Document:

EXHIBIT 10.2

 

AMENDED AND RESTATED ISSUING AND PAYING
AGENCY AGREEMENT

 

[4(2) Commercial Paper Program]

 

Dated as of May 3, 2006

 

Deutsche Bank National Trust Company

Global Transaction Banking

Trust & Securities Services

25 DeForest Ave, 2nd Floor

Mail Stop: SUM01-0105

Summit, NJ 07901

 

ATTN: Corporate Trust and Agency Services

Re:         AllianceBernstein
L.P. Commercial Paper Program

 

Ladies and Gentlemen:

 

This letter (herein after referred to as the “Agreement”) sets forth
the understanding between you and AllianceBernstein L.P., formerly known as
Alliance Capital Management L.P. (the “Partnership”), whereby you have agreed
to act as depositary for the safekeeping of certain notes of the Partnership
which may be offered and sold in transactions exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended, in the United
States commercial paper market (the “Commercial Paper Notes”), as issuing agent
on behalf of the Partnership in connection with the issuance of the Commercial
Paper Notes and as paying agent to undertake certain obligations to make
payments in respect of the Commercial Paper Notes, and amends and restates the
Issuing and Paying Agency Agreement, dated as of March 12, 2001, between
Bankers Trust Company and the Partnership. You have executed or will promptly
hereafter execute a Letter of Representations (the “Letter of Representations”,
which term shall include the

 

 

Procedures referred to therein)
with the Partnership and The Depository Trust Company (“DTC”) and a Certificate
Agreement (the “Certificate Agreement”) with DTC which establish or will
establish, among other things, the procedures to be followed by you in
connection with the issuance and custody of Commercial Paper Notes in book-entry
form.

 

1.     Appointment
of Agent.  The Partnership hereby
appoints you and you hereby agree to act, on the terms and conditions specified
herein and in the Letter of Representations and Certificate Agreement, as
custodian and issuing and paying agent for the Commercial Paper Notes. The
Commercial Paper Notes will, in the case of Commercial Paper Notes issued in
certificated form (“Certificated Notes”), be substantially in the form attached
hereto as Exhibit A and, in the case of Commercial Paper Notes issued in book-entry
form (“Book-Entry Notes”), be substantially in the forms attached to the Letter
of Representations. The Commercial Paper Notes will be sold through such
commercial paper dealers as the Partnership shall have notified you from time
to time (collectively, the “Dealer” or “Dealers”). The Dealers currently are
Banc of America Securities LLC and Merrill Lynch Money Markets Inc.

 

2.     Supply
of Commercial Paper Notes.  The
Partnership will from time to time furnish you with an adequate supply of
Commercial Paper Notes, which shall be Book-Entry Notes and/or Certificated
Notes, as the Partnership in its sole and absolute discretion considers
appropriate. Certificated Notes shall be serially numbered and shall have been
executed by manual or facsimile signature of an Authorized Representative (as
hereafter defined), with the principal amount, payee, date of issue, maturity
date, amount of interest (if an interest-bearing Commercial Paper Note) and
maturity value left blank. Book-Entry Notes shall be represented by one or more
master notes which shall be executed by manual or facsimile signature by an
Authorized Representative in accordance with the Letter of Representations.
Pending receipt of

 

2

 

instructions pursuant to this
Agreement, you will hold the Commercial Paper Notes in safekeeping for the
account of the Partnership or DTC, as the case may be, in accordance with your
customary practice and the requirements of the Certificate Agreement. The
Certificated Notes shall be printed on a manifold that will produce one
original and three non-negotiable copies.

 

3.     Authorized
Representatives.  From time to time
the Partnership will furnish you with a certificate, substantially in the form
attached hereto as Exhibit B, certifying the incumbency and specimen signatures
of officers or agents of the Partnership authorized to execute Commercial Paper
Notes on behalf of the Partnership by manual or facsimile signature and/or to
take other action hereunder on behalf of the Partnership (each an “Authorized
Representative”). Until you receive a subsequent incumbency certificate of the
Partnership, you are entitled to rely on the last such certificate delivered to
you for purposes of determining the Authorized Representatives. You shall not
have any responsibility to the Partnership to determine by whom or by what
means a facsimile signature may have been affixed on the Commercial Paper
Notes, or to determine whether any facsimile or manual signature is genuine, if
such facsimile or manual signature resembles the specimen signature(s) filed
with you by a duly authorized officer of the Partnership. Any Commercial Paper
Note bearing the manual or facsimile signature of a person who is an Authorized
Representative on the date such signature is affixed shall be binding on the
Partnership after the authentication thereof by you notwithstanding that such
person shall have died or shall have otherwise ceased to hold his office on the
date such Commercial Paper Note is countersigned or delivered to you.

 

4.     Completion,
Authentication and Delivery of Commercial Paper Notes.  (a) Instructions for the issuance of
Commercial Paper Notes will be given via a transmission through

 

3

 

an instruction and reporting
communication service (“Noteline Direct”), if available, or by telephone,
confirmed in writing (which may be by facsimile) within twenty-four hours
either by an Authorized Representative, or by any officer or employee of a
Dealer who has been designated by an Authorized Representative in writing to
you as a person authorized to give such instructions hereunder (each an “Authorized
Dealer Representative”), provided that instructions may be given in writing if
the Noteline Direct system is unavailable or is inoperative. Upon receipt of
instructions as described in the preceding sentence, you will withdraw the
necessary Commercial Paper Note(s) from safekeeping and, in accordance with
such instructions, shall, (i) in the case of Book-Entry Notes, cause the
issuance of such Book-Entry Notes in the manner set forth in, and take such
other actions as are required by, the Letter of Representations and the
Certificate Agreement, or (ii) in the case of Certificated Notes:

 

(1)  complete each Certificated Note as to principal amount
(which shall not be less than $250,000), payee, date of issue, maturity date
(which shall not be more than 270 days from the date of issue), amount of
interest (if any) and maturity value; and

 

(2)  manually countersign each Certificated Note by any one
of your officers or employees duly authorized and designated for this purpose;
and

 

(3)  deliver the Certificated Note(s) to the appropriate
Dealer or its agent within the Borough of Manhattan, City and State of New
York, which delivery shall be against receipt for payment as herein provided or
as otherwise provided in such instructions. If such instructions do not provide
for such receipt, such Dealer shall nevertheless pay the purchase price for the
Certificated Note in accordance with Paragraph 5 hereof. Of the three non-negotiable
copies of each Commercial Paper Note, two shall be retained by you and one
shall be sent promptly to the Partnership.

 

4

 

(b)  Instructions given via the system must be entered by 12:00
p.m. for physical issuance and 1:00 p.m. for book-entry issuance,
New York time, and instructions delivered by telephone or in writing must be
received by you by 1:00 p.m., New York time, if the Commercial Paper
Note(s) are to be delivered the same day. Telephone instructions shall be
confirmed in writing the same day.

 

(c)  The Partnership understands that although you have been
instructed to deliver Commercial Paper Notes against payment, delivery of
Certificated Notes will, in accordance with the custom prevailing in the
commercial paper market, be made before receipt of payment in immediately
available funds. Therefore, once you have delivered a Certificated Note to a
Dealer or its agent as provided in Paragraph 4(a)(3) hereof, the Partnership
shall bear the risk that a Dealer or its agent fails to remit payment for the
Certificated Note to you. It is understood that each delivery of Commercial
Paper Notes hereunder shall be subject to the rules of the New York Clearing
House in effect at the time of such delivery.

 

(d)  Except as may otherwise be provided in the Letter of
Representations, if at any time the Partnership instructs you to cease issuing
Certificated Notes and to issue only Book-Entry Notes, you agree that all
Commercial Paper Notes will be issued as Book-Entry Notes and that no
Certificated Notes shall be exchanged for Book-Entry Notes unless and until you
have received written instructions from an Authorized Representative (any such
instructions from an Authorized Dealer Representative shall not be sufficient
for this purpose) to the contrary.

 

(e)  Notwithstanding any contrary instructions received from
the Partnership or an Authorized Representative, you shall cease completing,
authenticating, issuing and delivering Commercial Paper Notes, if, following
the issuance of any Commercial Paper Notes, the aggregate principal amount of
outstanding Commercial Paper Notes would exceed the authorized

 

5

 

amount of $800,000,000, or such
other amount as may be authorized by the Partnership from time to time and
confirmed to you in writing.

 

5.     Noteline
Direct

 

The Partnership acknowledges that it is granted a personal,
non-transferable and non-exclusive right to use the instruction and reporting
communication service Noteline Direct to transmit through the Noteline Direct
system instructions made pursuant to Section 4 hereof. The Partnership may, by
separate agreement between itself and one or more of its Dealers, authorize the
Dealer to directly access Noteline Direct for the purposes of transmitting
instructions to you or obtaining reports with respect to the Commercial Paper
Notes.

 

The Partnership acknowledges that (a) some or all of the services
utilized in connection with Noteline Direct are furnished by Digital
Transactions Inc. (“DTI”), Dynamic Microprocessor Associates Inc. (“DMA”) and Deutsche
Bank National Trust Company, (b) Noteline Direct is provided to the Partnership
“AS IS” without warranties or representations of any kind whatsoever by DTI,
DMA or you, and (c) Noteline Direct is proprietary and confidential property
disclosed to the Partnership in confidence and only on the terms and conditions
and for purposes set forth in this Agreement.

 

By this Agreement, the Partnership acquires no title, ownership or
sublicensing rights whatsoever in Noteline Direct or in any trade secret,
trademark, copyright or patent of yours, DTI, or DMA now or to become
applicable to Noteline Direct. The Partnership may not transfer, sublicense,
assign, rent, lease, convey, modify, translate, convert to a programming
language, decompile, disassemble, recirculate, republish or redistribute
Noteline Direct for any purpose without the prior written consent of you and,
where necessary, DTI and DMA.

 

6

 

In the event (a) any action is taken or threatened which may result in
a disclosure or transfer of Noteline Direct or any part thereof, other than as
authorized by this Agreement, or (b) the use of any trademark, trade name,
service mark, service name, copyright or patent of yours, DTI or DMA by the
Partnership amounts to unfair competition, or otherwise constitutes a possible
violation of any kind, then you and/or DTI and/or DMA shall have the right to
take any and all action deemed necessary to protect your rights in Noteline
Direct, and to avoid the substantial and irreparable damage which would result
from such disclosure, transfer or use, including the immediate termination of
the Partnership’s right to use Noteline Direct.

 

To permit the use of Noteline Direct to issue instructions and/or
obtain reports with respect to the Commercial Paper Notes, you will supply the
Partnership with an identification number and initial passwords. From time to
time thereafter, the Partnership may change its passwords directly through
Noteline Direct. The Partnership will keep all information relating to its
identification number and passwords strictly confidential and will be
responsible for the maintenance of adequate security over its customer
identification number and passwords. For security purposes, the Partnership
should change its passwords frequently (at least once a year).

 

Instructions transmitted over Noteline Direct and received by you
pursuant to Section 4 hereof accompanied by the Partnership’s identification
number and the passwords, shall be deemed conclusive evidence that such
instructions are correct and complete and that the issuance or redemption of
the Commercial Paper Note(s) directed thereby has been duly authorized by the
Partnership.

 

6.     Proceeds
of Sale of the Commercial Paper Notes.  Prior to the execution and delivery of this
Agreement, you have established an account designated in the Partnership’s name
(the “Note Account”). On each day on which a Dealer or its agent receives
Commercial Paper Notes

 

7

 

(whether through the facilities
of DTC in the manner set forth in the Letter of Representations or by delivery
in accordance with Paragraph 4(a)(3) hereof), it shall pay the purchase price
for such Commercial Paper Notes in immediately available funds for credit to
the Note Account. From time to time upon telephonic or written instructions
received by you from an Authorized Representative, you agree to transfer
immediately available funds from the Note Account to any bank or trust company
for the Partnership’s account.

 

7.     Payment
of Matured Commercial Paper Notes.  By
1:00 p.m., New York time, on the date that any Commercial Paper Notes are
scheduled to mature, there shall have been transferred to you for deposit in
the Note Account immediately available funds at least equal to the amount of
Commercial Paper Notes maturing on such date. When any matured Commercial Paper
Note is presented to you for payment by the holder thereof (which may, in the
case of Book-Entry Notes held by you in custody pursuant to the Certificate
Agreement, be DTC or a nominee of DTC), payment shall be made from and charged
to the Note Account to the extent funds sufficient to effect such payment are
available in said account.

 

8.     Reliance
on Instructions.  Except as otherwise
set forth herein, you shall incur no liability to the Partnership in acting
hereunder upon telephonic or other instructions contemplated hereby which the
recipient thereof reasonably believed in good faith to have been given by an
Authorized Representative or an Authorized Dealer Representative, as the case
may be. In the event a discrepancy exists with respect to such instructions,
the telephonic instructions as recorded by you will be deemed the controlling
and proper instructions, unless such instructions are required by this
Agreement to be in writing or have not been recorded by you as contemplated by
the next sentence. It is understood that all telephonic instructions will be
recorded by you and the Partnership hereby consents to such recording.

 

8

 

9.     Cancellation
of Commercial Paper Notes.  You will
in due course cancel Certificated Note(s) presented for payment and return them
to the Partnership. After payment of any matured Book-Entry Note, you shall
annotate your records to reflect the face amount of Book-Entry Notes
outstanding in accordance with the Letter of Representations. Promptly upon the
written request of the Partnership, you agree to cancel and return to the
Partnership all unissued Commercial Paper Notes in your possession at the time
of such request.

 

10.   Notices;
Addresses.  (a) All communications by
or on behalf of the Partnership or a Dealer, by telephone, Noteline Direct or
otherwise, relating to the completion, delivery or payment of the Commercial
Paper Note(s) are to be directed to your Commercial Paper Issuance Unit of the
Corporate Trust and Agency Services (or such other department or division which
you shall specify in writing to the Partnership and the Dealers). The
Partnership will send all Commercial Paper Notes to be completed and delivered
by you to your Commercial Paper Issuance Unit of the Corporate Trust and Agency
Services (or such other department or division as you shall specify in writing
to the Partnership). You will advise the Partnership and the Dealers from time
to time in writing of the individuals generally responsible for the
administration of this Agreement and will from time to time certify incumbency
and specimen signatures of officers or employees authorized to countersign
Commercial Paper Notes.

 

(b)  Notices and other communications hereunder shall (except
to the extent otherwise expressly provided) be in writing (which may be by
facsimile) and shall be addressed as follows, or to such other address as the
party receiving such notice shall have previously specified to the party
sending such notice: if to the Partnership, at:

 

9

 

(a)           concerning
daily issuance of

Commercial Paper Notes:

 

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

 

Attention: Paul Anzalone, Corporate
Finance/Treasury

Telecopy No.: (212) 823-3250

 

Attention: Lillian Mondo, Corporate
Finance/Treasury

Telecopy No.: (212) 823-3250

 

(b)           concerning
all other matters:

 

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

 

Attention: Robert H. Joseph, Jr. 

Telecopy No.: (212) 969-2386

 

Attention: John J. Onofrio, Jr.

Telecopy No.: (212) 823-3250

 

Attention: Laurence E. Cranch, Esq. 

Telecopy No.: (212) 969-1334

 

if to you, at:

 

Deutsche Bank National Trust Company 

Global Transaction Banking

Trust & Securities Services

25 DeForest Avenue

Mail Stop: SUM01-0105

Summit, New Jersey 07901

Attention: David Contino, Assistant Vice President

Telecopy No.: (732) 578-4635

 

Notices shall be deemed delivered when received at the address
specified above. For purposes of this paragraph, “when received” shall mean
actual receipt (i) of an electronic communication by a telex machine,
telecopier or Noteline Direct specified in or pursuant to this Agreement; (ii)
or

 

10

 

an oral communication by any person answering the telephone at your
office specified in subparagraph 10(a) hereof and otherwise at the office of
the individual or department specified in or pursuant to this Agreement; or
(iii) of a written communication hand-delivered at the office specified in or
pursuant to this Agreement.

 

11.   Additional
Information.  Upon the request of the
Partnership given at any time and from time to time, you shall promptly provide
the Partnership with information with respect to the Commercial Paper Note(s)
issued and paid hereunder. Such request shall be in written form and, to the
extent known by the Partnership, shall include the serial number, principal
amount, date of issue, maturity date and amount of interest, if any, of each
Commercial Paper Note which has been issued or paid by you and for which the
request is being made.

 

12.   Representations.

 

(a)  This Agreement and the Commercial Paper Notes have been
duly authorized and this Agreement when executed and the Commercial Paper Notes
when issued in accordance with instructions, will be valid and binding
obligations of the Partnership, enforceable in accordance with their terms,
subject to any applicable law relating to or affecting indemnification for
liability under the securities laws and except to the extent such
enforceability may be limited by bankruptcy, insolvency or other similar laws
affecting creditors rights generally and the applicability of equitable
principles thereto whether in a proceeding of law or in equity.

 

(b)  The offer and sale of each Commercial Paper Note issued
under this Agreement will be exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended.

 

13.   Liability.
 Neither you nor your officers, employees
or agents shall be liable for any act or omission hereunder, except in the case
of negligence or willful misconduct. Your duties and obligations and those of
your officers and employees shall be determined by the express

 

11

 

provisions of this Agreement,
the Letter of Representations and the Certificate Agreement (including the
documents referred to therein), and they shall not be liable except for the
performance of such duties and obligations as are specifically set forth herein
and therein, and no implied covenants shall be read into any such document
against them. Neither you nor your officers or employees shall be required to
ascertain whether any issuance or sale of Commercial Paper Note(s) (or any
amendment or termination of this Agreement) has been duly authorized or is in
compliance with any other agreement to which the Partnership is a party
(whether or not you are a party to such other agreement).

 

14.   Indemnification.
 The Partnership agrees to indemnify and
hold you and your officers, employees and agents harmless from and against all
liabilities, claims, damages, costs and expenses (including reasonable legal
fees and expenses) relating to or arising out of their actions or inactions in
connection with this Agreement, except to the extent they are caused by your or
their negligence or willful misconduct. This indemnity shall survive
termination of this Agreement.

 

15.   Benefit
of Agreement.  This Agreement is
solely for the benefit of the parties hereto, and no other person shall acquire
or have any right under or by virtue hereof.

 

16.   Termination.
 (a) This Agreement may be terminated at
any time by either you or the Partnership by 15 days prior written notice to
the other, provided that you agree to continue acting as Issuing and Paying
Agent hereunder until such time as your successor has been selected and has
entered into an agreement with the Partnership to that effect. Such termination
shall not affect the respective liabilities of the parties hereunder arising
prior to such termination.

 

12

 

(b)  If no successor has been appointed within 15 days, then
you have the right to petition a court of competent jurisdiction for the
appointment of a successor Issuing and Paying Agent. You shall incur no expense
or liability in connection with any such appointment.

 

17.   Governing
Law.  (a) This Agreement is to be
delivered and performed in, and shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the laws of the State
of New York.

 

(b)  Each party irrevocably and unconditionally submits to
the exclusive jurisdiction of the United States Federal courts located in the
Borough of Manhattan and the courts of the State of New York located in the
Borough of Manhattan.

