of the Participant and the Participant’s Spouse. The exact amount of the survivor
annuity is to be specified by the Employer in the Adoption Agreement. If not designated by the
Employer, the survivor annuity will be 50% of the amount paid to the Participant during his or her
lifetime. The Qualified Joint and Survivor Annuity will be the amount of benefit which can be
provided by the Participant’s Vested Account Balance.

1.82 Qualified Matching Contributions (QMACs)

Matching contributions which when made are subject to the distribution and nonforfeitability
requirements under Code Section 401(k).

1.83 Qualified Non-Elective Contributions (QNECs)

Contributions (other than Matching Contributions or Qualified Matching Contributions) made by the
Employer and allocated to Participants’ accounts that the Participants may not elect to receive in
cash until distributed from the Plan, that are nonforfeitable when made, and that are distributable
only in accordance with the distribution provisions that are applicable to Elective Deferrals and
Qualified Matching Contributions.

1.84 Qualified Plan

Any pension, profit-sharing, stock bonus, or other plan which meets the requirements of Code
Section 401 and includes a trust exempt from tax under Code Section 501(a) or any annuity plan
described in Code Section 403(a).

1.85 Qualified Pre-Retirement Survivor Annuity

An annuity for the life of the Surviving Spouse of a Participant the actuarial equivalent of which
is not less than 50% of the vested Participant’s Account Balance as of the date of the
Participants’ death, as elected by Employer in the

- 19 -

 

Adoption Agreement. If no election is made on the Adoption Agreement the Qualified Pre-Retirement
Survivor Annuity shall be 50% of the Participant’s Vested Account Balance as of the date of the
death of the Participant, unless the Employer in a prior version of the Adoption Agreement or Plan,
had elected that the Qualified Pre-Retirement Survivor Annuity be 100% of the Account Balance.

1.86 Qualified Voluntary Contribution

A tax-deductible Voluntary Employee Contribution which was permitted to be made for the tax years
1982 through 1986. This type of contribution is no longer permitted to be made by a Participant.
This Plan shall accept such type of contribution if made in a prior plan and an appropriate
recordkeeping account will be established on behalf of the Participant.

1.87 Required Aggregation Group

A group of plans including:

	 	(a)	 	each Qualified Plan of the Employer in which at least one (1) Key Employee
participates or participated at any time during the determination period (regardless of
whether the plan has terminated), and
	 
	 	(b)	 	any other Qualified Plan of the Employer which enables a plan described in (a)
to meet the requirements of Code Sections 401(a)(4) or 410.

1.88 Required Beginning Date

The date on which a Participant is required to take his or her first minimum distribution under the
Plan as elected by the Employer in the Adoption Agreement. The rules regarding the determination
of the Required Beginning Date are set forth at paragraph 7.5 herein.

1.89 Required After-tax Contributions

Employee after-tax contributions required as a condition of participation in the Plan.

1.90 Rollover Contribution

A contribution made by a Participant of an amount distributed to such Participant from another
Qualified Plan in accordance with Code Section 402(c).

1.91 Salary Deferral Agreement

An agreement between the Employer and an Employee where the Employee authorizes the Employer to
withhold a specified percentage or dollar amount of his or her Compensation (otherwise payable in
cash) for deposit to the Plan on behalf of such Employee.

1.92 Savings Incentive Match Plan For Employees (SIMPLE)

A plan adopted by an Eligible Employer under Code Section 401(k)(11) under which Eligible Employees
are permitted to make Elective Deferrals to a Qualified Plan established under the SIMPLE 401(k)
Plan Adoption Agreement.

1.93 Self-Employed Individual

An individual who has Earned Income for the taxable year from the trade or business for which the
Plan is established including an individual who would have had Earned Income but for the fact that
the trade or business had no Net Profit for the taxable year.

1.94 Service

The period of current or prior employment with the Employer including any imputed period of
employment which must be counted under USERRA. If the Employer maintains a plan of a predecessor
employer, service for such predecessor shall be treated as Service for the Employer for the
purpose(s) specified in the Adoption Agreement. Service is determined under an hours counting
method or Elapsed Time method as selected by the Employer in the Adoption Agreement.

- 20 -

 

If the Employer has elected to use the Elapsed Time method to determine eligibility and/or vesting
Service, the aggregate of the following (applied without duplication and except for periods of
Service that may be disregarded under paragraph 9.6):

Each period from an Employee’s date of hire (or reemployment date) to his next
Severance Date; and

If an Employee performs an Hour of Service within twelve (12) months of a Severance
Date, the period from such Severance Date to such Hour of Service. Service shall be
credited for all periods whether the Employee is employed by an Employer or an
Affiliate.

Service shall be measured in whole years and fractions of a year in months. For this purpose, (a)
periods of less than a full year shall be aggregated on the basis that twelve (12) months or three
hundred and sixty five (365) days equals a year, and (b) in aggregating days into months, thirty
(30) days shall be rounded up to the nearest whole month. For purposes of determining Service,
“Date of Hire” means the date on which an Employee first completes an Hour of Service and
“Reemployment Date” means the date on which an Employee first completes an Hour of Service after a
Severance Date.

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

1.95 Severance Date

The date which is the earlier of:

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

the first anniversary of the first date of a period in which an Employee remains
continuously absent from Service with an Employer or affiliate (with or without pay)
for any reason other than quit, retirement, discharge or death.

1.96 Severance Period

Each period from an Employee’s Severance Date to his next Reemployment Date.

1.97 Service Provider

An individual or business entity who is retained by the Plan Administrator on behalf of the Plan to
provide specified administrative services to the Plan.

1.98 Shareholder Employee

An Employee or officer who owns [or is considered as owning within the meaning of Code Section
318(a)(1)], on any day during the taxable year of an electing small business corporation
(S Corporation), more than 5% of such corporation’s outstanding stock.

1.99 Simplified Employee Pension Plan

A plan under which the Employer makes contributions for eligible Employees pursuant to a written
formula. Contributions are made to an individual retirement account which meets the requirements
of Code Section 408(k).

1.100 Sponsor  

SBERA, or any successors (s) or assign(s).

1.101 Spouse

The individual to whom a Participant is married, or was married in the case of a deceased
Participant who was married at the time of his or her death. A former Spouse will be treated in
the same manner as a Spouse to the extent provided under a Qualified Domestic Relations Order as
described in Code Section 414(p).

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1.102
Stated Benefit Formula

The formula elected by the Employer in the Adoption Agreement expressed in the form of a straight
life annuity without a term certain, refund feature or survivor benefit.

1.103 Super Top-Heavy Plan

A Plan described at paragraph 1.106 under which the Top-Heavy Ratio exceeds 90%.

1.104 Taxable Wage Base

For plans with an allocation formula which takes into account the Employer’s contribution under the
Federal Insurance Contributions Act (FICA), the contribution and benefit base in effect under the
Social Security Act (Section 203) at the beginning of the Plan Year.

1.105 Top-Heavy Determination Date

For the first Plan Year of the Plan, the last day of the first Plan Year. For any Plan Year
subsequent to the first Plan Year, the last day of the preceding Plan Year.

1.106 Top-Heavy Plan

For any Plan Year, the Employer’s Plan is Top-Heavy if any of the following conditions exist:

	 	(a)	 	The Top-Heavy Ratio for the Employer’s Plan exceeds 60% and this Plan is not
part of any Required Aggregation Group or Permissive Aggregation Group of plans.
	 
	 	(b)	 	The Employer’s Plan is a part of a Required Aggregation Group of plans but not
part of a Permissive Aggregation Group and the Top-Heavy Ratio for the group of plans
exceeds 60%.
	 
	 	(c)	 	The Employer’s Plan is a part of a Required Aggregation Group and part of a
Permissive Aggregation Group of plans and the Top-Heavy Ratio for the Permissive
Aggregation Group exceeds 60%.

1.107 Top-Heavy Ratio  

	 	(a)	 	If the Employer maintains one or more Defined Contribution Plans (including any
Simplified Employee Pension Plan) and the Employer has not maintained any Defined
Benefit Plan which during the five (5) year period ending on the Determination Date(s)
has or has had accrued benefits, the Top-Heavy Ratio for this Plan alone, or for the
Required or Permissive Aggregation Group as appropriate, is a fraction,

	 	(1)	 	the numerator of which is the sum of the account balances of
all Key Employees as of the Determination Date(s) [including any part of any
account balance distributed in the five year period ending on the Determination
Date(s)], and
	 
	 	(2)	 	the denominator of which is the sum of all account balances
[including any part of any account balance distributed in the five (5) year
period ending on the Determination Date(s)], both computed in accordance with
Code Section 416 and the Regulations thereunder.

	 	 	 	Both the numerator and denominator of the Top-Heavy Ratio are increased to reflect
any contribution not actually made as of the Determination Date but which is
required to be taken into account on that date under Code Section 416 and the
Regulations thereunder.
	 
	 	(b)	 	If the Employer maintains one or more Defined Contribution Plans (including any
Simplified Employee Pension Plan) and the Employer maintains or has maintained one or
more Defined Benefit Plans which during the five (5) year period ending on the
Determination Date(s) has or has had any accrued benefits, the Top-Heavy Ratio for any
Required or Permissive Aggregation Group, as appropriate, is a fraction, the numerator
of which is the sum of account balances under the aggregated Defined Contribution Plan
or Plans for all Key Employees, determined in

- 22 -

 

	 	 	 	accordance with (a) above, and the Present Value of accrued benefits under the
aggregated Defined Benefit Plan or Plans for all Key Employees as of the
Determination Date(s), and the denominator of which is the sum of the account
balances under the aggregated Defined Contribution Plan or Plans for all
Participants, determined in accordance with (a) above, and the Present Value of
accrued benefits under the Defined Benefit Plan or Plans for all Participants as of
the Determination Date(s), all determined in accordance with Code Section 416 and
the Regulations thereunder. The accrued benefits under a Defined Benefit Plan in
both the numerator and denominator of the Top-Heavy Ratio are increased for any
distribution of an accrued benefit made in the five (5) year period ending on the
Determination Date.
	 
	 	(c)	 	For purposes of (a) and (b) above, the value of account balances and the
Present Value of accrued benefits will be determined as of the most recent Valuation
Date that falls within or ends with the twelve (12) month period ending on the
Determination Date, except as provided in Code Section 416 and the Regulations
thereunder for the first and second Plan Years of a Defined Benefit Plan. The account
balances and accrued benefits of a Participant who is not a Key Employee but who was a
Key Employee in a prior year, or who has not been credited with at least one (1) Hour
of Service with any Employer maintaining the Plan at any time during the five (5) year
period ending on the Determination Date, will be disregarded. The calculation of the
Top-Heavy Ratio, and the extent to which distributions, rollovers, and transfers are
taken into account will be made in accordance with Code Section 416 and the Regulations
thereunder. Qualified Voluntary Employee Contributions will not be taken into account
for purposes of computing the Top-Heavy Ratio. When aggregating plans, the value of
account balances and accrued benefits will be calculated with reference to the
Determination Dates that fall within the same calendar year. The accrued benefit of a
Participant other than a Key Employee shall be determined under the method, if any,
that uniformly applies for accrual purposes under all Defined Benefit Plans maintained
by the Employer, or if there is no such method, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the fractional rule of Code
Section 411(b)(1)(C).

1.108 Top-Paid Group

The group consisting of the top 20% of Employees when ranked on the basis of Compensation paid
during such year. For purposes of determining the number of Employees in the group (but not who is
in it), Employees identified in (a) through (d) may be excluded and Employees identified in (e)
through (f) shall be excluded:

	 	(a)	 	Employees who have not completed six (6) months of Service by the end of the
year;
	 
	 	(b)	 	Employees who normally work less than seventeen and one-half (171/2) hours per
week by the end of the year;
	 
	 	(c)	 	Employees who normally work not more than six (6) months during any year;
	 
	 	(d)	 	Employees who have not attained age twenty-one (21) by the end of the year;
	 
	 	(e)	 	Employees included in a collective bargaining unit, covered by an agreement
between Employee representatives and the Employer, where retirement benefits were the
subject of good faith bargaining, if they constitute at least 90% of the Employer’s
workforce and the Plan covers only non-union Employees; and
	 
	 	(f)	 	Employees who are nonresident aliens and who receive no Earned Income which
constitutes income from sources within the United States.

1.109 Transfer Contribution

A non-taxable transfer of a Participant’s benefit directly from a Qualified Plan to this Plan.
This type of transfer does not constitute constructive receipt of plan assets.

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1.110 Trust

The trust established in conjunction with the Plan, together with any and all amendments thereto
which holds assets of the Plan held by or in the name of the Trustee or Custodian.

1.111 Trustee

For employers who are members of SBERA, the Trustee shall be the Trustees of the Savings Banks
Employees Retirement Association. For all other Employers, the Trustee shall be the individual,
individuals or institution appointed by the Employer to serve as Trustee of the Plan. In the event
the Employer does not name an individual, individuals or institution to serve as Trustee of the
Plan, the Employer will be deemed to be the Trustee.

1.112 Uniformed Services Employment And Reemployment Rights Act Of 1994 (USERRA)

The Uniformed Services Employment and Reemployment Rights Act of 1994, as amended. Notwithstanding
any provision of the Plan to the contrary, contributions, benefits, Plan loan repayment,
suspensions and service credit with respect to qualified military service will be provided in
accordance with Code Section 414(u).

1.113 Valuation Date

The last day of the Plan Year and such other date(s) as specified in the Adoption Agreement on
which the fair market value of Plan assets is determined. The Trustee and/or Custodian must also
value the Trust on such other Valuation Dates as directed by the Plan Administrator.

1.114 Vested Account Balance

The aggregate value of the Participant’s Vested Account Balances derived from Employer and Employee
contributions (including Rollovers), whether vested before or upon death, including the proceeds of
insurance contracts, if any, on the Participant’s life. The provisions of Article VIII shall apply
to a Participant who is vested in amounts attributable to Employer contributions, Employee
contributions (or both) at the time of death or distribution.

1.115 Voluntary After-tax Contribution

Any contribution made to the Plan by or on behalf of a Participant that is included in the
Participant’s gross income in the year in which made and that is maintained under a separate
account to which earnings and losses are allocated.

1.116 Welfare Benefit Fund

Any fund that is part of a plan of the Employer, or has the effect of a plan, through which the
Employer provides welfare benefits to Employees or their beneficiaries. For these purposes,
Welfare Benefit means any benefit other than those with respect to which Code Section 83(h)
(relating to transfers of property in connection with the performance of services), Code Section
404 (relating to deductions for contributions to an Employees’ trust or annuity and Compensation
under a deferred payment plan), Code Section 404A (relating to certain foreign deferred
compensation plans) apply. A “Fund” for purposes of this paragraph, is any social club, voluntary
employee benefit association, supplemental unemployment benefit trust or qualified group legal
service organization described in Code Section 501(c)(7), (9), (17) or (20); any trust,
corporation, or other organization not exempt from income tax, or to the extent provided in
regulations, any account held for an Employer by any person.

1.117 Year Of Service

If elected in the Adoption Agreement, the hours counting method will be used in
determining either an Employee’s initial or continuing eligibility to participate in
the Plan, or the nonforfeitable interest in the Participant’s account balance
derived from Employer contributions. A Year of Service is a twelve (12) consecutive
month period in which an Employee has completed one-thousand (1,000) Hours of
Service (or such lower number as is specified in the Adoption Agreement).

	 	(1)	 	The eligibility computation period starts with the day the
Employee first performs an Hour of Service and is a twelve (12) consecutive
month period during which the Employee has completed the number of Hours of
Service [not to exceed one-thousand (1,000)] as elected in the Adoption
Agreement.

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	 	(2)	 	The vesting computation period is a twelve (12) consecutive
month period as elected by the Employer in the Adoption Agreement during which
the Employee completed the number of Hours of Service [not to exceed
one-thousand (1,000)] as elected in the Adoption Agreement. If no election is
made, the Plan Year shall be used provided that in the event the Plan Year is
changed, the “vesting computation period” shall be the twelve (12) consecutive
month period determined in accordance with Department of Labor Regulation
Section 2530.203-2(c), the provisions of which are incorporated herein by
reference.

If elected in the Adoption Agreement, the Elapsed Time method will be used in
determining either an Employee’s initial or continuing eligibility to participate in
the Plan, or the nonforfeitable interest in the Participant’s account balance
derived from Employer contributions. An Employee will receive credit for the
aggregate of all time period(s) commencing with the Employee’s first day of
employment or reemployment and ending on the date a Break in Service begins. The
first day of employment or reemployment is the first day the Employee performs an
Hour of Service for the Employer. An Employee will also receive credit for any
Period of Severance of less than twelve (12) consecutive months. Fractional periods
of a year will be expressed in terms of days. Years of Service will be determined
in accordance with paragraph 1.94.

	 	(1)	 	A Break in Service under the Elapsed Time method is a Period of
Severance of at least twelve (12) consecutive months. A Period of Severance
is a continuous period of time during which the Employee is not employed by the
Employer. The continuous period begins on the date the Employee retires,
quits, is discharged or if earlier, the first twelve (12) month anniversary of
the date on which the Employee is first absent from Service.

In the case of an individual who is absent from work for maternity or
paternity reasons, the twelve (12) consecutive month period beginning on the
first anniversary of the first date of such absence from work for maternity
or paternity reasons (a) by reason of the pregnancy of the individual, (b)
by reason of the birth of the child of the individual, (c) by reason of the
placement of a child with the individual in connection with the adoption of
such child by such individual, or (d) for purposes of caring for such child
for a period beginning immediately following such birth or placement.

Each Employee will share in Employer contributions for the period beginning on the
date the Employee commences participation under the Plan and ending on the date on
which such Employee terminates employment with the Employer or is no longer a member
of an eligible class of Employees.

	 	 	 	If two (2) Years of Service are required as a condition of eligibility, a
Participant will only have completed two (2) Years of Service for eligibility
purposes upon the actual completion of two (2) consecutive Years of Service.
	 
	 	 	 	The Employer may elect in the Adoption Agreement for purposes of determining a
Participant’s vested interest to disregard Years of Service prior to:

	 	(1)	 	the time the Employer or any affiliate maintained the Plan or any predecessor
plan; and
	 
	 	(2)	 	an Employee’s attainment of a certain age, not to exceed age eighteen (18).

	 	(f)	 	An Employee’s Years of Service under this Plan may be determined using the
hours counting method or the Elapsed Time method or both. Unless otherwise elected in
the Adoption Agreement, Years of Service shall be determined using the hours counting
method on the basis of actual hours worked.

- 25 -

 

	 	(g)	 	If the Plan determines Service for a given purpose on one basis and an Employee
transfers to Employment covered by this Plan from Employment covered by another
Qualified Plan which determines Service for such purpose on the other basis, and if the
Employee’s Service for the period during which he was covered by such other plan is
required to be taken into consideration under this Plan for that purpose, then the
following rules shall apply:

	 	(1)	 	If such Service was determined under the other plan using the
hours counting method, then the period so taken into consideration through the
close of the computation period in which such transfer occurs shall be:

	 	(i)	 	the number of Years of Service credited to the
Employee for such purpose under such other plan as of the start of such
computation period, and
	 
	 	 	 	for the computation period in which such transfer occurs, the greater
of:

	 	(A)	 	his Service for such period as of
the date of transfer determined under the rules of such other
plan, or
	 
	 	(B)	 	his Service for such period
determined under the Elapsed Time rules of this Plan.

	 	 	 	Service after the close of that computation period shall be determined for
such purpose solely under the Elapsed Time rules of this Plan.
	 
	 	(2)	 	If such Service was determined under the other plan using the
Elapsed Time method, then the period taken into consideration shall be (1) the
number of one-year periods of Service credited to the Employee under such other
plan as of the date of the transfer, and (2) for the computation period which
includes the date of transfer, the Hours of Service equivalent to any
fractional part of a Year of Service credited to him under such other plan. In
determining such equivalency, the Employee shall be credited with
one-hundred-ninety (190) Hours of Service for each month or fraction thereof.

If this Plan is an amendment and continuation of another Qualified Plan or if this Plan is amended
and an effect of the amendment is to change the basis on which Years of Service are determined, the
foregoing rules shall be applied as if each Employee had transferred employment on the effective
date of such amendment.

If no election is made on the Adoption Agreement, the Plan will define a Year of Service as a
twelve (12) consecutive month period in which an individual has completed one-thousand (1,000)
Hours of Service under the hours counting method.

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ARTICLE II

ELIGIBILITY REQUIREMENTS

2.1 Eligibility

Employees who meet the eligibility requirements in the Adoption Agreement on the Effective Date of
the Plan shall become Participants as of the Effective Date of the Plan. If elected in the Adoption
Agreement, all Employees employed on the Effective Date of the Plan may participate, even if they
have not satisfied the Plan’s specified eligibility requirements. Employees hired after the
Effective Date of the Plan, upon meeting the eligibility requirements, shall become Participants on
the applicable Entry Date. For amended and restated Plans, Employees who were Participants in the
Plan prior to the Effective Date will continue to participate in the Plan, regardless of whether
the Employee satisfies the eligibility requirements in the restated or amended Plan, unless
otherwise elected in the Adoption Agreement. If no age and Service requirement are elected in the
Adoption Agreement, an Employee will become a Participant on the date the individual first performs
an Hour of Service for the Employer. The Employee must satisfy the eligibility requirements
specified in the Adoption Agreement and be employed on the Entry Date to become a Participant in
the Plan.

	 	(a)	 	In the event that an Employee has satisfied the eligibility requirements, but
is not employed on the applicable Entry Date, such Employee will become a Participant
for the purpose(s) for which an Employee had previously qualified upon his or her
rehire.
	 
	 	(b)	 	Except as otherwise provided in the Adoption Agreement, all Years of Service
will be counted for purposes of determining whether an Employee has satisfied the
Plan’s Service eligibility requirement, if any. If a Participant has a Break in
Service or Period of Severance, Service before that Break in Service or Period of
Severance shall be reinstated as of the date the Employee is credited with an Hour of
Service after incurring such Break in Service or Period of Severance.
	 
	 	(c)	 	In the event an Employee who is not a member of an eligible class of Employees
becomes a member of an eligible class, such Employee shall participate immediately if
such Employee has satisfied the minimum age and Service requirements and would have
previously become a Participant had he or she been in an eligible class.
	 
	 	(d)	 	A former Participant shall be eligible to authorize Elective Deferrals and may
make other Employee Contributions as permitted under the Plan as of the date on which
the individual is rehired. Such contributions shall resume immediately (or as soon as
administratively feasible) on or after his or her date of rehire. A former Employee
who had become a Participant for the purpose of Employer contributions shall again
become a Participant with respect to Employer Contributions on the date on which the
individual is rehired.
	 
	 	(e)	 	An Employee who has become a Participant under the Plan will remain a
Participant for as long as an account is maintained under the Plan for his or her
benefit, or until his or her death, if earlier.
	 
	 	(f)	 	Each Employee will share in Employer contributions for the period beginning on
the date the Employee commences participation under the Plan and ending on the date on
which such Employee terminates employment with the Employer or is no longer a member of
an eligible class of Employees.

2.2 Determination Of Eligibility

The Plan Administrator shall determine the eligibility of each Employee for participation in the
Plan based upon information provided by the Employer. Such determination shall be conclusive and
binding on all individuals except as otherwise provided herein or by operation of law.

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2.3 Change In Classification Of Employment

In the event a Participant becomes ineligible to participate because he or she is no longer a
member of an eligible class of Employees (as elected by the Employer in the Adoption Agreement),
Elective Deferrals and/or other Employee contributions will cease as soon as administratively
practicable after the Participant becomes ineligible. Such Participant shall participate for the
purpose(s) for which the Participant had previously qualified immediately (or as soon as
administratively feasible) upon his or her return to an eligible class of Employees.

2.4 Participation

A Year of Service for participation in the Plan is an eligibility computation period during which
an Employee completes the Hours of Service requirement [one-thousand (1,000) hours or less] elected
by the Employer in the Adoption Agreement. If the Plan utilizes the Elapsed Time method of
crediting Service, an eligibility computation period for which the Employee receives credit for a
Year of Service will be determined under the Service crediting rules of paragraph 1.117.

The initial eligibility computation period shall be the twelve (12) consecutive month period
beginning on the Employee’s employment commencement date (the first day an Employee completes an
Hour of Service for the Employer). The Plan will measure succeeding eligibility computation
periods based on the Plan Year, unless otherwise elected in the Adoption Agreement. Where the
subsequent computation periods are calculated on the basis of the Plan Year, an Employee who
receives credit for the required number of Hours of Service during the initial computation period
and then earns an additional Year of Service credit during the Plan Year commencing during the
subsequent twelve (12) month period will be credited with two (2) Years of Service for purposes of
eligibility to participate.

An Employer may specify in the Adoption Agreement a Service requirement for eligibility for
participation in the Plan after completion of a specified number of months or Hours of Service.
Any Service requirement based on months of Service may not require an Employee to complete more
than one (1) Year of Service [one-thousand (1,000) Hours of Service] in a twelve (12) consecutive
month period, or if applicable, two (2) Years of Service.

2.5 Employment Rights

Participation in the Plan shall not confer upon a Participant any employment rights, nor shall it
interfere with the Employer’s right to terminate the employment of any Employee at any time.

2.6 Service With Controlled Groups

All Years of Service with other members of a controlled group of corporations [as defined in Code
Section 414(b)], trades or businesses under common control [as defined in Code Section 414(c)], or
members of an affiliated service group [as defined in Code Section 414(m)] and any other entity
required to be aggregated with the Employer pursuant to Code Section 414(o) shall be credited for
purposes of determining an Employee’s eligibility to participate.

2.7 Leased Employees

A Leased Employee shall be treated as an Employee of the recipient Employer. Notwithstanding the
foregoing, a Leased Employee shall not be considered an Employee of the recipient Employer for
purposes of participation in any Plan established under a Nonstandardized Adoption Agreement,
unless otherwise elected in the Adoption Agreement. Contributions or benefits provided by the
leasing organization which are attributable to services performed for the recipient Employer shall
be treated as provided by the recipient Employer.

A Leased Employee shall not be considered an Employee of the recipient if such Employee is covered
by a money purchase pension plan sponsored by the leasing organization providing:

	 	(a)	 	a non-integrated Employer contribution rate of at least 10% of Compensation [as
defined in Code Section 415(c)(3)], but including amounts contributed pursuant to a
salary reduction agreement which are excludable from the Employee’s gross income under
Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b),
	 
	 	(b)	 	immediate participation, and

- 28 -

 

	 	(c)	 	full and immediate vesting.

This exclusion is only available if Leased Employees do not constitute more than 20% of the
recipient’s Non-Highly Compensated work force. The Plan Administrator must apply this paragraph
2.7 consistent with Code Sections 414(n) and 414(o) and the Regulations issued thereunder. The
Employer must specify in an addendum to the Adoption Agreement the manner in which the Plan will
determine the allocation of Employer contributions and Participant forfeitures on behalf of a
Participant if the Participant is a Leased Employee covered by a plan maintained by the leasing
organization.

2.8 Thrift Plan

The Employer may make an election in the Adoption Agreement to require Employee after-tax
contributions (Required After-tax Contributions) as a condition of participation in the Plan. The
Employer shall notify each eligible Employee of his or her eligibility for participation prior to
the appropriate Entry Date. The Employee shall indicate his or her intention to join the Plan by
authorizing the Employer to withhold a percentage of his or her Compensation as provided in the
Plan. Such authorization shall be returned to the Employer within the time prescribed. The
Employee may decline participation by so indicating in accordance with the procedures prescribed by
the Employer. If the Employee declines to participate, such Employee shall be given the
opportunity to join the Plan on any subsequent Entry Date.

2.9 Target Benefit Plan

A Target Benefit Plan may be established by executing a Target Benefit Plan Adoption Agreement.
The Employer shall notify each eligible Employee of his or her eligibility for participation prior
to the appropriate Entry Date. The Employer will make contributions for each Participant in level
annual contributions which will fund the Participant’s target benefit at the Plan’s Normal
Retirement Age.

2.10 Davis-Bacon Plan

A Davis-Bacon Plan may be established by executing a Davis-Bacon Plan Adoption Agreement. The
Employer shall notify each Employee covered by any Davis Bacon or prevailing wage contract of his
or her eligibility for participation prior to the appropriate Entry Date. The Employer will make
contributions for each Participant in accordance with the formula or any public contract subject to
the Davis-Bacon Act or to any other Federal, state or municipal prevailing wage law as specified in
the Adoption Agreement or the schedule attached thereto.

For the purposes of this paragraph, Employees covered by a Davis Bacon or prevailing wage contract
will be those who are included in a unit of Employees covered by a collective bargaining agreement
between the Employer and Employee representatives, if retirement benefits were the subject of good
faith bargaining and if two percent or less of the Employees who are covered pursuant to that
agreement are professionals as defined in Section 1.410(b)-9 of the Regulations. For this purpose,
the term “Employee representatives” does not include any organization more than half of whose
members are Employees who are owners, officers, or executives of the Employer.

2.11 Waiver Of Participation

A Plan established under a standardized Adoption Agreement may not permit an otherwise eligible
Employee or Participant to elect not to participate in the Plan. A Plan established under a
Nonstandardized Adoption Agreement may treat Employees who waive participation in the Plan as a
nondiscriminatory class of Employees who are ineligible to participate therein by making the proper
designation in the Adoption Agreement. Waivers of Plan participation must not constitute cash or
deferred arrangements [within the meaning of Code Section 401(k)] or they shall be ineffective. A
waiver shall not be considered a cash or deferred arrangement if it is irrevocable, applies to all
Plans maintained by the Employer, and is made prior to the date on which the Employee is first
eligible to participate in the Plan of the Employer. The Plan Administrator shall establish
uniform and nondiscriminatory procedures as it deems necessary to carry out this provision
including, but not limited to, rules prescribing the timing and filing of elections not to
participate. The Plan Administrator shall determine the propriety of any such waiver.

An Employee or Participant continues to earn credit for each Year of Service for eligibility or
vesting purposes he or she completes and his or her account (if any) will share in the gains or
losses of the Plan during the periods he or she elects not to participate.

- 29 -

 

2.12 Omission Of Eligible Employee

If, in any Plan Year, an Employee who should be included as a Participant in the Plan is
erroneously omitted and discovery of such omission is not made until after a contribution by his or
her Employer for the Plan Year has been made, the Employer shall make any such correction regarding
the Employee’s eligibility under one of IRS approved correction programs.

2.13 Inclusion Of Ineligible Employee

If, in any Plan Year, any person who should not have been included as a Participant in the Plan is
erroneously included and discovery of such incorrect inclusion is not made until after a
contribution for the Plan Year has been made, the Employer shall not be entitled to recover the
contribution made with respect to the ineligible individual regardless of the deductibility of the
contribution in question. The contribution and any earnings made with respect to the ineligible
person shall be forfeited in the Plan Year in which the discovery is made. If any person made
Elective Deferrals erroneously, the Elective Deferrals and the associated earnings shall be
distributed to that individual in the Plan Year in which the discovery was made. Alternatively,
the Employer may determine if an alternative correction method may be available and use said method
to make the correction.

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ARTICLE III

EMPLOYER CONTRIBUTIONS

3.1 Contribution Amount

	 	(a)	 	The Employer will make periodic contributions to the Plan in accordance with
the contribution formula or formulas elected in the Adoption Agreement.
	 
	 	(b)	 	The Employer shall also make Matching, Top-Heavy minimum contributions and any
other Employer contribution for the benefit of Participants who are covered by USERRA.
Employer Matching Contributions under USERRA shall be made in the Plan Year for which
the Participant exercises his or her right to make-up Elective Deferrals and/or other
Employee contributions for prior years. Top-Heavy minimum contributions and other
Employer contributions for USERRA protected Service shall be made during the Plan Year
in which the individual returns to employment with the Employer.
	 
	 	 	 	Employer contributions required under USERRA are not increased or decreased with
respect to Plan investment earnings for the period to which such contributions
relate. The Employer’s contribution for any Plan Year shall be subject to the
limitations on allocations contained in Article X.

3.2 Contribution Amount For A SIMPLE 401(k) Plan

If the Employer has executed the SIMPLE 401(k) Adoption Agreement the provisions of the following
paragraphs shall apply for a Plan Year if the Employer is an Eligible Employer and no contributions
are made or benefits accrued for services during the Plan Year on behalf of any Eligible Employee
under any other plan, contract, pension or trust described in Code Section 219(g)(5)(A) or (B)
maintained by the Employer.

	 	(a)	 	SIMPLE 401(k) Matching Contribution Formula - For each Plan Year, the Employer
shall contribute and allocate to each Eligible Employee’s account an amount equal to
the Employee’s Elective Deferral contribution up to a limit of 3% of the Employee’s
Compensation for the full Plan Year. If the Employer elects in the Adoption Agreement
to make the Non-Elective Contribution as specified in paragraph 3.2(b) below, this
Matching Contribution will not be made.
	 
	 	(b)	 	SIMPLE 401(k) Non-Elective Contribution Formula - For any Plan Year, the
Employer may elect to contribute a Non-Elective Contribution of 2% of Compensation for
the full Plan Year for each Eligible Employee who received at least $5,000 of
Compensation (or such lesser amount as elected by the Employer in the SIMPLE 401(k)
Plan Adoption Agreement) for the Plan Year. The allocation thereof shall be unrelated
to any Participant Elective Deferral contributions made hereunder. If the Employer
elects in the Adoption Agreement to make the Non-Elective Contribution for a Plan Year,
the Employer shall not make the Matching Contribution described in paragraph 3.2(a)
above with respect to the same Plan Year. The Employer shall notify Eligible Employees
within a reasonable period of time (before the sixtieth day) prior to the beginning of
each Plan Year of its election to make the 2% Non-Elective Contribution in lieu of the
Matching Contribution.
	 
	 	(c)	 	The provisions of the Plan implementing the limitations of Code Section 415
apply to contributions made pursuant to paragraphs 3.2(a) and (b).
	 
	 	(d)	 	In the event that the contribution and allocation formula above results in an
Excess Annual Addition, such excess shall be corrected as provided for at paragraph
10.2 of the Basic Plan Document #01. The Employer’s contribution for any Plan Year
shall be subject to the overall limitations on allocations contained in Article X.

- 31 -

 

	 	(e)	 	No other Employer or Employee contributions may be made to the SIMPLE 401(k)
Plan for the Plan Year other than Elective Deferrals described in paragraph 4.8,
Matching or Non-Elective Contributions described in paragraphs 3.2(a) and (b), and
Rollover Contributions described in Regulations Section 1.402(c)-2, Q&A1 (a).
	 
	 	(f)	 	In the event the deduction of a contribution made by the Employer is disallowed
under Code Section 404, such contribution (to the extent disallowed) must be returned
to the Employer within one year of the disallowance of the deduction.
	 
	 	(g)	 	All benefits attributable to contributions described in paragraphs 3.2(a) and
(b) are nonforfeitable at all times, and all previous contributions made under the Plan
provisions are nonforfeitable as of the beginning of the Plan Year the SIMPLE 401(k)
provisions apply.

3.3 Responsibility For Contributions

The Trustee, the Sponsor or the Custodian shall not be required to determine if the Employer has
made a contribution or if the amount contributed from its general assets is in accordance with the
Code and the provisions elected in the Adoption Agreement. The Employer shall have sole
responsibility in this regard. The Trustee shall be accountable solely for contributions actually
received within the limits of Article X.

3.4 Return Of Contributions

Contributions made to the Plan by the Employer shall be irrevocable except as provided below:

	 	(a)	 	Any contribution forwarded to the Trustee or Custodian due to a mistake of
fact, provided that the contribution is returned to the Employer within one year of the
date of the contribution. The Trustee will not increase the amount of the Employer
contribution returnable under this paragraph 3.3 for any earnings attributable to the
contribution but the Trustee will reduce the amount returned to the Employer for any
losses incurred attributable to the excess contribution.
	 
	 	(b)	 	In the event that the Commissioner of Internal Revenue determines that the Plan
is not initially qualified under the Internal Revenue Code, any contribution dependent
on the initial qualification by the Employer must be returned to the Employer within
one year after the date the initial qualification is denied, but only if the
application for the qualification is made by the time prescribed by law for filing the
Employer’s return for the taxable year in which the Plan is adopted, or such later date
as the Secretary of the Treasury may prescribe.
	 
	 	(c)	 	Contributions forwarded to the Trustee or Custodian are presumed to be
deductible and are conditioned on their deductibility. Contributions which are
determined by the Internal Revenue Service to not be deductible will be returned to the
Employer.

3.5 Merger Of Assets From Another Plan  

The Employer may in its sole discretion direct the Trustee or Custodian to accept
assets from another Defined Contribution Plan, or to transfer assets to another
Defined Contribution Plan, provided that such transfer satisfies the requirements of
Code Section 414(l) and the Regulations thereunder. The Employer, Plan
Administrator, Trustee or Custodian shall have the right to refuse to accept or
transfer assets for any reason, provided that nothing in this paragraph 3.5 shall
give the Trustee or Custodian the right to refuse to make a direct transfer of an
Eligible Rollover Distribution if requested to do so by a Participant in accordance
with paragraph 6.10.

When the transferor plan is a money purchase pension plan and the transferee plan
(the Plan established under this document), is not a money purchase pension plan as
set forth in Code Section 401(a)(11)(B)(iii)(III), the Qualified Joint and Survivor
Annuity option may not be eliminated at least with respect to the benefits which are
transferred.

- 32 -

 

	 	 	 	When the transferor plan is a profit-sharing, stock bonus or cash or deferred
arrangement [401(k) plan] which included the Qualified Joint and Survivor Annuity
provisions but was not required to do so, upon the transfer of those assets, the
transferee plan may be amended to entirely eliminate the annuity option.

3.6 Coverage Requirements

For purposes of coverage testing, a Participant is treated as benefiting under the Plan for any
Plan Year during which the Participant received or is deemed to receive an allocation in accordance
with Code Section 1.410(b)-3(a). If the number of Participants who are eligible to share in any
contribution for a Plan Year is such that the Plan established under a Nonstandardized Adoption
Agreement would fail to meet the requirements of Code Section 410(b)(1) or 410(b)(2)(A)(i), then
the group of Participants eligible to share in the contribution for the Plan Year will be increased
to include such minimum number of Participants who are not employed by the Employer on the last day
of the Plan Year and who did not meet the hours requirement, as may be necessary to satisfy the
applicable tests under the Code Sections referenced above. The Participants who will become
eligible to share in the contribution will be those Participants when compared to Participants who
are similarly situated, are those who completed the greatest number of Hours of Service in the Plan
Year before the termination of their Service. If after such allocation, the coverage requirements
of the Code are still not satisfied, allocation shall continue to be made to Participants with
decreasing Hours of Service until the coverage requirements of the ratio percentage test of Code
Section 410(b)(1)(A) are satisfied.

If after the application of the correction procedure in the preceding paragraph the coverage
requirements are still not satisfied, the Employer may apply the same correction procedure to an
otherwise excludable class of Employees until the coverage requirements of the ratio percentage
test of Code Section 410(b)(1)(A) are satisfied.

The preceding paragraph will not be construed to permit the reduction of any Participant’s account
balance, and any amounts which were allocated to Participants whose eligibility to share in the
contribution did not result from the application of the preceding paragraph will not be reallocated
to satisfy such requirements. Instead, the Employer will make an additional contribution equal to
the amount which the affected Participants would have received had they been included initially in
the allocation of the Employer’s contribution, even if it would cause the contributions of the
Employer for the applicable Plan Year to exceed the amount which is deductible by the Employer for
such Plan Year under Code Section 404. Any adjustments pursuant to this paragraph will be
considered a retroactive amendment of the Plan which was adopted by the last day of the Plan Year.

Specifically excluded from the Code Section 410(b) coverage tests are those Employees who are
excluded from participation in the Plan for the entire Plan Year which includes those Employees
whose retirement benefits are subject to a collective bargaining agreement, nonresident aliens,
those Employees excluded from Plan participation by age and Service requirements imposed by the
Plan and those Employees who incur a Separation from Service during the applicable Plan Year and
for the Plan Year fail to complete more than five hundred (500) Hours of Service or three (3)
consecutive calendar months under the Elapsed Time method.

3.7 Eligibility For Contribution

The Employer will determine on the Adoption Agreement the conditions which Participants must meet
in order to receive an allocation of an Employer contribution and any forfeitures, subject to the
following:

	 	(a)	 	In a Plan established under a standardized Adoption Agreement, a Participant
who is employed on the last day of the Plan Year will share in the allocation of the
Employer contribution and that Plan Year without regard to the Participant’s Hours of
Service.
	 
	 	 	 	In a Plan established under a standardized Adoption Agreement, a Participant who
completed more than five hundred (500) Hours of Service or three (3) consecutive
calendar months under the Elapsed Time method will share in the allocation of
Employer contributions for the Plan Year, regardless of whether employed on the last
day of the Plan Year.
	 
	 	(b)	 	In a Plan established under a Nonstandardized Adoption Agreement, the Employer
will elect in the Adoption Agreement whether any Employer contribution will be
allocated to any Participant who

- 33 -

 

	 	 	 	does not complete the necessary Hours of Service or consecutive calendar months
requirement elected in the Adoption Agreement, subject to the Top Heavy minimum
contribution requirements, if applicable.
	 
	 	 	 	In a Plan established under a Nonstandardized Adoption Agreement, the Employer will
elect in the Adoption Agreement whether a Participant will receive an allocation of
the Employer’s contribution if not employed on the last day of the Plan Year.
	 
	 	(c)	 	The Employer may elect in the standardized or Nonstandardized Adoption
Agreement any other conditions a Participant must meet to receive an allocation under
the Plan.

3.8 Target Benefit Plan Contribution

The Employer’s annual contribution to a Target Benefit Plan shall be determined by a Stated Benefit
Formula and corresponding factor tables contained in the Adoption Agreement and shall be allocated
to Participants as provided in paragraph 5.3. This notwithstanding, the Employer’s contribution
for any Plan Year shall be subject to the limitations on allocations contained in Article X and
shall not be less than the minimum contribution required at Article XIV for Top-Heavy Plans. The
annual Employer contribution necessary to fund the stated benefit with respect to a Participant
will be determined each year as follows:

Step 1: Present Value of Benefit — If the Participant has not yet reached Normal
Retirement Age, calculate the present value of the stated benefit by multiplying the
stated benefit by the factor that is the product of (i) the applicable factor in
Table I [if attained age is less than sixty-five (65)] or Table IA [if attained age
is greater than or equal to sixty-five (65)], multiplied by (ii) the applicable
factor in Table III. If the Participant is at or beyond Normal Retirement Age,
calculate the present value of the stated benefit by multiplying the stated benefit
by the factor in Table IV corresponding to that Normal Retirement Age.

Step 2: Theoretical Reserve — The Theoretical Reserve is determined according to (1)
and (2) below:

	 	(1)	 	Initial Theoretical Reserve. A Participant’s Theoretical
Reserve as of the last day of the Participant’s first year of Projected
Participation (year 1) is zero. However, if this Plan is a Prior Safe Harbor
Plan with a Stated Benefit Formula that takes into account Plan Years prior to
the first Plan Year and this Plan satisfies the safe harbor in Regulations
Section 1.401(a)(4)-8(b)(3)(C), the Initial Theoretical Reserve is determined
as follows:

	 	(i)	 	Calculate as of the last day of the Plan Year
immediately preceding year 1, the present value of the stated benefit
using the actuarial assumptions, the provisions of the Plan, and the
Participant’s Compensation as of such date. For a Participant who is
beyond Normal Retirement Age during year 1, the stated benefit will be
determined using the actuarial assumptions, the provisions of the Plan,
and the Participant’s Compensation as of such date, except that the
straight life annuity factor used in that determination will be the
factor applicable for the Participant’s Normal Retirement Age.
	 
	 	(ii)	 	Calculate as of the last day of the Plan Year
immediately preceding year 1 the present value of future Employer
contributions, i.e., the contributions due each Plan Year using the
actuarial assumptions, the provisions of the Plan, (disregarding those
provisions of the Plan providing for the limitations of Code Section
415 or the minimum contributions under Code Section 416), and the
Participant’s Compensation as of such date, beginning with year 1
through the end of the Plan Year in which the Participant attains
Normal Retirement Age.
	 
	 	(iii)	 	Subtract the amount determined in (ii) from
the amount determined in (i).

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	 	(2)	 	Accumulate the Initial Theoretical Reserve determined in (1)
and the Employer contribution (as limited by Code Section 415, without regard
to any required minimum contributions under Code Section 416) for each Plan
Year beginning in year 1 up through the last day of the current Plan Year
(excluding contributions, if any, for the current Plan Year) using the Plan’s
interest assumption in effect for each such year. In any Plan Year following
the Plan Year in which the Participant attains Normal Retirement Age, the
accumulation is calculated assuming an interest rate of 0%.

	 	 	 	For purposes of determining the level of annual Employer contribution necessary to
fund the stated benefit, the calculations in (1) and (2) above will be made as of
the last day of each Plan Year, on the basis of the Participant’s age on the
Participant’s last birthday, using the interest rate in effect on the last day of
the prior year.
	 
	 	(c)	 	Step 3: Unfunded Amount — The excess, if any, of the
amount determined in Step 1 over the amount determined in Step 2.
	 
	 	(d)	 	Step 4: Contribution — Amortize the result in Step 3
by multiplying it by the applicable factor from Table II. For the
Plan Year in which the Participant attains Normal Retirement Age and
for any subsequent Plan Year, the applicable factor is 1.0.

3.9 Davis-Bacon Plan Contribution

The Employer will irrevocably contribute the amount determined in accordance with the contribution
formula or formulas elected on the Davis-Bacon Adoption Agreement. An Employer may take credit for
purposes of the Davis-Bacon Act or other prevailing wage law at the hourly rate specified in an
addendum attached to the Davis-Bacon Adoption Agreement. Contributions made by the Employer to
this Davis-Bacon plan for the Davis-Bacon work performed by the Employer’s covered Employees during
the Plan Year may be used as an offset for any Employer contributions to be made to another Defined
Contribution Plan sponsored by the Employer. The Employer may make Qualified Non-Elective
Contributions to the Plan, designated as “Davis-Bacon or Prevailing Wage Contributions”, in order
to satisfy the Employer’s obligations under the Davis-Bacon Act, or any other Federal, state or
municipal Davis-Bacon or prevailing wage law. Contributions made on behalf of Participants who do
not perform prevailing wage work cannot be used as a credit towards meeting the Employer’s
obligation under the prevailing wage plan.

3.10 Uniform Dollar Contribution

The Employer’s contribution to a plan utilizing a uniform dollar allocation formula for a Plan Year
shall be the same dollar amount to each Participant regardless of Compensation, Years of Service,
age or any other variable set forth in the Adoption Agreement.

3.11 Uniform Points Contribution

The Employer’s contribution to a Plan utilizing a uniform points allocation formula for a Plan Year
shall be in the same ratio that each Participant’s points, as elected in the Adoption Agreement,
bears to the total points awarded to all Participants for the Plan Year.

3.12 403(b) Matching Contribution
If a tax-exempt Employer elects in the 401(k) Adoption Agreement to make a Matching Contribution
based on the Employee’s Elective Deferral contributions under the Code Section 403(b) Plan, the
Employer shall make a Matching Contribution to the Matching Contribution Account of those
Participants who make Elective Deferrals (while an Employee and a Participant in the Plan) and who
are eligible under the Adoption Agreement to receive the Matching Contribution. Any such Matching
Contribution made to the Plan will be allocated under the formula elected in the Adoption
Agreement. In the event the rate of Matching Contribution is determined to be discriminatory in
favor of one or more Highly Compensated Employees, that part of the Matching Contribution as is
necessary to make such rate nondiscriminatory shall be forfeited. Any such amounted forfeited
shall be disregarded under the Plan’s provisions relating to Code Sections 401(k)(3) and 401(m)(2).

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ARTICLE IV

EMPLOYEE CONTRIBUTIONS

4.1 Voluntary After-tax Contributions

If elected by an Employer in the Adoption Agreement, a Participant may make Voluntary After-tax
Contributions to the Plan. These contributions are not excludable from the Participant’s gross
income. Such contributions must be made in a uniform and nondiscriminatory manner. Such
contributions are subject to the limitations on Annual Additions and are subject to
antidiscrimination testing. Any Voluntary After-tax Contribution will not be a condition precedent
to the contribution or allocation of any Employer contribution to the Participant. Under any Plan
which can be established hereunder and if permitted in the Plan’s loan policy document, a
Participant may repay a defaulted loan with after-tax dollars. The Employer may permit buy-back of
amounts previously forfeited with after-tax dollars even if Voluntary After-tax Contributions are
not permitted in the Plan. Any buy-back of amounts previously forfeited must be subject to uniform
and nondiscriminatory rules which do not operate in favor of Highly Compensated Employees.
Repayment of loans made to a Participant and buy-backs of cash-outs as described in Code Section
411(a)(7)(B) will not be considered Annual Additions as described in Regulations Section
1.415-6(b)(6). These amounts are not subject to the limitation contained in Code Section 401(m) in
the year in which made, as they are not considered Annual Additions pursuant to Code Section 415.

4.2 Required After-tax Contributions

If elected by the Employer in the Adoption Agreement, each Eligible Participant shall be required
to make Required After-tax Contributions to the Plan as a condition of participation in the Plan.
Such contributions shall be withheld from the Employee’s Compensation and shall be transmitted by
the Employer to the Trustee/Custodian. A Participant may discontinue participation or change his
or her contribution percentage in accordance with either an election on the Adoption Agreement or
uniform and nondiscriminatory rules established by the Employer. If a Participant discontinues his
or her contributions, such Participant may not again authorize such contributions until a change is
permitted in accordance with uniform and nondiscriminatory rules established by the Employer. The
Employer may reduce a Participant’s contribution percentage if required to satisfy the ACP Test
described in Article XI.

