Document:

.7

Exhibit 10.7(c)

THE MANITOWOC COMPANY, INC.

2003 INCENTIVE STOCK AND AWARDS PLAN

1.     Purpose and Construction.

(a)     Purpose.  The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan has two complementary purposes: (i) to attract and retain outstanding people as officers, employees, consultants and advisors and (ii) to increase shareholder value.  The Plan will provide participants incentives to increase shareholder value by offering the opportunity to acquire shares of the Company's common stock, receive monetary payments based on the value of such common stock, or receive other incentive compensation, on the potentially favorable terms that this Plan provides. 

(b)     Definitions.  All capitalized terms used in this Plan have the meanings given in Section 13. 

2.     Administration.

(a)     Committee Administration.  The Committee has full authority to administer this Plan, including the authority to (i) interpret the provisions of this Plan, (ii) prescribe, amend and rescind rules and regulations relating to this Plan, (iii) correct any defect, supply any omission, or reconcile any inconsistency in any Award or agreement covering an Award in the manner and to the extent it deems desirable to carry this Plan into effect, and (iv) make all other determinations necessary or advisable for the administration of this Plan.  A majority of the members of the Committee will constitute a quorum, and a majority of the Committee's members present at a meeting at which a quorum is present must make all determinations of the Committee.  The Committee may make any determination under this Plan without notice or meeting of the Committee by a writing that a majority of the Committee members have signed.  All Committee determinations are final and binding.

(b)     Delegation to Other Committees or Officers.  To the extent applicable law permits, the Board may delegate to another committee of the Board or to one or more officers of the Company any or all of the authority and responsibility of the Committee.  However, no such delegation is permitted with respect to individuals who are Section 16 Participants at the time any such delegated authority or responsibility is exercised.  The Board also may delegate to another committee of the Board consisting entirely of Non-Employee Directors any or all of the authority and responsibility of the Committee with respect to individuals who are Section 16 Participants.  If the Board has made such a delegation, then all references to the Committee in this Plan include such other committee or one or more officers to the extent of such delegation. 

(c)     No Liability.  No member of the Committee, and no officer to whom a delegation under subsection (b) has been made, will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan or any Award.  The Company will indemnify and hold harmless such individual to the maximum extent that the law and the Company's bylaws permit. 

3.     Eligibility.  The Committee may designate from time to time the Participants to receive Awards under this Plan.  The Committee's designation of a Participant in any year will not require the Committee to designate such person to receive an Award in any other year.  The Committee may consider such factors as it deems pertinent in selecting a Participant and in determining the types and amounts of Awards.  In making such selection and determination, factors the Committee may consider include: (a) the Company's financial condition; (b) anticipated profits for the current or future years; (c) the Participant's contributions to the profitability and development of the Company; and (d) other compensation provided to the Participant.

4.     Discretionary Grants of Awards.  

(a)     Terms and Conditions of Awards.  Subject to the terms of this Plan, the Committee has full power and authority to determine: (i) the type or types of Awards to be granted to each Participant; (ii) the number of Shares with respect to which an Award is granted to a Participant, if applicable; and (iii) any other terms and conditions of any Award granted to a Participant.  If the employment of a Participant shall terminate by reason of death or Disability, as to Awards held by the Participant as of the effective date of such termination of employment, all Options and SARs which are not yet vested shall be fully and immediately vested and exercisable, all restrictions on Restricted Stock shall be accelerated and deemed to have lapsed, and all  Performance Goals applicable to Performance Shares or Performance Units shall be deemed to have been achieved.  If the employment of a Participant shall terminate for any reason other than death or Disability, as to Awards held by the Participant of the effective date of such termination of employment, unless the Committee, in its sole discretion, shall otherwise determine, all nonvested Options and SARs, Restricted Stock as to which all restrictions have not lapsed, and all Performance Shares and Performance Units for which the Performance Goals have not been fully satisfied shall be immediately forfeited.  If the Committee determines not to require such immediate forfeiture, then the maximum exercise period which may be permitted for Options and SARs following such employment termination shall be the shorter of one year or the scheduled expiration date of the Award. 

(b)     Single or Tandem Awards.  Awards under this Plan may be granted either alone or in addition to, in tandem with, or in substitution for any other Award (or any other award granted under another plan of the Company or any Affiliate).  Tandem Awards may be granted either at the same time as, or at different times from, the grant of the other Awards (or awards) to which they relate. 

5.     Shares Reserved under this Plan.

(a)     Plan Reserve.  An aggregate of 3,000,000 Shares are reserved for issuance under this Plan.  As to Awards that are (i) Restricted Stock, (ii) Performance Shares, or (iii) Performance Units that are paid in Shares or the value of which is based on the Fair Market Value of Shares, the Company may not issue, or make payments as to, more than 1,000,000 Shares in the aggregate.  The limitations of this subsection are subject to adjustments as provided in Section 11. 

(b)     Replenishment of Shares Under this Plan.  The number of Shares reserved for issuance under this Plan shall be reduced only by the number of Shares delivered in payment or settlement of Awards.  If an Award lapses, expires, terminates or is cancelled without the issuance of Shares under the Award, then the Shares subject to, reserved for or delivered in payment in respect of such Award may again be used for new Awards under this Plan as determined under subsection (a), including issuance as Restricted Stock or pursuant to incentive stock options.  If Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance of the Shares, if Shares are used in connection with the satisfaction of tax obligations relating to an Award, or if previously owned Shares are delivered to the Company in payment of the exercise price of an Award, then the Shares subject to, reserved for or delivered in payment in respect of such Award may again be used for new Awards under this Plan as determined under subsection (a), including issuance as Restricted Stock, but such shares may not be issued pursuant to incentive stock options. 

(c)     Addition of Shares from Predecessor Plan.  After the Effective Date of this Plan, if any Shares subject to awards granted under The Manitowoc Company, Inc. 1995 Stock Plan would again become available for new grants under the terms of such prior plan if the prior plan were still in effect, then those Shares will be available for the purpose of granting Awards under this Plan, thereby increasing the Shares available under this Plan as determined under the first sentence of subsection (a).  Any such Shares will not be available for future awards under the terms of such prior plan.

(d)     Participant Limitations.  Subject to adjustment as provided in Section 11, no Participant may be granted Awards under this Plan that could result in such Participant: (i) receiving in any single fiscal year of the Company Options, with or without any related Stock Appreciation Rights, or Stock Appreciation Rights not related to Options, for more than 300,000 Shares, (ii) receiving Awards of Restricted Stock in any single fiscal year of the Company relating to more than 200,000 Shares, (iii) receiving Performance Shares in any single fiscal year of the Company relating to more than 200,000 Shares; (iv) receiving Awards of Performance Units in any single fiscal year of the Company with a designated dollar value that exceeds $3,000,000 and/or receiving Awards of Performance Units in any single fiscal year of the Company, the value of which is based on the Fair Market Value of Shares, relating to more than 200,000 Shares.  In all cases, determinations under this Section 5 shall be made in a manner that is consistent with the exemption for performance-based compensation that Code Section 162(m) provides. 

6.     Options and Stock Appreciation Rights.

(a)     Eligibility for Options.  The Committee may grant Options to any Participant it selects.  The Committee must specify whether the Option is an incentive stock option or a nonqualified stock option, but only employees of the Company or a Subsidiary may receive grants of incentive stock options.

(b)     Exercise Price of Options.  For each Option, the Committee will establish the exercise price, which may not be less than the Fair Market Value of the Shares subject to the Option as determined on the date of grant.  The Committee shall also determine the method or methods by which, and the forms or forms, including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which payment of the exercise price with respect to any Option may be made or deemed to have been made.

(c)     Terms and Conditions of Options.  Subject to the terms of the Plan, an Option will be exercisable at such times and subject to such conditions as the Committee specifies, except that the Option must terminate no later than ten (10) years after the date of grant.  In all other respects, the terms of any incentive stock option should comply with the provisions of Code Section 422 except to the extent the Committee determines otherwise.  

(d)     Eligibility and Exercise Price for Stock Appreciation Rights.  The Committee may grant Stock Appreciation Rights to any Participant it selects.  Each Stock Appreciation Right may relate to all or a portion of a specific Option granted under the Plan and may be granted concurrently with the Option to which it relates or at any time prior to the exercise, termination or expiration of such Option (a "Tandem SAR"), or may be granted independently of any Option, as determined by the Committee.  If the Stock Appreciation Right is granted independently of an Option, the exercise price of such Stock Appreciation Right shall be the Fair Market Value of a Share on the date of grant; provided, however, that the Committee may, in its discretion, fix an exercise price in excess of the Fair Market Value of a Share on such grant date.

(e)     Upon Exercise of a Stock Appreciation Right.  Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive, without payment to the Company, either (A) that number of Shares determined by dividing (i) the total number of Shares subject to the Stock Appreciation Right being exercised by the Participant, multiplied by the amount by which the Fair Market Value of a Share on the day the right is exercised exceeds the exercise price (such amount being hereinafter referred to as the "Spread"), by (ii) the Fair Market Value of a Share on the exercise date; or (B) cash in an amount determined by multiplying (i) the total number of Shares subject to the Stock Appreciation Right being exercised by the Participant, by (ii) the amount of the Spread; or (C) a combination of Shares and cash, in amounts determined as set forth in clauses (A) and (B) above, as determined by the Committee in its sole discretion; provided, however, that, in the case of a Tandem SAR, the total number of Shares which may be received upon exercise of a Stock Appreciation Right for Common Stock shall not exceed the total number of Shares subject to the related Option or portion thereof, and the total amount of cash which may be received upon exercise of a Stock Appreciation Right for cash shall not exceed the Fair Market Value on the date of exercise of the total number of Shares subject to the related Option or portion thereof.

(f)     Terms and Conditions of Stock Appreciation Rights.  Subject to the terms of the Plan, a Stock Appreciation Right will be exercisable at such times and subject to such conditions as the Committee specifies; provided, however, that a Tandem SAR shall not be exercisable prior to or later than the time the related Option could be exercised; and provided, further, that in any event a Stock Appreciation Right shall terminate no later than ten (10) years after the date of grant.  

(g)     Tandem SARs and Options.  With respect to Options issued with Tandem SARs, the right of a Participant to exercise the Tandem SAR shall be cancelled if and to the extent the related Option is exercised, and the right of a Participant to exercise an Option shall be cancelled if and to the extent that Shares covered by such Option are used to calculate shares or cash received upon exercise of the Tandem SAR.

7.     Restricted Stock, Performance Shares and Performance Units.  

(a)     Eligibility for Restricted Stock, Performance Shares and Performance Units.  The Committee may grant awards of Restricted Stock, Performance Shares or Performance Units to Participants the Committee selects.

(b)     Terms and Conditions.  Subject to the terms of the Plan, each award of Restricted Stock, Performance Shares or Performance Units may be subject to such terms and conditions as the Committee determines appropriate, including, without limitation, a condition that one or more Performance Goals be achieved for the Participant to realize all or a portion of the benefit provided under the Award.  However, an award of Restricted Stock that requires the achievement of Performance Goals must have a restriction period of at least one year, and an award of Restricted Stock that is not subject to Performance Goals must have a restriction period of at least three years.  The Committee may determine to pay Performance Units in cash, in Shares, or in a combination of cash and Shares. 

8.     Transferability.  Except as otherwise provided in this Section, or as the Committee otherwise provides, each Award granted under this Plan is not transferable by a Participant other than by will or the laws of descent and distribution, and during the lifetime of the Participant such Awards may be exercised only by the Participant or the Participant's legal representative or by the permitted transferee of such Participant as hereinafter provided (or by the legal representative of such permitted transferee).  A Participant may transfer Awards to (i) his or her spouse, children or grandchildren ("Immediate Family Members"); (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members; or (iii) a partnership in which such Immediate Family Members are the only partners.  The transfer will be effective only if the Participant receives no consideration for such transfer.  Subsequent transfers of transferred Awards are prohibited except transfers to those persons or entities to which the Participant could have transferred such Awards, or transfers otherwise in accordance with this Section. 

9.     Termination and Amendment of Plan; Amendment, Modification or Cancellation of Awards.

(a)     Term of Plan.  This Plan will terminate on, and no Award may be granted after, the ten (10) year anniversary of the Effective Date, unless the Board earlier terminates this Plan pursuant to subsection (b). 

(b)     Termination and Amendment.  The Board may amend, alter, suspend, discontinue or terminate this Plan at any time, subject to the following limitations: 

(i)     shareholders must approve any amendment of this Plan if required by: (A) the rules and/or regulations promulgated under Section 16 of the Exchange Act (for this Plan to remain qualified under Rule 16b-3), (B) the Code or any rules promulgated thereunder (to allow for incentive stock options to be granted under this Plan or to enable the Company to comply with the provisions of Code Section 162(m) so that the Company can deduct compensation in excess of the limitation set forth in that section), or (C) the listing requirements of the New York Stock Exchange or any principal securities exchange or market on which the Shares are then traded (to maintain the listing or quotation of the Shares on that exchange); and 

(ii)     shareholders must approve any of the following Plan amendments: (A) an amendment to materially increase any number of Shares specified in Section 5(a) or 5(d) (except as permitted by Section 11); (B) an amendment to shorten the restriction periods specified in Section 7(b); or (C) an amendment to the provisions of Section 9(e). 

(c)     Amendment, Modification or Cancellation of Awards.  Except as provided in subsection (e) and subject to the requirements of this Plan, the Committee may waive any restrictions or conditions applicable to any Award or the exercise of the Award, and the Committee may modify, amend, or cancel any of the other terms and conditions applicable to any Awards by mutual agreement between the Committee and the Participant or any other persons as may then have an interest in the Award, so long as any amendment or modification does not increase the number of Shares issuable under this Plan (except as permitted by Section 11), but the Committee need not obtain Participant (or other interested party) consent for the cancellation of an Award pursuant to the provisions of Section 11(a).  Notwithstanding anything to the contrary in this Plan, the Committee shall have sole discretion to alter the selected Performance Goals subject to shareholder approval, to the extent required to qualify an Award for the performance-based exemption provided by Code Section 162(m) (or any successor provision thereto).  Notwithstanding the foregoing, in the event the Committee determines it is advisable to grant an Award which does not qualify for the performance-based exemption under Code Section 162(m) (or any successor thereto), the Committee may make such grants without satisfying the requirements therefor.

(d)     Survival of Committee Authority and Awards.  Notwithstanding the foregoing, the authority of the Committee to administer this Plan and modify or amend an Award may extend beyond the date of this Plan's termination.  In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted to them, and all unexpired Awards will continue in force and effect after termination of this Plan except as they may lapse or be terminated by their own terms and conditions. 

(e)     Repricing Prohibited.  Notwithstanding anything in this Plan to the contrary, and except for the adjustments provided in Section 11, neither the Committee nor any other person may decrease the exercise price for any outstanding Option or Stock Appreciation Right granted under this Plan after the date of grant nor allow a Participant to surrender an outstanding Option or Stock Appreciation Right granted under this Plan to the Company as consideration for the grant of a new Option or Stock Appreciation Right with a lower exercise price. 

(f)     Foreign Participation.  To assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of this Plan as it determines is necessary or appropriate for such purposes.  Any such amendment, restatement or alternative versions that the Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.  In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions of Section 9(b)(ii). 

10.     Taxes.  The Company is entitled to withhold the amount of any tax attributable to any amount payable or Shares deliverable under this Plan after giving the person entitled to receive such amount or Shares notice as far in advance as practicable, and the Company may defer making payment or delivery if any such tax may be pending unless and until indemnified to its satisfaction.  The Committee may permit a Participant to pay all or a portion of the federal, state and local withholding taxes arising in connection with (a) the exercise of a nonqualified stock option, (b) a disqualifying disposition of Shares received upon the exercise of an incentive stock option, or (c) the lapse of restrictions on Restricted Stock, by electing to (i) have the Company withhold Shares otherwise issuable under the Award, (ii) tender back Shares received in connection with such Award or (iii) deliver other previously owned Shares which have been beneficially owned by the Participant for at least six (6) months, in each case having a Fair Market Value equal to the amount to be withheld.  However, the amount to be withheld may not exceed the total minimum federal, state and local tax withholding obligations associated with the transaction.  The election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Committee requires.  The Fair Market Value of fractional Shares remaining after payment of the withholding taxes may be paid to the Participant in cash. 

11.     Adjustment Provisions; Change of Control.  

(a)     Adjustment of Shares.  If the Committee determines that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that the Committee determines an adjustment to be appropriate to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, then, subject to Participants' rights under subsection (c), the Committee may, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares subject to this Plan (including the number and type of Shares that may be granted as Restricted Stock or issued pursuant to incentive stock options, that may be granted to a Participant in any fiscal year, and that may after the event be made the subject of Awards under this Plan), (ii) the number and type of Shares subject to outstanding Awards, and (iii) the grant, purchase, or exercise price with respect to any Award.  In any such case, the Committee may also make provision for a cash payment in an amount determined by the Committee to the holder of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of an Award) effective at such time as the Committee specifies (which may be the time such transaction or event is effective), but if such transaction or event constitutes a Change of Control, then (A) such payment shall be at least as favorable to the holder as the greatest amount the holder could have received in respect of such Award under subsection (c) and (B) from and after the Change of Control, the Committee may make such a provision only if the Committee determines that doing so is necessary to substitute, for each Share then subject to an Award, the number and kind of shares of stock, other securities, cash or other property to which holders of Common Stock are or will be entitled in respect of each Share pursuant to the transaction or event in accordance with the last sentence of this subsection (a).  However, in each case, with respect to Awards of incentive stock options, no such adjustment may be authorized to the extent that such authority would cause this Plan to violate Code Section 422(b).  Further, the number of Shares subject to any Award payable or denominated in Shares must always be a whole number.  Without limitation, subject to Participants' rights under subsection (c), in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event, whether or not constituting a Change of Control, other than any such transaction in which the Company is the continuing corporation and in which the outstanding Common Stock is not being converted into or exchanged for different securities, cash or other property, or any combination thereof, the Committee may substitute, on an equitable basis as the Committee determines, for each Share then subject to an Award, the number and kind of shares of stock, other securities, cash or other property to which holders of Common Stock are or will be entitled in respect of each Share pursuant to the transaction. 

(b)     Issuance or Assumption.  Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization, the Committee may authorize the issuance or assumption of awards upon such terms and conditions as it may deem appropriate. 

(c)     Change of Control.  Except to the extent the Committee provides a result more favorable to holders of Awards or as otherwise set forth in an Agreement covering an Award, in the event of a Change of Control: 
(i)     each holder of an Option (A) shall have the right at any time thereafter to exercise the Option in full whether or not the Option was theretofore exercisable; and (B) shall have the right, exercisable by written notice to the Company within sixty (60) days after the Change of Control, to receive, in exchange for the surrender of the Option, an amount of cash equal to the excess of the Change of Control Price of the Shares covered by the Option that is so surrendered over the exercise price of such Shares under the Award; 

(ii)     Restricted Stock that is not then vested shall vest upon the date of the Change of Control and each holder of such Restricted Stock shall have the right, exercisable by written notice to the Company within sixty (60) days after the Change of Control, to receive, in exchange for the surrender of such Restricted Stock, an amount of cash equal to the Change of Control Price of such Restricted Stock; 

(iii)     each holder of a Performance Share and/or Performance Unit for which the performance period has not expired shall have the right, exercisable by written notice to the Company within sixty (60) days after the Change of Control, to receive, in exchange for the surrender of the Performance Share and/or Performance Unit, an amount of cash equal to the product of the value of the Performance Share and/or Performance Unit and a fraction the numerator of which is the number of whole months which have elapsed from the beginning of the performance period to the date of the Change of Control and the denominator of which is the number of whole months in the performance period; 

(iv)     each holder of a Performance Share and/or Performance Unit that has been earned but not yet paid shall receive an amount of cash equal to the value of the Performance Share and/or Performance Unit; and 

(v)     all annual incentive awards that are earned but not yet paid shall be paid, and all annual incentive awards that are not yet earned shall be deemed to have been earned pro rata, as if the Performance Goals are attained as of the effective date of the Change of Control, by taking the product of (A) the Participant's maximum award opportunity for the fiscal year, and (B) a fraction, the numerator of which is the number of full or partial months that have elapsed from the beginning of the fiscal year to the date of the Change of Control and the denominator of which is twelve (12). 

For purposes of this Section 11, the "value" of a Performance Share shall be equal to, and the "value" of a Performance Unit for which the value is equal to the Fair Market Value of Shares shall be based on, the Change of Control Price. 

12.     Miscellaneous.

(a)     Other Terms and Conditions.  The grant of any Award under this Plan may also be subject to other provisions (whether or not applicable to the Award awarded to any other Participant) as the Committee determines appropriate, including, without limitation, provisions for: 
(i)     one or more means to enable Participants to defer the delivery of Shares or recognition of taxable income relating to Awards or cash payments derived from the Awards on such terms and conditions as the Committee determines, including, by way of example, the form and manner of the deferral election, the treatment of dividends paid on the Shares during the deferral period or a means for providing a return to a Participant on amounts deferred, and the permitted distribution dates or events (provided that no such deferral means may result in an increase in the number of Shares issuable under this Plan); 

(ii)     the purchase of Shares under Options in installments; 

(iii)     the payment of the purchase price of Options by delivery of cash or other Shares or other securities of the Company (including by attestation) having a then Fair Market Value equal to the purchase price of such Shares, or by delivery (including by fax) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price; 

(iv)     giving the Participant the right to receive dividend payments or dividend equivalent payments with respect to the Shares subject to the Award (both before and after the Shares subject to the Award are earned, vested or acquired), which payments may be either made currently or credited to an account for the Participant, and may be settled in cash or Shares, as the Committee determines; 

(v)     restrictions on resale or other disposition; and 

(vi)     compliance with federal or state securities laws and stock exchange requirements. 

(b)     No Fractional Shares.  No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Committee may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled, terminated or otherwise eliminated. 

(c)     Unfunded Plan.  This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect to this Plan's benefits.  This Plan does not establish any fiduciary relationship between the Company and any Participant or other person.  To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights of the Company's general unsecured creditors. 

(d)     Requirements of Law.  The granting of Awards under this Plan and the issuance of Shares in connection with an Award are subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required.  Notwithstanding any other provision of this Plan or any Award Agreement, the Company has no liability to deliver any Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements of any securities exchange or similar entity. 