 

18.   Fees.
 You shall receive fees from the
Partnership for acting as Issuing and Paying Agent hereunder in such amounts as
you and the Partnership shall agree from time to time in writing.

 

13

 

Please indicate your agreement with and acceptance of the foregoing
terms and provisions by signing the counterpart of this letter enclosed
herewith and returning it to the Partnership.

 

	
   

  	
  ALLIANCEBERNSTEIN L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J. Onofrio, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John J. Onofrio, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and

  
	
   

  	
   

  	
   

  	
  Treasurer

  
					

 

 

Agreed to and accepted

this 3rd day of May, 2006

 

DEUTSCHE BANK NATIONAL TRUST COMPANY

as Issuing and Paying Agent

 

 

	
  By:

  	
  /s/ David Contino

  	
   

  
	
   

  	
  Name:

  	
  David Contino

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Rodney Gaughan

  	
   

  
	
   

  	
  Name:

  	
  Rodney Gaughan

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
				

 

14EXHIBIT
10.58

 

 

 

 

 

 

 

THE CORPORATE
PLAN 

FOR RETIREMENTSM

 

FIDELITY BASIC PLAN DOCUMENT NO.
02

 

 

 

 

 

 

 

 

THE CORPORATE
PLAN

FOR RETIREMENT(SM)

	
  Preamble.

  	
   

  	
   

  
	
  Article 1.
  Adoption Agreement.

  	
   

  	
   

  
	
  Article 2.
  Definitions.

  	
   

  	
   

  
	
  2.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  2.02.

  	
   

  	
  Pronouns

  	
   

  	
  11

  
	
  2.03.

  	
   

  	
  Special Effective Dates

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 3.
  Service.

  	
   

  	
   

  
	
  3.01.

  	
   

  	
  Crediting of Eligibility Service

  	
   

  	
  11

  
	
  3.02.

  	
   

  	
  Re-Crediting of Eligibility Service Following
  Termination of Employment.

  	
   

  	
  12

  
	
  3.03.

  	
   

  	
  Crediting of Vesting Service

  	
   

  	
  12

  
	
  3.04.

  	
   

  	
  Application of Vesting Service to a Participant’s
  Account Following a Break in Vesting Service

  	
   

  	
  12

  
	
  3.05.

  	
   

  	
  Service with Predecessor Employer

  	
   

  	
  12

  
	
  3.06.

  	
   

  	
  Change in Service Crediting

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 4.
  Participation.

  	
   

  	
   

  
	
  4.01.

  	
   

  	
  Date of Participation

  	
   

  	
  13

  
	
  4.02.

  	
   

  	
  Transfers Out of Covered Employment

  	
   

  	
  13

  
	
  4.03.

  	
   

  	
  Transfers Into Covered Employment

  	
   

  	
  14

  
	
  4.04.

  	
   

  	
  Resumption of Participation Following Reemployment

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 5.
  Contributions.

  	
   

  	
   

  
	
  5.01.

  	
   

  	
  Contributions Subject to Limitations

  	
   

  	
  14

  
	
  5.02.

  	
   

  	
  Compensation Taken into Account in Determining
  Contributions

  	
   

  	
  14

  
	
  5.03.

  	
   

  	
  Deferral Contributions

  	
   

  	
  15

  
	
  5.04.

  	
   

  	
  Employee Contributions

  	
   

  	
  15

  
	
  5.05.

  	
   

  	
  No Deductible Employee Contributions

  	
   

  	
  15

  
	
  5.06.

  	
   

  	
  Rollover Contributions

  	
   

  	
  15

  
	
  5.07.

  	
   

  	
  Qualified Nonelective Employer Contributions

  	
   

  	
  16

  
	
  5.08.

  	
   

  	
  Matching Employer Contributions

  	
   

  	
  18

  
	
  5.09.

  	
   

  	
  Qualified Matching Employer Contributions

  	
   

  	
  18

  
	
  5.10.

  	
   

  	
  Nonelective Employer Contributions

  	
   

  	
  18

  
	
  5.11.

  	
   

  	
  Vested Interest in Contributions

  	
   

  	
  20

  
	
  5.12.

  	
   

  	
  Time for Making Contributions

  	
   

  	
  20

  
	
  5.13.

  	
   

  	
  Return of Employer Contributions

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 6.
  Limitations on Contributions.

  	
   

  	
   

  
	
  6.01.

  	
   

  	
  Special Definitions

  	
   

  	
  21

  
	
  6.02.

  	
   

  	
  Code Section 402(g) Limit on Deferral
  Contributions

  	
   

  	
  28

  
	
  6.03.

  	
   

  	
  Additional Limit on Deferral Contributions

  	
   

  	
  28

  
	
  6.04.

  	
   

  	
  Allocation and Distribution of “Excess Contributions”

  	
   

  	
  .29

  
	
  6.05.

  	
   

  	
  Reductions in Deferral Contributions to Meet Code
  Requirements

  	
   

  	
  30

  
	
  6.06.

  	
   

  	
  Limit on Matching Employer Contributions and
  Employee Contributions

  	
   

  	
  30

  
	
  6.07.

  	
   

  	
  Allocation, Distribution, and Forfeiture of “Excess
  Aggregate Contributions”

  	
   

  	
  31

  
	
  6.08

  	
   

  	
  Aggregate Limit on “Contribution Percentage Amounts”
  and “Includable Contributions”

  	
   

  	
  31

  
	
  6.09.

  	
   

  	
  Income or Loss on Distributable Contributions

  	
   

  	
  32

  
	
  6.10.

  	
   

  	
  Deemed Satisfaction of “ADP” Test

  	
   

  	
  32

  
									

 

 i
 

 

 

	
  6.11.

  	
   

  	
  Deemed Satisfaction of “ACP” Test With Respect to
  Matching Employer Contributions

  	
   

  	
  33

  
	
  6.12.

  	
   

  	
  Code Section 415 Limitations

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 7.
  Participants’ Accounts.

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Individual Accounts

  	
   

  	
  37

  
	
  7.02.

  	
   

  	
  Valuation of Accounts

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 8.
  Investment of Contributions.

  	
   

  	
   

  
	
  8.01.

  	
   

  	
  Manner of Investment

  	
   

  	
  37

  
	
  8.02.

  	
   

  	
  Investment Decisions

  	
   

  	
  38

  
	
  8.03.

  	
   

  	
  Participant Directions to Trustee

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 9.
  Participant Loans.

  	
   

  	
   

  
	
  9.01.

  	
   

  	
  Special Definitions

  	
   

  	
  39

  
	
  9.02.

  	
   

  	
  Participant Loans

  	
   

  	
  39

  
	
  9.03.

  	
   

  	
  Separate Loan Procedures

  	
   

  	
  40

  
	
  9.04.

  	
   

  	
  Availability of Loans

  	
   

  	
  40

  
	
  9.05.

  	
   

  	
  Limitation on Loan Amount

  	
   

  	
  40

  
	
  9.06.

  	
   

  	
  Interest Rate

  	
   

  	
  40

  
	
  9.07.

  	
   

  	
  Level Amortization

  	
   

  	
  40

  
	
  9.08.

  	
   

  	
  Security

  	
   

  	
  40

  
	
  9.09.

  	
   

  	
  Transfer and Distribution of Loan Amounts from
  Permissible Investments

  	
   

  	
  41

  
	
  9.10.

  	
   

  	
  Default

  	
   

  	
  41

  
	
  9.11.

  	
   

  	
  Effect of Termination Where Participant has
  Outstanding Loan Balance

  	
   

  	
  41

  
	
  9.12

  	
   

  	
  Deemed Distributions Under Code Section 72(p)

  	
   

  	
  41

  
	
  9.13.

  	
   

  	
  Determination of Account Value Upon Distribution
  Where Plan Loan is Outstanding

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 10.
  In-Service Withdrawals.

  	
   

  	
   

  
	
  10.01.

  	
   

  	
  Availability of In-Service Withdrawals

  	
   

  	
  42

  
	
  10.02.

  	
   

  	
  Withdrawal of Employee Contributions

  	
   

  	
  42

  
	
  10.03.

  	
   

  	
  Withdrawal of Rollover Contributions

  	
   

  	
  42

  
	
  10.04.

  	
   

  	
  Age 591¤2
  Withdrawals

  	
   

  	
  43

  
	
  10.05.

  	
   

  	
  Hardship Withdrawals

  	
   

  	
  43

  
	
  10.06.

  	
   

  	
  Preservation of Prior Plan In-Service Withdrawal
  Rules

  	
   

  	
  44

  
	
  10.07.

  	
   

  	
  Restrictions on In-Service Withdrawals

  	
   

  	
  45

  
	
  10.08.

  	
   

  	
  Distribution of Withdrawal Amounts

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 11.
  Right to Benefits.

  	
   

  	
   

  
	
  11.01.

  	
   

  	
  Normal or Early Retirement

  	
   

  	
  45

  
	
  11.02.

  	
   

  	
  Late Retirement

  	
   

  	
  46

  
	
  11.03.

  	
   

  	
  Disability Retirement

  	
   

  	
  46

  
	
  11.04.

  	
   

  	
  Death

  	
   

  	
  46

  
	
  11.05.

  	
   

  	
  Other Termination of Employment

  	
   

  	
  46

  
	
  11.06.

  	
   

  	
  Application for Distribution

  	
   

  	
  47

  
	
  11.07.

  	
   

  	
  Application of Vesting Schedule Following Partial
  Distribution

  	
   

  	
  47

  
	
  11.08.

  	
   

  	
  Forfeitures

  	
   

  	
  47

  
	
  11.09.

  	
   

  	
  Application of Forfeitures

  	
   

  	
  48

  
	
  11.10.

  	
   

  	
  Reinstatement of Forfeitures

  	
   

  	
  48

  
	
  11.11.

  	
   

  	
  Adjustment for Investment Experience

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 12.
  Distributions.

  	
   

  	
   

  
	
  12.01.

  	
   

  	
  Restrictions on Distributions

  	
   

  	
  49

  
	
  12.02.

  	
   

  	
  Timing of Distribution Following Retirement or
  Termination of Employment

  	
   

  	
  49

  
															

 

 ii
 

 

 

	
  12.03.

  	
   

  	
  Participant Consent to Distribution

  	
   

  	
  49

  
	
  12.04.

  	
   

  	
  Required Commencement of Distribution to
  Participants

  	
   

  	
  50

  
	
  12.05.

  	
   

  	
  Required Commencement of Distribution to
  Beneficiaries

  	
   

  	
  50

  
	
  12.06.

  	
   

  	
  Whereabouts of Participants and Beneficiaries

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 13.
  Form of Distribution.

  	
   

  	
   

  
	
  13.01.

  	
   

  	
  Normal Form of Distribution Under Profit
  Sharing Plan

  	
   

  	
  52

  
	
  13.02.

  	
   

  	
  Cash Out Of Small Accounts

  	
   

  	
  52

  
	
  13.03.

  	
   

  	
  Minimum Distributions

  	
   

  	
  53

  
	
  13.04.

  	
   

  	
  Direct Rollovers

  	
   

  	
  54

  
	
  13.05.

  	
   

  	
  Notice Regarding Timing and Form of
  Distribution

  	
   

  	
  54

  
	
  13.06.

  	
   

  	
  Determination of Method of Distribution

  	
   

  	
  55

  
	
  13.07.

  	
   

  	
  Notice to Trustee

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 14.
  Superseding Annuity Distribution Provisions.

  	
   

  	
   

  
	
  14.01.

  	
   

  	
  Special Definitions

  	
   

  	
  55

  
	
  14.02.

  	
   

  	
  Applicability

  	
   

  	
  56

  
	
  14.03.

  	
   

  	
  Annuity Form of Payment

  	
   

  	
  56

  
	
  14.04.

  	
   

  	
  “Qualified Joint and Survivor Annuity” and
  “Qualified Preretirement Survivor Annuity Requirements”. 

  	
   

  	
  57

  
	
  14.05.

  	
   

  	
  Waiver of the “Qualified Joint and Survivor Annuity”
  and/or “Qualified Preretirement Survivor Annuity Rights”

  	
   

  	
  57

  
	
  14.06.

  	
   

  	
  Spouse’s Consent to Waiver

  	
   

  	
  58

  
	
  14.07.

  	
   

  	
  Notice Regarding “Qualified Joint and Survivor
  Annuity”

  	
   

  	
  58

  
	
  14.08.

  	
   

  	
  Notice Regarding “Qualified Preretirement Survivor
  Annuity”

  	
   

  	
  58

  
	
  14.09.

  	
   

  	
  Former Spouse

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 15.
  Top-Heavy Provisions.

  	
   

  	
   

  
	
  15.01.

  	
   

  	
  Definitions

  	
   

  	
  59

  
	
  15.02.

  	
   

  	
  Application

  	
   

  	
  61

  
	
  15.03.

  	
   

  	
  Minimum Contribution

  	
   

  	
  61

  
	
  15.04.

  	
   

  	
  Modification of Allocation Provisions to Meet
  Minimum Contribution Requirements

  	
   

  	
  62

  
	
  15.05.

  	
   

  	
  Adjustment to the Limitation on Contributions and
  Benefits

  	
   

  	
  63

  
	
  15.06.

  	
   

  	
  Accelerated Vesting

  	
   

  	
  64

  
	
  15.07.

  	
   

  	
  Exclusion of Collectively-Bargained Employees

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 16.
  Amendment and Termination.

  	
   

  	
   

  
	
  16.01.

  	
   

  	
  Amendments by the Employer that do Not Affect
  Prototype Status

  	
   

  	
  64

  
	
  16.02.

  	
   

  	
  Amendments by the Employer that Affect Prototype
  Status

  	
   

  	
  65

  
	
  16.03.

  	
   

  	
  Amendment by the Mass Submitter Sponsor and the
  Prototype Sponsor

  	
   

  	
  65

  
	
  16.04.

  	
   

  	
  Amendments Affecting Vested and/or Accrued Benefits

  	
   

  	
  65

  
	
  16.05.

  	
   

  	
  Retroactive Amendments

  	
   

  	
  66

  
	
  16.06.

  	
   

  	
  Termination

  	
   

  	
  66

  
	
  16.07.

  	
   

  	
  Distribution upon Termination of the Plan

  	
   

  	
  66

  
	
  16.08.

  	
   

  	
  Merger or Consolidation of Plan; Transfer of Plan
  Assets

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 17.
  Amendment and Continuation of Prior Plan;

  	
   

  	
   

  
	
  Transfer of
  Funds to or from Other Qualified Plans.

  	
   

  	
   

  
	
  17.01.

  	
   

  	
  Amendment and Continuation of Prior Plan

  	
   

  	
  67

  
	
  17.02.

  	
   

  	
  Transfer of Funds from an Existing Plan

  	
   

  	
  68

  
	
  17.03.

  	
   

  	
  Acceptance of Assets by Trustee

  	
   

  	
  69

  
	
  17.04.

  	
   

  	
  Transfer of Assets from Trust

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 18.
  Miscellaneous.

  	
   

  	
   

  
	
  18.01.

  	
   

  	
  Communication to Participants

  	
   

  	
  70

  
	
  18.02.

  	
   

  	
  Limitation of Rights

  	
   

  	
  70

  
	
  18.03.

  	
   

  	
  Nonalienability of Benefits

  	
   

  	
  71

  
														

 

 iii
 

 

 

	
  18.04.

  	
   

  	
  Qualified Domestic Relations Orders Procedures

  	
   

  	
  71

  
	
  18.05.

  	
   

  	
  Additional Rules for Paired Plans

  	
   

  	
  72

  
	
  18.06.

  	
   

  	
  Application of Plan Provisions in Multiple Employer
  Plans

  	
   

  	
  72

  
	
  18.07.

  	
   

  	
  Veterans Reemployment Rights

  	
   

  	
  72

  
	
  18.08.

  	
   

  	
  Facility of Payment

  	
   

  	
  73

  
	
  18.09.

  	
   

  	
  Information between Employer and Trustee

  	
   

  	
  73

  
	
  18.10.

  	
   

  	
  Effect of Failure to Qualify Under Code

  	
   

  	
  73

  
	
  18.11.

  	
   

  	
  Directions, Notices and Disclosure

  	
   

  	
  73

  
	
  18.12.

  	
   

  	
  Governing Law

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 19.
  Plan Administration.

  	
   

  	
   

  
	
  19.01.

  	
   

  	
  Powers and Responsibilities of the Administrator

  	
   

  	
  74

  
	
  19.02.

  	
   

  	
  Nondiscriminatory Exercise of Authority

  	
   

  	
  74

  
	
  19.03.

  	
   

  	
  Claims and Review Procedures

  	
   

  	
  74

  
	
  19.04.

  	
   

  	
  Named Fiduciary

  	
   

  	
  75

  
	
  19.05.

  	
   

  	
  Costs of Administration

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 20.
  Trust Agreement.

  	
   

  	
   

  
	
  20.01.

  	
   

  	
  Acceptance of Trust Responsibilities

  	
   

  	
  75

  
	
  20.02.

  	
   

  	
  Establishment of Trust Fund

  	
   

  	
  75

  
	
  20.03.

  	
   

  	
  Exclusive Benefit

  	
   

  	
  76

  
	
  20.04.

  	
   

  	
  Powers of Trustee 

  	
   

  	
  76

  
	
  20.05.

  	
   

  	
  Accounts

  	
   

  	
  77

  
	
  20.06.

  	
   

  	
  Approval of Accounts

  	
   

  	
  77

  
	
  20.07.

  	
   

  	
  Distribution from Trust Fund

  	
   

  	
  78

  
	
  20.08.

  	
   

  	
  Transfer of Amounts from Qualified Plan

  	
   

  	
  78

  
	
  20.09.

  	
   

  	
  Transfer of Assets from Trust

  	
   

  	
  78

  
	
  20.10.

  	
   

  	
  Separate Trust or Fund for Existing Plan Assets

  	
   

  	
  78

  
	
  20.11.

  	
   

  	
  Self-Directed Brokerage Option

  	
   

  	
  79

  
	
  20.12.

  	
   

  	
  Employer Stock Investment Option

  	
   

  	
  80

  
	
  20.13.

  	
   

  	
  Voting; Delivery of Information

  	
   

  	
  85

  
	
  20.14.

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  85

  
	
  20.15.

  	
   

  	
  Reliance by Trustee on Other Persons

  	
   

  	
  86

  
	
  20.16.

  	
   

  	
  Indemnification by Employer

  	
   

  	
  86

  
	
  20.17.

  	
   

  	
  Consultation by Trustee with Counsel

  	
   

  	
  86

  
	
  20.18.

  	
   

  	
  Persons Dealing with the Trustee

  	
   

  	
  86

  
	
  20.19.

  	
   

  	
  Resignation or Removal of Trustee

  	
   

  	
  86

  
	
  20.20.

  	
   

  	
  Fiscal Year of the Trust

  	
   

  	
  87

  
	
  20.21.

  	
   

  	
  Discharge of Duties by Fiduciaries

  	
   

  	
  87

  
	
  20.22.

  	
   

  	
  Amendment

  	
   

  	
  87

  
	
  20.23.

  	
   

  	
  Plan Termination

  	
   

  	
  87

  
	
  20.24.