4.3 Qualified Voluntary Contributions

A Participant may no longer make Qualified Voluntary Contributions to the Plan. Amounts already
contributed may remain in the Plan until distributed to the Participant. Such amounts will be
maintained in a separate account which will be nonforfeitable at all times. The account will share
in the gains and losses of the Trust in the same manner as described at paragraph 5.5 of the Plan.
No part of the Qualified Voluntary Contribution Plan account will be used to purchase life
insurance. Subject to Article VIII, Joint and Survivor Annuity Requirements (if applicable), the
Participant may withdraw any part of the Qualified Voluntary Contribution account by making written
application to the Plan Administrator.

4.4 Rollover Contributions

Unless elected otherwise in the Adoption Agreement, a Participant/Employee may make a Rollover
Contribution to a Defined Contribution Plan established hereunder of all or any part of an amount
distributed or distributable to him or her from a Qualified Plan or an individual retirement
account (IRA) qualified under Code Section 408 where the IRA was used as a conduit from a Qualified
Plan provided:

	 	(a)	 	the amount distributed to the Participant/Employee is deposited to the Plan no
later than the sixtieth day after such distribution was received by the
Participant/Employee,
	 
	 	(b)	 	the amount distributed is not one of a series of substantially equal periodic
payments made for the life (or life expectancy) of the Participant/Employee or the
joint lives (or joint life expectancies) of the Participant/Employee and the
Participant’s/Employee’s Beneficiary, or for a specified period of ten (10) years or
more,
	 
	 	(c)	 	the amount distributed is not a required minimum distribution under Code
Section 401(a)(9),

- 36 -

 

	 	(d)	 	if the amount distributed included property, such property is rolled over only
upon the Trustee, Custodian and/or Employer’s approval, or if sold, the proceeds of
such property may be rolled over,

the amount distributed would otherwise be includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to
Employer securities), and

	 	(f)	 	the amount rolled over does not include any amounts contributed on an after-tax
basis by the Participant to the Qualified Plan.

The Plan Administrator shall be held solely responsible for determining the tax free status of any
Rollover Contribution made to this Plan, and the Trustee/Custodian shall have no responsibility for
any such determination.

4.5 Plan To Plan Transfer Contributions

	 	(a)	 	If elected by the Employer in the Adoption Agreement, a Participant or an
Employee may arrange for the direct transfer of his or her entire benefit from another
Qualified Plan to the Plan established hereunder. Such transfer shall be made for any
reason and may be in cash and/or in-kind. The Employer and/or the Trustee/Custodian in
their sole discretion shall have the right to refuse to accept a transfer for any
reason including but not limited to if such assets do not comply operationally, would
result in a prohibited transaction, are not readily marketable or are not compatible
with the Employer’s investment policy objectives. If necessary, for accounting and
recordkeeping purposes, Transfer Contributions shall be treated in the same manner as
Rollover Contributions.
	 
	 	(b)	 	The Employer may arrange for the direct transfer of a Participant’s/Employee’s
benefit from a Qualified Plan to this Plan. If necessary, for accounting and
recordkeeping purposes, Transfer Contributions shall be treated in the same manner as
Rollover Contributions.
	 
	 	(c)	 	In the event the Employer accepts a Transfer Contribution from a Plan in which
the Participant/Employee was directing the investment of his or her account, the
Employer may, if the Employer determines that it is appropriate and not in violation of
the nondiscrimination rules under Regulation Section 1.401(a)(4)-4, permit the Employee
to continue to direct his or her investments in accordance with paragraph 12.7 with
respect only to such Transfer Contribution.
	 
	 	(d)	 	Notwithstanding any provision of this Plan to the contrary, to the extent that
any optional form of benefit under the Plan established hereunder permits a
distribution prior to the Employee’s Normal Retirement Age, death, Disability, or
severance from employment, and prior to Plan termination, the optional form of benefit
is not available with respect to benefits attributable to assets (including the
post-transfer earnings thereon) and liabilities that are transferred, within the
meaning of Code Section 414(1), to this Plan from a money purchase pension plan
qualified under Code Section 401(a) (other than any portion of those assets and
liabilities attributable to Voluntary After-tax Contributions).

4.6 Voluntary Direct Transfers Between Plans

A Participant or Employee shall be able to transfer his or her entire benefit between qualified
Defined Contribution Plans [other than a direct transfer described in Code Section 401(a)(31)]
without regard to whether the Participant’s benefit is immediately distributable or results in the
elimination or reduction of Code Section 411(d)(6) protected benefits. Such a transfer does not
violate Code Section 411(d)(6) if the following requirements are met:

	 	(a)	 	The plan from which the benefits are transferred must provide that the transfer
is conditioned upon a voluntary, fully informed election by the Participant to transfer
his or her entire benefit to another qualified Defined Contribution Plan. As an
alternative to the transfer, the Participant must be offered the opportunity to retain
the Participant’s Code Section 411(d)(6) protected benefits

- 37 -

 

	 	 	 	under the Plan [or if the Plan is terminating, to receive any optional form of
benefit for which the Participant is eligible under the Plan as required by Code
Section 411(d)(6)].
	 
	 	(b)	 	The transferring plan must be the same plan type as the Plan sponsored by the
Employer. When benefits are being transferred from a qualified cash or deferred
arrangement under Code Section 401(k), the benefits must be transferred to a qualified
cash or deferred arrangement under Code Section 401(k). Money purchase pension plans
must be transferred to money purchase pension plans. Benefits transferred from a
profit-sharing plan other than a 401(k) plan or employee stock ownership plan may be
transferred to any type of Defined Contribution Plan, even if the event is not one that
allows a distribution.
	 
	 	(c)	 	The transfer must be made in connection with certain corporate transactions
such as an asset or stock acquisition, merger or other similar transaction involving a
change in Employer of the Employees of a trade or business [i.e., an acquisition or
disposition within the meaning of Regulation Section 1.410(b)-2(f)] or in connection
with the Participant’s transfer of employment to a different job for which Service does
not result in additional allocations under the transferor plan.
	 
	 	(d)	 	This type of elective transfer is only available for transfers made on or after
September 6, 2000, even if the transaction or change of employment occurred prior to
that date.
	 
	 	(e)	 	If the conditions outlined in (a), (b), (c) and (d) above are met, the
Employer’s Plan is not required to protect optional forms of benefits available under
the prior plan with respect to any benefit transferred [except as required by the
Qualified Joint and Survivor Annuity requirements under Code Sections 401(a)(11) and
417]. Such a transfer is not a protected optional form of benefit, but rather is a
“right or feature” under Regulation Section 1.401(a)(4)-4(e).

4.7 Elective Deferrals In A 401(k) Plan

	 	 	 	A Participant may enter into a Salary Deferral Agreement with the Employer
authorizing the Employer to withhold a portion of such Participant’s Compensation
not to exceed the dollar limit under Code Section 402(g), as adjusted under Code
Section 415(d), for the Applicable Calendar Year, or the percentage or dollar amount
of Compensation specified in the Adoption Agreement.
	 
	 	 	 	Any Salary Deferral Agreement may not be effective earlier than the latest date of
the following:

	 	(1)	 	The date of the Participant’s entry (or reentry) into the Plan;
	 
	 	(2)	 	the execution of the Participant’s Salary Deferral Agreement;
	 
	 	(3)	 	the date the Employer adopts the 401(k) Plan by executing the
Adoption Agreement;
	 
	 	(4)	 	the Effective Date of the Elective Deferral provisions as
specified in the Adoption Agreement.

	 	 	 	Any such contribution shall be credited to the Employee’s Elective Deferral account.
A Participant may terminate deferrals at any time. A Participant may amend his or
her Salary Deferral Agreement to increase or decrease his or her deferral percentage
upon notice in accordance with the provisions in the Adoption Agreement or such
other uniform and nondiscriminatory procedures. The Employer shall determine the
permitted frequency of such changes which shall be no less frequently than once each
calendar year. Any such election will be effective as soon as practicable following
the receipt of the notification by the Employer in accordance with uniform and
nondiscriminatory procedures established and communicated to the Participants. The
Participant shall notify the Employer of any change in his or her deferral election
in writing or in such other form or manner as permitted. The Employer may,
notwithstanding any limit to the contrary in the Adoption Agreement, limit the
maximum deferral

- 38 -

 

	 	 	 	percentage for Highly Compensated Employees. If a Participant terminates his or her
agreement, such Participant shall be permitted to put a new Salary Deferral
Agreement into effect as provided in the Adoption Agreement or any other uniform and
nondiscriminatory procedures established. The Employer may also amend or terminate
said agreement on notice to the affected Participant, if required to maintain the
qualified status of the Plan.
	 
	 	(d)	 	If permitted by the Employer, when a Participant who has not authorized the
Employer to withhold the maximum annual deferral amount pursuant to Code Section 402(g)
and desires to increase the total amount withheld for a Plan Year, the Participant may
authorize the Employer to withhold a supplemental amount up to 100% of his or her
Compensation for one or more pay periods. In no event may the amounts withheld under
the Salary Deferral Agreement plus any additional amount deferred exceed the lesser of
25% of a Participant’s Compensation or any other limitation elected in the Adoption
Agreement by the Employer.
	 
	 	(e)	 	If the Plan permits Voluntary After-tax Contributions and the Employer has
elected in the Adoption Agreement, all or any portion of amounts previously withheld
under any Salary Deferral Agreement may be recharacterized as Voluntary After-tax
Contributions within the Plan Year.
	 
	 	(f)	 	Elective Deferrals shall be deposited in the Plan’s Trust as soon as
administratively feasible after being withheld from the Participant’s Compensation at
the earliest date on which the contributions can reasonably be segregated from the
Employer’s general assets, but no later than the time prescribed by the Code, ERISA or
by applicable Treasury or Department of Labor Regulations.

4.8 Elective Deferrals In A SIMPLE 401(k) Plan

	 	(a)	 	An Eligible Employee may enter into a Salary Deferral Agreement with the
Employer authorizing the Employer to withhold a portion of such Eligible Employee’s
Compensation, not to exceed $6,000 per calendar year, as adjusted to reflect any annual
cost-of-living increases announced by the Internal Revenue Service. No Eligible
Employee shall be permitted to make Elective Deferrals under this Plan, or any other
Qualified Plan maintained by the Employer, during any taxable year in excess of the
dollar limitation contained in Code Section 402(g) in effect in at the beginning of
such taxable year. The $6,000 limit may be reduced if an Eligible Employee contributes
pre-tax contributions to Qualified Plans of other employers.
	 
	 	(b)	 	In addition to any other election periods provided, each Participant may make
or modify his Salary Deferral Agreement during the sixty (60) day election period
immediately preceding each January 1.
	 
	 	(c)	 	For the Plan Year in which an Eligible Employee becomes eligible to make
Elective Deferrals under the SIMPLE 401(k) Plan provisions, the sixty (60) day election
period requirement of paragraph 4.8(b) above is deemed satisfied if the Eligible
Employee may make or modify a Salary Deferral Agreement election during a sixty (60)
day period that includes either the date the Employee becomes eligible, or the day
before.
	 
	 	(d)	 	An Eligible Employee may amend his or her Salary Deferral Agreement to increase
or decrease the percentage upon proper and timely notice to the Employer. The Employer
shall determine the permitted frequency of such changes. An Eligible Employee may
terminate his or her Salary Deferral Agreement at any time during the Plan Year upon
notice to the Employer. If an Eligible Employee terminates his or her Salary Deferral
Agreement, such Eligible Employee will be permitted to execute a new Salary Deferral
Agreement in accordance with the provisions elected in the Adoption Agreement or any
other uniform and nondiscriminatory procedure. The Employer may also amend or terminate
any Salary Deferral Agreement on notice to the affected Eligible Employee, if required
to maintain the qualified status of the Plan.

- 39 -

 

	 	(e)	 	If permitted by the Employer, a Participant who has not authorized the Employer
to withhold at the maximum annual deferral amount and desires to increase the total
amount withheld for a Plan Year, such Participant may authorize the Employer to
withhold an amount up to 100% of his or her Compensation for one or more pay periods.
	 
	 	(f)	 	Elective Deferrals shall be deposited in the Plan’s Trust as soon as
administratively feasible after being withheld from the Participant’s Compensation at
the earliest date on which the contributions can reasonable be segregated from the
Employer’s general assets but no later than the time prescribed by the Code, ERISA or
by applicable Treasury or Department of Labor Regulations.
	 
	 	(g)	 	The Employer will notify each Eligible Employee prior to the sixty (60) day
election period described in paragraph 4.8(b) that he or she can make an Elective
Deferral or modify a prior election during that period.
	 
	 	(h)	 	The notification described in this subparagraph 4.8(h) will indicate whether
the Employer will provide a Matching Contribution described in paragraph 3.2(a) or a 2%
Non-Elective Contribution described in paragraph 3.2(b).
	 
	 	(i)	 	The Plan is not treated as a Top-Heavy Plan under Code Section 416 for any Plan
Year for which the SIMPLE 401(k) Plan provisions apply.

4.9 Automatic Enrollment

	 	(a)	 	If the Employer so elects in the Adoption Agreement, each Employee eligible
under the Employer’s Code Section 401(k) cash or deferred arrangement shall
automatically become a Participant in the Plan as of the first Entry Date after
satisfying the Plan’s eligibility requirements. The Employer may elect on the Adoption
Agreement to apply the automatic enrollment provisions to current Employees and
Participants or only to Employees hired on or after the Effective Date of the adoption
of or the amendment to the Plan providing for the automatic enrollment provisions. If
the Employer elects the provision to apply to current Employees, the Employer will
apply the automatic enrollment provision to Employees and Participants who are
deferring at less than the amount elected on the Adoption Agreement on or after the
Effective Date of the adoption of or the amendment to the Plan, except for those
Employees and Participants who make an affirmative election to receive the Compensation
in cash.
	 
	 	(b)	 	After satisfying the Plan’s eligibility requirements, each Employee will have
his or her Compensation automatically reduced by the percentage elected in the Adoption
Agreement. These amounts will be contributed to the Plan. An election by the Employee
not to make Elective Deferrals or to contribute a different percentage may be made at
any time. The election is effective for the first pay period and subsequent pay
periods (until superseded by a subsequent election) if filed when the Employee is
hired, or within a reasonable period thereafter ending before the Compensation for the
first pay period is currently made available. In the event an Employee has Elective
Deferrals withheld pursuant to this provision and no investment directive has been
received, any cash received shall be invested as provided for in paragraph 13.8 herein.
If an Employee elects to receive cash in lieu of Elective Deferrals and the election
is made when the Employee is hired or within a reasonable period thereafter ending
before the Compensation is currently available, then no Elective Deferrals for the
first pay period or subsequent pay periods are made on the Employee’s behalf to the
Plan until the Employee makes a subsequent affirmative election to reduce his or her
Compensation. Elections filed at a later date are effective for payroll periods
beginning in the month next following the date the election is filed.
	 
	 	(c)	 	For those current Participants who are deferring at a percentage or dollar
amount less than the amount elected on the Adoption Agreement, the Employer will in the
first payroll period after the effective date of the amendment reduce the Participant’s
Compensation by the difference between the Participant’s current deferral election and
the election as stated on the Adoption Agreement.

- 40 -

 

	 	(d)	 	At the time an Employee is hired, the Plan Administrator shall provide the
Employee a notice that explains the automatic enrollment provision. This notice will
also explain the Employee’s right to elect to have no such Elective Deferrals made to
the Plan or to alter the amount of those contributions. This notice will include the
procedure for exercising the right and the timing for implementation of any such
election. The Plan Administrator shall provide each Participant in the Plan with an
annual notice of his or her Elective Deferral percentage and each Participant’s right
to change the percentage, including the procedure for exercising that right and the
timing for implementation of any such election. Prior to an Employee’s automatic
enrollment becoming effective, the Plan Administrator will provide such Employee with
appropriate guidance as to the procedures then in effect, for the Employee to make
alternative elections referenced above. Each Employee deferring Compensation pursuant
to this paragraph shall be deemed to have consented to an Elective Deferral
contribution in the amount specified by the Employer in the Adoption Agreement, unless
he/she has filed an election to the contrary with the Plan Administrator pursuant to
the Plan’s administrative procedures.

4.10 Make-Up Contributions Under USERRA

A Participant who has the right to make-up Elective Deferrals, Voluntary After-tax Contributions
and/or Required After-tax Contributions under USERRA shall be permitted to increase his or her
Elective Deferral with respect to a make-up year without regard to any provision limiting
contributions for such Plan Year. Make-up contributions shall be limited to the maximum amount
permitted under the Plan and the statutory limitations applicable with respect to the make-up year.
Employee-related make-up contributions must be made within the time period beginning on the date
of reemployment and continuing for the lesser of five (5) years or three (3) times the period of
military service.

- 41 -

 

ARTICLE V

PARTICIPANT ACCOUNTS

5.1 Separate Accounts

The Plan Administrator or its agent shall establish a separate recordkeeping account for each
Participant showing the fair market value of his or her Plan benefits. Each Participant’s account
may be separated for recordkeeping purposes into the following sub-accounts:

     Employer contributions:

	 	(1)	 	Non Safe-Harbor Matching Contribution Formula 1 Contributions
	 
	 	(2)	 	Non Safe-Harbor Matching Contribution Formula 2 Contributions
	 
	 	(3)	 	Qualified Matching Contributions
	 
	 	(4)	 	Qualified Non-Elective Contributions
	 
	 	(5)	 	Discretionary Contributions
	 
	 	(6)	 	Safe Harbor Matching Contributions
	 
	 	(7)	 	Safe Harbor Non-Elective Contributions
	 
	 	(8)	 	Davis-Bacon Contributions
	 
	 	(9)	 	Target Benefit Contributions
	 
	 	(10)	 	SIMPLE 401(k) Matching Contributions
	 
	 	(11)	 	SIMPLE 401(k) Non-Elective Contributions
	 
	 	 	 	Money Purchase Pension Plan Contributions

	 	(b)	 	Employee contributions:

	 	(1)	 	Voluntary After-tax Contributions
	 
	 	(2)	 	Qualified Voluntary Contributions
	 
	 	(3)	 	Elective Deferrals
	 
	 	(4)	 	Required After-tax Contributions
	 
	 	 	 	Rollover Contributions
	 
	 	 	 	Transfer Contributions
	 
	 	 	 	Elective Deferrals in a SIMPLE 401(k) Plan

5.2 Valuation Date

The Trustee shall value the Trust at the fair market value as of each Valuation Date and those
Valuation Dates elected in the Adoption Agreement or as directed in writing by the Plan
Administrator.

	 	(a)	 	Plan Administrators utilizing a daily valuation system for Participant
recordkeeping purposes shall process any contributions, distributions, investment
income or loss, any appreciation or depreciation, investment transactions (including a
purchase or sale of an investment alternative) and any other transactions which affect
a Participant on each business day that securities are traded on the New York Stock
Exchange or any other national securities market. Individual Participant recordkeeping
accounts are updated in accordance with paragraph 5.3 hereof as of each

- 42 -

 

	 	 	 	Valuation Date specified in the Adoption Agreement or such other date as elected by
the Plan Administrator.
	 
	 	(b)	 	Plan Administrators utilizing a balance forward valuation system for
Participant recordkeeping purposes will process contributions, distributions,
investment income or loss, investment transactions (including a purchase or sale of an
investment alternative) and any other transactions at the Plan level on the Valuation
Date and those other Valuation Dates as specified in the Adoption Agreement or any
other date(s) as the determined by the Plan Administrator. Individual Participant
recordkeeping accounts will be updated within the allocation period on the date or
dates determined by the Plan Administrator with respect to contributions and
distributions. Investment earnings will be allocated at the end of the valuation
period. Any other transactions which affect Participant accounts will be posted or
allocated to individual Participant accounts on the next following Valuation Date
unless the Plan Administrator elects, in a uniform and nondiscriminatory manner, to
allocate such transactions as they occur. The Employer may utilize a daily valuation
system for a portion of the Plan and a balance forward valuation system for the balance
of the Plan.

All allocations for a particular Plan Year will be made as of the last Valuation Date(s) of that
Plan Year or such other dates determined by the Plan Administrator.

5.3 Allocations To Participant Accounts

As of each Valuation Date elected by the Employer in the Adoption Agreement and/or on any date
within the allocation period selected in writing by the Plan Administrator, each Participant’s
account shall be adjusted to reflect:

	 	(a)	 	the Participant’s share of the Employer’s contribution and forfeitures as
determined in the Adoption Agreement,
	 
	 	(b)	 	any Employee contributions,
	 
	 	(c)	 	any repayment of amounts previously distributed to a Participant upon a
separation from Service and repaid by the Participant since the last Allocation Date,
	 
	 	(d)	 	the Participant’s proportionate share of any investment earnings and increase
in the fair market value of the Trust since the last Allocation Date, and
	 
	 	(e)	 	loan repayments of principal and interest.

The Employer shall deduct from each account:

	 	(f)	 	any withdrawals or payments made from the Participant’s account since the last
Allocation Date,
	 
	 	(g)	 	the Participant’s proportionate share of any decrease in the fair market value
of the Trust since the last allocation Date, and
	 
	 	(h)	 	the Participant’s proportionate share of any fees and expenses paid from the Plan.

5.4 Allocating Employer Contributions

	 	(a)	 	The Employer must specify in the Adoption Agreement the manner in which the
Employer’s contribution shall be allocated to Participants including any minimum
contribution for Top-Heavy Plans. Employer contributions shall be allocated to all
Participants eligible to receive a contribution as provided in the Adoption Agreement.
	 
	 	(b)	 	Notwithstanding any provision of this Plan to the contrary, Participants will
accrue the right to share in allocations of Employer contributions with respect to
periods of qualified military service as provided in Code Section 414(u).

- 43 -

 

	 	(c)	 	At the end of each Plan Year the Plan Administrator shall redetermine any
Matching Contribution for each Participant based on his or her eligible annual
Compensation in accordance with the Matching Contribution formula elected by the
Employer in the Adoption Agreement. Any Participant for whom any Matching Contribution
has not been sufficiently made in accordance with the Matching Contribution formula
elected by the Employer shall receive an additional Matching Contribution so that the
total annual deferrals (whether pre-tax or after-tax) reflected as a percentage of
eligible annual Compensation are matched in accordance with the Matching Contribution
formula (“true-up” of Matching Contributions) selected by the Employer in the Adoption
Agreement. If no election is made on the Adoption Agreement, no true-up of Matching
Contributions will occur.

5.5 Allocating Investment Earnings And Losses

Account balances are adjusted to reflect actual income and investment gains and losses from the
period beginning on the day following the last Valuation Date and ending on the current Valuation
Date. Each Participant’s account shall receive a proportionate share of the actual income and
investment gains and losses during the period. The value of accounts for allocation purposes shall
be based on the value of all Participant accounts (without regard to any portion of any such
account attributable to segregated investments) as of the last Valuation Date less withdrawals,
distributions and expenses plus any contributions including deferrals (whether pre-tax or
after-tax) if any, paid from the Trust since the last Valuation Date. Investment gains and losses
shall be credited to all Participant accounts having a balance on the Valuation Date regardless of
the vested status of such account and regardless of the Participant’s employment status. The Plan
Administrator shall also have the right to adopt an alternative procedure for allocating income and
investment gains and losses provided that such alternative procedure is uniform and does not
discriminate in favor of Highly Compensated Employees. Any change in procedure shall be effective
as of the next following Valuation Date or such other date as agreed to by the Employer and the
Plan Administrator. Accounts with segregated investments shall receive the income or loss on such
segregated investments. Investment gains or losses are determined separately for each investment
alternative offered under the Plan.

	 	(a)	 	The value of a Participant’s account invested in a mutual fund (Registered
Investment Company) will equal the value of a share in such fund multiplied by the
number of shares credited to the Participant’s account.
	 
	 	(b)	 	In the case of any pooled investment vehicle, earnings, gains or losses on the
pooled investment vehicle will be allocated among the Participant’s accounts in
proportion to the value of each Participant’s account invested in that investment
vehicle immediately prior to the Valuation Date. The gain or loss attributed to each
investment vehicle will be credited to or charged against the Participants’ account.
Alternatively, the Plan Administrator or his designate may establish unit values for
each pooled investment vehicle offered under the Plan in accordance with uniform
procedures established by the Plan Administrator for this purpose. The value of the
portion of a Participant’s account invested in a pooled investment vehicle will equal
the value of a unit in such investment vehicle multiplied by the number of units
credited to the account.
	 
	 	(c)	 	In the case of any investment that is held specifically for a Participant’s
account, any gain or loss on such investment will be charged or credited to that
Participant’s account.

5.6 Allocation Adjustments

The Plan Administrator or his designate, if applicable, shall have the right to redetermine the
value of Participant accounts if a previous allocation or valuation was performed incorrectly.
Such redetermination shall be made without regard to the reason for the incorrect allocation. Such
reasons may include, but are not limited to, incorrect contribution or Employee information
provided by the Employer or representative of the Employer, incorrect valuation of Plan assets,
incorrect determination of investment income and gains or losses, improper interpretation of the
Plan’s allocation formulas or procedures, erroneous omission of Top-Heavy minimum contributions and
failure to transmit, receive or interpret amendments to the allocation formulas, methods or
procedures. Subject to express limits that may be imposed under the Code, the Plan Administrator
reserves the right to delay the processing of any contribution, distribution or other transaction
for any legitimate business reason (including, but not limited to,

- 44 -

 

failure of systems or computer programs, failure of means of transmission of data, force majeure,
the failure of any Service Provider to timely receive values or prices, or to correct for its
errors omissions or the errors or omissions of any Service Provider). After having made any
necessary adjustments, the Plan Administrator or his designate, if applicable, may issue either
revised or adjusted statements to Participants with an explanation of the allocation adjustments.

5.7 Participant Statements

The Plan Administrator shall prepare a statement for each Participant not less frequently than
annually. Statements may be prepared more frequently as agreed between the Plan Administrator and
the Service Provider or other entity responsible for the maintenance of Plan records or for valuing
Plan assets. Each statement shall show the additions to and subtractions from the Participant’s
account for the period since the last such statement and shall show the fair market value of the
Participant’s account as of the current statement date.

5.8 Changes In Method And Timing Of Valuing Participants’ Accounts

If necessary or appropriate, the Plan Administrator may establish different or additional uniform
and nondiscriminatory procedures for determining the fair market value of Participant’s accounts
under the Plan.

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ARTICLE VI

RETIREMENT BENEFITS AND DISTRIBUTIONS

6.1 Normal Retirement Benefits

A Participant shall be entitled to receive the balance held in his or her account upon attaining
his or her Normal Retirement Age or at such earlier dates as the provisions of this Article VI may
permit. If a Participant elects to continue working past his or her Normal Retirement Age, he or
she will continue as an active Participant. Unless the Employer elects otherwise in the Adoption
Agreement, distribution shall be made to such Participant at his or her request prior to his or her
actual retirement. Distribution shall be made in the normal form, or if elected, in one of the
optional forms of payment provided below.

6.2 Early Retirement Benefits

An Early Retirement benefit may be available if elected in the Adoption Agreement to individuals
who meet the age and Service requirements specified in the Adoption Agreement. A Participant who
attains his or her Early Retirement Date will become fully vested, regardless of any vesting
schedule which otherwise might apply. If a Participant separates from Service with a
nonforfeitable benefit before satisfying the age requirements, but after having satisfied the
Service requirement, the Participant will be entitled to elect an Early Retirement benefit upon
satisfaction of the age requirement.

6.3 Benefits On Termination Of Employment

	 	(a)	 	If a Participant terminates employment prior to Normal Retirement Age, such
Participant shall be entitled to receive the vested balance held in his or her account
payable at Normal Retirement Age in the normal form, or if elected, in one of the other
forms of payment provided hereunder. If applicable, the Early Retirement benefit
provisions may be elected. Notwithstanding the preceding, a former Participant may, if
allowed in the Adoption Agreement, make application to the Employer requesting early
payment of any deferred vested and nonforfeitable benefit due.

If a Participant terminates employment, and the value of the Participant’s Vested
Account Balance is not greater than $5,000, the Participant may receive a lump sum
distribution of the value of the entire vested portion of such account balance and
the nonvested portion will be treated as a forfeiture. The Plan Administrator shall
follow a consistent and nondiscriminatory policy, as may be established, regarding
immediate cash-outs of Vested Account Balances.

	 	(c)	 	For purposes of this Article, if the value of a Participant’s Vested Account
Balance is zero, the Participant shall be deemed to have received a distribution of
such Vested Account Balance immediately following termination. If the Participant is
reemployed prior to incurring five (5) consecutive one (1) year Breaks in Service or
Periods of Severance, he or she will be deemed to have immediately repaid such
distribution. Notwithstanding the above, if the Employer maintains or has maintained a
policy of not distributing any amounts until the Participant’s Normal Retirement Age,
the Employer can continue to uniformly apply such policy.
	 
	 	(d)	 	If a Participant terminates employment with a Vested Account Balance greater
than $5,000, and elects (with his or her Spouse’s consent, if required) to receive 100%
of the value of his or her Vested Account Balance in a lump sum, the nonvested portion
will be treated as a forfeiture. The Participant (and his or her Spouse, if required)
must consent to any distribution when the Vested Account Balance described above
exceeds $5,000.
	 
	 	(e)	 	If a Participant who is not 100% vested receives or is deemed to receive a
distribution pursuant to this paragraph and resumes employment covered under this Plan,
the Participant shall have the right to repay to the Plan the full amount of the
distribution attributable to both Employer contributions and Elective Deferrals on or
before the earlier of the date the Participant incurs five (5) consecutive one (1) year
Breaks in Service following the date of distribution or five (5) years

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	 	 	 	after the first date on which the Participant is subsequently reemployed. In such
event, the Participant’s account shall be restored to the value thereof at the time
the distribution was made. The account may be further increased by the Plan’s
income and investment gains and/or losses on the undistributed amount from the date
of the distribution to the date of repayment.
	 
	 	(f)	 	If the Participant’s Vested Account Balance is greater than $5,000, a
Participant shall have the option to postpone payment of his or her Plan benefits until
his or her Required Beginning Date. If elected in the Adoption Agreement, any balance
in a Participant’s account resulting from his or her Employee contributions listed at
paragraph 5.1(b), hereof, not previously withdrawn, may be withdrawn by the Participant
immediately following separation from Service.
	 
	 	(g)	 	If a Participant ceases to be an active Employee as a result of a Disability,
such Participant shall have the right to make an application for a disability
retirement benefit payment. The Participant’s account balance will be deemed
“immediately distributable” as set forth in paragraph 6.4, and will be fully vested
pursuant to paragraph 9.2.
	 
	 	(h)	 	If elected in the Adoption Agreement, when a terminating Participant or
Employee does not make a timely election with respect to the cash out distribution of
amounts greater than $1,000 but less than or equal to $5,000, pursuant to Code Sections
411(a)(7), 411(a)(11) and 417(e)(7), the Plan Administrator will make a direct rollover
into an individual retirement account or annuity (“IRA”). The Plan Administrator will
select the IRA trustee or custodian, establish the IRA and make the initial IRA
investment selection.

6.4 Restrictions On Immediate Distributions

	 	(a)	 	An account balance is immediately distributable if any part of the account
balance could be distributed to the Participant (or Surviving Spouse) before the
Participant attains (or would have attained if not deceased) the later of the Normal
Retirement Age or age sixty-two (62).

If payment in the form of a Qualified Joint and Survivor Annuity is required and the
value of a Participant’s Vested Account Balance exceeds $5,000, or there are
remaining payments to be made with respect to a particular distribution option that
previously commenced, and the account balance is immediately distributable, the
Participant and his or her Spouse (or where either the Participant or the Spouse has
died, the survivor) must consent to any distribution of such account balance.

	 	(c)	 	If payment in the form of a Qualified Joint and Survivor Annuity is not
required with respect to a Participant and the value of a Participant’s Vested Account
Balance exceeds $5,000, and the account balance is immediately distributable, only the
Participant must consent to any distribution of such account balance.
	 
	 	(d)	 	The consent of the Participant and/or the Spouse shall be obtained in writing
or in such other form accepted by the Plan Administrator within the ninety (90) day
period ending on the Annuity Starting Date, which is the first day of the first period
for which an amount is paid as an annuity or in any other form. The Plan Administrator
shall notify the Participant and the Participant’s Spouse of the right to defer any
distribution until the Participant’s account balance is no longer immediately
distributable. Such notification shall include a general description of the material
features, and an explanation of the relative values of, the optional forms of benefit
available under the Plan in a manner that would satisfy the notice requirements of Code
Section 417(a)(3), and shall be provided no less than thirty (30) days and no more than
ninety (90) days prior to the Annuity Starting Date.
	 
	 	(e)	 	If the distribution is one to which Code Sections 401(a)(11) and 417 do not
apply, such distribution may commence less than thirty (30) days after the notice
required under Regulation Section 1.411(a)-11(c) is given provided that:

- 47 -

 

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

	 	 	 	If a distribution is one to which Code Section 417 does apply, the distribution may
commence less than thirty (30) days, but not less than seven (7) days after the
notice required under Regulations Section 1.411(a)-11(c) is given, provided that the
conditions of sub-paragraphs (1) and (2) above are satisfied with regard to both the
Participant and the Participant’s Spouse.
	 
	 	(f)	 	Notwithstanding the foregoing, only the Participant need consent to the
commencement of a distribution in the form of a Qualified Joint and Survivor Annuity
while the account balance is immediately distributable. Furthermore, if payment in the
form of a Qualified Joint and Survivor Annuity is not required with respect to the
Participant pursuant to paragraph 8.7 of the Plan, only the Participant need consent to
the distribution of an account balance that is immediately distributable. Neither the
consent of the Participant nor the Participant’s Spouse shall be required to the extent
that a distribution is required to satisfy Code Section 401(a)(9) or Code Section 415
or constitutes Excess Deferrals, Excess Contributions or Excess Aggregate
Contributions. In addition, upon termination of this Plan if the Plan does not offer
an annuity option (purchased from a commercial provider), the Participant’s account
balance may, without the Participant’s consent, be distributed to the Participant or
transferred to another Defined Contribution Plan [other than an employee stock
ownership plan as defined in Code Section 4975(e)(7)] within the same controlled group.

6.5 Normal And Optional Forms Of Payment

	 	(a)	 	The normal form of payment for a profit sharing, 401(k) or SIMPLE 401(k) plan
satisfying the requirements of paragraph 8.7 herein shall be a lump sum.
	 
	 	 	 	A Plan other than a money purchase pension plan, a target benefit plan or a
profit-sharing plan required to provide a Joint and Survivor benefit may be amended
to eliminate or restrict optional payment forms provided that a single lump sum
payment options remains available, that is an otherwise identical distribution form
to the eliminated or restricted option, except with respect to the timing of
payments after commencement. The form must have the same (or less restrictive)
timing of distribution, medium of distribution and eligibility conditions that were
available for the eliminated forms of payment, and any such amendment will not be
effective until the earlier of ninety (90) days after the date that Plan
Participants are provided with the written notice of the Plan amendment in the form
of a summary of material modification (SMM) or the first day of the second Plan Year
after the Plan Year in which the amendment is adopted.
	 
	 	 	 	Each optional form of benefit provided under a standardized or non-standardized
safe-harbor plan (other than any that have been prospectively eliminated) must be
currently available to all Employees benefiting under the Plan. This is the case
regardless of whether a particular form of benefit is the actuarial equivalent of
any other optional form of benefit under the Plan. Code Section 411(d)(6) prevents
a Plan from being amended to eliminate or restrict optional forms of benefits and
any other Code Section 411(d)(6) protected benefits with respect to benefits
attributable to Service before the amendments except as expressly provided under the
Regulations Section 1.411(d)-4.
	 
	 	 	 	For money purchase and target benefit plans, the normal form of payment hereunder
shall be a Qualified Joint and Survivor Annuity as provided under Article VIII.
Effective January 1, 2002, the Employer may elect in the Adoption Agreement to
eliminate any periodic payment options

- 48 -

 

	 	 	 	that are not required by the Qualified Joint and Survivor Annuity rules such as but
not limited to installment payments.

The normal form of payment shall be automatic, unless the Participant files a
written request with the Employer prior to the date on which the benefit is
automatically payable, electing another option available under the Plan.
	 
	 	 	 	A Participant whose Vested Account Balance exceeds $5,000 shall (with the consent of
his or her spouse, if applicable) have the right to receive his or her benefit in a
single lump sum or in installment payments. Installment payments need not be equal
or substantially equal until such time as the individual reaches his or her Required
Beginning Date. Installment payments which are intended to be equal or
substantially equal can be made monthly, quarterly, semi-annually or annually based
on any period not extending beyond the Joint and Survivor life expectancy of the
Participant and his or her Beneficiary.
	 
	 	 	 	Benefits payable under the Plan may be distributed in cash or in-kind as elected in
the Adoption Agreement.
	 
	 	 	 	The Employer may elect on the Adoption Agreement to limit a Participant’s right to
receive distributions in the form of marketable securities (other than Employer
securities) and to require distributions in the form of cash only. Only the right
to receive a distribution in the form of cash, Employer securities and/or other
property that is not marketable is protected. Any such amendment to the Plan will
not be effective until the earlier of ninety (90) days after the date that Plan
Participants are provided with the written notice of the Plan amendment in the form
of a summary of material modification (SMM) or the first day of the second Plan Year
after the Plan Year in which the amendment is adopted.
	 
	 	 	 	A Plan that permits its Participants to receive in-kind distributions may limit the
available in-kind distributions to the investments listed in the Adoption Agreement
and only to the extent the investments are held in the Participant’s account at the
time of the distribution. A Plan may be amended to limit the investments which will
be distributed in-kind. The amendment must include all investments (other than
marketable securities for which cash may be substituted) that are held in a
Participant’s account at the time of the amendment and for which the Plan, prior to
such amendment, allowed for distribution of those investments in kind. The right to
an in-kind distribution for investments held at the time of the distribution would
only have to be protected to the extent such investment was in the Participant’s
account at the time the amendment was adopted or effective, if later. Any such
amendment will not be effective until the earlier of ninety (90) days after the date
that Plan Participants are provided with the written notice of the Plan amendment in
the form of a summary of material modification (SMM) or the first day of the second
Plan Year after the Plan Year in which the amendment is adopted.
	 
	 	 	 	Promissory notes of Participants may be distributed in-kind pursuant to the
Employer’s loan policy document.
	 
	 	 	 	Distribution of benefits payable in the form of installments shall be paid in cash.
	 
	 	 	 	The propriety, amount, and form of any distribution made under the terms of this
Plan shall be determined by the Plan Administrator. Upon such determination, the
Plan Administrator shall direct the Trustee or Custodian in writing or by any such
other means as expressly agreed upon, to make such a distribution.

6.6 Commencement Of Benefits

	 	(a)	 	Unless the Participant elects otherwise, distribution of benefits will begin no
later than the sixtieth day after the close of the Plan Year in which the latest of the
following events occurs:

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	 	(1)	 	the Participant attains age sixty-five (65) (or Normal
Retirement Age if earlier),
	 
	 	(2)	 	the tenth anniversary of the year in which the Participant
commenced participation in the Plan, or
	 
	 	(3)	 	the Participant terminates Service with the Employer.

	 	(b)	 	Notwithstanding the foregoing, the failure of a Participant and Spouse (if
necessary) to consent to a distribution while a benefit is immediately distributable
within the meaning of paragraph 6.4 hereof, shall be deemed an election to defer
commencement of payment of any benefit sufficient to satisfy this paragraph.
	 
	 	(c)	 	If elected in the Adoption Agreement, if a terminating Participant or Employee
does not make a timely election with respect to the cash-out distribution pursuant to
Code Sections 411(a)(7), 411(a)(11) and 417(e)(1), the Plan Administrator will make a
direct rollover into an individual retirement account or annuity (IRA). The Plan
Administrator will select the IRA trustee or custodian, establish the IRA account and
make the initial IRA investment selection.

6.7 Transitional Rules For Cash-Out Limits

This paragraph provides transitional rules with regard to the cash-out limits for distributions
made prior to October 17, 2000.

	 	(a)	 	Distributions Subject To Code Section 417 — If payments in the form of a
Qualified Joint and Survivor Annuity are required with regard to a Participant, the
rules in this sub-paragraph 6.7(a) are substituted for the rule in the first sentence
of paragraph 6.4(b). If the value of the Participant’s Vested Account Balance exceeds
$5,000 (or at the time of any distribution (1) in Plan Years beginning before August 6,
1997, exceeded $3,500 or (2) in Plan Years beginning after August 5, 1997, exceeded
$5,000), and the account balance is immediately distributable, the Participant and the
Participant’s Spouse (or where either the Participant or the Spouse has died, the
survivor) must consent to any distribution of such account balance.
	 
	 	(b)	 	Distributions Not Subject To Code Section 417 — If payment in the form of a
Qualified Joint and Survivor Annuity is not required with respect to a Participant, the
rules in this subparagraph 6.7(b) are substituted for the rules in paragraph 6.4(c).
	 
	 	 	 	If the value of a Participant’s Vested Account Balance derived from Employer and
Employee contributions:

	 	(1)	 	for Plan Years beginning before August 6, 1997, exceeds $3,500
(or exceeded $3,500 at the time of any prior distribution),
	 
	 	(2)	 	for Plan Years beginning after August 5, 1997, exceeds $3,500
(or exceeded $3,500 at the time of any prior distribution),
	 
	 	(3)	 	for Plan Years beginning after August 5, 1997 and for a
distribution made after March 21, 1999, that either exceeds $5,000 or is a
remaining payment under a selected optional form of payment that exceeded
$5,000 at the time the selected payment began, and the account balance is
immediately distributable, the Participant and the Participant’s Spouse (or
where either the Participant or the Spouse had died, the survivor) must consent
to any distribution of such account balance.

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6.8 In-Service Withdrawals

If elected in the Adoption Agreement, an Employer may elect to permit a Participant in the Plan to
make an in-service withdrawal subject to any limitation(s) specified in the Adoption Agreement.

	 	(a)	 	An Participant may withdraw all or any part of the fair market value of his or
her Voluntary or Required After-tax Contributions as described in Article IV, other
than Elective Deferrals, upon request to the Plan Administrator unless indicated
otherwise on the Adoption Agreement. No amount will be forfeited solely as a result of
a Participant’s withdrawal of an amount pursuant to this paragraph 6.8. Employee
Rollover and Transfer Contributions and the income allocable to each may be withdrawn
at any time unless indicated otherwise on the Adoption Agreement.
	 
	 	(b)	 	Subject to Article VIII, Joint and Survivor Annuity Requirements (if
applicable) and pursuant to the Employer’s election in the Adoption Agreement, a
Participant may be eligible to withdraw any part of his or her Qualified Voluntary
Contribution account by making application to the Plan Administrator. A request to
withdraw amounts pursuant to this paragraph must be consented to by the Participant’s
Spouse unless the Plan satisfies the safe harbor under paragraph 8.7 hereof. Spousal
consent, if required, shall comply with the requirements of paragraph 6.4 relating to
immediate distributions.
	 
	 	(c)	 	A Participant may withdraw all or any part of the fair market value of his or
her pre-1987 Voluntary Contributions with or without withdrawing the earnings
attributable thereto. Post-1986 Voluntary Contributions may only be withdrawn along
with a portion of the earnings thereon. The amount of the earnings to be withdrawn is
determined by using the formula: DA [1-(V ÷ V+E)], where DA is the distribution amount,
V is the amount of Voluntary Contributions and V+E is the amount of Voluntary
Contributions plus the earnings attributable thereto. The aggregate value of the
Participant’s Vested Account Balance derived from Employer and Employee contributions
(including Rollovers), whether vested before or upon death, includes the proceeds of
insurance contracts, if any, on the Participant’s life. The provisions of this Article
shall apply to a Participant who is vested in amounts attributable to Employer
contributions, Employee contributions (or both) at the time of death or distribution.
	 
	 	(d)	 	Under a Profit Sharing Plan to the extent that the Employer elects in the
Adoption Agreement, one of the following conditions is required to withdraw all or any
part of the vested Non-Safe Harbor Matching Contributions and discretionary
contributions.

	 	(1)	 	An Employee who has been a Participant in the Plan for at least
five (5) years may, prior to separating from Service with the Employer, elect
to withdraw all or any part of the vested Non-Safe Harbor Matching
Contributions, and discretionary contributions.
	 
	 	(2)	 	An Employee who has been a Participant in the Plan for at least
two (2) years may, prior to separating from Service with the Employer, elect to
withdraw all or any part of the vested Non-Safe Harbor Matching Contributions
and discretionary contributions.
	 
	 	(3)	 	A Participant who had attained age 591/2 may, prior to separation
from Service, elect to withdraw all of any part of the vested Non-Safe Harbor
Matching Contributions and discretionary contributions.

	 	(e)	 	Unless otherwise elected by the Employer in the Adoption Agreement, Elective
Deferrals, Qualified Non-Elective Contributions, Safe Harbor Matching and Non-Elective
Contributions, and Qualified Matching Contributions, and income allocable to each, are
not distributable to a Participant earlier than upon separation from Service, death, or
Disability. Such amounts may also be distributed upon:

- 51 -

 

	 	(1)	 	termination of the Plan without the establishment of another
Defined Contribution Plan other than an employee stock ownership plan [as
defined in Code Section 4975(e)(7)] or a Simplified Employee Pension Plan [as
defined in Code Section 408(k)], or a SIMPLE IRA plan [as defined in Code
Section 408(p)],
	 
	 	(2)	 	the disposition by a corporation to an unrelated corporation of
substantially all of the assets [within the meaning of Code Section 409(d)(2)]
used in a trade or business of such corporation if such corporation continues
to maintain this Plan after the disposition, but only with respect to Employees
who continue employment with the corporation acquiring such assets,
	 
	 	(3)	 	the disposition by a corporation to an unrelated entity of such
corporation’s interest in a subsidiary [within the meaning of Code Section
409(d)(3)] if such corporation continues to maintain this Plan, but only with
respect to Employees who continue employment with such subsidiary,
	 
	 	 	 	the attainment of age 591/2, or
	 
	 	 	 	the hardship of a Participant as described in paragraph 6.9.

	 	(f)	 	An in-service withdrawal shall not be eligible for redeposit to the Trust. A
withdrawal under this paragraph shall not prohibit such Participant from sharing in any
future Employer contribution he or she would otherwise be eligible to receive.
	 
	 	(g)	 	Money purchase pension plans and target benefit plans may not allow in-service
withdrawals prior to attainment of the Normal Retirement Age as specified in the
Adoption Agreement.
	 
	 	(h)	 	Notwithstanding any provisions of the Plan to the contrary, to the extent that
any optional form of benefit under this Plan permits a distribution prior to the
Participant’s retirement, death, Disability, or separation from Service, and prior to
Plan termination, the optional form of benefits is not available with respect to
benefits attributable to assets (including the post-transfer earnings thereon) and
liabilities that are transferred within the meaning of Code Section 414(l), to this
Plan from a money purchase pension plan qualified under Code Section 401(a) (other than
any portion of those assets and liabilities attributable to Voluntary After-tax
Contributions).
	 
	 	(i)	 	A Participant may withdraw any amount attributable to profit-sharing
contributions, Elective Deferrals, Matching Contributions, Rollover and Transfer
Contributions, not in excess of the vested amount of such contributions, if the
withdrawal is made after the Participant attains age 591/2, as elected in the Adoption
Agreement.
	 
	 	(j)	 	Partially Vested Participants - If a distribution is made at a time when a
Participant has a nonforfeitable right to less than 100% of the account balance derived
from Employer contributions and the Participant may increase the nonforfeitable
percentage in the account:

	 	(1)	 	a separate account will be established for the Participant’s
interest in the Plan as of the time of the distribution, and
	 
	 	(2)	 	at any relevant time the Participant’s nonforfeitable portion
of the separate account will be equal to an amount (“X”) determined by the
formula:

X = P [AB + D] - D

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

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6.9 Hardship Withdrawals

If elected in the Adoption Agreement, a Participant may request a Hardship withdrawal as provided
in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent
requirements in Code Sections 401(a)(11) and 417. A request to withdraw amounts must be consented
to by the Participant’s Spouse unless the Plan satisfies the safe harbor provisions under paragraph
8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.4
relating to immediate distributions.

If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship
withdrawal of any amount attributable to the vested portion of Elective Deferral Contributions (and
any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end
of the last Plan Year ending before July 1, 1989). If elected in the Adoption Agreement, fully
vested profit-sharing contributions, Matching Contributions, Rollover Contributions, Transfer
Contributions and the income allocable to each (without regard to attainment of age 591/2 or
Disability) may be available for Hardship withdrawal if the Participant establishes that an
immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial
need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary
or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator.
Such request shall be made in accordance with procedures adopted by the Plan Administrator or his
or her designate who shall have sole authority to authorize and direct a Hardship withdrawal
pursuant to the following rules:

	 	(a)	 	Administrative Requirements — A distribution will be considered as necessary to
satisfy an immediate and heavy financial need of the Participant only if:

	 	(1)	 	The Participant has obtained all distributions, other than
Hardship distributions, and all nontaxable loans under all plans maintained by
the Employer.
	 