(e)     Governing Law.  This Plan, and all agreements under this Plan, should be construed in accordance with and governed by the laws of the State of Wisconsin, without reference to any conflict of law principles.  Any legal action or proceeding with respect to this Plan, any Award or any Award Agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any Award Agreement, may only be brought and determined in a court sitting in the County of Manitowoc, or the Federal District Court for the Eastern District of Wisconsin sitting in the County of Milwaukee, in the State of Wisconsin. 

(f)     Severability.  If any provision of this Plan or any Award Agreement or any Award (i) is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or (ii) would disqualify this Plan, any Award Agreement or any Award under any law the Committee deems applicable, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of this Plan, Award Agreement or Award, then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such Award Agreement and such Award will remain in full force and effect. 

13.     Definitions.  Capitalized terms used in this Plan have the following meanings: 

(a)     "Affiliates" means any corporation, partnership, joint venture, or other entity during any period in which the Company owns, directly or indirectly, at least twenty percent (20%) of the equity, voting or profits interest, and any other business venture that the Committee designates in which the Company has a significant interest, as the Committee determines in its discretion. 

(b)     "Award" means grants of Options, Stock Appreciation Rights, Restricted Stock, Performance Shares, or Performance Units under this Plan.  "Award Agreement" means an agreement covering an Award in such form (consistent with the terms of the Plan) as shall have been approved by the Committee.

(c)     "Board" means the Board of Directors of the Company. 

(d)     "Change of Control" means the first to occur of the following with respect to the Company or any upstream holding company:
(i)     any "Person," as that term is defined in Sections 13(d) and 14(d) of the Exchange Act, but excluding the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "Beneficial Owner" (as that term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities; or 

(ii)     The Company is merged or consolidated with any other corporation or other entity, other than:  (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than eighty percent (80%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) the Company engages in a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no "Person" (as defined above) acquires more than thirty percent (30%) of the combined voting power of the Company's then outstanding securities.  Notwithstanding the foregoing, a merger or consolidation involving the Company shall not be considered a "Change of Control" if the Company is the surviving corporation and shares of the Company's Common Stock are not converted into or exchanged for stock or securities of any other corporation, cash or any other thing of value, unless persons who beneficially owned shares of the Company's Common Stock outstanding immediately prior to such transaction own beneficially less than a majority of the outstanding voting securities of the Company immediately following the merger or consolidation;

(iii)     The Company or any Subsidiary sells, assigns or otherwise transfers assets in a transaction or series of related transactions, if the aggregate market value of the assets so transferred exceeds fifty percent (50%) of the Company's consolidated book value, determined by the Company in accordance with generally accepted accounting principles, measured at the time at which such transaction occurs or the first of such series of related transactions occurs; provided, however, that such a transfer effected pursuant to a spin-off or split-up where shareholders of the Company retain ownership of the transferred assets proportionate to their pro rata ownership interest in the Company shall not be deemed a "Change of Control";

(iv)     The Company dissolves and liquidates substantially all of its assets;

(v)     At any time after the Effective Date when the "Continuing Directors" cease to constitute a majority of the Board.  For this purpose, a "Continuing Director" shall mean:  (A) the individuals who, at the Effective Date, constitute the Board; and (B) any new Directors (other than Directors designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (ii), or (iii) of this definition) whose appointment to the Board or nomination for election by Company shareholders was approved by a vote of at least two-thirds of the then-serving Continuous Directors; or 

(vi)     A determination by the Board, in view of then current circumstances or impending events, that a Change of Control of the Company has occurred, which determination shall be made for the specific purpose of triggering operative provisions of this Plan. 

(e)     "Change of Control Price" means the highest of the following: (i) the Fair Market Value of the Shares, as determined on the date of the Change of Control; (ii) the highest price per Share paid in the Change of Control transaction; or (iii) the Fair Market Value of the Shares, calculated on the date of surrender of the relevant Award in accordance with Section 11(c), but this clause (iii) shall not apply if in the Change of Control transaction, or pursuant to an agreement to which the Company is a party governing the Change of Control transaction, all of the Shares are purchased for and/or converted into the right to receive a current payment of cash and no other securities or other property. 

(f)     "Code" means the Internal Revenue Code of 1986, as amended.  Any reference to a specific provision of the Code includes any successor provision and the regulations promulgated under such provision. 

(g)     "Committee" means the Compensation and Benefits Committee of the Board (or such successor committee with the same or similar authority), which must be composed of not less than two (2) Directors, each of whom must qualify as an "outside director" within the meaning of Code Section 162(m) and as a "non-employee director" within the meaning of Rule 16b-3. 

(h)     "Common Stock" means the common stock of the Company. 

(i)     "Company" means The Manitowoc Company, Inc., a Wisconsin corporation, or any successor to The Manitowoc Company, Inc., a Wisconsin corporation.

(j)     "Director" means a member of the Board.

(k)     "Disability" means disability as defined in the Company's long-term disability plan covering exempt salaried employees.

(l)     "Effective Date" means the date the Company's shareholders approve this Plan. 

(m)     "Exchange Act" means the Securities Exchange Act of 1934, as amended.  Any reference to a specific provision of the Exchange Act includes any successor provision and the regulations and rules promulgated under such provision. 

(n)     "Fair Market Value" means, per Share on a particular date, the last sales price on such date on the national securities exchange on which the Common Stock is then traded, as reported in The Wall Street Journal, or if no sales of Common Stock occur on the date in question, on the last preceding date on which there was a sale on such exchange.  If the Shares are not listed on a national securities exchange, but are traded in an over-the-counter market, the last sales price (or, if there is no last sales price reported, the average of the closing bid and asked prices) for the Shares on the particular date, or on the last preceding date on which there was a sale of Shares on that market, will be used.  If the Shares are neither listed on a national securities exchange nor traded in an over-the-counter market, the price determined by the Committee, in its discretion, will be used. 

(o)     "Non-Employee Director" means any Director who is not an employee of the Company or any Affiliate.

(p)     "Option" means the right to purchase Shares at a stated price.  "Options" may either be "incentive stock options" which meet the requirements of Code Section 422, or "nonqualified stock options" which do not meet the requirements of Code Section 422. 

(q)     "Participant" means an officer or other employee of the Company or its Affiliates, or an individual that the Company or an Affiliate has engaged to become an officer or employee, or a consultant or advisor who provides services to the Company or its Affiliates, who the Committee designates to receive an Award under this Plan.  No Non-Employee Director is entitled to receive Awards under this Plan.

(r)     "Performance Goals" means any goals the Committee establishes that relate to one or more of the following with respect to the Company or any one or more Subsidiaries or other business units: revenue; cash flow; net cash provided by operating activities; net cash provided by operating activities less net cash used in investing activities; cost of goods sold; ratio of debt to debt plus equity; profit before tax; gross profit; net profit; net sales; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; Fair Market Value of Shares; basic earnings per share; diluted earnings per share; return on shareholder equity; average accounts receivable (calculated by taking the average of accounts receivable at the end of each month); average inventories (calculated by taking the average of inventories at the end of each month); return on average total capital employed; return on net assets employed before interest and taxes; economic value added; return on year-end equity; and/or in the case of Awards that the Committee determines will not be considered "performance-based compensation" under Code Section 162(m), such other goals as the Committee may establish in its discretion. 

(s)     "Performance Shares" means the right to receive Shares to the extent the Company or Participant achieves certain goals that the Committee establishes over a period of time the Committee designates consisting of one or more full fiscal years of the Company, but not in any event more than five years. 

(t)     "Performance Units" means the right to receive monetary units with a designated dollar value or monetary units the value of which is equal to the Fair Market Value of one or more Shares, to the extent the Company or Participant achieves certain goals that the Committee establishes over a period of time the Committee designates consisting of one or more full fiscal years of the Company, but in any event not more than five years. 

(u)     "Plan" means The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan, as amended from time to time. 

(v)     "Restricted Stock" means Shares that are subject to a risk of forfeiture and/or restrictions on transfer, which may lapse upon the achievement or partial achievement of Performance Goals during the period specified by the Committee and/or upon the completion of a period of service, as determined by the Committee. 

(w)     "Section 16 Participants" means Participants who are subject to the provisions of Section 16 of the Exchange Act. 

(x)     "Share" means a share of Common Stock. 

(y)     "Stock Appreciation Right" means the right to receive, without payment to the Company, an amount of cash or Shares as determined in accordance with Section 6, based on the amount by which the Fair Market Value on the relevant valuation date exceeds the exercise price.

(z)     "Subsidiary" means any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations (other than the last corporation in the chain) owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock in one of the other corporations in the chain.Bardon Group Plan Document

BMC INDUSTRIES, INC.

SAVINGS AND PROFIT SHARING PLAN

Fifth Declaration of Amendment

Pursuant to the retained power of amendment contained in
Section 11.2 of the BMC Industries, Inc. Savings and Profit Sharing Plan, the
undersigned hereby amends the Plan by way of restatement in the manner set
forth in the instrument entitled "BMC Industries, Inc. Savings and Profit
Sharing Plan - 2001 Revision" (the "Plan") attached hereto.

Except as otherwise specifically provided in the Plan, the
foregoing amendment is effective as of the Restatement Date as defined in the
Plan.

Dated:  November 30,
2001.

 

	
   

  	
  BMC
  INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest: /s/Jon
  A. Dobson                            

  	
  By:  /s/Bradley
  D. Carlson                                

  
	
              Secretary

  	
  Its: 
  Treasurer                                                    

  

 

 

 

 ARTICLE 1.  Description and Purpose...................................................... 1

1.1.  Plan Name......................................................................................................... 1

1.2.  Plan Description............................................................................................... 1

1.3.  Plan Background.............................................................................................. 1

 ARTICLE 2.  Eligibility..................................................................................... 3

2.1.  Eligibility Requirements................................................................................... 3

2.2.  Entry Date......................................................................................................... 3

2.3.  Special Entry Dates.......................................................................................... 4

2.4.  Transfer Among Participating Employers or
Business Units.......................... 4

2.5.  Multiple Employment....................................................................................... 4

2.6.  Reentry.............................................................................................................. 4

2.7.  Condition of Participation............................................................................... 4

2.8.  Termination of Participation........................................................................... 4

 ARTICLE 3.  Contributions............................................................................ 5

3.1.  401(k) Contributions........................................................................................ 5

3.2.  After-Tax Contributions................................................................................... 6

3.3.  Matching Contributions................................................................................... 7

3.4.  Profit Sharing Contributions........................................................................... 9

3.5.  Rollovers......................................................................................................... 11

3.6.  Corrective Contributions............................................................................... 11

 ARTICLE 4.  Accounts
and Valuation.................................................... 13

4.1.  Establishment of Accounts.............................................................................. 13

4.2.  Valuation and Account Adjustment................................................................ 13

4.3.  Allocations Do Not Create Rights.................................................................. 13

 ARTICLE 5.  Participant
Investment Direction................................ 15

5.1.  Establishment of Investment Funds................................................................ 15

5.2.  Contribution Investment Directions............................................................... 15

5.3.  Transfer Among Investment Funds................................................................. 16

5.4.  BMC Common Stock Fund.............................................................................. 16

5.5.  Investment Direction Responsibility Resides
With Participants................... 17

5.6.  Beneficiaries and Alternate Payees............................................................... 17

 ARTICLE 6.  Withdrawals
During Employment and Loans......... 18

6.1.  Hardship Withdrawals from 401(k)
Contribution Account............................ 18

6.2.  Withdrawals from 401(k) Contribution Account
After Attaining Age 591/2 ... 19

6.3.  Withdrawals from After-Tax Contribution
Account....................................... 20

6.4.  Withdrawals from Rollover Account.............................................................. 20

6.5.  Rules for Withdrawals.................................................................................... 20

6.6.  No Other In-Service Withdrawals.................................................................. 20

6.7.  Plan Loans...................................................................................................... 21

 ARTICLE 7.  Vesting and
Forfeitures..................................................... 23

7.1.  Vesting............................................................................................................ 23

7.2.  Forfeiture Upon Distribution......................................................................... 25

7.3.  Other Forfeitures............................................................................................ 25

7.4.  Application of Forfeitures.............................................................................. 26

 ARTICLE 8.  Distributions
After Termination................................... 27

8.1.  Form and Time of Distribution...................................................................... 27

8.2.  Beneficiary Designation................................................................................. 29

8.3.  Assignment, Alienation of Benefits................................................................. 30

8.4.  Payment in Event of Incapacity...................................................................... 30

8.5.  Payment Satisfies Claims............................................................................... 31

8.6.  Disposition if Distributee Cannot be Located............................................... 31

8.7.  Direct Rollovers and Transfers...................................................................... 31

 ARTICLE 9.  Contribution
Limitations................................................... 32

9.1.  401(k) Contribution Dollar Limitation.......................................................... 32

9.2.  Actual Deferral Percentage Limitations........................................................ 32

9.3.  Actual Contribution Percentage Limitations................................................. 35

9.4.  Multiple Use Limitation................................................................................. 37

9.5.  Earnings or Losses on Excess Contributions................................................. 39

9.6.  Annual Additions Limitation........................................................................... 39

9.7.  Administrator's Discretion............................................................................. 41

 ARTICLE 10.  Service
Rules.......................................................................... 42

10.1.  Vesting Service............................................................................................. 42

10.2.  One-Year Break in Service........................................................................... 42

10.3.  Loss of Service.............................................................................................. 42

10.4.  Pre-Acquisition Service................................................................................ 43

10.5.  Hour of Service............................................................................................. 43

 ARTICLE 11.  Adoption,
Amendment and Termination................... 46

11.1.  Adoption by Affiliated Organizations........................................................... 46

11.2.  Authority to Amend and Procedure.............................................................. 46

11.3.  Authority to Terminate and Procedure........................................................ 46

11.4.  Vesting Upon Termination, Partial
Termination or Discontinuance of Contributions..................................................................................................... 47

11.5.  Distribution Following Termination, Partial
Termination or Discontinuance of Contributions....................................................................... 47

 ARTICLE 12.  PLAN
ADMINISTRATION........................................................... 48

12.1.  Administrator, Named Fiduciary.................................................................. 48

12.2.  Committee..................................................................................................... 48

12.3.  Administrative Duties................................................................................... 50

12.4.  Delegation.................................................................................................... 50

12.5.  Reports and Records..................................................................................... 50

12.6.  Compensation............................................................................................... 51

12.7.  Professional Assistance................................................................................ 51

12.8.  Payment of Administrative Costs................................................................. 51

12.9.  Indemnification............................................................................................. 51

12.10.  Claims Procedure....................................................................................... 51

12.11.  Disputes...................................................................................................... 52

12.12.  Correction of Errors................................................................................... 53

12.13.  Standards for Elections, Directions and
Similar Actions.......................... 53

 ARTICLE 13.  Miscellaneous....................................................................... 54

13.1.  Merger, Consolidation, Transfer of Assets.................................................. 54

13.2.  Limited Reversion of Fund........................................................................... 54

13.3.  Top-Heavy Provisions.................................................................................. 54

13.4.  Qualified Military Service........................................................................... 58

13.5.  Short Plan Years........................................................................................... 60

 ARTICLE 14.  Construction,
Interpretations AND DEFINITIONS.. 61

14.1.  Construction and Interpretations................................................................. 61

14.2.  Definitions.  ................................................................................................. 62

 

ADDENDUM SPECIAL EFFECTIVE
DATES  ...................................................... A-1

 

BMC
INDUSTRIES, INC.

SAVINGS AND PROFIT SHARING PLAN

 2001 Revision

  

BMC
INDUSTRIES, INC.

SAVINGS AND PROFIT SHARING PLAN

 2001 Revision

 ARTICLE 1.

Description
and Purpose

1.1.         
Plan Name.  The
name of the Plan is the "BMC Industries, Inc. Savings and Profit Sharing
Plan."

1.2.
         
Plan Description. 
The Plan is a profit sharing plan providing for 401(k) Contributions
pursuant to a qualified cash or deferred arrangement, After-Tax Contributions,
Matching Contributions, and Profit Sharing Contributions.  The Plan is intended to qualify under Code
section 401(a) and to satisfy the requirements of Code sections 401(k) and
401(m).  Although the Plan is a profit
sharing plan, a Participating Employer may make contributions to the Plan even
though it has no current or accumulated earnings or profits. 

1.3.
         
Plan Background. 

(a)            
The Company adopted the established Plan effective as of April
1, 1979, as an employee thrift and profit sharing plan with after-tax employee
contributions and employer matching contributions made from current or
accumulated profits.

(b)           
Effective generally as of July 1, 1984, the Plan was restated
in the manner set forth in the 1984 Restatement to provide, among other things,
for the investment of employer matching contributions in Company Stock.

(c)            
Effective generally as of July 1, 1985, the Plan was restated
in the manner set forth in the 1985 Revision for purposes of incorporating into
the Plan a cash or deferred arrangement pursuant to Code section 401(k).

(d)           
Effective generally as of January 1, 1987, the Plan was
restated in the manner set forth in the 1987 Revision to satisfy the
requirements of the Tax Reform Act of 1986. 

(e)            
Effective generally as of January 1, 1994, the Plan was
restated in the manner set forth in the 1994 Revision to comply with changes in
applicable law and make certain other miscellaneous changes. 

(f)
             
Effective as of the close of business on August 31, 1998,
the BMC Industries, Inc. Profit Sharing Plan was merged into the Plan.  To reflect the merger and changes in
applicable law, including the Small Business Job Protection Act of 1996, the
Uruguay Round Agreements Act of 1994 and the Uniformed Services Employment and
Reemployment Rights Act of 1994, and to make other miscellaneous changes to the
Plan, the Plan was restated effective generally as of September 1, 1998 and, in
connection therewith, the name of the Plan was changed to the BMC Industries,
Inc. Savings and Profit Sharing Plan. 

(g)
            
The Plan was amended and restated effective as of the
Restatement Date for law changes as required by the Taxpayer Relief Act of
1997, the Internal Revenue Restructuring and Reform Act of 1998 and the
Community Renewal Tax Relief Act of 2000, collectively (along with changes made
to the Plan in the 1998 revision) referred to as the "GUST"
amendments, and to make certain other miscellaneous changes. 

ARTICLE 2.

Eligibility

2.1.         
Eligibility Requirements. 
  

(a)            
An Employee who was a Participant in the Plan the day before
the Restatement Date shall continue as a Participant in the Plan.

  

(b)           
An Employee who is a Qualified Employee is eligible to
participate in the Plan 

  

(i)             
for the purposes of making 401(k) Contributions, After-Tax Contributions and a
rollover contribution pursuant to Section 3.5, on the day on which he or she
first completes an Hour of Active Service; and

  (ii)            for
  the purposes of having Matching Contributions and Profit Sharing Contributions
  made on his or her behalf, on the last day of the first "eligibility service
  period" during which he or she completes at least 1000 Hours of Service. 
  An Employee's "eligibility service period" is the 12-month period that starts
  on the day on which he or she first completes an Hour of Active Service and,
  if the Employee fails to complete at least 1000 Hours of Service during this
  period, Plan Years, beginning with the Plan Year that includes the first
  anniversary of the day on which he or she first completes an Hour of Active
  Service.  

  

2.2.
         
Entry Date.   

(a)            
An Employee will enter the Plan as an Active Participant for
the purposes of making 401(k) Contributions, After-Tax Contributions and a
rollover contribution pursuant to Section 3.5, on the day on which he or she
first completes an Hour of Active Service as a Qualified Employee.

  

(b)           
An Employee will enter the Plan as an Active Participant for
the purposes of having Matching Contributions made on his or her behalf on the
first day of the calendar quarter that falls on or first follows the day on
which he or she satisfies the applicable eligibility requirements specified in
Section 2.1(b)(ii), if he or she is a Qualified Employee on the day on which he
or she would otherwise enter the Plan. 

(c)            
An Employee will enter the Plan as an Active Participant for
the purposes of having Profit Sharing Contributions made on his or her behalf, as of the January 1 that falls on or
last precedes the day on which he or
she satisfies the applicable eligibility requirements specified in Section
2.1(b)(ii), if he or she is a Qualified Employee on the last day of the eligibility
service period. 

(d)
           
If an Employee described in Section 2.1(b)(ii) terminates
employment before the day on which he or she would otherwise be eligible to
enter the Plan for the purposes of having Matching Contributions and Profit
Sharing Contributions made on his or her behalf and again becomes an Employee
after that day, then: 

  

(i)             
if he or she terminated employment before satisfying the eligibility
requirements specified in Section 2.1(b)(ii), he or she will be treated as a new
Employee and his or her previous service will be disregarded in determining his
or her new eligibility service period pursuant to Section 2.1(b)(ii); or

  (ii)            if
  he or she terminated employment after satisfying the eligibility requirements
  specified in Section 2.1(b)(ii), he or she will enter the Plan as an Active
  Participant as of the first following day on which he or she completes an Hour
  of Active Service as a Qualified Employee. 

  

(e)            
If an Employee is not a Qualified Employee on the day on which
he or she would otherwise enter the Plan for a particular purpose, he or she
will enter the Plan as an Active Participant for that purpose on the first
following day on which he or she completes an Hour of Active Service as a
Qualified Employee.

2.3.
         
Special Entry Dates.  Notwithstanding
Sections 2.1 and 2.2, in conjunction with an acquisition, the Company's Board
may specify a special entry date for one or more purposes for individuals who
become Qualified Employees on account of the acquisition.

2.4.
         
Transfer Among Participating Employers or Business Units.
 A Participant who transfers from one
Participating Employer or Participating Business Unit to another Participating
Employer or Participating Business Unit as a Qualified Employee will
participate in the Plan for the Plan Year during which the transfer occurs on
the basis of his or her separate Eligible Earnings for the Plan Year from each
Participating Employer or Participating Business Unit, as the case may be.

2.5.
         
Multiple Employment. 
A Participant who is simultaneously employed as a Qualified Employee with
more than one Participating Employer will participate in the Plan as a
Qualified Employee of all of his or her Participating Employers on the basis of
his or her separate Eligible Earnings from each Participating Employer.

2.6.         
Reentry.  A Participant who ceases to be a Qualified
Employee will resume active participation in the Plan on the first day on which
he or she completes an Hour of Active Service as a Qualified Employee.

2.7.
         
Condition of Participation.  Each Qualified Employee, as a condition of participation, is
bound by all of the terms and conditions of the Plan and must furnish to the
 Administrator such pertinent information and execute such
instruments as the Administrator may require. 

2.8.
         