  	
   

  	
  Permitted Reversion of Funds to Employer

  	
   

  	
  88

  
	
  20.25.

  	
   

  	
  Governing Law

  	
   

  	
  88

  
											

 

 iv

 

Preamble.

This prototype plan
consists of three parts:  (1) an
Adoption Agreement that is a separate document incorporated by reference into
this Basic Plan Document; (2) this Basic Plan Document; and (3) a Trust
Agreement that is a part of this Basic Plan Document and is found in Article 20.
Each part of the prototype plan contains substantive provisions that are
integral to the operation of the plan. The Adoption Agreement is the means by
which an adopting Employer elects the optional provisions that shall apply
under its plan. The Basic Plan Document describes the standard provisions
elected in the Adoption Agreement. The Trust Agreement describes the powers and
duties of the Trustee with respect to plan assets.

The prototype plan is intended to qualify under Code Section 401(a).
Depending upon the Adoption Agreement completed by an adopting Employer, the
prototype plan may be used to implement a money purchase pension plan, a profit
sharing plan, or a profit sharing plan with a cash or deferred arrangement
intended to qualify under Code Section 401(k).

Article 1. Adoption Agreement.

Article 2. Definitions.

2.01. Definitions. Wherever used herein, the following
terms have the meanings set forth below, unless a different meaning is clearly
required by the context:

(a) “Account” means an account established for
the purpose of recording any contributions made on behalf of a Participant and
any income, expenses, gains, or losses incurred thereon. The Administrator
shall establish and maintain sub-accounts within a Participant’s Account as
necessary to depict accurately a Participant’s interest under the Plan.

(b) “Active Participant”
means any Eligible Employee who has met the requirements of Article 4 to participate in the Plan and who may be entitled to
receive allocations under the Plan.

(c) “Administrator”
means the Employer adopting this Plan, as listed in Subsection 1.02(a) of
the Adoption Agreement, or any other person designated by the Employer in
Subsection 1.01(c) of the Adoption Agreement.

(d) “Adoption Agreement”
means Article 1, under which the Employer establishes and adopts, or
amends the Plan and Trust and designates the optional provisions selected by
the Employer, and the Trustee accepts its responsibilities under Article 20.
The provisions of the Adoption Agreement shall be an integral part of the Plan.

(e) “Annuity Starting Date” means the first day
of the first period for which an amount is payable as an annuity or in any
other form permitted under the
Plan.

(f) “Basic Plan Document”
means this Fidelity prototype plan document, qualified with the National Office
of the Internal Revenue
Service as Basic Plan Document No. 02.

(g) “Beneficiary” means the person or persons
(including a trust) entitled under Section 11.04 or 14.04 to receive
benefits under the Plan upon the

 1
 

 

 

death of a Participant; provided, however, that for
purposes of Section 13.03 such term shall be applied in accordance with
Code Section 401(a)(9) and the regulations there under.

(h) “Break in Vesting
Service” means a 12-consecutive-month period beginning on an Employee’s Severance Date or any anniversary thereof in which the
Employee is not credited with an Hour of Service.

Notwithstanding the foregoing, the following special rules apply
in determining whether an Employee who is on leave has incurred a Break in
Vesting Service:

(1) If an individual is absent from work because
of “maternity/ paternity leave” beyond the first anniversary of his Severance
Date, the 12-consecutive-month period beginning on the individual’s
Severance Date shall not constitute a Break in Vesting Service. For purposes of
this paragraph, “maternity/paternity leave” means a leave of absence (A) by
reason of the pregnancy of the individual, (B) by reason of the birth of a
child of the individual, (C) by reason
of the placement
of a child with the individual in connection with the adoption of such
child by the individual, or (D) for purposes of caring for a child for the
period beginning immediately following such
birth or placement.

(2) If an individual is
absent from work because of “FMLA leave” and returns
to employment with the Employer or a Related Employer following such “FMLA leave”, he
shall not incur a Break in Vesting Service during any 12-consecutive-month period beginning on
his Severance Date or anniversaries thereof
in which he is absent because of such “FMLA leave”. For purposes of this paragraph, “FMLA leave”
means an approved leave of absence pursuant to the Family and Medical Leave Act
of 1993.

(i) “Code” means the
Internal Revenue Code of 1986, as amended from time to time.

(j) “Compensation” means
wages as defined in Code Section 3401(a) and all other payments of
compensation to an Eligible Employee by the Employer (in the course of the
Employer’s trade or business) for services to the Employer while employed as an
Eligible Employee for which the Employer is required to furnish the Eligible
Employee a written statement under Code Sections 6041(d) and 6051(a)(3).
Compensation must be determined without regard to any rules under Code Section 3401
(a) that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in Code Section 3401(a)(2)).

For any Self-Employed Individual, Compensation means Earned
Income; provided, however, that if the Employer elects to exclude specified
items from Compensation, such Earned Income shall be adjusted in a similar
manner so that it is equivalent under regulations issued under Code Section 414(s) to
Compensation for Participants who are not Self-Employed Individuals.

Compensation shall generally be based on the amount
actually paid to the Eligible Employee during the Plan Year or, for purposes of
Articles 5 (and, for Plan Years beginning prior to January 1, 2003, Article 15)
so elected by the Employer in Subsection 1.05(c) of the Adoption
Agreement, during that portion of the Plan Year during which the Eligible
Employee is an Active Participant. Notwithstanding the preceding sentence,
Compensation for purposes of Section 6.12 (Code Section 415
Limitations) shall be based on the

 2
 

 

amount actually paid or
made available to the Participant during the Limitation Year.

If the initial Plan Year of a new plan consists of
fewer than 12 months, calculated from the Effective Date listed in Subsection
1.01(g)(1) of the Adoption Agreement through the end of such initial Plan
Year, Compensation for such initial Plan Year shall be determined as follows:

(1) If the Plan is a
profit sharing plan, for purposes of allocating Nonelective Employer
Contributions under Section 1.11 of the Adoption Agreement (other than
Nonelective Employer Contributions made in accordance with the Safe Harbor
Nonelective Employer Contributions Addendum to the Adoption Agreement) and
determining Highly Compensated Employees under Subsection 2.01(z), the initial
Plan Year shall be the 12-month period ending on the last day of the Plan
Year.

(2) For purposes of
Section 6.12 (Code Section 415 Limitations) where the Limitation Year
is based on the Plan Year, the Limitation Year shall be the 12-month
period ending on the last day of the Plan Year.

(3) For all other
purposes, the initial Plan Year shall be the period from the Effective Date
listed in Subsection 1.01(g)(1) of the Adoption Agreement through the end
of the initial Plan Year.

The annual Compensation of each
Active Participant taken into account for determining benefits provided
under the Plan for any determination period shall
not exceed the annual Compensation limit under ode Section 401(a)(17) as
in effect on the first day of the determination period. This limit shall be
adjusted by the Secretary to reflect increases in the cost of living, as
provided in Code Section 401(a)(17)(B); provided, however, that the dollar
increase in effect on January 1 of any calendar year is effective for
determination periods beginning in such calendar year . If a Plan determines Compensation over a determination period that
contains fewer than 12 calendar months (a “short determination period”), then
the Compensation limit for such “short determination period” is equal to
the Compensation limit for the calendar year in which the “short determination period” begins multiplied by the
ratio obtained by dividing the number of full months in the “short determination period” by 12; provided, however,
that such proration shall not apply if there is a “short determination
period” because (i) the Employer elected in Subsection 1.05 (c) of
the Adoption Agreement to determine contributions based
only on Compensation paid during the portion of the Plan Year during
which an individual was an Active Participant, (ii) an Employee is covered
under the Plan less than a full Plan Year, or (iii) Deferral
Contributions and/or Matching Employer Contributions are contributed for each pay
period during the Plan Year and are based on Compensation for that pay period.

(k) “Contribution
Period” means the period for which Matching Employer and Nonelective Employer
Contributions are made and calculated. The Contribution Period for additional
Matching Employer Contributions, as described in Subsection 1.10(b) of the
Adoption Agreement and Nonelective Employer Contributions is the Plan Year. The
Contribution Period for basic Matching Employer Contributions, as described in
Subsection 1.10(a) of the Adoption Agreement, is the period specified by the
Employer in Subsection 1.10(c) of the Adoption Agreement.

 3
 

 

 

 

(l) “Deferral
Contribution” means any contribution made to the Plan by the Employer in
accordance with the provisions of Section 5.03.

(m) “Early Retirement Age means the early
retirement age specified in “Subsection 1.13(b) of the Adoption Agreement,
if any.

(n) “Earned Income”
means the net earnings of a Self-Employed Individual derived from the trade or
business with respect to which the Plan is established and for which the
personal services of such individual are a material income-providing factor,
excluding any items not included in gross income and the deductions allocated
to such items, except that net earnings shall be determined with regard to the
deduction allowed under Code Section 164 (f ), to the extent applicable to
the Employer. Net earnings shall be reduced by contributions of the Employer to
any qualified plan, to the extent a deduction is allowed to the Employer for
such contributions under Code Section 404.

(o) “Effective Date”
means the effective date specified by the Employer in Subsection 1.01(g)(1) or
(2) of the Adoption Agreement with respect to the Plan, f this is a new
plan, or with respect to the amendment and restatement, if this is an amendment
and restatement of the Plan. The Employer may select special Effective Dates
with respect to specified Plan provisions, as set forth in Section (a) of
the Special Effective Dates Addendum to the Adoption Agreement. In the event
that another plan is merged into and made a part of the Plan, the effective
date of the merger shall be reflected in Section (b) of the Special
Effective Dates Addendum to the Adoption Agreement. 

If this is an amendment and restatement of the Plan,
and the Plan was not amended prior to the effective date specified by the
Employer in Subsection 1.01
(g)(2) of the Adoption Agreement to comply with the requirements of the
Acts specified in the Snap Off Addendum to the Adoption Agreement, the
effective dates specified in such Snap Off Addendum shall apply with respect to
those provisions specified therein. Such effective dates may be earlier than
the date specified in Subsection 1.01(g)(2) of the Adoption Agreement.

(p) “Eligibility
Computation Period” means each 12-consecutive-month period beginning with
an Employee’s Employment Commencement Date and each anniversary thereof.

(q) “Eligibility Service”
means an Employee’s service that is taken into account in determining his
eligibility to participate in the Plan as may be required under Subsection 1.04
(b) of the Adoption Agreement. Eligibility Service shall be credited in
accordance with Article 3.

(r) “Eligible Employee”
means any Employee of the Employer who is in the class of Employees eligible to
participate in the Plan. The Employer must specify in Subsection 1.04(c) of
the Adoption Agreement any Employee or class of Employees not eligible to
participate in the Plan. If Article 1 of t he Employer’s Plan is a
Non-Standardized Adoption Agreement, regardless of the Employer’s selection in
Subsection 1.04 (c) of the Adoption Agreement, the following Employees are
automatically excluded from eligibility to participate in the Plan:

(1) any individual who is a signatory to a
contract, letter of agreement, or other document that acknowledges his status
as an

 4
 

 

independent contractor not entitled to benefits under the Plan
or who is not otherwise
classified by the Employer as a common law employee and with respect to whom the
Employer does not withhold income taxes and file Form W-2 (or any
replacement Form), with the Internal Revenue Service and does not remit Social Security payments to the
Federal government, even if such
individual is later adjudicated to be a common law employee; and

(2) any Employee who is
a resident of Puerto Rico.

If the Employer elects to exclude collective
bargaining employees from the eligible class, the exclusion applies to any
Employee of the Employer included in a unit of Employees covered by an
agreement which the Secretary of Labor finds to be a collective bargaining
agreement between employee representatives and one or more employers, unless
the collective bargaining agreement requires the Employee to be covered under
the Plan. The term “employee representatives” does not include any organization
more than half the members of which are owners, officers, or executives of the
Employer.

If the Employer does not
elect to exclude Leased Employees from the eligible class, contributions or
benefits provided by the leasing organization which are attributable to services performed for the Employer shall be treated
as provided by the Employer and there shall be no duplication of benefits under
this Plan.

(s) “Employee” means any
common law employee of the Employer or a Related Employer, any Self-Employed
Individual, and any Leased Employee. Notwithstanding the foregoing, a Leased
Employee shall not be considered an Employee if Leased Employees do not
constitute more than 20 percent of the Employer’s non-highly compensated
work-force (taking into account all Related Employers) and the Leased Employee
is covered by a money purchase pension plan maintained by the leasing
organization and providing (1) a nonintegrated employer contribution rate
of at least 10 percent of compensation, as defined for purposes of Code Section 415(c)(3),
but including amounts contributed pursuant to a salary reduction agreement
which are excludable from gross income under Code Section 125, 132(f)(4),
402(e)(3), 402(h) or 403(b), (2) full and immediate vesting, and (3) immediate
participation by each employee of the leasing organization.

(t) “Employee
Contribution” means any after-tax contribution made by an Active Participant to
the Plan.

(u) “Employer” means the
employer named in Subsection 1.02 (a) of the Adoption Agreement and any
Related Employer included as an Employer under this Subsection 2.01 (u). If
Article 1 of the Employer’s Plan is a Standardized Adoption Agreement, the
term “Employer” includes all Related Employers; provided, however, that if an
employer becomes a Related Employer as a result of an asset or stock
acquisition, merger or other similar transaction, the term “Employer” shall not
include such employer for periods prior to the earlier of (1) the date as
of which Subsection 1.02(b) of the Adoption Agreement is amended to name
such employer or (2) the first day of the second Plan Year beginning after
the date of such transaction. If Article 1 of the Employer’s Plan is a
Non-Standardized Adoption Agreement, the term “Employer” includes only those
Related Employers designated in Subsection 1.02(b) of the Adoption
Agreement.

 5
 

 

 

If the organization or other entity named in the
Adoption Agreement is a sole proprietor or a professional corporation and the
sole proprietor of such proprietorship or the sole shareholder of the professional
corporation dies, then the legal representative of such sole proprietor or
shareholder shall be deemed to be the Employer until such time as, through the
disposition of such sole proprietor’s or sole shareholder’s estate or
otherwise, any organization or other entity succeeds to the interests of the
sole proprietor in the proprietorship or the sole shareholder in the
professional corporation. The legal representative of a sole proprietor or
shareholder shall be (1) the person appointed as such by the sole
proprietor or shareholder prior to his death under a legally enforceable power
of attorney, or, if none, (2) the executor or administrator of the sole
proprietor’s or shareholder’s estate.

If one of the Employers designated in Subsection
1.02(b) of the Adoption Agreement is not a Related Employer, the term
“Employer” includes such unRelated Employer and the provisions of
Section 18.06 shall apply.

(v) “Employment Commencement Date” means the date
on which an Employee first performs an Hour of Service.

(w) “Entry Date” means the date specified by the
Employer in Subsection 1.04 (d) or (e) of the Adoption Agreement as
of which an Eligible Employee who has met the applicable eligibility
requirements begins to participate in the Plan. The Employer may specify
different Entry Dates for purposes of eligibility to participate in the Plan by
(1) making Deferral Contributions and (2) receiving allocations of
Matching and/or Nonelective Employer Contributions.

(x) “ERISA” means the Employee Retirement Income
Security Act of 1974, as from time to time amended.

(y) “Fund Share” means
the share, unit, or other evidence of ownership in a Permissible Investment.

(z) “Highly Compensated
Employee” means both highly compensated active Employees and highly compensated
former Employees.

A highly compensated active Employee includes any
Employee who performs service for the Employer during the “determination year”
and who (1) at any time during the “determination year” or the “look-back
year” was a five percent owner or (2) received Compensation from the
Employer during the “look-back year” in excess of $80,000 (as adjusted pursuant
to Code Section 415 (d)) and, if elected by the Employer in
Section 1.06 of the Adoption Agreement, was a member of the top-paid group
for such year.

For this purpose, the “determination year” shall be
the Plan Year. The “look-back year” shall be the twelve-month period
immediately preceding the “determination year”, unless the Employer has elected
in Section 1.06 of the Adoption Agreement to make the “look-back year” the
calendar year beginning within the preceding Plan Year.

A highly compensated former Employee includes any
Employee who separated from service (or was deemed to have separated) prior to
the “determination year”, performs no service for the Employer during the
“determination year”, and was a highly compensated active Employee for either
the separation year or any “determination year” ending on or after the
Employee’s 55th birthday,

 6
 

 

 

 

as determined under the rules in effect for determining
Highly Compensated Employees for such separation year or “determination year”. 

The determination of who is a Highly Compensated
Employee, including the determinations of the number and identity of Employees
in the top-paid group, shall be made in accordance with Code Section 414(q) and
the Treasury Regulations
issued there under.

For purposes of this Subsection 2.01(z), Compensation
shall include amounts that are not includable in the gross income of an
Employee under a salary
reduction agreement by reason of the application of Code Section 125, 132(f)(4),
402(e)(3), 402(h), or 403(b). 

(aa) “Hour of Service”, with
respect to any individual, means:

(1) Each hour for which
the individual is directly or indirectly paid, or entitled to payment, for the performance of duties for the Employer
or a Related Employer, each such
hour to be credited to the individual for the Eligibility Computation
Period in which the duties were performed;

(2) Each hour for which
the individual is directly or indirectly paid, or entitled to payment, by the Employer or a Related Employer (including payments made or due from a trust fund or insurer to which the Employer
contributes or pays premiums) on
account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to
vacation, holiday, illness, incapacity, disability, layoff, jury duty, military
duty, or leave of absence, each such hour to be credited to the individual for
the Eligibility Computation Period in which such period of time occurs, subject to the following rules:

(A) No more than 501 Hours of Service shall be
credited under this paragraph (2) on account of any single continuous
period during which the individual performs no duties, unless the individual
performs no duties because of military duty, the individual’s employment rights
are protected by law, and the individual returns to employment with the
Employer or a Related Employer during the period that his employment rights are
protected under Federal law;

(B) Hours of Service
shall not be credited under this paragraph (2) for a payment which solely
reimburses the individual for medically related expenses, or which is made or
due under a plan maintained solely for the purpose of complying with applicable
worker’s compensation, unemployment compensation or disability insurance laws;
and

(C) If the period during
which the individual performs no duties falls within two or more Eligibility
Computation Periods and if the payment made on account of such period is not
calculated on the basis of units of time, the Hours of Service credited with
respect to such period shall be allocated between not more than the first two
such Eligibility Computation Periods on any reasonable basis consistently
applied with respect to similarly situated individuals;

(3) Each
hour not counted under paragraph (1) or (2) for which he
would have been scheduled to work
for the Employer or a Related Employer during the period that he is absent from
work because of military duty, provided

 7
 

 

 

the individual’s employment
rights are protected under Federal law and the individual returns to work with the Employer or a Related Company
during the period that his employment rights are protected, each such hour to
be credited to the individual for the Eligibility Computation Period for which
he would have been scheduled to work; and

(4) Each hour not
counted under paragraph (1), (2), or
(3) for which back pay, irrespective of mitigation of damages, has been
either awarded or agreed to be paid by the Employer or a Related Employer,
shall be credited to the individual for the Eligibility Computation Period to
which the award or agreement pertains rather than the Eligibility Computation
Period in which the award, agreement, or payment is made.