	 	(2)	 	The Participant’s Elective Deferrals, Voluntary After-tax
Contributions and Required After-tax Contributions will be suspended for all
plans maintained by the Employer (other than benefits under Code Section 125
plans) for twelve (12) months after the receipt of the Hardship distribution.
	 
	 	(3)	 	The distribution is not in excess of the amount of the
immediate and heavy financial need described at paragraph (b) including amounts
necessary to pay any Federal, state or local income taxes or penalties
reasonably anticipated to result from the distribution.
	 
	 	(4)	 	All plans maintained by the Employer must provide that a
Participant may not make Elective Deferrals for the Participant’s taxable year
immediately following the taxable year of the Hardship distribution in excess
of the applicable limit under Code Section 402(g) for such taxable year, less
the amount of such Participant’s Elective Deferrals for the taxable year during
which the Hardship distribution was received.

	 	(b)	 	Exclusive Reasons For Hardship Withdrawal — An immediate and heavy financial
need exists when the Hardship withdrawal will be used to pay the following:

expenses incurred or necessary for medical care [described in Code Section
213(d)] of the Participant, his or her Spouse, children and other
dependents,

	 	(2)	 	the cost directly related to the purchase (excluding mortgage
payments) of the principal residence of the Participant,
	 
	 	(3)	 	payment of tuition and related educational expenses (including
but not limited to expenses associated with room and board) for the next twelve
(12) months of post-secondary education for the Participant, his or her Spouse,
children or other dependents, or
	 
	 	(4)	 	the need to prevent eviction of the Participant from, or a
foreclosure on the mortgage of, the Participant’s principal residence.

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	 	(c)	 	If a request for a Hardship withdrawal is approved by the Plan Administrator,
funds shall be withdrawn from the contribution sources as elected in the Adoption
Agreement unless provided otherwise by the Plan Administrator in an administrative
procedure. Liquidation of a Participant’s assets for the purpose of a Hardship
withdrawal will be allocated on a pro-rata basis across all the investment alternatives
in a Participant’s account, unless otherwise provided by administrative procedure or by
a directive from the Plan Administrator or by the Plan Participant.

6.10 Direct Rollover Of Benefits

Notwithstanding any provision of the Plan to the contrary that would otherwise limit
a Participant’s election under this paragraph, for distributions made on or after
January 1, 1993, a Participant may elect, at the time and in the manner prescribed
by the Plan Administrator, to have any portion of an Eligible Rollover Distribution
paid directly to an Eligible Retirement Plan or individual retirement account
specified by the Participant in a Direct Rollover. Any portion of a distribution
which is not paid directly to an Eligible Retirement Plan or individual retirement
account shall be distributed to the Participant. For purposes of this paragraph, a
surviving Spouse or a Spouse or former Spouse who is an alternate payee under a
Qualified Domestic Relations Order as defined in Code Section 414(p), will be
permitted to elect to have any Eligible Rollover Distribution paid directly to an
individual retirement account (IRA) or an individual retirement annuity (IRA) or to
another Qualified Plan in which the alternate payee is a participant.

	 	(b)	 	If the entire Vested Account Balance is not eligible for a Direct Rollover of
benefits as described in (a) above, the Participant may either make an elective
transfer of the entire Vested Account Balance pursuant to the procedure described at
paragraph 4.5 or a direct rollover of the portion which can be rolled over as described
in (a) above and an elective transfer of the rest as described in paragraph 4.5 herein.
	 
	 	(c)	 	After December 31, 2001, the elective transfer of distributable benefits will
be available only if the direct rollover provisions of Code Section 401(a)(31) would
not be available to transfer the Participant’s entire Vested Account Balance to the
transferee plan. This elective transfer option will only be available in the following
circumstances;

The Plan does not have a single sum distribution option available. The
benefits are distributable only in a periodic payment method.

The distribution includes benefits that are not eligible for rollover
treatment, including benefits attributable to After-tax Contributions,
required minimum distributions or other amounts that have previously been
included in income.

	 	(d)	 	Distributions that consist of the Participant’s entire account balance which is
entirely eligible for rollover treatment will be transferred as a direct rollover
rather than an elective transfer.

6.11 Participant’s Notice 

 In the event that a Participant’s benefit becomes payable under Plan terms or if a
Participant requests distribution of his or her benefit, the Plan Administrator shall provide such
Participant with a notice regarding distribution of such benefit. The notice shall describe any
Plan related information regarding the distribution including the Joint and Survivor Annuity
requirements provided at paragraph 6.4(d), if applicable, the normal and optional forms of payment
provided at paragraph 6.5, and the information required in connection with an Eligible Rollover
Distribution. Information in connection with an Eligible Rollover Distribution shall include the
right to have the funds transferred directly to another Qualified Plan or individual retirement
account, the income tax withholding requirements, the rollover rules with respect to amounts
distributed to the Participant, the default direct rollover provisions of Vested Account Balances
greater than $1,000 but less than or equal to $5,000 (any other appropriate information such as the
name and address, and telephone number of the IRA Trustee and information regarding IRA maintenance
and withdrawal fees and how the IRA funds will be invested) and the general tax rules which apply
to

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such distributions. Such notice shall be provided to the Participant within the time period
prescribed at paragraph 6.4(d) hereof or, if the safe harbor provisions of paragraph 8.7 are
applicable, not less than thirty (30) days prior to the Annuity Starting Date, subject to a waiver
period of a lesser number of days if elected by the Participant and if applicable, their Spouse.
A default direct rollover will occur not less than thirty (30) days and not more than ninety (90)
days after such notice with the explanation of the default direct rollover is provided to the
separating Participant.

6.12 Assets Transferred From Money Purchase Pension Plans

Notwithstanding any provision of this Plan to the contrary, to the extent that any optional form of
benefit under this Plan permits a distribution prior to the Employee’s retirement, death,
Disability, or severance from employment, and prior to Plan termination, the optional form of
benefit is not available with respect to benefits attributable to assets (including the associated
post-transfer earnings) and liabilities that are transferred, within the meaning of Code Section
414(l), to this Plan from a money purchase pension plan qualified under Code Section 401(a) (other
than any portion of those assets and liabilities attributable to Voluntary After-tax
Contributions).

6.13 Assets Transferred From A Code Section 401(k) Plan

If the Plan receives a direct transfer (by merger or otherwise) of Elective Deferrals (or amounts
treated as Elective Deferrals) under a Plan with a Code Section 401(k) arrangement, the
distribution restrictions of Code Sections 401(k)(2) and 401(k)(10) continue to apply to those
transferred Elective Deferrals.

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ARTICLE VII

DISTRIBUTION REQUIREMENTS

7.1 Joint And Survivor Annuity Requirements 

All distributions made under the terms of this Plan must comply with the provisions of Article VIII
including, if applicable, the safe harbor provisions thereunder.

7.2 Minimum Distribution Requirements 

All distributions required under this Article shall be determined and made in accordance with the
minimum distribution requirements of Code Section 401(a)(9) and the Regulations issued thereunder,
including the minimum distribution incidental benefit rules found at Regulations Section
1.401(a)(9)-2. The entire interest of a Participant must be distributed or begin to be distributed
no later than the Participant’s Required Beginning Date. Life expectancy and joint and last
survivor life expectancies are computed by using the expected return multiples found in Tables V
and VI of Regulations Section 1.72-9.

7.3 Limits On Distribution Periods

As of the First Distribution Calendar Year, distributions, if not made in a single sum, may only be
made over one of the following periods (or a combination thereof):

	 	 	 	the life of the Participant,

	 	 	the life of the Participant and their Beneficiary,
	 
	 	 	a period certain not extending beyond the life expectancy of the Participant, or
	 
	 	 	a period certain not extending beyond the joint and last survivor life expectancy of
the Participant and their Beneficiary.

7.4 Required Distributions On Or After The Required Beginning Date

	 	(a)	 	If a Participant’s benefit is to be distributed over (i) a period not extending
beyond the life expectancy of the Participant or the joint life and last survivor
expectancy of the Participant and the Participant’s Beneficiary or (ii) a period not
extending beyond the life expectancy of the Beneficiary, the amount required to be
distributed for each calendar year, beginning with distributions for the First
Distribution Calendar Year, must at least equal the sum obtained by dividing the
Participant’s benefit by the Applicable Life Expectancy.
	 
	 	(b)	 	For calendar years beginning before January 1, 1988, if the Participant’s
Spouse is not the designated Beneficiary, the method of distribution selected must
assure that at least 50% of the Present Value of the amount available for the
distribution is paid within the life expectancy of the Participant.
	 
	 	(c)	 	For calendar years beginning after December 31, 1989, the amount to be
distributed each year beginning with distributions for the First Distribution Calendar
Year, shall not be less than the quotient obtained by dividing the Participant’s
Benefit by the lesser of (i) the Applicable Life Expectancy or (ii) if the
Participant’s Spouse is not the Beneficiary, the applicable divisor determined from the
table set forth in Q&A-4 of Regulations Section 1.401(a)(9)-2. Distributions after the
death of the Participant shall be distributed using the Applicable Life Expectancy as
the relevant divisor without regard to Regulations Section 1.401(a)(9)-2.
	 
	 	(d)	 	The minimum distribution required for the Participant’s First Distribution
Calendar Year must be made on or before the Participant’s Required Beginning Date. The
minimum distribution for other calendar years, including the minimum distribution for
the Distribution Calendar Year in which

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	 	 	 	the Participant’s Required Beginning Date occurs, must be made on or before December
31 of that Distribution Calendar Year.
	 
	 	(e)	 	If the Participant’s Benefit is distributed in the form of an annuity,
distributions thereunder shall be made in accordance with the requirements of Code
Section 401(a)(9) and the Regulations thereunder.
	 
	 	(f)	 	Distributions made to a Participant and the Participant’s Beneficiary shall be
made in accordance with the incidental death benefit requirements of Code Section
401(a)(9) and the Regulations issued thereunder.
	 
	 	(g)	 	For purposes of determining the amount of the required distribution for each
Distribution Calendar Year, the account balance to be used is the account balance
determined as of the last Valuation Date preceding the Distribution Calendar Year.
This balance will be increased by the amount of any contributions or forfeitures
allocated to the account balance after the Valuation Date in such preceding calendar
year. Such balance will also be decreased by distributions made after the Valuation
Date in such preceding Calendar Year.
	 
	 	(h)	 	For purposes of paragraph 7.4(g), if any portion of the minimum distribution
for the First Distribution Calendar Year is made in the second Distribution Calendar
Year on or before the Required Beginning Date, the amount of the minimum distribution
made in the second Distribution Calendar Year shall be treated as if it had been made
in the immediately preceding Distribution Calendar Year.

7.5 Required Beginning Date

If this Plan is an amendment or restatement of a Plan which included the provisions of the minimum
distribution rules as in effect prior to the enactment of the Small Business Job Protection Act of
1996 (SBJPA), the Employer may elect in the Adoption Agreement to substitute the minimum
distribution rules in effect after the enactment of SBJPA. The Employer, so electing, must also
elect in the Adoption Agreement those transitional rules that shall apply to its Plan.

	 	 	 	The Required Beginning Date for a Participant who is a 5% owner with respect to the
Plan Year ending in the calendar year in which the Participant attains age 701/2 is
the April 1 of the calendar year following the calendar year in which the
Participant attains age 701/2. Once distributions have begun to a 5% owner under this
paragraph, they must continue to be distributed even if the Participant ceases to be
a 5% owner in any subsequent year.
	 
	 	 	 	Unless the Employer has elected to continue to operate the provisions of the minimum
required distribution in accordance with the provisions prior to the enactment of
the SBJPA, or if elected otherwise in the Adoption Agreement or by operation of the
Plan, the Required Beginning Date for a Participant who is not a 5% owner is no
later than the April 1 of the calendar year following the later of the calendar year
in which the Participant attains age 701/2 or the calendar year in which the
Participant retires.
	 
	 	 	 	If the Employer has elected to continue under the prior provisions of the law, then
except as provided below, the Required Beginning Date is the April 1 of the calendar
year following the calendar year in which a Participant attains age 701/2.

	 	(1)	 	A Participant who:

	 	(i)	 	is not a 5% owner,
	 
	 	(ii)	 	has not had a Separation from Service,
	 
	 	 	 	had attained age 701/2 prior to 1997, and
	 
	 	 	 	had previously commenced required minimum distributions under the
distribution rules (as then in effect) may elect to discontinue
receiving

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	 	 	 	distributions under the Plan. A Participant who makes such an
election to discontinue distributions must establish a new Annuity
Starting Date when benefits recommence under the Plan. A married
Participant who is subject to the Qualified Joint and Survivor
Annuity provisions of 8.9 must obtain spousal consent to discontinue
his or her distributions if distributions are in the form of a
Qualified Joint and Survivor Annuity and to recommence benefits in a
form other than a Qualified Joint and Survivor Annuity. Any such
election will be made pursuant to the uniform and nondiscriminatory
procedures established by the Plan Administrator.

	 	 	 	A Participant who:

is not a more than 5% owner, and

had attained age 701/2 in 1997 or in a later year (or attained age 701/2
in 1996, but had not commenced required minimum distributions in
1996) may elect to postpone distribution of the required minimum
distributions until the Participant’s Required Beginning Date as
established in this paragraph. If a Participant attained age 701/2 in
1996, he or she must have elected under this paragraph to postpone
distribution by December 31, 1997. If the Participant attains age
701/2 in 1997 or later, he or she must elect to postpone distributions
under this paragraph not later than April 1 of the year following the
year in which the Participant attained age 701/2.

	 	(iii)	 	Notwithstanding the foregoing, a Participant
who is not a more than 5% owner, has not had a separation from service,
and is currently in benefit payment status because of attainment of age
701/2 in 1997 or in a later year (or attained age 701/2 in 1996) may elect
to discontinue receiving distributions under the Plan and recommence
payments by April 1 of the calendar year in which the Participant
retires. A Participant who makes such an election to discontinue
distributions must establish a new Annuity Starting Date when benefits
recommence under the Plan. A married Participant who is subject to the
Qualified Joint and Survivor Annuity provisions of paragraph 8.9 must
obtain spousal consent to discontinue his or her distributions if
distributions are in the form of a Qualified Joint and Survivor Annuity
and to recommence benefits in the form other than a Qualified Joint and
Survivor Annuity. Any such election will be made pursuant to the
uniform and nondiscriminatory procedures established by the Plan
Administrator.

	 	 	 	The Required Beginning Date for a Participant who:
	 
	 	 	 	had attained age 701/2 prior to January 1, 1998, and

	 	(ii)	 	was not a 5% owner at any time during the Plan
Year ending with or within the calendar year in which the Participant
attained age 661/2 or any subsequent Plan Year, is April 1 of the
calendar year following the calendar year in which the Participant
retires.

	 	 	 	Except as provided above, the Required Beginning Date for a Participant who
was a 5% owner at any time during the five (5) Plan Year period ending in
the calendar year in which the Participant attained age 701/2 is April 1 of
the calendar year following the calendar year in which the Participant
attained age 701/2. For a Participant who became a 5% owner during any Plan
Year after the calendar year in which the Participant attained age 701/2, the
Required Beginning Date is April 1 of the calendar year in which such
subsequent Plan Year ends.

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For purposes of this Article, the term 5% owner shall have the same meaning as the term is defined
under Code Section 416. A Participant is treated as a 5% owner under this paragraph if such
Participant is a 5% owner at any time during the Plan Year ending with or within the calendar year
the Participant attains age 701/2. Once distributions have begun to a 5% owner under this paragraph,
they must continue to be distributed even if the Participant ceases to be a 5% owner in a
subsequent year.

7.6 Transitional Rules

Notwithstanding the other requirements of this Article and subject to the
requirements of Article VIII, Joint and Survivor Annuity Requirements, distribution
on behalf of any Employee, including a 5% owner may be made in accordance with all
of the following requirements, regardless of when such distribution commences:

	 	(1)	 	the distribution by the Trust is one which would not have
disqualified such Trust under Code Section 401(a)(9) as in effect prior to
amendment by the Deficit Reduction Act of 1984,
	 
	 	(2)	 	the distribution is in accordance with a method of distribution
designated by the Participant whose interest in the Trust is being distributed
or, if the Participant is deceased, by a Beneficiary of such Participant,
	 
	 	(3)	 	such designation was in writing, was signed by the Participant
or the Beneficiary, and was made before January 1, 1984,
	 
	 	(4)	 	the Participant had accrued a benefit under the Plan as of
December 31, 1983, and
	 
	 	(5)	 	the method of distribution designated by the Participant or the
Beneficiary specifies the time at which distribution will commence, the period
over which distributions will be made, and in the case of any distribution upon
the Participant’s death, the Beneficiaries of the Participant listed in order
of priority.

	 	(b)	 	A distribution upon death will not be covered by this transitional rule unless
the information in the designation contains the required information described above
with respect to the distributions to be made upon the death of the Participant.
	 
	 	(c)	 	For any distribution which commences before January 1, 1984, but continues
after December 31, 1983, the Participant or the Beneficiary to whom such distribution
is being made, will be presumed to have designated the method of distribution under
which the distribution is being made, if the method of distribution was specified in
writing and the distribution satisfies the requirements in subparagraphs (a)(1) through
(5) above.
	 
	 	(d)	 	If a designation is revoked, any subsequent distribution must satisfy the
requirements of Code Section 401(a)(9) and the Regulations thereunder. If a
designation is revoked subsequent to the date distributions are required to begin, the
Plan must distribute by the end of the calendar year following the calendar year in
which the revocation occurs the total amount not yet distributed which would have been
required to have been distributed to satisfy Code Section 401(a)(9) and the Regulations
thereunder, but for the Code Section 242(b)(2) election of the Tax Equity and Fiscal
Responsibility Act of 1982. For calendar years beginning after 1988, such
distributions must meet the minimum distribution incidental benefit requirements in
Section 1.401(a)(9)-2 of the Income Tax Regulations. Any changes in the designation
will be considered to be a revocation of the designation. However, the mere
substitution or addition of another Beneficiary (one not named in the designation)
under the designation will not be considered to be a revocation of the designation, so
long as such substitution or addition does not alter the period over which
distributions are to be made under the designation, directly or indirectly (for
example, by altering the relevant measuring life). In the case in which an amount is
transferred or rolled over from one plan to another plan, the rules in Q&A J-2 and Q&A
J-3 of the Regulations shall apply.

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7.7 Designation Of Beneficiary

Each Participant shall file a written designation of Beneficiary with the Plan Administrator upon
qualifying for participation in this Plan. Such designation shall remain in force until revoked by
the Participant by filing a new Beneficiary designation form with the Employer. A profit-sharing
or 401(k) Plan satisfying the requirements of paragraph 8.7 requires the Beneficiary shall be the
Participant’s Spouse, if any, unless such Spouse properly consents otherwise.

7.8 Beneficiary

	 	 	 	For purposes of the Plan, a Beneficiary is the person or persons designated as such
in accordance with Code Section 401(a)(9) and the Regulations thereunder by the
Participant or by the Participant’s surviving Spouse if the Participant’s surviving
Spouse is entitled to receive distributions under the Plan. Such a designation by
the Participant’s surviving Spouse, however, shall relate solely to the
distributions to be made under the Plan after the death of both the Participant and
the surviving Spouse. A Beneficiary designation shall be communicated to the Plan
Administrator on a form or other type of communication acceptable to the Plan
Administrator for use in connection with the Plan, signed by the designating person,
and subject to the last sentence of this subparagraph (a), filed with the Plan
Administrator in accordance with this paragraph 7.8 not later than thirty (30) days
after the designating person’s death. The form may name individuals, trusts or
estates to take upon the contingency of survival and may specify or limit the manner
of distribution thereto. In the event a Participant or the Participant’s surviving
Spouse, as the case may be, fails to properly designate a Beneficiary (including, as
improper, a designation to which the Participant’s surviving Spouse did not properly
consent) or in the event that no properly designated Beneficiary survives the
Participant or the Participant’s surviving Spouse, as applicable, then the
Beneficiary of such person shall be his surviving Spouse or, if none, his issue per
stirpes or, if no issue, the Participant’s surviving parents in equal shares, or if
no surviving parents, then to the Participant’s estate.
	 
	 	 	 	The Beneficiary designation last accepted by the Plan Administrator during the
designating person’s lifetime before such distribution is to commence shall be
controlling and, whether or not fully dispositive of the vested portion of the
account of the Participant involved, thereupon shall revoke all such forms
previously filed by that person.
	 
	 	 	 	Notwithstanding subparagraph (a) of this paragraph 7.8, the designation by a married
Participant of any Beneficiary other than the Participant’s Spouse, or the change of
any such Beneficiary to a new Beneficiary other than the Participant’s Spouse, shall
not be valid unless made in writing and consented to by the Participant’s Spouse.
The Spouse’s consent to such designation must be made in the manner described in
this paragraph 7.8.
	 
	 	 	 	Any Beneficiary designation made and in effect under a Qualified Plan immediately
prior to that Plan’s amendment and continuation in the form of this Plan shall be
deemed to be a valid Beneficiary designation filed under this Plan to the extent
consistent with this Plan. If such Beneficiary designation was made with respect to
a Qualified Plan that permitted the Participant to designate without spousal consent
a Beneficiary to receive 50% of the Participant’s account balance in the event of
the Participant’s death, with respect to such Beneficiary designation under this
Plan, paragraph 7.8 shall be applied by application of 50% of the vested portion of
the Participant’s account toward the purchase of a Qualified Pre-Retirement Survivor
Annuity and the balance of the Participant’s account shall be paid to the designated
Beneficiary pursuant to the provisions of Article VIII. In such event, the amount
of Voluntary After-tax Contributions applied to the purchase of the annuity shall be
in the same proportion as the Voluntary After-tax Contributions bear to the entire
Participant’s account.

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7.9 Distribution Beginning Before Death

This paragraph is applicable only after the Participant’s Required Beginning Date as elected by the
Employer in the Adoption Agreement. If the Participant dies after distribution of his or her
interest has begun, the remaining portion of such interest will continue to be distributed at least
as rapidly as under the method of distribution being used prior to the Participant’s death.

7.10 Distribution Beginning After Death

This paragraph is applicable before the Participant’s Required Beginning Date as elected by the
Employer in the Adoption Agreement, even if distributions have commenced from the Plan. If the
Participant dies before distribution of his or her interest begins, distribution of the
Participant’s entire interest shall be completed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death, except to the extent that an election is made to
receive distributions in accordance with (a) or (b) below:

	 	 	 	if any portion of the Participant’s interest is payable to a Beneficiary,
distributions may be made over the life or over a period certain not greater than
the life expectancy of the Beneficiary commencing on or before December 31 of the
calendar year immediately following the calendar year in which the Participant died;
	 
	 	 	 	if the Beneficiary is the Participant’s surviving Spouse, the date distributions are
required to begin in accordance with (a) above shall not be earlier than the later
of (i) December 31 of the calendar year immediately following the calendar year in
which the Participant died or (ii) December 31 of the calendar year in which the
Participant would have attained age 701/2.

If the Participant has not made an election pursuant to this paragraph 7.10 by the time of his or
her death, the Participant’s Beneficiary must elect the method of distribution no later than the
earlier of (i) December 31 of the calendar year in which distributions would be required to begin
under this section, or (ii) December 31 of the calendar year which contains the fifth anniversary
of the date of death of the Participant. If the Participant has no Beneficiary, or if the
Beneficiary does not elect a method of distribution, then distribution of the Participant’s entire
interest must be completed by December 31 of the calendar year containing the fifth anniversary of
the Participant’s death. If the surviving Spouse dies after the Participant but before payments to
such Spouse begin, the provisions of this paragraph with the exception of subparagraph (b) herein,
shall be applied as if the surviving Spouse were the Participant. For the purposes of this
paragraph and paragraph 7.9, distribution of a Participant’s interest is considered to begin on the
Participant’s Required Beginning Date (or, if the preceding sentence is applicable, the date
distribution is required to begin to the Surviving Spouse). If distribution in the form of an
annuity described in paragraph 7.4(d) irrevocably commences to the Participant before the Required
Beginning Date, the date distribution is considered to begin is the date distribution actually
commences.

7.11 Distribution Of Excess Elective Deferrals

	 	(a)	 	No Participant shall be permitted to defer under this Plan with respect to a
calendar year more than the maximum dollar amount permitted under Code Section 402(g),
as indexed, for such calendar year. If a Participant defers more than the maximum
allowed due to mistake of fact, such Excess Elective Deferrals shall be distributed to
the Participant no later than April 15 following the calendar year to which the excess
is attributable. If a Participant who participates in this Plan and in another plan
which permits Elective Deferrals defers more than the Code Section 402(g) maximum, such
Participant shall have the right to notify one or both plans by March 1 of the calendar
year following the year to which the excess is attributable requesting a distribution
of the Excess Elective Deferral. A Participant is deemed to notify the Plan
Administrator of any Excess Elective Deferrals that arise by taking into account only
those Elective Deferrals made to the Plan of the Employer. If distribution is
requested, the applicable plan(s) shall make distribution of the Excess Elective
Deferrals, plus any income and minus any loss allocable thereto, no later than April 15
following the calendar year to which the excess is attributable. Excess Elective
Deferrals which are distributed on a timely basis shall not be considered Annual
Additions for the Limitation Year during which such amounts are deferred.

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	 	(b)	 	Excess Elective Deferrals shall be adjusted for any income or loss up to the
date of distribution. The income or loss allocable to Excess Elective Deferrals is the
sum of (1) income or loss allocable to the Participant’s Elective Deferral account for
the taxable year multiplied by a fraction, the numerator of which is such Participant’s
Excess Elective Deferrals for the year and the denominator is the Participant’s account
balance attributable to Elective Deferrals without regard to any income or loss
occurring during such taxable year; and (2) ten percent (10%) of the amount determined
under (1) multiplied by the number of whole calendar months between the end of the
Participant’s taxable year and the date of the distribution, counting the month of the
distribution if the distribution occurs after the fifteenth (15th) of such
month.
	 
	 	(c)	 	The amount a Participant receives as a distribution of his or her Excess
Elective Deferrals is includible in income with respect to the taxable year to which
the excess is attributable.
	 
	 	(d)	 	Any income attributable to the Excess Elective Deferrals determined in (b)
above shall be includible in income with respect to the taxable year in which the
excess is distributed.

7.12 Distribution Of Excess Contributions

	 	(a)	 	Excess Contributions plus any income and minus any loss allocable thereto,
shall be distributed to affected Participants no later than the last day of the Plan
Year following the Plan Year to which the Excess Contributions are attributable.
Excess Contributions are allocated to the Highly Compensated Employees with the largest
amounts of Employer contributions taken into account in calculating the ADP Test for
the year in which the excess arose beginning with the Highly Compensated Employee with
the largest amount of such Employer contributions and continuing in descending order
until all the Excess Contributions have been allocated. For purposes of the preceding
sentence, the “largest amount” is determined after distribution of any Excess
Contributions. If such Excess Contributions are distributed more than two and one-half
(21/2) months after the last day of the Plan Year to which the Excess Contributions are
attributable, a 10% excise tax will be imposed on the Employer maintaining the Plan
with respect to the principal amount of the excess.
	 
	 	(b)	 	Excess Contributions, including any amount recharacterized as a Voluntary
After-tax Contribution, shall be treated as Annual Additions with respect to the Plan
Year to which the excess is attributable.
	 
	 	(c)	 	Excess Contributions shall be adjusted for any income or loss up to the date of
distribution. The income or loss allocable to Excess Contributions allocated to each
Participant is the sum of (1) income or loss allocable to the Participant’s Elective
Deferral account (and, if applicable, the Qualified Nonelective Contribution Account or
the Qualified Matching Contribution Account or both) for the Plan Year multiplied by a
fraction, the numerator of which is such Participant’s Excess Contributions for the
year and the denominator is the Participant’s account balance attributable to Elective
Deferrals (and Qualified Nonelective Contributions or Qualified Matching Contributions,
or both, if any of such contributions are included in the ADP test) without regard to
any income or loss occurring during such Plan Year; and (2) ten percent (10%) of the
amount determined under (1) multiplied by the number of whole calendar months between
the end of the Plan Year and the date of distribution, counting the month of
distribution if the distribution occurs after the fifteenth (15th) of such
month.
	 
	 	(d)	 	Excess Contributions shall be distributed from the Participant’s Elective
Deferral account and Qualified Matching Contribution account (if applicable) in
proportion to the Participant’s Elective Deferrals and Qualified Matching Contributions
(to the extent used in the ADP Test) for the test year. Excess Contributions shall be
distributed from the Participant’s Qualified Non-Elective Contribution account only to
the extent that such Excess Contributions exceed the Participant’s Elective Deferrals
and Qualified Matching Contributions account for the applicable test year.

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	 	(e)	 	The return of an Excess Contribution under a Plan established under a
Davis-Bacon Adoption Agreement will be reported as additional wages paid to the
affected Participant.

7.13 Distribution Of Excess Aggregate Contributions

	 	(a)	 	Notwithstanding any other provisions of this Plan, Excess Aggregate
Contributions, plus any income and minus any loss allocable thereto, shall be
forfeited, if forfeitable or if not forfeitable, distributed no later than the last day
of each Plan Year to Participants to whose accounts such Excess Aggregate Contributions
were allocated for the preceding Plan Year. Excess Aggregate Contributions are
allocated to the Highly Compensated Employees with the largest Contribution Percentage
Amounts taken into account in calculating the ACP test for the year in which the excess
arose, beginning with the Highly Compensated Employee with the largest amount of such
Contribution Percentage and continuing in descending order until all the Excess
Aggregate Contributions have been allocated. For purposes of the preceding sentence,
the “largest amount” is determined after distribution of any Excess Aggregate
Contributions.
	 
	 	(b)	 	If such Excess Aggregate Contributions are distributed more than two and
one-half (21/2) months after the last day of the Plan Year in which such excess amount
arose, a 10% excise tax will be imposed on the Employer maintaining the Plan with
respect to those amounts. Excess Aggregate Contributions shall be treated as Annual
Additions for purposes of Article X, Limitations On Allocations.
	 
	 	(c)	 	Excess Aggregate Contributions shall be adjusted for any income or loss up to
the date of the distribution. The income or loss allocable to the Excess Aggregate
Contributions allocated to each Participant is the sum of (1) income or loss allocable
to each Participant’s Employee Contribution account, Matching Contribution account,
Qualified Matching Contribution account (if any, and if all amounts therein are not
used in the ADP test) and, if applicable, Qualified Nonelective Contribution account
and the Elective Deferral account of the Plan Year multiplied by a fraction, the
numerator of which is such Participant’s Excess Aggregate Contributions for the year
end the denominator is the Participant’s account balance(s) attributable to
Contribution Percentage amounts without regard to any income or loss occurring during
such Plan Year; and (2) ten percent (10%) of the amount determined under (1) multiplied
by the number of whole calendar months between the end of the Plan Year and the date of
distribution, counting the month of distribution if distribution occurs after the
fifteenth (15th) of such month.
	 
	 	(d)	 	Excess Aggregate Contributions shall be forfeited if forfeitable, or
distributed on a pro-rata basis, from the Participant’s Voluntary After-tax
Contribution account, Required After-tax Contribution account, Matching Contribution
account and Qualified Matching Contribution account (and if applicable the
Participant’s Qualified Matching Contribution account, and/or Elective Deferral
account, or both).
	 
	 	(e)	 	Forfeitures of Excess Aggregate Contributions may be reallocated to the
accounts of other Participants or applied to reduce Employer contributions, or as
otherwise elected by the Employer in the Adoption Agreement.

7.14 Distributions To Minors And Individuals Who Are Legally Incompetent 

Benefits payable to either a minor or an individual who has been declared legally incompetent shall
be paid, at the direction of the conservator appointed either under a court order or applicable
state law which permits such an individual to be a guardian for the benefit of said minor or
incompetent.

7.15 Unclaimed Benefits

	 	(a)	 	If elected on the Adoption Agreement, the default form of payment will be a
direct rollover into an individual retirement account or annuity for any cash out
distribution of amounts greater than $1,000 but less than or equal to $5,000 made
pursuant to Code Sections 411(a)(7), 411(a)(11) and 417(e)(1). If an individual
retirement account or annuity is established, no amounts contributed to

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	 	 	 	these accounts may be forfeited under the Plan.
	 
	 	(b)	 	The Plan Administrator shall notify Participants or Beneficiaries by certified
or registered mail sent to his or her last known address of record with the Employer
when their benefits become distributable as provided at paragraph 6.11 hereof. If a
Participant or Beneficiary does not respond to the notice within ninety (90) days of
the date of the notice, the Plan Administrator may take reasonable steps to locate the
Participant or Beneficiary including, but not limited to, requesting assistance from
the Employer, Employees, Social Security Administration and/or the Internal Revenue
Service.
	 
	 	(c)	 	If the Participant cannot be located after a period of twelve (12) months, or
such other period determined in a uniform and nondiscriminatory manner by the Plan
Administrator, the Plan Administrator shall treat the benefit as a forfeiture pursuant
to paragraph 9.8. The forfeiture provisions of this subparagraph 7.15(c) apply only to
the Participant’s or Beneficiary’s account balance which is less than $5,000. If the
Employer does not make a contribution for the Plan Year during which the forfeiture
takes place, such amount shall first be applied to pay Plan expenses and, if there are
no such expenses, it shall then be allocated to eligible Participant accounts as if the
amount were the Employer’s contribution for such Plan Year.
	 
	 	(d)	 	If a Participant or Beneficiary later makes a claim for such benefit, the Plan
Administrator shall validate such claim and provide the Participant or Beneficiary with
all notices and other information necessary for the Participant or Beneficiary to
perfect the claim. If the Plan Administrator validates the claim for benefits, the
Participant’s account balance shall be restored to the benefit amount treated as a
forfeiture. Such benefit shall not be adjusted for investment earnings or losses
during the period beginning on the date of forfeiture and ending on the date of
restoration. The funds necessary to restore the Participant’s account will first be
taken from amounts eligible for reallocation or other disposition as forfeitures with
respect to the Plan Year. If such funds do not exist or if such funds are
insufficient, the Employer will make a contribution prior to the date on which the
benefit is payable to restore such Participant’s account. Such benefit shall be paid
or commence to be paid in the same manner as if the benefit was eligible for
distribution on the date the claim for benefit is validated.
	 
	 	(e)	 	The Plan Administrator shall follow the same procedure in locating and
subsequently treating as a forfeiture the benefit of a Participant or Beneficiary whose
benefit has been properly paid under Plan terms but where the Participant or
Beneficiary has not negotiated the benefit check(s).
	 
	 	(f)	 	Notwithstanding the foregoing, the Plan Administrator in his discretion may
establish alternative procedures for locating and administering the benefits of missing
Plan Participants.

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ARTICLE VIII

JOINT AND SURVIVOR ANNUITY REQUIREMENTS

8.1 Applicability Of Provisions

The provisions of this Article shall apply to any Participant who is credited with at least one (1)
Hour of Service with the Employer and such other Participants as provided in paragraph 8.8.

8.2 Payment Of Qualified Joint And Survivor Annuity

Unless an optional form of benefit is selected pursuant to a Qualified Election within the ninety
(90) day period ending on the Annuity Starting Date, a Participant’s Vested Account Balance will be
paid in the form of a Qualified Joint and Survivor Annuity. For this purpose, a Qualified Joint
and Survivor Annuity with respect to an unmarried Participant’s Vested Account Balance will be paid
in the form of a straight life annuity. A straight life annuity means an annuity payable in equal
installments for the life of the Participant that terminates upon the Participant’s death. The
Participant may elect to have such annuity distributed upon attainment of the Early Retirement Age
under the Plan, if any.

8.3 Payment Of Qualified Pre-Retirement Survivor Annuity

Unless an optional form of benefit has been elected within the Election Period pursuant to a
Qualified Election, if a Participant dies before benefits have commenced then the Participant’s
Vested Account Balance shall be paid in the form of a life annuity for the life of the surviving
Spouse. The surviving Spouse may elect to have such annuity distributed within a reasonable period
after the Participant’s death. If no election has been made within the Election Period prior to
the Participant’s death, the surviving Spouse shall have the right to select an optional form of
benefit after the Participant’s death. Such election will only be permitted if the surviving
Spouse is provided with a notice similar to that required under paragraph 8.5 except that the
notice will be modified to explain a life annuity rather than a Qualified Joint and Survivor
Annuity.

A Participant who does not meet the age thirty-five (35) requirement set forth in the Election
Period as of the end of any current Plan Year may make a special qualified election to waive the
Qualified Pre-Retirement Survivor Annuity for the period beginning on the date of such election and
ending on the first day of the Plan Year in which the Participant will attain age thirty-five (35).
Such election shall not be valid unless the Participant receives a written explanation of the
Qualified Pre-Retirement Survivor Annuity in such terms as are comparable to the explanation
required under paragraph 8.5. Qualified Pre-Retirement Survivor Annuity coverage will be
automatically reinstated as of the first day of the Plan Year in which the Participant attains age
thirty-five (35). Any new waiver on or after such date shall be subject to the full requirements
of this Article.

8.4 Qualified Election

A Qualified Election is an election to either waive a Qualified Joint and Survivor Annuity or a
Qualified Pre-Retirement Survivor Annuity. Any such election shall not be effective unless:

the Participant’s Spouse consents in writing to the election,

the election designates a specific Beneficiary, including any class of Beneficiaries
or any contingent Beneficiaries, which may not be changed without spousal consent
unless the Spouse expressly permits designations by the Participant without any
further spousal consent,

the Spouse’s consent acknowledges the effect of the election, and

the Spouse’s consent is witnessed by a Plan representative or notary public.

A Participant’s waiver of the Qualified Joint and Survivor Annuity shall not be effective unless
the election designates a form of benefit payment which may not be changed without spousal consent
unless the Spouse expressly permits designations by the Participant without any further spousal
consent. If it is established to the satisfaction of the Plan Administrator that the Participant
is unmarried or that the Spouse cannot be located, a waiver will be deemed a Qualified Election.
Any consent by a Spouse obtained under this provision (or establishment that

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the consent of a Spouse cannot be obtained) shall be effective only with respect to such Spouse. A
consent that permits designations by the Participant without any requirement of further consent by
such Spouse must acknowledge that the Spouse has the right to limit consent to a specific
Beneficiary, and a specific form of benefit where applicable, and that the Spouse voluntarily
elects to relinquish either or both of such rights. A revocation of a prior waiver may be made by
a Participant without the consent of the Spouse at any time before the commencement of benefits.
The number of revocations shall not be limited. No consent obtained under this provision shall be
valid unless the Participant has received notice as provided in paragraphs 8.5 and 8.6 below.

8.5 Notice Requirements For Qualified Joint And Survivor Annuity

In the case of a Qualified Joint and Survivor Annuity, the Plan Administrator shall, no less than
thirty (30) days and no more than ninety (90) days prior to the Annuity Starting Date, provide each
Participant a written explanation of:

the terms and conditions of a Qualified Joint and Survivor Annuity,

the Participant’s right to make and the effect of an election to waive the Qualified
Joint and Survivor Annuity form of benefit,

the rights of a Participant’s Spouse, and

the right to make and the effect of a revocation of a previous election to waive the
Qualified Joint and Survivor Annuity.

The Annuity Starting Date may be less than thirty (30) days after and may be before receipt of the
written explanation described in the preceding paragraph provided that:

the Plan Administrator clearly informs the Participant and the Participant’s Spouse
that they have a right to a period of at least thirty (30) days after receiving the
notice to consider the decision of whether to waive the Qualified Joint and Survivor
Annuity and elect (with spousal consent) a form of distribution other than a
Qualified Joint and Survivor Annuity; and

the Participant is permitted to revoke any affirmative distribution election at
least until the Annuity Starting Date or, if later, at any time prior to the
expiration to the seven (7) day period that begins the day after the explanation of
the Qualified Joint and Survivor Annuity is provided to the Participant.

8.6 Notice Requirements For Qualified Pre-Retirement Survivor Annuity

In the case of a Qualified Pre-Retirement Survivor Annuity as described in paragraph 8.3, the Plan
Administrator shall provide each Participant within the applicable period for such Participant a
written explanation of the Qualified Pre-Retirement Survivor Annuity in such terms and in such
manner as would be comparable to the explanation provided for meeting the requirements of paragraph
8.5 applicable to a Qualified Joint and Survivor Annuity. The applicable period for a Participant
is whichever of the following periods ends at the latest date:

	 	(a)	 	the period beginning with the first day of the Plan Year in which the
Participant attains age thirty-two (32) and ending with the close of the Plan Year
preceding the Plan Year in which the Participant attains age thirty-five (35),
	 
	 	(b)	 	a reasonable period ending after the individual becomes a Participant, or
	 
	 	(c)	 	a reasonable period ending after this article first applies to the Participant.
	 
	 	(d)	 	Notwithstanding the foregoing, notice must be provided within a reasonable
period ending after separation from Service in the case of a Participant who separates
from Service before attaining age thirty-five (35). If such a Participant subsequently
returns to employment with the Employer, the applicable period for such Participant
shall be redetermined.

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For purposes of applying the preceding paragraph, a reasonable period ending after the events
described in (b) and (c) is the end of the two (2) year period beginning one (1) year prior to the
date the applicable event occurs, and ending one (1) year after that date. In the case of a
Participant who separates form Service before the Plan Year in which age thirty-five (35) is
attained, notice shall be provided within the two (2) year period beginning one (1) year prior to
separation and ending one (1) year after separation.

8.7 Special Safe Harbor Exception For Certain Profit-Sharing Or 401(k) Plans

This paragraph shall apply to a Participant in a profit-sharing or 401(k) plan, and to any
distribution, made on or after the first day of the first Plan Year beginning after 1988, from or
under a separate account attributable solely to Qualified Voluntary Contributions, as maintained on
behalf of a Participant in a money purchase pension plan or target benefit plan, if the following
conditions are satisfied:

the Participant does not elect payments in the form of a life annuity, and

on the death of a Participant, the Participant’s Vested Account Balance will be paid
to the Participant’s Surviving Spouse, but if there is no surviving Spouse, or if
the Surviving Spouse has consented to, in a manner conforming to a Qualified
Election, then to the Participant’s Beneficiary.

The surviving Spouse may elect to have distribution of the Vested Account Balance
commence within the ninety (90) day period following the date of the Participant’s
death. The account balance shall be adjusted for gains or losses occurring after
the Participant’s death in accordance with the provisions of the Plan governing the
adjustment of account balances for other types of distributions.

	 	(d)	 	If a Plan is otherwise exempt from the Qualified Joint and Survivor Annuity
requirements, the Qualified Joint and Survivor Annuity requirements are not triggered
unless the Participant in the Plan actually elects a life annuity as a distribution
option.
	 
	 	(e)	 	These safe harbor rules shall not be applicable to a Participant in a
profit-sharing or 401(k) plan if the Plan is the recipient of a merger of assets from a
plan which was subject to the survivor annuity requirements of Code Sections 401(a)(11)
and 417, and would therefore have a Qualified Joint and Survivor Annuity as its normal
form of benefit, unless separate accounts or separate accounting was monitored for the
assets of the merged plan.
	 
	 	(f)	 	Money purchase and target benefit plans are required to include the Qualified
Joint and Survivor Annuity option. These Plans may eliminate any periodic payment
options that are not required by the Qualified Joint and Survivor Annuity rules such as
installment payments.
	 
	 	(g)	 	The Participant may waive the spousal death benefit described in this paragraph
at any time provided that no such waiver shall be effective unless it satisfies the
conditions (described in paragraph 8.4) that would apply to the Participant’s waiver of
the Qualified Pre-Retirement Survivor Annuity.
	 
	 	(h)	 	Profit Sharing Plans satisfying all of the requirements of this paragraph for a
Participant such that the Plan is not required to provide a Qualified Joint and
Survivor Annuity for the Participant, but that do provide such annuity (even if the
annuity is the normal form), may replace the Qualified Joint and Survivor Annuity with
payment in a single-sum distribution form that is otherwise identical to such annuity
in accordance with the requirements under the Regulations Section 1.411(d)-4.
	 
	 	(i)	 	If this paragraph 8.7 is operative, then all other provisions of this Article
VIII other than paragraph 8.8 are inoperative.

8.8 Transitional Joint And Survivor Annuity Rules

Special transitional rules apply to Participants who were not receiving benefits on August 23,
1984.

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Any living Participant not receiving benefits on August 23, 1984, who would
otherwise not receive the benefits prescribed by the previous paragraphs of this
Article, must be given the opportunity to elect to have the prior paragraphs of this
Article apply if such Participant is credited with at least one (1) Hour of Service
under this Plan or a predecessor Plan in a Plan Year beginning on or after January
1, 1976, and such Participant had at least ten (10) Years of Service for vesting
purposes when he or she separated from Service.

Any living Participant not receiving benefits on August 23, 1984, who was credited
with at least one (1) Hour of Service under this Plan or a predecessor plan on or
after September 2, 1974, and who is not otherwise credited with any Service in a
Plan Year beginning on or after January 1, 1976, must be given the opportunity to
have his or her benefits paid in accordance with paragraph 8.9.

The respective opportunities to elect [as described in (a) and (b) above] must be
afforded to the appropriate Participants during the period commencing on August 23,
1984, and ending on the date benefits would otherwise commence to said Participants.

8.9 Automatic Joint And Survivor Annuity And Early Survivor Annuity

Any Participant who has elected pursuant to paragraph 8.8(b) and any Participant who does not elect
under paragraph 8.8(a) or who meets the requirements of paragraph 8.8(a), except that such
Participant does not have at least ten (10) years of vesting Service when he or she separates from
Service, shall have his or her benefits distributed in accordance with all of the following
requirements if benefits would have been payable in the form of a life annuity in accordance with
all of the following requirements:

	 	(a)	 	If benefits in the form of a life annuity become payable to a married Participant who:

	 	(1)	 	begins to receive payments under the Plan on or after Normal
Retirement Age, or
	 
	 	(2)	 	dies on or after Normal Retirement Age while still working for
the Employer, or
	 
	 	(3)	 	begins to receive payments on or after the Qualified Early
Retirement Age, or
	 
	 	(4)	 	separates from Service on or after attaining Normal Retirement
Age (or the Qualified Early Retirement Age) and after satisfying the
eligibility requirements for the payment of benefits under the Plan and
thereafter dies before beginning to receive such benefits, such benefits will
be received under this Plan in the form of a Qualified Joint and Survivor
Annuity, unless the Participant has elected otherwise during the Election
Period. The Election Period must begin at least six (6) months before the
Participant attains Qualified Early Retirement Age and end not more than ninety
(90) days before the commencement of benefits. Any election will be in writing
and may be changed by the Participant at any time.

	 	(b)	 	A Participant who is employed after attaining the Qualified Early Retirement
Age will be given the opportunity to elect, during the Election Period, to have a
survivor annuity payable on death. If the Participant elects the survivor annuity,
payments under such annuity must not be less than the payments which would have been
made to the Spouse under the Qualified Joint and Survivor Annuity if the Participant
had retired on the day before his or her death. Any election under this provision will
be in writing and may be changed by the Participant at any time. The Election Period
begins on the later of:

	 	(1)	 	the ninetieth day before the Participant attains the Qualified
Early Retirement Age, or
	 
	 	(2)	 	the date on which participation begins, and ends on the date
the Participant terminates employment.

For purposes of this paragraph 8.9, Qualified Early Retirement Age is defined at paragraph 1.80 herein.

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8.10 Annuity Contracts

Any annuity contract distributed under this Plan must be nontransferable. The terms of any annuity
contract purchased and distributed by the Plan to a Participant or Spouse shall comply with the
requirements of this Plan.

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ARTICLE IX

VESTING

9.1 Employee Contributions

A Participant shall always have a 100% vested and nonforfeitable interest in his or her Elective
Deferrals, Voluntary After-tax Contributions, Qualified Voluntary Contributions, Required After-tax
Contributions, Qualified Non-Elective Contributions, Safe Harbor Matching Contributions, Safe
Harbor Non-Elective Contributions, SIMPLE 401(k), Qualified Matching Contributions, Rollover and
Transfer Contributions plus the earnings thereon. No forfeiture of Employer contributions
(including any minimum contributions made under paragraph 15.2) will occur solely as a result of a
Participant’s withdrawal of any Employee contributions.

9.2 Employer Contributions

A Participant shall acquire a vested and nonforfeitable interest in his or her account attributable
to Employer contributions in accordance with the schedule selected in the Adoption Agreement,
provided that if a Participant is not already fully vested, he or she shall become so upon
attaining Normal Retirement Age, Early Retirement Age, on death prior to normal retirement
(provided the Participant has not terminated employment prior to death), on retirement due to
Disability, or on termination of the Plan. Any contributions made on behalf of a Participant with
a Disability within the meaning of Code Section 22(e)(3) at the election of the Employer must be
fully vested when made.

9.3 Vesting Of Employer Contributions In A SIMPLE 401(k) Plan

A Participant shall have a 100% vested and nonforfeitable interest in his or her account
attributable to any Employer contributions made under a SIMPLE 401(k) Plan.

9.4 Computation Period

A period used for determining Years of Service and Breaks in Service used in calculating the
vesting of a Participant. A Year of Service means any twelve (12) consecutive month vesting
computation period as elected in the Adoption Agreement during which an Employee completes the
number of Hours of Service [not to exceed one-thousand (1,000)] as specified in the Adoption
Agreement. If the Plan utilizes the Elapsed Time method of crediting Service, a vesting
computation period for which the Employee receives credit for a Year of Service will be determined
under the Service crediting rules of paragraph 1.117.