Termination of Participation.  A Participant will cease to be a Participant as of the later of
the date on which: 

(a)
            
he or she ceases to be a Qualified Employee; or

(b)
           
all benefits, if any, to which he or she is entitled under the
Plan have been forfeited or distributed. 

 ARTICLE 3.

Contributions

3.1.
         
401(k) Contributions.

(a)            
Subject to the limitations described in Article 9, for each
Plan Year an Active Participant may elect to make 401(k) Contributions for the
Plan Year in accordance with the succeeding provisions of this section.  401(k) Contributions will be paid by the
Participating Employer to the Trustee as soon as administratively practicable
after the date on which the Active Participant would have received the Eligible
Earnings but for his or her election pursuant to this section.

  

(b)           
A reference in this section to an election to make 401(k) Contributions
means that the Participant has elected to have his or her Eligible Earnings
reduced in consideration of the Participating Employer's obligation to make
401(k) Contributions in the same amount on the Participant's behalf.  Except as provided in Subsection (c), a
Participant's 401(k) Contributions will be made in accordance with the rules in
this subsection.  

  

  

(i)             
An Active Participant may elect to make 401(k) Contributions
in any one percent increment from one percent to a maximum percentage specified
in Plan Rules and the elected percentage will automatically apply to the Active
Participant's Eligible Earnings as adjusted from time to time.  Plan Rules may specify a maximum percentage
for Active Participants who are Highly Compensated Employees that is less than
the maximum percentage specified for Active Participants who are not Highly
Compensated Employees.  No 401(k)
Contributions will be made on behalf of a Participant with respect to a period
during which he or she is not an Active Participant.  

    (ii)        
An Active Participant's election to commence 401(k)
Contributions pursuant to clause (i) will become effective at the time and
manner specified in Plan Rules after the Administrator receives a complete and
accurate election.

(iii)
       An
Active Participant may elect to change the percentage rate of his or her 401(k)
Contributions.  The election will become
effective at the time and manner specified in Plan Rules after the
Administrator receives a complete and accurate election of such change.

(iv)
       
401(k) Contributions for an Active Participant who makes a
hardship withdrawal pursuant to Section 6.1 will be automatically
suspended for the 12-month period beginning on the date of the withdrawal
distribution.  Following the suspension
period the Active Participant may again elect to make 401(k) Contributions in
accordance with clause (iii). 

  

(c)
            
Only Eligible Earnings payable after an Active Participant's
complete and accurate election has been received and become effective will be
reduced pursuant to the election.  If
any election is not processed on a timely basis, or if, for any reason, an
Active Participant's Eligible Earnings are not reduced in accordance with the
Participant's election, no retroactive adjustments will be made to take into
account the effect of any such delay or failure.  Plan Rules, however, may permit an Active Participant to elect to
make 401(k) Contributions from his or her Eligible Earnings payable during any
remaining portion of the Plan Year during which the delay or failure occurred
at more than the otherwise applicable maximum percentage to adjust for the
effect of the delay or failure so long as the total reductions for the Plan
Year do not exceed the applicable maximum percentage or the limitations
described in Article 9.

3.2.
         
After-Tax Contributions. 

(a)
            
Subject to the limitations described in Article 9, an Active
Participant may make After-Tax Contributions in accordance with this
section.  After-Tax Contributions will
be paid to the Trustee as soon as administratively practicable after the date
on which the Active Participant would have received the Eligible Earnings but
for his or her election pursuant to this section. 

(b)
           
Except as provided in Subsection (c), After-Tax Contributions
will be made in accordance with the rules in this subsection. 

  

  

(i)             
An Active Participant may elect to contribute any one percent increment of his
or her Eligible Earnings from one percent to a maximum percentage specified in
Plan Rules and the elected percentage will automatically apply to the Active
Participant's Eligible Earnings as adjusted from time to time.  Plan Rules
may specify a maximum percentage applicable to After-Tax Contributions, an
aggregate maximum percentage applicable to After-Tax Contributions and 401(k)
Contributions or both.  In addition, Plan Rules may specify a lower maximum
percentage (which, for After-Tax Contributions, may be zero) for Active
Participants who are Highly Compensated Employees.  Neither deductions from
Eligible Earnings nor After-Tax Contributions will be made on behalf of a
Participant with respect to a period during which he or she is not an Active
Participant.

  (ii)            An
  Active Participant's election to have After-Tax Contributions commence will
  become effective at the time and manner specified in Plan Rules after the date
  on which the Administrator receives a complete and accurate election. 

(iii)          An Active
Participant may elect to change the percentage rate of his or her After-Tax
Contributions.  The election will become effective at the time and manner
specified in Plan Rules after the Administrator receives a complete and accurate
election of such change. 

(iv)          After-Tax
Contributions by an Active Participant who makes a hardship withdrawal under
Section 6.1 will be automatically suspended for the 12-month period beginning on
the date of the withdrawal distribution.  Following the suspension period,
the Active Participant may again elect to have After-Tax Contributions commence
in accordance with clause (ii). 

  

(c)
            
Elections pursuant to this section and After-Tax Contributions
must be made in accordance with and are subject to Plan Rules.  Only Eligible Earnings payable after an
Active Participant's complete and accurate election has been received and
become effective will be subject to deduction pursuant to the election.  If any election is not processed on a timely
basis, or if, for any reason, an Active Participant's After-Tax Contributions
are not made in accordance with the Participant's election, no retroactive
adjustments will be made to take into account the effect of any such delay or
failure.  Plan Rules, however, may
permit an Active Participant to make After-Tax Contributions during any
remaining portion of the Plan Year during which the delay or failure occurred
at more than the otherwise applicable maximum percentage to adjust for the
effect of the delay or failure so long as the After-Tax Contributions for the
Plan Year do not exceed the applicable maximum percentage or the limitations
described in Article 9.

3.3.
         
Matching Contributions. 

(a)            
Subject to Subsection (d) and the limitations described in
Article 9, the Participating Employer of an eligible Active Participant will
make a Matching Contribution on behalf of the Active Participant for a calendar
quarter in an amount, if any, equal to 25 percent of the lesser of (i) the
Participant's 401(k) Contributions for the calendar quarter and (ii) six
percent of the Participant's Eligible Earnings for the calendar quarter.  To be eligible to share in the Participating
Employer's Matching Contribution for a given calendar quarter, a Participant
must have, on or before the last day of the calendar quarter, entered the Plan
as a Participant for the purposes of having Matching Contributions made on his
or her behalf, received Eligible Earnings for the calendar quarter from the
Participating Employer and is a Participant who either:

  

(i)
             
is a Qualified Employee who is either on active status or paid
leave of absence on the last day of the calendar quarter or

    (ii)
           
terminated employment during the calendar quarter 

    

(1)           
at or after his or her Normal Retirement Date

    

(2)           
on account of his or her death 

(3)           
on account of his or her becoming Disabled or 

(4)           
following his or her attainment of age 60 if the sum of his or
her age and years of Vesting Service equals or exceeds 65; 

    

  

provided, that this condition
will be applied only with respect to a Participant, such sole application being
made for the calendar quarter during which this clause (ii) first applies and
the condition under clause (i) is not satisfied.

(b)           
Subject to Subsection (d) and the limitations described in
Article 9, the Participating Employer of an eligible Active Participant will
make a Matching Contribution on behalf of the Active Participant for a Plan
Year in an amount, if any, equal to a percentage, determined by the
Participating Employer's Board, of the lesser of (i) the Participant's 401(k)
Contributions for the Plan Year and (ii) six percent of the Participant's
Eligible Earnings for the Plan Year; provided that the percentage may be
different for eligible Active Participants employed in different Participating
Business Units of the Participating Employer based on annual profit performance
of each Participating Business Unit, as determined by the Participating
Employer's Board.  To be eligible to
share in the Participating Employer's Matching Contribution for a given Plan
Year, a Participant must have, on or before the last day of the Plan Year,
entered the Plan as a Participant for the purposes of having Matching
Contributions made on his or her behalf, received Eligible Earnings for the
Plan Year from the Participating Employer and is a Participant who:

  

(i)             
is a Qualified Employee who is either on active status or paid leave of absence
on the last day of the Plan Year or

    (ii)           
    terminated employment during the Plan Year 

    

(1)           
at or after his or her Normal Retirement Date

    

(2)           
on account of his or her death 

(3)           
on account of his or her becoming Disabled or 

(4)           
following his or her attainment of age 60 if the sum of his or
her age and years of Vesting Service equals or exceeds 65; 

    

  

provided, that this condition
will be applied only with respect to a Participant, such sole application being
made for the Plan Year during which this clause (ii) first applies and the
condition under clause (i) is not satisfied.

(c)
            
A Participating Employer's Matching Contributions for a Plan
Year will be paid to the Trustee on such date or dates during or following such
Plan Year as the Participating Employer may elect but in no case more than 12
months after the end of the Plan Year.  

(d)
           
No Matching Contribution will be made with respect to any
portion of a Participant's 401(k) Contributions returned to the Participant
pursuant to Article 9.  For this
purpose, 401(k) Contributions with respect to which no Matching Contributions
are made for a Plan Year will be deemed to be the first such contributions returned
to the Participant.  If the
Administrator determines that Matching Contributions that have been added to a
Participant's Account should not have been added by reason of this subsection,
the contributions, increased by Fund earnings or decreased by Fund losses
attributable to the contributions, as determined under Section 9.5, will be
subtracted from the Account as soon as administratively practicable after the
determination is made and will be applied to satisfy the contribution
obligations of the Participating Employer that made the excess contributions
for the Plan Year for which the excess contributions were made.  If, because of the passage of time, the
excess cannot be applied in this way, the excess will be allocated, in the
discretion of the Administrator: 

  

(i)             
among the Matching Contribution Accounts of all Participants who made 401(k)
Contributions for the Plan Year as Qualified Employees of the Participating
Employer in proportion to such 401(k) Contributions up to six percent of
Eligible Earnings; or

  (ii)            as a
  corrective contribution pursuant to Section 3.6. 

  

3.4.         
Profit Sharing Contributions.

(a)            
Each Participating Employer will make a Profit Sharing
Contribution for a Plan Year on behalf of Participants who have satisfied the
eligibility conditions specified in Subsection (b) for a Plan Year in an amount
equal to the sum of:

  

(i)             
three percent of the aggregate Eligible Earnings for the Plan Year of all
Participants eligible to share in the contribution for the Plan Year plus

  (ii)            an
  additional amount, if any, separately determined by the Participating
  Employer's Board for each of its Participating Business Units based on the
  annual profit performance of each Participating Business Unit. 

  

(b)           
To be eligible to share in the Participating Employer's Profit
Sharing Contribution, for a particular Plan Year, a Participant must have, on
or before the last day of the Plan Year, entered the Plan as a Participant for
the purposes of having Profit Sharing Contributions made on his or her behalf,
received Eligible Earnings for the Plan Year from the Participating Employer
and either:

  

(i)             
completed at least 1000 Hours of Service during the Plan Year and been employed
with an Affiliated Organization as a Qualified Employee who is either on active
status or paid leave of absence on the last day of the Plan Year or

    (ii)           
    terminated employment during the Plan Year 

    

(1)           
at or after his or her Normal Retirement Date

    

(2)           
on account of his or her death 

(3)           
on account of his or her becoming Disabled or 

(4)           
following his or her attainment of age 60 if the sum of his or
her age and years of Vesting Service equals or exceeds 65; 

    

  

provided, that this condition
will be applied only with respect to a Participant, such sole application being
made for the Plan Year during which this clause (ii) first applies and the
condition under clause (i) is not satisfied.

(c)            
Subject to the limitations described in Article 9, a
Participating Employer's Profit Sharing Contribution for a Plan Year will be
allocated among the Profit Sharing Contribution Accounts of Participants who
have satisfied the eligibility conditions under Subsection (b) for the Plan
Year as follows:

  

(i)             
The Participating Employer's contribution described in
Subsection (a)(i) will be allocated to each eligible Participant in the same
proportion that his or her Eligible Earnings for the Plan Year bears to the
aggregate Eligible Earnings for the Plan Year of all Participants eligible to
share in the Participating Employer's contribution.

    (ii)           
The Participating Employer's contribution described in
Subsection (a)(ii) with respect to a given Participating Business Unit will be
allocated to each eligible Participant who received Eligible Earnings for the
Plan Year with respect to services for the Participating Business Unit (other
than administrative services with respect to which he or she is included in the
Corporate Participating Business Unit unless the contribution relates to the
Corporate Participating Business Unit) as follows: 

    

(1)           
An amount equal to three percent of his or her Excess Eligible
Earnings for the Plan Year.  If,
however, the contribution is less than three percent of the aggregate Excess
Eligible Earnings of all Participants eligible to share in the contribution
with respect to the Participating Business Unit, the contribution will be
allocated to each such eligible Participant in the same proportion that his or
her Excess Eligible Earnings for the Plan Year bears to the aggregate Excess
Eligible Earnings for the Plan Year of all Participants eligible to share in
the contribution with respect to the Participating Business Unit.

    

(2)           
To the extent the contribution is not exhausted after it has
been allocated under clause (1), each eligible Participant's share of the
remainder will be an amount equal to two and seven-tenths percent of the sum of
his or her Eligible Earnings plus his or her Excess Eligible Earnings for the
Plan Year.  If, however, the
contribution is less than two and seven-tenths percent of the sum of the
aggregate Eligible Earnings plus the aggregate Excess Eligible Earnings of all
Participants eligible to share in the contribution with respect to the
Participating Business Unit, the contribution will be allocated to each such
eligible Participant in the same proportion that the sum of his or her Eligible
Earnings plus his or her Excess Eligible Earnings for the Plan Year bears to
the sum of the aggregate Eligible 
Earnings plus the aggregate Excess Eligible Earnings for the Plan Year
of all such eligible Participants. 

(3)           
To the extent the contribution is not exhausted after it has
been allocated pursuant to clauses (1) and (2), the balance, if any, will be
allocated to each Participant eligible to share in the contribution with
respect to the Participating Business Unit in the same proportion that his or
her Eligible Earnings for the Plan Year bears to the aggregate Eligible
Earnings for the Plan Year of all such eligible Participants. 

    

    

  

(d)           
A Participating Employer's Profit Sharing Contribution for a
Plan Year, if any, will be paid to the Trustee on such date or dates during or
following such Plan Year as the Participating Employer may elect but in no case
more than 12 months after the end of the Plan Year.

3.5.
         
Rollovers.

(a)
            
With the prior consent of the Administrator, an Active
Participant may contribute to the Trust, in a direct rollover pursuant to Code
section 401(a)(31) or within 60 days of receipt:

  

(i)             
an amount paid or distributed out of an individual retirement account to which
the only contributions have been one or more Eligible Rollover Distributions; or

  (ii)            an
  Eligible Rollover Distribution from such a qualified plan. 

  

(b)
           
Any contribution to the Trust pursuant to this section must be
made in cash and will be added to the Participant's Rollover Account.

3.6.
         
Corrective Contributions. 
 

(a)
            
For any Plan Year, a Participating Employer may, but is not
required to, contribute to the Matching Contribution Accounts or Profit Sharing
Contribution Accounts, or both, of Active Participants who are not Highly
Compensated Employees, or any group of such Participants identified by the
Administrator, such amounts as the Participating Employer deems advisable to
assist the Plan in satisfying the requirements of Section 9.2,  9.3 or 9.4, or any other requirement under
the Code or Treasury Regulations, for the Plan Year.   

(b)
           
Contributions pursuant to this section will be allocated in  accordance with one or more of the following clauses, as
determined by the Administrator.

  

(i)
             
Contributions are allocated among the Matching Contribution
Accounts of the Participants eligible to share in the allocation who made
401(k) Contributions for the Plan Year in proportion to such 401(k)
Contributions up to six percent of the Participant's Eligible Earnings for the
Plan Year. (ii)
           
Contributions are allocated among the Profit Sharing
Contribution Accounts of the Participants eligible to share in the allocation
in proportion to their respective Eligible Earnings from the Participating
Employer for the Plan Year.

(iii)         
Contributions are allocated among the Matching Contribution
Accounts of Participants eligible to share in the allocation who made 401(k)
Contributions for the Plan Year or allocated among the Profit Sharing
Contribution Accounts of the Participants eligible to share in the allocation
for the Plan Year, or both, by starting with the eligible Participant with the
lowest Eligible Earnings for the Plan Year and allocating to that Participant
up to the maximum amount permitted by Section 9.6 and continuing successively
with the eligible Participant(s) with the next lowest Eligible Earnings for the
Plan Year until the amount to be allocated pursuant to this clause (ii) has been
fully allocated. 

(iv)          Contributions are
allocated among the Matching Contribution Accounts of the Participants eligible
to share in the allocation who made 401(k) Contributions for the Plan Year or
allocated among the Profit Sharing Contribution Accounts of the Participants
eligible to share in the allocation for the Plan Year, or both, on a per capita
basis. 

Contributions pursuant to this section which are used to
satisfy the requirements of Section 9.2 will be added to a separate subaccount
with respect to which gains, losses, withdrawals and other credits or charges
are separately allocated on a reasonable and consistent basis pursuant to
Section 4.2. 

  

 

 ARTICLE 4.

Accounts and Valuation

4.1.         
Establishment of Accounts. 
 

(a)
            
For each Participant, the following Accounts will be
established and maintained:  

  

(i)             
A 401(k) Contribution Account, to which there will be added any 401(k)
Contributions made on the Participant's behalf;

  (ii)            An
  After-Tax Contribution Account, which will include the balance of his or her
  supplemental contribution account and employee basic contribution account
  under prior provisions of the Plan and to which there will be added any
  After-Tax Contributions made by the Participant; (iii)         
  A Matching Contribution Account, which will include the balance of his or her
  employer contribution account under prior provisions of the Plan and to which
  there will be added any Matching Contributions made on the Participant's
  behalf; 

(iv)          A Profit Sharing
Contribution Account, which will include the balance of his or her profit
sharing account under the BMC Industries, Inc. Profit Sharing Plan and to which
there will be added any Profit Sharing Contributions made on the Participant's
behalf; 

(v)            A
Rollover Account, to which there will be added any rollover contribution made by
the Participant pursuant to Section 3.5; and 

(vi)          A Profit Sharing
Plan Rollover Account, which will consist solely of the balance of his or her
rollover account under the BMC Industries, Inc. Profit Sharing Plan. 

  

(b)           
One or more additional accounts or subaccounts may be
established and maintained for any Participant or group of similarly situated
Participants in connection with the merger of another plan into the Plan, in
which case provisions of the Plan applicable solely to such accounts will be
set forth on an exhibit to the Plan in accordance with Section 14.1(f).

4.2.
         
Valuation and Account Adjustment.  At such intervals as specified in Plan
Rules, but at least annually, each Participant's Accounts within each
investment fund established pursuant to Section 5.1 will be adjusted, in a
manner determined by the Administrator to be uniform and equitable with respect
to the Accounts being adjusted at the time in question, for income, expense,
gains and losses of the investment fund, as well as contributions, withdrawals,
loans, loan repayments, loan offsets, distributions and other activity, since
the last prior adjustment. 

4.3.
         
Allocations Do Not Create Rights.  The fact that allocations are made and
credited to the Accounts of a Participant does not vest in the Participant any
right, title or interest in or to  
any
portion of the Fund except at the time or times and upon the terms and
conditions expressly set forth in the Plan. 
Notwithstanding any allocation or addition to the Account of any
Participant, the issuance of any statement to the Participant or a Beneficiary
of a deceased Participant or the distribution of all or a portion of any
Account balance, the Administrator may direct the Account to be adjusted to the
extent necessary to correct any error in the Account, whether caused by
misapplication of any provision of the Plan or otherwise, and may recover from
the Participant or Beneficiary the amount of any excess distribution.

 ARTICLE 5.

Participant Investment Direction

5.1.         
Establishment of Investment Funds.

(a)
            
In order to allow each Participant to determine the manner in
which his or her Accounts will be invested, the Trustee will maintain, within
the Trust, three or more separate investment funds of such nature and
possessing such characteristics as the Committee may specify from time to
time.  Each Participant's Accounts will
be invested in the investment funds in the proportions directed by the
Participant in accordance with the procedures set forth in Sections 5.2 and
5.3.  The Committee may, from time to
time, direct the Trustee to establish additional investment funds or to
terminate any existing investment fund.

 

(b)           
In addition to the investment funds maintained pursuant to
Subsection (a), the Trustee will maintain, within the Trust, the BMC Common
Stock Fund, which will be invested in shares of Company Stock except for such
amounts of cash as the Committee determines to be necessary to satisfy
short-term liquidity requirements and cash held pending acquisition of shares
of Company Stock.

 

(c)
            
Notwithstanding any other provision of the Plan to the
contrary, the Committee may direct the Trustee to suspend Participant
investment activity (including such activity in connection with the
withdrawals, loans and distributions) in any or all investment funds, or impose
special rules or restrictions of uniform application, for a period determined
by the Committee to be necessary in connection with:

  

(i)             
the establishment or termination of any investment fund;

  (ii)           
the receipt by the Trustee from, or transfer by the Trustee
to, another trust of account balances in connection with an acquisition or
divestiture or otherwise;

(iii)         
a change of Trustee, investment manager or recordkeeper; or 

(iv)          such other
circumstances determined by the Committee as making such suspension or special
rules or restrictions necessary or appropriate. 

  

5.2.         
Contribution Investment Directions.

(a)
            
In conjunction with his or her enrollment in the Plan, a
Participant must direct the manner in which contributions to his or her
Accounts will be invested among the investment funds maintained pursuant to
Section 5.1.  Such a direction must be
made in accordance with and is subject to Plan Rules.  To the extent a Participant fails to direct Account investments,
the Accounts will be invested in the manner specified in Plan Rules.

 

(b)
           
A Participant may direct a change in the manner in which
future contributions credited to his or her Accounts will be invested among the
investment funds maintained pursuant to Section 5.1.  Such a direction must be made in accordance with and is subject
to Plan Rules and will become effective at the time and manner specified in
Plan Rules and in accordance with rules and procedures of the investment fund
after the Trustee receives a complete and accurate direction.

(c)
            
Plan Rules will include procedures pursuant to which
Participants are provided with the opportunity to obtain written confirmation
of investment directions made pursuant to this section.

5.3.         
Transfer Among Investment Funds.

(a)
            
A Participant may direct the transfer of his or her Accounts
among the investment funds maintained pursuant to Section 5.1.  Such a direction must be made in accordance
with and is subject to Plan Rules and will become effective at the time and
manner specified in Plan Rules and in accordance with rules and procedures of
the investment fund after the Trustee receives a complete and accurate
direction.