For purposes of paragraphs (2) and (4) above,
Hours of Service shall be calculated in accordance with the provisions of Section 2530.200b-2(b) of
the Department of Labor regulations, which are incorporated herein by
reference.

Notwithstanding any other provision of this Subsection
to the contrary, the Employer may elect to credit Hours of Service in
accordance with any of the equivalencies set forth in paragraphs (d), (e), or (f) of
Department of Labor Regulations Section 2530 .200b-3.

(bb) “Inactive Participant” means any individual who
was an Active Participant, but is no longer an Eligible Employee and who has an
Account under the Plan.

(cc) “Leased Employee” means
any individual who provides services to the Employer or a Related Employer (the
“recipient”) but is not
otherwise an employee of the recipient if (1) such services are provided
pursuant to an agreement between the recipient and any other person (the “leasing
organization”), (2) such individual has performed services for the
recipient (or for the recipient and any related persons within the meaning of
Code Section 414(n)(6)) on a substantially full-time basis for at least
one year, and (3) such services are performed under primary direction of
or control by the recipient. The determination of who is a Leased Employee
shall be made in accordance with any rules and regulations issued by the
Secretary of the Treasury or his delegate.

(dd) “Limitation Year” means
the 12-consecutive-month period designated by the Employer in Subsection
1.01(f) of the Adoption Agreement. If no other Limitation Year is
designated by the Employer, the Limitation Year shall be the calendar year. All
qualified plans of the Employer and any Related Employer must use the same
Limitation Year. If the Limitation Year is amended to a different 12-consecutive-month
period, the new Limitation Year must begin on a date within the Limitation Year
in which the amendment is made.

(ee) “Matching Employer
Contribution” means any contribution made by the Employer to the Plan in
accordance with Section 5.08 or 5.09 on account of an Active Participant’s
Deferral Contributions.

(ff) “Mass Submitter Sponsor”
means Fidelity Management & Research Company or its successor.

(gg) “Nonelective Employer
Contribution” means any contribution made by the Employer to the Plan in
accordance with Section 5.10.

 8
 

 

(hh) “Non-Highly Compensated
Employee” means any Employee who is not a Highly Compensated Employee.

(ii) “Normal Retirement
Age” means the normal retirement age specified in Subsection 1.13 (a) of
the Adoption Agreement. If the Employer enforces a mandatory retirement age in
accordance with Federal law, the Normal Retirement Age is the lesser of that
mandatory age or the age specified in Subsection 1.13(a) of the Adoption
Agreement.

(jj) “Participant” means any individual who is
either an Active Participant or an Inactive Participant.

(kk) “Permissible Investment”
means the investments specified by the Employer as available for investment of
assets of the Trust and agreed to by the Trustee and the Prototype Sponsor. The
Permissible Investment s under the Plan shall be listed in the Service
Agreement.

(ll) “Plan” means the
plan established by the Employer in the form of the prototype plan, as set
forth herein as a new plan or as an amendment to an existing plan, by executing
the Adoption Agreement, together with any and all amendments hereto.

(mm) “Plan Year” means
the 12-consecutive-month period ending on the date designated by the
Employer in Subsection 1.01(d) of the Adoption Agreement, except that the
initial Plan Year of a new Plan may consist of fewer than 12 months, calculated
from the Effective Date listed in Subsection 1.01(g)(1) of the Adoption
Agreement through the end of such initial Plan Year, in which event Compensation
for such initial Plan Year shall be treated as provided inSubsection 2.01(j).

(nn) “Prototype Sponsor”
means Fidelity Management & Research Company or its successor.

(oo) “Qualified Matching
Employer Contribution” means any contribution made by the Employer to the Plan
on account of Deferral Contributions or Employee Contributions made by or on
behalf of Active Participants in accordance with Section 5.09, that may be
included in determining whether the Plan meets the “ADP” test described in
Section 6.03.

(pp) “Qualified Nonelective
Employer Contribution” means any contribution made by the Employer to the Plan
on behalf of Non-Highly Compensated Employees in accordance with
Section 5.07, that may be included in determining whether the Plan meets
the “ADP” test described in Section 6.03 or the “A CP” test described in
Section 6.06.

(qq) “Reemployment
Commencement Date” means the date on which an Employee who terminates
employment with the Employer and all Related Employers first performs an Hour
of Service following such termination of employment.

(rr) “Related Employer” means any employer other than
the Employer named in Subsection 1.02(a) of the Adoption Agreement if the
Employer and such other employer are
members of a controlled group of corporations (as defined in Code
Section 414(b)) or an affiliated service group (as defined in Code Section 414(m)),
or are trades or businesses (whether or not incorporated) which are under
common control (as defined in Code Section 414(c)), or such other employer
is required to be aggregated with the Employer pursuant to

 9
 

 

 

regulations issued under Code Section 414(o);
provided, however, that if Article 1 of the Employer’s Plan is a
Standardized Adoption Agreement, for purposes of Subsection 1.02(b) of the Adoption Agreement, the term
“Related Employer” shall not include any employer that becomes a Related
Employer as a result of an asset or stock acquisition, merger or other similar
transaction with respect to any period prior to the earlier of (1) the
date as of which Subsection 1.02(b) of the Adoption Agreement is amended
to name such employer or (2) the first
day of the second Plan Year beginning after the date of such transaction.

(ss) “Required Beginning
Date” means:

(1) for a Participant who is not a five percent
owner, April 1 of the calendar year following the calendar year in which
occurs the later of (i) the Participant’s retirement or (ii) the
Participant’s attainment of age 701¤2; provided,
however, that a Participant may elect to have his Required Beginning Date
determined without regard to the provisions of clause (i).

(2) for a Participant who is a five percent
owner, April 1 of the calendar year following the calendar year in which
the Participant attains age 701¤2.

Once the Required Beginning Date of a five percent
owner or a Participant who has elected to have his Required Beginning Date
determined in accordance with the provisions of
Section 2.01(ss)(1)(ii) has occurred, such Required Beginning Date
shall not be re-determined, even if the Participant ceases to be a five percent
owner in a subsequent year or continues in employment with the Employer or a
Related Employer.

For purposes of this
Subsection 2.01(ss), a Participant is treated as a five percent owner if such
Participant is a five percent owner as defined in Code Section 416(i) (determined
in accordance with Code Section 416 but without regard to whether the Plan
is top-heavy) at any time during the Plan Year ending with or within the
calendar year in which such owner attains age 701¤2.

(tt) “Rollover Contribution”
means any distribution from a qualified plan (or an individual retirement
account holding only assets allocable to a distribution from a qualified plan)
that an Employee elects to contribute to the Plan in accordance with the
provisions of Section 5.06.

(uu) “Self-Employed
Individual” means an individual who has Earned Income for the taxable year from
the Employer or who would have had Earned Income but for the fact that the
trade or business had no net profits for the taxable year, including, but not
limited to, a partner in a partnership, a sole proprietor, a member in a
limited liability company or a shareholder in a subchapter Scorporation.

(vv) “Service Agreement”
means the agreement between the Employer and the Prototype Sponsor (or an agent
or affiliate of the Prototype Sponsor) relating to the provision of investment
and other services to the Plan and shall include any addendum to the agreement
and any other separate written agreement between the Employer and the Prototype
Sponsor (or an agent or affiliate of the Prototype Sponsor) relating to the
provision of services to the Plan.

 10
 

 

 

 

(ww) “Severance Date” means
the earlier of (i) the date an Employee retires, dies, quits, or is
discharged from employment with the Employer and all Related Employers or (ii) the
12-month anniversary of the date on which the Employee was otherwise
first absent from employment; provided, however, that if an individual
terminates or is absent from employment with the Employer and all Related
Employers because of military duty, such individual shall not incur a Severance
Date if his employment rights are protected under Federal law and he returns to
employment with the Employer or a Related Employer within the period during
which he retains such employment rights, but, if he does not return to such
employment within such period, his Severance Date shall be the earlier of (1) the
anniversary of the date his absence commenced or (2) the last day of the
period during which he retains such employment rights.

(xx) “Trust” means the trust
created by the Employer in accordance with the provisions of Section 20.01.

(yy) “Trust Agreement” means
the agreement between the Employer and the Trustee, as set forth in Article 20,
under which the assets of the Plan are held, administered, and managed.

(zz) “Trustee” means Fidelity
Management Trust Company or its successor. The term Trustee shall include any
delegate of the Trustee as may be provided in the Trust Agreement.

(aaa) “Trust Fund” means the
property held in Trust by the Trustee for the Accounts of Participants and
their Beneficiaries.

(bbb) “Vesting Service” means an Employee’s service
that is taken into account in determining his vested interest in his Matching
Employer and Nonelective Employer Contributions Accounts as may be required
under Section 1.15 of the Adoption Agreement. Vesting Service shall be credited
in accordance with Article 3.

2.02. Pronouns. Pronouns used in the Plan are in the
masculine gender but include the feminine gender unless the context clearly
indicates otherwise.

2.03. Special Effective Dates. Some provisions of the
Plan are only effective beginning as of a specified date or until a specified
date. Any such special effective
dates are specified within Plan text where applicable and are exceptions to the
general Plan Effective Date as defined in Section 2.01(o).

Article 3. Service.

3.01. Crediting of Eligibility Service. If the
Employer has selected an Eligibility Service requirement in Subsection 1.04(b) of
the Adoption Agreement for
an Eligible Employee to become an Active Participant, Eligibility Service shall
be credited to an Employee as follows:

(a) If the Employer
has selected the one or two year(s) of Eligibility Service requirement
described in Subsection 1.04 (b)(1)(C) or (D) of the Adoption
Agreement, an Employee shall be credited with a year of Eligibility Service for
each Eligibility Computation Period during which the Employee has been credited
with at least 1,000 Hours of Service.

 11

 

 

(b) If the Employer has selected the months of Eligibility Service
requirement described in Subsection 1.04(b)(1)(B) of the Adoption
Agreement, an Employee shall be credited with Eligibility Service for the
aggregate of the periods beginning with the Employee’s Employment Commencement
Date (or Reemployment Commencement Date) and ending on his subsequent Severance
Date; provided, however, that an Employee who has a Reemployment Date within
the 12-consecutive-month period following the earlier of the first date
of his absence or his Severance Date shall be credited with Eligibility Service
for the period between his Severance Date and his Reemployment Date. Months of
Eligibility Service shall be measured from the Employee’s Employment
Commencement Date or Reemployment Commencement Date to the coinciding date in
the applicable following month.

3.02. Re-Crediting of Eligibility Service Following Termination of
Employment. An Employee whose employment with the Employer and all
Related Employers terminates and who is subsequently reemployed by the Employer
or a Related Employer shall be re-credited upon reemployment with his
Eligibility Service earned prior to his termination of employment.

3.03. Crediting of Vesting Service. If the Plan
provides for Matching Employer and/or Nonelective Employer Contributions that
are not 100 percent vested when made, Vesting Service shall be credited to an
Employee for the aggregate of the periods beginning with the Employee’s
Employment Commencement Date (or Reemployment Commencement Date) and ending on
his subsequent Severance Date; provided, however, that n a Employee who has a
Reemployment Date within the 12 consecutive month period following the earlier
of the first date of his absence or his Severance Date shall be credited with
Vesting Service for the period between his Severance Date and his Reemployment
Date. Fractional periods of a year shall be expressed in terms of days.

3.04. Application of Vesting Service to a Participant’s
Account Following a Break in Vesting Service. The following rules describe
how Vesting Service earned before and after a Break in Vesting Service shall be
applied for purposes of determining a Participant’s vested interest in his
Matching Employer and Nonelective Employer Contributions Accounts.

(a) If a Participant incurs five-consecutive Breaks in Vesting
Service, all years of Vesting Service earned by the Employee after such Breaks
in Service shall be disregarded in determining the Participant’s vested
interest in his Matching Employer and Nonelective Employer Contributions
Account balances attributable to employment before such Breaks in Vesting
Service. However, Vesting Service earned both before and after such Breaks in
Vesting Service shall be included in determining the Participant’s vested interest
in his Matching Employer and Nonelective Employer Contributions Ac count
balances attributable to employment after such Breaks in Vesting Service.

(b) If a Participant incurs fewer than five-consecutive Breaks in
Vesting Service, Vesting Service earned both before and after such Breaks in
Vesting Service shall be included in determining the Participant’s vested
interest in his Matching Employer and Nonelective Employer Contributions
Account balances attributable to employment both before and after such Breaks
in Vesting Service.

3.05. Service with Predecessor Employer. If the Plan
is the plan of a predecessor employer, an Employee’s Eligibility and Vesting
Service shall include

 12
 

 

 

years of service with such predecessor employer. In any case in which
the Plan is not the plan maintained by a predecessor employer, service for such
predecessor employer shall be treated as Eligibility and Vesting Service if so
specified in Section 1.16 of the Adoption Agreement.

3.06. Change in Service Crediting. If an amendment to
the Plan or a transfer from employment as an Employee covered under another
qualified plan maintained by the Employer or a Related Employer results in a
change in the method of crediting Eligibility and/or Vesting Service with
respect to a Participant between the Hours of Service crediting method set
forth in Section 2530.200b-2 of the Department of Labor Regulations
and the elapsed-time crediting method set forth in Section 1.410(a)-7
of the Treasury Regulations, each Participant with respect to whom the method
of crediting Eligibility and/or Vesting Service is changed shall be treated in
the manner set forth in Section 1.410(a)-7(f)(1) of the Treasury
Regulations which are incorporated herein by reference.

Article 4. Participation

4.01. Date of Participation. If the Plan is an
amendment and restatement of a prior plan, all Eligible Employees who were
active participants in the Plan immediately
prior to the Effective Date shall continue as Active Participants on the
Effective Date. All Eligible Employees who
are in the service of the Employer on the Effective Date (and, if this
is an amendment and restatement of a prior plan, were not active participants
in the prior plan immediately prior to the Effective Date) shall become Active
Participants on the date elected by the Employer in Subsection 1.04(f) of
the Adoption Agreement. Any other Eligible Employee shall become an Active
Participant in the Plan on the Entry Date coinciding
with or immediately following the date on which he first satisfies the eligibility
requirements set forth in Subsections 1.04(a) and 1.04(b) of the Adoption Agreement.

The Employer may elect different Eligibility Service
requirements for purposes of eligibility (a) to make Deferral
Contributions and (b) to receive Nonelective and /or Matching Employer Contributions. Any Eligibility Service requirement that the Employer
elects to apply in determining an Eligible Employee’s eligibility to make
Deferral Contributions shall also apply in determining an Eligible Employee’s
eligibility to make Employee Contributions,
if Employee Contributions are permitted under the Plan, and to receive
Qualified Nonelective Employer Contributions. If an Employer elects to have
different Eligibility Service requirements
apply, an Eligible Employee who has met the eligibility requirements with respect to certain contributions,
but who has not met the eligibility requirements with respect to other
contributions, shall become an Active Participant in accordance with the
provisions of the preceding paragraph, but only with respect to the
contributions for which he has met the eligibility requirements.

4.02. Transfers Out of Covered Employment . If any
Active Participant ceases to be an Eligible
Employee, but continues in the employ
of the Employer or a Related Employer, such Employee shall cease to be
an Active Participant, but shall continue as
an Inactive Participant until his entire Account balance is forfeited or
distributed. An Inactive Participant shall not be entitled to receive an allocation of contributions or forfeitures under
the Plan for the period that he is not an Eligible Employee and wages
and other payments made to him by the Employer or a Related Employer for
services other than as an Eligible Employee shall not be included in Compensation for purposes of determining the
amount and

 13
 

 

 

allocation of any contributions to the Account of such
Inactive Participant. Such Inactive Participant shall continue to receive
credit for Vesting Service completed during
the period that he continues in the employ of the Employer or a Related
Employer.

4.03. Transfers Into Covered Employment. If an
Employee who is not an Eligible Employee becomes an Eligible Employee, such
Eligible Employee shall become an Active Participant immediately as of his
transfer date if such Eligible Employee has already satisfied the eligibility
requirements and would have otherwise previously become an Active Participant
in accordance with Section 4.01. Otherwise, such Eligible Employee shall
become an Active Participant in accordance with Section 4.01.

Wages
and other payments made to an Employee prior to his becoming an Eligible Employee by the Employer or a Related Employer
for services other than as an Eligible Employee shall not be included in
Compensation for purposes of determining
the amount and allocation of any contributions to the Account of such Eligible
Employee.

4.04. Resumption of Participation Following
Reemployment. If a Participant who terminates
employment with the Employer and all Related Employers is reemployed as
an Eligible Employee, he shall again become an Active Participant on his Reemployment Date. Any other Employee who terminates employment with the Employer and
all Related Employers and is reemployed by the Employer or a Related Employer shall
become an Active Participant as provided in Section 4.01 or 4.03. Any distribution
which a Participant is receiving under the Plan at the time he is reemployed by the Employer or a Related Employer
shall cease except as otherwise required
under Section 12.04.

Article 5. Contributions.

5.01. Contributions Subject to Limitations. All
contributions made to the Plan under this Article 5 shall be subject to
the limitations contained in Article 6.

5.02. Compensation Taken into Account in Determining
Contributions. In determining the
amount or allocation of any contribution that is based on a percentage of Compensation, only Compensation
paid to a Participant for services rendered to the Employer while
employed as an Eligible Employee shall be taken into account. Except as
otherwise specifically provided in this Article 5, for purposes of
determining the amount and allocation of contributions under this Article 5, Compensation shall not include
reimbursements or other expense allowances, fringe benefits (cash and
non-cash), moving expenses, deferred compensation, welfare benefits, and any
items elected by the Employer with respect
to such contributions in Subsection 1.05(a) or (b), as applicable, of the Adoption
Agreement, but shall include amounts that are not includable in the gross income of the Participant under a salary
reduction agreement by reason of the application of Code Section 125,
132(f)(4), 402(e)(3), 402(h), 403(b), or 457 (b).

If the initial Plan Year of a
new plan consists of fewer than 12 months, calculated from the Effective Date
listed in Subsection 1.01(g)(1) of the Adoption
Agreement through the end of such initial Plan Year, except as otherwise provided
in this paragraph, Compensation for purposes of determining the amount and allocation
of contributions under this Article 5 for such initial Plan Year shall
include only Compensation for services during the period beginning on the Effective
Date listed in Subsection 1.01(g)(1) of the Adoption Agreement and

 14
 

 

 

ending on the last day of the initial Plan Year. Notwithstanding the
foregoing, if the Plan is a profit sharing plan, Compensation for purposes of
determining the amount and allocation of non-safe harbor Nonelective Employer
Contributions under this Article 5 for such initial Plan Year shall
include Compensation for the full 12-consecutive-month period ending on
the last day of the initial Plan Year.