9.5 Requalification Prior To Five Consecutive One-Year Breaks In Service

Subject to Article VI, the account balance of a Participant who is re-employed prior to incurring
five (5) consecutive one (1) year Breaks in Service or Periods of Severance shall consist of any
undistributed amount in his or her account as of the date of re-employment plus any future
contributions added to such account plus the investment earnings on the account. The Vested
Account Balance of such Participant shall be determined by multiplying the Participant’s account
balance (adjusted to include any distribution or redeposit made under paragraph 6.3) by such
Participant’s vested percentage. All Service of the Participant, both prior to and following the
break, shall be counted when computing the Participant’s vested percentage.

9.6 Requalification After Five Consecutive One-Year Breaks In Service

Subject to Article VI, if a Participant was not fully vested prior to termination of employment and
is re-employed after incurring five (5) consecutive one (1) year Breaks in Service or Periods of
Severance, a new account shall be established for such Participant to separate his or her deferred
vested and nonforfeitable account, if any, from the account to which new allocations will be made.
The Participant’s deferred account to the extent remaining shall be fully vested and shall continue
to share in earnings and losses of the Trust. When computing the Participant’s vested portion of
the new account, all pre-break and post-break Service shall be counted. However, notwithstanding
this provision, no such former Participant who has had five (5) consecutive one (1) year Breaks in
Service or Periods of Severance shall acquire a larger vested and nonforfeitable interest in his or
her prior account balance as a result of requalification hereunder.

9.7 Calculating Vested Interest

A Participant’s vested and nonforfeitable interest, as determined by the Plan Administrator shall
be calculated by multiplying the fair market value of his or her account attributable to Employer
contributions on the Valuation Date concurrent with or preceding distribution by the decimal
equivalent of the vested percentage as of his or her termination date. The amount attributable to
Employer contributions for purposes of the calculation includes

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amounts previously paid out pursuant to paragraph 6.3 and not repaid. The Participant’s vested and
nonforfeitable interest, once calculated above, shall be reduced to reflect those amounts
previously paid out to the Participant and not repaid by the Participant. The Participant’s vested
and nonforfeitable interest so determined shall continue to share in the investment earnings and
any increase or decrease in the fair market value of the Trust up to the Valuation Date preceding
or coinciding with payment.

9.8 Forfeitures

Any balance in the account of a Participant who has separated from Service to which he or she is
not entitled under the foregoing provisions, shall be forfeited and applied as provided in the
Adoption Agreement, or in accordance with a uniform and nondiscriminatory policy established by the
Plan Administrator. The reallocation or other disposition of a nonvested benefit may only occur if
the Participant has received payment of his or her entire vested benefit from the Plan, if the
Participant has incurred five (5) consecutive one (1) year Breaks in Service or a deemed cash-out
has occurred. A Participant who is zero (0) percent vested will have a deemed cash-out distribution
on the date of the Participant’s Separation from Service and will not be entitled to an allocation
of any forfeitures (if reallocated) of any portion of his account balance or of any other
Participant who has terminated Service in the same or prior Plan Year. While awaiting reallocation
or other disposition, the Plan Administrator or his designate, if applicable, shall have the right
to leave the nonvested benefit in the Participant’s account or may transfer the nonvested benefit
to a forfeiture suspense account. Amounts held in a forfeiture suspense account may share in any
increase or decrease in fair market value of the assets of the Trust in accordance with Article V
of the Plan. Such determination shall be made by the Plan Administrator or his designate, if
applicable. If a Participant’s account balance is forfeited prior to five consecutive one-year
Breaks in Service, the amount necessary to restore the account balance to a Participant will be
obtained from one of the following sources; current Plan Year’s forfeitures, an additional Employer
contribution, or earnings on investments for the applicable Plan Year, as determined by the Plan
Administrator. For purposes of this paragraph, if the value of a Participant’s Vested Account
Balance is zero, the Participant shall be deemed to have received a distribution of such Vested
Account Balance. A Highly Compensated Employee’s Matching Contributions may be forfeited, even if
vested, if the contributions to which they relate are Excess Deferrals, Excess Contributions or
Excess Aggregate Contributions. Benefits with respect to Participants who cannot be located as
provided at paragraph 7.15 hereof will be treated in the same manner as a forfeiture.

9.9 Amendment Of Vesting Schedule

No amendment to the Plan shall have the effect of decreasing a Participant’s Vested Account Balance
determined without regard to such amendment as of the later of the date such amendment is adopted
or the date it becomes effective. Further, if the vesting schedule of the Plan is amended, or the
Plan is amended in any way that directly or indirectly affects the computation of any Participant’s
nonforfeitable percentage or if the Plan is deemed amended by an automatic change to or from a
Top-Heavy vesting schedule, each Participant with at least three (3) Years of Service with the
Employer may elect, during the election period defined herein, to have his or her nonforfeitable
percentage computed under the Plan without regard to such amendment. For Participants who do not
have at least one (1) Hour of Service in any Plan Year beginning after 1988, the preceding sentence
shall be applied by substituting “five (5) Years of Service” for “three (3) Years of Service” where
such language appears. The period during which the election may be made shall commence with the
date the amendment is adopted and shall end on the later of:

	 	(a)	 	sixty (60) days after the amendment is adopted,
	 
	 	(b)	 	sixty (60) days after the amendment becomes effective, or

sixty (60) days after the Participant is issued written notice of the amendment by
the Employer or the Trustee.

If the Trustee notifies the Participants involved, the Plan may be charged for the costs thereof.

No amendment to the Plan shall be effective to the extent that it has the effect of decreasing a
Participant’s accrued benefit. Notwithstanding the preceding sentence, a Participant’s account
balance may be reduced to the extent permitted under Code Section 412(c)(8) relating to financial
hardships. For purposes of this paragraph, a Plan

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amendment which has the effect of decreasing a Participant’s account balance with respect to
benefits attributable to Service before the amendment, shall be treated as reducing an accrued
benefit.

Furthermore, if the vesting schedule of a 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 the percentage computed under the Plan without regard to such
amendment.

No amendment to the Plan shall be effective to eliminate or restrict an optional form of benefit.
The preceding sentence shall not apply to a Plan amendment that eliminates or restricts the ability
of a Participant to receive payment of his or her account balance under a particular form of
benefit if the amendment satisfies the conditions in (d) or (e) below:

	 	(d)	 	The amendment provides a single sum distribution form that is otherwise
identical to the optional form of benefit restricted. For purposes of this condition,
a single-sum distribution form is otherwise identical only if it is identical in all
respects to the eliminated or restricted optional form of benefit (or would be
identical except that it provides greater rights to the Participant) except with
respect to the timing of payments after commencement.
	 
	 	(e)	 	The amendment is not effective unless it provides that the amendment shall not
apply to any distribution with an Annuity Starting Date earlier than the earlier of (i)
the ninetieth (90th) day after the date the Participant receiving the
distribution has been furnished a summary that reflects the amendment and that
satisfies the ERISA requirements at 29 CFR 2520.104b-3 relating to a summary of
material modifications or (ii) the first day of the second Plan Year following the Plan
Year in which the amendment is adopted.

9.10 Service With Controlled Groups

All Years of Service with all members of a controlled group of corporations [as defined in Code
Section 414(b) as modified by Code Section 415(h)], all commonly controlled trades or businesses
[as defined in Code Section 414(c) as modified by Code Section 415(h)], or members of an affiliated
service group [as defined in Code Section 414(m)] of which the Employer is a part, and any other
entity required to be aggregated with the Employer pursuant to Regulations under Code Section
414(o), shall be considered for purposes of determining a Participant’s nonforfeitable percentage.

9.11 Compliance With Uniformed Services Employment And Reemployment Rights Act Of 1994

Notwithstanding any provision of this Plan to the contrary, Years of Service for vesting will be
credited to Participants with respect to periods of qualified military service as provided in Code
Section 414(u).

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ARTICLE X

LIMITATIONS ON ALLOCATIONS

10.1 Participation In This Plan Only

If the Participant does not participate in and has never participated in another Qualified Plan, a
Welfare Benefit Fund, individual medical account as defined in Code Section 415(l)(2), or a
Simplified Employee Pension Plan maintained by the adopting Employer, which provides an Annual
Addition, the amount of Annual Additions which may be credited to the Participant’s account for any
Limitation Year will not exceed the lesser of the Maximum Permissible Amount or any other
limitation contained in this Plan. If the Employer contribution that would otherwise be
contributed or allocated to the Participant’s account would cause the Annual Additions for the
Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or allocated will
be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Permissible
Amount. Prior to determining the Participant’s actual Compensation for the Limitation Year, the
Employer may determine the Maximum Permissible Amount for a Participant on the basis of a
reasonable estimate of the Participant’s Compensation for the Limitation Year, uniformly determined
for all Participants similarly situated. As soon as is administratively feasible after the end of
the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on
the basis of the Participant’s actual Compensation for the Limitation Year.

10.2 Disposition Of Excess Annual Additions

If there is an Excess Annual Addition due to an error in estimating a Participant’s Compensation
for a Limitation Year under paragraph 10.1, an error in estimating the amount of Elective Deferrals
of the Participant, or as a result of the allocation of forfeitures, the excess will be distributed
to the affected Participant in the order which follows:

Any Voluntary or Required After-tax Contributions plus the investment earnings
thereon, to the extent they would reduce the excess, shall be returned to the
Participant.

Simultaneously, with the return of any Voluntary or Required After-tax Contributions
(plus attributable earnings), any associated Employer Matching Contribution(s) plus
the investment earnings thereon that relate to the returned Voluntary or Required
After-tax Contributions, to the extent they would reduce the excess, will be held
either unallocated in a suspense account or forfeited in accordance with the
“spillover method” as elected in the Adoption Agreement.

	 	(c)	 	Elective Deferrals plus the investment earnings thereon shall be returned to
the Participant to the extent they would reduce the excess.
	 
	 	(d)	 	Simultaneously with the return of the Elective Deferrals (plus attributable
earnings), any associated Employer Matching Contribution(s) plus the investment
earnings thereon that relate to the returned Elective Deferrals, to the extent they
would reduce the excess, will be either held unallocated in a suspense account or
forfeited in accordance with the “spillover method” as elected in the Adoption
Agreement.
	 
	 	(e)	 	If, after the application of subparagraphs (a) through (d), an excess still
exists, the excess will be held either unallocated in a suspense account or forfeited
in accordance with the “spillover method” as elected in the Adoption Agreement.
	 
	 	(f)	 	When the suspense account method is used, and the Participant is not covered by
the Plan at the end of the Limitation Year, the Plan Administrator will apply the
suspense account to reduce future Employer contributions for all remaining Participants
in the next Limitation Year, and each succeeding Limitation Year until the Excess
Annual Addition is eliminated. If a suspense account is in existence at any time during
a Limitation Year, all amounts in the suspense account must be allocated to Participant
accounts before any Employer contributions or any Employee contributions may be made to
the Plan for that Limitation Year. If a suspense account is in

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existence at any time during a Limitation Year pursuant to this paragraph, it
will not participate in the allocation of investment gains or losses.

10.3 Participation In Multiple Defined Contribution Plans

The Annual Additions which may be credited to a Participant’s account under this Plan for any
Limitation Year will not exceed the Maximum Permissible Amount. With respect to this Plan, the
Maximum Permissible Amount is reduced by the Annual Additions credited to a Participant’s account
under any other qualified Master or Prototype Defined Contribution plans, Welfare Benefit funds,
individual medical accounts as defined in Code Section 415(l)(2), and Simplified Employee Pension
Plans maintained by the Employer, which provide an Annual Addition for the same Limitation Year.
If the Annual Additions with respect to the Participant under other Defined Contribution Plans,
Welfare Benefit funds, individual medical accounts and Simplified Employee Pension Plans maintained
by the Employer are less than the Maximum Permissible Amount and the Employer contribution that
would otherwise be contributed or allocated to the Participant’s account under this Plan would
cause the Annual Additions for the Limitation Year to exceed this limitation, the amount
contributed or allocated under this Plan will be reduced so that the Annual Additions under all
such plans and funds for the Limitation Year will equal the Maximum Permissible Amount. If the
Annual Additions with respect to the Participant under such other Defined Contribution Plans and
Welfare Benefit funds in the aggregate are equal to or greater than the Maximum Permissible Amount,
no amount will be contributed or allocated to the Participant’s account under this Plan for the
Limitation Year. Prior to determining the Participant’s actual Compensation for the Limitation
Year, the Employer may determine the Maximum Permissible Amount for a Participant in the manner
described in paragraph 10.1. As soon as administratively feasible after the end of the Limitation
Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the
Participant’s actual Compensation for the Limitation Year. If the Participant is covered under
another qualified Defined Contribution Plan maintained by the Employer which is not a Master or
Prototype Plan, Annual Additions which may be credited to the Participant’s account under this Plan
for any Limitation Year will be limited in accordance with this paragraph as though the other plan
were a Master or Prototype Plan unless the Employer specifies other limitations in the Adoption
Agreement.

10.4 Disposition Of Excess Annual Additions Under Two Plans

If a Participant’s Annual Additions under this Plan and such other plans as described in the
preceding paragraph would result in an Excess Annual Additions for a Limitation Year due to an
error in estimating a Participant’s Compensation for a Limitation Year under paragraph 10.3 or as a
result of forfeitures, the Excess Annual Additions will be deemed to consist of the Annual
Additions last allocated except that Annual Additions attributable to a Simplified Employee Pension
Plan will be deemed to have been allocated first and then Annual Additions to a Welfare Benefit
Fund or individual medical account as defined in Code Section 415(l)(2) will be deemed to have been
allocated next regardless of the actual Allocation Date. If an Excess Annual Addition was
allocated to a Participant on a Valuation or Allocation Date of this Plan which coincides with a
valuation or allocation date of another plan, the Excess Annual Additions attributed to this Plan
will be the product of:

the total Excess Annual Additions allocated as of such date, times

the ratio of:

	 	(1)	 	the Annual Additions allocated to the Participant for the
Limitation Year as of such date under this Plan, to
	 
	 	(2)	 	the total Annual Additions allocated to the Participant for the
Limitation Year as of such date under this and all the other qualified Master
or Prototype Defined Contribution Plans.

Any Excess Annual Additions attributed to this Plan will be disposed of in the manner described in
paragraph 10.2.

10.5 Participation In This Plan And A Defined Benefit Plan

If the Employer maintains, or at any time maintained, a qualified Defined Benefit Plan (other than
Paired Plan #02001 or #02002) covering any Participant in this Plan, the sum of the Participant’s
Defined Benefit Plan Fraction and Defined Contribution Plan Fraction will not exceed 1.0 in any
Limitation Year. For any Plan Year during which the Plan is Top-Heavy, the Defined Benefit and
Defined Contribution Plan Fractions shall be calculated in accordance with Code Section 416(h).
The Annual Additions which may be credited to the Participant’s account

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under this Plan for any Limitation Year will be limited in accordance with the Adoption Agreement.
This paragraph does not apply for Limitation Years beginning on or after January 1, 2000.

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ARTICLE XI

ANTIDISCRIMINATION TESTING

11.1 General Testing Requirements

With respect to each Plan Year, an Employer’s Plan which offers a Code Section 401(k) cash or
deferred arrangement and any contributions made thereunder must satisfy the Average Deferral
Percentage Test (“ADP Test”) and, if applicable, the Average Contribution Percentage Test (“ACP
Test”). Under each of these tests, the Average Deferral Percentage (ADP) and the Average
Contribution Percentage (ACP) for Highly Compensated Employees may not exceed the ADP and ACP for
Non-Highly Compensated Employees by more than the amount permitted by application of the basic
limit or the alternative limit. These limits are described at paragraphs 11.2 and 11.6 herein. If
the ADP or ACP for Highly Compensated Employees exceeds the basic limit or the alternative limit,
the applicable average for Highly Compensated Employees either must be reduced to the maximum
permitted under the most liberal limit or the average of the Non-Highly Compensated Employees is
increased.

The reduction in the average is determined in accordance with paragraph 11.4 herein. In lieu of
reducing the applicable average for the Highly Compensated Employees, the Employer may elect to
make an additional Qualified Non-Elective Contribution (QNEC) and/or a Qualified Matching
Contribution (QMAC) for Non-Highly Compensated Employees to increase their Average Deferral
Percentage and/or Average Contribution Percentage to the point where the Plan satisfies the ADP
and/or the ACP Test. These qualified contributions are described at paragraph 11.5 herein.

If the Plan can only satisfy the ADP Test and the ACP Test by application of the alternative limit,
the Plan must apply the multiple use test as described at paragraph 11.7(b) hereof. If the Plan
fails to satisfy the multiple use test, the Employer must either make correcting distributions to
affected Highly Compensated Employees or make QNEC and/or QMAC contributions for Non-Highly
Compensated Employees to the point where the Plan satisfies the multiple use test.

11.2 ADP Testing Limitations

Prior Year Testing  — If elected by the Employer in the Adoption Agreement, the ADP
for a Plan Year for Participants who are Highly Compensated Employees for each Plan
Year and the Prior Plan Year’s ADP for Participants who were Non-Highly Compensated
Employees for the Prior Plan Year must satisfy the basic limit set forth in (1) or
the alternative limit set forth at (2):

	 	(1)	 	The ADP for the Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s
ADP for Participants who were Non-Highly Compensated Employees for the Prior
Plan Year multiplied by 1.25; or
	 
	 	(2)	 	The ADP for a Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the Prior Year’s ADP
for Participants who were Non-Highly Compensated Employees for the Prior Plan
Year multiplied by 2.0, provided that the ADP for Participants who are Highly
Compensated Employees does not exceed the ADP for Participants who were
Non-Highly Compensated Employees in the Prior Plan Year by more than two (2)
percentage points.

For the first Plan Year of a Plan, where the Plan permits a Participant to make
Elective Deferrals and the Plan is not a successor Plan, for purposes of the
foregoing limits, the Prior Plan Year’s Non-Highly Compensated Employees’ ADP shall
be 3%, unless the Employer has elected in the Adoption Agreement to use the current
Plan Year’s ADP for these Participants.

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Current Year Testing  — If no election is made by the Employer in the Adoption
Agreement, the ADP limits in (1) and (2), above, will be applied by comparing the
current Plan Year’s ADP for Participants who are Highly Compensated Employees with
the current Plan Year’s ADP for Participants who are Non-Highly Compensated
Employees. This election can only be changed if the Plan meets the requirements for
changing to Prior Plan Year testing set forth in IRS Notice 98-1 (or superseding
guidance).

11.3 Special Rules Relating To Application Of The ADP Test

	 	(a)	 	A Participant is a Highly Compensated Employee for a particular Plan Year if he
or she meets the definition of a Highly Compensated Employee in effect for that Plan
Year. Similarly, a Participant is a Non-Highly Compensated Employee for a particular
Plan Year if he or she does not meet the definition of a Highly Compensated Employee in
effect for that Plan Year.
	 
	 	(b)	 	The Actual Deferral Percentage for any Participant who is a Highly Compensated
Employee for the Plan Year and who is eligible to have Elective Deferrals (and
Qualified Non-Elective Contributions or Qualified Matching Contributions, or both, if
treated as Elective Deferrals for purposes of the ADP Test) allocated to his or her
accounts under two (2) or more arrangements described in Code Section 401(k), that are
maintained by the Employer, shall be determined as if such Elective Deferrals (and, if
applicable, such Qualified Non-Elective Contributions or Qualified Matching
Contributions, or both) were made under a single arrangement. If a Highly Compensated
Employee participates in two (2) or more cash or deferred arrangements that have
different Plan Years, all cash or deferred arrangements ending with or within the same
calendar year shall be treated as a single arrangement. Notwithstanding the foregoing,
certain plans shall be treated as separate if mandatorily disaggregated under
Regulations issued under Code Section 401(k).
	 
	 	(c)	 	In the event that this Plan satisfies the requirements of Code Sections 401(k),
401(a)(4), or 410(b) only if aggregated with one (1) or more other plans, or if one (1)
or more other plans satisfy the requirements of such Code Sections only if aggregated
with this Plan, then this section shall be applied by determining the Actual Deferral
Percentage of Participants as if all such plans were a single plan. Any adjustments to
the Non-Highly Compensated Employee ADP for the Prior Plan Year will be made in
accordance with IRS Notice 98-1 and any superseding guidance, unless the Employer has
elected in the Adoption Agreement to use the current year testing method. Plans may be
aggregated in order to satisfy Code Section 401(k) only if they have the same Plan Year
and use the same ADP testing method.
	 
	 	(d)	 	The Employer shall maintain records sufficient to demonstrate satisfaction of
the ADP Test and the amount of Qualified Non-Elective Contributions or Qualified
Matching Contributions, or both, used in such test.
	 
	 	(e)	 	For purposes of the ADP Test, Elective Deferrals, Qualified Non-Elective
Contributions and Qualified Matching Contributions must be made before the end of the
twelve (12) month period immediately following the Plan Year to which the contributions
relate.

11.4 Calculation And Distribution Of Excess Contributions And Excess Aggregate Contributions

Reducing The Average For Highly Compensated Employees — If necessary, the ADP
and/or ACP for Highly Compensated Employees must be reduced to the maximum allowed
by the applicable limit at paragraph 11.2 and 11.6. The average is reduced on a
step-by-step leveling basis beginning by reducing the Actual Deferral Percentage or
the Actual Contribution Percentage for the Highly Compensated Employee with the
highest percentage until the average is reduced to the maximum allowed or until the
Actual Deferral Percentage or Actual Contribution Percentage for such Highly
Compensated Employee is lowered to that of the Highly Compensated Employee with the
next highest percentage. This process continues until the ADP and/or the ACP is
lowered

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to the maximum allowed for the Plan Year. The excess dollar amount attributable to
each affected Highly Compensated Employee is then totaled for purposes of correcting
distributions determined at paragraph (b) below.

Correcting Distributions To Highly Compensated Employees — The total amount to be
distributed as determined under paragraph (a) is allocated to Highly Compensated
Employees on the basis of the dollar amount included for such Employee in the
numerator of the Actual Deferral Percentage or the Actual Contribution Percentage,
as applicable. The distribution for each affected Highly Compensated Employee is
determined on a leveling basis similar to that described at paragraph (a) except
that the process is based on dollars rather than percentages. Excess Contributions
and Excess Aggregate Contributions are allocated to the Highly Compensated Employees
with the largest amount of Employer contributions taken into account in calculating
the ADP or ACP Test for the year in which the excess arose, beginning with the
Highly Compensated Employee with the largest amount of such Employer contributions
and continuing in descending order until all the Excess Contributions and Excess
Aggregate Contributions have been allocated. For purposes of the preceding
sentence, the “largest amount” is determined after distribution of any Excess
Contribution and Excess Aggregate Contributions. After correcting distributions are
allocated, it is not necessary to recompute the Highly Compensated Employee averages
to determine if they satisfy the ADP Test and/or the ACP Test. Distributions of
Excess Contributions and Excess Aggregate Contributions are to be made in accordance
with paragraphs 7.12 and 7.13 hereof.

11.5 Qualified Non-Elective And/Or Matching Contributions

The Employer may make a Qualified Non-Elective Contribution (QNEC) or Qualified Matching
Contribution (QMAC) for Non-Highly Compensated Employees (whether or not so designated in the
Adoption Agreement) to increase the Average Deferral Percentage and/or Average Contribution
Percentage to the point where the Plan passes the ADP Test and/or the ACP Test. The following
rules apply with respect to such contributions:

	 	(a)	 	A QNEC or QMAC used in the ADP Test may not also be included in the ACP Test.
	 
	 	(b)	 	If testing is done on the basis of current Plan Year data, QNECs and/or QMACs
must be made and credited to Participant accounts not later than the last day of the
twelve (12) consecutive month period following the end of the Plan Year being tested.
	 
	 	(c)	 	If testing is done on the basis of Prior Plan Year data for Non-Highly
Compensated Employees, QNECs and/or QMACs for such Employees must be contributed not
later than the last day of the Plan Year being tested.
	 
	 	(d)	 	If the Employer makes Non-Elective Contributions which are not designated as
Qualified Non-Elective Contributions at the time of the contribution to the Plan, the
Plan Administrator may redesignate such contributions as Qualified Non-Elective
Contributions if the contributions otherwise satisfy the requirements of a Qualified
Non-Elective Contribution.
	 
	 	(e)	 	The Employer’s contribution will be allocated to a group of Non-Highly
Compensated Participants designated by the Plan Administrator. The allocation will be
the lesser of the amount required to pass the ADP/ACP Test, or the maximum permitted
under Code Section 415.

11.6 ACP Testing Limitations

Employee contributions and Matching Contributions must meet the nondiscrimination requirements of
Code Section 401(a)(4) and the Average Contribution Percentage (hereinafter ACP) Test of Code
Section 401(m). If Employee contributions (including any Elective Deferrals recharacterized as
Voluntary After-tax Contributions) or Matching Contributions are made in connection with a cash or
deferred arrangement, the ACP Test is in addition to the ADP Test under Code Section 401(k).
Qualified Matching Contributions and Qualified Non-Elective Contributions used to satisfy the ADP
test may not be used to satisfy the ACP test.

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	 	(a)	 	Prior Year Testing — If elected by the Employer in the Adoption Agreement,
the ACP for a Plan Year for eligible Participants who are Highly Compensated Employees
for each Plan Year and the prior Plan Year’s ACP for eligible Participants who were
Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the
following tests:

	 	(1)	 	The ACP for a Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the prior Plan Year’s
ACP for eligible Participants who were Non-Highly Compensated Employees for the
Prior Plan Year multiplied by 1.25; or
	 
	 	(2)	 	The ACP for a Plan Year for Participants who are Highly
Compensated Employees for the Plan Year shall not exceed the prior year’s ACP
for eligible Participants who were Non-Highly Compensated Employees for the
Prior Plan Year multiplied by 2.0, provided that the ACP for eligible
Participants who are Highly Compensated Employees does not exceed the ACP for
eligible Participants who were Non-Highly Compensated Employees in the Prior
Plan Year by more than two (2) percentage points.

	 	(b)	 	For the first Plan Year of a Plan, where this Plan permits any eligible
Participant to make Employee contributions, provides for Matching Contributions, or
both, and the Plan is not a successor Plan, for purposes of the foregoing limits, the
Prior Plan Year’s Non-Highly Compensated Employees’ ACP shall be 3% unless the Employer
has elected in the Adoption Agreement to use the current Plan Year’s ACP for these
Participants.
	 
	 	(c)	 	Current Year Testing — If no election is made by the Employer in the Adoption
Agreement, the ACP limits in (1) and (2), above, will be applied by comparing the
current Plan Year’s ACP for eligible Participants who are Highly Compensated Employees
for the Plan Year with the current Plan Year’s ACP for eligible Participants who are
Non-Highly Compensated Employees. This election can only be changed if the Plan meets
the requirements for changing to Prior Plan Year testing set forth in IRS Notice 98-1
(or superseding guidance).

11.7 Special Rules Relating To The Application Of The ACP Test

A Participant is a Highly Compensated Employee for a particular Plan Year if he or
she meets the definition of a Highly Compensated Employee in effect for that Plan
Year. Similarly, a Participant is a Non-Highly Compensated Employee for a
particular Plan Year if he or she does not meet the definition of a Highly
Compensated Employee in effect for that Plan Year.

If one or more Highly Compensated Employees participate in both a cash or deferred
arrangement and a plan subject to the ACP Test maintained by the Employer and the
sum of the ADP and ACP of those Highly Compensated Employees subject to either or
both tests exceeds the Aggregate Limit, then the ADP or ACP of those Highly
Compensated Employees who also participate in a cash or deferred arrangement will be
reduced in accordance with paragraph 11.4 so that the limit is not exceeded. The
amount by which each Highly Compensated Employee’s Contribution Percentage Amounts
is reduced shall be treated as an Excess Aggregate Contribution. The ADP and ACP of
the Highly Compensated Employees are determined after any corrections required to
meet the ADP and ACP tests and are deemed to be the maximum permitted under such
tests for the Plan Year. Multiple use of the aggregate limit does not occur if
either the ADP and ACP of the Highly Compensated Employees does not exceed 1.25
multiplied by the ADP and ACP of the Non-Highly Compensated Employees.

For purposes of this paragraph, the Actual Contribution Percentage for any
Participant who is a Highly Compensated Employee and who is eligible to have
Contribution Percentage Amounts allocated to his or her account under two (2) or
more plans described in Code Section 401(a) or arrangements described in Code
Section 401(k) that are maintained by the Employer, shall be determined as if the
total of such Contribution Percentage Amounts were made under a single plan. If a
Highly Compensated Employee participates in two (2) or more cash or deferred

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arrangements that have different Plan Years, all cash or deferred arrangements
ending with or within the same calendar year shall be treated as a single
arrangement. Notwithstanding the foregoing, certain plans shall be treated as
separate if mandatory disaggregation under the Regulations issued under Code Section
410(b) apply.

In the event that this Plan satisfies the requirements of Code Sections 401(a)(4),
401(m), or 410(b) only if aggregated with one (1) or more other plans, or if one (1)
or more other plans satisfy the requirements of such Code Sections only if
aggregated with this Plan, then this section shall be applied by determining the
Actual Contribution Percentage of Eligible Participants as if all such plans were a
single plan. Any adjustments to the Non-Highly Compensated Employee ACP for the
Prior Plan Year will be made in accordance with IRS Notice 98-1 and any superseding
guidance, unless the Employer has elected in the Adoption Agreement to use the
Current Year testing method. Plans may be aggregated in order to satisfy Code
Section 401(m) only if the aggregated plans have the same Plan Year and use the same
ACP testing method.

For purposes of the ACP Test, Employee contributions are considered to have been
made for the Plan Year in which contributed to the Plan. Matching Contributions and
Qualified Matching and Non-Elective Contributions will be considered made for a Plan
Year if made no later than the end of the twelve (12) month period beginning on the
day after the close of the Plan Year.

The determination and treatment of the Actual Contribution Percentage of any
Participant shall satisfy such other requirements as may be prescribed by the
Secretary of the Treasury.

11.8 Recharacterization

If the Employer allows for Voluntary After-tax Contributions in the Adoption Agreement, a
Participant may treat his or her Excess Contributions allocated to him or her as an amount
distributed to the Participant and then contributed by the Participant to the Plan.
Recharacterized amounts will remain nonforfeitable and subject to the same distribution
requirements as Elective Deferrals. Amounts may not be recharacterized by a Highly Compensated
Employee to the extent that such amount in combination with other Employee contributions made by
that Employee would exceed any stated limit under the Plan on Voluntary After-tax Contributions.

Recharacterization must occur no later than two and one-half (21/2) months after the last day of the
Plan Year for which such Excess Contributions arose and is deemed to occur no earlier than the date
the last Highly Compensated Employee is informed in writing of the amount recharacterized and the
consequences thereof. Recharacterized amounts will be taxable to the Participant for the
Participant’s tax year in which the Participant would have received them in cash.

11.9 Nondiscrimination Tests In A SIMPLE 401(k) Plan

The ADP/ACP Tests described this Article XI are treated as satisfied for any Plan Year for which
the Employer has adopted and complied with the provisions of the SIMPLE 401(k) Adoption Agreement.

11.10 Safe Harbor Rules Of Application

	 	(a)	 	The Employer may elect in a cash or deferred adoption agreement to apply the
safe harbor plan provisions found in paragraphs 11.10 through 11.17. Except as
otherwise permitted, an Employer must elect the Safe Harbor Plan provisions and must
satisfy the notice requirements of paragraph 11.16 prior to the beginning of the Plan
Year to which the Safe Harbor provisions will be applied. The Employer must apply the
Safe Harbor provisions for the entire Plan Year, including any short Plan Year. An
Employer who elects in the Adoption Agreement and operationally satisfies the Safe
Harbor provisions of paragraphs 11.10 through 11.17 is not subject to the
nondiscrimination requirements of 11.2. An Employer who elects to provide additional
Matching Contributions as set forth in paragraph 11.14 will be subject to the
nondiscrimination provisions of paragraph 11.6, unless the additional Matching
Contributions satisfy the ACP test safe harbor provisions in paragraph 11.14.

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	 	(b)	 	The Employer may elect in the Adoption Agreement either to make a Safe Harbor
Non-Elective Contribution on behalf of each eligible Employee who is eligible to
participate in the Plan, or to make a Safe Harbor Matching Contribution on behalf of
each eligible Employee who is eligible to participate in the Plan and who is making
Elective Deferrals.
	 
	 	(c)	 	The Safe Harbor Non-Elective Contribution will be made on behalf of each
eligible Employee who is eligible to participate in the Plan equal to at least 3% of
the Employee’s Compensation.
	 
	 	(d)	 	The Safe Harbor Matching Contribution shall be made under the Basic Matching
Formula or an Enhanced Matching Formula as described below.
	 
	 	(e)	 	A Plan intending to satisfy the requirements of Code Sections 401(k)(12) and
401(m)(11) [a “Safe Harbor CODA”] generally must satisfy such requirements, including
the notice requirement, for the entire Plan Year. See Notice 98-52, 1988-46 I.R.B. 16,
Notice 2000-3, 2000-4 I.R.B. 413, and Revenue Procedure 2000-29, 2000-6 I.R.B. 553.

	 	(1)	 	Basic Matching Contribution Formula —  The Basic Matching
Formula provides a Matching Contribution on behalf of each eligible Employee
who is making Elective Deferrals to the Plan in an amount equal to 100% of the
amount of the Employee’s Elective Deferrals that do not exceed 3% of the
Employee’s Compensation and 50% of the amount of the Employee’s Elective
Deferrals that exceed 3% of the Employee’s Compensation but do not exceed 5% of
the Employee’s Compensation. A Plan satisfying the ADP Safe Harbor using the
Basic Matching Formula automatically satisfies the ACP Test, if no After-tax or
other Matching Contribution is made under the Plan.
	 
	 	(2)	 	Enhanced Matching Formula — The Enhanced Matching Formula
provides a Matching Contribution on behalf of each Eligible Employee who is
making Elective Deferrals to the Plan under a formula, that, at any rate of
Elective Deferrals, provides an aggregate amount of Matching Contributions at
least equal to the aggregate amount of Matching Contributions that would have
been provided under the Basic Matching Formula. In no event shall the
aggregate amount of Matching Contributions under an Enhanced Matching Formula
exceed 6% of an eligible Employee’s Compensation. Under the Enhanced Matching
Formula, the rate of Matching Contributions may not increase as a Participant’s
rate of Elective Deferrals increases. A Plan satisfying the ADP Safe Harbor
using the Enhanced Matching Formula under which Matching Contributions made
with respect to Elective Deferrals are not made in excess of 6% of the eligible
Employee’s Compensation, automatically satisfies the ACP Test if no other
Matching Contribution is made under the Plan.
	 
	 	(3)	 	Additional Discretionary Matching Contribution — An Employer
may elect in the Adoption Agreement for Plan Years [beginning after January 1,
2000] to provide an additional discretionary Matching Contribution. Any such
contribution cannot exceed 4% of a Participant’s Compensation. This is a limit
on the total Matching Contribution formula, and is not a limit on the
percentage of Compensation which is deferred and taken into account under the
matching formula.
	 
	 	(4)	 	Limitation On Matching Contributions To Highly Compensated
Employees — The Matching Contribution requirement will not be satisfied if, at
any rate of Elective Deferrals, the rate of Matching Contributions that would
apply with respect to any Highly Compensated Employee who is making Elective
Deferrals under the Plan is greater than the rate of Matching Contributions
that would apply with respect to any Non-Highly Compensated Employee who is
making Elective Deferrals to the Plan and who has the same rate of Elective
Deferrals.

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11.11 Safe Harbor Definitions

“ACP Test Safe Harbor” is the method described in paragraph 11.14 for satisfying the
ACP Test of Code Section 401(m)(2).

“ACP Test Safe Harbor Matching Contributions” are Matching Contributions described
in paragraph 11.5.

“ADP Test Safe Harbor” is the method described in paragraph 11.13 for satisfying
the ADP Test of Code Section 401(k)(3).

“ADP Test Safe Harbor Contributions” are Matching Contributions and Non-Elective
Contributions described in paragraph 11.10.

“Compensation” is defined in paragraph 1.16 with no dollar limit other than the
limit imposed by Code Section 401(a)(17) as it applies to the Compensation of a
Non-Highly Compensated Employee. Solely for purposes of determining the
Compensation subject to a Participant’s Salary Deferral Agreement, the Employer may
use an alternative definition to the one described in the preceding sentence,
provided such alternate definition is a reasonable definition with the meaning of
Section 1.414(s)-1(d)(2) of the Regulations, and permits each Participant to elect
sufficient Elective Deferrals to receive the maximum amount of Matching
Contributions (determined using the definition of Compensation described in the
preceding sentence) available to the Participant under this Plan.

“Eligible Employee” means an Employee eligible to make Elective Deferrals under the
Plan for any part of the Plan Year or who would be eligible to make Elective
Deferrals but for a suspension due to a Hardship distribution described in paragraph
6.9 of the Plan or to statutory limitations, such as Code Sections 402(g) and 415.

“Matching Contributions” are contributions made by the Employer on account of an
Eligible Employee’s Elective Deferrals.

11.12 Required Restrictions On Safe Harbor Contributions

	 	(a)	 	Safe Harbor Matching Contributions and Safe Harbor Non-Elective Contributions
are Matching and Non-Elective Contributions respectively, that are:

	 	(1)	 	nonforfeitable within the meaning of Treasury Regulations Section 1.401(k)-1(c),
	 
	 	(2)	 	are subject to the distribution restrictions of Code Section
401(k)(2)(B) and Treasury Regulations Section 1.401(k)-1(d), and
	 
	 	(3)	 	used to satisfy the Safe Harbor Contribution requirements.

	 	(b)	 	Pursuant to Code Section 401(k)(2)(B) and Treasury Regulations Section
1.401(k)-1(d), such contributions (and earnings thereon) must not be distributable
earlier than separation from Service, death, Disability, an event described in Code
Section 401(k)(10), or in the case of a profit-sharing or stock bonus plan, the
attainment of age 591/2. Pursuant to Code Section 401(k)(2)(B) and Treasury Regulations
Section 1.401(k)-1(d)(2)(ii), these contributions shall not be eligible for
distribution for reasons of Hardship. A Plan electing to use either of the Safe
Harbor Matching or the Non-Elective Contribution provisions shall not require that an
Employee be employed on the last day of the Plan Year or impose an hourly requirement
in order for the Employee to be eligible to receive a Safe Harbor Non-Elective
Contribution or a Safe Harbor Matching Contribution.

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Such contributions must satisfy the ADP Test Safe Harbor without regard to permitted
disparity under Code Section 401(l).

	 	(d)	 	Safe Harbor Matching or Non-Elective Contributions cannot be used to satisfy
the Safe Harbor Contribution requirements with respect to more than one (1) Plan.
	 
	 	(e)	 	A Plan will fail to satisfy the ADP Test Safe Harbor or the ACP Test Safe
Harbor for a Plan Year unless the Plan Year is twelve (12) months in duration or in the
case of the first Plan Year of a newly established Plan (other than a successor Plan),
the Plan Year is at least three (3) months in duration (or any shorter period in the
case of a newly established Employer that establishes the Plan as soon as
administratively feasible after the Employer came into existence). If the Employer
amends an existing Defined Contribution Plan to offer the Safe Harbor provisions, the
401(k) arrangement of the Plan must be at least three (3) months in duration.
	 
	 	(f)	 	If the Safe Harbor provisions are an amendment and restatement of an existing
Plan, any contributions made prior to the adoption of the Safe Harbor provisions which
are subject to a vesting schedule will continue to vest according to the vesting
schedule in effect prior to the amendment or restatement of the Plan.

11.13 ADP Test Safe Harbor

The Employer may elect in the Adoption Agreement to make Basic Safe Harbor Matching
Contributions, Enhanced Safe Harbor Matching Contributions or Safe Harbor
Non-Elective Contributions.

	 	(b)	 	Notwithstanding the requirement in (a) above that the Employer make the ADP
Test Safe Harbor Contributions to the Defined Contribution Plan indicated in the
Adoption Agreement, such contributions will not be made to this Plan unless the
requirements of paragraph 11.17 are met.

11.14 ACP Test Safe Harbor

The Employer maintaining a 401(k) Plan may elect in the Adoption Agreement to make additional
Matching Contributions in addition to the Safe Harbor Matching Contributions made to the Plan.
These additional Matching Contributions may be subject to the ACP Test Safe Harbor requirements
instead of testing the contributions under paragraph 11.2. If the Employer elects using the
current year testing method to test the additional Matching Contributions for nondiscrimination as
set forth in paragraph 11.2, the ACP Test Safe Harbor will be satisfied if the following conditions
are met:

	 	(a)	 	no Matching Contribution may be made with respect to a Participant’s Elective
Deferrals and/or Voluntary After-tax Contributions which exceed 6% of Compensation;
	 
	 	 	 	the amount of any discretionary Matching Contribution made after the 1999 Plan Year
may not exceed 4% of the Participant’s Compensation;
	 
	 	(c)	 	the rate of Matching Contributions made to the Plan may not increase as the
rate of Elective Deferrals increase;
	 
	 	(d)	 	no Highly Compensated Employee may receive a greater rate of match than a
	 
	 	 	 	Non-Highly Compensated Employee; and
	 
	 	(e)	 	the Employer must elect in the Adoption Agreement the vesting schedule
distribution restrictions and eligibility to receive an allocation of these additional
Matching Contributions.

11.15 Safe Harbor Status

The Employer may amend a profit-sharing or 401(k) plan during a Plan Year to comply with the Safe
Harbor provisions of this Article for the Plan Year. In order to comply with these provisions,
the Employer must:

use the current year testing method;

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amend the Plan to add the Safe Harbor provisions no later than thirty (30) days
prior to the end of the Plan Year and apply the Safe Harbor provisions for the
entire Plan Year; satisfy the Safe Harbor contribution requirements using the Safe Harbor Non-Elective
Contribution;

provide the Safe Harbor notice to Participants prior to the beginning of the Plan
Year for which the Plan amendment applies which indicates the Employer will provide
Basic or Enhanced Matching Contributions or indicates that the Employer may later
amend the Plan to comply with the Safe Harbor provisions by use of the Safe Harbor
Non-Elective Contribution;

provide an additional notice to Participants at least thirty (30) days prior to the
end of the Plan Year only in the case of Safe Harbor Non-Elective Contribution
advising Participants of the amendment; and

actually provide the notice described in (e) above, should the Employer amend the
Plan to comply with the Safe Harbor requirements.

A Safe Harbor 401(k) Plan may be amended during a Plan Year to reduce or entirely eliminate on a
prospective basis any safe harbor contribution which is either a Basic or Enhanced Matching
Contribution conditioned on the Employer providing a notice to the Participants which explains the
effect of the amendment and specifies the following:

informs the Participants they will have the opportunity to amend their Salary
Deferral Agreements;

the effective date of the amendment is specified;

Participants are given the opportunity prior to the effective date of the amendment
to amend their Salary Deferral Agreement; and

the amendment to the Plan does not take effect until the later of thirty (30) days
after the notice of the amendment is provided to the Participant or the date the
Employer adopts the amendment.

An Employer who amends a Safe Harbor Plan to either reduce or eliminate the Safe Harbor Matching
Contribution under this paragraph or terminates the Plan during the Plan Year, must continue to
comply with all of the Safe Harbor requirements of this paragraph until the amendment or Plan
termination becomes effective. The Plan must continue to use the current year testing method for
the entire Plan Year and satisfy the nondiscrimination test under paragraph 11.2, and if applicable
the nondiscrimination tests under paragraph 11.6.

11.16 Safe Harbor Notice Requirement

The notice requirement is satisfied if each Eligible Employee is given an annual written notice of
the Employee’s rights and obligations under the Plan and the notice provided to the Employee
satisfies the content requirement and the timing requirement mandated under IRS Notices 98-52 and
2000-3.

The notice shall be sufficiently accurate and comprehensive to inform the Employee
of the Employee’s rights and obligations under the Plan and written in a manner
calculated to be understood by the average Employee eligible to participate in the
Plan. The notice shall accurately describe:

the Safe Harbor Matching or Non-Elective Contribution Formula (including a
description of the levels of Matching Contributions, if any, available under
the Plan);

any other contributions under the Plan (including the potential for
discretionary Matching Contributions) and the conditions under which such
contributions are made;

the Plan to which the Safe Harbor Contributions will be made (if different
than the Plan containing the cash or deferred arrangement);

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the type and amount of Compensation that may be deferred under the Plan;

how to make cash or deferred elections, including any administrative
requirements that apply to such elections;

the periods available under the Plan for making cash or deferred elections;
and

withdrawal and vesting provisions applicable to contributions under the
Plan.

If the notice is provided to eligible Employees within a reasonable period before
the beginning of each Plan Year (or in the Plan Year an Employee becomes eligible
within a reasonable period before the Employee becomes eligible), the Plan shall
satisfy the Safe Harbor notice requirements. Notwithstanding the foregoing general
rule, a notice shall only be deemed to be provided in timely manner if the notice is
provided to each Employee who is eligible to participate in the Plan for the Plan
Year at least thirty (30) days [and no more than ninety (90) days] before the
beginning of the Plan Year. If an Employee does not receive the notice because he
or she only becomes eligible to participate in the Plan after the ninetieth day
before the beginning of the Plan Year, the requirement to give the notice will be
satisfied if the notice is provided not more than ninety (90) days before the
Employee becomes eligible to participate, but in no event later than the date the
Employee becomes eligible. The preceding sentence shall apply in the case of any
Employee eligible for the first Plan Year in which an Employee becomes eligible
under an existing Code Section 401(k) cash or deferred arrangement.

The Plan may provide the Safe Harbor notice in writing or by electronic means. If
provided electronically, the notice must be no less understandable than a written
paper document and at the time of delivery of the electronic notice, the Employee is
advised that he or she may request to receive the notice in writing at no additional
charge. Supplemental notices may also be given electronically under the same
conditions.

The Plan may also comply with the notice requirements by use of the Summary Plan
Description. The Safe Harbor notice must cross-reference the applicable sections in
the Summary Plan Description. The information which may be contained in the Summary
Plan Description, as well as the notice, is the Safe Harbor Contribution Formula,
including a description of the levels of Matching Contributions, if any, how to make
Salary Deferral elections, including any administrative requirements that apply to
such elections, and the periods available under the Plan for making deferral
elections.

11.17 Satisfying Safe Harbor Contribution Requirements Under Another Defined Contribution Plan

	 	(a)	 	General Requirements - A Safe Harbor Matching or Non-Elective Contribution may
be made to this Plan or to another Defined Contribution Plan maintained by the Employer
that satisfies Code Sections 401(a) or 403(a). The Employer electing this option shall
do so by identifying the plan that makes the Safe Harbor Contribution in the Adoption
Agreement. If the Safe Harbor Contributions are made to another Defined Contribution
Plan, the Safe Harbor Contribution requirements must be satisfied in the same manner as
if the contributions were being made to this Plan. A Safe Harbor Contribution made to
another Defined Contribution Plan shall not satisfy this Safe Harbor requirement unless
each Employee eligible to participate in this Plan is eligible to participate in the
other Defined Contribution Plan under the same terms and conditions.
	 
	 	(b)	 	Same Plan Year Requirement — In order to satisfy the Safe Harbor Contribution
requirements, this Plan and the other Defined Contribution Plan to which the Safe
Harbor Contribution is to be made must have the same Plan Year.
	 
	 	(c)	 	Aggregation And Disaggregation Rules - The rules that apply for purposes of
aggregating and disaggregating cash or deferred arrangement and Plans under Code
Sections 401(k) and 401(m)

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also apply for purposes of Code Sections 401(k)(12) and 401(m)(11), respectively.
All cash or deferred arrangements included in a Plan are treated as a single cash or
deferred arrangement that must satisfy the Safe Harbor Contribution and notice
requirements. Moreover, two (2) Plans within the meaning of Regulations Section
1.410(b)-7(b) that are treated as a single Plan pursuant to the permissive
aggregation rules of Treasury Regulations 1.410(b)-7(d) are treated as a single Plan
for purposes of the Safe Harbor requirements. Conversely, a Plan [within the
meaning of Code Section 414(l)] that includes a cash or deferred arrangement
covering both collectively bargained employees and noncollectively bargained
employees is treated as two (2) separate Plans for purposes of Code Section 401(k),
and the ADP Safe Harbor need not be satisfied with respect to both Plans in order
for one (1) of the Plans to take advantage of the ADP Test Safe Harbor. Similarly,
if, pursuant to Code Section 410(b)(4)(B), an Employer applies Code Section 410(b)
separately to the portion of the Plan [within the meaning of Code Section 414(l)]
that benefits only Employees who satisfy age and Service conditions under the Plan
that are lower than the greatest minimum age and Service conditions permitted under
Code Section 410(a), the Plan is treated as two (2) separate Plans for purposes of
Code Section 401(k), and the ADP Test Safe Harbor need not be satisfied with respect
to both plans in order for one (1) of the Plans to take advantage of the ADP Test
Safe Harbor.