 

(b)
           
Plan Rules will include procedures pursuant to which
Participants are provided with the opportunity to obtain written confirmation
of investment directions made pursuant to this section.

(c)
            
Plan Rules may limit and restrict transfers into and out of
specific investment funds.

5.4.         
BMC Common Stock Fund.

(a)            
Subject to Subsection (b), all amounts credited to a
Participant's Matching Contribution Account will be invested only in the BMC
Common Stock Fund and no amounts credited to any of a Participant's other
Accounts may be invested in the BMC Common Stock Fund.

(b)
           
Notwithstanding Subsection (a) -

  

(i)             
Not more than once each calendar quarter, a Participant who
has attained age 55 may elect to transfer all or any portion of his or her
Matching Contribution Account from the BMC Common Stock Fund to one or more of
the investment funds maintained pursuant to Section 5.1 other than the BMC
Common Stock Fund.  The election must be
made in accordance with and is subject to Plan Rules and will be effective as
soon as administratively practicable after it is received by the Administrator
or the Administrator's designate.  All
Matching Contributions credited to the Participant's Matching Contribution
Account after the effective date of the direction will continue to be invested
pursuant to Subsection (a).

  (ii)           
Not more than once each calendar quarter, a Participant who is
an Employee and is not eligible to make directions pursuant to Subsection
(b)(i) may elect to transfer up to 25 percent of his or her Matching
Contribution Account from the BMC Common Stock Fund to one or more of the
investment funds maintained pursuant to Section 5.1 other than the BMC Common
Stock Fund.  A Participant may only make
an election pursuant to this Subsection (b)(ii) if the portion of the  Participant's Matching Contribution Account
invested in the BMC Common Stock Fund equals or exceeds 20 percent of the
aggregate balance of the Participant's 401(k) Contribution Account, Matching
Contribution Account, After-Tax Contribution Account and Rollover Account.  The election must be made in accordance with
and is subject to Plan Rules and will be effective as soon as administratively
practicable after it is received by the Administrator or the Administrator's
designate.  All Matching Contributions
credited to the Participant's Matching Contribution Account after the effective
date of such direction will continue to be invested pursuant to Subsection (a).

  

5.5.
         
Investment Direction Responsibility Resides With Participants.  The Plan is intended to constitute a plan
described in ERISA section 404(c). 
Accordingly, neither the Administrator, the Committee, the Trustee nor
the Participating Employers have any authority, discretion, responsibility or
liability with respect to a Participant's selection of the investment funds in
which his or her Accounts will be invested, the entire authority, discretion and 

responsibility for, and any results attributable to, the
selection being that of the Participant. 

5.6.
         
Beneficiaries and Alternate Payees.  Solely for purposes of this article, the
term "Participant" includes the Beneficiary of a deceased Participant
and an alternate payee under a qualified domestic relations order within the
meaning of Code section 414(p) unless otherwise provided in such order, but
only after:

(a)
            
the Administrator has determined the identity of the
Beneficiary and the amount of the Account balance to which he or she is
entitled in the case of a Beneficiary of a deceased Participant; or 

(b)
           
the Administrator has, in accordance with Plan Rules, made a
final determination that the order is a qualified domestic relations order and
all rights to contest such determination in a court of competent jurisdiction
within the time prescribed by Plan Rules have expired or been exhausted in the
case of an alternate payee.

 

 ARTICLE 6.

Withdrawals During Employment and Loans

6.1.         
Hardship Withdrawals from 401(k) Contribution Account.

(a)
            
Subject to the provisions of Section 6.5, a Participant who is
an Employee may make a hardship withdrawal from his or her 401(k) Contribution
Account in accordance with this section. 
A hardship withdrawal will be permitted only if the Administrator
determines that the withdrawal is made on account of an immediate and heavy
financial need of the Participant and is necessary to satisfy such financial
need.  
 

(b)
           
A withdrawal will be deemed to be made on account of an
immediate and heavy financial need only if it is determined by the
Administrator to be on account of:

  

(i)             
expenses for medical care, described in Code section 213(d), incurred or to be
incurred by the Participant, the Participant's spouse or the Participant's
dependent (as defined in Code section 152 that are not otherwise reimbursable);

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

(iii)          payment of
tuition, related educational fees and room and board expenses for the next 12
months of post-secondary education for the Participant or his or her spouse,
child or other dependent (as defined in Code section 152); 

(iv)          payments necessary
to prevent the eviction of the Participant from his or her principal residence
or foreclosure on the mortgage on the Participant's principal residence; 

(v)           
expenses incurred or to be incurred by the Participant that are directly related
to the partial or total destruction of a principal residence of the Participant
through an act of God that are not otherwise reimbursable; 

(vi)          expenses incurred
or to be incurred by the Participant that are directly related to and the
principal purpose of which is the legal adoption of a child by the Participant
that are not otherwise reimbursable; or 

(vii)        loss of income due to layoff
of the Participant or his or her spouse. 

  

(c)
            
A withdrawal will be deemed to be necessary to satisfy the
immediate and heavy financial need of the Participant only if the Administrator
determines that each of the requirements in this subsection is satisfied.

  

(i)             
The withdrawal is not more than the sum of the amount of the immediate and heavy
financial need of the Participant plus an amount to pay any federal, state or
local taxes or penalties that the Participant will incur in connection with the
withdrawal or to satisfy withholding obligations in connection with that
withdrawal, in either case as determined by the Administrator in accordance with
Plan Rules.

(ii)            The
Participant has received all withdrawals and has taken all nontaxable loans
available under the Plan and all other qualified plans maintained by any
Affiliated Organization. 

(iii)         
All 401(k) Contributions and After-Tax Contributions and all
elective deferrals and after-tax employee contributions by or on behalf of the
Participant under any other qualified or nonqualified plan of deferred
compensation maintained by any Affiliated Organization are suspended for a
period of 12 months following the date of the withdrawal.

(iv)         
For the Participant's taxable year following the taxable year
during which he or she received the withdrawal, the amount of elective
deferrals under all qualified plans maintained by any Affiliated Organization
(including 401(k) Contributions pursuant to the Plan) that may be made on the
Participant's behalf under Code section 402(g) is reduced by the amount of such
elective deferrals made on the Participant's behalf for the taxable year during
which he or she received the withdrawal.

  

(d)
           
The Administrator's determination of the existence of a
Participant's financial hardship and the amount that may be withdrawn to
satisfy the need created by such hardship will be made in accordance with
Treasury Regulations, and is final and binding on the Participant. The
Administrator may require the Participant to make representations and
certifications concerning his or her entitlement to a withdrawal pursuant to
this section and is entitled to rely on such representations and certifications
unless the Administrator has actual knowledge to the contrary.  The Administrator is not obligated to
supervise or otherwise verify that amounts withdrawn are applied in the manner
specified in the Participant's withdrawal application. 

(e)
            
The amount of any withdrawal pursuant to this section may not
exceed the amount of 401(k) Contributions made by the Participant. 
 

6.2.
         
Withdrawals from 401(k) Contribution Account After Attaining Age 591/2
.  Subject to the provisions
of Section 6.5, a Participant who (a) is an Employee, (b) has attained age 591/2
and (c) has received all withdrawals available pursuant to Sections 6.3 and
6.4, may withdraw all or any part of the balance of his or her 401(k)
Contribution Account. 

6.3.
         
Withdrawals from After-Tax Contribution Account.

(a)
            
Subject to Section 6.5, a Participant who is an Employee may
withdraw all or any part of the balance of his or her After-Tax Contribution
Account. 
 

(b)
           
All After-Tax Contributions and all Fund earnings or losses
with respect thereto will be treated as a separate contract under the Plan and
such contributions and earnings or losses will be separately accounted for in
accordance with the Code.  Insofar as
the Plan permitted Participants to make in-service withdrawals from their
After-Tax Accounts on May 5, 1986, all withdrawals pursuant to this
Section will be deemed to be made first from the Participant's investment in
the contract as of December 31, 1986 (reduced by withdrawal distributions
made from the After-Tax Contribution Account after December 31, 1986 and prior
to the distribution in question that were not included in the Participant's
gross income).   

6.4.
         
Withdrawals from Rollover Account.  Subject to the provisions of Section 6.5, a
Participant who (a) is an Employee and (b) has received all withdrawals
available pursuant to Section 6.3, may withdraw all or any part of the balance
of his or her Rollover Account.

 

6.5.
         
Rules for Withdrawals.

(a)
            
Applications for withdrawals must be made in accordance with
and are subject to Plan Rules.

 

(b)
           
A withdrawal will be made as soon as administratively
practicable after the Administrator's determination that the Participant is
entitled to receive the withdrawal distribution.

 

(c)
            
A withdrawal will be made on a pro rata basis from the
investment fund or funds in which the Account from which the distribution is
made is invested.

 

(d)
           
All withdrawals will be made in the form of a single sum
payment made by a check drawn on the Trust.

 

(e)            
A Participant may not withdraw the portion of his or her
Accounts consisting of a note evidencing the unpaid balance of any loan made
pursuant to the Plan.

 

(f)
             
The provisions of Section 8.7(a) apply to any withdrawal that
constitutes an Eligible Rollover Distribution.

6.6.
         
No Other In-Service Withdrawals.  Except as otherwise expressly provided in
the Plan, a Participant may not make withdrawals from his or her Matching
Contribution Account, Profit Sharing Contribution Account or Profit Sharing
Plan Rollover Account prior to his or her Termination of Employment. 
 

 

 

6.7.
         
Plan Loans.

(a)
            
Each Participant or Beneficiary of a deceased Participant who
(i) is an Employee or is otherwise a "party in interest" within the
meaning of ERISA, and (ii) has received all withdrawals available pursuant to
Section 6.3, may borrow funds from the vested balance of his or her 401(k)
Contribution, Matching Contribution Account and Rollover Account, by submitting
to the Administrator a complete and accurate loan application, in accordance
with and subject to Plan Rules, subject to the succeeding provisions of this
section.

  

(i)             
The amount of the loan may not cause the aggregate amount of
outstanding loans to the borrower from the Plan to exceed the least of:

    

(1)           
$50,000, reduced by the excess (if any) of (A) the highest
outstanding balance of all loans to the borrower from the Plan and all other
qualified plans maintained by any Affiliated Organization during the 12-month
period ending on the day before the date of the loan over (B) the outstanding
balance of such loans on the date of the loan; and

    

(2)           
50 percent of the aggregate vested balance of the borrower's
401(k) Contribution Account, Matching Contribution Account and Rollover Account
as of the date on which the loan is made. 

    

(ii)           
The maturity date for any loan may not exceed five years from
the date of the note, unless the Administrator determines at the time the loan
is made that the proceeds of the loan will be used to purchase a house,
townhome, apartment, condominium or mobile home used, or intended to be used within
a reasonable time after the loan is made, as the borrower's principal
residence, in which case the maturity date may not exceed ten years from the
date of the note. 

  (iii)         
No loan will be made from the portion of a borrower's Matching
Contribution Account invested in the BMC Common Stock Fund.  If a Participant's Matching Contribution
Account is not fully vested, the portion of the Account that is not invested in
the BMC Common Stock Fund will be allocated ratably among the vested and nonvested
  portions of the Account. 

(iv)          Loans will be
charged against the vested portion of a borrower's Accounts in the following
order:  Rollover Account; 401(k) Contribution Account; and Matching
Contribution Account.  No loan will be charged against any Account until
the funds available to be borrowed in any prior Account have been exhausted. 
A loan application fee, if any, charged by the Trustee or another third party
will be charged against the Participant's Accounts in the same order. 

(v)            The
loan proceeds and any loan application fee will be obtained from the investment
fund or funds in which the borrower's Accounts are then invested on a pro rata
basis, except that no proceeds will be obtained from the portion of a borrower's
Matching Contribution Account invested in the BMC Common Stock Fund. 

(vi)          The promissory
note evidencing a loan must provide for payments of principal and interest in
equal installments of such frequency, not less frequently than quarterly, in
such minimum amounts and for such maximum period as Plan Rules prescribe. 

  

(b)
           
Each loan will be a loan by the Trust, but for Trust
accounting purposes the loan will be deemed made from the borrower's Accounts
against which the loan is charged, and the note executed by the borrower will
be deemed to be an asset of those Accounts.  When a loan is made, the borrower's Accounts and any investment
fund from which the loan proceeds are obtained will be reduced by an amount
equal to the principal balance of the loan and a loan account will be
established for the borrower with an initial balance equal to the principal
amount of the loan.  The loan account
will be excluded for purposes of determining and allocating the net earnings
(or losses) of the Trust pursuant to Section 4.2.  A borrower's loan payments will be credited to the Accounts from
which the loan proceeds were obtained on a pro rata basis.  The loan account will be reduced by the
amount of any principal payment on the loan. 
Repayments of loan principal and payments of interest will be invested
as soon as administratively practicable following receipt by the Trustee in
accordance with the borrower's most recent investment directions with respect
to new contributions or in the absence of such a direction, in accordance with
Plan Rules. 

(c)
            
Plan Rules may specify other terms and conditions as may be
necessary or desirable for the administration of loans under this section.

 

ARTICLE 7.

Vesting and Forfeitures

7.1.         
Vesting.   

(a)
            
A Participant always has a fully vested nonforfeitable
interest in his or her 401(k) Contribution Account, After-Tax Contribution
Account, Rollover Account, and Profit Sharing Plan Rollover Account, in the
portion of his or her Matching Contribution Account attributable to his or her
employer contribution account under prior provisions of the Plan and in the
portion of his or her Matching Contribution Account or Profit Sharing
Contribution Account credited to a subaccount described in Section 3.6.

 

(b)
           
A Participant will acquire a fully vested nonforfeitable
interest in the portion of his or her Matching Contribution Account and Profit
Sharing Contribution Account not described in Subsection (a) upon attaining his
or her Normal Retirement Date while he or she is, or before he or she became,
an Employee.

 

(c)
            
A Participant will acquire a fully vested nonforfeitable
interest in the portion of his or her Matching Contribution Account and Profit
Sharing Contribution Account not described in Subsection (a) if he or she dies
or becomes Disabled while he or she is an Employee.

 

(d)           
A Participant will acquire a fully vested nonforfeitable
interest in the portion of his or her Profit Sharing Account not described in
Subsection (a) upon the Participant's Termination of Employment following the
Participant's attainment of age 60 if the sum of his or her age and full years
of Vesting Service is at least 65.

 

(e)            
A Participant will acquire a fully vested nonforfeitable
interest in the portions of his or her Matching Contribution Account and Profit
Sharing Contribution Account not described in Subsection (a) if the Affiliated
Organization, Participating Business Unit, business unit, location or division
at which the Participant is employed, permanently ceases operations or is sold
or otherwise transferred through sale of stock or of business and assets, in
such manner that it no longer is, or is no longer owned by, an Affiliated
Organization.

 

(f)             
A Participant will acquire a fully vested nonforfeitable
interest in the portions of his or her Matching Contribution Account and Profit
Sharing Contribution Account not described in Subsection (a) upon a Change in
Control with respect to the Company, which for purposes of this subsection
means any of the following:

  

(i)             
The sale, lease, exchange, or other transfer of all or substantially all of the
assets of the Company, in one transaction or in a series of related
transactions, to any Person; 

 

(ii)           
The approval by the stock holders of the Company of any plan or proposal for the
liquidation or dissolution of the Company; 

 

(iii)         
Any Person is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Securities and Exchange Act of 1934, as amended (the "Exchange Act")),
directly or indirectly, of 50 percent or more of the combined voting power of
the Company's outstanding securities ordinarily having the right to vote at
elections of directors; 

 

(iv)         
Individuals who constitute the Company's Board of Directors on January 1, 1998
(the "Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to January 1,
1998 whose election, or nomination for election, by the Company's stockholders,
was approved by a vote of at least a majority of the directors comprising the
Incumbent Board (either by a specific vote or by approval of the proxy statement
of the Company in which such person is named as a nominee for director, without
objection to such nomination) will, for purposes of this clause (iv), be deemed
to be a member of the Incumbent Board; or

 

(v)           
A change in control of a nature that is determined by independent legal counsel
to the Company to be required to be reported (assuming such event has not been
"previously reported") in response to Item 1(a) of the Current Report on Form
8-K, as in effect on January 1, 1994, pursuant to section 13 or 15(d) of the
Exchange Act, whether or not the Company is then subject to such reporting
requirement. 

  

For purpose of applying the
foregoing, the term "Person" means and includes any individual,
corporation, partnership, group, association or other "person," as
such term is used in section 14(d) of the Exchange Act, other than the Company,
a wholly-owned subsidiary of the Company or any employee benefit plan(s)
sponsored by the Company or a wholly-owned subsidiary of the Company.

(g)
            
A Participant whose Matching Contribution Account is not
otherwise fully vested will acquire a vested nonforfeitable interest in the
portion of his or her Matching Contribution Account not described in Subsection
(a) to the extent provided in the following schedule:

	
  

  Full Years of Vesting Service

  Less Than One Year

  One Year         

  Two Years      

  Three Years    

  Four or More Years

  	
  Vested

  Interest

  
  0 
  %
 25%
 50%
 75%

  100%

  

(h)            
A Participant whose Profit Sharing Contribution Account is not
otherwise fully vested will acquire a vested nonforfeitable interest in the
portion of his or her Profit Sharing Contribution Account not described in
Subsection (a) to the extent provided in the following schedule:

	
  

  Full Years of Vesting Service

  Less than Five Years

  Five or More Years

  	
  Vested

  Interest

  
  0 
  %

  100%

  

 

7.2.
         
Forfeiture Upon Distribution.

(a)
            
If a Participant receives a distribution of the entire vested
balance of his or her Accounts after Termination of Employment and before he or
she incurs five consecutive One-Year Breaks in Service, the nonvested portions
of the Participant's Matching Contribution Account and Profit Sharing
Contribution Account will, at the time of such distribution, be forfeited.  A Participant who has no vested interest in
his or her Matching Contribution Account and Profit Sharing Contribution
Account when he or she terminates employment will be deemed to have received a
distribution of the entire vested balance of the Accounts at the time of his or
her Termination of Employment.

 

(b)
           
If a Participant described in Subsection (a) received a
distribution of less than the entire balance of his or her Accounts, resumes
employment as a Qualified Employee and repays to the Trustee the full amount
distributed, other than the portion of the distribution attributable to his or
her After-Tax Contribution Account, Rollover Account and Profit Sharing Plan
Rollover Account balances, before the earlier of (1) five years following the
date of reemployment as a Qualified Employee or (2) the date on which he or she
incurs five consecutive One-Year Breaks in Service following the distribution,
then, the amount of any forfeitures will be restored to the Participant's
Matching Contribution Account and Profit Sharing Contribution Account,
unadjusted for interest or any change in value occurring after the
distribution.  Such restoration will be
made from forfeitures that arise for the Plan Year for which such restoration
is to be made.  To the extent such
forfeitures are insufficient for such purpose, the Participating Employer with
whom the Participant was last employed as a Qualified Employee will contribute
the amount required to restore the Accounts. 
A Participant described in the last sentence of Subsection (a) who is
reemployed before incurring five consecutive One-Year Breaks in Service
following the date of his or her Termination of Employment will be deemed to
have repaid his or her deemed distribution upon his or her reemployment as a
Qualified Employee.

7.3.
         
Other Forfeitures.

(a)
            
Except as provided in Section 7.2, the nonvested portions of a
Participant's Matching Contribution Account and Profit Sharing Contribution
Account will continue to be held in separate subaccounts of such Accounts until
the Participant incurs five consecutive One-Year Breaks in Service, at which
time the subaccount balances will be forfeited.  If the Participant resumes employment with an Affiliated Organization
prior to incurring five consecutive One-Year Breaks in Service, such
subaccounts will be disregarded and their balances will be included in the
Matching Contribution Account and Profit Sharing Contribution Account.

 

(b)
           
A Participant's vested interest in his or her Matching
Contribution Account and Profit Sharing Contribution Account balances following
a resumption of employment in accordance with Subsection (a) at any given time
will not be less than the amount "X" determined by the formula: X =
P(AB + (R x D)) - (R x D), where P is the Participant's vested percentage at
the time of determination; AB is the Account balance at the time of
determination; D is the amount of the distribution; and R is the ratio of the
Account balance at the time of determination, to the subaccount balance immediately
following the distribution.

7.4.
         
Application of Forfeitures.  All forfeitures occurring in a Plan Year will be allocated to an
account, invested in accordance with Plan Rules
and applied as follows:

(a)
            
Such forfeitures will first be applied to restore the Accounts
of Participants as provided in Sections 7.2(b) and 8.6; and

 

(b)
           
Any remaining forfeitures will be applied toward the amount of
future contributions by the Participating Employers for the Plan Year in which
the forfeiture occurs.

 ARTICLE 8.

Distributions After Termination

8.1.         
Form and Time of Distribution.

(a)
            
Following a Participant's Termination of Employment, the
Trustee will distribute to the Participant or, if the Participant has died, to
his or her Beneficiary, the value of the Participant's vested interest in his or
her Accounts.  Subject to the remaining
subsections of this section and Section 8.7, distributions will be made in
accordance with the following provisions.

  

(i)             
If the aggregate balance of the Participant's vested interest
in his or her Accounts is not more than $5,000, distribution to the
Participant, or to the Participant's Beneficiary in the case of the Participant's
death, will be made, in the form of a lump sum payment, as soon as
administratively practicable following the Participant's Termination of Employment. 

  (ii)           
Except as provided in clause (i), distribution to the
Participant will be made in the form of a lump sum payment.  The distribution will be made as soon as
administratively practicable after the Administrator receives the Participant's
properly completed distribution request, but in no case later than the sixtieth
day after the Plan Year during which the Participant terminates employment or
attains age 65, whichever is later, unless the Participant elects to defer the
distribution pursuant to Subsection (b). 

(iii)         
Notwithstanding any other provision of the Plan to the
contrary, any Participant who is entitled to receive a distribution of his or
her Accounts with an annuity starting date that is before March 1, 2002 may
elect to receive the distribution in any optional form of benefit available
under the Plan as of the date immediately preceding December 1, 2001.  For purposes of this clause, the term "annuity
starting date" means:  (1) for an
annuity, the first day of the first period for which an amount is payable as an
annuity; or (2) for a distribution option other than an annuity, the first day
on which all events have occurred which entitle the participant to the benefit.

(iv)         
Except as provided in clause (i), distribution to the Participant's Beneficiary
following the Participant's death will be made at the time elected by the
Beneficiary in accordance with Subsection (c).  