5. 03. Deferral Contributions. If so provided by the
Employer in Subsection 1.07 (a) of the
Adoption Agreement, each Active Participant may elect to execute a salary
reduction agreement with the Employer to reduce his Compensation by a specified percentage or dollar amount, not
exceeding the percentage specified by the Employer in Subsection 1.07(a)(1) of
the Adoption Agreement, per payroll period, subject to any exceptions elected
by the Employer in Subsections 1.07 (a)(2) and
(3) of the Adoption Agreement, and equal to a whole number multiple of one percent. If elected by the
Employer in Subsection 1.07(a)(1)(A) of the Adoption Agreement, in
lieu of specifying a percentage of Compensation reduction, an Active
Participant may elect to reduce his Compensation by a specified dollar amount per payroll period, provided that such dollar amount may not exceed the percentage of Compensation specified
by the Employer in Subsection 1. 07(a)(1) of the Adoption
Agreement, subject to any exceptions elected by the Employer in Subsections 1.0
(a)(2) and (3) of the Adoption
Agreement. 7

An
Active Participant’s salary reduction agreement shall become effective on the
first day of the first payroll period for which the Employer can reasonably process the request, but
not earlier than the later of (a) the effective date of the provisions permitting Deferral
Contributions or (b) the date the Employer adopts such provisions. The Employer shall make a Deferral Contribution
on behalf of the Participant corresponding to the amount of said
reduction. Under no circumstances may a salary reduction agreement be adopted
retroactively.

An Active Participant may elect to change or discontinue the percentage
or dollar amount by which his Compensation
is reduced by notice to the Employer as provided in Subsection 1.07
(a)(1)(B) or (C) of the Adoption Agreement. Notwithstanding the Employer’s election in Subsection 1.07(a)(1)(B) or
(C) of the Adoption Agreement, if the Employer has elected one of
the safe harbor contributions in Subsection 1.10(a)(3) or
1.11(a)(3) of the Adoption Agreement, an Active Participant may elect to change or discontinue the percentage
or dollar amount by which his Compensation is reduced by notice to the
Employer within a reasonable period, as
specified by the Employer (but not less than 30 days), of receiving the notice described in Section 6.10.

5.04. Employee Contributions. If the Employer elected
to permit Deferral Contributions in Subsection 1.07(a) of the Adoption
Agreement and if so provided by the Employer
in Subsection 1.08(a)(1) of the Adoption Agreement, each Active
Participant may elect to make non-deductible Employee Contributions to the Plan
in accordance with the rules and
procedures established by the Employer and in an amount not less than
one percent of such Participant’s Compensation for the Plan Year.

5.05. No Deductible Employee Contributions. No
deductible Employee Contributions may be made to the Plan. Deductible Employee
Contributions made prior to January 1, 1987 shall be maintained in a
separate Account. No part of the deductible Employee Contributions Account
shall be used to purchase life insurance.

5.06. Rollover Contributions. An Eligible Employee who
is or was entitled to receive an eligible rollover distribution, as defined in
Code Section 402(c)(4)

 15
 

 

and Treasury Regulations issued there under, from a
qualified plan (or an individual retirement
account holding only assets attributable to a distribution from a
qualified plan) may elect to contribute all or any portion of such distribution
to the Trust directly from such qualified plan or individual retirement account
or within 60 days of receipt of such distribution to the Eligible Employee. Rollover Contributions shall
only be made in the form of cash, allowable Fund Shares, or, if and to the extent permitted by the
Employer with the consent of the Trustee, promissory notes evidencing a
plan loan to the Eligible Employee;
provided, however, that Rollover Contributions shall only be permitted
in the form of promissory notes if the Plan otherwise provides for loans.

An Eligible Employee who has
not yet become an Active Participant in the Plan in accordance with the
provisions of Article 4 may make a Rollover Contribution to the Plan. Such
Eligible Employee shall be treated as a Participant under the Plan for all
purposes of the Plan, except eligibility to have Deferral Contributions made on
his behalf and to receive an allocation of Matching Employer or Nonelective
Employer Contributions.

The Administrator shall
develop such procedures and require such information from Eligible Employees as
it deems necessary to ensure that amounts contributed under this Section 5.06
meet the requirements for tax-deferred rollovers established by this Section 5.06 and by Code Section 402(c).
No Rollover Contributions may be made to the Plan until approved by the
Administrator.

If a
Rollover Contribution made under this Section 5.06 is later determined by
the Administrator not to have met the requirements of this Section 5.06 or
of the Code
or Treasury regulations, the Trustee shall, within a reasonable time after such determination is made, and on
instructions from the Administrator, distribute to the Employee the amounts
then held in the Trust attributable to such
Rollover Contribution.

A Participant’s Rollover Contributions
Account shall be subject to the terms of the Plan, including Article 14,
except as otherwise provided in this Section 5.06.

Notwithstanding any other
provision of this Section 5.06, the Employer may direct the Trustee not to
accept Rollover Contributions.

5.07. Qualified Nonelective Employer Contributions.
The Employer may, in its discretion, make a Qualified Nonelective Employer
Contribution for the Plan Year in any amount necessary to satisfy or help to
satisfy the “ADP” test, described in Section 6.03, and/or the “ACP” test,
described in Section 6.06. Qualified Nonelective Employer Contributions
shall be made and allocated based on Participants’ “testing compensation”, as
defined in Subsection 6.01(t), rather than Compensation, as defined in
Subsection 2.01(j). Any Qualified Nonelective Employer Contribution shall be
allocated among the Accounts of Non-Highly Compensated Employees who are Active
Participants at any time during the Plan Year as follows:

(a) Unless the Employer elects the allocation formula in Subsection
1.09 (a)(1) of the Adoption Agreement, the Qualified Nonelective Employer
Contribution shall be allocated at the election of the Employer either

(1) in the ratio that each eligible Active Participant’s “testing
compensation”, as defined in Subsection 6.01(t), for the Plan Year bears

 16
 

 

 

to the total “testing compensation” paid to all eligible Active
Participants for the Plan Year; or

(2) as a uniform flat dollar amount for each eligible Active
Participant for the Plan Year.

(b) If the Employer elects the allocation formula in Subsection
1.09(a)(1) of the Adoption Agreement, the Qualified Nonelective Employer
Contribution shall be allocated as follows:

(1) The eligible Active
Participant with the least “testing compensation”, as defined in Subsection
6.01(t), for the Plan Year shall receive an allocation equal to the lowest of:

(A) the maximum amount that may be contributed on the eligible
Active Participant’s behalf under Code Section 415, taking into account
all other contributions made by or on behalf of the eligible Active Participant
to plans maintained by the Employer or a Related Employer that are includable
as “annual additions”, as defined in Subsection 6.01(b); or

(B) the full amount of the Qualified Nonelective
Employer Contribution.

(2) The eligible Active Participant with the next lowest “ testing
compensation”, as defined in Subsection 6.01(t), for the Plan Year shall
receive an allocation equal to the lowest of:

(A) the maximum amount that may be contributed on the eligible
Active Participant’s behalf under Code Section 415, taking into account
all other contributions made by or on behalf of the eligible Active Participant
to plans maintained by the Employer or a Related Employer that are includable
as “annual additions”, as define d in Subsection 6.01(b); or

(B) the balance of any Qualified Nonelective Employer Contribution
remaining after allocation is made as provided in Subsection 5.07 (b)(1) above.

(3) 
The allocation in
Subsection 5.07 (b)(2) shall be applied individually
to each remaining eligible Active Participant, in ascending order of “testing compensation”, until the
Qualified Nonelective Employer Contribution
is fully allocated. Once the Qualified Nonelective Employer Contribution
is fully allocated, no further allocation
shall be made to the remaining
eligible Active Participants.

Active Participants shall not
be required to satisfy any Hours of Service or employment requirement for the
Plan Year in order to receive an allocation of Qualified Nonelective Employer
Contributions.

Qualified Nonelective
Employer Contributions shall be distributable only in accordance with the
distribution provisions that are applicable to Deferral Contributions;
provided, however, that a Participant shall not be permitted to take a hardship
withdrawal of amounts credited to his Qualified Nonelective Employer
Contributions Account after the later of December 31, 1988 or the last day
of the Plan Year ending before July 1, 1989.

 17
 

 

 

5. 08. Matching Employer Contributions. If so provided
by the Employer in Section 1.10 of the Adoption Agreement, the Employer shall
make a Matching Employer Contribution on behalf of each eligible Active
Participant, as determined in accordance with Subsection 1.10(d) and Section 1.12
of the Adoption Agreement, who had Deferral
Contributions made on his behalf during
the Contribution Period. The amount of the Matching Employer
Contribution shall be determined in accordance with Subsection 1.10(a) and/or
(b) and/or the Safe Harbor Matching Employer Contribution Addendum to the
Adoption Agreement, as applicable.

5.09. Qualified Matching Employer
Contributions. If so provided by the Employer in Subsection 1.10(e) of
the Adoption Agreement, prior to making its Matching Employer Contribution (other than any safe harbor Matching Employer
Contribution) to the Plan, the Employer may designate all or a portion
of such Matching Employer Contribution as a
Qualified Matching Employer Contribution. The Employer shall notify the
Trustee of such designation at the time it makes its Matching Employer
Contribution. Qualified Matching Employer Contributions shall be distributable
only in accordance with the distribution provisions that are applicable to Deferral Contributions; provided,
however, that a Participant shall not be permitted to take a hardship
withdrawal of amounts credited to his Qualified
Matching Employer Contributions Account after the later of December 31, 1988
or the last day of the Plan Year ending before
July 1, 1989.

If the amount of an Employer’s
Qualified Matching Employer Contribution is determined based on a Participant’s
Compensation, and the Qualified Matching Employer
Contribution is necessary to satisfy the “ADP” test described in Section 6.03,
the compensation used in determining the amount of the Qualified Matching
Employer Contribution shall be “testing compensation”, as defined in Subsection
6.01(t). If the Qualified Matching Employer Contribution is not necessary to satisfy
the “ADP” test described in Section 6.03, the compensation used to
determine the amount of the Qualified Matching Employer Contribution shall be
Compensation as defined in Subsection 2.01(j), modified as provided in Section 5.02.

5.10. Nonelective Employer Contributions. If so
provided by the Employer in Section 1.11 of the Adoption Agreement, the
Employer shall make Nonelective Employer Contributions to the Trust in
accordance with Subsection 1.11(a) and/or (b) of the Adoption Agreement to
be allocated as follows:

(a) If the Plan is a money purchase pension plan or the Employer
has elected a fixed contribution formula, Nonelective Employer Contributions
shall be allocated among eligible Active Participants, as determined in
accordance with Subsection 1.11(c) and Section 1.12 of the Ad option
Agreement, in the manner specified in Subsection 1.11 (a) or the Safe
Harbor Nonelective Employer Contribution Addendum to the Adoption Agreement, as
applicable.

(b) If the Employer has elected a discretionary contribution
amount, Nonelective Employer Contributions shall be allocated among eligible
Active Participants, as determined in accordance with Subsection 1.11(c) and
Section 1.12 of the Adoption Agreement, as follows:

(1) If the non-integrated formula is elected
in Subsection 1.11(b)(1) of the Adoption Agreement, Nonelective Employer Contributions shall be allocated to eligible Active Participants in the
ratio that each eligible Active Participant’s Compensation bears to the total
Compensation paid to all eligible Active Participants for the Plan Year;
provided, however, that if the Plan is or
is deemed to be a “top-heavy plan”, as defined in

 18
 

 

 

Subsection 15.01(f), for any Plan Year, these
allocation provisions shall be modified as provided in Section 15.04; or

(2) If the integrated formula is elected in
Subsection 1.11(b)(2) of the Adoption Agreement, Nonelective Employer Contributions shall
be allocated in
the following steps:

(A) First, to each
eligible Active Participant in the same ratio that the sum of the eligible
Active Participant’s Compensation and “excess Compensation” for the Plan Year
bears to the sum of the Compensation and “excess Compensation” of all eligible
Active Participants for the Plan Year. This allocation as a percentage of the
sum of each eligible Active Participant’s Compensation and “excess
Compensation” shall not exceed the “permitted disparity limit”, as defined in
Section 1.11 of the Adoption Agreement.

Notwithstanding the
foregoing, if in any Plan Year an eligible Active Participant has reached the
“cumulative permitted disparity limit”, such eligible Active Participant shall
receive an allocation under this Subsection 5.10 (b)(2)(A) based on two
times his Compensation for the Plan Year, rather than the sum of his
Compensation and “excess Compensation” for the Plan Year. If an Active
Participant did not benefit under a qualified defined benefit plan or target
benefit plan for any Plan Year beginning on or after January 1, 1994, the
Active Participant shall have no “cumulative disparity limit “.

(B) Second, if any Nonelective Employer Contributions remain after
the allocation in Subsection 5.10 (b)(2)(A), the remaining Nonelective Employer
Contributions shall be allocated to each eligible Active Participant in the
same ratio that the eligible Active Participant’s Compensation for the Plan
Year bears to the total Compensation of all eligible Active Participants for
the Plan Year.

Notwithstanding
the provisions of Subsections 5.10(b)(2)(A) and (B) above , if
in any Plan Year an eligible Active Participant benefits under another qualified plan or simplified employee
pension, as defined in Code Section 408(k), that provides for or imputes
permitted disparity, the Nonelective Employer Contributions for the Plan Year
allocated to such eligible Active
Participant shall be in the ratio that his Compensation for the Plan
Year bears to the total Compensation paid to all eligible Active Participants.

If the Plan is or is deemed
to be a “top-heavy plan”, as defined in Subsection 15.01(f), for
any Plan Year, the allocation steps in Subsections
5.10(b)(2)(A) and (B) shall be modified as provided in Section 15.04.

For purposes of this
Subsection 5.10(b)(2), the following definitions shall apply:

(C) “Cumulative permitted disparity limit” means 35 multiplied by
the sum of an Active Participant’s annual permitted disparity fractions, as
defined in Sections 1.401(l)-5(b)(3) through (b)(7) of the
Treasury Regulations, attributable to the Active Participant’s total years of
service under the Plan and any other qualified plan

 19
 

 

 

or simplified employee pension, as defined in Code Section 408(k),
maintained by the Employer or a Related Employer. For each Plan Year commencing
prior to January 1, 1989, the annual permitted disparity fraction shall be
deemed to be one, unless the Participant never accrued a benefit under any
qualified plan or simplified employee pension maintained by the Employer or a
Related Employer during any such Plan Year. In determining the annual permitted
disparity fraction for any Plan Year, the Employer may elect to assume that the
full disparity limit has been used for such Plan Year.

(D) “Excess Compensation” means Compensation in excess of the “integration
level” specified by the Employer in Subsection 1.11 (b)(2) of the Adoption
Agreement.

5.11. Vested Interest in Contributions. A Participant’s
vested interest in the following sub-accounts shall be 100 percent:

(a) his Deferral Contributions Account; 

(b) his Qualified Nonelective Contributions Account; 

(c) his Qualified Matching Employer Contributions Account;

(d) his Nonelective Employer Contributions Account attributable to
Nonelective Employer Contributions made in accordance with the Safe Harbor
Nonelective Employer Contribution Addendum to the Adoption Agreement that are
intended to satisfy the safe harbor contribution requirement for deemed
satisfaction of the “ADP” test described in Section 6.03;

(e) his Matching Employer Contributions Account attributable to
Matching Employer Contributions made in accordance with the Safe Harbor Matching
Employer Contribution Addendum to the Adoption Agreement that are intended to
satisfy the safe harbor contribution requirement for deemed satisfaction of the
“ADP” test described in Section 6.03;

(f) his Rollover Contributions Account; 

(g) his Employee Contributions Account; and

(h) his deductible Employee Contributions Account.

A Participant’s vested
interest in his Nonelective Employer Contributions Account attributable to
Nonelective Employer Contributions other than those described in Subsection 5.11(d) above,
shall be determined in accordance with the vesting schedule elected by the
Employer in Subsection 1.15(b)(1) of the Adoption Agreement. A Participant’s
vested interest in his Matching Employer Contributions Account attributable to
Matching Employer Contributions other than those described in Subsection 5.11(e)
above, shall be determined in accordance with the vesting schedule elected by the Employer in
Subsection 1.15(b)(2) of the Adoption Agreement.

5.12. Time for Making Contributions. The Employer
shall pay its contribution for each Plan Year not later than the time
prescribed by law for filing the Employer’s Federal income tax return for the
fiscal (or taxable) year with or within which such Plan Year ends (including
extensions thereof).

 20
 

 

 

The Employer shall remit any
safe harbor Matching Employer Contributions made during a Plan Year quarter to
the Trustee no later than the last day of the immediately following Plan Year
quarter.

The Employer should remit
Employee Contributions and Deferral Contributions to the Trustee as of the earliest date on which such contributions
can reasonably be segregated from the Employer’s general assets, but not later
than the 15th business day of the calendar month following
the month in which such amount otherwise
would have been paid to the Participant, or within such other time frame as may
be determined by applicable regulation or legislation.

The Trustee shall have no
authority to inquire into the correctness of the amounts contributed and paid over to the Trustee, to determine
whether any contribution is payable under this Article 5, or to enforce,
by suit or otherwise, the Employer’s obligation, if any, to make a contribution
to the Trustee.

5.13. Return of Employer Contributions. The Trustee
shall, upon request by the Employer, return to the Employer the amount (if any)
determined under Section 20.24. Such amount shall be reduced by amounts
attributable thereto which have been credited to the Accounts of Participants
who have since received distribution s from the Trust, except to the extent
such amounts continue to be credited to such Participants’
Accounts at the time the amount is returned to the Employer. Such amount
shall also be reduced by the losses of the Trust attributable thereto, if and
to the extent such losses exceed the gains and income attributable thereto, but shall not be increased by
the gains and income of the Trust attributable thereto, if and to the
extent such gains and income exceed the losses
attributable thereto. To the extent such gains exceed losses, the gains
shall be forfeited and applied as provided in Section 11.09. In no event
shall the return of a contribution hereunder cause the balance of the Individual
Account of any Participant to be reduced to less than the balance which would have been
credited to the Account had the mistaken amount not been contributed.

Article 6. Limitations on Contributions.

6.01. Special Definitions. For purposes of this
Article, the following definitions shall apply:

(a) “Aggregate
limit” means the greater of (1) or (2) where (1) is the sum of (A) 125
percent of the greater of the average “deferral ratio” of the Active
Participants who are Non-Highly Compensated Employees for the “testing year” or
the average “contribution percentage” of Active Participants who are Non-Highly
Compensated Employees for the “testing year” beginning with or within the “testing
year” of the cash or deferred arrangement and (B) the lesser of 200
percent or two plus the lesser of such average “deferral ratio” or average “ contribution percentage” and where (2) is
the sum of (A) 125 percent of the lesser of the average “deferral
ratio” of the Active Participants who are Non-Highly Compensated Employees for
the “testing year” or the average “contribution percentage” of the Active
Participants who are Non-Highly Compensated Employees for the “testing year”
beginning with or within the “testing year”
of the cash or deferred arrangement and (B) the lesser of 200 percent
or two plus the greater of such average “deferral ratio” or average “contribution percentage”.