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ARTICLE XII

ADMINISTRATION

12.1 Plan Administrator

Unless otherwise provided in a separate Trust agreement, the Plan shall be administered by the Plan
Administrator who shall have the authority to enforce the Plan on behalf of any persons having or
claiming any interest under the Plan and who shall be responsible for the operation of the Plan in
accordance with its terms. The Plan Administrator shall be the “named fiduciary” for purposes of
ERISA Section 402(a)(2) with the sole authority to control and manage the operation and
administration of the Plan, and will be responsible for complying with the reporting and disclosure
requirements of Part 1 of Subtitle B of Title I of ERISA and agent for service of legal process
with respect to the Plan. The Plan Administrator shall determine by rules of uniform application
all questions arising out of the administration, interpretation and application of the Plan which
determination(s) shall be conclusive and binding on all parties. The Employer shall be named as
fiduciary and Plan Administrator except to the extent the Employer is a member of SBERA or unless
an individual or other entity (excluding the Trustee or Custodian, unless they are the Employer
sponsoring the Plan) is named to serve in such capacity. The Plan Administrator may appoint or
allocate the duties of the Plan Administrator among several individuals or entities. The Plan
Administrator’s duties shall include:

appointing the Plan’s attorney, accountant, Service Provider, actuary, Trustee,
Custodian, investment manager, or any other party needed to administer the Plan;

directing the appropriate party with respect to payments from the Trust;

communicating with Employees regarding their participation and benefits under the
Plan, including the administration of all claims procedures;

maintaining all necessary records for the administration of the Plan,
antidiscrimination testing, and filing any returns and reports with the Internal
Revenue Service, Department of Labor, or any other governmental agency;

reviewing and approving any financial reports, investment reviews, or other reports
prepared by any party appointed by the Employer under paragraph (a);

establishing a funding policy and investment objectives consistent with the purposes
of the Plan and ERISA;

construing and resolving any question of Plan interpretation and questions of fact.
The Plan Administrator’s interpretation of Plan provisions and resolution of
questions of facts including eligibility and amount of benefits under the Plan is
final and unless it can be shown to be arbitrary and capricious, will not be subject
to “de novo” review;

monitoring the activities of the Trustee and the performance of, and making changes
when necessary to, the portfolio of the Plan;

obtaining a legal determination of the qualified status of all domestic relations
orders and complying with the requirements of the law with regard thereto;

administering the loan program including ensuring that any and all loans made by the
Plan are in compliance with the requirements of the Internal Revenue Code and the
Regulations issued thereunder, and the Regulations issued by the Department of
Labor;

determining from the records of the Employer, the Compensation, Service, records,
status, and the other facts regarding Participants and Employees;

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to the extent provided in the Adoption Agreement, directing the Trustee or Custodian
with respect to the investments, in the Plan Administrator’s capacity as named
fiduciary; and

	 	(m)	 	the right to employ others, including legal counsel who may, but need not, be
counsel to the Employer, to render advice regarding any questions which may arise with
respect to its rights, duties and responsibilities under the Plan, and may rely upon
the opinions or certificates of any such person.

12.2 Persons Serving As Plan Administrator

Unless otherwise provided in a separate Trust agreement, if the Employer is no longer in existence,
and the Plan or the Employer does not specify the person to take an action or otherwise serve in
the place of the Employer in connection with the operation of the Plan, the Plan Administrator
shall so act or serve, but if there is no person serving as Plan Administrator, then a successor
shall be designated in writing by a majority of Participants whose accounts under the Plan have not
yet been fully distributed at such time. A majority of the legally competent Beneficiaries of a
deceased Participant then entitled to receive benefits may exercise the deceased Participant’s
rights to participate in that designation and shall be considered for that purpose to be one
Participant, in the Participant’s place.

12.3 Action By Employer

Action by the Employer under the Plan shall be carried out by the sole proprietor, if the Employer
is a sole proprietorship, by a general partner of the Employer, if the Employer is a partnership,
or by the board of directors or a duly authorized officer of the Employer, if the Employer is a
corporation. If the Employer is no longer in existence, and the Plan does not specify the person
to take an action, or otherwise serve in the place of the Employer, in connection with the
operation of the Plan, the Plan Administrator shall so act or serve, but if there is no person
serving as Plan Administrator, such action shall be taken by a person selected following the
approach referred to in paragraph 12.2. The Trustee/Custodian shall have, and assume, no
responsibility for inquiring into the authority of any person purporting to act on behalf of an
Employer.

12.4 Responsibilities Of The Parties

Unless otherwise provided in a separate Trust agreement:

	 	(a)	 	The Employer and the Plan Administrator shall cooperate with each other in all
respects, including the provision to each other of records and other information
relating to the Plan, as may be necessary or appropriate for the proper operation of
the Plan or as may be required under the Code or ERISA.
	 
	 	(b)	 	The Plan Administrator may delegate in writing all or any part of the Plan
Administrator’s responsibilities under the Plan to agents or others by written
agreement communicated to the delegate and to the Employer or, if the Employer is no
longer in existence, to such person or persons selected following the approach in
paragraph 12.2 and, in the same manner, may revoke any such delegation of
responsibility. Any action of a delegate in the exercise of such delegated
responsibilities shall have the same force and effect for all purposes as if such
action had been taken by the Plan Administrator. The delegate shall have the right, in
such person’s sole discretion, by written instrument delivered to the Plan
Administrator, to reject and refuse to exercise any such delegated authority. The
Trustee/Custodian need not act on instructions of such a delegate despite any knowledge
of such delegation, but may require the Plan Administrator to give the
Trustee/Custodian all instructions necessary under the Plan.

12.5 Allocation Of Investment Responsibility

Unless otherwise provided in a separate Trust agreement, responsibility with respect to the
investment of the Trust shall as elected in the Adoption Agreement. The amounts allocated to
Participants’ accounts shall be invested by the Trustee or Custodian pursuant to the elections in
the Adoption Agreement, Articles XII and XIII as applicable, and in accordance with investment
directions from authorized parties as provided hereunder.

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12.6 Appointment Of Investment Manager

Unless otherwise provided in a separate Trust agreement, the appointment of an investment manager
shall be made in accordance with this Article. If an investment manager is appointed, such entity
or individual must be registered as an investment manager under the Investment Advisors Act of 1940
or under applicable state law, meet the requirements of ERISA Section 3(38) or be a bank as defined
in said Act or an insurance company qualified under the laws of more than one state to perform
investment management services. An investment manager shall acknowledge in writing its appointment
and fiduciary status hereunder and shall agree to comply with all applicable provisions of this
document. The investment manager shall have the investment powers granted the Trustee in paragraph
13.8 except to the extent the investment manager’s powers are limited by the investment management
agreement. A copy of the investment management agreement (and any modifications or termination
thereof) must be provided to the Trustee or Custodian. Written notice of each appointment of an
investment manager shall be given to the Trustee or Custodian in advance of the effective date of
the appointment. Such notice or agreement shall specify what portion of the Trust Fund will be
subject to the investment manager’s discretion.

12.7 Participant Investment Direction

Unless otherwise provided in a separate Trust agreement, and if elected by the Employer in the
Adoption Agreement, Participants shall be given the option to direct the investment of such part of
their account balances as specified therein. The Employer or the Named Investment Fiduciary from
time to time shall select the investments to be made available, including the appointment of any
investment manager who meets the requirements of ERISA Section 3(38) to manage the assets of any
Participant’s account. The Employer or the Named Investment Fiduciary, independent of the Trustee,
shall be responsible for reviewing the performance of such investments. The following
administrative procedures shall apply to the administration of investments selected by the Employer
or the Employer’s designated fiduciary:

	 	(a)	 	The Plan Administrator shall administer the program.
	 
	 	(b)	 	At the time an Employee becomes eligible for the Plan, he or she shall provide
the Plan Administrator an investment designation stating the percentage of his or her
contributions to be invested in the available investments.
	 
	 	(c)	 	A Participant may change his or her election with respect to future
contributions by notifying the Employer, Trustee/Custodian or other Service Provider,
as they shall mutually agree, in accordance with the procedures established by the Plan
Administrator.
	 
	 	(d)	 	A Participant may transfer or exchange his or her balance from one investment
alternative to another by notifying the Employer, Trustee/Custodian or other Service
Provider, as they shall mutually agree, in accordance with the procedures established
by the Plan Administrator.
	 
	 	(e)	 	The investment alternatives offered under the Plan may be limited in a uniform
and nondiscriminatory manner. Investments may be restricted to specific investment
alternatives selected, including but not limited to, certain mutual funds, investment
contracts, collective funds or deposit accounts. If investments outside the
alternatives selected are permitted, Participants may not direct that investments be
made in collectibles other than U.S. Government or state issued gold and silver coins.
	 
	 	(f)	 	The Plan Administrator may permit, in a uniform and nondiscriminatory manner, a
Beneficiary of a deceased Participant or alternate payee under a Qualified Domestic
Relations Order [as defined in Code Section 414(p)] to individually direct their
account in accordance with this paragraph.
	 
	 	(g)	 	Investment directions will be processed as soon as administratively practicable
after proper investment directions are received from the Participant. The Employer,
Plan Administrator, Service Provider, Trustee and/or Custodian cannot provide any
guarantee of the timing of processing of any investment directive. The Employer, Plan
Administrator, Service Provider, Trustee and/or Custodian reserve the right not to
value an investment alternative or a Participant’s account on any given Valuation Date
for any reason deemed appropriate by the Employer or Plan

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Administrator. The Employer, Plan Administrator, Service Provider, Trustee and/or
Custodian further reserve the right to delay the processing of any investment
transaction for any legitimate business reason including but not limited to failure
of systems or computer programs, failure of the means of the transmission of data,
force majeure, the failure of a Service Provider to timely receive values or prices,
to correct its errors or omissions or the errors or omissions of any Service
Provider.

Notwithstanding the foregoing, and regardless of a Participant’s authority to direct
the investment of assets allocated to his or her account, the Named Investment
Fiduciary is authorized and empowered to direct the Trustee to invest funds in short
term investments pending other investment instructions by the Plan Administrator.

12.8 Application Of ERISA Section 404(c)

Unless otherwise provided in a separate Trust agreement, if elected by the Employer in the Adoption
Agreement, all Participant accounts under the Plan shall be invested as elected by each Participant
in a broad range of investment options made available from time to time by the Employer for this
purpose. If the Employer further elects that the Plan is intended to qualify as an “ERISA Section
404(c) Plan” within the meaning of Regulations issued pursuant to such section, Participants shall
have the opportunity, at least once in any three (3) month period, to give investment instructions
(with an opportunity to obtain written confirmation of such instructions) as to the investment of
contributions made on his or her behalf among the available investment options. The Plan
Administrator shall be obligated to comply with such instructions except as otherwise provided in
the Regulations issued under ERISA Section 404(c).

The Plan Administrator will provide or will make arrangement to provide each Participant with a
description of the investment alternatives available under the Plan; and with respect to each
designated investment alternative, a general description of the investments objectives, risk and
return characteristics of each alternative, including information relating to the type and
diversification of assets comprising the investment portfolio.

The Plan Administrator by separate document may prescribe the form and the manner in which such
direction shall be made, as well as the frequency with which such directions may be made or changed
and the dates as of which they shall be effective, in a manner consistent with the foregoing. The
Plan Administrator (or a person or entity so designated by the Employer) shall be the fiduciary
identified to furnish the information as contemplated by ERISA Section 404(c), but may designate on
its behalf another person or entity to provide such information or to perform any of the
obligations of the Plan Administrator under this paragraph.

Except as otherwise provided in this Basic Plan Document #01, the Trustee, Custodian, the Employer,
or any fiduciary of the Plan shall not be liable to the Participant or any of his or her
Beneficiaries for any loss resulting from action taken at the direction of the Participant. All
fiduciaries of the Plan shall be relieved of their fiduciary liability with respect to the
Participant directing his or her investments pursuant to ERISA Section 404(c) if elected by the
Employer in the Adoption Agreement of its intention to comply with ERISA Section 404(c).

Any costs and expenses related to compliance with the Participant’s directions shall be borne by
the Participant’s directed account, unless paid by the Employer.

12.9 Participant Loans

Unless otherwise provided in a separate Trust agreement, if permitted by the Employer in the
Adoption Agreement, a Plan Participant and Beneficiaries who are parties-in-interest as defined in
ERISA Section 3(14) may make application to the Plan Administrator requesting a loan from the Plan.
The Plan Administrator shall have the sole right to approve or deny a Participant’s application
provided that loans shall be made available to all Participants on a reasonably equivalent basis.
Loans shall not be made available to Highly Compensated Employees in an amount greater than the
amount made available to other Participants. Any loan granted under the Plan shall be made in
accordance with the terms of a written loan policy adopted by the Employer which is hereby
incorporated by reference and made a part of this Basic Plan Document #01. The loan policy may be
amended in writing from time to time without the necessity of amending this paragraph and shall be
subject to the following rules to the extent such rules are not inconsistent with such loan policy.

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	 	(a)	 	No loan, when aggregated with any outstanding loan(s) to the Participant, shall
exceed the lesser of (i) $50,000 reduced by the excess, if any, of the Participant’s
highest outstanding balance of all loans on any day during the one (1) year period
ending on the day before the loan is made, over the outstanding balance of loans from
the Plan on the date the Participant’s loan is made or (ii) one-half of the fair market
value of the Participant’s Vested Account Balance consisting of contributions as
specified in the loan policy. An election may be made in the loan policy, that if the
Participant’s Vested Account Balance is $20,000 or less, the maximum loan shall not
exceed the lesser of $10,000 or 100% of the Participant’s Vested Account Balance. For
the purpose of the above limitation, all loans from all plans of the Employer and other
members of a group of employers described in Code Sections 414(b), 414(c), and 414(m)
are aggregated. An assignment or pledge of any portion of the Participant’s interest
in the Plan and a loan, pledge, or assignment with respect to any insurance contract
purchased under the Plan, will be treated as a loan under this paragraph.
	 
	 	(b)	 	All applications must be in accordance with procedures adopted by the Plan
Administrator.
	 
	 	(c)	 	Any loan shall bear interest at a rate reasonable at the time of application,
considering the purpose of the loan and the rate being charged by representative
commercial banks in the local area for a similar loan unless the Plan Administrator
sets forth a different method for determining loan interest rates in its written loan
procedures. The loan agreement shall also provide that the payment of principal and
interest be amortized in level payments not less frequently than quarterly.
	 
	 	(d)	 	The term of such loan shall not exceed a period of five (5) years except in the
case of a loan for the purpose of acquiring any house, apartment, condominium, or
mobile home that is used or is to be used within a reasonable time as the principal
residence of the Participant. The Plan Administrator in accordance with the Plan’s
loan policy shall determine the term of such loan.
	 
	 	(e)	 	The principal and interest paid by a Participant on his or her loan shall be
credited to the Plan in the same manner as for any other Plan investment. Unless
otherwise provided in the loan policy, loans will be treated as segregated investments
of the individual Participant on whose behalf the loan was made. This provision is not
available if its election will result in discrimination in the operation of the Plan.
	 
	 	(f)	 	If the Plan Administrator approves a Participant’s loan request, it shall be
evidenced by a note, loan agreement, and assignment of up to 50% of his or her interest
in the Trust as collateral for the loan. The Participant, except in the case of a
profit-sharing plan satisfying the requirements of paragraph 8.7, must obtain the
consent of his or her Spouse, if any, within the ninety (90) day period before the time
his or her account balance is used as security for the loan. A new consent is required
if the account balance is used for any renegotiation, extension, renewal or other
revision of the loan, including an increase in the loan amount. The consent must be
written, must acknowledge the effect of the loan, and must be witnessed by a Plan
representative or notary public. Such consent shall subsequently be binding with
respect to the consenting Spouse or any subsequent Spouse.
	 
	 	(g)	 	If a valid Spousal consent has been obtained in accordance with (f), then,
notwithstanding any other provision of this Plan, the portion of the Participant’s
Vested Account Balance used as a security interest held by the Plan by reason of a loan
outstanding to the Participant shall be taken into account for purposes of determining
the amount of the account balance payable at the time of death or distribution, but
only if the reduction is used as repayment of the loan. If less than 100% of the
Participant’s Vested Account Balance (determined without regard to the preceding
sentence) is payable to the surviving Spouse, then the account balance shall be
adjusted by first reducing the Vested Account Balance by the amount of the security
used as repayment of the loan, and then determining the benefit payable to the
surviving Spouse.

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	 	(h)	 	Any loan made hereunder shall be subject to the provisions of a loan agreement,
promissory note, security agreement, payroll withholding authorization and, if
applicable, financial disclosure. Such documentation may contain additional loan terms
and conditions not specifically itemized in this section provided that such terms and
conditions do not conflict with this section. Such additional terms and conditions may
include, but are not limited to, procedures regarding default, a grace period for
missed payments, and acceleration of a loan’s maturity date on specific events such as
termination of employment.

No loans will be made to Owner-Employees or Shareholder Employees, unless the
Employer obtains a prohibited transaction exemption from the Department of Labor.

	 	(j)	 	Liquidation of a Participant’s assets for the purpose of the loan will be
allocated on a pro-rata basis across all the investment alternatives in a Participant’s
account, unless otherwise specified by the Participant, Plan Administrator, or the
Plan’s loan policy.
	 
	 	(k)	 	If a request for a loan is approved by the Plan Administrator, funds shall be
withdrawn from the recordkeeping subaccounts specified by the Participant or in the
absence of such a specification, from the recordkeeping subaccounts in the order
specified in the loan policy.
	 
	 	(l)	 	If a Plan permits loans to Participants, the Trustee/Custodian may appoint the
Employer as its agent, and if the Employer accepts such appointment, agree to hold all
notes and other evidence of any loans made to Participants. If provided in the loan
policy, the Plan Administrator may also require additional collateral in order to
adequately secure the loan. The Employer shall hold such notes and evidence under such
conditions of safekeeping as is prudent and as required by ERISA. The
Trustee/Custodian may account for all loans in the aggregate so that all Participant
loans will be shown collectively as a single asset of the Plan.
	 
	 	(m)	 	Unless otherwise elected in the Adoption Agreement, loan payments will be
suspended under this Plan as permitted under Code Section 414(u).

12.10 Insurance Policies

Unless otherwise provided in a separate Trust agreement, if elected by the Employer in the Adoption
Agreement and agreed to by the Trustee or Custodian, Participants may purchase life insurance
policies under the Plan. Any life insurance premium paid for any Participant out of the Employer
contributions will be made on behalf of the Participant unless the amount of such payment, plus all
premiums previously paid on behalf of such Participant is (a) with respect to ordinary life
insurance policies, less than fifty percent (50%) of the Employer Contributions and forfeitures
allocated to the Participant’s account determined on the date the premium is paid, (b) with respect
to term and universal life policies, less than twenty-five percent (25%) of such allocation
amounts, or (c) a combination of ordinary life and term and/or universal life insurance policies
are purchased, the sum of the term and universal life insurance premiums plus one-half of the
ordinary life premiums may not exceed twenty-five percent (25%) of such amounts allocated.
Dividends received on life insurance policies shall be considered a reduction of premiums paid in
such computations. If the Plan established is a profit sharing plan, the incidental insurance
benefit requirement is not applicable if the Plan purchases life insurance benefits from only
Employer contributions which have been allocated to the Participant’s account for at least two
years.

The Named Investment Fiduciary or its agent shall select the insurance company and
the policy and direct the Trustee (or Custodian) as to the purchase of the insurance
contract. Such direction shall include but not be limited to the term, price and
the insurance company from which the policy should be purchased.

The Trustee, if the Plan is trusteed, or Custodian, if the Plan has a custodial
account, shall apply for and will be the owner of any insurance contract and named
beneficiary of any policies purchased under the terms of this Plan. The insurance
contract(s) must provide that proceeds will be payable to the Trustee (or Custodian,
if applicable), however the Trustee (or Custodian) shall be required

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to pay over all the proceeds of the contract(s) to the Participant’s designated
Beneficiary in accordance with the distributions provisions of this Plan. A
Participant’s Spouse will be the designated Beneficiary of the proceeds in all
circumstances unless a qualified election has been made in accordance with paragraph
8.4, Joint and Survivor Annuity requirements, if applicable. Under no circumstances
shall the Trust (or custodial account) retain any part of the proceeds. In the
event of any conflict between the terms of this Basic Plan Document #01 and the
terms of any insurance contract purchased hereunder, these Plan provisions shall
control. The Beneficiary of a deceased Participant shall receive, in addition to
the proceeds of the Participant’s policy or policies, the amount credited to such
Participant’s account.

A Participant who is uninsurable or insurable at substandard rates may elect to
receive a reduced amount of insurance, if available, or may waive the purchase of
any insurance.

All dividends or other returns received on any policy purchased shall be applied to
reduce the next premium due on such policy, or if no further premium is due, such
amount shall be credited to the Trust as part of the account of the Participant for
whom the policy is held.

If Employer contributions are inadequate to pay all premiums on all insurance
policies, the Trustee or Custodian may, at the option of the Employer, utilize other
amounts remaining in each Participant’s account to pay the premiums on his or her
respective policy or policies, allow the policies to lapse, reduce the policies to a
level at which they may be maintained, or borrow against the policies on a prorated
basis, provided that the borrowing does not discriminate in favor of the policies on
the lives of Highly Compensated Employees.

On retirement or termination of employment of a Participant, termination of the
Plan, or the contract would but for the sale, be surrendered by the Plan, the
Employer shall direct the Trustee or Custodian to surrender the Participant’s policy
and credit the proceeds to his or her account for distribution under the terms of
the Plan. However, before so doing, the Trustee or Custodian shall first offer to
transfer ownership of the policy to the Participant. Prior to such transfer, the
Participant may elect to make payment to the Trust of the cash value of the policy.
Such payment shall be credited to the Participant’s account for distribution under
the terms of the Plan. All distributions resulting from the application of this
paragraph shall be subject to the Joint and Survivor Annuity Rules of Article VIII,
if applicable.

The Employer shall be solely responsible to ensure the insurance provisions are
administered properly and that if there is any conflict between the provisions of
this Plan and any insurance contracts issued, the terms of this document will
control.

Notwithstanding the above, in profit-sharing plans, the limitations imposed herein
with respect to the purchase of life insurance shall not apply to any Participant
who has participated in this Plan for five (5) or more years or to the portion of a
Participant’s Vested Account Balance, that would be eligible for withdrawal under
paragraph 6.8 whether or not in-service withdrawals are actually allowed under the
Plan, that has accumulated for at least two (2) Plan Years. No amount of Qualified
Voluntary Contributions made to the Plan may be used to purchase life insurance. In
addition, under such Plans, a Participant may, subject to the limitations set forth
in this subparagraph, elect to have keyman life insurance purchased on the life of
any Participant who is considered essential to the success of the Employer’s
business. In such case, the proceeds of such a life insurance contract in excess of
such contract’s cash value as of the date of death of such insured shall be paid to
the Beneficiaries named with respect to such contract. Death benefits, including
those in the previous sentence, payable from a life insurance contract shall be paid
in accordance with paragraph 8.7, if this Plan meets the safe harbor provisions in
that paragraph, or in accordance with paragraph 8.2 or 8.3, whichever may be
applicable. The cash value of the contract shall be added to the Participant’s
Vested Account Balance.

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No insurance contract will be purchased under the Plan unless such contract or a
separate definite written agreement between the Employer and the insurer provides
that no value under contracts providing benefits under the Plan or credits
determined by the insurer (on account of dividends, earnings, or other experience
rating credits, or surrender or cancellation credits) with respect to such contracts
may be paid or returned to the Employer or diverted to or used for other than the
exclusive benefit of the Participants or their Beneficiaries. However, any
contribution made by the Employer because of a mistake of fact must be returned to
the Employer within one (1) year of the contribution.

	 	(j)	 	If this Plan is funded by individual contracts that provide a Participant’s
benefit under the Plan, such individual contracts shall constitute the Participant’s
account balance. If this Plan is funded by group contracts, under the group annuity or
group insurance contract, premiums or other consideration received by the insurance
company must be allocated to Participants’ accounts under the Plan.
	 
	 	(k)	 	For Plans funded with individual or group annuity contracts, no Trustee or
Custodian is required to hold the assets of the Plan. Accordingly, any references to
the Trust, the Trust fund or the fund collectively refers to any contracts issued by an
insurance company to fund a Plan established under this document.

12.11
Determination Of Qualified Domestic Relations Order (QDRO Or Order)

Unless otherwise provided in a separate Trust agreement, a domestic relations order shall
specifically state all of the following in order to be deemed a Qualified Domestic Relations Order
(“QDRO”):

	 	(a)	 	The name and last known mailing address (if any) of the Participant and of each
alternate payee covered by the QDRO. However, if the QDRO does not specify the current
mailing address of the alternate payee, but the Plan Administrator has independent
knowledge of that address, the QDRO will still be valid.
	 
	 	(b)	 	The dollar amount or percentage of the Participant’s benefit to be paid by the
Plan to each alternate payee, or the manner in which the amount or percentage will be
determined.
	 
	 	(c)	 	The number of payments or period for which the order applies.
	 
	 	(d)	 	The specific Plan (by name) to which the domestic relations order applies.

The domestic relations order shall not be deemed a QDRO if it requires the Plan to provide:

	 	(e)	 	any type or form of benefit or any option not already provided for in the Plan;
	 
	 	(f)	 	increased benefits or benefits in excess of the Participant’s vested rights;
	 
	 	(g)	 	payment of a benefit earlier than allowed by the Plan’s earliest retirement
provisions or, in the case of a profit-sharing or 401(k) plan, prior to the first date
on which an in-service withdrawal is allowed; or
	 
	 	(h)	 	payment of benefits to an alternate payee which are required to be paid to
another alternate payee under another QDRO.

Upon receipt of a domestic relations order (“Order”) which may or may not be “qualified”, the Plan
Administrator shall notify the Participant and any alternate payee(s) named in the Order of such
receipt, and forward either a copy of this paragraph or other written QDRO policies and procedures.
The Plan Administrator shall establish written procedures to establish the qualified status of a
domestic relations order, which may include forwarding the Order to the Plan’s legal counsel for an
opinion as to whether or not the Order is in fact “qualified” as defined in Code Section 414(p).
Within a reasonable time after receipt of the Order, not to exceed sixty (60) days, the Plan

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Administrator shall make a determination as to its “qualified” status and the Participant and any
alternate payee(s) shall be promptly notified in writing of the determination.

If the “qualified” status of the Order is in question, there will be a delay in any payout to any
payee including the Participant, until the status is resolved. In such event, the Plan
Administrator shall segregate the amount that would have been payable to the alternate payee(s) if
the Order had been deemed a QDRO. If the Order is not qualified or the status is not resolved (for
example, it has been sent back to the court for clarification or modification) within eighteen (18)
months beginning with the date the first payment would have to be made under the Order, the Plan
Administrator shall pay the segregated amounts plus interest to the person(s) who would have been
entitled to the benefits had there been no Order. If a determination as to the qualified status of
the Order is made after the eighteen (18) month period described above, then the Order shall only
be applied on a prospective basis. If the Order is determined to be a QDRO, the Participant and
alternate payee(s) shall again be notified promptly after such determination. Once an Order is
deemed a QDRO, the Plan Administrator shall pay to the alternate payee(s) all the amounts due under
the QDRO, including segregated amounts plus earnings, if any, which may have accrued during a
dispute as to the Order’s qualification.

Unless specified otherwise in the Adoption Agreement or in a separate Trust agreement, the QDRO
retirement age with regard to the Participant against whom the order is entered shall be the date
the order is determined to be qualified. These provisions will only allow distributions to the
alternate payee(s) and not the Participant.

12.12 Receipt And Release For Payments

Unless otherwise provided in a separate Trust agreement, any payment to any Participant, his legal
representative, Beneficiary, or to any guardian or committee appointed for such Participant or
Beneficiary in accordance with the provisions of the Plan shall be in full satisfaction of all
claims hereunder against the Trustee, Employer or Plan Administrator each of whom may require such
Participant, legal representative, Beneficiary, guardian or committee as a condition prior to such
payment, to execute a receipt and release in such form as shall be determined by the Trustee,
Employer or Plan Administrator.

12.13 Resignation And Removal

Unless otherwise provided in a separate Trust agreement, an individual serving as Plan
Administrator may resign by giving written notice to the Employer, or if the Employer is no longer
in existence, to the Trustee/Custodian, not less than thirty (30) days before the effective date of
the individual’s resignation. The Plan Administrator may be removed upon thirty (30) days prior
written notice to the Plan Administrator, with or without cause, by the Employer, or if the
Employer is no longer in existence, by a majority of the Participants and Beneficiaries following
the approach referred to in paragraph 12.2. A notice period provided for in this paragraph 12.13
may be waived or reduced if acceptable to the parties involved. The Employer, if in existence,
shall be the successor to the position involved, or the Employer may appoint a successor to a
person who has resigned or been removed as Plan Administrator, but if the Employer is no longer in
existence, the appointment shall be made by a majority of the Participants and Beneficiaries
following the approach referred to in paragraph 12.2. When the Plan Administrator’s resignation or
removal becomes effective, the Plan Administrator shall perform all acts necessary to transfer all
relevant records to its successor. A successor Plan Administrator shall have all the rights and
powers and all of the duties and obligations of the original Plan Administrator but shall have no
responsibility for acts or omissions before the successor became Plan Administrator.

12.14 Claims And Claims Review Procedure

Unless otherwise provided in a separate Trust agreement, if any Employee, Participant, Beneficiary
or any other person claims to be entitled to benefits under the Plan, and the Plan Administrator
denies that claim in whole or in part, the Plan Administrator shall, in writing, within ninety (90)
days notify the claimant that his claim has been denied in whole or in part, setting forth the
specific reason or reasons for the denial, specific reference to pertinent Plan provisions upon
which the denial is based, a description of any additional material or information which may be
needed to clarify the claim, including an explanation of why such information is necessary, and
shall refer to the claims review procedure as set forth in this paragraph 12.14. Within sixty (60)
days after the mailing or delivery by the Plan Administrator of such notice, the claimant may
request, by written notice to the Plan Administrator, a review by the Employer of the decision
denying the claim. The claimant may examine documents pertinent to the review and may submit
written issues and comments to the Plan Administrator. If the claimant fails to request such a
hearing within such sixty (60) day period, it shall be conclusively determined for all purposes of
this Plan that the

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denial of such claim is correct. If the claimant requests a review within the sixty (60) day
period, the Plan Administrator shall designate a time, which time shall be no less than ten (10)
nor more than forty-five (45) days from the date of receipt by the Plan Administrator of the
claimant’s notice to the Plan Administrator, and a place for such hearing, and shall promptly
notify such claimant of such time and place. Within forty-five (45) days after the conclusion of
the hearing, including any extensions of the date thereof mutually agreed to by the claimant and
the Plan Administrator, the Plan Administrator shall communicate to the claimant the Plan
Administrator’s decision in writing, and if the Plan Administrator confirms the denial, in whole or
in part, the communication shall set forth the specific reason or reasons for the decision and
specific reference to those Plan provisions upon which the decision is based.

12.15 Bonding

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

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ARTICLE XIII

TRUST PROVISIONS

13.1 Establishment Of The Trust

	 	(a)	 	The Employer shall appoint within the Adoption Agreement who may be the Sponsor
(or an affiliate) of this Basic Plan Document #01 or an individual(s), institution or
other party, to serve as Trustee or Custodian (if applicable) of the Plan. The Employer
shall also have the right, but is not required, to appoint a Custodian in the Adoption
Agreement to have custody of the Plan’s assets. The Employer may execute a separate
trust or custodial agreement outlining the Trustee’s or Custodian’s duties and
responsibilities which shall be incorporated by reference and made part of this Basic
Plan Document #01. No such ancillary agreement may conflict with any provision(s) of
this document. Any provision which would jeopardize the tax-qualified status of this
Plan shall be null and void. Unless otherwise elected in the Adoption Agreement, the
Trust and/or Custodial provisions of this Article XIII and Article XII, as applicable,
of the Basic Plan Document #01 together with any such ancillary agreement shall be
operative. If the Sponsor is a bank, trust company or other financial organization, a
person or institution other than the Sponsor or its affiliate may not serve as Trustee
or Custodian of the Plan without the express written consent of the Sponsor. If a
financial organization is the Sponsor, and is not named Trustee, the Sponsor may serve
as Custodian under the Plan as provided at paragraph 13.13 herein. The Trustee shall
invest the Trust Fund in any of the investment alternatives as provided in paragraph
13.8. If a Custodian is appointed, the Trust Fund shall be invested in accordance with
paragraph 13.14.
	 
	 	(b)	 	The Employer establishes with the Trustee a Trust which shall consist of all
money and property received under Articles III and IV of this document, increased by
any income on or increment in such value of assets and decreased by any investment
loss, expense, benefit payment, withdrawal or other distribution by the Trustee in
accordance with the provisions of the Plan. The Trustee/Custodian shall hold the Trust
fund without distinction between principal and income. The Trust fund will be held,
invested, reinvested and administered by the Trustee in accordance with this Article
and any ancillary documents as provided for in this Article.

13.2 Control Of Plan Assets

The assets of the Trust or evidence of ownership shall be held by the Trustee and/or the Custodian
under the terms of the Basic Plan Document #01. If the assets represent amounts transferred from
another trustee or custodian under a former plan, the Trustee and/or Custodian named hereunder
shall not be responsible for any actions of the prior fiduciary including the propriety of any
investment decision made by the prior trustee/custodian under any prior plan. Instead, the
Employer shall be responsible for such actions.

13.3 Discretionary Trustee

If the Employer elects in the Adoption Agreement, or otherwise appoints the Trustee to act in the
capacity of discretionary Trustee, the Trustee shall invest the Trust in accordance with the Plan’s
investment policy statement and the investment alternatives permitted at paragraph 13.8 herein.
The Trustee will have the discretion and authority to invest, manage and control those Plan assets
except those assets which are subject to the investment direction of a Participant (if Participant
direction is permitted), or an investment manager or Named Investment Fiduciary, or other agent
properly appointed by the Employer. The exercise of any investment direction hereunder shall be
consistent with the investment policy of the Plan. The Trustee shall also perform custodial
functions described at paragraph 13.14 hereof for the Trust with respect to Plan assets over which
the Trustee has investment management responsibility. The Trustee may also perform custodial
functions for the Trust with respect to Plan assets the Trustee does not manage, to the extent
agreed to between the Trustee and the Employer, if the Trustee is appointed Custodian for some or
all of such assets in accordance with the terms of the Plan. The Trustee may execute any
additional documents as required which shall be treated as an addendum to this Basic Plan Document
#01. No such agreement may conflict with any provision nor shall any provision in such an
agreement jeopardize the tax-qualified status of the Plan. Any such provision shall be null and
void. The Trustee’s administrative duties shall be limited to those agreed to between the parties.
The Employer or its designate shall be responsible for other

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administrative duties required under the Plan or by applicable law.

13.4 Nondiscretionary Trustee

If the Employer elects in the Adoption Agreement or as otherwise agreed to in writing, the Trustee
may act in the capacity of a nondiscretionary Trustee. In this capacity, the Trustee shall have no
discretionary authority to invest, manage or control Plan assets and is authorized solely to make
and hold investments only as directed pursuant to paragraph 12.5. The nondiscretionary Trustee
shall have the same rights, powers and duties as the discretionary Trustee but exercises such
authority in accordance with the direction of the party which has the authority to manage and
control the investment of Plan assets. If directions are not provided to the Trustee, the Employer
will provide such necessary direction.

13.5 Provisions Relating To Individual Trustees

	 	(a)	 	Notwithstanding any other provisions of the Plan to the contrary, the
provisions of this paragraph shall apply if one (1) or more individuals are named as
Trustee(s) in the Adoption Agreement and shall not apply to any institutional Trustee
named in the Adoption Agreement.
	 
	 	(b)	 	If there shall be more than one individual acting in the capacity of Trustee,
they shall act by a majority of their number, unless they unanimously decide that one
(1) or more of them may act on the matter or category of matters involved without the
approval of the others and they may authorize in writing that one (1) or more of them
shall act on their behalf including but not limited to executing documents and
authorizing distributions on behalf of the Trustees.
	 
	 	(c)	 	Any person may rely, without having to make further inquiry, upon instructions
appearing to be genuine instructions from any individual serving as Trustee as being
the will, intent and action of all individuals so serving if no allocation of duties
has been made.
	 
	 	(d)	 	The Trustee shall be paid such reasonable compensation for services as shall
from time to time be agreed upon in writing by the Employer and the Trustee, provided
that an individual serving as Trustee who already receives full-time Compensation from
the Employer shall not receive compensation for serving as such from the Plan.

13.6 Investment Instructions

Any investment directive shall be made in writing or such other form as agreed to by the Employer,
Trustee/Custodian and the investment manager. In the absence of such directive, cash shall be
automatically invested in such investment or investments as the Employer or Named Investment
Fiduciary shall select from the investments made available for that purpose unless and until the
person or persons responsible for giving directions directs otherwise. Such automatic investment
shall be made at regular intervals and pursuant to procedures established by the parties (which
procedures may without limitation, provide for more frequent intervals only if uninvested balances
exceed a stated amount). Absent a contrary direction in accordance with the preceding provisions
of this paragraph 13.6, such instructions regarding the delegation of investment responsibility
shall remain in force until revoked or amended in writing. Neither the Trustee nor the Custodian
shall be responsible for the propriety of any directed investment made nor shall they be required
to consult with or advise the Employer regarding the investment quality of any directed investment
held hereunder. If the Employer fails to designate an investment manager, the Trustee shall have
full investment management authority as agreed upon in a duly authorized and executed investment
management agreement. If the Employer does not issue investment directions with regard to specific
assets held in the Trust, the Trustee shall have authority to invest those assets in the Trust in
its sole discretion subject to paragraph 13.8. While the Employer may direct the Trustee with
respect to Plan investments, the Employer may not:

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borrow from the Plan or pledge any of the assets of the Plan as security for a loan,

buy property or assets from or sell property or assets to the Plan,

charge any fee for services rendered to the Plan, or

receive any services from the Plan on a preferential basis.

13.7 Fiduciary Standards

Subject to paragraphs 13.6 and 13.8 hereof, the Trustee, Employer and Custodian, as applicable,
shall invest and reinvest principal and income of the Trust, provided that:

	 	 	 	such investments are prudent under ERISA, as amended, and the
Regulations thereunder,

	 
	 	(b)	 	such investments are sufficiently diversified to minimize the risk of large losses,
	 
	 	(c)	 	such investments are made in accordance with the provisions of this Plan and
Trust document, and
	 
	 	(d)	 	such investments are made with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like
character with like aims.

13.8 Powers Of The Trustee

The Trustee shall be responsible for the investment, administration and safekeeping of assets held
in the Trust Fund. The Trustee shall have the following duties and responsibilities, in addition
to powers given by law:

	 	(a)	 	receiving contributions under the terms of the Plan;
	 
	 	(b)	 	implementing an investment program based on the Employer’s investment policy
statement, funding policy, investment objectives and ERISA, as amended;
	 
	 	(c)	 	invest the Trust in any form of property, including common and preferred
stocks, exchange-traded covered put and call options, bonds, money market instruments,
mutual funds (including funds for which the Sponsor, Trustee or its affiliates receive
compensation for providing investment advisory, custody, transfer agency or other
services), savings accounts, plan loans, certificates of deposit, securities issued by
the U.S. government or by governmental agencies, insurance policies and contracts, or
in any other property, real or personal, having a ready market, including securities
issued by the Trustee and/or affiliates of the Trustee as permitted by law. The
Trustee may invest in time deposits (including, if applicable, its own or those of
affiliates) which bear a reasonable interest rate. No portion of any Qualified
Voluntary Contribution, or the earnings thereon, may be invested in life insurance
contracts or, as with any Participant-directed investment, in tangible personal
property characterized by the IRS as a collectible;
	 
	 	(d)	 	invest any assets of the Trust in a group or collective trust fund established
to permit the pooling of funds of separate pension and profit-sharing trusts, provided
the Internal Revenue Service has ruled such group or collective trust to be qualified
under Code Section 401(a) and exempt under Code Section 501(a) (or the applicable
corresponding provision of any other Revenue Act) or to any other common, collective,
or commingled trust fund which has been or may hereafter be established and maintained
by the Trustee, affiliate(s) of the Trustee, the Custodian or investment manager. Such
commingling of assets of the Trust with assets of other qualified trusts is
specifically authorized, and to the extent of the investment of the Trust in such a
group or collective trust, the terms of the instrument establishing the group or
collective trust shall be a part hereof as though set forth herein. The name of the
group or collective trust fund shall be specified in an addendum to the Adoption
Agreement. The Employer expressly understands and agrees that any such collective fund
may provide for the lending of its securities by the collective fund trustee

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and that such collective fund’s trustee will receive compensation from such
collective fund for the lending of securities that is separate from any compensation
of the Trustee hereunder, or any compensation of the collective fund trustee for the
management of such collective fund;

for collective investment purposes, may combine into one trust fund the Trust
created under this Plan with the Trust created under any other qualified retirement
plan the Employer maintains. However, the Trustee must maintain separate records of
account for the assets of each Trust in order to reflect properly each Participant’s
Vested Account Balance under the Plan(s) in which he is a Participant;

	 	(f)	 	invest up to 100% of the Trust in the common stock, debt obligations, or any
other security issued by the Employer or by an affiliate of the Employer within the
limitations provided under ERISA Sections 406, 407, and 408, as amended, and further
provided that such investment does not constitute a prohibited transaction under Code
Section 4975. Any such investment in Employer securities shall only be made upon
written direction of the Employer who shall be solely responsible for the propriety of
such investment. Additional directives regarding the purchase, sale, retention or
valuing of such securities may be addressed in an investment management or trust
agreement, which is incorporated by reference. If there are any conflicts between this
document and the above referenced agreements, this document shall govern;
	 
	 	(g)	 	hold cash uninvested and deposit the same with any banking or savings
institution, including its own banking department or the banking department of an
affiliate;
	 
	 	(h)	 	utilize a general disbursement account, i.e., in the form of a demand deposit
account and/or time deposit account, for distributions from the Trust, without
incurring any liability for payment of interest thereon, notwithstanding the Trustee’s
receipt of income with respect to float involving the disbursement account;
	 
	 	(i)	 	hold contributions in an omnibus account, i.e., in the form of a demand deposit
and/or time deposit account, maintained by the Trustee for up to three (3) business
days (or such longer period as may result due to circumstances beyond the Trustee’s
control), without liability for interest thereon. (The Employer acknowledges that any
float earnings associated with the assets held in such omnibus account are retained by
the Trustee as part of its compensation for performing services with respect to the
allocation of contributions to Participants’ accounts);
	 
	 	(j)	 	join in or oppose the reorganization, recapitalization, consolidation, sale or
merger of corporations or properties, including those in which it or its affiliates are
interested as Trustee, upon such terms as it deems advisable;
	 
	 	(k)	 	hold investments in nominee or bearer form;
	 
	 	(l)	 	exercise all ownership rights including the voting of proxies and the exercise
of tender offers but only with respect to assets over which the Trustee has investment
management responsibility;
	 
	 	(m)	 	to hold, manage and control all property forming part of the Trust Fund and to
sell, convey, transfer, exchange and otherwise dispose of the same from time to time;
	 
	 	(n)	 	to apply for and procure from an insurance company as an investment of the
Trust such annuity, or other contracts on the life of any Participant as the Plan
Administrator shall deem proper; to exercise, at any time or from time to time,
whatever rights and privileges may be granted under such annuity, or other contracts;
to collect, receive, and settle for the proceeds of any such annuity, or other
contracts as and when entitled to do so under the provisions thereof;
	 
	 	(o)	 	unless otherwise provided by a directive as described by paragraph 13.6, the
Employer will pass through shareholder rights (including voting rights) on Employer
securities to Plan Participants. If no directive is provided, the Trustee shall
exercise any shareholder rights (including voting rights)

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with respect to any securities held, but only in accordance with the instructions of
the person or persons responsible for the investment of such securities subject to
and as permitted by, any applicable rules of the Securities and Exchange Commission
and any national securities exchange. Voting rights with respect to shares of
registered investment companies held in the Trust shall be directed by the Named
Investment Fiduciary responsible for selection of such registered investment
companies as permissible investment alternatives. In the event of any conflict with
any other provision of this Article or this Basic Plan Document #01, the provision
of this paragraph shall control. The Employer shall be responsible for preparing
and distributing all required prospectuses for Employer securities and making such
materials available to Plan Participants;

	 	(p)	 	to retain and employ such attorneys, agents and servants as may be necessary or
desirable, in the opinion of the Trustee, in the administration of the Plan, and to pay
them such reasonable compensation for their services as may be agreed upon as an
expense of administration of the Plan, including power to employ and retain counsel
upon any matter of doubt as to the meaning or interpretation to be placed upon this
Plan or any provisions thereof with reference to any question arising in the
administration of the Plan or pertaining to the rights and liabilities of the Trustee
hereunder. The Trustee in any such event, any act in reliance upon the advice,
opinions, records, statements and computations of any attorneys and agents and on the
records, statements and computations of any servants so selected by it in good faith
and shall be released and exonerated of and from all liability to anyone in so doing
(except to the extent that liability is imposed under ERISA);
	 
	 	(q)	 	to institute, prosecute and maintain, or to defend, any proceeding at law or in
equity concerning the Plan or the assets thereof or any claims thereto, or the
interests of Participants and Beneficiaries hereunder at the sole cost and expense of
the Plan or at the sole cost and expense of the Participant that may be concerned
therein or that may be affected thereby, as, in its opinion, shall be fair and
equitable in each case, and to compromise, settle and adjust all claims and liabilities
asserted by or against the Plan or asserted by or against it, or such terms as it, in
each such case, shall deem reasonable and proper. The Trustee shall be under no duty
or obligation to institute, prosecute, maintain or defend any suit, action or other
legal proceeding unless it shall be indemnified to its satisfaction against all
expenses and liabilities (including without limitation, legal and other professional
fees) which it may sustain or anticipate by reason thereof; and
	 
	 	(r)	 	the Trustee is expressly authorized to the fullest extent permitted by law to
(1) retain the services of any broker-dealer, registered investment advisor or other
financial services entity (including the Trustee and any of its affiliates) and any
future successors in interest thereto collectively, for the purposes of this paragraph
referred to as the “Affiliated Entities”), to provide services to assist or facilitate
the purchase or sale of investments in the Trust, (2) acquire as assets of the Trust
            shares of mutual funds to which Affiliated Entities provide, for a fee, services in any
capacity and (3) acquire in the Trust any other services or products of any kind or
nature from the Affiliated Entities regardless of whether the same or dissimilar
services or products are available from other institutions. The Trust may pay directly
or indirectly (through mutual funds fees and charges for example) pay management fees,
transaction fees and other commissions to the Affiliated Entities for the services or
products provided to the Trust and/or such mutual funds at such Affiliated Entities’
standard or published rates without offset (unless required by law) from any fees
charged by the Trustee for its services as Trustee. The Trustee may also deal directly
with the Affiliated Entities regardless of the capacity in which it is then acting, to
purchase, sell, exchange or transfer assets of the Trust even though the Affiliated
Entities are receiving compensation or otherwise profiting from such transaction or are
acting as principal in such transaction. Each of the Affiliated Entities is authorized
to effect transactions on national securities exchanges for the Trust as directed by
the Trustee, and retain any transactional fees related thereto, consistent with Section
11(a)(1) of the Securities and Exchange Act of 1934, as amended and related Rule
11a2-2(T). Included specifically, but not by way of limitation in the transactions
authorized by this provision, are transactions in which any of the Affiliated Entities
is serving as an underwriting or member of an underwriting syndicate for a security
being purchased or is purchasing or selling a security for

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its own account. In the event the Trustee is directed by the Plan Administrator,
any named fiduciary, designated Investment Manager, Participant and/or Beneficiary,
as applicable hereunder (collectively referred to as for purposes of this paragraph
as the “Directing Party”), the Directing Party shall be authorized, and expressly
retains the right hereunder, to direct the Trustee to retain the services of, and
conduct transactions with, Affiliated Entities fully in the manner described above.

13.9 Appointment Of Additional Trustee And Allocation Of Responsibilities

Assets for which the Trustee is not serving in the capacity of Trustee may be held by a second
Trustee appointed by the Employer to hold specified investments. In the event that an additional
Trustee is appointed for the Plan to serve as the Trustee of specific investments for which the
Trustee is not acting in the capacity of Trustee, the second Trustee shall have no responsibilities
to these assets other than as set forth herein. The Trustee shall have no duties with respect to
investment held by any other person including, without limitation, any other Trustee for the Plan.
Any other secondary Trustee of the Plan shall have no duties with respect to assets held in the
Plan by the Trustee.

13.10 Compensation, Administrative Fees And Expenses

All reasonable fees, charges and expenses incurred by the Trustee or the Custodian in connection
with the administration of the Trust and all reasonable fees, charges and expenses incurred by the
Plan Administrator in connection with the administration of the Plan (including such reasonable
compensation to the Trustee/Custodian and the Plan Administrator as may be agreed upon from time to
time between the Employer, the Trustee/Custodian and Plan Administrator) and fees for legal
services rendered to the Trustee/Custodian or Plan Administrator shall be paid from the Trust
unless:

The payment of such expense would constitute a “prohibited transaction” within the
meaning of ERISA Section 406 or Code Section 4975 for which no statutory or
administrative exemption is available.

	 	(b)	 	The Employer actually pays such expenses directly. Any and all reasonable
additional administrative expenses incurred to effect investment directives made by the
Participants and by each Beneficiary under this Plan shall be paid by the Trust and as
determined by the Employer shall either be charged (in accordance with such reasonable
nondiscriminatory rules as the Employer deems appropriate under the circumstances) to
the account of the individual issuing such directive, or treated as a general expense
of the Trust. If charged to a Participant’s account and if the assets of such account
are insufficient to satisfy such charges, the Employer shall pay any deficit to the
Trustee. Notwithstanding the foregoing, nothing in this section shall prevent the
Employer from paying the administrative expenses of the Plan directly.

All transaction related expenses incurred to effect a specific investment for a
Participant directed account (such as brokerage commissions and other transaction
related expenses), shall, as determined by the Employer, either be paid from or
otherwise be charged directly to the account of the Participant providing such
direction or treated as a general expense of the Trust.