(v)            All
distributions will be made in the form of a check drawn on the Trust and, if
applicable, a canceled note evidencing any Plan loan; provided, that if the
vested portion of the Matching Contribution Account balance of a Participant or
Beneficiary of a deceased Participant is credited with the equivalent of at
least 10 full shares of Company Stock, at the election of the Participant or
Beneficiary, distribution of the vested portion of the Matching Contribution
Account balance invested in the BMC Common Stock Fund may be distributed in full
shares of Company Stock and cash in lieu of any fractional share. 

(vi)          If a contribution
is allocated to a Participant's Account following the Participant's Termination
of Employment and after his or her vested Account balance has been distributed,
as soon as administratively practicable after the allocation is made, the vested
balance of the Account will be distributed to the Participant, or to the
Participant's Beneficiary in the case of the Participant's death, in the form of
a lump sum payment. 

  

(b)
           
Subject to the provisions of the other subsections of this
Section 8.1, a Participant described in Subsection (a)(ii) may elect to defer
commencement of his or her distribution under the Plan by providing the
Administrator with a written, signed statement specifying the date on which the
payment is to be made; provided that the specified date may not be later than
April 1 of the calendar year following the calendar year during which the
Participant attains age 701/2.  The
statement must be provided to the Administrator not later than the thirtieth
day (or such later date as Plan Rules may allow) after the Plan Year during
which the Participant terminates employment or attains age 65, whichever is
later.  Plan Rules may permit a
Participant to modify the election in any manner determined by the
Administrator to be consistent with Code section 401(a)(14) and the other
provisions of this section.

 

(c)            
Subject to Subsection (a)(i), if a Participant dies before
receiving the full amount to which he or she is entitled, the amount remaining
will be distributed to the Participant's Beneficiary in a lump sum payment no
later than December 31 of the calendar year which contains the fifth
anniversary of the date of the Participant's death, at such time or times as
the Beneficiary elects on a form provided by the Administrator.  

If the Participant's spouse is
the Beneficiary and dies after the Participant's death but before distributions
to the spouse have commenced, the foregoing rules will be applied as if the
surviving spouse were the Participant, including the substitution of the
surviving spouse's date of death for the Participant's date of death. 

(d)           
Notwithstanding Subsection (a), distribution to any
Participant who attains age 70-1/2 before January 1, 1999, and distribution to
any Participant who is a "5-percent owner," within the meaning of the
Code section 416, must begin not later than April 1 of the calendar year after
the Participant attains age 70-1/2, whether or not the Participant has
terminated employment, as if he or she had terminated employment on the last
day of the Plan Year during which he or she attained age 70-1/2.  A Participant who attained age 70-1/2 before
January 1, 1999, is not a 5-percent owner and is an Employee on September 1,
1998 may elect to stop distributions or to defer commencement of distributions,
as the case may be.  The election must
be made in accordance with and is subject to Plan Rules, must be received by
the Administrator not later than a date specified in Plan Rules, and will
become effective as soon as administratively practicable after it is received
by the Administrator.  The election is
irrevocable after it is received by the Administrator.  If distributions to a Participant are
stopped pursuant to this subsection, the Participant will have a new annuity
starting date and his or her benefit will recommence in accordance with the
other subsections of this Section 8.1 following his or her subsequent
termination of employment.

 

(e)
            
Notwithstanding any other provision of the Plan to the
contrary, distributions will be made in accordance with regulations issued
under Code section 401(a)(9), including Treasury Regulation
section 1.401(a)(9)-2, and any provisions of the Plan reflecting Code
section 401(a)(9) take precedence over any distribution options in the Plan
that are inconsistent with Code section 401(a)(9).

 

(f)             
With respect to distributions under the Plan made in calendar
years beginning on and after January 1, 2002, the Plan will apply the minimum
distribution requirements of Code section 401(a)(9) in accordance with the
regulations under Code section 401(a)(9) that were proposed in January 2001, notwithstanding
any provision of the Plan to the contrary.  

8.2.
         
Beneficiary Designation.

(a)
            
Each Participant may designate, on a form provided by the
Administrator, one or more primary Beneficiaries or alternative Beneficiaries
for all or a specified fractional part of his or her aggregate Accounts and may
change or revoke any such designation from time to time.  No such designation, change or revocation is
effective unless executed by the Participant and received by the Administrator
during the Participant's lifetime. 
Subject to Subsection (d), no such change or revocation requires the
consent of any person.

 

(b)
           
If a Participant

  

(i)             
fails to designate a Beneficiary, or

  (ii)           
  revokes a Beneficiary designation without naming another Beneficiary, or 

(iii)          designates one or
more Beneficiaries none of whom survives the Participant, 

  

for all or any portion of the Accounts, such Accounts or
portion are payable to the first class of the following classes of automatic
Beneficiaries that includes a member surviving the Participant:

Participant's spouse;

Participant's issue, per stirpes and not per capita;

Representative of Participant's estate.

(c)
            
When used in this section and, unless the designation
otherwise specifies, when used in a Beneficiary designation, the term "per
stirpes" means in equal shares among living children and the issue (taken
collectively) of each deceased child, with such issue taking by right of
representation; "children" means issue of the first generation; and "issue"
means all persons who are descended from the person referred to, either by
legitimate birth or legal adoption.  The
automatic Beneficiaries specified above and, unless the designation otherwise
specifies, the Beneficiaries designated by the Participant, become fixed as of
the Participant's death so that, if a Beneficiary survives the Participant but
dies before the receipt of all payments due such Beneficiary, any remaining
payments are payable to the representative of such Beneficiary's estate.  Any designation of a Beneficiary by name
that is accompanied by a description of relationship or only by statement of
relationship to the Participant is effective only to designate the person or
persons standing in such relationship to the Participant at the Participant's
death.

 

(d)
           
Notwithstanding Subsection (a), no designation of a
Beneficiary other than the Participant's spouse is effective unless such spouse
consents to the designation.  Any such
consent is effective only with respect to the Beneficiary or class of
Beneficiaries so designated and only with respect to the spouse who so
consented.

8.3.
         
Assignment, Alienation of Benefits.

(a)
            
Except as required under a qualified domestic relations order
or by the terms of any loan from the Trust or to comply with a federal tax levy
pursuant to Code section 6331, and except as otherwise provided in Code section
401(a)(13)(C),  

 

                 

(i) no benefit under the Plan may in any manner be anticipated,
  alienated, sold, transferred, assigned, pledged, encumbered or charged, and
  any attempt to do so is void and 

   

                 

(ii) no benefit under the Plan is in any manner liable for or
  subject to the debts, contracts, liabilities, engagements or torts of the
  person entitled to such benefit.

 

(b)
           
To the extent provided in a qualified domestic relations
order, distribution of benefits assigned to an alternate payee by such order
may be distributed to the alternate payee in the form of a lump sum payment
prior to the Participant's earliest retirement age.  The terms "qualified domestic relations order," "alternate
payee" and "earliest retirement age" have the meanings given in
Code section 414(p).

8.4.
         
Payment in Event of Incapacity.  If any person entitled to receive any
payment under the Plan is physically, mentally or legally incapable of
receiving or acknowledging receipt of the payment, and no legal representative
has been appointed for such person, the Administrator in its discretion may
(but is not required to) cause any sum otherwise payable to such person to be
paidto
any one or more of the following as may be chosen by the Administrator: the
Beneficiaries, if any, designated by such person; the institution maintaining
such person; a custodian for such person under the Uniform Transfers to Minors
Act of any state; or such person's spouse, children,
parents or other relatives by blood or marriage.  Any such payment completely discharges all liabilityunder the Plan to the person with respect to
whom the payment is made to the extent of the payment.

 

8.5.
         
Payment Satisfies Claims.  Any payment to or for the benefit of any Participant, or
Beneficiary in accordance with the provisions of the Plan, to the extent of
such payment, fully satisfies of all claims against the Trustee, the Administrator and the
Participating Employers, any of whom may require the payee to execute a
receipted release as a condition precedent to such payment.

 

8.6.
         
Disposition if Distributee Cannot be Located.  If the Administrator is unable to locate a
Participant or Beneficiary to whom a distribution is due, the amount that would
otherwise be distributed to the Participant or Beneficiary will be
forfeited, and the forfeited amount will be applied in accordance with Section
7.4.  The forfeited amount will be
restored to the Accounts from which the amount was forfeited, unadjusted for
interest or any change in value occurring after the forfeiture, upon the
Participant's or Beneficiary's claim for the benefit.  The restoration will be made through funds available pursuant to
Section 7.4(a).  To the extent such
funds are insufficient for such purpose, the Participating Employer with whom
the Participant was last employed will contribute the amount required to
restore the Accounts.

 

8.7.
         
Direct Rollovers and Transfers. 
 

 

(a)
            
To the extent a distribution is an Eligible Rollover
Distribution, the Administrator will, if so instructed by the distributee in
accordance with Plan Rules, direct the Trustee to make the distribution to an "eligible
retirement plan," within the meaning of Code section 402(c)(8).  Unless otherwise provided in Plan Rules, the
foregoing provision will not apply (i) if the aggregate taxable distributions
to be made to the distributee during the calendar year are less than $200, (ii)
if less than the entire taxable amount of the distribution is to be distributed
to the eligible retirement plan and the amount to be distributed to the
eligible retirement plan is less than $500 or (iii) with respect to any portion
of an Eligible Rollover Distribution that consists of an offset amount with
respect to a Plan loan.

 

(b)
           
The Administrator may direct the Trustee to transfer the
balance of any or all of the Accounts of a Participant to the trustee of
another plan if:  

 

 

  (i)             
  the other plan is a defined contribution plan qualified under Code section
  401(a); 

   

  (ii)           
  the other plan satisfies the requirements set forth in Code sections 401(k)
  and 411(d)(6) with respect to the transferred Accounts to which such
  requirements are applicable; and

   

  (iii)         
  the trustee of the other plan is willing to accept such transfer. 

 ARTICLE 9.

Contribution Limitations

9.1.
         
401(k) Contribution Dollar Limitation. 
 

(a)
            
The aggregate amount of 401(k) Contributions and other "elective
deferrals" (within the meaning of Code section 402(g)(3)) under any other
qualified plan maintained by an Affiliated Organization with respect to a
Participant for any taxable year of the Participant may not exceed the
limitation in effect for the taxable year under Code section 402(g).  The limitation for any Participant who
received a hardship distribution under Section 6.1 will, for the year following
the year in which such distribution was made, be reduced as provided in Section
6.1(c)(iv).  If the limitation is exceeded
for any taxable year of the Participant, the portion of the excess specified by
the Company, increased by Fund earnings or decreased by Fund losses
attributable to the excess as determined under Section 9.5, will be distributed
to the Participant.   

 

 

(b)
           
The amount distributed pursuant to this section to a
Participant who has made elective deferrals for the taxable year other than
pursuant to the Plan or another qualified plan maintained by an Affiliated
Organization will, to the extent of such other elective deferrals, be
determined in accordance with written allocation instructions received by the
Administrator from the Participant not later than March 1 of the following the
taxable year.

 

(c)            
A distribution pursuant to this section may be made at any
time after the excess contributions are received, but not later than April 15
of the taxable year following the taxable year to which the limitation
relates.   

9.2.
         
Actual Deferral Percentage Limitations.

(a)
            
For each Plan Year, the Plan must satisfy the requirements of
Code section 401(k)(3).   

  

(i)             
The Plan will satisfy the requirements of Code section
401(k)(3) for a Plan Year if, for that Plan Year, the Plan satisfies the
requirements of Code section 410(b)(1) with respect to "eligible employees"
and either of the following tests:

    

(1)           
the "actual deferral percentage" for the Plan Year
for eligible employees who are Highly Compensated Employees for the Plan Year
is not more than the product of the actual deferral percentage for the
precedingPlan Year for all eligible
employees who are not Highly Compensated Employees for the preceding Plan Year,
multiplied by one and one-quarter; or (2)           
the excess of the actual deferral percentage for the Plan Year
for eligible employees who are Highly Compensated Employees for the Plan Year
over the actual deferral percentage for the preceding Plan Year for all
eligible employees who are not Highly Compensated Employees for the preceding
Plan Year is not more than two percentage points and the actual deferral
percentage for the Plan Year for eligible employees who are Highly Compensated
Employees for the Plan Year is not more than the product of the actual deferral
percentage for the preceding Plan Year of all eligible employees who are not
Highly Compensated Employees for the preceding Plan Year, multiplied by
two;  provided, that for the initial
Plan Year, the actual deferral percentage for eligible employees who are not
Highly Compensated Employees is their actual deferral percentage for the
initial Plan Year. 

    

(ii)           
For purposes of this section and Section 9.4:

    

(1)           
"eligible employee" means an Active Participant who
is eligible to make 401(k) Contributions for the Plan Year in question or would
be eligible but for a suspension imposed under Section 3.1(b)(iv); and

      

(2)           
"actual deferral percentage," with respect to either
of the two groups of eligible employees referenced above, is the average of the
ratios, calculated separately for each eligible employee in the particular
group, of the amount of 401(k) Contributions made by the eligible employee for
the Plan Year in question, to the eligible employee's Testing Wages for the
Plan Year in question, or the portion of such Plan Year during which he or she
was an eligible employee, as specified in Plan Rules.  In computing the actual deferral percentage, the following rules apply:

      

(A)          
Any 401(k) Contributions made by an eligible employee who is
not a Highly Compensated Employee that are in excess of the limitation
described in Section 9.1 will be excluded;

 

(B)          
Any 401(k) Contributions made by an eligible employee that are
distributed to the eligible employee pursuant to Section 9.6(c) will be
excluded;

 

(C)          
Except as otherwise provided in Treasury Regulations, 401(k)
Contributions taken into account in determining the actual contribution
percentage under Section 9.3(a)(ii) will be excluded;

 

(D)          
To the extent permitted by Treasury Regulations and determined
by the Administrator, all or any portion of any other contribution to the Plan
or any other qualified plan maintained by an Affiliated Organization will be
included;

 

(E)           
Elective contributions under any other plan that is aggregated
with this Plan to satisfy the requirements of Code section 410(b) will be
included; and

 

(F)           
To the extent provided in Treasury Regulations, elective
contributions made under any other qualified cash or deferred arrangement of
any Affiliated Organization on behalf of any eligible Employee who is a Highly
Compensated Employee will be included.

      

    

  

(b)
           
To the extent deemed advisable by the Administrator to comply
with Code section 401(k)(3), the Administrator may, in accordance with Plan
Rules, prospectively decrease a Participant's 401(k) Contributions.  
 

 

 

(c)            
If, for any Plan Year, the requirements of Subsection (a) are
not satisfied, the Administrator will determine the amount by which 401(k)
Contributions made by each Highly Compensated Employee for the Plan Year
exceeds the permissible amount as determined under Subsection (a).  The determination will be made by
successively decreasing the rate of 401(k) Contributions by the Highly
Compensated Employees who, during the Plan Year, had the greatest percentage of
401(k) Contributions to the next lower percentage, then again decreasing the
percentage of such Highly Compensated Employees' 401(k) Contributions, together
with the percentage of 401(k) Contributions by such Highly Compensated Employees
who were already at such lower percentage, to the next lower percentage, and
continuing such procedure for as many percentage decreases as the Administrator
deems necessary.  The Administrator may
make such reductions in any amount.

 

(d)
           
The amount of excess 401(k) Contributions determined in
accordance with Subsection (c), increased by Fund earnings or decreased by Fund
losses attributable to such excess as determined under Section 9.5, will be
distributed to affected Highly Compensated Employees, at such time as the
Administrator specifies on or following the last day of the Plan Year for which
the determination is made, but in no case later than the last day of the
following Plan Year.  The amount to be
distributed with respect to any Plan Year will be reduced by the portion of the
amount, if any, distributed pursuant to Section 9.1 that is attributable to
401(k) Contributions that relate to such Plan Year, determined by assuming that
401(k) Contributions in excess of the limitation described in Section 9.1 for a
given taxable year are the first contributions made for a Plan Year falling
within such taxable year.  Additional
amounts to be distributed to Highly Compensated Employees will be determined by
successively decreasing the amount of 401(k) Contributions for Highly
Compensated Employees who, for the Plan Year, had the largest amount of 401(k)
Contributions made on their behalf to the next lower amount, and continuing
this procedure until an amount equal to the aggregate amount of excess 401(k)
Contributions has been removed from the Accounts of the Highly Compensated
Employees.

 

(e)
            
To the extent required or permitted by Treasury Regulations,
the Administrator will or may, as the case may be, apply the limitation
described in this section separately to each group of eligible employees who
are included in a unit of Employees covered by a collective bargaining
agreement.

 

(f)
             
If the Administrator elects to apply Code section 410(b)(4)(B)
in determining whether the Plan satisfies either of the tests described in Section
9.2(a)(i) for a Plan Year, all eligible employees who have not met either the
minimum age and/or minimum service requirements of Code section 410(a)(1)(A)
will be considered separately in accordance with the tests described in Section
9.2(a)(i).

9.3.
         
Actual Contribution Percentage Limitations.

(a)
            
For each Plan Year, the Plan must satisfy the requirements of
Code section 401(m)(2).

  

(i)             
The Plan will satisfy the requirements of Code section
401(m)(2) for a Plan Year if, for that Plan Year, the Plan satisfies either of
the following tests: 

    

(1)           
the "actual contribution percentage" for the Plan
Year for "eligible employees" who are Highly Compensated Employees
for the Plan Year is not more than the product of the actual contribution
percentage for the preceding Plan Year for all eligible employees who are not
Highly Compensated Employees for the preceding Plan Year, multiplied by one and
one-quarter; or 

 

(2)           
the excess of the actual contribution percentage for the Plan
Year for eligible employees who are 
Highly Compensated Employees for the Plan Year over the actual
contribution percentage for the preceding Plan Year for all eligible employees
who are not Highly Compensated Employees for the preceding Plan Year is not
more than two percentage points and the actual contribution percentage for the
Plan Year for Highly Compensated Employees for the Plan Year is not more than
the product of the actual contribution percentage for the preceding Plan Year
for all eligible employees who are not Highly Compensated Employees for the preceding
Plan Year, multiplied by two; provided, that for the initial Plan Year, the
actual contribution percentage for eligible employees who are not Highly
Compensated Employees is their actual contribution percentage for the initial
Plan Year.

    

(ii)           
For purposes of this section and Section 9.4:

    

(1)           
"eligible employee" means an Active Participant who
is eligible to make After-Tax Contributions, or to have Matching Contributions
made on his or her behalf for the Plan Year in question or who would be
eligible but for a suspension imposed under Section 3.1(b)(iv) or Section
3.2(b)(iv); and 

(2)           
the "actual contribution percentage" with respect to
either of the two groups of eligible employees referenced above, is the average
of the ratios, calculated separately for each eligible employee in the
particular group, of the aggregate amount of After-Tax Contributions made by,
andMatching Contributions made on
behalf of, the eligible employee for the Plan Year, to the eligible employee's
Testing Wages for the Plan Year, or the portion of the Plan Year during which
he or she was an eligible employee, as specified in Plan Rules.  In computing the actual contribution
percentage the following rules apply: 

      

(A)          
Except as otherwise provided in Treasury Regulations, Matching
Contributions taken into account in determining the actual deferral percentage
under Section 9.2(a)(ii) will be excluded;  

 

(B)          
Matching Contributions taken into account for purposes of the
minimum contribution required by Section 13.3(a) will be excluded;

 

(C)          
Any Matching Contributions forfeited pursuant to Section
9.6(c) will be excluded;

 

(D)          
To the extent permitted by Treasury Regulations and determined
by the Administrator, all or any portion of the 401(k) Contributions made by
eligible employees for the Plan Year will be included;

 

(E)           
To the extent permitted by Treasury Regulations and determined
by the Administrator, all or any portion of any other contributions to any
other qualified plan maintained by an Affiliated Organization will be included;

 

(F)           
Matching contributions (within the meaning of Code section
401(m)(4)(A)) and after-tax contributions made under any other plan that is
aggregated with this Plan to satisfy the requirements of Code section 410(b)
will be included; and

 

(G)          
To the extent required by Treasury Regulations, matching contributions
(within the meaning of Code section 401(m)(4)(A)) and after-tax contributions
made under any other qualified plan of any Affiliated Organization on behalf of
or by any eligible employee who is a Highly Compensated Employee will be
included.

      

    

  

(b)
           
If, for any Plan Year, the requirements of Subsection (a) are
not satisfied, the Administrator will determine the amount by which After-Tax
Contributions made by each Highly Compensated Employee for the Plan Year and,
if necessary, Matching Contributions made on behalf of each Highly Compensated
Employee for the Plan Year exceeds the permissible amount as determined under
Subsection (a), such determination being made in accordance with the procedure
described in Section 9.2(c) with respect to reductions of 401(k)
Contributions.   

 

 

(c)
            
The amount of excess After-Tax Contributions and Matching
Contributions determined in accordance with Subsection (b), increased by Fund
earnings or decreased by Fund losses attributable to such excess as determined
under Section 9.5, will be distributed to affected Highly Compensated Employees
at such time as the Administrator specifies on or following the last day of the
Plan Year for which the determination is made, but in no case later than the
last day of the following Plan Year; provided, however, that to the extent the
excess Matching Contributions would not be fully vested if retained in the
Plan, such excess will be forfeited rather than distributed, and any such
forfeitures will be applied as provided in Section 3.3(d).  Amounts to be distributed to Highly
Compensated Employees or forfeited will be determined by successively
decreasing the amount of After-Tax Contributions made by, and, if necessary,
Matching Contributions made on behalf of Highly Compensated Employees who, for
the Plan Year, made the largest After-Tax Contributions and had the largest
amount of Matching Contributions made on their behalf to the next lower amount,
and continuing this procedure until an amount equal to the aggregate amount of
excess contributions has been removed from the Accounts of the Highly
Compensated Employees.

 

(d)
           
To the extent provided in Treasury Regulations, the
limitations described in this section do not apply to any group of eligible
employees who are included in a unit of Employees covered by a collective
bargaining agreement.

 

(e)
            
If the Administrator elects to apply Code section 410(b)(4)(B)
in determining whether the Plan satisfies either of the tests described in
Section 9.3(a)(i) for any Plan Year, all eligible employees who have not met
either the minimum age and/or minimum service requirements of Code section
410(a)(1)(A) will be considered separately in accordance with the tests
described in Section 9.3(a)(i).