 21

 

 

(b) “Annual
additions” mean the sum of the following amounts allocated to an Active
Participant for a Limitation Year:

(1) all employer contributions allocated to an
Active Participant’s account under qualified defined contribution plans
maintained by the “415 employer”, including amounts applied to reduce employer
contributions as provided under Section 11.09;

(2) all employee contributions allocated to an Active Participant’s account
under a qualified defined contribution plan or a qualified defined benefit plan
maintained by the “415 employer” if separate accounts are maintained with
respect to such Active Participant under the defined benefit plan;

(3) all forfeitures allocated to an Active Participant’s account
under a qualified defined contribution plan maintained by the “415 employer”; 

(4) all amounts allocated, after March 31, 1984, to an “individual medical benefit account” which is
part of a pension or annuity plan maintained by the “415 employer”;

(5) all amounts derived from contributions paid or accrued after December 31,
1985, in taxable years ending after such date, which are attributable to
post-retirement medical benefits allocated to the separate account of a key
employee, as defined in Code Section 419A(d)(3), under a “welfare benefit fund”
maintained by the “415 employer”; and

(6) all allocations to an Active Participant under a “simplified
employee pension”.

(c) “Contribution percentage” means the ratio (expressed as a
percentage) of (1) the “contribution percentage amounts” allocated to an “eligible
participant’s” accounts for the Plan Year to (2) the “eligible participant’s”
“testing compensation” for the Plan Year.

(d) “Contribution percentage amounts” mean:

(1) any Employee Contributions made by an “eligible participant” to
the Plan;

(2) any
Matching Employer Contributions, but excluding (A) Qualified Matching Employer Contributions that are taken
into account in satisfying the “ADP” test described in Section 6.03 (except
that such exclusion shall not apply for any Plan Year in which the “ADP” test
described in Section 6.03 is deemed satisfied pursuant to Section 6.10)
and (B) Matching Employer Contributions that are forfeited either to correct “excess
aggregate contributions” or because the contributions to which they relate are “excess
deferrals”, “excess contributions”, or “excess aggregate contributions”;

(3) at
the election of the Employer, Qualified Nonelective Employer Contributions,
excluding Qualified Nonelective Employer Contributions that are taken into
account in satisfying the “ADP” test described in Section 6.03; and

 22
 

 

 

(4) at the election of the Employer, Deferral Contributions,
excluding Deferral Contributions that are taken into account in satisfying the “ADP”
test described in Section 6.03.

Notwithstanding the foregoing, for any Plan Year in which the “ADP” test
described in Section 6.03 is deemed satisfied pursuant to Section 6.10,
“contribution percentage amounts” shall not include the following:

(5) any Deferral Contributions; and

(6) if the requirements described in Section 6.11 for deemed
satisfaction of the “ACP” test with respect to Matching Employer Contributions
are met, any Matching Employer Contributions; or if the requirements described
in Section 6.11 for deemed satisfaction of the “ACP” test with respect to
Matching Employer Contributions are not met, any Matching Employer
Contributions made on behalf of an “eligible participant” for the Plan Year
that do not exceed four percent of the “eligible participant’s” Compensation
for the Plan Year.

To be included in determining an “eligible participant’s” “contribution
percentage” for a Plan Year, Employee Contributions must be made to the Plan
before the end of such Plan Year and other “contribution percentage amounts”
must be allocated to the “eligible participant’s” Account as of a date within
such Plan Year and made before the last day of the 12-month period
immediately following the Plan Year to which the “contribution percentage
amounts” relate. If an Employer has elected the prior year testing method
described in Subsection 1.06(a)(2) of the Adoption Agreement, “contribution
percentage amounts” that are taken into account for purposes of determining the
“contribution percentages” of Non-Highly Compensated Employees for the prior
year relate to such prior year. Therefore, such “contribution percentage
amounts” must be made before the last day of the Plan Year being tested.

Effective for Plan Years beginning on or after January 1, 1999, if
an Employer elects to change from the current year testing method described in Subsection 1.06(a)(1)
of the Adoption Agreement to the prior year testing method described in
Subsection 1.06(a)(2) of the Adoption Agreement, the following shall not
be considered “contribution percentage amounts” for purposes of determining the
“contribution percentages” of Non-Highly Compensated Employees for the prior
year immediately preceding the Plan Year in which the change is effective:

(7) Qualified Matching Employer Contributions that were taken into
account in satisfying the “ADP” test described in Section 6.03 for such
prior year;

(8) Qualified Nonelective Employer Contributions that were taken
into account in satisfying the “ADP” test described in Section 6.03 or the
“ACP” test described in Section 6.06 for such prior year; and

(9) all
Deferral Contributions.

(e) “Deferral ratio” means the ratio (expressed as a percentage) of
(1) the amount of “includable contributions” made on behalf of an Active
Participant for the Plan Year to (2) the Active Participant’s “testing
compensation” for such Plan Year. An Active Participant who does not receive “includable
contributions” for a Plan Year shall have a “deferral ratio” of zero.

 23
 

 

 

(f) “Defined benefit fraction” means a fraction, the numerator of
which is the sum of the Active Participant’s annual benefits (adjusted to an actuarially
equivalent straight life annuity if such benefit is expressed in a form other
than a straight life annuity or qualified joint and survivor annuity) under all
the defined benefit plans (whether or not terminated) maintained by the “415
employer”, each such annual benefit computed on the assumptions that the Active
Participant shall remain in employment until the normal retirement age under
each such plan (or the Active Participant’s current age, if later) and that all
other factors used to determine benefits under such plan shall remain constant
for all future Limitation Years, and the denominator of which is the lesser of
125 percent of the dollar limitation determined for the Limitation Year under
Code Sections 415(b)(1)(A) and 415(d) or 140 percent of the Active
Participant’s highest average Compensation for three consecutive calendar years
of service during which the Active Participant was active in each such plan,
including any adjustments under Code Section 415(b). However, if the
Active Participant was a participant as of the first day of the first
Limitation Year beginning after December 31, 1986, in one or more defined
benefit plans maintained by the “415 employer” which were in existence on May 6, 1986 then the denominator of the “defined
benefit fraction” shall not be less than 125 percent of the Active Participant’s
total accrued benefit as of the close of the last Limitation Year beginning
before January 1, 1987, disregarding any changes in the terms and
conditions of such plans made after May 5, 1986, under all such defined
benefit plans that met, individually and in the aggregate, the requirements of
Code Section 415 for all Limitation Years beginning before January 1,
1987.

(g) “Defined
contribution fraction” means a fraction, the numerator of which is the sum of
all “annual additions” credited to an Active Participant for the current
Limitation Year and all prior Limitation Years and the denominator of which is
the sum of the “maximum permissible amounts” for the current Limitation Year
and all prior Limitation Years during which the Participant was an Employee
(regardless of whether the “415 employer” maintained a defined contribution
plan in any such Limitation Year).

If the Active Participant was
a participant as of the first day of the first Limitation Year beginning after December 31,
1986, in one or more defined contribution plans maintained by the “415 employer”
which were in existence on May 6, 1986, then the numerator of the “defined
contribution fraction” shall be adjusted if the sum of this fraction and the “defined
benefit fraction” would otherwise exceed 1.0 under the terms of the Plan. Under
the adjustment an amount equal to the product of (1) the excess of the sum
of the fractions over 1.0 and (2) the denominator of this fraction shall
be permanently subtracted from the numerator of this fraction. The adjustment
is calculated using the fractions as they would be computed as of the end of the
last Limitation Year beginning before January 1, 1987, and disregarding
any changes in the terms and conditions of the plans made after May 6,
1986, but using the Section 415 limitation applicable to the first
Limitation Year beginning on or after January 1, 1987.

For purposes of determining the “defined contribution fraction”, the “annual
additions” for Limitation Years beginning before January 1, 1987 shall not be recomputed to treat
all employee contributions as “annual additions”.

 24
 

 

 

(h) “Determination year” means (1) for purposes of determining income
or loss with respect to “excess deferrals”, the calendar year in which the “excess
deferrals” were made and (2) for purposes of determining income or loss
with respect to “excess contributions”, and “excess aggregate contributions”,
the Plan Year in which such “excess contributions” or “excess aggregate
contributions” were made.

(i) “Elective deferrals”
mean all employer contributions,
other than Deferral Contributions, made on behalf of a Participant pursuant to
an election to defer under any qualified CODA as described in Code Section 401(k),
any simplified employee pension cash or deferred arrangement as described in
Code Section 402(h)(1)(B), any
eligible deferred compensation plan under Code Section 457, any plan as
described under Code Section 501(c)(18), and any employer contributions
made on behalf of a Participant pursuant to a salary reduction agreement for
the purchase of an annuity contract under Code Section 403(b). “Elective
deferrals” shall not include any deferrals properly distributed as excess “annual
additions”. 

(j) “Eligible participant” means any Active
Participant who is eligible to make Employee Contributions, or Deferral
Contributions (if the Employer takes such contributions into account in
calculating “contribution percentages”), or to receive a Matching Employer
Contribution. Notwithstanding the foregoing, the term “eligible participant”
shall not include any Active Participant who is included in a unit of Employees
covered by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement between employee representatives and one or more
employers.

(k) “Excess aggregate contributions” with respect to any Plan Year
mean the excess of

(1) The aggregate “contribution percentage amounts” actually taken
into 

account in computing the average “contribution percentages” of “eligible 

participants” who are Highly Compensated Employees for such Plan Year, 

over

(2) The maximum amount of “contribution
percentage amounts” permitted to be made on behalf of Highly Compensated Employees under Section 6.06 (determined by reducing “contribution
percentage amounts” made for the Plan Year
on behalf of “eligible participants” who are Highly Compensated Employees in
order of their “contribution percentages” beginning with the highest of such “contribution percentages”).

“Excess aggregate contributions” shall be determined after first
determining “excess deferrals” and then determining “excess contributions”.

(l) “Excess contributions” with respect to any Plan Year mean the
excess of

(1) The aggregate amount of “includable contributions” actually
taken into account in computing the average “deferral percentage” of Active
Participants who are Highly Compensated Employees for such Plan Year, over

(2) The maximum amount of “includable contributions” permitted to
be made on behalf of Highly Compensated Employees under Section 6.03  (determined
by reducing “includable contributions” made for the Plan Year on behalf of Active Participants who are Highly Compensated Employees in

 25
 

 

 

order of their “deferral ratios”, beginning with the highest of such “deferral
ratios”).

(m) “Excess deferrals” mean those Deferral Contributions and/or “elective
deferrals” that are includable in a Participant’s gross income under Code Section 402(g)
to the extent such Participant’s Deferral Contributions and/or “elective
deferrals” for a calendar year exceed the dollar limitation under such Code Section for
such calendar year.

(n) “Excess 415 amount” means the excess of an Active Participant’s
“annual additions” for the Limitation Year over the “maximum permissible amount”.

(o) “415 employer” means the Employer and any other employers which
constitute a controlled group of corporations (as defined in Code Section 414
(b) as modified by Code Section 415(h)) or which constitute trades or
businesses (whether or not incorporated) which are under common control (as
defined in Code Section 414(c) as modified by Code Section 415(h)) or
which constitute an affiliated service group (as defined in Code Section 414(m))
and any other entity required to be aggregated with the Employer pursuant to
regulations issued under Code Section 414(o).

(p) “Includable
contributions” mean:

(1) any Deferral Contributions made on behalf
of an Active Participant, including
“excess deferrals” of Highly Compensated Employees, but excluding (a) “excess deferrals” of Non-Highly Compensated
Employees that arise solely from Deferral Contributions made under the
Plan or plans maintained by the Employer or a Related Employer and (b) Deferral Contributions that are
taken into account in satisfying the “ACP” test described in Section 6.06;

(2) at the election of the Employer, Qualified Nonelective Employer
Contributions, excluding Qualified Nonelective Employer Contributions that are
taken into account in satisfying the “ACP” test described in Section 6.06;
and

(3) at the election of the Employer, Qualified Matching Employer
Contributions; provided, however, that the Employer may not elect to treat
Qualified Matching Employer Contributions as “includable contributions” for any
Plan Year in which the “ADP” test described in Section 6.03 is deemed
satisfied pursuant to Section 6.10.

To be included in determining an Active Participant’s “deferral ratio”
for a Plan Year, “includable contributions” must be allocated to the Participant’s
Account as of a date within such Plan Year and made before the last day of the
12-month period immediately following the Plan Year to which the “includable
contributions” relate. If an Employer has elected the prior year testing method
described in Subsection 1.06 (a)(2) of the Adoption Agreement, “includable
contributions” that are taken into account for purposes of determining the “deferral
ratios” of Non-Highly Compensated Employees for the prior year relate to such
prior year. Therefore, such “includable contributions” must be made before the
last day of the Plan Year being tested.

Effective for Plan Years beginning on or after January 1, 1999, if
an Employer elects to change from the current year testing method described in
Subsection 1.06(a)(1) of the Adoption Agreement to the prior year testing

 26
 

 

 

method described in Subsection 1.06 (a)(2) of
the Adoption Agreement, the following shall not be considered “includable
contributions” for purposes of determining the “deferral ratios” of Non-Highly
Compensated Employees for the prior year immediately preceding the Plan Year in
which the change is effective:

(4) Deferral Contributions that were taken into account in
satisfying the “ACP” test described in Section 6.06 for such prior year;

(5) Qualified Nonelective Employer Contributions that were taken
into account in satisfying the “ADP” test described in Section 6.03 or the
“ACP” test described in Section 6.06 for such prior year; and

(6) all Qualified Matching Employer Contributions.

(q) “Individual medical benefit account” means an individual
medical benefit account as defined in Code Section 415(l)(2).

(r) “Maximum permissible amount” means for a Limitation Year with
respect to any Active Participant the lesser of (1) $30,000 (adjusted as
provided in Code Section 415 (d)) or (2) 25 percent of the Active
Participant’s Compensation for the Limitation Year. If a short Limitation Year
is created because of an amendment changing the Lim 12itation Year to a
different consecutive-month period, the dollar limitation specified in clause (1) above
shall be adjusted by multiplying it by a fraction the numerator of which is the
number of months in the short Limitation Year and the denominator of which is
12.

The
Compensation limitation specified in clause (2) above shall not apply to any contribution for medical benefits
within the meaning of Code Section 401 (h) or
419A(f)(2) after separation from service which is otherwise treated as
an “annual addition” under Code Section 419A(d)(2) or 415(l)(1).

(s) “Simplified employee pension” means a simplified employee
pension as defined in Code

Section 408(k).

(t) “Testing compensation” means compensation as defined in Code
Section 414(s). “Testing compensation” shall be based on the amount actually
paid to a Participant during the “testing year” or, at the option of the
Employer, during that portion of the “testing year” during which the
Participant is an Active Participant; provided, however, that if the Employer
elected different Eligibility Service requirements for purposes of eligibility
to make Deferral Contributions and to receive Matching Employer Contributions,
then “testing compensation” must be based on the amount paid to a Participant
during the full “testing year”.

The annual “testing
compensation” of each Active Participant taken into account in applying the “ADP”
test described in Section 6.03 and the “ACP” test described in Section 6.06
for any “testing year” shall not exceed the annual compensation limit under
Code Section 401(a)(17) as in effect on the first day of the “testing year”.
This limit shall be adjusted by the Secretary to reflect increases in the cost
of living, as provided in Code Section 401(a)(17)(B); provided, however,
that the dollar increase in effect on January 1 of any calendar year is effective
for “testing years” beginning in such calendar year. If a Plan determines “testing
compensation” over a period that contains fewer than 12 calendar months (a “short
determination

 27
 

 

 

period”), then the Compensation limit for such “short determination period”
is equal to the Compensation limit for the calendar year in which the “short
determination period” begins multiplied by the ratio obtained by dividing the
number of full months in the “short determination period” by 12; provided,
however, that such proration shall not apply if there is a “short determination
period” because (1) the Employer elected in accordance with any rule s
and regulations issued by the Secretary of the Treasury or his delegate to
apply the “ADP” test described in Section 6.03 and/or the “ACP” test
described in Section 6.06 based only on Compensation paid during the
portion of the “testing year” during which an individual was an Active
Participant or (2) an Employee is covered under the Plan for fewer than 12
calendar months.

(u) “Testing year” means

(1) if the Employer has elected the current year
testing method in Subsection 1.06(a)(1) of the Adoption Agreement, the
Plan Year being tested.

(2) if the Employer has elected the prior year testing method in
Subsection 1.06 (a)(2) of the Adoption Agreement, the Plan Year
immediately preceding the Plan Year being tested.

(v) “Welfare benefit fund” means a welfare benefit fund as defined
in Code Section 419(e).

6.02. Code Section 402(g) Limit on Deferral
Contributions. In no event shall the amount of Deferral Contributions made
under the Plan for a calendar year, when aggregated with the “elective
deferrals” made under any other plan maintained by the Employer or a Related
Employer, exceed the dollar limitation contained in Code Section 402(g) in
effect at the beginning of such calendar year.

A Participant may assign to the Plan any “excess deferrals” made during
a calendar year by notifying the Administrator on or before March 15
following the calendar year in which the “excess deferrals” were made of the
amount of the “excess deferrals” to be assigned to the Plan. A Participant is
deemed to notify the Administrator of any “excess deferrals” that arise by
taking into account only those Deferral Contributions made to the Plan and
those “elective deferrals” made to any other plan maintained by the Employer or
a Related Employer. Notwithstanding any other provision of the Plan, “excess
deferrals”, plus any income and minus any loss allocable thereto, as determined
under Section 6.09, shall be distributed no later than April 15 to
any Participant to whose Account “excess deferrals” were so assigned for the
preceding calendar year and who claims “excess deferrals” for such calendar
year.

Any Matching Employer
Contributions attributable to “excess deferrals”, plus any income and minus any
loss allocable thereto, as determined under Section 6.09, shall be forfeited
and applied as provided in Section 11.09.

“Excess deferrals” shall be treated as “annual additions” under the
Plan, unless such amounts are distributed no later than the first April 15
following the close of the calendar year in which the “excess deferrals” were
made.

6.03. Additional Limit on Deferral Contributions (“ADP”
Test). Notwithstanding any other provision of the Plan to the contrary, the
Deferral Contributions made with respect to a Plan Year on behalf of Active
Participants who are Highly 

 28
 

 

 

Compensated Employees for such Plan Year may not
result in an average “deferral ratio” for such Active Participants that exceeds
the greater of: 

(a) the average “deferral ratio” for the “testing year” of Active Participants
who are Non-Highly Compensated Employees for the “testing year” multiplied by
1.25; or

(b) the average “deferral ratio” for the “testing year” of Active
Participants who are Non-Highly Compensated Employees for the “testing year”
multiplied by two, provided that the average “deferral ratio” for Active
Participants who are Highly Compensated Employees for the Plan Year being
tested does not exceed the average “deferral ratio” for Participants who are
Non-Highly Compensated Employees for the “testing year” by more than two
percentage points.

For the first Plan Year in
which the Plan provides a cash or deferred arrangement, the average “deferral
ratio” for Active Participants who are Non Highly Compensated Employees used in
determining the limits applicable under Subsections 6.03(a) and (b) shall
be either three percent or the actual average “deferral ratio” for such Active
Participants for such first Plan Year, as elected by the Employer in Section 1.06(b) of
the Adoption Agreement.

The deferral ratios of Active Participants who are included in a unit of
Employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement shall be disaggregated
from the “deferral ratios” of other Active Participants and the provisions of
this Section 6.03 shall be applied separately with respect to each group.