If there are insufficient liquid assets of the Trust to cover the fees of the
Trustee or the Custodian, then assets of the Trust shall be liquidated to the extent
necessary to cover fees.

Notwithstanding the foregoing, no compensation other than reimbursement for expenses
incurred shall be paid to a Plan Administrator who is the Employer or Employee of
the Employer.

In the event any part of the Plan becomes subject to tax, all taxes incurred will be
paid from the Plan at the direction of the Plan Administrator.

	 	(g)	 	Any investment gain or loss of the Trust that is not directly attributable to
the investment of the account of any Participant (including, but not limited to, for
example, any “float” earned on the disbursement account established for the Plan and
not treated as part of the compensation of the Trustee or paying agent for the Plan,
and any 12b-1 or similar fees paid to the Plan) will be applied to pay administrative
expenses of the Plan, with any excess remaining at the close of the

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Plan Year being allocated among the Participant’s accounts in accordance with the
procedure established by the Plan Administrator for this purpose.

13.11 Records

Within ninety (90) days following the close of each Plan Year, or at such other times as may be
agreed to between the Employer and the Trustee, and within ninety (90) days following its removal
or resignation, the Trustee shall file with the Employer a report of that part of the Trust under
the investment management of the Trustee during such year or from the end of the preceding Plan
Year to the date of removal or resignation. Such report shall include a statement of receipts and
disbursements, the net income or loss of the Trust, the gains or losses realized by the Trust upon
sale or other disposition of the assets, the increase or decrease in the value of the Trust, all
payments and distributions made from the Trust since the date of its last report, and shall contain
a schedule of assets listing the fair market value of investments held in the Trust as of the end
of the Plan Year or the date of removal or resignation, as applicable. The fair market value of
investments for which there is a ready market shall be determined using the most recent price
quoted on a national or other recognized securities exchange or over-the-counter market. The fair
market value of illiquid investments shall be obtained by a valuation performed by an independent
appraiser appointed by the Trustee or appointed by the Employer and approved by the Trustee for
this purpose whose determination shall be final. The Employer shall review the Trustee’s report and
notify the Trustee in the event of its disapproval of the report within thirty (30) days, providing
the Trustee with a written description of the items in question. The Trustee shall have sixty (60)
days to provide the Employer with a written explanation of the items in question. If the Employer
again disapproves, the Trustee shall have the right to file its report in a court of competent
jurisdiction for audit and adjudication. In the event the Employer fails to file a written
objection to the Trustee’s report within the ninety (90) day period following receipt of the
report, the Employer shall be deemed to have approved the report. In such case, the Trustee shall
be released and discharged with respect to all matters contained in the report.

13.12 Limitation On Liability And Indemnification

The Trustee shall have the authority to manage and govern the Trust to the extent
provided in this instrument, but does not guarantee the Trust in any manner against
investment loss or depreciation in asset value, or guarantee the adequacy of the
Trust to meet and discharge all or any liabilities of the Plan.

The Trustee and/or Custodian shall not be liable for the making, retention, or sale
of any investment or reinvestment made by it, as herein provided, or for any loss
to, or diminution of the Trust, or for any other loss or damage which may result
from the discharge of its duties hereunder except to the extent it is judicially
determined such loss or damage is attributable to the Trustee/Custodian’s breach of
its duties hereunder or under ERISA.

An institution acting as a Custodian or nondiscretionary Trustee shall have no
discretion or investment management responsibility, unless otherwise expressly
agreed in writing (pursuant to an investment management agreement, for example) and
shall only be responsible to perform the functions described at paragraph 13.5
hereof. Neither the Custodian nor Trustee (whether nondiscretionary or
discretionary) shall have any responsibility with respect to Plan investments and
does not guarantee the adequacy of the Trust to meet and discharge any or all
liabilities associated with the Plan.

The Employer warrants that all directions issued to the Trustee or Custodian by it
or the Plan Administrator will be in accordance with the terms of the Plan and the
auxiliary agreement and not contrary to the provisions of ERISA, as amended, and the
Regulations issued thereunder.

Neither the Trustee nor the Custodian shall be answerable for any action taken
pursuant to any direction, consent, certificate, or other paper or document in the
belief that the same is genuine. All directions by the Employer, Participant, the
Plan Administrator, Named Fiduciary or an investment manager shall be made pursuant
to pre-approved communication procedures to which all such parties, as applicable,
shall have consented to in writing. The Employer shall deliver to

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the Trustee and Custodian written notification identifying the individual or
individuals authorized to act on behalf the Plan and shall deliver specimens of
their signatures to the Trustee/Custodian.

The duties and obligations of the Trustee and the Custodian shall be limited to
those expressly imposed by this instrument or subsequently agreed upon by the
parties in writing. Responsibility for administrative duties required under the
Plan or applicable law not expressly imposed upon or agreed to by the Trustee or the
Custodian shall rest solely with the Employer.

The Employer shall indemnify the Trustee/Custodian against, and agrees to hold the
Trustee/Custodian harmless from, all liabilities and claims and expenses including
attorney’s fees and expenses incurred in defending against such liability or claims
against the Trustee/Custodian, unless such liability or claim results from the
negligent action or inaction of the Trustee/Custodian, or where the
Trustee/Custodian is found to have breached its duties under this Article or Part 4
of Title I of ERISA by a final judgment of a court of competent jurisdiction.
Except as otherwise provided by the preceding sentence, the Employer also shall
indemnify the Trustee/Custodian against and agrees to hold the Trustee/Custodian
harmless from all liabilities, claims and expenses including attorney’s fees and
other expenses incurred in defending against such liabilities or claims, arising
from any actions or breach of responsibility by any party other than the
Trustee/Custodian, including without limitation by specification any acts of a prior
Trustee or of another Trustee or Custodian appointed by the Employer.

	 	(h)	 	Without limiting any provision in the prior paragraph, the Employer expressly
agrees to indemnify the Trustee/Custodian against any liability or claim (including
attorney’s fees and expenses in defending against such liabilities or claims) arising
as a result of any act taken or failure to act, in accordance with the directions
received from the Employer, Plan Administrator, investment manager, Participant, or a
designee specified by the Employer directly or transmitted by a designated Service
Provider to the Plan and without limitation by specification.
	 
	 	(i)	 	The Trustee/Custodian will take all reasonable steps to assure the security of
any data received from the Employer in connection with services provided to the Plan.
The Employer will be responsible for retaining duplicate copies of any such data or
materials it forwards to the Trustee/Custodian and for taking all other reasonable and
necessary precautions in event such data or materials are lost or destroyed, regardless
of cause, or in the event reprocessing is needed for any reason. The Trustee/Custodian
will maintain records in connection with the performance of services hereunder for the
applicable period as required by law, or if no period is required, for such period as
is reasonable under the law.
	 
	 	(j)	 	No waiver of any breach of this agreement shall constitute a waiver of any
other breach, whether of the same or any other covenant, term or condition. The
subsequent performance of any of the terms, covenants and conditions of this Article
shall not constitute a waiver of any preceding breach, nor shall any delay or omission
of any party’s exercise of any rights arising from any default effect or impair the
party’s rights as to the same or future default.
	 
	 	(k)	 	Neither the Trustee or the Custodian shall be responsible in any way for any
actions taken, or failure to act, by a prior trustee/custodian. The Employer shall
indemnify and hold harmless the Trustee/Custodian for such prior trustee/custodian’s
acts or inactions for any periods applicable, including periods for which the Plan must
retroactively comply with any tax law or regulations thereunder.
	 
	 	(l)	 	A fiduciary with respect to the Plan shall not be liable for a breach of
fiduciary responsibility of another fiduciary with respect to the Plan except to the
extent that:

	 	(1)	 	it participates knowingly in, or knowingly undertakes to
conceal, an act or omission of such other fiduciary, knowing such act or
omission is a breach;

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	 	(2)	 	by its failure to comply with ERISA Section 404(a)(1) in the
administration of its specific responsibilities which give rise to its status
as a fiduciary, it has enabled such other fiduciary to commit a breach; or
	 
	 	(3)	 	it has knowledge of a breach by such other fiduciary, unless it
makes reasonable efforts under the circumstances to remedy the breach.

	 	(m)	 	If the assets of the Plan are held by two (2) or more Trustees, each Trustee
will use reasonable care to prevent a co-Trustee from committing a breach of duty under
the Employee Retirement Income Security Act of 1974, as amended, and they shall jointly
manage and control the assets of the Plan; provided however, that such co-Trustee shall
be authorized to allocate specific responsibilities, obligations or duties among the
co-Trustees pursuant to a written agreement. If co-Trustees do enter into such an
agreement, then a Trustee to whom certain responsibilities, obligations or duties have
not been allocated shall not be liable either individually or as Trustee for any loss
resulting to the Plan arising from the acts or omissions on the part of another Trustee
to which such responsibilities, obligations or duties have been allocated.

13.13 Custodian

If a discretionary Trustee has been appointed, the Employer may appoint a Custodian as provided for
in the Adoption Agreement. A Custodian shall have the same rights, powers and duties as a
nondiscretionary Trustee. Any reference in the Plan to a Trustee is also a reference to the
Custodian unless the context indicates otherwise. Any limitation of the Trustee’s liability in the
Plan shall act as a limitation of the Custodian’s liability. Where a discretionary Trustee has
provided direction, any action taken by the Custodian satisfies the requirement in the Plan
referencing the Trustee taking that action. The resignation or removal of the Custodian shall be
made in accordance with paragraph 13.19 as though the Custodian were the Trustee. The Custodian
shall be responsible for the holding and safekeeping of all or a portion of the Plan’s assets. One
or more Custodian(s) appointed under this Plan may hold all or any portion of the Plan’s assets.
Such separate assets shall be held pursuant to the terms of a separate custodial agreement with
such Custodian. The separate custodial agreement shall be treated as an addendum and, as such, may
not conflict with any provision of this document. In addition, any provision of a separate
custodial agreement which would jeopardize the tax qualified status of this Defined Contribution
Plan shall be null and void. In addition to the holding and safekeeping of Plan assets, the
Custodian’s duties shall include:

	 	(a)	 	receiving contributions under the terms of the Plan, but not determining the
amount or enforcing the payment thereof,
	 
	 	(b)	 	making distributions from the Plan in accordance with instructions received
from the Plan Administrator or an authorized representative of the Employer,
	 
	 	(c)	 	keeping records reflecting its administration of the Trust or the custodial
account and making such records, statements and reports available to the Employer for
review and audit at such times as agreed to between the Custodian, Plan Administrator,
and the Employer, and
	 
	 	(d)	 	retaining and employing such attorneys, agents and servants as may be necessary
or desirable, in the opinion of the Custodian, in the administration of the Plan, and
to pay them such reasonable compensation for their services as may be agreed upon as an
expense of administration of the Plan, including power to employ and retain counsel
upon any matter of doubt as to the meaning or interpretation to be placed upon this
Plan or any provisions thereof with reference to any question arising in the
administration of the Plan or pertaining to the rights and liabilities of the Trustee
hereunder. The Custodian in any such event, any act in reliance upon the advice,
opinions, records, statements and computations of any attorneys and agents and on the
records, statements and computations of any servants so selected by it in good faith
shall be released and exonerated of and from all liability to anyone in so doing
(except to the extent that liability is imposed under ERISA).

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The Custodian’s duties shall be limited to those as agreed to between the Employer and the
Custodian. The Employer shall be responsible for any other administrative duties required under
the Plan or by applicable law.

13.14 Investment Alternatives Of The Custodian

	 	(a)	 	The Custodian shall hold any or all assets received from the Trustee or its
agents. If the Custodian holds title to Plan assets and such ownership requires action
on the part of the registered owner, such action will be taken by the Custodian only
upon receipt of specific instructions from the Trustee, or its designated agents or the
Named Investment Fiduciary. Proxies shall be voted by or pursuant to the express
direction of the Trustee its’ authorized agent or the Named Investment Fiduciary. The
Custodian shall not render any investment advice, including any opinion on the prudence
of directed investments. The Employer and Trustee and its agents thereof assume all
responsibility for adherence to fiduciary standards under ERISA, as amended, and the
Regulations issued thereunder.
	 
	 	(b)	 	Where the Sponsor serves as Custodian, the Trust shall only be invested in
investment alternatives the Custodian makes available in the ordinary course of
business unless the Custodian is directed otherwise by the Employer, the Trustee or any
properly designated agent thereof. The Custodian under applicable Federal or state
laws, may limit the investment alternatives including but not limited to savings
accounts, savings certificates, or in other savings instruments offered by the Sponsor
or its affiliates. Such investments shall be made at the direction of the Employer or
Trustee(s) or other Named Investment Fiduciary and the Custodian shall have no
responsibility for the propriety of such investments.

13.15 Prohibited Transactions

The Trustee, Custodian, Employer, investment manager, the Named Investment Fiduciary or Participant
shall not knowingly enter into any transaction, engage in any activity, or direct the purchase or
acquisition of any investment with respect to the Plan which would constitute a prohibited
transaction under ERISA or the Code for which a statutory or administrative exemption is not
available. The Trustee or Custodian shall not receive any investment advisory or other fees from a
regulated investment company (a mutual fund) which duplicates investment management fees charged by
the Trustee. The Trustee or Custodian shall be permitted to receive fees from a regulated
investment company if the Trustee or Custodian has made a good faith determination that the receipt
of such fees is not a prohibited transaction pursuant to any guidance or exemption issued by the
Department of Labor from time to time.

13.16 Exclusive Benefit Rules

No part of the Trust shall be used for, or diverted to, purposes other than for the exclusive
benefit of Participants, former Participants with a vested interest, and the Beneficiary or
Beneficiaries of deceased Participants who have in a vested interest in the Plan at death.

13.17 Assignment And Alienation Of Benefits 

Except as provided in paragraphs 12.9 or 12.11, no right or claim to, or interest in, any part of
the Plan, or any payment from the Plan, shall be assignable, transferable, or subject to sale,
mortgage, pledge, hypothecation, commutation, anticipation, garnishment, attachment, execution, or
levy of any kind. Neither the Trustee or Custodian shall recognize any attempt to assign,
transfer, sell, mortgage, pledge, hypothecate, commute, or anticipate the same, except to the
extent required by law. The preceding sentences shall also apply to the creation, assignment, or
recognition of a right to any benefit payable with respect to a Participant pursuant to a domestic
relations order, unless such order is determined to be a Qualified Domestic Relations Order, as
defined in Code Section 414(p), or any domestic relations order entered before January 1, 1985
which the Plan’s attorney and Plan Administrator deem to be qualified.

Notwithstanding any provision of this paragraph 13.17 to the contrary, an offset to a Participant’s
Vested Account Balance against an amount that the Participant is ordered or required to pay the
Plan with respect to a judgment, order or decree issued, or a settlement entered into, on or after
August 5, 1997, shall be permitted in accordance with Code Sections 401(a)(13)(C) and (D).

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13.18 Liquidation Of Assets

If the Trustee and/or Custodian must liquidate assets in order to make distributions, transfer
assets, or pay fees, expenses or taxes assessed against all or a part of the Trust, and the
Trustee/Custodian is not instructed as to the liquidation of such assets, assets will be liquidated
on a pro rata basis across all the investment alternatives in the Trust. The Trustee and /or
Custodian are expressly authorized to liquidate assets in order to satisfy the Trust’s obligation
to pay the Trustee and /or Custodian’s fees or other compensation if such fees or compensation is
not paid on a timely basis.

13.19 Resignation And Removal

The Trustee may resign upon thirty (30) days written notice to the Employer. The Employer may
remove the Trustee upon sixty (60) days written notice to the Trustee, or such shorter period of
time as may be agreed to by the parties. The Employer may discontinue its participation in this
Prototype Defined Contribution Plan effective upon thirty (30) days written notice to the Sponsor.
In such event the Employer shall, prior to the effective date thereof, amend the Plan to eliminate
any reference to this Prototype Defined Contribution Plan and appoint a successor
trustee/custodian. The Trustee shall deliver the Trust to its successor on the effective date of
the resignation or removal, or as soon thereafter as practicable, provided that this shall not
waive any lien the Trustee may have upon the Trust for its compensation or expenses. Following the
effective date of the notice of termination, the Trustee shall have no further responsibility for
providing services to the Employer or the Plan. If the Employer fails to amend the Plan and
appoint a successor trustee/custodian within the said thirty (30) days, or such longer period as
the Trustee may specify in writing, the Plan shall be deemed individually designed and the highest
ranking officer of the Employer shall be deemed the successor trustee or custodian as the case may
be. In such event, the Trustee may but shall not be required to continue to hold custody of the
assets of the Plan until such time as appropriate arrangements have been made for the security of
the Plan assets, but for a discretionary Trustee, upon notification thereof to Plan Participants,
shall no longer have any responsibility for the investment of Plan assets.

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ARTICLE XIV

TOP-HEAVY PROVISIONS

14.1 Applicability Of Rules

If the Plan [except in the case of a SIMPLE 401(k) Plan] is or becomes Top-Heavy in any Plan Year,
the provisions of this Article will supersede any conflicting provisions in the Basic Plan Document
#01 and accompanying Adoption Agreement.

14.2 Minimum Contribution

Notwithstanding any other provision in the Employer’s Plan, for any Plan Year in which the Plan is
Top-Heavy, the aggregate Employer contributions and forfeitures allocated on behalf of any
Participant (without regard to any Social Security contribution) under this Plan or a combination
of paired or non-paired Defined Contribution Plans and no Defined Benefit Plans which are
Top-Heavy, the Employer will contribute the lesser of 3% of such Participant’s Compensation or the
largest percentage of the Employer contributions and forfeitures, as a percentage of the Key
Employee’s Compensation, up to a maximum permitted under Code Section 401(a)(17), as indexed,
allocated on behalf of any Key Employee for that year.

	 	(a)	 	In any Limitation Year prior to January 1, 2000, if the Employer maintains or
maintained a Defined Benefit Plan which is not paired, the provisions of the
“Limitations on Allocations” section of the Adoption Agreement shall apply.
	 
	 	(b)	 	Each Participant who is employed by the Employer on the last day of the Plan
Year shall be entitled to receive an allocation of the Employer’s minimum contribution
for such Plan Year. The minimum allocation applies even though under other Plan
provisions the Participant would not otherwise be entitled to receive an allocation, or
would have received a lesser allocation for the year because the Participant fails to
make required contributions to the Plan, the Participant’s Compensation is less than a
stated amount, or the Participant fails to complete one-thousand (1,000) Hours of
Service (or such lesser number designated by the Employer in the Adoption Agreement)
during the Plan Year. A paired profit-sharing Plan designated to provide the Top-Heavy
minimum contribution must do so regardless of profits. An Employer may elect in the
Adoption Agreement by resolution or by Plan amendment whether the Top-Heavy minimum
Contribution will be made to all Participants or just non-Key Employees.

The Top-Heavy minimum contribution does not apply to any Participant to the extent the Participant
is covered under any other plan(s) of the Employer and the Employer has provided in the Adoption
Agreement that the minimum allocation or benefit requirements applicable to this Plan will be
satisfied in the other plan(s).

If a Key Employee makes an Elective Deferral or has an allocation of Matching Contributions
credited to his or her account, a Top-Heavy minimum contribution will be required for non-Key
Employees who are Participants. For purposes of satisfying the Top-Heavy minimum contribution
requirement, Elective Deferrals and Matching Contributions are not taken into account.

14.3 Minimum Vesting

For any Plan Year during which this Plan is Top-Heavy, the minimum vesting schedule selected by the
Employer in the Adoption Agreement will automatically apply to the Plan. If the vesting schedule
elected by the Employer in the Adoption Agreement is less liberal than the allowable schedule, the
schedule will automatically shift to a vesting schedule which satisfies the Top-Heavy minimum
requirements. If the vesting schedule under the Employer’s Plan shifts in or out of the Top-Heavy
schedule for any Plan Year, such shift is an amendment to the vesting schedule and the election in
paragraph 9.9 of the Basic Plan Document #01 applies. The minimum vesting schedule applies to all
accrued benefits within the meaning of Code Section 411(a)(7) except those attributable to Employee
contributions, including benefits accrued before the effective date of Code Section 416 and
benefits accrued before the Plan became Top-Heavy. No reduction in vested benefits may occur in
the event the Plan’s status as Top-Heavy changes for any Plan Year. This paragraph does not apply
to the account balances of any Employee who does not have one

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(1) Hour of Service after the Plan initially becomes Top-Heavy and such Employee’s account balance
attributable to Employer contributions and forfeitures will be determined without regard to this
paragraph.

14.4 Limitations On Allocations

In any Limitation Year beginning prior to January 1, 2000 in which the Top-Heavy Ratio exceeds
90% (i.e., the Plan becomes Super Top-Heavy), the denominators of the Defined Benefit Fraction and
Defined Contribution Fraction shall be computed using 100% of the dollar limitation instead of
125%.

14.5 Use Of Safe Harbor Contributions To Satisfy Top-Heavy Contribution Rules

If elected in the Adoption Agreement, a 3% Safe Harbor Non-Elective Contribution allocated to all
eligible Employees may be used to satisfy the minimum contribution requirement for a Top-Heavy
Plan. A Safe Harbor Matching Contribution may not be used to satisfy the minimum contribution
requirement for a Top-Heavy Plan.

14.6 Top-Heavy Rules For SIMPLE 401(k) Plans

A SIMPLE 401(k) Plan is not treated as a Top-Heavy Plan under Code Section 416 for any year for
which this article applies.

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ARTICLE XV

AMENDMENT AND TERMINATION

15.1 Amendment By Sponsor

The Sponsor may amend any or all provisions of this Prototype Defined Contribution Plan at any time
without obtaining the approval or consent of any Employer which has adopted this Plan and Trust
provided that no amendment shall authorize or permit any part of the corpus or income of the Plan
to be used for or diverted to purposes other than for the exclusive benefit of Participants and
their Beneficiaries, or eliminate an optional form of distribution. For purposes of Sponsor
amendments, the mass submitter of this Basic Plan Document #01 shall be recognized as the agent of
the Sponsor. If the Sponsor does not adopt the amendments made by the mass submitter, it will no
longer be identical to or a minor modifier of the mass submitter plan.

15.2 Amendment By Employer  

The Employer may amend any option in the Adoption Agreement, and may include language as permitted
in the Adoption Agreement to satisfy Code Section 415 or to avoid duplication of minimums under
Code Section 416 because of the required aggregation of multiple plans. The Employer may also
adopt certain model amendments published by the Internal Revenue Service which specifically provide
that their adoption will not cause the Plan to be treated as an individually designed plan for
which the Employer must obtain a separate determination letter. An Employer that amends the Plan
for any other reason, including a waiver of the minimum funding requirement under Code Section
412(d), will no longer participate in this Prototype Plan program and will be considered an
individually designed Plan. In such event, all references to the institution or company as Sponsor
shall be deemed null and void.

15.3 Protected Benefits

An amendment (including the adoption of this Plan as a restatement of an existing Plan) may not
decrease a Participant’s accrued benefit or account balance except to the extent permitted under
Code Section 412(c)(8), and may not reduce or eliminate a Code Section 411(d)(6) protected benefit
(except as provided by the Code or the Regulations issued thereunder) determined immediately prior
to the date of adoption, or if later, the Effective Date of the amendment. Where this Plan is
being adopted to amend another plan that contains a protected benefit not provided for in this
document, the Employer may attach an addendum to the Adoption Agreement that describes such
protected benefit which shall be incorporated in the Plan.

15.4 Plan Termination  

The Employer shall have the right to terminate its Plan at any time. The Sponsor of this Prototype
Defined Contribution Plan is to be given sixty (60) days notice in writing of the Employer’s intent
to terminate or transfer the assets of the Plan. If the Plan is terminated, partially terminated,
or if there is a complete discontinuance of contributions under a profit-sharing plan maintained by
the Employer, all amounts credited to the accounts of Participants shall vest and become
nonforfeitable. In the event of a partial termination, only those who are affected by such partial
termination shall be fully vested. In the event of termination, the Plan Administrator shall
direct the Trustee or the Custodian as applicable with respect to the distribution of accounts to
or for the exclusive benefit of Participants or their Beneficiaries. Such distribution shall be
made directly to Participants or, at the direction of the Participant, may be transferred directly
to another Eligible Retirement Plan or individual retirement account. In the absence of an
election by a Participant who has received notice from the Plan Administrator under paragraph 6.11,
the Plan Administrator may direct the Trustee or Custodian to transfer the Participant’s benefit to
another Defined Contribution Plan maintained by the Employer, other than an employee stock
ownership plan. If the Employer does not maintain another Defined Contribution Plan, the Plan
Administrator may direct the Trustee or Custodian to transfer the Participant’s benefit to an
individual retirement account with an institution selected by the Plan Administrator, or make a
distribution pursuant to paragraph 7.15. Prior to making any distribution, the Plan Administrator
shall establish in a manner acceptable to the Trustee or Custodian, that the Plan has received a
favorable determination letter from the Internal Revenue Service approving the Plan termination and
authorizing the distribution of benefits to Plan Participants. In the absence of such
determination letter, the Trustee or Custodian may agree to make distributions to Participants if
the Plan Administrator represents that the applicable requirements, if any, of ERISA and the Code
governing the termination of employee benefit plans have been or are being complied with or that
appropriate authorizations, waivers, exemptions, or variances have been or are being obtained.

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15.5 Distribution Restrictions Under A Code Section 401(k) Plan

If the Employer’s Plan includes a cash or deferred arrangement or if transferred assets described
in paragraph 6.13 are subject to the distribution restrictions of Code Sections 401(k)(2) and
401(k)(10), the special distribution provisions of this paragraph apply. The portion of the
Participant’s Vested Account Balance attributable to Elective Deferrals (or to amounts treated
under the cash or deferred arrangement as Elective Deferrals) is not distributable on account of
Plan termination, as described in this paragraph, unless:

	 	(a)	 	the Participant otherwise is entitled under the Plan to a distribution of that
portion of the Vested Account Balance, or

the Plan termination occurs without the establishment of a successor Plan. A
successor Plan under subparagraph (b) is a Defined Contribution Plan other than an
employee stock ownership plan [as defined in Code Section 4975(e)(7)], a Simplified
Employee Pension Plan [as defined in Code Section 408(k)], or a SIMPLE IRA Plan [as
defined in Code Section 408(p)] maintained by the Employer (or by a related
Employer) at the time of the termination of the Plan or within the period ending
twelve (12) months after the final distribution of assets. A distribution pursuant
to this subparagraph (b), must be part of a lump sum distribution(s) to the
Participant of his Vested account balance.

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

	 	(d)	 	In connection with the disposition by an Employer of less than 85% of the
assets used by the Employer in a trade or business to an unrelated entity, distribution
of the entire Vested Account Balance of an Participant who continues employment with
the acquirer will, if so agreed to by the Employer, be made to the Participant in a
single lump sum. This paragraph shall apply if the acquirer does not maintain the
Plan after disposition and only if such Employee’s change in employment status
constitutes a “separation from Service” within the meaning of Code Section
401(k)(2)(b)(i)(I).

15.6 Qualification Of Employer’s Plan

If the adopting Employer fails to obtain or retain applicable Internal Revenue Service
qualification as a Prototype Plan, such Employer’s Plan shall no longer participate in this
Prototype Defined Contribution Plan and will be considered an individually designed plan.

15.7 Mergers And Consolidations

	 	(a)	 	In the case of any merger or consolidation of the Employer’s Plan with, or
transfer of assets or liabilities of the Employer’s Plan to any other plan,
Participants in the Employer’s Plan shall be entitled to receive benefits immediately
after the merger, consolidation, or transfer which are equal to or greater than the
benefits they would have been entitled to receive immediately before the merger,
consolidation, or transfer if the Plan had then terminated.
	 
	 	(b)	 	Any corporation into which the Trustee, Custodian or any successor thereto may
be merged or with which it may be consolidated, or any corporation resulting from any
merger or consolidation to which the Trustee, Custodian or any successor thereto may be
a party, or any corporation to which all or substantially all the business of the
Trustee, Custodian or any successor thereto may be transferred, shall automatically be
the successor without the filing of any instrument or performance of any further act,
before any court.

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15.8 Qualification Of Prototype

The Sponsor intends that this Prototype Defined Contribution Plan will meet the requirements of the
Code as a qualified Defined Contribution Plan. Should the Commissioner of Internal Revenue or any
delegate of the Commissioner at any time determine that the Prototype Defined Contribution Plan
fails to meet the requirements of the Code, the Sponsor will amend the Basic Plan Document #01 as
necessary to maintain its qualified status.

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ARTICLE XVI

GOVERNING LAW

16.1 Governing Law

Construction, validity and administration of the Prototype Defined Contribution Plan and any
Employer Plan established under the terms of this Plan and accompanying Adoption Agreement, shall
be governed by Federal law to the extent applicable and to the extent not applicable by the laws of
the State or Commonwealth in which the principal office of the Prototype Sponsor or its affiliate
is located.

16.2 State Community Property Laws

The terms and conditions of the Prototype Defined Contribution Plan and any Employer’s Plan
established under the terms of this Basic Plan Document #01 and accompanying Adoption Agreement
shall be applicable without regard to community property laws of any state.

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10/02

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IRS MODEL AMENDMENT

With respect to distributions under the Plan made for calendar years beginning on or after:

	 	 	 
	[    ]

	 	January 1, 2001
	 
	 	 
	[   ]

	 	January 1, 2002

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

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AMENDMENT TO THE PROTOTYPE DEFINED CONTRIBUTION PLAN BASIC PLAN DOCUMENT #01

The Employer named in the Adoption Agreement hereby amends the Plan to reflect certain provisions
of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This amendment is
intended as a good faith compliance with the requirements of EGTRRA and is to be construed in
accordance with EGTRRA and guidance issued thereunder. This amendment shall supersede the
provisions of the Basic Plan Document #01 to the extent those provisions are inconsistent with the
provisions of this amendment. The Basic Plan Document #01 is hereby amended as follows:

	1.	 	Paragraph 1.16 of the Basic Plan Document #01 entitled “Compensation”, under the paragraph
entitled “Limitation on Compensation” is amended effective for Plan Years beginning after
December 31, 2001, by the addition of the following three sentences at the end of the
paragraph:
	 
	 	 	“The annual Compensation of each Participant taken into account in determining allocations
for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted
for cost-of-living increases in accordance with Code Section 401(a)(17)(B). Annual
Compensation means Compensation during the Plan Year or such other consecutive 12-month
period over which Compensation is otherwise determined under the Plan (the determination
period). The cost-of-living adjustment in effect for a calendar year applies to annual
Compensation for the determination period that begins with or within such calendar year.”
	 
	2.	 	Paragraph 1.55 of the Basic Plan Document #01 entitled “Key Employee”, is deleted in its
entirety and replaced with the following for Plan Years beginning after December 31, 2001:
	 
	 	 	“1.55 Key Employee Key Employee means any Employee or former Employee (including any
deceased Employee) who at any time during the Plan Year that includes the determination date
was an officer of the Employer having annual Compensation greater than $130,000 [as adjusted
under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002], a five
percent (5%) owner of the Employer, or a one percent (1%) owner of the Employer having
annual Compensation of more than $150,000. For this purpose, annual Compensation means
Compensation within the meaning of Code Section 415(c)(3). The determination of who is a
Key Employee will be made in accordance with Code Section 416(i)(1) and the applicable
Regulations and other guidance of general applicability issued thereunder.”

	 	 	3. Paragraph 4.4 of the Basic Plan Document #01 entitled “Rollover Contributions”, is amended by
the addition of the following paragraph (g) which shall read as follows:

	 	“(g)	 	 If elected by the Employer in the Adoption Agreement, the Plan will accept
Participant Rollover Contributions and/or Direct Rollovers of distributions made after
December 31, 2001, from the types of plans specified in the Adoption Agreement,
beginning on the Effective Date specified in the Adoption Agreement.”

	4.	 	Paragraph 4.7 of the Basic Plan Document #01 entitled “Elective Deferrals in a 401(k) Plan”,
is amended by the addition of two new paragraphs (g) and (h) which shall read as follows:

	 	“(g)	 	 No Participant shall be permitted to have Elective Deferrals made under this
Plan, or any other Qualified Plan maintained by the Employer during any taxable year,
in excess of the dollar limitation contained in Code Section 402(g) in effect for such
taxable year, except to the extent permitted under subparagraph (h) below and Code
Section 414(v), if applicable.
	 
	 	 	 	If elected by the Employer in the Adoption Agreement, all Employees who are eligible
to make Elective Deferrals under this Plan and who have attained age fifty (50)
before the close of the Plan Year shall be eligible to make catch-up contributions
in accordance with, and subject to the limitations of, Code Section 414(v). Such
catch-up contributions shall not be taken into account for purposes of the
provisions of the Plan implementing the required limitations of Code Sections 402(g)
and 415. The Plan shall not be treated as failing to satisfy the provisions of the
Plan implementing the requirements of Code Sections 401(k)(3), 401(k)(11),
401(k)(12), 410(b), or 416, as applicable, by reason of the making of such catch-up
contributions.

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	 	 	Paragraph 4.8 of the Basic Plan Document #01 entitled “Elective Deferrals in a SIMPLE 401(k)
Plan” is amendment by the addition of two new paragraphs (j) and (k) which shall read as
follows:

	 	“(j)	 	 Except to the extent permitted under subparagraph (k) below, the Adoption
Agreement, EGTRRA §631 and Code Section 414(v), the maximum salary reduction
contribution that can be made to this Plan is the amount determined under Code Section
408(p)(2)(A)(ii) for the calendar year.
	 
	 	(k)	 	If elected by the Employer in the Adoption Agreement, all Employees who are
eligible to make Elective Deferrals under this Plan and who have attained age fifty
(50) before the close of the Plan Year shall be eligible to make catch-up contributions
in accordance with, and subject to the limitations of, Code Section 414(v). Such
catch-up contributions shall not be taken into account for purposes of the provisions
of the Plan implementing the required limitations of Code Sections 401(k)(11),
408(p)(2)(A)(ii), 410(b) and 415(c) as applicable, by reason of the making of such
catch-up contributions.”

	 	 	Effective as of the date set forth in the Adoption Agreement Section entitled “Distribution
Upon Severance from Employment”, paragraph 6.3 of the Basic Plan Document #01 entitled
“Benefits on Termination of Employment “ is amended by the addition of paragraphs (i) and
(j) which shall read as follows:

	 	“(i)	 	 If elected by the Employer in the Adoption Agreement, this paragraph shall
apply for distributions and severances from employment occurring after the dates
specified in the Adoption Agreement.
	 
	 	 	 	A Participant’s Elective Deferrals, Qualified Non-Elective Contributions, Qualified
Matching Contributions, and earnings attributable to these contributions shall be
distributed on account of the Participant’s severance from employment. However,
such a distribution shall be subject to the other provisions of the Plan regarding
distributions, other than provisions that require a separation from Service before
such amounts may be distributed.
	 
	 	(j)	 	If elected by the Employer in the Adoption Agreement, the value of a
Participant’s nonforfeitable account balance shall be determined without regard to that
portion of the account balance that is attributable to rollover contributions (and the
earnings allocable thereto) within the meaning of Code Sections 402(c), 403(a)(4),
403(b)(8), 408(d)(3)(A)(ii) and 457(e)(16). If the value of the Participant‘s
nonforfeitable account balance as so determined is $5,000 or less, the Plan shall
immediately distribute the Participant’s entire nonforfeitable account balance.”

	7.	 	Effective as of the date set forth in the Adoption Agreement Section entitled “Distribution
Upon Severance from Employment”, paragraph 6.6 of the Basic Plan Document #01 entitled
“Commencement of Benefits”, is amended by the addition of paragraph (d) which shall read as
follows:

	 	“(d)	 	 If elected by the Employer in the Adoption Agreement, this paragraph shall
apply for distributions and severances from employment occurring after the dates
specified in the Adoption Agreement.
	 
	 	 	 	A Participant’s Elective Deferrals, Qualified Non-Elective Contributions, Qualified
Matching Contributions, and earnings attributable to these contributions shall be
distributed on account of the Participant’s severance from employment. However,
such a distribution shall be subject to the other provisions of the Plan regarding
distributions, other than provisions that require a separation from Service before
such amounts may be distributed.”

	8.	 	The following new paragraph (c) is added to paragraph 6.7 of the Basic Plan Document #01
entitled “Transitional Rules for Cash-Out Limits” and shall apply if elected by the Employer
in the Adoption Agreement and be effective as specified in the Adoption Agreement.

	 	“(c)	 	 If elected by the Employer in the Adoption Agreement, for purposes of this
paragraph 6.7, the value of a Participant’s nonforfeitable account balance shall be
determined without regard to that portion of the account balance that is attributable
to Rollover Contributions (and the earnings allocable thereto) within the meaning of
Code Sections 402(c), 403(a)(4), 403(b)(8),

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	 	 	 	408(d)(3)(A)(ii), and 457(e)(16). If the value of the Participant’s nonforfeitable
account balance as so determined is $5,000 or less, the Plan shall immediately
distribute the Participant’s entire nonforfeitable account balance.”

	9.	 	Paragraph 6.9 of the Basic Plan Document #01 entitled “Hardship Withdrawals”, is amended
effective January 1, 2002 by the addition of the following paragraph (d):

	 	 	 	“(d) A Participant who receives a distribution after December 31, 2001, on account
of Hardship shall be prohibited from making Elective Deferrals and Voluntary After-tax
Contributions under this and all other Plans of the Employer for six (6) months after
receipt of the distribution. A Participant who receives a distribution in calendar
year 2001 on account of Hardship shall be prohibited from making Elective Deferrals and
Voluntary After-tax Contributions under this and all other Plans of the Employer for
the period specified by the Employer in the Adoption Agreement.”

	 	 	The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a
participant who has received a Hardship distribution in calendar year 2001.
	 
	10.	 	Paragraph 6.10 of the Basic Plan Document #01 entitled “Direct Rollover of Benefits”, is
amended effective January 1, 2002 by the addition of the following paragraph (e):

	 	 	 	“(e) This paragraph shall apply only to distributions made after December 31, 2001.
For purposes of the Direct Rollover provisions in paragraph 6.10 of the Plan, an
Eligible Retirement Plan shall also mean an annuity contract described in Code Section
403(b) and an eligible plan under Code Section 457(b) which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state which agrees to separately account for amounts
transferred into such plan from this Plan. The definition of Eligible Retirement Plan
shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or
former Spouse who is the alternate payee under a Qualified Domestic Relations Order, as
defined in Code Section 414(p).
	 
	 	 	 	For purposes of the Direct Rollover provisions in paragraph 6.10 of the Plan, any
amount that is distributed on account of Hardship shall not be an Eligible Rollover
Distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an Eligible Retirement Plan.
	 
	 	 	 	For purposes of the Direct Rollover provisions in paragraph 6.10 of the Plan, a
portion of the distribution shall not fail to be an Eligible Rollover Distribution
merely because the portion consists of Voluntary After-tax Contributions which are
not includible in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in Code Section 408(a) or (b), or
to a qualified Defined Contribution Plan described in Code Section 401(a) or 403(a)
that agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross income
and the portion of such distribution which is not so includible.”

	11.	 	Article IX of Basic Plan Document #01 entitled “VESTING”, is hereby amended effective for the
first Plan Year beginning after December 31, 2001, by adding a new paragraph 9.12 entitled
“Vesting of Employer Matching Contributions” which shall read as follows:
	 
	 	 	“9.12 Vesting Of Employer Matching Contributions
	 
	 	 	This section shall apply to Participants with an account balance derived from Employer
Matching Contributions who complete an Hour of Service under the Plan in a Plan Year
beginning after December 31, 2001. If elected by the Employer in the Adoption Agreement,
this section shall also apply to all other Participants with an account balance derived from
Employer Matching Contributions.
	 
	 	 	A Participant’s account balance derived from Employer Matching Contributions shall vest as
provided in Section XIII(E) of the Adoption Agreement if elected.”

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	12.	 	Article X of Basic Plan Document #01 entitled “LIMITATIONS ON ALLOCATIONS”, is amended by the
addition of the following paragraph 10.6 entitled “Annual Additions” which shall read as
follows:
	 
	 	 	“10.6 Annual Additions
	 
	 	 	Except to the extent permitted under Section 4.7(h) of Basic Plan Document #01 and under
Code Section 414(v), the Annual Addition that may be contributed or allocated to a
Participant’s account under the Plan for any Limitation Year beginning after December 31,
2001 shall not exceed the lesser of:

	 	(a)	 	$40,000, as adjusted for increases in the cost-of-living under
Code Section 415(d), or
	 
	 	(b)	 	100% of the Participant’s Compensation, within the meaning of
Code Section 415(c)(3), for the Limitation Year.

	 	 	The Compensation limit referred to in (b) above shall not apply to any contribution for
medical benefits after separation from Service [within the meaning of Code Section 401(h) or
Code Section 419A(f)(2)] which is otherwise treated as an Annual Addition.”
	 
	13.	 	Effective for Plan Years beginning after December 31, 2001, paragraph 11.7(b) of the Basic
Plan Document #01 is amended by the deletion of this paragraph which outlines the multiple use
test described in Treasury Regulations Section 1.401(m)-2.
	 
	14.	 	Paragraph 12.9 of the Basic Plan Document #01 entitled “Participant Loans” is amended
effective January 1, 2001 by deleting the language at subsection (i) and replacing it with the
following:

	 	“(i)	 	 Effective for Plan loans made after December 31, 2001, Plan provisions
prohibiting loans to any Owner-Employee or Shareholder Employee shall cease to apply.”

	15.	 	Paragraph 14.2 of the Basic Plan Document #01 entitled “Minimum Contribution” is amended for
Plan Years beginning after December 31, 2001 by the addition of the following two new
subparagraphs at the end of the paragraph which shall read as follows:
	 
	 	 	“Matching Contributions — Employer Matching Contributions shall be taken into account for
purposes of satisfying the minimum contribution requirements of Code Section 416(c)(2). The
preceding sentence shall apply with respect to Matching Contributions under the Plan or, if
the Plan provides that the minimum contribution requirement shall be met in another plan,
such other plan. Employer Matching Contributions that are used to satisfy the minimum
contribution requirements shall be treated as Matching Contributions for purposes of the
Actual Contribution Percentage Test and other requirements of Code Section 401(m).
	 
	 	 	Contributions Under Other Plans — The Employer may provide in the Adoption Agreement that
the minimum benefit requirement shall be met in another plan, including another plan that
consists solely of a cash or deferred arrangement which meets the requirements of Code
Section 401(k)(12) and Matching Contributions which meet the requirements of Code Section
401(m)(11).”
	 
	16.	 	The Top-Heavy requirements of Code Section 416 and Article XIV of the Basic Plan Document #01
shall not apply in any Plan Year beginning after December 31, 2001, in which the Plan
established under the Basic Plan Document #01 consists solely of a cash or deferred
arrangement which meets the requirements of Code Section 401(k)(12) and Matching Contributions
which meet the requirements of Code Section 401(m)(11).
	 
	 	 	This paragraph shall apply for purposes of determining whether the Plan is a Top-Heavy Plan
under Code Section 416(g) for Plan Years beginning after December 31, 2001, and whether the
Plan satisfies the minimum benefits requirements of Code Section 416(c) for such years.
This section amends Article XIV of the Basic Plan Document #01 by adding paragraph 14.7
entitled “Determination of Top-Heavy Status”. The paragraph shall read as follows:

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	 	 	“14.7 Determination Of Top-Heavy Status

	 	(a)	 	Determination of Present Values and Amounts — This paragraph
14.7 shall apply for purposes of determining the Present Values of accrued
benefits and the amounts of account balances of Employees as of the Top-Heavy
Determination Date.
	 
	 	(b)	 	Distributions During the Plan Year Ending on the Top-Heavy
Determination Date — The Present Value of accrued benefits and the amounts of
account balances of an Employee as of the Top-Heavy Determination Date shall be
increased by the distributions made with respect to the Employee under the Plan
and any plan aggregated with this Plan under Code Section 416(g)(2) during the
1-year period ending on the Top-Heavy Determination Date. The preceding
sentence shall also apply to distributions under a terminated plan which, had
it not been terminated, would have been aggregated with this Plan under Code
Section 416(g)(2)(A)(i). In the case of a distribution made for a reason other
than separation from Service, death, or Disability, this provision shall be
applied by substituting “5-year period” for “1-year period”.
	 
	 	 	 	Employees Not Performing Services During the Plan Year Ending on the
Top-Heavy Determination Date — The accrued benefits and accounts of any
individual who has not performed services for the Employer during the 1
-year period ending on the Top-Heavy Determination Date shall not be taken
into account.”

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MINIMUM DISTRIBUTION REQUIREMENTS MODEL AMENDMENT

TO THE

PROTOTYPE DEFINED CONTRIBUTION PLAN BASIC PLAN DOCUMENT #01

The Employer named in the Adoption Agreement hereby amends the Plan to reflect certain provisions
of the final Regulations issued under Code Section 401(a)(9). This amendment is intended as a good
faith compliance with the requirements of the Regulations and is to be construed in accordance
with the guidance issued thereunder. Except as otherwise provided, this amendment shall be
effective as of the first day of the first Plan Year beginning after December 31, 2001. This
amendment shall supersede the provisions of the Basic Plan Document #01 to the extent those
provisions are inconsistent with the provisions of this amendment. The Basic Plan Document #01 is
hereby amended as follows:

ARTICLE XVII

MINIMUM DISTRIBUTION REQUIREMENTS

17.1 Effective Date

Unless an earlier effective date is specified in the Adoption Agreement, the provisions of this
Article will apply for purposes of determining required minimum distributions for calendar years
beginning with the 2003 calendar year.

17.2 Coordination With Minimum Distribution Requirements Previously In Effect

If the Adoption Agreement specifies an effective date of this Article that is earlier than calendar
years beginning with the 2003 calendar year, required minimum distributions for 2002 under this
Article will be determined as follows. If the total amount of 2002 required minimum distributions
under the Plan made to the distributee prior to the effective date of this Article equals or
exceeds the required minimum distributions determined under this Article, then no additional
distributions will be required to be made for 2002 on or after such date to the distributee. If
the total amount of 2002 required minimum distributions under the Plan made to the distributee
prior to the effective date of this Article are less than the amount determined under this Article,
then required minimum distributions for 2002 on and after such date will be determined so that the
total amount of required minimum distributions for 2002 made to the distributee will be the amount
determined under this Article.

17.3 Precedence

The requirements of this Article will take precedence over any inconsistent provisions of the Plan.

17.4 Requirements Of Treasury Regulations Incorporated

All distributions required under this Article will be determined and made in accordance with the
Treasury Regulations under Code §401(a)(9).

17.5 TEFRA Section 242(b)(2) Elections

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

17.6 Required Beginning Date

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

17.7 Death Of Participant Before Distributions Begin

If the Participant dies before distributions begin, the Participant’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

	 	(a)	 	If the Participant’s surviving Spouse is the Participant’s sole designated
Beneficiary, then, except as provided in the Adoption Agreement, distributions to the
surviving Spouse will begin by December 31 of the calendar year immediately following
the calendar year in which the Participant died, or by December 31 of the calendar year
in which the Participant would have attained age 701/2, if later.

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	 	(b)	 	If the Participant’s surviving Spouse is not the Participant’s sole designated
Beneficiary, then, except as provided in the Adoption Agreement, distributions to the
designated Beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died.
	 
	 	(c)	 	If there is no designated Beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.
	 
	 	(d)	 	If the Participant’s surviving Spouse is the Participant’s sole designated
Beneficiary and the surviving Spouse dies after the Participant but before
distributions to the surviving Spouse begin, this paragraph 17.7, other than paragraph
17.7(a), will apply as if the surviving Spouse were the Participant.

For purposes of this paragraph and paragraphs 17.11 and 17.12, unless paragraph 17.7(d) applies,
distributions are considered to begin on the Participant’s Required Beginning Date. If paragraph
17.7(d) applies, distributions are considered to begin on the date distributions are required to
begin to the surviving Spouse under paragraph 17.7(a). If distributions under an annuity purchased
from an insurance company irrevocably commence to the Participant before the Participant’s Required
Beginning Date [or to the Participant’s surviving Spouse before the date distributions are required
to begin to the surviving Spouse under paragraph 17.7(a)], the date distributions are considered to
begin is the date distributions actually commence.

17.8 Forms Of Distributions

Unless the Participant’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the Required Beginning Date, as of the First
Distribution Calendar Year distributions will be made in accordance with paragraph 17.9 through
paragraph 17.12 of this Article. If the Participant’s interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder will be made in accordance
with the requirements of Code Section 401(a)(9) of the Treasury Regulations.

17.9 Amount of Required Minimum Distribution For Each Distribution Calendar Year

During the Participant’s lifetime, the minimum amount that will be distributed for each
Distribution Calendar Year is the lesser of:

	 	(a)	 	the quotient obtained by dividing the Participant’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of
the Treasury Regulations, using the Participant’s age as of the Participant’s birthday
in the Distribution Calendar Year; or
	 
	 	(b)	 	if the Participant’s sole designated Beneficiary for the distribution calendar
year is the Participant’s Spouse, the quotient obtained by dividing the Participant’s
account balance by the number in the Joint and Last Survivor Table set forth in Section
1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s and Spouse’s
attained ages as of the Participant’s and Spouse’s birthdays in the Distribution
Calendar Year.

17.10 Lifetime Required Minimum Distributions Continue Through Year Of Participant’s Death

Required minimum distributions will be determined under this paragraph and paragraph 17.9 beginning
with the first Distribution Calendar Year and up to and including the Distribution Calendar Year
that includes the Participant’s date of death.