 

(f)             
To the extent deemed necessary by the Administrator in order
to comply with such requirements, the Administrator may, in accordance with
Plan Rules, prospectively decrease the rate at which a Participant may make
After-Tax Contributions.   

 

9.4.
         
Multiple Use Limitation.

(a)
            
This section applies for any Plan Year for which the sum of
the actual deferral percentage for eligible employees who are Highly
Compensated Employees, plus the actual contribution percentage for eligible
employees who are Highly Compensated Employees, exceeds the "aggregate
limit."  For purposes of this
subsection, the aggregate limit is the greater of:

  

(i)             
The sum of:

    

(1)           
the product of one and one-quarter, multiplied by the greater
of
 

      

(A)          
the actual deferral percentage for the Plan Year for eligible
employees who are not Highly Compensated Employees or

 

(B)
          
the actual contribution percentage for the Plan Year for
eligible employees who are not Highly Compensated Employees;

      

    

  

plus

  
    

(2)
           
the sum of two percentage points plus the lesser of the actual
deferral percentage determined under item (A) of clause (1) above or the actual
contribution percentage determined under item (B) of clause (1) above, with
such sum in no case exceeding twice the lesser of such actual deferral
percentage or actual contribution percentage; 

    

  

or

  

(ii)           
The sum of: 

    

(1)           
the product of one and one-quarter, multiplied by the lesser
of 

      

(A)          
the actual deferral percentage for the Plan Year for eligible
employees who are not Highly Compensated Employees or

 

(B)
          
the actual contribution percentage for the Plan Year for
eligible employees who are not Highly Compensated Employees;

      

    

  

plus

  
    

(2)           
the sum of two percentage points plus the greater of the
actual deferral percentage determined under item (A) of clause (1) above or the
actual contribution percentage determined under item (A) of clause (1) above,
with such sum in no case exceeding twice the lesser of such actual deferral
percentage or actual contribution percentage.

    

  

  

(b)
           
If, for any Plan Year, the calculations under Subsection (a)
require that this section be applied, the Administrator  will determine the amount by which After-Tax
Contributions made by, andMatching
Contributions made on behalf of, each Highly Compensated Employee for the Plan
Year causes the excess amount determined under Subsection (a), such
determination being made in accordance with the provisions of Section 9.3(b).  At such time as the Administrator  specifies on or following the last day of
the Plan Year for which such determination is made, but in no case later than
the last day of the following Plan Year, the excess will be corrected in
accordance with Section 9.3(c).

   

  

  

(c)
            
To the extent provided in Treasury Regulations, the
limitations described in this section do not apply to any group of eligible
employees who are included in a unit of employees covered by a collective
bargaining agreement.

  

9.5.
         
Earnings or Losses on Excess Contributions. 
 

(a)
            
The amount of Fund earnings or losses with respect to the
excess amount of contributions returned to a Highly Compensated Employee
pursuant to this article is an amount equal to the product of the total
earnings or losses for the Participant's Account to which the excess
contributions were credited for the Plan Year with respect to which the
determination is being made, multiplied by a fraction, the numerator of which
is the excess amount of contributions made on the 
Participant's behalf to such Account for the Plan Year, and the denominator of
which is the closing balance of such Account for the Plan Year, decreased by the
amount of earnings added to that Account, or increased by the amount of losses
charged to that Account, for the Plan Year.   

 

 

(b)           
Contributions returned pursuant to Section 9.6(c)(iii) will
also include the earnings or losses attributable to such excess amount for the
period between the end of the Plan Year with respect to which the determination
is being made and the date on which such excess contributions are distributed
to the Participant.  The earnings or
losses attributable to such excess amount for such period will be an amount
equal to the product of ten percent of the earnings or losses attributable to
such excess amount for the Plan Year, as determined in accordance with
Subsection (a), multiplied by the number of calendar months during the period
for which the determination is being made, with a distribution being made on or
before the fifteenth day of a month being deemed to have been made on the last
day of the preceding month and a distribution being made after the fifteenth
day of a month being deemed to have been made on the first day of the following
month.

9.6.
         
Annual Additions Limitation.

(a)
            
Notwithstanding any contrary provisions of the Plan, there will
not be allocated to any Participant's Accounts for a Plan Year any amount that
would cause the aggregate "annual additions" with respect to the
Participant for the Plan Year to exceed the lesser of:

  

(i)             
$30,000 (or such dollar amount, adjusted to reflect increases in the cost of
living, as in effect under Code section 415(c)(1)(A) for the calendar year
during which the Plan Year in question begins); and 

 

(ii)           
25 percent of the Participant's Section 415 Wages for the Plan Year. 

  

(b)
           
For purposes of Subsection (a), the "annual additions"
with respect to a Participant for a Plan Year are the sum of:

  

(i)             
the aggregate amount of 401(k), After Tax, Matching and Profit Sharing
Contributions allocated to the Participant's Accounts under the Plan for the
Plan Year (including the amount of any 401(k), Matching or After-Tax
Contributions distributed to the Participant or forfeited pursuant to Section
9.2(d) or 9.3(c) but excluding any 401(k) Contributions in excess of the
limitation set forth in Section 9.1 that are distributed to the Participant by
April 15 of the year following the year to which such contributions relate) and
employer contributions, employee contributions and forfeitures allocated to the
Participant's accounts under any other qualified defined contribution plan
maintained by any Affiliated Organization for the Plan Year; plus 

 

(ii)           
the amount, if any, attributable to post-retirement medical benefits that is
allocated to a separate account for the Participant as a "key employee" within
the meaning of Code section 416(i), to the extent required under Code section
419A(d)(1). 

 

Unless otherwise provided in Treasury Regulations, if a
401(k), Matching or Profit Sharing Contribution with respect to a Plan Year is
made more than 30 days after the due date (including extensions) of the Company's
federal income tax return for the Company's taxable year coinciding with the
Plan Year or in which the Plan Year ends, the contribution will be an annual
addition for the Plan Year during which the contribution is made.  If an After-Tax Contribution with respect to
a Plan Year is made more than 30 days after the end of the Plan Year, the
contribution will be an annual addition for the Plan Year during which the
contribution is made.

  

(c)            
 

  

(i)             
To the extent deemed advisable by the Administrator to prevent
the limitation under Subsection (a) from being exceeded, the Administrator may,
in accordance with Plan Rules, prospectively decrease a Participant's After-Tax
Contributions or 401(k) Contributions.

 

(ii)           
If a further reduction of contributions is required, the
amount of the Matching Contribution that would otherwise be allocated to the
Participant's Account will be reduced and the aggregate amount of the Matching
Contribution for the Plan Year will be reduced by the same amount and then the
Profit Sharing Contribution that would otherwise be allocated to the
Participant's Profit Sharing Contribution Account will be reduced and the
aggregate amount of the Profit SharingContribution for the Plan Year will be
reduced by the same amount. 

 

(iii)         
If, in spite of such reduction and as a result of the allocation of forfeitures
or a reasonable error in estimating the amount of the Participant's Eligible
Earnings, Section 415 Wages, 401(k) Contributions or other elective deferrals
within the meaning of Code section 402(g)(3) for the Plan Year, the limitation
would otherwise be exceeded, then, to the extent required to prevent such
excess: 

    

(1)           
the amount of After-Tax Contributions made by the Participant
for the Plan Year, together with earnings on such contributions, will be distributed
to the Participant; then

 

(2)           
the amount of 401(k) Contributions made for the Participant,
together with earnings on such contributions, will be distributed to the
Participant and any Matching Contributions attributable to the amount so
distributed, together with earnings on such contributions, will be forfeited
and applied as provided in Section 3.3(d); then 

 

(3)           
if a further excess would otherwise exist, the amount of such
excess will be held unallocated in a suspense account and will be allocated to
all other eligible Participants for the Plan Year and, to the extent necessary,
subsequent Plan Years, before Matching and Profit Sharing Contributions are
made for such Plan Year or Years, and will be applied toward the amount of such
contributions for such Plan Year or Years. 

    

  

9.7.
         
Administrator's Discretion.  Notwithstanding the foregoing provisions of this article, the
Administrator may apply the provisions of Sections 9.1
through 9.6 in any
manner permitted by Treasury Regulations that will cause the Plan to satisfy
the limitations of the Code incorporated in such sections and Treasury
Regulations thereunder, and the Administrator's good faith application of
Treasury Regulations is binding on all Participants and Beneficiaries.

 ARTICLE
10.

Service Rules

10.1.
       Vesting
Service.  The
term "Vesting Service" with respect to an Employee means, except as
provided in Section 10.3, the aggregate number of Plan Years during each of
which the Employee completes at least 1000 Hours of Service.

 

10.2.
       One-Year
Break in Service. 
An Employee will incur a "One-Year Break in Service" if the
Employee fails to complete at least 500 Hours of Service during a Plan Year;
provided, that, for purposes only of determining whether an Employee has
incurred such a One-Year Break in Service, in addition to Hours of Service
credited under Section 10.5, there will be taken into account the number of
Hours of Service that otherwise would have been credited to the Employee, or,
if the number of such hours of service cannot be determined, eight hours of
service for each day on which the Employee would have otherwise performed
services for an Affiliated Organization, during an authorized leave of absence,
while still employed with the Affiliated Organization, pursuant to any
established, nondiscriminatory leave policy of an Affiliated Organization or
due to: 

(a)
            
the Employee's pregnancy;

 

(b)
           
the birth of the Employee's child;

 

(c)
            
the placement of a child with the Employee in connection with
the adoption of such child by the Employee; or

 

(d)
           
the Employee's caring for such child for a period beginning
immediately following such birth or placement;

provided, first, that the total number of such
additional Hours of Service taken in to account by reason of any such absence
will not exceed 501; second, that, if the Employee would be prevented from incurring
a One-Year Break in Service for the Plan Year in which such absence commenced
solely because the additional Hours of Service are so credited, such Hours of
Service will be credited only to such Plan Year or, if a One-Year Break in
Service for such Plan Year would not be so prevented, such additional Hours of
Service will be credited to the Plan Year following the Plan Year during which
such absence commenced; and third, that, notwithstanding the foregoing, no such
additional Hours of Service will be credited in connection with an absence for
one of the reasons set forth at items (a) through (d) unless the Employee
furnishes to the Administrator, on a timely basis, such information as the
Administrator reasonably requires in order to establish the number of days
during which the Employee was absent for that reason.  In addition, an Employee will be credited with Hours of Service
for the purpose of determining whether he or she has incurred a One-Year Break
in Service to the extent required by the Family and Medical Leave Act of 1993.

 

10.3.
       Loss
of Service. 
If an Employee terminates employment and experiences at least five
consecutive One-Year Breaks in Service, then:

(a)
            
if the Employee had a vested interest in his or her Account
prior to the Breaks in Service,

  

(i)             
his or her Vesting Service completed prior to such Breaks in Service will be
taken into account in determining his or her vested interest in his or her
Accounts attributable to contributions made for periods after the Breaks in
Service but only if the Employee completes one year of Vesting Service following
such Breaks in Service and

  (ii)            the
  extent of the Employee's vested interest in his or her Accounts as determined
  under Section 7.1 prior to the Breaks in Service will not be increased by
  Vesting Service completed following the Breaks in Service; or 

  

(b)
           
if the Employee had no vested interest in his or her Account
prior to the Breaks in Service, the Employee's service completed prior to the
Breaks in Service will not be taken into account for any purpose under the
Plan.

10.4.
       Pre-Acquisition
Service.  Service with an entity (all or any
portion of which is acquired by, merges with or becomes an Affiliated
Organization) for any period prior to the date of the acquisition, merger or
affiliation will be taken into account under this Plan only if, to the extent
and for the purposes, specified on an exhibit to the Plan, as provided for in
Section 14.1(f). 

10.5.
       Hour
of Service.   

(a)
            
Subject to the remaining subsections of this section, the term
"Hour of Service," with respect to an Employee, includes and is
limited to:

  

(i)             
each hour for which the Employee is paid, or entitled to payment, for the
performance of duties for an Affiliated Organization;

    (ii)           
    each hour: 

    

(1)           
for which the Employee is paid, or entitled to payment, by an
Affiliated Organization 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 (including disability), layoff,
jury duty, military duty or leave of absence; (2)           
for which the Employee is not paid or entitled to payment but
which is required by federal law to be credited to the Employee on account of
his or her military service or similar duties; and 

(3)           
for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by an Affiliated Organization; provided, first,
that Hours of Service taken into account under clause (i), (ii)(1) or (ii)(2)
will not also be taken into account under this clause (3); and second, that
Hours of Service taken into account under this clause (3) that relate to
periods specified in clause (ii)(1) will be subject to the rules under
Subsection (b).  

    

    

  

(b)           
The following rules will apply for purposes of determining the
Hours of Service completed by an Employee under Subsection (a)(ii)(1):

  

(i)             
No more than 501 hours will be credited to the Employee on
account of any single continuous period during which the Employee performs no
duties (whether or not such period occurs in a single Plan Year);

  (ii)           
No more than the number of hours regularly scheduled for the
performance of duties for the period during which no duties are performed will
be credited to the Employee for such period;

 (iii)         
The Employee will not be credited with hours for which
payments are made or due under a plan maintained solely for the purpose of
complying with workers compensation, unemployment compensation or disability
insurance laws, or for which payments are made solely to reimburse the Employee
for medical or medically related expenses;

(iv)         
A payment will be deemed to be made by or due from an
Affiliated Organization, regardless of whether such payment is made by or due
from the Affiliated Organization directly or indirectly through a trust fund or
insurer to which the Affiliated Organization contributes or pays premiums;

 (v)           
If the payment made or due is calculated on the basis of units
of time, the number of Hours of Service to be credited will be the number of
regularly scheduled working hours included in the units of time on the basis of
which the payment is calculated; provided, that, if such a payment is made to
an Employee described in Subsection (d)(i), the number of Hours of Service to
be credited will be the number of equivalent hours determined under Subsection
(d)(i) that are included in the units of time on the basis of which the payment
is calculated; 

(vi)          If the payment
made or due is not calculated on the basis of units of time, the number of Hours
of Service to be credited will be equal to the amount of the payment, divided by
the Employee's most recent hourly rate of compensation before the period during
which no duties are performed; and

 (vii)        Hours will be
determined in accordance with Section 2530.200(b)-2(b) of the Department of
Labor Regulations which is incorporated herein by reference. 

  

(c)
            
Hours of Service will be credited:  

  

(i)             
in the case of Hours of Service described in Subsection
(a)(i), to the Plan Year in which the duties are performed;

  (ii)           
in the case of Hours of Service described in Subsection
(a)(ii)(1), to the Plan Year or Plan Years in which the period during which no
duties are performed occurs; provided, that, if the payment is not calculated
on the basis of units of time, the Hours of Service will not be allocated
between more than the first two Plan Years of such period;

(iii)         
in the case of Hours of Service described in Subsection (a)(ii)(2),
to the Plan Year or Plan Years determined by the Administrator in accordance
with the applicable federal law;

(iv)         
in the case of Hours of Service described in Subsection
(a)(ii)(3), to the Plan Year or Plan Years to which the award or agreement for
back pay pertains; and 

(v)            as
otherwise provided in Section 2530.200(b)-2(c) of the Department of Labor
Regulations which is incorporated herein by reference. 

  

(d)
           
For purposes of determining the number of Hours of Service
completed by an Employee during a particular period of time:  

  

(i)             
an Employee who is not subject to the overtime provisions of the Fair Labor
Standards Act of 1938, as from time to time amended, will be credited with 45
Hours of Service for each week during which he or she completes at least one
Hour of Service; and

  (ii)            each
  other Employee will be credited with the number of Hours of Service that he or
  she completes during such period. 

  

(e)
            
Notwithstanding the foregoing provisions of this section, an
individual will be credited with the number of Hours of Service he or she
completes, determined in the manner specified in Subsections (a) through (d):
 

  

(i)             
while a Leased Employee; and

  (ii)            with
  any other organization to the extent such Hours of Service are required to be
  taken into account pursuant to Treasury Regulations under Code section 414(o).

  

 ARTICLE
11.

Adoption, Amendment and Termination

11.1.
       Adoption
by Affiliated Organizations. 
With the prior approval of the Administrator, an Affiliated Organization
may adopt this Plan and become a Participating Employer.  Any special provisions applicable to a
Participating Employer's Employees will be set forth on an exhibit to the Plan.  Any adoption of the
Plan by an Affiliated Organization will be effective only if approved in
advance or subsequently ratified by the Company's Board prior to the end of the
fiscal year of such Affiliated Organization in which it adopts the Plan. 

11.2.
       Authority
to Amend and Procedure.  
 

(a)
            
The Company reserves the right to amend the Plan at any time,
to any extent.  Each amendment must be
stated in a written instrument approved in advance or subsequently ratified by
the Company's Board and executed in the name of the Company by a duly
authorized officer or the Company's Director of Compensation, Benefits &
HRIS, and attested by the Secretary or an Assistant Secretary.  On and after the effective date of the
amendment, all interested persons will be bound by the amendment; provided,
that no amendment will have any retroactive effect so as to deprive any
Participant, or any Beneficiary of a deceased Participant, of any benefit
already accrued or vested or of any option with respect to the form of such
benefit that is protected under Code section 411(d)(6), except that an
amendment required to qualify the Trust for income tax exemption may be
retroactive to the Effective Date of the Plan or to any later date.

 

(b)
           
If the provisions for determining the extent to which benefits
under the Plan are vested are changed, whether by amendment or because of the
Plan's becoming or ceasing to be a top-heavy plan, each Participant who has
completed at least three years of Vesting Service may elect to have his or her
vested benefits determined without regard to such change by giving written
notice of such election to the Administrator within the period beginning on the
date such change was adopted (or the Plan's top heavy status changed) and
ending 60 days after the latest of:  (i)
the date such change is adopted; (ii) the date such change becomes effective;
and (iii) the date the Administrator issues notice of such change to the
Participant.   

 

 

(c)
            
To the extent required by Code section 411(d)(6), each
Participant may elect to have that portion of his or her Accounts that was
accrued as of the date an optional form of benefit payment is eliminated
distributed in such optional form.

 

(d)
           
The provisions of the Plan in effect at the termination of a
Participant's employment will, except as specifically provided in any
subsequent amendment, continue to apply to such Participant.

11.3.
       Authority
to Terminate and Procedure. 
The Company expects to continue the Plan indefinitely but reserves the
right to terminate the Plan in its entirety at any time by a written instrument of termination.  Each Participating Employer expects to
continue its participation in the Plan indefinitely but reserves the right to 
cease its participation in the Plan at any
time.  The Plan will terminate in its
entirety as of the date specified by the Company in a written notice adopted
and executed in the manner of an amendment. 
The Plan will terminate with respect to a Participating Employer as of a
date specified in a written instrument approved in advance or ratified by the
Participating Employer's Board and executed in the name of the Participating
Employer by a duly authorized officer.  

 

11.4.
       Vesting
Upon Termination, Partial Termination or Discontinuance of Contributions.  Upon the termination of the Plan or upon the
complete discontinuance of contributions, the Accounts of each "affected
employee" will vest in full.  For
purposes of this section, "affected employee" means

(a)
            
a Participant who
is actively employed with an Affiliated Organization on the effective date of
the termination or complete discontinuance of contributions;

 

(b)           
a Participant who has terminated employment and has neither
received a complete distribution of his or her Account nor experienced at least
five consecutive One-Year Breaks in Service;

 

(c)            
a former Participant who terminated employment during the Plan
Year that includes the effective date of the termination or complete
discontinuance of contributions.

Upon a partial termination of the
Plan, the Accounts of each Participant as to whom the Plan has been partially
terminated will vest in full.

 

11.5.
       Distribution
Following Termination, Partial Termination or Discontinuance of Contributions.  After termination or partial termination of
the Plan or the complete discontinuance of contributions under the Plan, the
Trustee will continue to hold and distribute the Fund as if such event had not
occurred, but if the Administrator so directs in accordance with Treasury
Regulations, the Trustee will distribute to each Participant the entire balance
of his or her Accounts.

 ARTICLE
12.

PLAN ADMINISTRATION

12.1.
       Administrator,
Named Fiduciary.  The Company is the "named fiduciary"
of the Plan for purposes of ERISA.  

 

12.2.      
Committee.   

(a)
            
The general administration of the Plan and the duty to carry
out its provisions is vested in a Committee composed of not fewer than three
members who will serve at the pleasure of the Company's Board.  One member of the Committee will be the head
of the Company's human resources function, a second member of the Committee
will be the head of the Company's financial function and a third member of the
Committee will be the head of the Company's treasury function. Additional
members may be appointed to the Committee by the Company's Board to serve at
its pleasure. Each such additional member will file written acceptance of his
or her appointment with the Company's Board. 
A Committee member may resign by delivering his or her written
resignation to the Company's Board, and any Committee member may be removed,
with or without cause, by the Company's Board upon delivery of written notice
of such removal to the removed member. 
Any such resignation or removal will be effective upon delivery of the
written resignation or notice of removal, as the case may be, or upon any later
date specified therein.  Vacancies
created by any such resignation or removal will be filled by appointment by the
Company's Board; provided, that, subject to there being at least three persons
serving as Committee members at all times, the Company's Board need not fill
any vacancy so created.

 

(b)
           
In addition to its general duties and power and authority in
connection with the administration of the Plan, the Committee has the
discretionary power and authority with respect to -

  

(i)              
The selection, designation and removal of the Administrator, the Trustee and any
investment managers of the Fund;

  (ii)            
  The direction of investments of assets comprising the Fund in
  insurance-company issued deposit administration or similar group annuity
  contract or contracts; and 

(iii)           In the case
of any investment fund maintained pursuant to Section 5.1 the assets of which
are primarily invested in one or more insurance company issued deposit
administration or group annuity contracts, to determine, from time to time, the
portion of such investment fund, if any, that will not be invested in such
insurance-company issued contracts and to direct the Trustee as to the specific
investments or types of investments with respect to such portion of such
investment fund; provided, that nothing contained in this clause (iii) requires
the Committee to exercise such power or authority or limits the power or
authority of the Committee to delegate any such duties to the Administrator, the
Trustee or any investment manager. 

  

(c)
            
The Committee will perform its duties in accordance with the
following procedures.

  

(i)              
The head of the Company's human resources function will act as the chair of the
Committee and will preside over the Committee's meetings.