The “deferral ratio” for any Active Participant who is a Highly
Compensated Employee for the Plan Year being tested and who is eligible to have
“includable contributions” allocated to his accounts under two or more cash or
deferred arrangements described in Code Section 401(k) that are
maintained by the Employer or a Related Employer, shall be determined as if
such “includable contributions” were made under a single arrangement. If a
Highly Compensated Employee participates in two or more cash or deferred
arrangements that have different plan years, all cash or deferred arrangements
ending with or within the same calendar year shall be treated as a single
arrangement. Notwithstanding the foregoing, certain plans shall be treated as
separate if mandatorily disaggregated under regulations under Code Section 401(k).

If this Plan satisfies the requirements of Code Section 401(k),
401(a)(4), or 410(b) only
if aggregated with one or more other plans, or if one or more other plans
satisfy the requirements of such Code Sections only if aggregated with this Plan,
then this Section 6.03 shall be applied by determining the “deferral ratios”
of Employees as if all such plans were a single plan. Plans may be aggregated
in order to satisfy Code Section 401(k) only if they have the same plan
year.

The Employer shall maintain records sufficient to demonstrate
satisfaction of the “ADP” test and the amount of Qualified Nonelective and/or
Qualified Matching Employer Contributions used in such test. 

6.04. Allocation and Distribution of “Excess
Contributions”. Notwithstanding any other provision of this Plan, the “excess
contributions” allocable to the Account of a Participant, plus any income and
minus any loss allocable thereto, as determined under Section 6.09, shall
be distributed to the Participant no later than the last day of the Plan Year
immediately following the Plan Year in which 

 29
 

 

 

the “excess contributions” were made. If such excess
amounts are distributed more than 2 1/2 months after the last day of the Plan
Year in which the “excess contributions” were made, a ten percent excise tax
shall be imposed on the Employer maintaining the Plan with respect to such
amounts.

The “excess contributions” allocable to a Participant’s Account shall be
determined by reducing the “includable contributions” made for the Plan Year on
behalf of Active Participants who are Highly Compensated Employees in order of the
dollar amount of such “includable contributions”, beginning with the highest such
dollar amount.

“Excess contributions” shall be treated as “annual additions”.

Any Matching Employer Contributions attributable to “excess contributions”,
plus any income and minus any loss allocable
thereto, as determined under Section 6.0 9, shall be forfeited and
applied as provided in Section 11.09.

6.05. Reductions in Deferral Contributions to Meet
Code Requirements. If the Administrator anticipates that the Plan will not
satisfy the “ADP” and/or “ACP” test for the year, the Administrator may
objectively reduce the rate of Deferral Contributions
of Participants who are Highly Compensated Employees to an amount determined
by the Administrator to be necessary to satisfy the “ADP” and/or “ACP” test.

6.06. Limit on Matching Employer Contributions and
Employee Contributions (“ACP” Test). The provisions of this Section 6.06
shall not apply to Active Participants who are included in a unit of Employees
covered by an agreement which the Secretary of Labor finds to be a collective
bargaining agreement between employee representatives and one or more employers

Notwithstanding any other provision of the Plan to the contrary,
Matching Employer Contributions and Employee Contributions made with respect to
a Plan Year by or on behalf of “eligible participants” who are Highly
Compensated Employees for such Plan Year may not result in an average “contribution
percentage” for such “eligible participants” that exceeds the greater of:

(a) the average “contribution percentage” for the “testing year” of
“eligible participants” who are Non-Highly Compensated Employees for the “testing
year” multiplied by 1.25; or

(b) the average “contribution percentage” for the “testing year” of
“eligible participants” who are Non-Highly Compensated Employees for the “testing
year” multiplied by two, provided that the average “contribution percentage”
for the Plan Year being tested of “eligible participants” who are Highly
Compensated Employees does not exceed the average “contribution percentage” for
the “testing year” of “eligible participants” who are NonHighly Compensated
Employees for the “testing year” by more than two percentage points.

For the first Plan Year in
which the Plan provides for “contribution percentage amounts” to be made, the “ACP”
for “eligible participants” who are Non-Highly Compensated Employees used in
determining the limits applicable under paragraphs (a) and (b) of
this Section 6.06 shall be either three percent or the actual “ACP” of
such eligible participants for such first Plan Year, as elected by the Employer
in Section 1.06(b).

 30

 

 

The “contribution percentage” for any “eligible
participant” who is a Highly Compensated Employee for the Plan Year and who is
eligible to have “contribution percentage
amounts” allocated to his accounts under two or more plans described in Code
Section 401(a) that are maintained by the Employer or a Related
Employer, shall be determined as if such “contribution percentage amounts” were
contributed under a single plan. If a Highly Compensated Employee participates
in two or more such plans that have different plan years, all plans
ending with or within the same calendar year shall be treated as a single plan.
Notwithstanding the foregoing, certain plans shall be treated as separate if mandatorily disaggregated
under Treasury Regulations issued under Code Section 401(m).

If this Plan satisfies the requirements of Code Section 401(m),
401(a)(4) or 410(b) only if aggregated with one or more other plans,
or if one or more other plans satisfy the requirements of such Code Sections
only if aggregated with this Plan, then this Section 6.06 shall be applied
by determining the “contribution percentages” of Employees as if all such plans
were a single plan. Plans may be aggregated in order to satisfy Code Section 401(m) only
if they have the same plan year.

The Employer shall maintain records sufficient to demonstrate
satisfaction of the “ACP” test and the amount of Deferral Contributions,
Qualified Nonelective Employer Contributions, and/or Qualified Matching
Employer Contributions used in such test.

6.07. Allocation, Distribution, and Forfeiture of “Excess Aggregate
Contributions”. Notwithstanding any other provision of the Plan, the “excess
aggregate contributions” allocable to the Account of a Participant, plus any
income and minus any loss allocable thereto, as determined under Section 6.09,
shall be forfeited, if forfeitable, or if not forfeitable, distributed to the
Participant no later than the last day of
the Plan Year immediately following  the
Plan Year in which the “excess aggregate contributions” were made. If such
excess amounts are distributed more than 2-1/2 months after the last day
of the Plan Year in which such “excess aggregate contributions” were made, a
ten percent excise tax shall be imposed on
the Employer maintaining the Plan
with respect to such
amounts.

The “excess aggregate contributions” allocable to a Participant’s
Account shall be determined by reducing the “contribution percentage amounts”
made for the Plan Year on behalf of “eligible participants” who are Highly
Compensated Employees in order of the dollar amount of such “contribution
percentage amounts”, beginning with the highest such dollar amount.

“Excess
aggregate contributions” shall be treated as “annual additions”.

“Excess aggregate contributions” shall be forfeited or distributed from
a Participant’s Employee Contributions Account, Matching Employer Contributions
Account and if applicable, the Participant’s Deferral Contributions Account
and/or Qualified Nonelective Employer Contributions Account in the order
prescribed by the Employer, who shall direct the Trustee, and which order shall
be uniform with respect to all Participants and non-discriminatory.

Forfeitures of “excess aggregate contributions” shall be applied as
provided in Section 11.09.

6. 08. Aggregate Limit on “Contribution Percentage Amounts” and “Includable
Contributions”. The sum of the average “deferral ratio” and the average

 31
 

 

 

“contribution percentage” of those
Active Participants who are Highly Compensated Employees during the Plan
Year shall not exceed the “aggregate limit”. The average “deferral ratio” and
average “contribution percentage” of such Active Participants shall be determined after any corrections required to meet
the “ADP” test, described in Section 6.03,
and the “ACP” test, described in Section 6.06, have been made. Notwithstanding the foregoing, the
“aggregate limit” shall not be exceeded if either the average “deferral
ratio” or the average “contribution percentage” of such Active Participants for
the Plan Year does not exceed 1.25 multiplied by the average “deferral ratio”
or the average “contribution percentage”, as
applicable, for the “testing year” of the Active Participants who are Non-Highly Compensated Employees for the “testing
year”.

If the “aggregate limit” would be exceeded for any Plan Year, then the
limit shall be met by reducing the “contribution percentage amounts”
contributed for the Plan Year on behalf of the Active Participants who are
Highly Compensated Employees for such Plan Year (in order of their “contribution
percentages”, beginning with the highest such “contribution percentage”). “Contribution
percentage amounts” that are reduced as provided herein shall be treated as “excess
aggregate contributions”. If for any Plan Year in which the “ADP” test described
in Section 6.03 is deemed satisfied pursuant to Section 6.10, the average “deferral ratio” of those Active
Participants who are Highly Compensated Employees during the Plan Year does not meet the “aggregate
limit” after reducing the “contribution percentage amounts” contributed
on behalf of such Activee Participants to zero, no further reduction shall be
required under this Section 6.08.

6.09. Income or Loss on Distributable Contributions. The income or loss
allocable to “excess deferrals”, “excess contributions”, and “excess aggregate
contributions” shall be determined under one of the following methods:

(a) the income or loss for the “determination year” allocable to
the Participant’s Account to which such contributions were made multiplied by a
fraction, the numerator of which is the amount of the distributable
contributions and the denominator of which is the balance of the Participant’s
Account to which such contributions were made, determined without regard to any
income or loss occurring during the “determination year”; or

(b) the income or loss for the “determination year” determined
under any other reasonable method, provided that such method is used
consistently for all Participants in determining the income or loss allocable
to distributable contributions hereunder for the Plan Year, and is used by the
Plan in allocating income or loss to Participants’ Accounts.

Income or loss allocable to the period between the end of the “determination
year” and the date of
distribution shall be disregarded in determining income or a loss.

6.10. Deemed Satisfaction of “ADP” Test. Notwithstanding any other
provision of this Article 6
to the contrary, for any Plan Year beginning on or after January 1, 1999, if the Employer has elected one
of the safe harbor contributions in Subsection 1.10(a)(3) or 1.11(a)(3)
of the Adoption Agreement and complies with the notice requirements described
herein for such Plan Year, the Plan shall be deemed to have satisfied the “ADP”
test described in Section 6.03. The Employer shall provide a notice to
each Active Participant during the Plan Year describing the following:

 32
 

 

 

(a) the formula used for determining the amount
of the safe harbor contribution to be made on behalf of Active Participants for
the Plan Year or a statement that the Plan may be amended during the Plan Year
to provide for a safe harbor Nonelective Employer Contribution for the Plan
Year equal to at least three percent of each Active Participant’s Compensation
for the Plan Year;

(b) any other employer contributions provided under the Plan and any
requirements that Active Participants must satisfy to be entitled to receive
such employer contributions;

(c) the type and amount of Compensation that may be deferred under
the Plan as Deferral Contributions;

(d) the procedures for making a cash or deferred election under the
Plan and the periods during which such elections may be made or changed; and

(e) the withdrawal and vesting provisions applicable to
contributions under the Plan.

The descriptions required in (b) through
(e) may be provided by cross references to the relevant sections of an up
to date summary plan description. Such notice shall be written in a manner
calculated to be understood by the average Active Participant. The Employer
shall provide the notice to each Active Participant within one of the following
periods, whichever is applicable:

(f) if the employee is an Active Participant 90 days before the
beginning of the Plan Year, within the period beginning 90 days and ending 30
days before the first day of the Plan Year; or

(g) if the employee becomes an Active Participant after the date
described in paragraph (f) above, within the period beginning 90 days
before and ending on the date he becomes an Active Participant;

provided, however, that such notice shall not be required to be provided
to an Active Participant earlier than is required under any guidance published
by the Internal Revenue Service.

If an Employer that provides notice that the Plan
may be amended to provide a safe
harbor Nonelective Employer Contribution for the Plan Year does amend the Plan
to provide such contribution, the Employer shall provide a supplemental notice to all Active Participants stating that a
safe harbor Nonelective Employer Contribution in the specified amount
shall be made for the Plan Year. Such supplemental notice shall be provided to
Active Participants at least 30 days before the last day of the Plan Year.

6.11. Deemed Satisfaction of “ACP” Test With Respect to Matching
Employer Contributions. A Plan that
satisfies the requirements of Section 6.10 shall also be deemed to have satisfied the “ACP” test
described in Section 6.06 with respect to Matching Employer
Contributions, if Matching Employer Contributions to the Plan for the Plan Year
meet all of the following requirements: (a) the percentage
of Deferral Contributions matched does not increase as the percentage of
Compensation contributed increases; (b) Highly Compensated Employees are
not provided a greater percentage
match than Non-Highly Compensated Employees; (c) Deferral Contributions
matched do not exceed six percent of a Participant’s Compensation; and (d) if the Employer elected in Subsection 1.10(a)(2)
or 1.10(b)

 33
 

 

of
the Adoption Agreement to provide discretionary Matching Employer Contributions,
the Employer also elected in Subsection 1.10(a)(2)(A) or 1.10(b)(1) of
the Adoption Agreement, as applicable, to limit the dollar amount of such discretionary Matching Employer
Contributions allocated to a Participant for the Plan Year to no more
than four percent of such Participant’s Compensation for the Plan Year.

If such Plan provides for Employee Contributions, the “ACP” test
described in Section 6.06 must be applied with respect to such Employee
Contributions. For purposes of applying the “ACP” test with respect to Employee
Contributions, Matching Employer Contributions and Nonelective Employer
Contributions that satisfy the vesting and distribution requirements applicable
to safe harbor contributions, but which are not required to comply with the
safe harbor contribution requirements may be taken into account.

6.12. Code Section 415 Limitations. Notwithstanding any other
provisions of the Plan, the following limitations shall apply:

(a) Employer Maintains Single Plan: If the “415 employer” does not
maintain any other qualified defined contribution plan or any “welfare benefit
fund”, “individual medical benefit account”, or “simplified employee pension”
in addition to the Plan, the provisions of this Subsection 6.1 2 (a) shall
apply.

(1) If a Participant does not participate in,
and has never participated in any other qualified defined contribution plan, “welfare
benefit fund”, “individual
medical benefit account”, or “simplified employee pension” maintained by the “415
employer”, which provides an “annual addition”, the amount of “annual additions”
to the Participant’s Account for a Limitation
Year shall not exceed the lesser of the “maximum permissible amount” or any other limitation contained in the
Plan. If a contribution that would otherwise be contributed or allocated
to the Participant’s Account would cause the “annual additions” for the
Limitation Year to exceed the “maximum permissible amount”, the amount
contributed or allocated shall be reduced so that the “annual additions” for
the Limitation Year shall equal the “maximum
permissible amount”.

(2) Prior to the determination of a Participant’s actual
Compensation for a Limitation Year, the “maximum
permissible amount” may be determined on the basis of a reasonable estimation
of the Participant’s Compensation for such Limitation Year, uniformly
determined for all Participants similarly situated. Any Employer contributions
based on estimated annual Compensation shall be reduced by any “excess
415 amounts” carried over from prior
Limitation Years.

(3) As soon as is administratively feasible after the end of the
Limitation Year, the “maximum permissible amount” for such Limitation Year
shall be determined on the basis of the Participant’s actual Compensation for
such Limitation Year.

(4) If there is an “excess 415 amount” with respect to a Participant
for a Limitation Year as a result of the estimation of the Participant’s
Compensation for the Limitation Year, the allocation of forfeitures to the
Participant’s Account, or a reasonable error in determining the amount of
Deferral Contributions that may be made on behalf of the Participant under the
limits of this Section 6.12, such “excess 415 amount” shall be disposed of
as follows:

 34
 

 

 

(A) Any Employee Contributions shall be reduced to the extent
necessary to reduce the “excess 415 amount”.

(B) If after application of Subsection 6.12(a)(4)(A) an “excess
415 amount” still exists, any Deferral Contributions that have not been matched
shall be reduced to the extent necessary to reduce the “excess 415 amount”.

(C) If after application of Subsection 6.12(a)(4)(B) an “excess
415 amount” still exists, any Deferral Contributions that have been matched and
the Matching Employer Contributions attributable thereto shall be reduced to
the extent necessary to reduce the “excess 415 amount”.

(D) If after the application of Subsection 6.12(a)(4)(C) an “excess
415 amount” still exists, any Nonelective Employer Contributions shall be
reduced to the extent necessary to reduce the “excess 415 amount”.

(E) If after the application of Subsection 6.12(a)(4)(D) an “excess
415 amount” still exists, any Qualified Nonelective Employer Contributions
shall be reduced to the extent necessary to reduce the “excess 415 amount”.

Employee Contributions and Deferral Contributions that are reduced as
provided above shall be returned to the Participant. Any income allocable to
returned Employee Contributions or Deferral Contributions shall also be
returned or shall be treated as additional “annual additions” for the
Limitation Year in which the excess contributions to which they are allocable
were made.

If Matching Employer, Nonelective Employer, or
Qualified Nonelective Employer
Contributions to a Participant’s Account are reduced as an “excess 415 amount”,
as provided above, and the individual is still an Active Participant at the end of the Limitation Year, then such “excess
415 amount” shall be reapplied to reduce future Employer contributions
under the Plan for the next Limitation Year (and for each succeeding Limitation Year, as necessary) for such
Participant, so that in each such Limitation Year the sum of the actual
Employer contributions made on behalf
of such Participant plus the reapplied amount shall equal the amount of
Employer contributions which would otherwise be made to such Participant’s Account. If the individual is not an
Active Participant at the end of a Limitation Year, then such “excess 415 amount” shall be held unallocated in a suspense account. The suspense
account shall be applied to reduce future Employer contributions for all
remaining Active Participants in the next
Limitation Year and each succeeding Limitation Year if necessary.

If a suspense account is in existence at any time during the Limitation
Year pursuant to this Subsection 6.12 (a)(4), it shall participate in the
allocation of the Trust Fund’s investment gains and losses. All amounts in the
suspense account must be allocated to the Accounts of Active Participants
before any Employer contribution may be made for the Limitation Year.

Except as otherwise specifically provided in this Subsection 6.12, “excess
415 amounts” may not be distributed to Participants.

 35
 

 

 

(b) Employer Maintains Multiple Defined Contribution Type Plans:
Unless the Employer specifies another method for limiting “annual additions” in
the 415 Correction Addendum to the Adoption Agreement, if the “415 employer”
maintains any other qualified defined contribution plan or any “welfare benefit
fund”, “individual medical benefit account”, or “simplified employee pension”
in addition to the Plan, the provisions of this Subsection 6.12(b) shall
apply.

(1) If a Participant is covered under any other qualified defined
contribution plan or any “welfare benefit fund”, “individual medical benefit account”, or “simplified employee pension”
maintained by the “415 employer”, that provides an “annual addition”,
the amount of “annual additions” to the
Participant’s Account for a Limitation Year shall not exceed the lesser of

(A) the “maximum permissible amount”, reduced by the sum of any “annual
additions” to the Participant’s accounts for the same Limitation Year under
such other qualified defined contribution plans and “welfare benefit funds”, “individual
medical benefit accounts”, and “simplified employee pensions”, or

(B) any other limitation contained in the Plan.