17.11 Death On Or After Distributions Begin

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

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	 	(1)	 	The Participant’s remaining life expectancy is calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.
	 
	 	(2)	 	If the Participant’s surviving Spouse is the Participant’s sole
designated Beneficiary, the remaining life expectancy of the surviving Spouse
is calculated for each Distribution Calendar Year after the year of the
Participant’s death using the surviving Spouse’s age as of the Spouse’s
birthday in that year. For Distribution Calendar Years after the year of the
surviving Spouse’s death, the remaining life expectancy of the surviving Spouse
is calculated using the age of the surviving Spouse as of the Spouse’s birthday
in the calendar year of the Spouse’s death, reduced by one for each subsequent
calendar year.
	 
	 	(3)	 	If the Participant’s surviving Spouse is not the Participant’s
sole designated Beneficiary, the designated Beneficiary’s remaining life
expectancy is calculated using the age of the Beneficiary in the year following
the year of the Participant’s death, reduced by one for each subsequent year.

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

17.12 Death Before Date Distributions Begin

	 	(a)	 	Participant Survived By Designated Beneficiary —  Except as provided in the
Adoption Agreement, if the Participant dies before the date distributions begin and
there is a designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the quotient
obtained by dividing the Participant’s account balance by the remaining life expectancy
of the Participant’s designated Beneficiary, determined as provided in paragraph 17.11.
	 
	 	(b)	 	No Designated Beneficiary —  If the Participant dies before the date
distributions begin and there is no designated Beneficiary as of September 30 of the
year following the year of the Participant’s death, distribution of the Participant’s
entire interest will be completed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death.
	 
	 	(c)	 	Death Of Surviving Spouse Before Distributions To Surviving Spouse Are Required
To Begin —  If the Participant dies before the date distributions begin, the
Participant’s surviving Spouse is the Participant’s sole designated Beneficiary, and
the surviving Spouse dies before distributions are required to begin to the surviving
Spouse under paragraph 17.7(a), this paragraph 17.12 will apply as if the surviving
Spouse were the Participant.

17.13 Designated Beneficiary

The individual who is designated as the Beneficiary under paragraph 1.13 of the Basic Plan Document
#01 and is the designated Beneficiary under Code Section 401(a)(9) and Section 1.401(a)(9)-1,
Q&A-4, of the Treasury Regulations.

17.14 Distribution Calendar Year

A calendar year for which a minimum distribution is required. For distributions beginning before
the Participant’s death, the First Distribution Calendar Year is the calendar year immediately
preceding the calendar year which contains the Participant’s Required Beginning Date. For
distributions beginning after the Participant’s death, the First Distribution Calendar Year is the
calendar year in which distributions are required to begin under paragraph 17.7. The required
minimum distribution for the Participant’s First Distribution Calendar Year will be made on or
before the Participant’s Required Beginning Date. The required minimum distribution for other
Distribution Calendar Years, including the required minimum distribution for the Distribution
Calendar Year in which the

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Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
Distribution Calendar Year.

17.15 Life Expectancy

Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the
Treasury Regulations.

17.16 Participant’s Account Balance

The account balance as of the last Valuation Date in the calendar year immediately preceding the
Distribution Calendar Year (Valuation Calendar Year) increased by the amount of any contributions
made and allocated or forfeitures allocated to the account balance as of dates in the Valuation
Calendar Year after the Valuation Date and decreased by distributions made in the Valuation
Calendar Year after the Valuation Date. The account balance for the Valuation Calendar year
includes any amounts rolled over or transferred to the Plan either in the Valuation Calendar Year
or in the Distribution Calendar Year if distributed or transferred in the Valuation Calendar Year.

17.17 Required Beginning Date

The date specified in paragraph 1.88 of the Basic Plan Document #01.

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CODE SECTION 125 MODEL AMENDMENT

The following is a model amendment that a sponsor of a qualified plan may choose to adopt if the
Employer sponsor maintains a health program in conjunction with a §125 arrangement but permits an
Employee to elect cash in lieu of group health coverage, only if the Employee is able to certify
that he or she has other health coverage. The use of this amendment will generally also apply to
the definition of Compensation for purposes of Code §414(s) unless the plan otherwise specifically
excludes all amounts described in Code §414(s)(2).

A prototype plan may be amended by the document’s Sponsor to use the alternative definition of
Compensation to the extent authorized. Alternatively, adopting Employers may adopt a Plan
amendment as an addendum to the Plan. The inclusion of the Model Plan Amendment below as an
addendum to a Plan adopted to comply with EGTRRA, will not cause a prototype Plan to be treated as
an individually designed plan. A Plan Sponsor that adopts the Model Amendment verbatim (or with
only minor changes) will have reliance that the form of its Plan satisfies the requirements of this
Revenue Ruling, and the adoption of such an amendment will not adversely affect the Plan Sponsor’s
or the adopting Employer’s reliance on a favorable determination, or opinion letter.

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IRS MODEL AMENDMENT CODE SECTION 125 “DEEMED CONTRIBUTIONS”

PROTOTYPE DEFINED CONTRIBUTION PLAN

BASIC PLAN DOCUMENT #01

Pursuant to Article XV, paragraph 15.1 of the Prototype Basic Plan Document #01 and in accordance
with Revenue Ruling 2002-27, the Basic Plan Document #01 is amended as follows effective for Plan
Years and Limitation Years beginning on or after January 1, 2002, except that, for any such
Employer sponsors of the Plan who operated the Plan in accordance with the definition below prior
to January 1, 2002 and in Plan Years beginning on or after January 1, 1998, such amendment is also
effective for all years during such period in which the Plan operated in accordance with this
definition.

For purposes of the definition of Compensation under paragraph 1.16, amounts under Code Section 125
include any amounts not available to a Participant in cash in lieu of group health coverage because
the Participant is unable to certify that he or she has other health coverage. An amount will be
treated as an amount under Code Section 125 only if the Employer does not request or collect
information regarding the Participant’s other health coverage as part of the enrollment process for
the health plan.

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DEEMED IRA AMENDMENT

FOR THE

PROTOTYPE DEFINED CONTRIBUTION PLAN

BASIC PLAN DOCUMENT #01

The Employer named in the Adoption Agreement hereby amends the Plan to reflect the provisions of
the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) regarding the
establishment of “Deemed IRAs”. This amendment is intended as a good faith compliance with the
requirements of EGTRRA and is to be construed in accordance with EGTRRA and the guidance issued
thereunder. This amendment shall supersede the provisions of the Basic Plan Document #01 to the
extent those provisions are inconsistent with the provisions of this amendment. The Basic Plan
Document #01 is hereby amended by adding Articles XVIII, XIX and XX as follows:

ARTICLE XVIII

DEEMED IRAs

This Article shall apply if elected by the Employer in the Adoption Agreement and shall be
effective for Plan Years beginning after the date specified in the Adoption Agreement. Any
Traditional or Regular IRA established hereunder to accept Deemed IRA Contributions as permitted by
Code Section 408(g) shall follow the rules set forth in Code Section 408 and outlined in Article
XIX. Any Roth IRA established hereunder to accept Deemed IRA Contributions as permitted by Code
Section 408(g) shall follow the rules set forth in Code Section 408A and outlined in Article XX.

18.1 Deemed IRAs

Each Participant may make Voluntary Employee Contributions to the Participant’s Traditional or Roth
IRA as elected on the Adoption Agreement under Basic Plan Document #01. The Plan shall establish a
separate account or annuity as applicable for the designated IRA contributions of each Participant
and any earnings properly allocable to the contributions, and maintain separate recordkeeping with
respect to each such IRA.

18.2 Individual

The Participant in the Plan who has established an Individual Retirement Account or a tax-qualified
Roth IRA under this Basic Plan Document #01, which may be amended from time to time.

18.3 Investment In Collectibles

If a trust or custodial account established hereunder acquires collectibles within the meaning
of Code Section 408(m) after December 31, 1981, assets of the trust or custodial account will be
treated as a distribution in an amount equal to the cost of such collectibles.

18.4 Restrictions On Directing

Investments While the Individual may direct the Trustee with respect to investments, the Individual
may not borrow from the account or pledge any of the assets of the IRA as security for a loan, or
buy property or assets from or sell property or assets to the account.

18.5 Prohibition Against Investing In Life Insurance

No part of the trust or custodial assets will be invested in life insurance contacts.

18.6 Nonforfeitability

The balance in an Individual’s Deemed IRA account is nonforfeitable at all times.

18.7 Prohibition Against Commingling Of Assets

The assets of the trust or custodial account will not be commingled with other property except in a
common trust fund or common investment fund.

18.8 Separate Accounting

Separate records will be maintained for the interest of each Individual under an IRA established by
the Employer. IRAs established pursuant to this paragraph shall be held in a trust or annuity as
applicable separate from the trust established under the Plan to hold contributions other than
deemed IRA contributions and shall satisfy the applicable

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requirements of Code Sections 408 and 408(A), which requirements are set forth in Articles XIX and
XX.

18.9 Reporting Duties

The Trustee or issuer as applicable shall be subject to the reporting requirements of Code Section
408(i) with respect to all IRAs that are established and maintained under the Plan.

18.10 Voluntary Employee Contributions

For purposes of this paragraph, a Voluntary Employee Contribution [other than a mandatory
contribution within the meaning of Code Section 411(c)(2)] that is made by the Participant and
which the Participant has designated, at or prior to the time of making the contribution as a
contribution to which this paragraph applies.

18.11 Substitution Of Non-Bank Trustee Or Custodian

If a non-bank Trustee or Custodian has been appointed by the Employer under Basic Plan
Document #01, such entity shall retain the right to substitute another Trustee or Custodian if such
non-bank Trustee or Custodian receives notice from the Commissioner of Internal Revenue that such
substitution is required because it has failed to comply with the requirements of Regulations
Section 1.408-2(e).

ARTICLE XIX

TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNT PROVISIONS

19.1 Traditional IRA Or Regular IRA

An Individual Retirement Account, or Individual Retirement Annuity described in Code Section 408(a)
or (b) respectively, or a non-Roth IRA, and shall, where the context so requires, include a
Traditional IRA, SEP IRA, SARSEP IRA, SEP Traditional IRA, Rollover IRA and Combined IRA. No
account established under Basic Plan Document #01 may accept SIMPLE IRA or Coverdell Education
contributions.

19.2 Maximum Annual Contribution

Shall mean, with respect to Traditional IRA Contributions made by or on behalf of an Individual for
a taxable year, an amount that does not exceed the lesser of (a) the deductible amount described in
Code Section 219(b)(5)(A) or (b) 100% of the Individual’s Compensation reduced by (c) the amount of
any contributions made by or on behalf of the Individual to another Traditional IRA or to a Roth
IRA for the same taxable year.

19.3 Catch-Up Contribution

In the case of annual contributions to a Traditional IRA or IRA Rollover Account, an amount
not to exceed the Applicable Amount as defined in Code Section 219(b)(5)(B)(i), an amount not to
exceed the lesser of:

	 	(a)	 	the Applicable Deferral Amount as defined in Code Section 414(v)(2)(A), or
	 
	 	(b)	 	the excess, if any, of the Individual’s Compensation (as defined in the
Adoption Agreement) for the year, over any other Elective Deferrals made by the
Individual for the year (other than Catch-Up Contributions).

Catch-Up Contributions that may be made by or on behalf of an Individual for any taxable year to an
IRA established under this Plan shall be reduced by the amount of Catch-Up Contributions made by or
on behalf of the same Individual to any other IRA or Roth IRA for the same taxable year except
that, in the case of Catch-Up Contributions made as salary reduction contributions to a SARSEP IRA
Account, the amount of such Catch-Up Contributions allowed for any taxable year shall be reduced by
the amount of Catch-Up Contributions made by or on behalf of the same Individual to any other
retirement plan described in Code Sections 401(a), 403(b), 408(p) or 457. Catch-Up Contributions
may be made by or on behalf of an Individual who has attained the age of 50 on or before the last
day of the year for which the contribution is made. The Plan shall be interpreted to deem any
Individual’s contribution that exceeds the Maximum Annual Contribution as defined in paragraph 19.2
but not an amount greater than the Applicable Amount to be a Catch-Up Contribution unless the
Individual elects to treat such amount as an Excess Contribution described in paragraph 19.8.

19.4 Required Beginning Date

The April 1st of the calendar year following the calendar year in which the Individual
attains age 701/2.

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19.5 Tax Year

The period for which an Individual must report income on his or her Federal income tax return. The
tax return of most Individuals is based on the calendar year.

19.6 Trustee

The institution and any successor thereto including by merger or acquisition who has been appointed
and accepted as indicated on the Adoption Agreement.

19.7 Traditional IRA Contributions

An Individual may make a cash contribution in any amount up to the lesser of the Maximum Annual
Contribution or 100% of Compensation for a Tax Year (reduced by the amount of any contributions
made by the Individual or on the Individual’s behalf to another IRA or to a Roth IRA for the same
Tax Year) in any year in which the Individual is under the age of 701/2.

The Trustee is not permitted to accept contributions in excess of the Maximum Annual Contribution
amount for any Tax Year unless it is a Rollover Contribution [as permitted by Code Sections 402(c)
and 403(a)(4)]. Contributions may be made to an IRA for any Tax Year at any time starting on the
first day of the Tax Year and ending on the day the Individual’s Federal income tax return is due
for such year (not including any extensions). Except in the case of a Rollover Contribution [as
permitted by Code Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and
457(e)(16)(A)(i)], the total of such contributions shall not exceed the Maximum Annual Contribution
amount for each year listed below:

	 	 	 
	Years	 	Maximum Annual Contribution Amount
	2002 through 2004
	 	$3,000
	2005 through 2007
	 	$4,000
	2008 and thereafter
	 	$5,000

For years after 2008, the $5,000 limit is subject to cost-of-living adjustments (“COLAs”) under
Code Section 219(b)(5)(c). Such adjustments will be in $500 increments.

	 	(a)	 	Catch-Up Contributions - If, by December 31 of any taxable year, an Individual
is age 50 or over, the Individual may make an additional contribution (a “Catch-Up
Contribution”) to all of the Individual’s IRAs in the aggregate and, if the Individual
is eligible, Roth IRAs up to the amounts listed below for each year:

	 	 	 
	Years	 	Catch-Up Contribution
	2002 through 2005
	 	   $500
	2006 and thereafter
	 	$1,000

If the Individual is eligible, any annual contribution the Individual makes that exceeds the
Individual’s Maximum Annual Contribution will be treated as a Catch-Up Contribution (up to the
limits described above) unless the Individual elects to treat such amounts as an Excess
Contribution described in paragraph 19.8 below.

	 	(b)	 	Deductibility of Traditional IRA Contributions -

	 	(1)	 	In General. The Individual may fully deduct their Traditional
IRA contributions, up to the total of the Individual’s Maximum Annual
Contribution plus any Catch-Up Contributions, if:

	 	(i)	 	the Individual is single and the Individual is
not an active Participant in a Retirement Plan,
	 
	 	(ii)	 	the Individual is married, both the Individual
and the Individual’s Spouse are not active Participants in a Retirement
Plan, or
	 
	 	(iii)	 	the Individual is not an active Participant in
a Retirement Plan and the Individual’s Spouse is an active Participant,
but the Individual and their Spouse’s

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	 	 	 	jointly filed adjusted gross income (“AGI”) does not exceed $150,000.
If the Individual’s Spouse is an active Participant and the
Individual is not, their ability to deduct their Traditional IRA
contribution is phased out ratably if the Individual and their
Spouse’s joint AGI is more than $150,000 but not more than $160,000.
No deduction is permitted if the Individual and their Spouse’s joint
AGI exceeds $160,000.

	 	(2)	 	Active Participants in Retirement Plan. If the Individual is
an active Participant in a Retirement Plan, the Individual may deduct the
Individual’s Traditional IRA contribution if the AGI of the Individual and if
applicable, the Individual and the Individual’s Spouse, is less than the
Threshold Amount (see below). If the AGI of the Individual, and if applicable
the Individual and the Individual’s Spouse, equals or exceeds the Threshold
Amount but is less than the Phaseout Amount (see below), the Individual’s
ability to deduct their Traditional IRA contribution is reduced ratably, but
not below $200. If the AGI of the Individual equals or exceeds the Phaseout
Amount, the Individual may not deduct any Traditional IRA contributions. The
AGI limits for active Participants vary depending upon the Tax Year and the
Individual’s Federal filing status. The charts below illustrate the AGI limits
for each filing status.

If the Individual is married and is an active Participant in the
Plan and files jointly with their Spouse:

	 	 	 	 	 	 	 	 	 
	Taxable	 	Year Threshold Amount	 	Phaseout Amount
	2002
	 	$	54,000	 	 	$	64,000	 
	2003
	 	 	60,000	 	 	 	70,000	 
	2004
	 	 	65,000	 	 	 	75,000	 
	2005
	 	 	70,000	 	 	 	80,000	 
	2006
	 	 	75,000	 	 	 	85,000	 
	2007 and thereafter
	 	 	80,000	 	 	 	100,000	 

	 	 	 	If the Individual is single and an active Participant in a Plan and files using any
non-married filing status:

	 	 	 	 	 	 	 	 	 
	Taxable	 	Year Threshold Amount	 	Phaseout Amount
	2002
	 	$	34,000	 	 	$	44,000	 
	2003
	 	 	40,000	 	 	 	50,000	 
	2004
	 	 	45,000	 	 	 	55,000	 
	2005
	 	 	50,000	 	 	 	60,000	 
	2006
	 	 	50,000	 	 	 	60,000	 
	2007 and thereafter
	 	 	50,000	 	 	 	60,000	 

	 	 	 	If the Individual is married but files separately, the Individual’s Threshold Amount
is $0 and their Phaseout Amount is $10,000 for all Tax Years, $20,000 in the case of
a joint tax return for tax years beginning after December 31, 2006.
	 
	 	 	 	Saver’s Credit — The Saver’s Credit under Code Section 25B is a nonrefundable tax
credit available to taxpayers whose AGI does not exceed certain limits. The credit
is equal to a specified percentage of the taxpayer’s eligible contributions to IRAs
or certain Employer-sponsored retirement plans for each taxable year from 2002
through 2006.

	 	(1)	 	Eligibility. The taxpayer must be age eighteen (18) or over
before the end of the taxable year, may not be a full-time student and cannot
be claimed as a dependent on another taxpayer’s Federal income tax return.
	 
	 	(2)	 	Contributions Eligible for the Saver’s Credit. The maximum
amount of annual contributions that may be taken into account is $2,000.
Eligible contributions include annual contributions to Traditional and Roth
IRAs and salary reduction contributions to Code Section 401(k) Plans, SIMPLEs
[IRA or 401(k)], Code Section 403(b) Plans,

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	 	 	 	governmental Code Section 457 Plans or SARSEP plans. Voluntary After-Tax
Contributions to an Employer’s Qualified Retirement Plan or a Code Section
403(b) plan are also eligible for the credit.
	 
	 	(3)	 	Reduction of Eligible Contributions. The amount of a
taxpayer’s eligible contributions for any taxable year will be reduced by any
taxable distributions received by the taxpayer (or by the taxpayer’s Spouse if
filing a joint return) from an IRA or a plan listed in (c)(2) above during the
taxable year, during the two (2) preceding years or during the period from the
end of the taxable year until the due date (with extensions) of the taxpayer’s
Federal income tax return.
	 
	 	(4)	 	Amount of Credit. The Saver’s Credit will be 50%, 20% or 10%
(the “Applicable Percentage”) of eligible contributions based upon the
taxpayer’s filing status and AGI as shown on the chart below:

	 	 	Adjusted Gross Income:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Joint Return	 	Head of Household	 	All Others	 	%
	Over	 	Not Over	 	Over	 	Not Over	 	Over	 	Not Over	 	 	 	 
	$         0
	 	$	30,000	 	 	$	0	 	 	$	22,500	 	 	$	0	 	 	$	15,000	 	 	 	50	%
	$30,000
	 	$	32,500	 	 	$	22,500	 	 	$	24,375	 	 	$	15,000	 	 	$	16,250	 	 	 	20	%
	$32,500
	 	$	50,000	 	 	$	24,375	 	 	$	37,500	 	 	$	16,250	 	 	$	25,000	 	 	 	10	%
	$50,000
	 	 	 	 	 	$	37,500	 	 	 	 	 	 	$	25,000	 	 	 	 	 	 	 	0	%

19.8 Excess Contributions

If the Participant contributes more than allowed with respect to a Tax Year, the Individual
must notify the Trustee or insurer to return to the Individual the excess contribution, together
with any investment earnings on that amount, or to apply the excess contribution as a contribution
for the Individual’s next succeeding Tax Year. The Participant must notify the Trustee or insurer
in writing prior to the date on which the Individual files, or is required to file, the
Individual’s income tax return for the Tax Year for which the excess contribution was made.

19.9 Sunset Provisions

Plan amendments made to comply with the Economic Growth and Tax Relief Reconciliation Act of
2001 (“EGTRRA”), including, without limitation, amendments made to the contribution limits and
rollover rules, are subject to the sunset provisions of EGTRRA Section 901. Under the sunset
provision, the provisions of EGTRRA shall not apply to taxable or Plan Years beginning after
December 31, 2010, pursuant to Section 901 of EGTRRA. With respect to taxable and Plan Years
beginning after December 31, 2010, the Code shall be applied and administered as if EGTRRA had
never been enacted. In such cases, the terms and conditions of the Plan shall revert to those
terms and conditions that would have been in effect had the Plan not been amended as of January 1,
2002.

19.10 Maintenance Of An Individual’s IRA

The Trustee will establish and maintain an IRA in the Individual’s name under this document. The
Individual’s Account will be administered separately from any other IRA and the assets of the
Individual’s IRA will not be commingled with the assets of any other IRA, except in a common trust
fund or common investment fund as described in Code Section 408(a)(5).

19.11 Methods Of Payment

The Individual’s retirement benefits must begin to be paid to the Individual no later than the
April 1 following the calendar year in which the Individual reaches age 701/2. Such distributions
shall be made in accordance with Code Sections 408(a)(6) or 408(b)(3) and the Regulations issued
thereunder. Not later than March 1 of the year following the calendar year in which the Individual
reaches age 701/2, the Individual may elect to have the balance in the IRA paid to the Individual in:

	 	(a)	 	a single lump-sum payment, or
	 
	 	(b)	 	equal or substantially equal monthly, quarterly, semi-annual, or annual
payments. The payments may be computed over any period of time but not longer than the
Individual’s life expectancy or

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	 	 	 	the joint life expectancy of the Individual and the Individual’s designated
Beneficiary.

	 	 	Installment payments will continue only so long as amounts remain in an IRA. Once an IRA is
exhausted, payments will stop. If the Individual is receiving installment payments, the
Individual may request distribution of all or any part of the remaining balance in the
Individual’s IRA at any time upon written notice to the Sponsor.

19.12 Qualifying First-Time Homebuyer Distribution

A Qualifying First-Time Homebuyer Distribution is any distribution used within 120 days of the date
the distribution is received by the Individual, the Individual’s Spouse or the child, grandchild or
ancestor of the Individual and the Individual’s Spouse, to pay for the acquisition, construction or
reconstruction of the Individual’s principal residence, provided that the Individual (and the
Individual’s Spouse) for whom the principal residence is acquired or constructed had no present
ownership interest in a principal residence during the two (2) year period ending on the date a
binding contract to acquire the principal residence was entered into or on which construction or
reconstruction of the principal residence was commenced. The aggregate amount of distributions
received by the Individual during the Individual’s lifetime and which may be treated as Qualifying
First-time Homebuyer Distributions may not exceed $10,000.

19.13 Qualifying Higher Education Expenses

A qualifying higher education expense includes tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of the Individual, Individual’s Spouse, Individual’s
child [as defined in Code Section 151(c)(3)] or the Individual’s or the Individual’s Spouse’s
grandchild, at an eligible educational institution [as defined in Code Section 529(e)(5)] reduced,
for any Tax Year, by any amount paid for the benefit of the student including a qualified
scholarship, educational assistance allowance or similar payment which is excludable from gross
income under the Code or any other Federal law.

19.14 Requirements Of Income Tax Regulations

All distributions required under this Article will be determined and made in accordance with
the Income Tax Regulations under Code Section 401(a)(9)(1)(2). Unless an earlier effective date is
specified by the Individual in writing, the provisions of this Article will apply for purposes of
determining required minimum distributions for calendar years beginning with the 2003 calendar
year. The requirements of this Article XIX will take precedence over any inconsistent provisions
of the Plan.

19.15 Required Beginning Date

The date on which an Individual is required to take his or her first minimum distribution from the
IRA. The Individual’s entire interest will be distributed, or begin to be distributed, to the
Individual no later than the April 1 of the calendar year following the calendar year in which the
Individual attains age 701/2.

19.16 Death Of Individual Before Distributions Begin

If the Individual dies before distributions begin, the Individual’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

	 	(a)	 	If the Individual’s surviving Spouse is the Individual’s sole designated
Beneficiary, distributions to the surviving Spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Individual died, or
by December 31 of the calendar year in which the Individual would have attained age
701/2, if later. However, if the Individual dies before distributions begin and there is
a designated Beneficiary, distribution to the designated Beneficiary may not be
required to begin by the date specified in this paragraph, but instead, the
Individual’s entire interest may be distributed to the designated Beneficiary by
December 31 of the calendar year containing the fifth (5) anniversary of the
Individual’s death. If the Individual’s surviving Spouse is the Individual’s sole
designated Beneficiary and the surviving Spouse dies after the Individual but before
distributions to either the Individual or the surviving Spouse begin, this election may
apply as if the surviving Spouse were the Individual and may apply to all distributions
or only to certain distributions as so designated by the Individual. This election
will be deemed to have been made if such surviving Spouse makes a contribution to the
IRA or fails to take a required distribution as a Beneficiary.

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	 	(b)	 	If the Individual’s surviving Spouse is not the Individual’s sole designated
Beneficiary, distributions to the designated Beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the Individual died.
However, Individuals or Beneficiaries may elect on an individual basis whether the
five (5) year rule or the life expectancy rule in this paragraph 19.16 and 19.17 apply
to distributions after the death of an Individual who has a designated Beneficiary.
The election must be made no later than the earlier of September 30 of the calendar
year in which distribution would be required to begin under paragraph 19.16, or by
September 30 of the calendar year which contains the fifth anniversary of the
Individual’s (or, if applicable, surviving Spouse’s) death as permitted under
Regulations Section 1.401(a)(9). If neither the Individual nor Beneficiary makes an
election under this paragraph, distributions will be made in accordance with paragraphs
19.16 and 19.17 herein and, if applicable, the elections in paragraph (a) above.
	 
	 	(c)	 	If there is no designated Beneficiary as of September 30 of the year following
the year of the Individual’s death, the Individual’s entire interest will be
distributed by December 31 of the calendar year containing the fifth (5) anniversary of
the Individual’s death.
	 
	 	(d)	 	If the Individual’s surviving Spouse is the Individual’s sole designated
Beneficiary and the surviving Spouse dies after the Individual but before distributions
to the surviving Spouse begin, this paragraph 19.16(d), other than paragraph 19.16(a),
will apply as if the surviving Spouse were the Individual.

	 	 	For purposes of this paragraph and paragraphs 19.20 and 19.21, unless paragraph 19.16(d)
applies, distributions are considered to begin on the Individual’s Required Beginning Date.
If paragraph 19.16(d) applies, distributions are considered to begin on the date
distributions are required to begin to the surviving Spouse under paragraph 19.16(a). A
designated Beneficiary who is receiving payments under the five (5) year rule may make a new
election to receive payments under the life expectancy rule until December 31, 2003,
provided that all amounts that would have been required to be distributed under the life
expectancy rule for all distribution calendar years before 2004 are distributed by the
earlier of December 31, 2003 or the end of the five (5) year period.

19.17 Forms Of Distributions

Unless the Individual’s interest is distributed in a single sum on or before the Required Beginning
Date, as of the First Distribution Calendar Year distributions will be made in accordance with
paragraph 19.18 through paragraph 19.20 of this Article.

19.18 Amount Of Required Minimum Distribution For Each Distribution Calendar Year

During the Individual’s lifetime, the minimum amount that will be distributed for each Distribution
Calendar Year is the lesser of:

	 	(a)	 	the quotient obtained by dividing the Individual’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Q&A-2 of Regulations
Section 1.401(a)(9)-9, using the Individual’s age as of his or her birthday in the
Distribution Calendar Year; or
	 
	 	(b)	 	if the Individual’s sole designated Beneficiary for the distribution calendar
year is the Individual’s Spouse, the quotient obtained by dividing the Individual’s
account balance by the number in the Joint and Last Survivor Table set forth in Q&A-3
of Regulations Section 1.401(a)(9)-9, using the Individual’s and Spouse’s attained ages
as of the Individual’s and Spouse’s birthdays in the Distribution Calendar Year.

19.19 Lifetime Required Minimum Distributions Continue Through Year Of Individual’s Death

Required minimum distributions will be determined under this paragraph and paragraph 19.18
beginning with the first Distribution Calendar Year and up to and including the Distribution
Calendar Year that includes the Individual’s date of death.

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19.20 Death On Or After Distributions Begin

If the Individual dies on or after the Required Beginning Date, the remaining portion of his or her
interest will be distributed at least as rapidly as follows:

	 	(a)	 	If the designated Beneficiary is someone other than the Individual’s surviving
Spouse, the remaining interest will be distributed over the remaining life expectancy
of the designated Beneficiary, with such life expectancy determined using the
Beneficiary’s age as of his or her birthday in the year following the year of the
Individual’s death, or, if the distributions are being made over the period described
in (c) below if longer.
	 
	 	(b)	 	If the Individual’s sole designated Beneficiary is the Individual’s surviving
Spouse, the remaining interest will be distributed over such Spouse’s life or over the
period described in paragraph (c) below, if longer. Any interest remaining after such
Spouse’s death will be distributed over such Spouse’s remaining life expectancy
determined using the Spouse’s age as of his or her birthday in the year of the Spouse’s
death, or, if the distributions are being made over the period described in paragraph
(c) below, over such period.
	 
	 	(c)	 	If there is no designated Beneficiary, or if applicable by operation of
paragraph (a) or (b) above, the remaining interest will be distributed over the
Individual’s remaining life expectancy determined in the year of the Individual’s
death.
	 
	 	(d)	 	The amount to be distributed each year under paragraph (a), (b) or (c),
beginning with the calendar year following the calendar year of the Individual’s death,
is the quotient obtained by dividing the value of the IRA as of the end of the
preceding year by the remaining life expectancy specified in such paragraph. Life
expectancy is determined using the Single Life Table in Q&A-1 of Regulations Section
1.401(a)-(9)-9.
	 
	 	(e)	 	If distributions are being made to a surviving Spouse as the sole designated
Beneficiary, such Spouse’s remaining life expectancy for a year is the number in the
Single Life Table corresponding to the Beneficiary’s or Individual’s age in the year
specified in paragraph (a), (b) or (c) and reduced by one (1) for each subsequent year.

19.21 Death Before Date Distributions Begin

	 	(a)	 	Individual Survived By Designated Beneficiary —  If the Individual dies before
the date distributions begin and there is a designated Beneficiary, the minimum amount
that will be distributed for each distribution calendar year after the year of the
Individual’s death is the quotient obtained by dividing the Individual’s account
balance by the remaining life expectancy of the Individual’s designated Beneficiary,
determined as provided in paragraph 19.20.
	 
	 	(b)	 	No Designated Beneficiary —  If the Individual dies before the date
distributions begin and there is no designated Beneficiary as of September 30 of the
year following the year of the Individual’s death, distribution of the Individual’s
entire interest will be completed by December 31 of the calendar year containing the
fifth (5) anniversary of the Individual’s death.
	 
	 	(c)	 	Death Of Surviving Spouse Before Distributions To Surviving Spouse Are Required
To Begin —  If the Individual dies before the date distributions begin, the
Individual’s surviving Spouse is the Individual’s sole designated Beneficiary, and the
surviving Spouse dies before distributions are required to begin to the surviving
Spouse under paragraph 19.16(a), this paragraph 19.21 will apply as if the surviving
Spouse were the Individual.

19.22 Designated Beneficiary

The individual who is designated as the Beneficiary under paragraph 1.13 of the Basic Plan Document
#01 and is the designated Beneficiary under Code Section 401(a)(9) and Regulations Section
1.401(a)(9)-1, Q&A-4.

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19.23 Remainder Beneficiary

The Individual’s Beneficiary may, after the Individual’s death, name a person, trust, estate or
other entity to receive distributions of any balance remaining in the Individual’s IRA after the
death of the Individual’s Beneficiary. Any person or entity so designated will, upon the death of
the Individual’s Beneficiary, become the Individual’s Beneficiary for all purposes except for
required minimum distributions. This additional designation may not extend the schedule of
required minimum distributions established when the Individual attains age 701/2 or, if sooner,
following the Individual’s death.

19.24 Distribution Calendar Year

A calendar year for which a required minimum distribution is required. For distributions beginning
before the Individual’s death, the First Distribution Calendar Year is the calendar year
immediately preceding the calendar year which contains the Individual’s Required Beginning Date.
For distributions beginning after the Individual’s death, the First Distribution Calendar Year is
the calendar year in which distributions are required to begin under paragraph 19.14. The required
minimum distribution for the Individual’s First Distribution Calendar Year will be made on or
before the Individual’s Required Beginning Date. The required minimum distribution for other
Distribution Calendar Years, including the required minimum distribution for the Distribution
Calendar Year in which the Individual’s Required Beginning Date occurs, will be made on or before
December 31 of that Distribution Calendar Year.

19.25 Life Expectancy

Life expectancy as computed by use of the Single Life Table in Q&A-1 of Regulations Section
1.401(a)(9)-9.

19.26 Individual’s Account Balance

The IRA account balance as of December 31 of the calendar year immediately preceding the
Distribution Calendar Year. The “value” of the IRA includes the amount of any outstanding
rollover, transfer and recharacterization under Q&As-7 and -8 of Regulations Section 1.408-8.

19.27 Duties Of The Trustee

The administrative functions the Trustee will perform include:

	 	(a)	 	setting up and maintaining an IRA in the Individual’s name;
	 
	 	(b)	 	accepting contributions for deposit to the Individual’s IRA. The Trustee does
not require the Individual to make annual contributions since they are voluntary.
However, the Trustee is not permitted to accept contributions in excess of the Maximum
Annual Contribution for any Tax Year unless it is a Rollover Contribution;
	 
	 	(c)	 	investing the Individual’s contributions in accordance with the Individual’s
direction;
	 
	 	(d)	 	making payments or distributions from the Individual’s IRA in accordance with
the Individual’s written instructions;
	 
	 	 	 	preparing and mailing to the Individual an annual report of the Individual’s IRA for
each Tax Year. The report will show the contributions received, the payments and
distributions made, the investment earnings received, the market value of assets
held in the Individual’s Account including gains and/or losses (if applicable) and
the balance held in the Account at the end of the Tax Year; and
	 
	 	 	 	preparing an annual calendar year statement concerning the status of the account and
such information concerning required minimum distributions as is prescribed by the
Commissioner of Internal Revenue.

19.28 Duties Of The Individual

The administrative functions the Individual must perform include:

	 	(a)	 	determining the amount of the Individual’s annual contribution, if any. The
Individual is also responsible to make the Individual’s contribution within the time
limits set by the Internal Revenue Service;

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	 	(b)	 	authorizing any payment or distribution from the Individual’s Account;
	 
	 	(c)	 	filing Form 5329, Return for Additional Taxes Attributable to Retirement
Plans (including IRAs), Annuities and Modified Endowment Contracts, if the Individual
owes an excise tax with respect to the Individual’s IRA;
	 
	 	(d)	 	furnishing the Trustee with a written explanation of the intended use of any
distribution prior to attainment of age 591/2; and
	 
	 	(e)	 	furnishing the Trustee with any information the Trustee may need to complete
any governmental report required at paragraph 19.27(f) above. If the Individual fails
to furnish the Trustee with such information and documents the Trustee may reasonably
require, the Trustee may in the Trustee’s sole discretion terminate the account and
distribute to the Individual the lump sum payment, in an amount equal to the assets in
the Account less an amount deemed reasonably necessary by the Trustee for the payment
of all unpaid fees, expenses, charges, taxes or other liabilities of the account,
whether or not liquidated.

ARTICLE XX

ROTH INDIVIDUAL RETIREMENT ACCOUNT

	20.1	 	Roth IRA

An Individual Retirement Account established under Code Section 408A under which contributions are
not tax deductible and qualifying distributions are not taxable to the Individual.

	20.2	 	Individual Accounts

The Trustee will establish and maintain a Roth Individual Retirement Account or Annuity in the
Individual’s name under the terms as contained herein and where applicable, the Application Form.
The account is established for the exclusive benefit of the Individual or that of the Individual’s
Beneficiaries. The Individual’s account will be administered separately from any other IRA or Roth
IRA and the assets of such Individual’s IRA or Roth IRA will not be commingled with the assets of
any other IRA or Roth IRA, except in a common trust fund or common investment fund.

	20.3	 	Age  Requirements

Contributions may be made to this Roth IRA even after the Individual has reached age 701/2.

	20.4	 	Plan Year

The 12-month period starting on January 1 and ending on December 31.

	20.5	 	Timing Of Contributions

An Individual must make his or her contribution for a Taxable Year either during such year or
within the time period prescribed by law for filing the Individual’s Federal income tax return for
such Taxable Year without extensions.

	20.6	 	Adjusted Gross Income (AGI)

“AGI” shall mean adjusted gross income as reported on an Individual’s Federal income tax
return but modified, in accordance with Code Section 219(g)(3), to adjust for social security
benefits and passive activity losses and credits and to include foreign earned income, adoption
assistance or expenses and income from U.S. Savings Bonds used to pay higher education tuition and
fees, and further modified, in accordance with Code Section 408(c)(3)(C), to exclude any amount
included in income due to a conversion from a Traditional or Regular IRA to a Roth IRA.

	20.7	 	Modified AGI

An Individual’s Modified AGI for a Taxable Year is defined in Code Section 408A(c)(3)(C)(i) and
does not include any amount included in Adjusted Gross Income as a result of a rollover from a
non-Roth IRA (a “conversion”).

	20.8	 	Applicable Dollar Amount

Applicable Dollar Amount shall mean (i) $150,000, in the case of an individual filing a joint
Federal income tax return, (ii) $95,000, in the case of any other Individual (other than a married
Individual filing separately), and (iii) $0, in the case of a married Individual filing separately.

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	20.9	 	Maximum Permissible Amount

No contribution will be accepted unless it is in cash and the total of such contributions to all
the Individual’s Roth IRAs for a Taxable Year does not exceed the applicable amount [as defined in
20.10(b)], or the Individual’s Compensation, if less, for that Taxable Year. The contribution
described in the previous sentence that may not exceed the lesser of the applicable amount or the
Individual’s Compensation is referred to as a “Regular Contribution.” A “Qualified Rollover
Contribution” is a rollover contribution that meets the requirements of Code Section 408(d)(3),
except the one-rollover-per-year rule of Code Section 408(d)(3)(B) does not apply if the rollover
contribution is from an IRA other than a Roth IRA (a “non-Roth IRA”). Contributions may be limited
as described in paragraph 20.10(b).

	20.10	 	Roth IRA Contributions

	 	(a)	 	Except in the case of a Qualified Rollover Contribution or a
recharacterization [as defined in (f) below], no contribution will be accepted unless
it is in cash and the total of such contribution to all the Individual’s Roth IRAs for
a taxable year does not exceed the Maximum Permissible Amount described at paragraph
20.9.
	 
	 	(b)	 	When determining the Maximum Permissible Amount, the applicable amount is
determined under (i) or (ii) below:

	 	(i)	 	If the Individual is under age fifty (50), the applicable
amount is $3,000 for any Taxable Year beginning in 2002 through 2004, $4,000
for any Taxable Year beginning in 2005 through 2007, and $5,000 for any
Taxable Year beginning in 2008 and years thereafter.
	 
	 	(ii)	 	If the Individual is age fifty (50) or older, the applicable
amount is $3,500 for any Taxable Year beginning in 2002 through 2004, $4,500
for any Taxable Year beginning in 2005, $5,000 for any Taxable Year beginning
in 2006 through 2007, and $6,000 for any Taxable Year beginning in 2008 and
years thereafter.

	 	(c)	 	If (i) and/or (ii) below apply, the maximum Regular Contribution that can be
made to all the Individuals’ Roth IRAs for a Taxable Year is the smaller amount
determined under (i) or (ii).

	 	(i)	 	The maximum Regular Contribution is phased out ratably
between certain levels of modified Adjusted Gross Income (“Modified AGI,”) in
accordance with the following table:

	 	 	 	 	 	 	 
	Filing Status	 	Full Contribution	 	Phase-Out Range	 	No Contribution
	Modified AGI
	Single or Head of Household
	 	$95,0000 or less	 	Between $95,000 and $110,000	 	$110,000 or more
	Joint Return Or Qualifying Widow(er)
	 	$150,000 or less	 	Between $150,000 and $160,000	 	$160,000 or more
	Married-Separate Return
	 	$0	 	Between $0 and $10,000	 	$10,000 or more

If the Individual’s Modified AGI for a taxable year is in the phase-out range, the maximum
Regular Contribution determined under this table for that Taxable Year is rounded up to the
next multiple of $10 and is not reduced below $200.

	 	(ii)	 	If the Individual makes Regular Contributions to both Roth
and non-Roth IRAs for a Taxable Year, the maximum Regular Contribution that
can be made to all the Individual’s Roth IRAs for the Taxable Year is reduced
by the Regular Contributions made to the Individual’s non-Roth IRAs for the
Taxable Year.

	 	(d)	 	A rollover from a non-Roth IRA cannot be made to this IRA if, for the year
the amount is distributed from the non-Roth IRA (i) the Individual is married and
files a separate return, (ii) the Individual

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	 	 	 	is not married and has Modified AGI in
excess of $100,000 or (iii) the Individual is married and together the Individual and
the Individual’s Spouse have Modified AGI in excess of $100,000. For purposes of the
preceding sentence, a husband and wife are not treated as married for a Taxable Year
if they have lived apart at all times during that Taxable Year and file separate
returns for the Taxable Year.
	 
	 	(e)	 	No contributions will be accepted under a SIMPLE IRA plan established by any
Employer pursuant to Code Section 408(p). Additionally, no transfer or rollover of
funds attributable to contributions made by a particular employer under its SIMPLE IRA
plan will be accepted from an IRA used in conjunction with a SIMPLE IRA plan, prior to
the expiration of the 2-year period beginning on the date the Individual first
participated in that employer’s SIMPLE IRA plan.
	 
	 	(f)	 	A Regular Contribution to a non-Roth IRA may be recharacterized pursuant to
the rules in Regulations Section 1.408A-5 as a Regular Contribution to this IRA,
subject to the limits in (c) above.
	 
	 	(g)	 	For purposes of this paragraph, an Individual’s Modified AGI for a Taxable
Year is defined in Code Section 408A(c)(3)(c)(i) and does not include any amount
included in Adjusted Gross Income as a result of a rollover from a non-Roth IRA (a
“conversion”).

	20.11	 	Excess Contribution

If the amount contributed by an Individual exceeds the Maximum Permissible Amount with respect to a
Taxable Year, the Individual must notify the Trustee to distribute to the Individual the excess
contribution, together with any investment earnings on that amount. If an excess is not corrected
by the tax filing deadline (including extensions) for the year during which the excess contribution
was made, such excess contribution may be applied, on a year-by-year basis, against the annual
limit for regular Roth IRA contributions. However, in order to “carry over” the excess
contribution and treat it as a contribution made for a subsequent year, the Individual must meet
the eligibility requirements for the subsequent year. In addition, the Individual is subject to
the six percent (6%) excise tax for the initial year and each subsequent year until the excess is
used up.

The provisions under Code Section 408(d)(5) for Traditional or Regular IRAs (correcting excesses
after the filing deadline) and under Code Section 219(f)(6) for Traditional or Regular IRAs
(carrying over excesses to a subsequent year) do not apply to Roth IRAs.

The Individual must notify the Trustee of the excess contribution, in writing, before the date on
which the Individual files, or is required to file, his or her income tax return for the Taxable
Year for which the excess contribution was made.

	20.12	 	Qualified Distributions

A distribution of contributions or rollovers made pursuant to this Roth IRA, that are held in a
Roth IRA account for five (5) or more Taxable Years, will be Federal income tax-free and
penalty-free if the distribution is made on account of:

	 	(a)	 	the Individual having attained age 591/2,
	 
	 	(b)	 	the Individual’s death,
	 
	 	(c)	 	the Individual’s Disability, or
	 
	 	(d)	 	a Qualified Special Purpose Distribution.

	 	 	If the entire Roth IRA account balance is distributed before any other Roth IRA
contributions are made, the five (5) year holding period does not start over when future
contributions are made. However, in the following situations, the five (5) year holding
period will not be considered to have begun if:

	 	(e)	 	the initial Roth IRA contribution is revoked within the initial seven (7) day
period;
	 
	 	(f)	 	the initial Roth IRA contribution is recharacterized to a Traditional IRA; or

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	 	(g)	 	an excess contribution, plus earnings, is timely distributed in accordance
with Code Section 408(d)(4), by the tax filing deadline (including extensions), unless
other eligible contributions were made.

	20.13	 	Qualified Special Purpose Distribution

A distribution to an Individual who is a Qualified First-Time Homebuyer, as defined under Code
Section 72(t)(8), to the extent such distribution is used by the Individual before the close of the
120th day after the day on which such distribution is received to pay qualified acquisition costs
with respect to a principal residence of the Individual, the Spouse of such Individual, or any
child, grandchild, or ancestor of such Individual or the Individual’s Spouse.

	20.14	 	Nonqualified Distributions

A distribution will not be considered qualified if such distribution is made within the five (5)
year period beginning with the first Taxable Year for which a contribution or rollover is made to
this Roth IRA. If a nonqualified distribution is made from this Roth IRA, the amount so
distributed shall be subject to tax and applicable penalties to the extent the distribution, when
added to previous nonqualified distributions, exceeds the aggregate contributions made by the
Individual pursuant to this Roth IRA. For purposes of this determination, contributions shall be
deemed to be distributed on a first-in first-out basis.

	20.15	 	Form Of Payment

An Individual may elect to have the balance in his or her Roth IRA paid in the form of a lump sum
or installment payments in equal or substantially equal monthly, quarterly, semi-annual, or annual
amounts.

	20.16	 	Rollover From A Qualified Retirement Plan

An Individual may not roll over to this or any other Roth IRA any part of a distribution received
from a Qualified Retirement Plan.

	20.17	 	Life Expectancy

The life expectancy of the Individual. Life expectancy is determined by reference to the return
multiple contained in the tables published at Regulations Section 1.72-9.

	20.18	 	Distributions Commencing Prior To Death

An Individual may direct the Trustee to commence payments in the form of a lump sum or installments
at any time without regard to the minimum distribution requirements under Code Section 401(a)(9).
Installment payments may be set up over any period selected by the Individual provided that such
period is acceptable to the Trustee. Installment payments will continue only so long as amounts
remain in the Individual’s Roth IRA. The Individual shall have the right at any time to request a
lump sum payment of the balance remaining in his or her account.

	20.19	 	Distributions After Death

Benefits payable to a Beneficiary must be distributed or commence to be distributed from the
Individual’s account in accordance with one of the following provisions:

	 	(a)	 	Upon the death of the Individual, distribution of the Individual’s entire
interest shall be completed by December 31 of the calendar year containing the fifth
(5) anniversary of the Individual’s death except to the extent that an election is
made to receive distributions in accordance with (i) or (ii) below.

	 	(i)	 	If the Individual’s interest is payable to a Beneficiary,
then the entire interest of the Individual may be distributed over the life or
over a period certain not greater than the life expectancy of the Beneficiary
commencing on or before December 31 of the calendar year immediately following
the calendar year in which the Individual died.
	 
	 	(ii)	 	If the Beneficiary is the Individual’s surviving Spouse, the
date distributions are required to begin in accordance with (i) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year in which the Individual died or (B)
December 31 of the calendar year in which the Individual would have attained
age 701/2.

	 	(b)	 	If the Beneficiary is the Individual’s surviving Spouse, the Spouse may elect
to treat the account as 

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	 	 	 	his or her own Roth IRA. This election will be deemed to have
been made if such surviving Spouse makes a regular contribution to the account, makes
a rollover to or from such account, or fails to take distributions under (a) above.

	 	(c)	 	The amount required to be distributed each calendar year under (a)(i) or
(a)(ii) above shall not be less than the quotient obtained by dividing the balance in
the account as of the end of the preceding calendar year by the Beneficiary’s
applicable life expectancy [as determined under 20.17 above].

	20.20	 	Ordering Rules Upon Death Of Individual

For purposes of the ordering rules upon distribution, a Beneficiary’s inherited Roth IRAs may not
be aggregated with any other Roth IRAs maintained by such Beneficiary, except for other Roth IRAs
that the Beneficiary inherited from the same decedent. However, if the surviving Spouse is the
sole Beneficiary of a Roth IRA and such surviving Spouse elects to treat the Roth IRA as his or her
own Roth IRA, the Spouse can aggregate contributions with his or her other Roth IRAs for purposes
of determining the ordering rules when distributions are taken.

	20.21	 	Minimum Payment

No amount is required to be distributed from this Roth IRA before the death of the Individual for
whose benefit it has been established. Distributions made pursuant to this Roth IRA will not be
subject to the required minimum distribution rules under Code Section 401(a)(9)(A), or the
incidental death benefit rules under Code Section 401(a).