  (ii)            
  The Committee will designate the head of the Company's human resources
  function, or such other person as it may determine, to serve as Administrator
  pursuant to Section 12.3, and may from time to time revoke such designation
  and designate another person to serve as Administrator. Each such designation
  must be in writing, and a copy of the designation must be furnished to the
  Administrator and the Trustee.  The person designated to act as
  Administrator must file a written acceptance with the Committee.  Such
  person's duty hereunder will terminate upon revocation of such designation by
  the Committee or upon resignation as Administrator by the person so
  designated. Such revocation or resignation must be in writing and will be
  effective upon delivery thereof to the Administrator or the Committee as the
  case may be, and in either case to the Trustee. 

(iii)           The
Committee will elect a secretary who may, but need not, be a member of the
Committee.  The secretary will keep minutes of the Committee's meetings and
perform such other duties as may be specified from time to time by the
Committee. 

(iv)           The
Committee may appoint such subcommittees with such duties and powers as it may
specify, and it may delegate administrative powers to one or more of its members
or to such other person or entity as it may designate. 

(v)            
The Committee will meet at such times and places and upon such notice as its
members may determine from time to time.  A majority of the current
membership of the Committee will constitute a quorum for the transaction of
business, and all acts of the Committee at any meeting will require, for their
validity, the affirmative vote of a majority of the current membership of the
Committee.  The Committee may act without a meeting by the written
authorization of a majority of the members of the Committee. 

(vi)           The
Committee may adopt bylaws for the conduct of its business, provided such bylaws
are not inconsistent with the provisions of this article. 

(vii)         No member of the
Committee may vote with respect to a decision of the Committee relating solely
to his or her own participation or benefit under the Plan. 

  

12.3.
       Administrative
Duties.  To the extent
applicable to their respective administrative duties, the Committee and the
Administrator have the discretionary power and authority, and the
responsibility, to:   

(a)
            
Adopt rules, regulations and procedures not inconsistent with
the provisions of the Plan and uniform and equitable with respect to
individuals determined by the Administrator to be similarly situated at the
time in question, and to revoke or modify such rules and regulations at any
time;

 

 

(b)
           
Interpret, construe, apply and enforce the provisions of the
Plan and any Plan Rules, including the discretionary and final power and
authority to interpret, construe, apply and enforce uncertain provisions of the
Plan or Plan Rules, and remedy possible ambiguities, inconsistencies, omissions
and errors, and any such action taken by the Committee or the Administrator in
good faith is binding upon all Participants, Beneficiaries, alternate payees
and other interested persons;

 

(c)
            
Determine from time to time the status of all Employees,
Qualified Employees, Participants, Beneficiaries, alternate payees and other
interested persons for purposes of the Plan;  

 

 

(d)
           
Determine the rights of Employees, Qualified Employees,
Participants, Beneficiaries, alternate payees and other interested persons to
benefits under the Plan, the amount and the method and time or times of payment
of the benefit; and

 

(e)
            
Take any other actions determined by the Committee or the
Administrator to be necessary or advisable to in connection with the administration
of the Plan.

12.4.
       Delegation.  Except as otherwise provided in ERISA, the
Administrator may delegate specific duties and responsibilities, including
fiduciary duties and responsibilities. 
Such delegations may be to Employees or to other individuals,
committees or
entities.  Any delegation may, if
specifically stated, allow further delegations by the individual, committee or
entity to whom or which the delegation has been made subject to and in
accordance with any limitations, restrictions or conditions specified in the
delegation or in any other written instrument provided by the Administrator to
the individual, committee or entity to whom or which the delegation has been
made.  Any delegation may be rescinded by
the Administrator at any
time.  Each individual, committee or
entity to whom or which a fiduciary duty or responsibility has been delegated
is responsible for the exercise of such duties or responsibilities and is not
responsible for the acts or failure to act of any other fiduciary.  Any delegation by the Administrator of a
fiduciary duty or responsibility, other than to a person for whose conduct the
Administrator remains responsible, must be in writing, and the individual,
committee or entity to whom or which the delegation is made must submit a
written acceptance of the delegation to the Administrator.  Any
delegate's duty will terminate upon withdrawal of such authority by the
Administrator or upon withdrawal of the delegate's acceptance.  Any delegation to an Employee will
automatically terminate when he or she ceases to be an Employee.

 

12.5.
       Reports
and Records.  The
Administrator and those individuals, committees or entities to whom or which theAdministrator
has delegated fiduciary duties will keep records of all their proceedings and
actions, and will maintain all such books of account, records and other data as
necessary for the proper administration of the Plan and to comply with
applicable law.   

 

 

12.6.
       Compensation.  No employee of an Affiliated Organization
acting in a fiduciary capacity will be entitled to receive compensation from
the Trust for such services, but each will be 
entitled to reimbursement from the Trust for all sums reasonably and
necessarily expended in the performance of such duties.

 

12.7.
       Professional
Assistance.  The
Committee and the Administrator may retain such accounting, recordkeeping,
legal, clerical and other services as may reasonably be required in the
administration of the Plan, and may pay reasonable compensation from the Fund
for such services or may reimburse the Company from the Fund for reasonable
compensation paid by the Company for such services.  The Committee and the Administrator are entitled to rely
conclusively on all tables, valuations, certificates, opinions and reports furnished
to them by such persons and on all information, elections and designations
furnished to them by Participants, Beneficiaries, alternate payees and
Participating Employers.

 

12.8.
       Payment
of Administrative Costs. 
All costs of administering the Plan may be paid by the Trustee from the
Trust, but if not so paid, will be paid by the Company.

 

12.9.
       Indemnification.

(a)
            
To the extent permitted by law, the Participating Employers
jointly and severally agree to indemnify and hold harmless the Administrator,
the members of any fiduciary committee and other employees, officers or
directors of an Affiliated Organization to whom fiduciary duties are delegated
against any and all claims, losses, damages, expenses and liabilities arising
from their responsibilities in connection with the Plan which are not covered
by insurance (without recourse) paid for by the Participating Employers or
otherwise paid or reimbursed, unless they are determined to be due to gross
negligence or intentional misconduct. 
The Company has the right, but not the obligation, to select counsel and
control the defense and settlement of any action for which an individual may be
entitled to indemnification pursuant to this section.

 

(b)
           
An individual's right to indemnification pursuant to this
section is in addition to, and independent of, the individual's right, if any,
to indemnification pursuant to a Participating Employer's articles of
incorporation or bylaws (or comparable governing instruments), applicable law
or otherwise, but an individual is not entitled to indemnification from all
sources in an amount that exceeds his or her claims, losses, damages, expenses
and liabilities.

12.10.
    Claims
Procedure.   

 

(a)
            
The Administrator will notify a Participant in writing, within
90 days of the Participant's written application for benefits, of the
Participant's eligibility or noneligibility for benefits under the Plan.  If the Administrator determines that a
Participant is not eligible for benefits or full benefits, the notice will: 

 

  

(i) state the specific reasons for the denial of any benefits; 
  

   

  

(ii) provide a specific reference to the provision of the Plan on
  which the denial is based;  

   

  

(iii) provide a description of any additional information or
  material necessary for the claimant to perfect the claim, and a description of
  why it is needed; and  

   

  

(iv) provide an explanation of the Plan's claims review procedure
  and other appropriate information as to the steps to be taken if the
  Participant wishes to have the claim reviewed.  If the Administrator
  determines that there are special circumstances requiring additional time to
  make a decision, the Administrator will notify the Participant of the special
  circumstances and the date by which a decision is expected to be made, and may
  extend the time for up to an additional 90-day period.   

(b)
           
If a Participant is determined by the Administrator not to be
eligible for benefits or if the Participant believes that he or she is entitled
to greater or different benefits, the Participant will be provided the
opportunity to have his or her claim reviewed by the Administrator by filing a
petition for review with the Administrator within 60 days after the Participant
receives the notice issued by the Administrator.  The petition must state the specific reasons the Participant
believes he or she is entitled to benefits or greater or different benefits.  Within 60 days after the Administrator
receives the petition, the Administrator 
will give the Participant (and his or her counsel, if any) an
opportunity to present his or her position to the Administrator orally or in
writing, and the Participant (or his or her counsel) may review the pertinent
documents, and the Administrator will notify the Participant of its decision in
writing within said 60-day period, stating specifically the basis of the
decision written in a manner calculated to be understood by the Participant and
the specific provisions of the Plan on which the decision is based.  If, because of the need for a hearing, the
60-day period is not sufficient, the decision may be deferred for up to  
another
60-day period at the election of the Administrator, but notice of this deferral
must be given to the Participant.   

 

(c)
            
In the event of the death of a Participant, the same procedure
applies to the Beneficiary of the Participant.  

 

(d)
           
A claimant must  exhaust the procedure described in this
section before pursuing the claim in any other proceeding.

12.11.
    Disputes. 
 

 

(a)
            
A Participant, Beneficiary or alternate payee may not commence
a civil action pursuant to ERISA section 502(a)(1), with respect to a benefit
under the Plan after the earlier of:

  

(i)             
three years after the occurrence of the facts or circumstances
that give rise to or form the basis for such action; and

(ii)           
one yearfrom the
date the Participant, Beneficiary or alternate payee had actual knowledge of
the facts or circumstances that give rise to or form the basis for such action.

  

(b)           
In the case of a dispute between a Participant, Beneficiary,
alternate payee or other person claiming a right or entitlement pursuant to the
Plan and a Participating Employer, the Administrator, the Committee or other
person relating to or arising from the Plan, the United States District Court
for the District of Minnesota is a proper venue.  Regardless of where an action relating to or arising from the
Plan is pending, the law as stated and applied by the United States Court of
Appeals for the Eighth Circuit or the United States District Court for the
District of Minnesota will apply to and control all actions relating to the
Plan brought against the Plan, a Participating Employer, the Administrator, the
Committee or any other person or against any Participant, Beneficiary,
alternate payee or other person claiming a right or entitlement pursuant to the
Plan.

12.12.
    Correction
of Errors.  If the
Administrator determines that, by reason of administrative error or other cause
attributable to a Participating Employer, the Account of any Participant has
incurred a loss, the Administrator may enter into an agreement with the
Participating Employer under which the Account is fully restored and may, upon
such restoration, release the Participating Employer from further
responsibility.

 

12.13.   
Standards for Elections, Directions and Similar Actions.  Any election, direction, application,
designation or similar action required of a Participant, Beneficiary or
alternate payee (or any person claiming by, through or on behalf of a
Participant, Beneficiary or alternate payee) pursuant to the Plan must be made
in accordance with and is subject to the terms of the Plan and Plan Rules.

 ARTICLE
13.

Miscellaneous

13.1.
       Merger,
Consolidation, Transfer of Assets. 
If this Plan is merged or consolidated with, or his or her assets or
liabilities are transferred to, any other plan, each Participant will be
entitled to receive a benefit immediately after such merger, consolidation or
transfer (if such other plan were then terminated) that is equal to or greater
than the benefit he or she would have been entitled to receive immediately
before such merger, consolidation or transfer (if this Plan had then terminated
but without regard to Section 11.4).

 

13.2.
       Limited
Reversion of Fund.

(a)
            
Except as provided in Subsection (b), no corpus or income of
the Trust will at any time revert to any Affiliated Organization or be used
other than for the exclusive benefit of Participants and their Beneficiaries by
paying benefits and administrative expenses of the Plan.

 

(b)
           
Notwithstanding any contrary provision in the Plan:

  

(i)             
All contributions made by a Participating Employer to the Trustee prior to the
initial determination of the Internal Revenue Service as to qualification of the
Plan under Code section 401(a) and the tax exempt status of the Trust under Code
section 501(a) will be repaid by the Trustee to the Participating Employer, upon
the Participating Employer's written request, if the Internal Revenue Service
rules that the Plan is not qualified or the Trust is not tax exempt; provided,
that the Participating Employer must request such determination within a
reasonable time after adoption of the Plan and the repayment by the Trustee to
the Participating Employer must be made within one year after the date of denial
of qualification of the Plan; and 

(ii)           
To the extent a contribution is made by a Participating Employer by a mistake of
fact or a deduction is disallowed a Participating Employer under Code section
404, the Trustee will repay the contribution to the Participating Employer upon
the Participating Employer's written request; provided, that such repayment must
be made within one year after the mistaken payment is made or the deduction is
disallowed, as the case may be.  Each contribution to the Plan by a
Participating Employer is expressly conditioned on such contribution's being
fully deductible by the Participating Employer under Code section 404. 

  

13.3.
       Top-Heavy
Provisions.

(a)            
The provisions of this subsection will apply for any Plan Year
during which the Plan is "top heavy."

  

(i)             
Notwithstanding the provisions of Article 3, no contributions
will be made and allocated on behalf of any "key employee" for any
Plan Year during which the Plan is top heavy unless the amount of contributions
(excluding 401(k) Contributions) made and allocated for such Plan Year on
behalf of each Participant who is not a key employee and who is employed with
an Affiliated Organization on the last day of the Plan Year, expressed as a
percentage of the Participant's Testing Wages for the Plan Year, is at least equal
to the lesser of:

    

(1)           
three percent; or

    

(2)           
the largest percentage of such Testing Wages at which
contributions (including 401(k) Contributions) are made and allocated on behalf
of any key employee for such Plan Year. 

    

(ii)           
If, in addition to this Plan, an Affiliated Organization
maintains another qualified defined contribution plan or one or more qualified
defined benefit pension plans during a Plan Year, the provisions of clause (i)
will be applied for such Plan Year:

    

(1)           
by taking into account the employer contributions (other than
elective deferrals for a non-key employee) on behalf of the Participant under
all such defined contribution plans; and

      

(2)           
without regard to any Participant who is not a key employee
and whose accrued benefit, expressed as a single life annuity, under a defined
benefit pension plan maintained by the Affiliated Organization for such Plan
Year is not less than the product of 

      

(A)          
the Participant's average Testing Wages for the period of
consecutive years not exceeding the period of consecutive years (not exceeding
five) when the Participant had the highest aggregate Testing Wages,
disregarding years in which the Participant completed less than 1000 Hours of
Service, multiplied by

 

(B)          
the lesser of (I) two percent per year of service,
disregarding years of service beginning after the close of the last Plan Year
in which such defined benefit plan was a top heavy plan or (II) 20 percent.

      

    

  

(iii)         
Notwithstanding Section 7.1(h), each Participant's vested
nonforfeitable interest in the portion of his or her Profit Sharing
Contribution Account not described in Section 7.1(a) to the extent provided in
the following schedule:

	
  

  Full Years of Vesting Service

  Less than Three Years

  Three or More Years

  	
  Vested

  Interest

  
  0 
  %

  100%

  

If the Plan ceases to be a top
heavy plan, the portion of a Participant's Profit Sharing Contribution Account
that has vested pursuant to the foregoing schedule will remain nonforfeitable,
notwithstanding the subsequent application of the vesting schedule set forth in
Section 7.1(h) to amounts subsequently allocated to the Account.

(b)           
For purposes of Subsection (a),

  

(i)             
 

    

(1)           
The Plan will be a "top-heavy plan" for a particular
Plan Year if, as of the last day of the initial Plan Year or, with respect to
any other Plan Year, as of the last day of the preceding Plan Year, the
aggregate of the Account balances of key employees is greater than 60 percent
of the aggregate of the Account balances of all Participants.

      

(2)           
For purposes of calculating the aggregate Account balances for
both key employees and employees who are not key employees: 

      

(A)          
Any distributions made within the five-year period preceding
the Plan Year for which the determination is being made, other than a
distribution transferred or rolled over to a plan maintained by an Affiliated
Organization, will be included;

 

(B)          
Amounts transferred or rolled over from a plan not maintained
by an Affiliated Organization at the initiation of the Participant will be
excluded;

 

(C)          
The Account balances of any key employee and any employee who
is not a key employee who has not performed an Hour of Active Service at any
time during the five-year period ending on the date as of which the
determination is being made will be excluded; and

 

(D)          
The terms "key employee" and "employee"
include the Beneficiaries of such persons who have died.

      

    

  

  

(ii)           
 

    

(1)           
Notwithstanding the provisions of clause (i), this Plan will
not be a top-heavy plan if it is part of either a "required aggregation
group" or a "permissive aggregation group" and such aggregation
group is not top-heavy.  An aggregation
group will be top-heavy if the sum of the present value of accrued benefits and
account balances of key employees is more than 60 percent of the sum of the
present value of accrued benefits and account balances for all Participants,
such accrued benefits and account balances being calculated in each case in the
same manner as set forth in clause (i).

    

(2)           
Each plan in a required aggregation group will be top-heavy if
the group is top-heavy.  No plan in a
required aggregation group will be top-heavy if the group is not top-heavy.

(3)           
If a permissive aggregation group is top-heavy, only those
plans that are part of an underlying top-heavy, required aggregation group will
be top-heavy. No plan in a permissive aggregation group will be top-heavy if
the group is not top-heavy. 

    

(iii)          The "required
aggregation group" consists of (1) each plan of an Affiliated Organization in
which a key employee participates and (2) each other plan of an Affiliated
Organization that enables a plan in which a key employee participates to meet
the nondiscrimination requirements of Code sections 401(a)(4) or 410.

  (iv)          A "permissive
  aggregation group" consists of those plans that are required to be aggregated
  and one or more plans (providing comparable benefits or contributions) that
  are not required to be aggregated, which, when taken together, satisfy the
  requirements of Code sections 401(a)(4) and 410.

 (v)           
For purposes of applying clauses (ii), (iii) and (iv) of this Subsection (b),
any qualified defined contribution plan maintained by an Affiliated Organization
at any time within the five-year period preceding the Plan Year for which the
determination being made which, as of the date of such determination, has been
formally terminated, has ceased crediting service for benefit accruals and
vesting and has been or is distributing all plan assets to participants or their
beneficiaries, will be taken into account to the extent required or permitted
under such clauses and under Code section 416. 

  

(c)            
A "key employee" is any individual who is or was
employed with an Affiliated Organization and who, at any time during the Plan
Year in question or any of the preceding four Plan Years is or was:

  

(i)             
An officer of the Affiliated Organization (an administrative
executive in regular and continued service with the Affiliated Organization)
whose Section 415 Wages for such Plan Year exceed 50 percent of the amount in
effect under Code section 415(b)(1)(A) for such Plan Year, but in no case will
there be taken into account more than the lesser of (a) 50 persons, or (b) the
greater of (i) three persons or (ii) ten percent of the number of the Affiliated
Organization's employees, excluding for purposes of determining the number of
such officers, any employees described in Code section 414(q)(5);

(ii)            The
owner of an interest in the Affiliated Organization that is not less than the
interest owned by at least ten other persons employed with the Affiliated
Organization; provided, that, such owner will not be a key employee solely by
reason of such ownership for a Plan Year if he or she does not own more than
one-half of one percent of the value of the outstanding interests of the
Affiliated Organization or if the amount of his or her Section 415 Wages for
such Plan Year is less than the amount in effect under Code section 415(c)(1)(A)
for such Plan Year; 

(iii)          The owner of more
than five percent of the Affiliated Organization's outstanding stock or more
than five percent of the total combined voting power of the Affiliated
Organization's stock; or

 (iv)          The owner of
more than one percent of the Affiliated Organization's outstanding stock or more
than one percent of the total combined voting power of the Affiliated
Organization's stock, whose Section 415 Wages for such Plan Year exceed
$150,000. 

For purposes of this Subsection (c), ownership of an
Affiliated Organization's stock will be determined in accordance with Code
section 318; provided, that subparagraph 318(a)(2)(C) will be applied by
substituting the phrase "5 percent" for the phrase "50 percent"
wherever it appears in such Code section.

  

13.4.      

Qualified Military Service.

(a)
            
The provisions of this section apply only to an Employee who
is reemployed on or after December 12, 1994 and whose reemployment rights are
protected under the Uniformed Services Employment and Reemployment Rights Act
of 1994 ("USERRA") and are intended to comply with the requirements
of Code section 414(u).

 

(b)
           
Notwithstanding any other provisions of the Plan to the
contrary, a Qualified Employee who leaves the employ of a Participating
Employer for qualified military service and returns to employment with a
Participating Employer will be entitled to the restoration of benefits under
the Plan which would have accrued but for the Qualified Employee's absence due
to qualified military service.   

 

 

(c)
            
A Qualified Employee may make 401(k) Contributions and
After-Tax Contributions for the Plan Years during which he or she would have
been an Active Participant but for his or her qualified military service in
accordance with Sections 3.1 and 3.2 and the following additional rules:

  

(i)             
the Qualified Employee may elect to make 401(k) Contributions
and After-Tax Contributions, subject to the maximums in effect pursuant to
Sections 3.1 and 3.2 during the period of qualified military service;

 

(ii)           
the Qualified Employee may make the election described in
clause (i) at any time during the period that begins on his or her date of
reemployment and has the same length as the lesser of five years or the period
of the Qualified Employee's qualified military service multiplied by three; 

 

(iii)         
the 401(k) Contributions and After-Tax Contributions under this subsection are
not subject to the limitations described in Section 9.2, 9.3 or 9.4. 

  

(d)
           
A Qualified Employee's Participating Employer will make
Matching Contributions with respect to the Qualified Employee's 401(k)
Contributions pursuant to Subsection (c) in the same amount as if such 401(k)
Contributions had actually been made during the Participant's period of
qualified military service.  The
Matching Contributions made pursuant to this subsection are not subject to the
limitations described in Section 9.3 or 9.4.

 

(e)
            
The following additional rules and conditions apply with
respect to qualified military service notwithstanding any contrary provision of
the Plan:

  

(i)             
an Employee will not be treated as having incurred a Break in Service by reason
of his or her qualified military service; 

 

(ii)           
any period of qualified military service will be counted as Vesting Service; 

 

(iii)         
for purposes of determining the Qualified Employee's Eligible Earnings and
Section 415 Wages, the Qualified Employee will be treated as receiving
compensation from the Participating Employer with whom he or she was employed
immediately before the period of qualified military service during the period of
qualified military service in an amount equal to the compensation he or she
would have received during such period if he or she were not in qualified
military service determined based on the rate of pay the Qualified Employee
would have received from the Participating Employer but for the absence due to
qualified military service; provided, however, if the compensation the Qualified
Employee would have received from the Participating Employer is not reasonably
certain, then the Qualified Employee's rate of compensation will be equal to his
or her average compensation for the 12-month period preceding the qualified
military service (or, if shorter, the period of employment immediately preceding
the qualified military service); 

 

(iv)         
contributions on behalf or by the Qualified Employee will be subject to the
limitations in Sections 9.1 and 9.6 with respect to the Plan Years to which such
contributions relate in accordance with Treasury Regulations; 

 

(v)           
the Qualified Employee will not be entitled to any crediting of earnings on
contributions for any period prior to actual payment to the Trust; and 

 

(vi)         
the Qualified Employee will not be entitled to restoration of any forfeitures
which were not allocated to his or her Account as a result of his or her
qualified military service. 

  

(f)
             
For purposes of this section, "qualified military service"
means any service in the uniformed services as defined in USERRA by a Qualified
Employee who is entitled to reemployment rights with a Participating Employer
under USERRA.

13.5.
       Short
Plan Years.  To the extent
required by and in accordance with Treasury Regulations, for any Plan Year that
is less than 12 months long, the dollar limitations in effect for purposes of
Code sections 401(a)(17), 414(q), 415 and 416 will be adjusted to reflect the
short Plan Year.

ARTICLE
14.

Construction,
Interpretations AND DEFINITIONS

14.1.
       Construction
and Interpretations.  The
rules of construction and interpretations set forth in this section apply in
construing this instrument unless the context otherwise indicates.

(a)            
Consent of Spouse. 
Whenever the consent of a Participant's spouse is required with respect
to any act of the Participant, such consent will be deemed to have been
obtained only if:

  

(i)             
the Participant's spouse executes a written consent to such act, which consent
acknowledges the effect of such act and is witnessed by a Plan representative or
a notary public; or

  (ii)            the
  Administrator determines that no such consent can be obtained because the
  Participant has no spouse, because the Participant's spouse cannot be located,
  or because of such other circumstances as may, under Treasury Regulations,
  justify the lack of such consent. 

  

Any such consent by the
Participant's spouse or such determination by the Administrator that such
spouse's consent is not required is effective only with respect to the
particular spouse of the Participant who so consented or with respect to whom
such determination was made.  Any such
consent by the Participant's spouse to an act of the Participant under the Plan
is irrevocable with respect to that act.

(b)           
Governing Law. 
To the extent that state law is not preempted by provisions of ERISA or
any other laws of the United States, this Plan will be administered, construed,
and enforced according to the internal, substantive laws of the State of
Minnesota, without regard to its conflict of laws rules.

 

(c)            
Headings.  The
headings of articles and sections are included solely for convenience.  In the case of a conflict between a heading
and the text of the Plan, the text controls.

 

(d)           
No Employment Rights Created.  The establishment and maintenance of the Plan neither gives any
Employee a right to continuing employment nor limits the right of an Affiliated Organization to discharge or otherwise deal with the Employee
without regard to the effect such action might have on his or her initial or
continued participation in the Plan.

 

(e)            
Number and Gender. 
Wherever appropriate, the singular number may be read as the plural, the
plural may be read as the singular, and the masculine gender may be read as the
feminine gender.

 

(f)             
Special Provisions. 
Special provisions of the Plan applicable only to certain Participants
will be set forth on an exhibit to the Plan.  In the event of a conflict between the terms of the exhibit and
the terms of the Plan, the exhibit controls.

14.2.
        Definitions.  The definitions set forth in this section
apply in construing this instrument unless the context otherwise indicates.

Account.  An "Account" with respect to a
Participant is any or all of the accounts maintained on his or her behalf
pursuant to Section 4.1, as the context requires.

Active
Participant.  An "Active
Participant" is a Participant who is a Qualified Employee.

Administrator.  The "Administrator" of the Plan is
the Company or any individual or committee to
whom or to which administrative duties are delegated by the Company with
respect to the delegated duties.

Affiliated
Organization.  An "Affiliated
Organization" is the Company and any other corporation that is a member of
a controlled group of corporations (within the meaning of Code section 1563(a)
without regard to Code sections 1563(a)(4) and 1563(e)(3)(C)) that includes the
Company, any trade or business (whether or not incorporated) that together with
the Company is under common control (within the meaning of Code section
414(c)), any member of an "affiliated service group" (within the
meaning of Code section 414(m)) of which the Company is a member or any other
organization that, together with the Company, is treated as a single employer
pursuant to Code section 414(o) and Treasury Regulations thereunder; provided,
that, for purposes of applying the limitations set forth at Section 9.6, such
determination under Code section 1563(a) will be made by substituting the
phrase "more than 50 percent" for the phrase "at least 80
percent" wherever it appears in such Code section.

After-Tax
Contribution Account.  The "After-Tax
Contribution Account" is the account established pursuant to Section
4.1(a)(ii).

After-Tax
Contributions.  "After-Tax
Contributions" means contributions made by an Active Participant pursuant
to Section 3.2.

Beneficiary.  A "Beneficiary" is a person
designated or otherwise determined under the provisions of Section 8.2 as the
distributee of benefits payable after the death of a Participant.  A person designated as, or otherwise
determined to be, a Beneficiary under the terms of the Plan has no interest in
or rights under the Plan until the Participant in question has died.  A Beneficiary will cease to be such on the day on which all
benefits to which he, she or it is entitled under the Plan have been
distributed.

Board.  The "Board" is the board of
directors or comparable governing body of the Affiliated Organization in
question.  When the Plan provides for an
action to be taken by the
Board, the action may be taken by any committee or individual authorized to
take such action pursuant to a proper delegation by the board of directors or
comparable governing
body in question.

Code.  The "Code" is the Internal Revenue
Code of 1986, as amended.  Any reference
to a specific provision of the Code includes a reference to such provision, any
valid ruling, regulation or authoritative pronouncement promulgated thereunder and
any provision of future law that amends, supplements or supersedes the
provision.

Committee.  The "Committee" is the
administrative committee constituted under Section 12.2.

Company.  The "Company" is BMC Industries,
Inc. or any successor thereto.

Company Stock.  "Company Stock" is the common
stock of the Company.

Disabled.  A
Participant will be considered to be "Disabled" only if 

(a)       in the case of a Participant who is
participating in the Company's long-term disability plan, he or she is
receiving disability benefits under such plan, or

(b)       in the case of any other Participant, he
or she is certified as being disabled by the Social Security Administration and
is receiving disability benefits under the disability provisions of the Social
Security Act.

Effective Date.  The "Effective Date" of
 the Plan is April 1, 1979.

Eligible
Earnings.  

(a)            
The "Eligible Earnings" of a Participant from a
Participating Employer for any Plan Year for purposes of 401(k) Contributions,
After-Tax Contributions and Matching Contributions is the sum of all
remuneration paid to the Participant by the Participating Employer for the
portion of a Plan Year in which he or she is an Active Participant that is
reportable in the "wages, tips, other compensation" box of Internal
Revenue Form W-2, increased by amounts that are deferred under Section 3.1 as
401(k) Contributions and amounts by which a Participant's compensation from the
Participating Employer for such portion of the Plan Year is reduced under a
Code section 125 cafeteria plan or by reason of Code section 132(f)(4).  To the extent otherwise included, Eligible
Earnings are determined under this clause (a) by excluding the amount of any
imputed income of the Participant with respect to the portion of the Plan Year
in which he or she is an Active Participant, severance pay of any kind or
nature, tuition aid, relocation reimbursement, payments made pursuant to the
BMC Industries, Inc. Long-Term Incentive Plan or amounts attributable to a
stock incentive award (including, but not limited to stock options, stock
appreciation rights, restricted stock, performance units or stock bonuses).

 

(b)           
The "Eligible Earnings" of a Participant from a
Participating Employer for any Plan Year for the purpose of Profit Sharing
Contributions is:

             (i)        for non-sales personnel -- 

             the Participant's
annual base salary or wages paid to the Participant by the Participating
Employer during the Plan Year, including shift premium, increased by amounts
paid to the Participant by the Participating Employer during the Plan Year for
time in excess of straight time but disregarding the portion of such amounts,
if any, representing a premium over straight time rates, and

             (ii)       for sales personnel --

             the greater of (A) the
Participant's annual base salary paid by the Participating Employer during the
Plan Year, or (B) the lesser of (1) the Participant's annual base salary plus
commissions paid by the Participating Employer during the Plan Year or (2)
$60,000.

             To the extent
otherwise included, Eligible Earnings are determined under this clause (b) by
excluding severance pay of any kind or nature, tuition aid, relocation
reimbursement, payments made pursuant to the BMC Industries, Inc. Long-Term
Incentive Plan or amounts attributable to a stock incentive award (including, but
not limited to stock options, stock appreciation rights, restricted stock,
performance units or stock bonuses).

(c)
            
In no event will a Participant's Eligible Earnings for any
Plan Year be taken into account to the extent it exceeds $150,000 (or such
larger amount as may be permitted for the calendar year during which such Plan
Year begins under Code section 401(a)(17)).

Eligible
Rollover Distribution.  An "Eligible
Rollover Distribution" is any distribution of all or any portion of the
balance to the credit of the distributee, except that an Eligible Rollover
Distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the distributee or the joint lives (or
joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any distribution
to the extent such distribution is required under Code section 401(a)(9); the
portion of any distribution that is not includable in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to
employer securities); any hardship distribution described in Code section
401(k)(2)(B)(i)(IV); and any other amount excepted from the definition of "eligible
rollover distribution" by Code section 402(c)(4).

Employee.  An "Employee" is any individual
who performs services for an Affiliated Organization as a common-law employee
of the Affiliated Organization.

ERISA.  "ERISA"
is the Employee Retirement Income Security Act of 1974, as amended.  Any reference to a specific provision of
ERISA includes a reference to such provision, any valid ruling, regulation or
authoritative pronouncement promulgated thereunder and any provision of future
law that amends, supplements or supersedes the provision.

Excess Eligible Earnings.  The "Excess Eligible Earnings" of
a Participant from a Participating Employer for a Plan Year means the portion
of his or her Eligible Earnings from the Participating Employer for the Plan
Year, if any, in excess of the contribution and benefit base in effect for the
calendar year during which the Plan Year begins under section 230 of the Social
Security Act.

401(k) Contribution Account.  The "401(k) Contribution Account"
is the account established pursuant to Section 4.1(a)(i). 
Prior to the Restatement Date, this account was called the "before-tax
contribution account."

401(k) Contributions.  "401(k) Contributions" means
contributions made by Participants pursuant to Section 3.1.  Prior to the Restatement Date, these
contributions were called "before-tax contributions."

Fund.  The "Fund" is the total of all of
the assets of every kind and nature, both principal and income, held in the Trust
at any particular time or, if the context so requires, one or more of the
investment funds described in Section 5.1.

Highly
Compensated Employee.

(a)       A "Highly Compensated Employee"
for any Plan Year is any employee who: 

  

(i)             
at any time during such Plan Year or the 12-month period
preceding such Plan Year, owns or owned (or is considered as owning or having
owned within the meaning of Code section 318) more than five percent of the
outstanding stock of an Affiliated Organization or stock possessing more than
five percent of the total combined voting power of all outstanding stock of an
Affiliated Organization; or

(ii)           
during the 12-month period preceding such Plan Year, received
compensation in excess of $80,000 (or such dollar amount, adjusted to reflect
increases in the cost of living, as in effect under Code section 414(q)(1)(B)
for the calendar year during which the Plan Year in question begins).

  

(b)       For
purposes of this section:

(i)        an "employee" is any individual (other than an
individual who is a nonresident alien who receives no earned income (within the
meaning of Code section 911(d)(2)) from an Affiliated Organization that
constitutes income from sources within the United States (within the meaning of
Code section 861(a)(3))) who, during the Plan Year for which the determination
is being made, performs services for an Affiliated Organization as

(1)           
a common-law employee,

(2)           
an employee pursuant to Code section 401(c)(1) or

(3)           
a Leased Employee; and

(ii)       "compensation" for any period means an employee's
Section 415 Wages for the period.  

(iii)      A former employee of an Affiliated
Organization shall be treated as a former Highly Compensated Employee of the
Affiliated Organization if the former employee was a Highly Compensated
Employee of the Affiliated Organization when the former employee incurred a
Termination of Employment or the former employee was a Highly Compensated
Employee of the Affiliated Organization at any time after attaining age
55.  The determination of who is a
former Highly Compensated Employee is based on the rules applicable to
determining Highly Compensated Employee status as in effect for that
determination year in accordance with Section 1.414(q)-1T, Q&A-4 of the
Temporary Income Tax Regulations and Notice 97-45 or later guidance under the
Code.

Hour
of Active Service.  An "Hour
of Active Service" is an hour for which the Employee is paid, or entitled
to payment, for the performance of duties for an Affiliated Organization.

Hour
of Service. An "Hour of Service" shall have the meaning
assigned to it in Section 10.5.

Leased
Employee.  A "Leased
Employee" is any individual (other than an Employee) who provides services
for an Affiliated Organization (or for an Affiliated Organization and "related
persons" within the meaning of Code section 144(a)(3)):

(a)       pursuant
to an agreement between an Affiliated Organization and any other person;

(b)       under the Affiliated Organization's
primary direction and control; and

(c)       on a substantially full-time basis for a
period of at least one year.

Matching Contribution Account.  The "Matching Contribution Account" is the account
established pursuant to Section 4.1(a)(iii).

Matching
Contributions.  "Matching
Contributions" means contributions made by the Participating Employers on
behalf of Participants pursuant to Section 3.3 or 3.6.

Normal
Retirement Date.  The "Normal
Retirement Date" of a Participant is the date on which he or she attains
age 65.

One-Year
Break in Service.  "One-Year Break in Service" is
defined in Section 10.2.

Participant.  A "Participant" is a current or
former Qualified Employee who has entered the Plan pursuant to the provisions
of Article 2 and who has not ceased to be a Participant pursuant to the
provisions of Section 2.8.

Participating Business Unit.  A "Participating Business Unit" is
a division, work location or other operational unit of a Participating
Employer, the eligible employees of which have been designated by the
Participating Employer to participate in the Plan, as communicated in writing
to the Company by the Participating Employer's Board.

Participating
Employer.  A "Participating
Employer" is the Company and any other Affiliated Organization that has
adopted the Plan, or all of them collectively, as the context requires, and
their respective successors.  An
Affiliated Organization will cease to be a Participating Employer upon a
termination of the Plan as to its Qualified Employees or upon its ceasing to be
an Affiliated Organization.

Plan.  The "Plan" is that set forth in
this instrument as it may be amended from time to time.  

Plan
Rule.  A "Plan Rule"
is a rule, policy, practice or procedure adopted by the Administrator.  

Plan
Year.  A "Plan Year"
is the 12-month period beginning on each January 1 and ending on the first
following December 31.

 Profit Sharing
Contribution Account.  The "Profit
Sharing Contribution Account" is the account established pursuant to
Section 4.1(a)(iv).

 Profit Sharing
Contributions.  "Profit Sharing
Contributions" means contributions made by the Participating Employers on
behalf of Participants pursuant to Section 3.4 or 3.6.

 Profit Sharing Plan
Rollover Account.  The "Profit
Sharing Plan Rollover Account" is the account established pursuant to
Section 4.1(a)(vi).

Qualified
Employee.  

(a)       Except as provided in Subsection (b), a "Qualified
Employee" is an Employee who 

(i)        performs services for a Participating
Business Unit as an employee of a Participating Employer (as classified by the
Participating Employer at the time the services are performed without regard to
any subsequent reclassification); or 

(ii)       is paid by a Participating Employer on a
United States payroll while on a temporary foreign assignment as an employee of
P.T. Vision-Ease Asia.

(b)       An Employee who would otherwise be a
Qualified Employee is not a Qualified Employee if he or she:

(i)        is a nonresident alien who receives no
earned income (within the meaning of Code section 911(d)(2) from a
Participating Employer that constitutes income from sources within the United
States (within the meaning of Code section 861(a)(3)); or

(ii)       is covered by a collective bargaining
agreement, for whom retirement benefits were the subject of good faith
bargaining between such person's representative and a Participating Employer,
and is not, as a result of such bargaining, specifically covered by this Plan;
or

(iii)      is working in the United States on a
temporary foreign assignment; or 

(iv)      is a Leased Employee.

(c)       An individual who is classified by a Participating Employer as
an independent contractor, Leased Employee or as any other status in which the individual
is not classified by the Participating Employer as a common-law employee of the
Participating Employer at the time services are performed is not a Qualified
Employee.  No judicial or administrative
reclassification, or reclassification by the Participating Employer, will be
applied to grant retroactive eligibility to any individual under the Plan.

Restatement
Date.  The "Restatement
Date" of the Plan is January 1, 2001, or such earlier date as specified in
the Addendum.

Rollover
Account.  The "Rollover
Account" is the account established pursuant to Section 4.1(a)(v).

Section
415 Wages.  

(a)       An individual's "Section 415 Wages"
for any period is his or her "compensation," within the meaning of
Code section 415(c)(3) and Treasury Regulations thereunder, for the period from
all Affiliated Organizations.

(b)       The Administrator may, for any period,
determine the items of remuneration that, in accordance with Treasury
Regulations, will be included in Section 415 Wages for such period; provided
that for each purpose under this Plan, the Administrator's determination will
be uniform throughout any period.

(c)       An individual's "Section 415 Wages"
for any period shall include elective contribution pursuant to a qualified cash
or deferred arrangement, otherwise payable to the individual by an Affiliated
Organization, and other amount that are not includible in the individual's
gross income by reason of Code section 125, 132(f)(4) or 457.

Termination
of Employment.

(a)       For purposes of the Plan, a Participant
will be deemed to have terminated employment only if he or she has completely
severed his or her employment relationship with all Affiliated Organizations or
become Disabled.  Neither transfer of
employment among Affiliated Organizations nor absence from active service by
reason of disability leave, other than in connection with a Participant
becoming Disabled, or any other leave of absence will constitute a Termination
of Employment.

(b)       A Participant will be deemed to have
terminated employment in conjunction with the disposition of all or any portion
of the business operation of an Affiliated Organization which is a disposition
of a subsidiary or of substantially all of the assets used in a trade or
business of an Affiliated Organization within the meaning of Code section
401(k)(10)(A) with respect to which the requirements of Code section
401(k)(10)(B) and (C) are satisfied.

(c)       A Participant who, in conjunction with
the disposition of all or any portion of a business operation of an Affiliated
Organization which is not described in Subsection (b), transfers employment to
the acquirer of such business operation or to any affiliate of such acquirer
will not be considered to have terminated employment.  If a Participant is deemed to have continued employment by reason
of the preceding sentence, such sentence will continue to apply to such
Participant in the event of any subsequent transfer of employment in
conjunction with the disposition of all or any portion of a business operation
of the initial acquirer or any subsequent acquirers which is not a disposition
of a subsidiary of such acquirer or of substantially all of the assets used in
a trade or business of such acquirer within the meaning of Code section
401(k)(10)(A) with respect to which the requirements of Code section
401(k)(10)(B) and (C) are satisfied. 
Except in conjunction with such a disposition of a subsidiary or
substantially all of the assets used in a trade or business of the seller, such
a Participant will be considered to have terminated employment only when he or
she has severed the employment relationship with all such acquirers and their
affiliates.

Testing Wages.  

(a)       An individual's "Testing
Wages" for any Plan Year is his or her Section 415 Wages for the Plan
Year.

(b)       Notwithstanding Subsection (a), in no
event will a person's Testing Wages for any Plan Year be taken into account to
the extent it exceeds $150,000 (or such other larger amount as may be permitted
for the calendar year during which such Plan Year begins under Code section 401(a)(17)).

(c)       The Administrator may, for any Plan Year,
adopt any alternative definition of Testing Wages that complies with Code
section 414(s) and Treasury Regulations thereunder; provided, that for each
purpose under this Plan, the definition so adopted will be uniform throughout
any Plan Year.

Treasury
Regulations.  "Treasury
Regulations" mean regulations, rulings, notices and other promulgations
issued under the authority of the Secretary of the Treasury that apply to, or
may be relied upon in the administration of, this Plan.

Trust.  The "Trust" is that created for
purposes of implementing benefits under the Plan.

Trustee.  The "Trustee" is the corporation
and/or individual or individuals who from time to time is or are the duly
appointed and acting trustee or trustees of the Trust.

Vesting Service.  "Vesting Service" is defined in
Section 10.1. 

  

BMC
INDUSTRIES, INC.

SAVINGS AND PROFIT SHARING PLAN

 2001 Revision

ADDENDUM 

 

SPECIAL EFFECTIVE
DATES

 

The
following Plan provisions are effective prior to the Restatement Date:

 

Definitions

Effective
on or after January 1, 2000, the definition of "Eligible Earnings" in
Section 14.2 of the Plan shall include elective amounts that are not includible
in the gross income of the Employee by reason of Code section 132(f)(4).

The
definition of "Eligible Rollover Distribution" in Section 14.2 of the
Plan is effective for Plan Years beginning on or after January 1, 1999.

The
definition of "Highly Compensated Employee" in Section 14.2 of the
Plan is effective for Plan Years beginning on or after January 1, 1997.

The
definition of "Leased Employee" in Section 14.2 of the Plan is
effective for Plan Years beginning on or after January 1, 1997.

 The
definition of "Section 415 Wages" in Section 14.2 of the Plan is
generally effective for Plan Years beginning on and after January 1, 1998.  Effective for Plan Years beginning on and
after January 1, 2001, the definition of "Section 415 Wages" shall
include elective amounts that are not includable in the gross income of the Employee
by reason of Code section 132(f)(4). 

 

ADP/ACP Testing

The actual deferral percentage test under Section
9.2(a)(i) and the actual contribution percentage test under Section 9.3(a)(i).
were applied using the prior year testing methodfor the following Plan Years: 
1999 and 2000.  

Sections
9.2(d) and 9.3(c) of the Plan regarding return of excess elective contributions
and excess matching contributions are effective as of January 1, 1997.

Sections
9.2(f) and 9.3(e) of the Plan regarding the nondiscrimination early
participation rule is effective as of January 1, 1999.  

 

Distributions

Effective
on and after September 1, 1998, the "required beginning date" and
timing of distribution election discussed in Section 8.1 of the Plan was
changed for non-5-percent owners to April 1 following the later of (i) the year
in which the Employee attains age 701/2 and (ii) the year in which the Employee
incurs a Termination of Employment.

As of
October 17, 2000, the cash-out limit in Section 8.1(a)(i) of the Plan shall be
applied as of the date on which the distribution is made, regardless of the
prior balance of the Participant's Account.

 

Highly
Compensated Employees Determinations

Look Back Year Elections.  Prior to the Restatement Date, the
Plan was administered in accordance with the following look back year election:

12-consecutive
month period immediately preceding the Plan Year for the 1997, 1998, 1999 and
2000 Plan Years.

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