	20.22	 	Duties Of Trustee

The administrative functions the Trustee will perform include:

	 	(a)	 	setting up and maintaining a Roth IRA in the Individual’s name;
	 
	 	(b)	 	accepting contributions for deposit to the Individual’s Roth IRA. The
Trustee will not accept contributions in excess of $2,000 for any Taxable Year or
contributions from a SIMPLE IRA unless such contribution is a rollover or direct
transfer from another Roth IRA or Traditional or Regular IRA (other than a Conduit
IRA);
	 
	 	(c)	 	investing contributions in accordance with the investment options offered by
the Trustee;
	 
	 	(d)	 	making payments or distributions from this Roth IRA in accordance with
written instructions issued by an authorized party hereunder;
	 
	 	(e)	 	preparing and issuing an annual calendar year report of the Roth IRA for each
Plan Year concerning the status of the status of the account and such information concerning
required minimum distributions as is prescribed by the Commissioner of Internal
Revenue. The report will show the contributions received, the payments and
distributions made, the investment earnings received, the market value of assets
held in the account and the balance held in the account at the end of the Plan
Year, and such information concerning required minimum distributions as is
prescribed by the Commissioner of Internal Revenue; and
	 
	 	(f)	 	preparing any reports that may be required by the Internal Revenue Service or
by any governmental unit or agency having authority to request reports.

	20.23	 	Duties Of Individual

The administrative functions the Individual must perform include:

	 	(a)	 	determining the amount and timing of the annual contribution, if any;
	 
	 	(b)	 	notifying the Trustee of any excess contribution made for a Taxable Year and
directing the Trustee as to the disposition of such contribution plus the investment
earnings thereon;
	 
	 	(c)	 	authorizing any payment or distribution from the account;
	 
	 	(d)	 	filing Form 5329, Return for Additional Taxes Attributable to Qualified
Retirement Plans, if an excise tax is owed with respect to the Roth IRA;

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	 	(e)	 	furnishing the Trustee with a written explanation of the intended use of any
distribution to the Individual prior to the attainment of age 591/2; and
	 
	 	(f)	 	furnishing the Trustee with any information the Trustee may need to complete
any governmental report required under applicable statutes or regulations.

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ROTH 401(K) DEFERRAL AMENDMENT

TO THE

PROTOTYPE DEFINED CONTRIBUTION PLAN

BASIC PLAN DOCUMENT #01

This Amendment reflects the adoption of certain provisions allowing for Roth 401(k) Deferrals and
is intended as good faith compliance with the requirements of Internal Revenue Code Section 402A as
added by Section 617 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA).
This Amendment is to be construed in accordance with EGTRRA and guidance issued thereunder, by the
Internal Revenue Service and the Department of the Treasury, and shall supersede the provisions of
the Basic Plan Document #01 and accompanying Adoption Agreement to the extent those provisions are
inconsistent with this Amendment. Any subsequent guidance or regulation issued shall supersede any
contrary provisions of this Amendment. This Roth 401(k) Deferral Amendment becomes operative by
the execution of the Amendment to the Adoption Agreement by the Employer named in the Adoption
agreement, including any Participating Employers. The Effective Date of this Amendment, if
applicable, shall be as reflected in the Amendment to the Employer’s Adoption Agreement, but in no
event shall it be earlier than the first day of the taxable year of the Plan’s Participants
beginning after December 31, 2005.

Article I entitled “DEFINITIONS” is amended as follows:

	1.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
wherever the words appear in sub-paragraph 1.1(f), paragraph 1.2 including sub-paragraph
1.2(c), sub-paragraph 1.39(g), sub-paragraph 1.44(c), paragraph 1.47, and paragraph 1.59.
	 
	2.	 	By the addition of the words “or Roth 401(k) Deferrals” after the reference to [...“Code
Section 402(g)(3)]” wherever the words appear in subparagraphs 1.16(a), (b) and (c) as well as
the sub-paragraphs entitled “Annual Additions and Top-Heavy Rules” and “Definition of
Compensation for Purposes of Safe-Harbor CODA Provisions”.
	 
	3.	 	By the addition of a comma and the words “Roth 401(k) Deferrals” after the words “Elective
Deferrals” in paragraph 1.83.
	 
	4.	 	By the addition of a new paragraph 1.118 entitled “Roth 401(k) Deferrals” which shall read as
follows:

“1.118 Roth 401(k) Deferrals

Roth 401(k) Deferrals are Elective Deferrals that (1) are designated irrevocably by the Participant
at the time of the cash and deferred election as Roth 401(k) Deferrals, (2) are treated by the
Employer as includible in the Participant’s income at the time the Participant would have received
the amount in cash had the Participant not made the cash or deferred election, and (3) are
accounted for separately under the Plan. Roth 401(k) Deferrals and pre-tax Elective Deferrals, as
defined in paragraph 1.34, may not be reclassified as the other type of contribution. This
paragraph shall not become operative unless the Employer adopts the Roth 401(k) Deferral Amendment
to the Adoption Agreement. Except as set forth in this Paragraph, and as elected in the Roth
401(k) Deferral Amendment to the Adoption Agreement, Roth 401(k) Deferrals shall be treated in the
same manner as a pre-tax Elective Deferral under the terms of the Plan. Unless otherwise elected
in the Adoption Agreement, Employees shall have the effective opportunity to make (or change) an
election to make Roth 401(k) Deferrals in the same manner as pre-tax Elective Deferrals. For
purposes of interpreting the Basic Plan Document #01 and the elections made under the Adoption
Agreement, as amended, the term Elective Deferral shall mean both pre-tax Elective Deferrals and
Roth 401(k) Deferrals except in cases where the context is clearly in violation of the requirements
of this paragraph.”

Article II entitled “ ELIGIBILITY REQUIREMENTS” is amended as follows:

	5.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
in sub-paragraph 2.1(d) and paragraph 2.13.

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	 	 	By the addition of a comma and the words “Roth 401(k) Deferrals” after the words “Elective
Deferrals” in paragraph 2.3.

Article III entitled “ EMPLOYER CONTRIBUTIONS” is amended as follows:

	7.	 	By the addition of a comma and the words “Roth 401(k) Deferrals” after the words “Elective
Deferrals” in sub-paragraph 3.1(b).

	8.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
in paragraph 3.12.

	 	 	Article IV entitled “EMPLOYEE CONTRIBUTIONS” is amended as follows:

	9.	 	Paragraph 4.4 entitled “Rollover Contributions” is amended by the addition of the following
paragraphs at the end thereof, which shall read as follows:

“Special Rules applicable to Direct Rollovers of Roth 401(k) Deferrals

A direct rollover of a distribution from a Roth 401(k) Deferral Account under this plan will only
be made to another Roth 401(k) Deferral account under an applicable retirement plan described in
Code Section 402A(e)(1) or to a Roth IRA described in Code Section 408A, and only to the extent the
rollover is permitted under the rules of Code Section 402(c).

Unless otherwise elected by the Employer in the Adoption Agreement, the plan will accept a rollover
contribution to a Roth 401(k) Deferral account only if it is a direct rollover from another Roth
401(k) Deferral Account under an applicable retirement plan described in Code Section 402A(e)(1)
and only to the extent the rollover is permitted under the rules of Code Section 402(c).

The Plan shall not provide for a direct rollover (including an automatic rollover) of distributions
from a Participant’s Roth 401(k) Deferral account if the amount of the distributions that are
Eligible Rollover Distributions are reasonably expected to total less than $200 during a year. In
addition, any distribution from a Participant’s Roth 401(k) Deferral account is not taken into
consideration in determining whether distributions from a Participant’s other accounts are
reasonably expected to total less than $200 during a year. However, Eligible Rollover Distributions
from a Participant’s Roth 401(k) Deferral account are taken into consideration in determining
whether the total amount of the Participant’s account balances under the plan exceed $1,000 for
purposes of mandatory distributions from the plan and the treatment that such balances receive.”

	10.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
in sub-paragraphs 4.7(b)(4), 4.7(c), 4.8(f); after the first and third times the words appear
in sub-paragraph 4.9(b), and after the words appear in paragraph 4.10.

	11.	 	By the addition of the words “and Roth 401(k) Deferrals” after the words “Elective Deferrals”
in sub-paragraph 4.7(f).

Article V entitled “PARTICIPANT ACCOUNTS” is amended as follows:

	12.	 	Paragraph 5.1 entitled “Separate Accounts” is amended by adding a new subparagraph 5.1(b)(8)
entitled “Roth Elective Deferrals.”

	13.	 	By the addition of a new paragraph 5.9 entitled “Roth 401(k) Deferral Account” which shall
read as follows:

“5.9 Roth 401(k) Deferral Account

If Roth 401(k) Deferrals are elected in the Adoption Agreement, the Roth 401(k) Deferral account is
the required separate account maintained to record the contribution and withdrawal of a
Participant’s Roth Contributions and

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other adjustments as required by the Plan. Forfeitures may not be allocated to a Roth 401(k)
Deferral account and no contributions other than designated Roth 401(k) Deferrals will be
allocated. If elected in the Adoption Agreement, direct rollover contributions described in Section
402A(c)(3) of the Code are permitted to be allocated to the Roth 401(k) Deferral account. Each
Participant’s Roth 401(k) Deferral account shall continue to be maintained and administered
separately until it is completely distributed. Gains, losses and other credits or charges must be
separately allocated on a reasonable and consistent basis to the Participant’s Roth 401(k) Deferral
account and other accounts under the Plan to ensure that the Roth 401(k) Deferral account maintains
a record of the Participant’s investment in the contract. A Roth 401(k) Deferral account shall be
included in the definition of separate accounts as sub-paragraph 5.1(b)(8).”

Article VI entitled “RETIREMENT BENEFITS AND DISTRIBUTIONS” is amended as follows:

	14.	 	By the addition of two new sentences at sub-paragraph 6.5(k) which shall read as follows:

“If the Plan allows for partial distributions, a Participant shall be permitted to designate all or
any portion of such distribution to be from the Roth 401(k) Deferral account. This provision does
not apply to a return of Excess Contributions or a distribution of Excess Deferrals.”

	15.	 	By the addition of the words “Roth 401(k) Deferrals,” after the words “Elective Deferrals,”
in sub-paragraphs 6.8(e) and (i).
	 
	 	 	By the addition of the words “and Roth 401(k) Deferrals” after the words “Elective
Deferrals” in sub-paragraphs 6.3(e) and 6.8(a), the second paragraph in paragraph 6.9, as
well as sub-paragraphs 6.9(a)(2) and (4).
	 
	17.	 	By the addition of a new sub-paragraph 6.8(k) which shall read as follows:
	 
	“(k)	 	Unless elected otherwise on the Adoption Agreement, the Plan Administrator may implement on a
uniform and nondiscriminatory basis an ordering rule for in-service withdrawals from a
Participant’s account attributable to pre-tax Elective Deferrals or Roth 401(k) Deferrals.”
	 
	18.	 	By the addition of a new sub-paragraph 6.9(d) which shall read as follows:
	 
	“(d)	 	The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering
rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective
Deferrals or Roth 401(k) Deferrals.”
	 
	19.	 	By the addition of the following paragraph 6.10(f) which shall read as follows:
	 
	“(f)	 	The Plan Administrator and/or Trustee may pursuant to a uniform and nondiscriminatory policy,
accept a Direct Rollover from another Roth 401(k) Deferral account under a retirement plan as
described in Code Section 402A(e)(1). When a portion of a distribution is from a Roth 401(k)
Deferral Account, the rollover of any such distribution pursuant to Code Section 402A(c)(3)
must be accomplished through a Direct Rollover and can only be made to a plan qualified under
Code Section 401(a) which agrees to separately account for the amount not includible in
income. The transferring Plan shall report the amount of the investment in the contract
(contributions as well as associated earnings) and the first year of the five (5) year period
to the recipient plan so that the recipient plan will not need to rely on the information from
the Plan Participant. For purposes of this paragraph, the five (5) taxable year period of
Plan participation is the period of five (5) consecutive taxable years that begins with the
first day of the first taxable year in which the Participant makes a designated Roth 401(k)
Deferral Contribution to any designated Roth 401(k) Deferral account established for the
Participant under the same plan and ends when five (5) consecutive taxable years have been
completed. For this purpose, the first taxable year in which a Participant makes a designated
Roth 401(k) Deferral Contribution is the year in which the amount is first includible in the
Participant’s gross income.

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	 	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
where the words appear in paragraph 6.13.

	21.	 	By the addition of a new paragraph 6.13 entitled “Qualified Distribution of Roth 401(k)
Deferrals” to read as follows:

“6.13 Qualified Distribution of Roth 401(k) Deferrals

Any qualified distribution from a designated Roth 401(k) Deferral account shall not be includible
in a Participant’s gross income. For purposes of this paragraph, the term “qualified distribution”
means any payment or distribution that is made on or after the date on which a Participant attains
age 591/2, is made to a Beneficiary (or to the estate of the Participant) on or after the death of
the Participant, or is attributable to the Participant’s being disabled [within the meaning of Code
Section 72(m)(7)].

Additionally, any payment or distribution from a designated Roth 401(k) Deferral account shall not
be treated as a qualified distribution if such payment or distribution is made within the five (5)
taxable year period beginning with the earlier of:

	 	(a)	 	the first taxable year for which the Participant made a Roth 401(k) Deferral to
any designated Roth 401(k) Deferral account established for such Participant under the
same applicable retirement plan, or
	 
	 	(b)	 	if a Rollover Contribution was made to such designated Roth 401(k) Deferral
account from a designated Roth 401(k) Deferral account previously established for such
Participant under another applicable retirement plan, the first taxable year for which
the Participant made a Roth 401(k) Deferral to such previously established account.

For purposes of this paragraph, a qualified distribution shall not include any distribution of any
Excess Elective Deferrals under Code Section 402(g)(2) or any Excess Contributions under Code
Section 401(k)(8), and any income on the Excess Elective Deferrals or Contributions.
Notwithstanding the provisions of Code Section 72, if any Excess Elective Deferral under Code
Section 402(g)(2) attributable to any Roth 401(k) Deferral is not distributed on or before the
first April 15 following the close of the taxable year in which such Excess Roth 401(k) Deferral is
made, the amount of such Excess Roth 401(k) Deferral shall not be treated as investment in the
Plan, and be included in gross income for the taxable year in which such excess is distributed.
Code Section 72 shall be applied separately with respect to distributions and payments from a
designed Roth 401(k) Deferral account and other distributions and payments from the Plan.”

Article VII entitled “ DISTRIBUTION REQUIREMENTS” is amended as follows:

	22.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
in sub-paragraphs 7.11(a), (c) and (d).
	 
	23.	 	By the addition of the words “and Roth 401(k) Deferrals” after the words “Elective Deferrals”
in sub-paragraph 7.11(b).
	 
	24.	 	By the addition of a new sub-paragraph 7.11(e), which shall read as follows:
	 
	 	 	“Unless elected otherwise in the Adoption Agreement, Excess pre-tax Elective Deferrals shall
be returned before Roth 401(k) Deferrals.”
	 
	25.	 	By the addition of the words “and Roth 401(k) Deferral Account” after the words “Elective
Deferral account” where they first appear in sub-paragraph 7.12(c) and by adding the words
“and Roth 401(k) Deferrals” after the words “Elective Deferrals” where they next appear in
sub-paragraph 7.12(c).

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	26.	 	By the addition of a comma and the words “Roth 401(k) Deferral account” after the words
“Elective Deferral account” where the words appear in sub-paragraph 7.12(d).
	 
	 	 	Article IX entitled “ VESTING” is amended as follows:
	 
	27.	 	By the addition of the words “Roth 401(k) Deferrals” and a comma after the words “Elective
Deferrals,” in paragraph 9.1.
	 
	 	 	Article X entitled “ LIMITATIONS ON ALLOCATIONS” is amended as follows:
	 
	28.	 	By adding the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals” where
they first appear in paragraph 10.2.
	 
	29.	 	By adding a new second sentence to sub-paragraph 10.2(c), which shall read as follows:
	 
	 	 	“Unless elected otherwise in the Adoption Agreement, Roth 401(k) Deferrals will be returned
next to the extent that they would reduce the excess.”
	 
	30.	 	By adding the words “and Roth 401(k) Deferrals” after the words “Elective Deferrals” in
sub-paragraph 10.2(d).
	 
	 	 	Article XI entitled “ANTIDISCRIMINATION TESTING” is amended as follows:
	 
	31.	 	Article XI is amended by adding the words “or Roth 401(k) Deferrals” after the words
“Elective Deferrals, where they first appear in sub-paragraphs 11.2(b) and 11.3(b).
	 
	32.	 	By the addition of the words “Roth 401(k) Deferrals” and a comma after the words “Elective
Deferrals” in sub-paragraph 11.3(e).
	 
	33.	 	By the addition of a new sub-paragraph 11.4(c) entitled “Income On Corrective Distributions
Of Roth 401(k) Deferrals” and a new sub-paragraph 11.4(d) entitled “Distributions of Roth
401(k) Deferrals” to paragraph 11.4 entitled “Calculation And Distribution Of Excess
Contributions And Excess Aggregate Contributions”, which shall read as follows:

	 	“(c)	 	Income on Corrective Distributions of Roth 401(k) Deferrals — A distribution of
Excess Contributions or Excess Aggregate Contributions or Excess Deferrals is not
includible in gross income to the extent it represents a distribution of designated
Roth 401(k) Deferrals. However, the income allocable to a corrective distribution of
Excess Contributions, Excess Aggregate Contributions or Excess Deferrals that are
designated Roth 401(k) Deferrals is included in gross income in the same manner as
income allocable to a corrective distribution of Excess Contributions, Excess Aggregate
Contributions or Excess Deferrals that are not designated as Roth 401(k) Deferrals.
	 
	 	(d)	 	Distributions of Roth 401(k) Deferrals — Unless otherwise elected on the
Adoption Agreement, the Plan Administrator may adopt a uniform written administrative
policy that permits a Participant (including a Highly Compensated Employee) who has
made Elective Deferrals for a year where such Elective Deferrals includes both pre-tax
Elective Deferrals and Roth 401(k) Deferrals to elect whether the Excess Deferrals,
Excess Contributions, Excess Aggregate Contributions and Excess Annual Additions are to
be attributed to pre-tax Elective Deferrals or Roth 401(k) Deferrals or a combination
of the two. In the event that no such administrative policy is adopted, Excess
Contributions will be first attributed to pre-tax Elective Deferrals, and if such
pre-tax contributions are not in an amount sufficient to make full correction, will
then be attributed to Roth 401(k) Deferrals.”

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	34.	 	By the addition of a new third paragraph to sub-paragraph 11.8, which shall read as follows:

“Roth 401(k) Deferrals may not be recharacterized as Voluntary After-tax Contributions.”

	35.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”,
wherever the words appear in sub-paragraphs 11.10(b), (e)(1), (2) and (4), 11.11(e), (f) and
(g) and 11.14(a) and (c).

Article XII entitled “ADMINISTRATION” is amended as follows:

	36.	 	By the addition of a new subparagraph 12.9(n) that shall read as follows:

“(n) The Plan Administrator may modify the loan program to provide limitations on the ability to
borrow from, or use as security, a Participant’s Elective Deferral account. The loan policy may be
amended to provide for ordering rules with respect to the default of a loan that is made from the
Participant’s Roth 401(k) Deferral account as well as other Accounts under the Plan.”

Article XIV entitled “TOP-HEAVY PROVISIONS” is amended as follows:

	37.	 	By the addition of a comma and the words “Roth 401(k) Deferrals” after the words “Elective
Deferrals” in the last paragraph of paragraph 14.2.
	 
	 	 	Article XV entitled “AMENDMENT AND TERMINATION” is amended as follows:

	38.	 	By the addition of the words “or Roth 401(k) Deferrals” after the words “Elective Deferrals”
in the first paragraph of paragraph 15.5.

The EGTRRA Amendment to the Basic Plan Document #01 is amended as follows:

	By	the addition of the words “or Roth 401(k) Deferrals” after the words “Elective
Deferrals” in the amendment to Section 4, which adds sub-paragraphs 4.7(g) and (h).

	40.	 	By the addition of the words “Roth 401(k) Deferrals” and a comma after the words “Elective
Deferrals” in the amendment to Section 5, which adds sub-paragraph 6.3(i).

	41.	 	By the addition of the words “Roth 401(k) Deferrals” in the amendment to Section 6, which
adds sub-paragraph 6.6(d).
	 
	 	 	By the addition of a comma and the words “Roth 401(k) Deferrals” after the words “Elective
Deferrals” in the amendment to Section 8, which adds sub-paragraph 6.9(d).

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FINAL 401(K) AND (M) AMENDMENT TO THE PROTOTYPE DEFINED CONTRIBUTION PLAN

BASIC PLAN DOCUMENT #01

This Amendment is intended as good faith compliance with the requirements thereof. This Amendment
is to be construed in accordance with those Regulations as issued by the Internal Revenue Service
and the Department of the Treasury, and shall supersede the provisions of the Basic Plan Document
#01 and accompanying Adoption Agreement to the extent those provisions are inconsistent with this
Amendment. This Amendment becomes operative upon the adoption of the Sponsor or, if applicable its
execution by the Employer. The Effective Date of this Amendment shall be as reflected in the
Amendment, but generally will be applicable as of the first day of the Plan Year beginning after
December 2005, unless adopted earlier by the Employer. The provisions relating to Notice 2005-70
will be effective on or after August 28, 2005, if utilized by the Employer. The provisions
relating to either The Katrina Emergency Tax Relief Act of 2005 (KETRA) or the Gulf Opportunity
Zone Act of 2005 (GOZA) will be effective on or after August 25, 2005 if utilized by the Employer.
Employers wishing to adopt Roth 401(k) Deferral provisions on behalf of their participating
Employees must do so by adoption of a separate amendment.

	1.	 	Article I entitled “DEFINITIONS” is amended by the addition of a new paragraph 1.118 entitled
“Roth 401(k) Deferrals” which shall read as follows:
	 
	 	 	“1.118 Roth 401(k) Deferrals

	 
	 	 	Roth 401(k) Deferrals are Elective Deferrals that (1) are designated irrevocably by the
Participant at the time of the cash and deferred election as Roth 401(k) Deferrals, (2) are
treated by the Employer as includible in the Participant’s income at the time the
Participant would have received the amount in cash had the Participant not made the cash or
deferred election, and (3) are accounted for separately under the Plan. Roth 401(k)
Deferrals and pre-tax Elective Deferrals, as defined in paragraph 1.34, may not be
reclassified as the other type of contribution. This paragraph shall not become operative
unless the Employer adopts the Roth 401(k) Deferral Amendment to the Adoption Agreement.
Except as set forth in this Paragraph, and as elected in the Roth 401(k) Deferral Amendment
to the Adoption Agreement, Roth 401(k) Deferrals shall be treated in the same manner as a
pre-tax Elective Deferral under the terms of the Plan. Unless otherwise elected in the
Adoption Agreement, Employees shall have the effective opportunity to make (or change) an
election to make Roth 401(k) Deferrals in the same manner as pre-tax Elective Deferrals.
For purposes of interpreting the Plan and the elections made under the Adoption Agreement,
as amended, the term Elective Deferral shall mean both pre-tax Elective Deferrals and Roth
401(k) Deferrals except in cases where the context is clearly in violation of the
requirements of this paragraph.”
	 
	2. 	 	Article IV entitled “EMPLOYEE CONTRIBUTIONS” is amended by the addition of a new sentence
that shall appear as the last sentence of subparagraph 4.7(f) entitled “Elective Deferrals In
A 401(k) Plan” which shall read as follows:
	 
	 	 	“Employer Contributions generally may not be deemed as Elective Deferrals if they are
deposited to the Trust before the payroll date associated with services rendered or before
the services have been performed. An exception to the foregoing timing rule on deposits to
the Trust is available where the earlier deposit of Elective Deferral amounts is on account
of bona fide administrative considerations (as more fully described in the Income Tax
regulations), and that the timing of such deposits is not made for the principal purpose of
accelerating deductions.”
	 
	3. 	 	Article IV entitled “EMPLOYEE CONTRIBUTIONS” is further amended by the addition of a new
subparagraph 4.9(e) entitled “Automatic Enrollment” which shall read as follows:

	 	“(e)	 	An Employer who has adopted the automatic enrollment provision may by
administrative policy increase the default automatic amount each year of employee
participation. Unless the Employer elects a different incremental amount, the default
amount shall be no less than 3% in

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	 	 	 	the first year of a Participant’s participation in the plan increasing to no less
than 4% in the second year, no less than 5% in the third year and no less than 6% in
all subsequent years.”

	4.	 	Article VI entitled “RETIREMENT BENEFITS AND DISTRIBUTIONS” is amended by the addition of the
following new text that shall appear immediately after the current last sentence of
subparagraph 6.9(b) entitled “Exclusive Reasons for Hardship Withdrawal” which shall read as
follows:
	 
	 	 	“The following reasons constituting an immediate and heavy financial need that permit a
Hardship Withdrawal application shall apply for Plan Years beginning after December 31,
2005:

	 	(5)	 	payments for burial or funeral expenses for the Participant’s deceased parent,
Spouse, child or dependent [as defined in Code Section 152, and for taxable years
beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
	 
	 	(6)	 	expenses for the repair of damage to the Participant’s principal residence that
would qualify for the casualty deduction under Code Section 165 (determined without
regard to whether the loss exceeds 10% of adjusted gross income).”

	5.	 	Article VI entitled “RETIREMENT BENEFITS AND DISTRIBUTIONS” is amended by the addition of a
new subparagraph 6.9(d), which shall read as follows:

	 	“(d)	 	Special Rules For Hurricane-Related Hardship Distributions. The following
provisions shall apply to distributions on account of financial hardship granted by
Plan sponsors to qualified Plan Participants whose principal residence was in a
federally proclaimed disaster area affected by Hurricane Katrina, Hurricane Rita or
Hurricane Wilma, and as a result of any or all of such Hurricanes incurred an economic
loss (a “Qualified Hurricane-related Distribution”). For purposes of these provisions,
such rules will apply to Qualified Hurricane-related Distributions that took place at
any time on or after August 25, 2005 and before January 1, 2007 with respect to
Hurricane Katrina, at any time on or after September 23, 2005 and before January 1,
2007, with respect to Hurricane Rita, and at any time on or after October 23, 2005 and
before January 1, 2007, with respect to Hurricane Wilma.

	 	(1)	 	Such Qualified Hurricane-related Distribution(s) on account of
financial hardship from the Plan, when combined with all distributions obtained
from all qualified plans maintained by the Employer or any other member of the
Employer’s controlled group shall not exceed $100,000. Further, the aggregate
amount of Qualified Hurricane-related Distribution(s) received by a Participant
for any taxable year shall not exceed the excess of $100,000, over the
aggregate amounts treated as Qualified Hurricane-related Distributions received
by the Participant for all previous taxable years.
	 
	 	(2)	 	Repayment Rights. A Participant-recipient of a Qualified
Hurricane-related Distribution shall have the right at any time during a
three-year period commencing as of the day after the date that the Qualified
Hurricane-related Distribution is received to make a repayment or repayments of
said distribution to the Plan (or another Eligible Retirement Plan) in an
amount not exceeding the principal amount of the Qualified Hurricane-related
Distribution. Further, a Participant-recipient of a Qualified
Hurricane-related Distribution for the purchase of a principal residence may
make a repayment or repayments of said distribution to the Plan (or another
Eligible Retirement Plan) in an amount not exceeding the principal amount of
the Qualified Hurricane-related Distribution if said repayment occurred during
the period commencing on August 25, 2005 and ending February 28, 2006 with
respect to a Hurricane Katrina-related distribution, during a period commencing
on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane
Rita-related distribution, or during a period commencing on October 23, 2005
and ending February 28, 2006 with respect to a Hurricane Wilma-related
distribution.

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	 	(3)	 	A Qualified Hurricane-related Distribution shall not be subject
to the tax treatment that applies to an Eligible Rollover Distribution and
shall be deemed to not violate the prohibitions on early distribution that
apply to elective contributions made to Code Section 401(k) plans, Code Section
403(b) arrangements and eligible Code Section 457 plans.
	 
	 	(4)	 	Additionally, the Plan could have provided for special
hurricane–related distributions to Plan Participants who lived or worked in the
Hurricane Katrina disaster area that qualified for individual relief from the
Federal Emergency Management Agency. Similar relief is not available for
Hurricanes Rita and Wilma. These special distributions could also have been
made available to Plan Participants residing outside the disaster area if they
had a child, parent, grandparent or other dependent that lived or worked in the
disaster area. In order to qualify for the special relief provided herein, the
distribution had to be made by March 31, 2006. The six-month suspension on
further deferrals is not applicable. These distributions were not restricted
to the reasons specified in subparagraph 6.9(b). Plan Participants who
received a distribution under this paragraph who themselves were not the victim
of Hurricane Katrina may not take advantage of the special repayment rules
provided at (2) immediately above. The increase in the withdrawal limit to
$100,000 as specified in (1) above also did not apply to these withdrawals.”

	6.	 	Article XI entitled “ANTIDISCRIMINATION TESTING” is amended by the deletion in their entirety
of current subparagraphs 11.4 and 11.5 and the insertion of new subparagraph 11.4, entitled
“Calculation And Distribution Of Excess Contributions And Excess Aggregate Contributions”, a
new subparagraph 11.5, entitled “Qualified Non-Elective And/Or Matching Contributions”, which
shall read as follows:

	“11.4	 	Calculation And Distribution Of Excess Contributions And Excess Aggregate Contributions

	 	(a)	 	Excess Contributions

	 	(1)	 	The average for Highly
Compensated Employees is reduced on a step-by-step leveling
basis beginning by reducing the Actual Deferral Percentage or
the Actual Contribution Percentage for the Highly Compensated
Employee with the highest percentage until the average is
reduced to the maximum allowed or until the Actual Deferral
Percentage or Actual Contribution Percentage for such Highly
Compensated Employee is lowered to that of the Highly
Compensated Employee with the next highest percentage. This
process continues until the ADP and/or the ACP is lowered to
the maximum allowed for the Plan Year. Notwithstanding any
other provision of the Plan, Excess Contributions plus any
income and minus any loss allocable thereto, shall be
distributed to affected Participants no later than the last day
of the Plan Year following the Plan Year to which the Excess
Contributions are attributable except to the extent such Excess
Contributions are classified as Catch-Up Contributions. Excess
Contributions are allocated to the Highly Compensated Employees
with the largest amounts of Employer contributions taken into
account in calculating the ADP Test for the year in which the
excess arose, beginning with the Highly Compensated Employee
with the largest amount of such Employer contributions and
continuing in descending order until all the Excess
Contributions have been allocated. To the extent a Highly
Compensated Employee has not reached his or her Catch-Up
Contribution limit under the Plan, Excess Contributions
allocated to such Highly Compensated Employee are Catch-Up
Contributions

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	 	 	 	and will not be treated as Excess Contributions. If such
excess amounts (other than Catch-Up Contributions) are
distributed more than two and one-half (21/2) months after the
last day of the Plan Year to which the excess amounts are
attributable, a 10% excise tax will be imposed on the
Employer maintaining the Plan with respect to such amounts.
	 
	 	(2)	 	Excess Contributions, including
any amount recharacterized as a Voluntary After-tax
Contribution, shall be treated as Annual Additions with respect
to the Plan Year to which the excess is attributable, even if
distributed.
	 
	 	(3)	 	Excess Contributions shall be
adjusted for any income or loss up to the date of distribution.
The income or loss allocable to Excess Contributions allocated
to each Participant is the sum of (1) income or loss allocable
to the Participant’s Elective Deferral account (and, if
applicable, the QNEC account or the QMAC account or both) for
the Plan Year multiplied by a fraction, the numerator of which
is such Participant’s Excess Contributions for the year and the
denominator is the Participant’s account balance attributable
to Elective Deferrals (and QNECs or QMACs, or both, if any of
such contributions are included in the ADP test) without regard
to any income or loss occurring during such Plan Year; and (2)
ten percent (10%) of the amount determined under (1) multiplied
by the number of whole calendar months between the end of the
Plan Year and the date of distribution, counting the month of
distribution if the distribution occurs after the fifteenth
(15th) of such month. A Plan may use any reasonable
method for computing the income or loss allocable to Excess
Contributions, provided such method is used consistently for
all Participants and for all corrective distributions under the
Plan for the Plan Year, and is used by the Plan for allocating
income or loss to Participant’s accounts.
	 
	 	(4)	 	Excess Contributions shall be
distributed from the Participant’s Elective Deferral account
and QMAC account (if applicable) in proportion to the
Participant’s Elective Deferrals and QMACs (to the extent used
in the ADP Test) for the test year. Excess Contributions shall
be distributed from the Participant’s QNEC account only to the
extent that such Excess Contributions exceed the Participant’s
Elective Deferral and QMAC account for the applicable test
year.
	 
	 	(5)	 	The return of an Excess
Contribution under a Plan established under a Davis-Bacon
Adoption Agreement will be reported as additional wages paid to
the affected Participant.
	 
	 	(6)	 	For Plan Years beginning after
2005, distribution of Elective Deferrals that are Excess
Aggregate Contributions shall be made from the Participant’s
pre-tax Elective Deferrals account before the Participant’s
Roth Elective Deferral account, to the extent pre-tax Elective
Deferrals were made for the year, unless the Participant
specifies otherwise.

	 	(b)	 	Distribution Of Excess Aggregate Contributions

	 	(1)	 	Excess Contributions and Excess
Aggregate Contributions are allocated to the Highly Compensated
Employees with the largest amount of Employer contributions
taken into account in calculating

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	 	 	 	the ADP or ACP Test for the year in which the excess arose,
beginning with the Highly Compensated Employee with the
largest amount of such Employer contributions and continuing
in descending order until all the Excess Contributions and
Excess Aggregate Contributions have been allocated.
Notwithstanding any other provisions of this Plan, Excess
Aggregate Contributions, plus any income and minus any loss
allocable thereto, shall be forfeited, if forfeitable or if
not forfeitable, distributed no later than the last day of
each Plan Year to Participants to whose accounts such Excess
Aggregate Contributions were allocated for the preceding
Plan Year. Excess Aggregate Contributions are allocated to
the Highly Compensated Employees with the largest
Contribution Percentage Amounts taken into account in
calculating the ACP Test for the year in which the excess
arose, beginning with the Highly Compensated Employee with
the largest amount of such Contribution Percentage and
continuing in descending order until all the Excess
Aggregate Contributions have been allocated. For purposes
of the preceding sentence, the “largest amount” is
determined after distribution of any Excess Aggregate
Contributions.
	 
	 	(2)	 	If such Excess Aggregate
Contributions are distributed more than two and one-half (21/2)
months after the last day of the Plan Year in which such excess
amount arose, a 10% excise tax will be imposed on the Employer
maintaining the Plan with respect to those amounts. Excess
Aggregate Contributions shall be treated as Annual Additions
for purposes of Article X, Limitations On Allocations, even if
distributed.
	 
	 	(3)	 	Excess Aggregate Contributions
shall be adjusted for any income or loss up to the date of the
distribution. The income or loss allocable to the Excess
Aggregate Contributions allocated to each Participant is the
sum of (1) income or loss allocable to each Participant’s
Employee Contribution account, Matching Contribution account,
QMAC account (if any, and if all amounts therein are not used
in the ADP Test) and, if applicable, QNEC account and the
Elective Deferral account for the Plan Year multiplied by a
fraction, the numerator of which is such Participant’s Excess
Aggregate Contributions for the year and the denominator is the
Participant’s account balance(s) attributable to Contribution
Percentage Amounts without regard to any income or loss
occurring during such Plan Year; and (2) ten percent (10%) of
the amount determined under (1) multiplied by the number of
whole calendar months between the end of the Plan Year and the
date of distribution, counting the month of distribution if
distribution occurs after the fifteenth (15th) of
such month.
	 
	 	(4)	 	Excess Aggregate Contributions
shall be forfeited, if forfeitable, or distributed on a
pro-rata basis, from the Participant’s Voluntary After-tax
Contribution account, Required After-tax Contribution account,
Matching Contribution account and QMAC account (and if
applicable the Participant’s QNEC account, and/or Elective
Deferral account, or both).
	 
	 	(5)	 	Forfeitures of Excess Aggregate
Contributions may be reallocated to the accounts of other
Participants or applied to reduce Employer contributions, or as
otherwise elected by the Employer.

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	 	(6)	 	Notwithstanding paragraphs
(b)(2)(vi)(A) and (B) of Regulations Section 1.401(m)-2, a
distribution of Excess Aggregate Contributions is not
includible in gross income to the extent it represents a
distribution of Roth 401(k) Deferrals. However, the income
allocable to a corrective distribution of Excess Aggregate
Contributions that are Roth 401(k) Deferrals is taxed in the
same manner as income allocable to a corrective distribution of
Excess Aggregate Contributions that are not Roth 401(k)
Deferrals.
	 
	 	(7)	 	Employee Contributions shall
mean any contribution (other than Roth 401(k) Deferrals) made
to the Plan by or on behalf of a Participant that is included
in the Participant’s gross income in the year in which made and
that is maintained under a separate account to which earnings
and losses are allocated.

	 	(c)	 	Income on Corrective Distributions of Roth 401(k) Deferrals — A
distribution of Excess Contributions or Excess Aggregate Contributions or
Excess Deferrals is not includible in gross income to the extent it represents
a distribution of designated Roth 401(k) Deferrals. However, the income
allocable to a corrective distribution of Excess Contributions, Excess
Aggregate Contributions or Excess Deferrals that are designated Roth 401(k)
Deferrals is included in gross income in the same manner as income allocable to
a corrective distribution of Excess Contributions, Excess Aggregate
Contributions or Excess Deferrals that are not designated as Roth 401(k)
Deferrals.
	 
	 	(d)	 	Distributions of Roth 401(k) Deferrals — Unless otherwise
elected on the Adoption Agreement, the Plan Administrator may adopt a uniform
written administrative policy that permits a Participant (including a Highly
Compensated Employee) who has made Elective Deferrals for a year where such
Elective Deferrals includes both pre-tax Elective Deferrals and Roth 401(k)
Deferrals to elect whether the Excess Deferrals, Excess Contributions, Excess
Aggregate Contributions and Excess Annual Additions are to be attributed to
pre-tax Elective Deferrals or Roth 401(k) Deferrals or a combination of the
two. In the event that no such administrative policy is adopted, Excess
Contributions will be first attributed to pre-tax Elective Deferrals, and if
such pre-tax contributions are not in an amount sufficient to make full
correction, will then be attributed to Roth 401(k) Deferrals.

	 	11.5	 	Qualified Non-Elective And/Or Matching Contributions

The Employer may make a Qualified Non-Elective Contribution (QNEC) or Qualified Matching
Contribution (QMAC) for Non-Highly Compensated Employees (whether or not so designated in
the Adoption Agreement) to increase the Average Deferral Percentage and/or Average
Contribution Percentage to the point where the Plan passes the ADP Test and/or the ACP Test.
The following rules apply with respect to such contributions:

	 	(a)	 	A QNEC or QMAC used in the ADP Test may not also be included in
the ACP Test.
	 
	 	(b)	 	If testing is done on the basis of current Plan Year data,
QNECs and/or QMACs must be made and credited to Participant accounts not later
than the last day of the twelve (12) consecutive month period following the end
of the Plan Year being tested.
	 
	 	(c)	 	If testing is done on the basis of Prior Plan Year data for
Non-Highly Compensated Employees, QNECs and/or QMACs for such Employees must be
contributed not later than the last day of the Plan Year being tested.
	 
	 	(d)	 	If the Employer makes Non-Elective Contributions which are not
designated as Qualified Non-Elective Contributions at the time of the
contribution to the Plan, the Plan Administrator may redesignate such
contributions as Qualified Non-Elective

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	 	 	 	Contributions if the contributions otherwise satisfy the requirements of a
Qualified Non-Elective Contribution.
	 
	 	(e)	 	The Employer’s contribution will be allocated to a group of
Non-Highly Compensated Participants designated by the Plan Administrator. The
allocation will be the lesser of the amount required to pass the ADP/ACP Test,
or the maximum permitted under Code Section 415.
	 
	 	(f)	 	Effective for Plan Years beginning on or after January 1,
2006, Qualified Non-Elective Contributions made pursuant to any election on
the Adoption Agreement cannot be taken into account for the ADP test for a
Plan Year for an NHCE to the extent such contributions exceed the product of
that NHCE’s Compensation and the greater of 5% or two times the Plan’s
representative contribution rate for purposes of §1.401(m)-2(a)(6) (v)(B).
The representative contribution rate is the lowest applicable contribution
rate of any eligible NHCE among a group of eligible NHCEs that consist of half
of all eligible NHCEs for the Plan Year (or if greater, the lowest applicable
contribution rate of any eligible NHCE in the group of all eligible NHCEs for
the Plan Year and who is employed by the Employer on the last day of the Plan
Year.)
	 
	 	 	 	If the Employer has elected in the Adoption Agreement to use the Current
Year Testing method, in lieu of distributing Excess Contributions, or Excess
Aggregate Contributions and to the extent elected by the Employer in the
Adoption Agreement, the Employer may make a QNEC on behalf of Participants
that are sufficient to satisfy the ADP Test and the ACP Test. Such QNEC
will be allocated either to all Participants or only to Participants who are
Non-Highly Compensated Employees, as elected by the Employer in the Adoption
Agreement, in the ratio in which each such Participant’s Compensation for
the Plan Year bears to the total Compensation of all such Participants for
such Plan Year.
	 
	 	 	 	          Qualified Non-Elective Contributions that are made in connection with an
Employer’s obligation to pay prevailing wages under the Davis Bacon Act or
similar legislation can be taken into account for a Plan Year for an NHCE to
the extent such contributions do not exceed 10 % of that NHCEs Compensation.

	7.	 	Article XI entitled “ANTIDISCRIMINATION TESTING” is further amended by the addition of a new
subparagraph 11.14(f) at the end of paragraph 11.14 entitled “ACP Test Safe Harbor”, which
shall read as follows:

	 	“(f)	 	Effective as of the first day of the Plan’s 2006 Plan Year, if the Employer has
specified other eligibility requirements pursuant to sub-paragraph (e) immediately
above, the additional matching contributions may be subject to the testing requirements
of paragraph 11.2 rather than the Safe-Harbor rules of paragraph 11.10. The testing
requirements of paragraph 11.2 will apply in any year that a Non-Highly Compensated
Employee fails to receive a full allocation of matching contributions, due to the
imposition of the more restrictive eligibility requirements.”

	8.	 	Article XII entitled “ADMINISTRATION” is amended by the addition of a new subparagraph 12.9
(n) to subparagraph 12.9 entitled “Participant Loans”:

	 	“(n)	 	Special Rules for the application of the provisions of the
Katrina Emergency Tax Relief Act of 2005 (KETRA) and the Gulf Opportunity Zone
Act of 2005 (GOZA) — If applicable, the Plan Sponsor is authorized to comply
with the provisions of KETRA, GOZA and any otherwise applicable IRS and DOL
guidance and is deemed to have retroactively amended its Plan to comply with
applicable law and regulation. The following provisions shall apply to
participant loans made to qualified Plan Participants whose principal residence
was in a federally proclaimed disaster area

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	 	 	 	affected by Hurricane Katrina, Hurricane Rita or Hurricane Wilma, and as a
result of any or all of such Hurricanes incurred an economic loss. For
purposes of these provisions, such rules will apply to participant loans
that are granted at any time on or after August 25, 2005 and before December
31, 2006 with respect to Hurricane Katrina, at any time on or after December
21, 2005 and before December 31, 2006, with respect to Hurricane Rita, and
at any time on or after December 21, 2005 and before December 31, 2006, with
respect to Hurricane Wilma.

	 	(1)	 	For participant loans made to Plan Participants
eligible for KETRA or GOZA relief during the foregoing periods, the
maximum permissible dollar limit for participant loans is increased
from $50,000 to $100,000.
	 
	 	(2)	 	In calculating the maximum available loan
amount available for a Plan Participant eligible for KETRA or GOZA
relief, the entire present value of the Participant’s vested account
balance under the Plan shall be used.
	 
	 	(3)	 	In the event a Participant who is eligible for
relief under KETRA or GOZA had an outstanding participant loan as of
August 25, 2005 with respect to Hurricane Katrina, September 23, 2005
with respect to Hurricane Rita, or October 23, 2005 with respect to
Hurricane Wilma, and the current maturity date of such participant loan
is on or before December 31, 2006, the applicable maturity date of such
participant loan shall be extended for one (1) year. Repayment amounts
of such affected participant loans shall be adjusted to take into
account the extension and additional interest accruing during such
extension. For purposes of this relief, the extension period shall be
disregarded in determining the five-year period under Code Section 72.
	 
	 	(4)	 	Additionally, the Plan could have provided
for special hurricane–related loans to Plan Participants who lived or
worked in the Hurricane Katrina disaster area that qualified for
individual relief from the Federal Emergency Management Agency.
Similar relief is not available for Hurricanes Rita and Wilma. These
special loans could also have been made available to Plan Participants
residing outside the disaster area if they had a child, parent,
grandparent or other dependent that lived or worked in the disaster
area. These loans are subject to and must satisfy the requirements of
Code Section 72(p). The increase in the loan limit to $100,000 as
specified in (1) above did not apply to these loans.”

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AMENDMENT

TO THE

BASIC PLAN DOCUMENT #01

The Employer named in the Adoption agreement hereby amends Basic Plan Document #01 (the “Plan”) to
reflect the automatic rollover provisions applicable to involuntary cash-out distributions as
provided in Internal Revenue Service Notice 2005-5 (the ”Notice”). This amendment is intended as a
good faith compliance effort with the requirements of the Notice and is to be construed in
accordance with the Notice and the guidance issued thereunder. Except as otherwise provided, this
amendment shall be effective as of March 28, 2005. This amendment shall supersede the provisions
of the Plan to the extent those provisions are inconsistent with the provisions of this amendment.
The Basic Plan Document #01 is hereby amended as follows:

Paragraphs 6.3(b), 6.3(h), and 6.6(c) of the Plan are deleted in their entirety. Paragraph 6.3(b)
is replaced by the following Paragraph (b), and Paragraphs 6.3(h), 6.6(c) are replaced with the
word “reserved.” New Paragraphs 7.15 (d), (g) and (h) are added, existing Paragraphs 7.15 (d), (e)
and (f) are relabeled as (e), (f) and (i) respectively, and Paragraph 7.15 (c) is amended as
indicated below:

	6.3	(b)	 	When a Participant terminates employment and the value of the Participant’s Vested
Account Balance is not greater than $5,000, the Participant may request a distribution of the
value of the entire vested portion of such account balance, without the need for spousal
consent, and the nonvested portion shall be treated as a forfeiture upon such distribution.
	 
	 	 	 	Unless elected otherwise in the Adoption Agreement, if the Participant does not
elect to have such distribution paid directly to an Eligible Retirement Plan, as
specified by the Participant, or does not elect to receive the distribution
directly, the Plan Administrator may pay the distribution in a Direct Rollover to
an Individual Retirement Plan that is designated by the Plan Administrator and is
communicated to the Plan Participant. The extent to which rollover amounts will be
included or excluded in determining the value of the Participant’s Vested Account
Balance for purposes of the Plan’s involuntary cash-out rules will be governed by
the existing Adoption Agreement provision. Notwithstanding the preceding sentence,
rollover amounts will always be considered in determining if the $1,000 threshold
has been exceeded.
	 
	 	 	 	Unless elected otherwise in the Adoption Agreement, if a Participant’s Vested
Account Balance is $1,000 or less, such distribution shall be paid in a direct
distribution to the Participant after complying with the federal tax withholding
rules. Terminated Participants receiving an involuntary distribution of $200 or
more must be notified of their right to have such amounts directly rolled-over to
an IRA or qualified plan of their choosing.
	 
	 	 	 	If elected in the Adoption Agreement, the Plan Administrator may suspend the
processing of the automatic rollover provisions of this paragraph of amounts set
forth in the adoption agreement but not greater than $5,000 from March 28, 2005
through December 31, 2005, or until such time as adequate administrative procedures
are put in place to process an involuntary cash-out in accordance with the
foregoing provisions. Any such automatic rollover, which has been suspended during
this period, shall be completed no later than December 31, 2005.
	 
	 	(h)	 	Reserved.

	6.6	(c)	 	Reserved.

	7.15	(c)	 	The number $5,000 is replaced by $1,000 where it appears in
the second sentence of said paragraph.

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	 	(d)	 	Unless elected otherwise in the Adoption Agreement, if a terminated
Participant cannot be located, the Participant’s Vested Account Balance is in excess
of $1,000 but not greater than $5,000, and no Participant election has been made
regarding the disposition of their Vested Account Balance, the automatic rollover
provisions of Code Section 401(a)(31)(B) as contained at paragraph 6.3(b) shall be
applied to said Account.
	 
	 	(g)	 	In the event of a plan termination, the Plan Administrator shall apply such
search methods for locating missing Participants as described in the Department of
Labor Field Assistance Bulletin 2004-02 as it considers in its sole discretion
appropriate under the circumstances.
	 
	 	(h)	 	In making distributions from a terminating Plan on behalf of Participants who
are either determined to be missing or who otherwise fail to elect a method of
distribution in connection with the termination of the Plan, the Plan Administrator
shall comply with the relevant requirements of proposed Treasury Regulation
§2550.404a-2, without regard to the amount involved in the rollover distribution.

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