If the “annual additions” with respect to a Participant
under other qualified
defined contribution plans, “welfare benefit funds”, “individual medical benefit accounts”, and “simplified employee
pensions” maintained by the “415 employer” are less than the “maximum permissible amount” and a
contribution that would otherwise be contributed or allocated to the
Participant’s Account under the Plan would cause the “annual additions” for the
Limitation Year to exceed the “maximum permissible
amount”, the amount to be contributed or allocated shall be reduced so
that the “annual additions” for the Limitation Year shall equal the “maximum
permissible amount”. If the “annual additions” with respect to the Participant
under such other qualified defined contribution
plans, “welfare benefit funds”, “individual medical benefit accounts”, and “simplified
employee pensions” in the aggregate are equal to or greater than the “maximum permissible amount”, no amount shall be
contributed or allocated to the
Participant’s Account under the Plan for the Limitation Year.

(2) Prior to the determination of a Participant’s actual
Compensation for the Limitation Year, the amounts referred to in Subsection 6.12
(b)(1)(A) above may be determined on the basis of a reasonable estimation of
the Participant’s Compensation for such Limitation Year, uniformly determined
for all Participants similarly situated. Any Employer contribution based on
estimated annual Compensation shall be reduced by any “excess 415 amounts”
carried over from prior Limitation Years.

(3) As soon as is administratively feasible after the end of the
Limitation Year, the amounts referred to in Subsection 6.12 (b)(1)(A) shall be determined on the basis of the
Participant’s actual Compensation for
such Limitation Year.

(4) Notwithstanding the provisions of any other plan maintained by
a “415 employer”, if there is an “excess 415 amount” with respect to a

 36
 

 

 

Participant for a Limitation Year as a result of estimation of the
Participant’s Compensation for the Limitation Year, the allocation of
forfeitures to the Participant’s account under any qualified defined contribution plan maintained by the “415 employer”,
or a reasonable error in determining the amount of Deferral Contributions that may be made on behalf of
the Participant to the Plan or any other qualified defined contribution plan
maintained by the “415 employer” under the limits of this Subsection 6.12 (b),
such “excess 415 amount” shall be deemed to consist first of the “annual additions” allocated to this Plan and shall
be reduced as provided in Subsection 6.12(a)(4); provided, however, that if
the “415 employer” maintains both a profit sharing plan and a money purchase pension plan under this Basic Plan
Document, “annual additions” to the money purchase pension plan shall be
reduced only after all “annual additions” to the profit sharing plan have been
reduced.

(c) Employer Maintains or Maintained Defined Benefit Plan: For
Limitation Years beginning prior to January 1, 2000, if the “415 employer”
maintains, or at any time maintained, a qualified defined benefit plan, the sum
of any Participant’s “defined benefit plan fraction and “defined contribution
plan fraction” shall not exceed the combined plan limitation of 1.00 in any
such Limitation Year. The combined plan limitation shall be met by reducing “annual
additions” under the Plan, unless otherwise provided in the qualified defined benefit
plan.

(d) Adjustment to Compensation: Compensation for purposes of this
Section

6.12 shall include amounts that are not includable in the gross income
of the Participant under a salary reduction agreement by reason of the
application of Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b).

Article 7. Participants’ Accounts.

7. 01. Individual Accounts. The Administrator shall establish and
maintain an Account for each Participant that shall reflect Employer and
Employee contributions made on behalf of the Participant and earnings,
expenses, gains and losses attributable thereto, and investments made
with amounts in the Participant’s Account.
The Administrator shall establish and maintain such other ac counts and records as it decides in its discretion
to be reasonably required or appropriate in order to discharge its duties under
the Plan. The Administrator shall notify the Trustee of all Accounts
established and maintained under the Plan.

7.02. Valuation of Accounts.
Participant Accounts shall be valued at their fair market value at least
annually as of a date specified by the Administrator in accordance with a method consistently followed and
uniformly applied, and on such date earnings, expenses, gains and losses
on investments made with amounts in each Participant’s
Account shall be allocated to such Account. Participants shall be
furnished statements of their Account values at least once each Plan Year.

Article 8. Investment of Contributions.

8.01. Manner of Investment. All contributions made to
the Accounts of Participants shall be held for investment by the Trustee.
Except as otherwise specifically provided in Section 20.10, the Accounts
of Participants shall be

 37
 

 

 

invested and reinvested only in Permissible Investments selected by the
Employer and designated in the Service Agreement.

8.02. Investment Decisions.
Investments shall be directed by the Employer or by each Participant or
both, in accordance with the Employer’s election in Subsection 1.23 of the Adoption Agreement. Pursuant to Section 20.04,
the Trustee shall have n o discretion or authority with respect to the
investment of the Trust Fund; however, an affiliate of the Trustee may
exercise investment management authority in
accordance with Subsection (e) below.

(a) With respect to those Participant Accounts
for which Employer investment direction is elected, the Employer (in its
capacity as a named fiduciary under ERISA) has the right to direct the Trustee
in writing with respect to the investment and reinvestment of assets comprising
the Trust Fund in the Permissible Investments designated in the Service
Agreement.

(b) With respect to those Participant Accounts for which
Participant investment direction is elected, each Participant shall direct the
investment of his Account among the Permissible Investments designated in the
Service Agreement. The Participant shall file initial investment instructions
with the Administrator, on such form as the Administrator may provide,
selecting the Permissible Investments in which amounts credited to his Account
shall be invested.

(1) Except as provided in this Section 8.02,
only authorized Plan contacts and the Participant shall have access to a
Participant’s Account. While any balance remains in the Account of a
Participant after his death, the Beneficiary of the Participant shall make
decisions as to the investment of the Account as though the Beneficiary were
the Participant. To the extent required by a qualified domestic relations order
as defined in Code Section 414(p), an alternate payee shall make
investment decisions with respect to any segregated account established in the
name of the alternate payee as provided in Section 18.04.

(2) If the Trustee receives any contribution
under the Plan as to which investment instructions have not been provided, the
Trustee shall promptly notify the Administrator and the Administrator shall
take steps to elicit instructions from the Participant. The Trustee shall
credit any such contribution to the Participant’s Account and such amount shall
be invested in the Permissible Investment selected by the Employer for such
purposes or, absent Employer selection, in the most conservative Permissible
Investment designated in the Service Agreement, until investment instructions
have been received by the Trustee.

If the Employer elects to allow Participants to direct the investment of
their Account in Subsection 1.23(b) or (c) of the Adoption Agreement,
the Plan is intended to constitute a plan described in ERISA Section 404(c) and
regulations issued there under. The fiduciaries of the Plan shall be relieved
of liability for any losses that are the direct and necessary result of investment
instructions given by the Participant, his Beneficiary, or an alternate payee
under a qualified domestic relations order. The Employer shall not be relieved
of fiduciary responsibility for the selection and monitoring of the Permissible
Investments under the Plan.

(c) All dividends, interest, gains and distributions of any nature
received in respect of Fund Shares shall be reinvested in additional shares of
that Permissible Investment.

 38
 

 

 

(d) Expenses attributable to the acquisition of
investments shall be charged to the Account of the Participant for which such
investment is made.

(e) The Employer may appoint an investment manager (which may be
the Trustee or an affiliate) to determine the allocation of amounts held in
Participants’ Accounts among various investment options (the “Managed Account”
option) for Participants who direct the Trustee to invest any portion of their
accounts in the Managed Account option. The investment options utilized under
the Managed Account option may be those generally available under the Plan or
may be as selected by the investment manager for use under the Managed Account
option. Participation in the Managed Account option shall be subject to such
conditions and limitations (including account minimums) as may be imposed by
the investment manager.

8.03.
Participant Directions to Trustee. The method and frequency for change of investments
shall be determined under (a) the rules applicable to the Permissible
Investments selected by the Employer and designated in the Service Agreement
and (b) any additional rules of the Employer limiting the frequency
of investment changes, which are included in a separate written administrative
procedure adopted by the Employer and accepted by the Trustee. The Trustee
shall have no duty to inquire into the investment decisions of a Participant or
to advise him regarding the purchase, retention, or sale of assets credited to
his Account.

Article 9.
Participant Loans

9.01. Special Definitions. For purposes of this Article, the following
special definitions shall apply:

(a) A “participant” is any Participant or Beneficiary, including an
alternate payee under a qualified domestic relations order, as defined in Code Section 414(p),
who is a party-in-interest (as determined under ERISA Section 3(14)) with
respect to the Plan.

(b) An “owner-employee” is, if the Employer is a sole
proprietorship for Federal income tax purposes (regardless of its
characterization under state law), the individual who is the sole proprietor or
sole member, as applicable; if the Employer is a partnership for Federal income
tax purposes (regardless of its characterization under state law), a partner or
member, as applicable, who owns more than 10 percent of either the capital
interest or the profits interest of the partnership.

(c) A
“shareholder-employee” is an employee or officer of an electing small business
(Subchapter S) corporation who owns (or is considered as owning within the
meaning of Code Section 318(a)(1)), on any day during the taxable year of
such corporation, more than five percent of the outstanding stock of the
corporation.

9.02. Participant Loans. If so provided by the Employer in Section 1.17
of the Adoption Agreement, the Administrator shall allow “participants” to
apply for a loan from their Accounts under the Plan, subject to the provisions
of this Article 9.

 39

 

9.03. Separate Loan Procedures. All Plan loans shall
be made and administered in accordance with separate loan procedures that are
hereby incorporated into the Plan by reference.

9.04. Availability of Loans.
Loans shall be made available to all “participants” on a reasonably
equivalent basis. Notwithstanding the preceding sentence, no loans shall be made to (a) an Eligible
Employee who makes a Rollover Contribution in accordance with Section 5.06,
but who has not satisfied the requirements of Section 4.01
to become an Active Participant or (b) a “shareholder-employee” or “owner-employee”.

Loans shall not be made
available to “participants” who are Highly Compensated Employees in an
amount greater than the amount made available to other “participants”.

9.05. Limitation on Loan Amount. No loan to any “participant”
shall be made to the extent that such loan when added to the outstanding
balance of all other loans to the “participant”
would exceed the lesser of (a) $50,000
reduced by the excess (if any) of
the highest outstanding balance of plan loans during the one-year period
ending on the day before the loan is made over the outstanding balance of plan loans on the date the loan is
made, or (b) one-half the present value
of the “participant’s” vested interest in his Account. For purposes of the above limitation, plan loans include all loans
from all plans maintained by the Employer and any Related Employer.

9.06. Interest Rate. All loans shall bear a reasonable
rate of interest as determined by the Administrator based on the prevailing
interest rates charged by persons in the business of lending money for loans
which would be made under similar circumstances. The determination of a
reasonable rate of interest must be based on appropriate regional factors
unless the Plan is administered on a national basis in which case the Administrator may establish a
uniform reasonable rate of interest applicable to all regions.

9.07. Level Amortization. All loans shall by their
terms require that repayment (principal and interest) be amortized in level
payments, not less than quarterly, over a period not extending beyond five
years from the date of the loan unless such loan is for the purchase of a “participant’s”
primary residence. Notwithstanding the foregoing, the amortization requirement
may be waived for a period not exceeding one year during which a “participant”
is on a leave of absence from employment with the Employer and any Related
Employer either without pay or at a rate of pay which, after withholding for
employment and income taxes, is less than the amount of the installment
payments required under the terms of the loan. Installment payments must resume
after such leave of absence ends or, if earlier, after the first year of such
leave of absence, in an amount that is not less than the amount of the
installment payments required under the terms of the original loan. No waiver
of the amortization requirements shall extend the period of the loan beyond
five years from the date of the loan, unless the loan is for purchase of the “participant’s”
primary residence.

9.08. Security. Loans must be secured by the “participant’s”
vested interest in his Account not to exceed 50 percent of such vested
interest. If the provisions of Section 14.04 apply to a Participant, a
Participant must obtain the consent of his or her spouse, if any, to use his
vested interest in his Account as security for the loan. Spousal consent shall
be obtained no earlier than the beginning of the 90-day period that ends on the
date on which the loan is to be so secured. The consent must be in writing,
must acknowledge the effect of the loan, and must 

 40
 

 

be witnessed by a Plan representative or notary
public. Such consent shall thereafter be binding with respect to the consenting
spouse or any subsequent spouse with respect to that loan.

9.09. Transfer and Distribution of Loan Amounts from
Permissible Investments. The Employer shall confirm the order in which the
Permissible Investments shall be liquidated in order that the loan amount can
be transferred and distributed.

9.10. Default. The
Administrator shall treat a loan in default if

(a) any scheduled
repayment remains unpaid at the end of the period specified in the separate
loan procedures (unless payment is not made due to a waiver of the amortization
schedule for a “participant” who is on a leave of absence, as described in Section 9.07),
or

(b) there is an outstanding principal balance existing
on a loan after the last scheduled repayment date.

Upon default, the entire outstanding principal and
accrued interest shall be immediately due and payable. If a distributable event
(as defined by the Code) has occurred, the Administrator shall direct the
Trustee to foreclose on the promissory note and offset the “participant’s”
vested interest in his Account by the outstanding balance of the loan. If a
distributable event has not occurred, the Administrator shall direct the
Trustee to foreclose on the promissory note and offset the “participant’s”
vested interest in his Account as soon as a distributable event occurs. The
Trustee shall have no obligation to foreclose on the promissory note and offset
the outstanding balance of the loan except as directed by the Administrator.

9.11. Effect of Termination Where Participant has
Outstanding Loan Balance. If a Participant has an outstanding loan balance at
the time his employment terminates, the entire outstanding principal and
accrued interest shall be immediately due and payable. Any outstanding loan
amounts that are immediately due and payable hereunder shall be treated in
accordance with the provisions of Sections 9.10 and 9.12 as if the Participant
had defaulted on the outstanding loan.

9.12. Deemed Distributions Under Code Section 72(p).
Notwithstanding the provisions of Section 9.10, if a “participant’s” loan
is in default, the “participant” shall be treated as having received a taxable “deemed
distribution” for purposes of Code Section 72(p), whether or not a
distributable event has occurred. The amount of a loan that is a deemed
distribution ceases to be an outstanding loan for purposes of Code Section 72,
except as otherwise specifically provided herein, and a Participant shall not
be treated as having received a taxable distribution when the Participant’s
Account is offset by the outstanding balance of the loan amount as provided in Section 9.10.
In addition, interest that accrues on a loan after it is deemed distributed
shall not be treated as an additional loan to the Participant and shall not be
included in the income of the Participant as a deemed distribution. Notwithstanding
the foregoing, unless a Participant repays a loan that has been deemed
distributed, with interest thereon, the amount of such loan, with interest,
shall be considered an outstanding loan under Code Section 72(p) for
purposes of determining the applicable limitation on subsequent loans under Section 9.05.

If a Participant makes payments on a loan that has
been deemed distributed, payments made on the loan after the date it was deemed
distributed shall be

 41
 

 

treated as Employee Contributions to the Plan for
purposes of increasing the Participant’s tax basis in his Account, but shall
not be treated as Employee Contributions for any other purpose under the Plan, including
application of the “ACP” test described in Section 6.06 and application of
the Code Section 415 limitations described in Section 6.12.

The provisions of
this Section 9.12 regarding treatment of loans that are deemed distributed
shall be effective as of

(a) the Effective Date,
if the Plan is a new plan or is an amendment and restatement of a plan that
administered loans in accordance with the provisions of Q & A 19 and
20 of Section 1.72(p)-1 of the Proposed Treasury Regulations
immediately prior to the Effective Date or

(b) as of the January 1 coinciding with or
immediately following the Effective Date, in any other case.

Any loan that was deemed distributed prior to the date
the provisions of this Section 9.12 are effective shall be administered in
accordance with the provisions of this Section 9.12 to the extent such
administration is consistent with the transition rules in Q & A
21(c)(2) of Section 1.72(p)-1 of the Proposed Treasury
Regulations.

9.13. Determination of Account Value Upon Distribution
Where Plan Loan is Outstanding. Notwithstanding any other provision of the
Plan, the portion of a “ participant’s” vested interest in his Account that is
held by the Plan as security for a loan outstanding to the “participant” in
accordance with the provisions of this Article shall reduce the amount of
the Account payable at the time of death or distribution, but only if the
reduction is used as repayment of the loan. If less than 100 percent of a “participant’s”
vested interest in his Account (determined without regard to the preceding
sentence) is payable to the “participant’s” surviving spouse or other
Beneficiary, then the Account shall be adjusted by first reducing the “participant’s”
vested interest in his Account by the amount of the security used as repayment
of the loan, and then determining the benefit payable to the surviving spouse
or other Beneficiary.

Article 10. In-Service Withdrawals.

10.01. Availability of In-Service Withdrawals. Except
as otherwise permitted under Section 11.02 with respect to Participants
who continue in employment past Normal Retirement Age, or as required under Section 12.04
with respect to Participants who continue in employment past their Required
Beginning Date, a Participant shall not be permitted to make a withdrawal from
his Account under the Plan prior to retirement or termination of employment with
the Employer and all Related Employers, if any, except as provided in this
Article.

10.02. Withdrawal of Employee Contributions. A
Participant may elect to withdraw, in cash, up to 100 percent of the amount
then credited to his Employee Contributions Account. Such withdrawals may be
made at any time, unless the Employer elects in Subsection 1.18(c)(1)(A) of
the Adoption Agreement to limit the frequency of such withdrawals.

10.03. Withdrawal of Rollover Contributions. A
Participant may elect to withdraw, in cash, up to 100 percent of the amount
then credited to his Rollover Contributions Account. Such withdrawals may be
made at any time.

 42
 

 

 

10.04. Age 591¤2 Withdrawals.
If so provided by the Employer in Subsection 1.18 (b) or the Protected
In-Service Withdrawals Addendum to the Adoption Agreement, a Participant who
continues in employment as an Employee and who has attained the age of 591¤2 is
permitted to withdraw upon request all or any portion of the Accounts specified
by the Employer in Subsection 1.18(b) or the Protected In-Service
Withdrawals Addendum to the Adoption Agreement, as applicable.

10.05. Hardship Withdrawals. If so provided by the
Employer in Subsection 1.18 (a) of the
Adoption Agreement, a Participant who continues in employment as an
Employee may apply to the Administrator for a hardship withdrawal of all or any portion of his Deferral Contributions Account
(excluding any earnings thereon accrued after the later of December 31,
1988 or the last day of the last Plan Year ending before July 1, 1989) and, if so provided by the
Employer in Subsection 1.18(d)(2), such
other Accounts as may be specified in Subsection (c) of the Protected In-Service Withdrawals Addendum
to the Adoption Agreement. The minimum amount that a Participant m ay withdraw because of hardship is $500.

For purposes of
this Section 10.05, a withdrawal is made on account of hardship if made on
account of an immediate and heavy financial need of the Participant where such
Participant lacks other available resources. Determinations with respect to
hardship shall be made by the Administrator and shall be conclusive for purposes of the Plan, and shall be
based on the following special rules:

(a)            The
following are the only financial needs considered immediate and heavy:

(1) expenses incurred or
necessary for medical care (within the meaning of Code Section 213(d)) of
the Participant, the Participant’s spouse, children, or dependents;

(2) the purchase (excluding mortgage payments) of a
principal residence for the Participant;

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

(4) the need to prevent
the eviction of the Participant from, or a foreclosure on the mortgage of, the
Participant’s principal residence; or

(5) any other financial
need determined to be immediate and heavy under rules and regulations
issued by the Secretary of the Treasury or his delegate.

(b)    A
distribution shall be considered as necessary to satisfy an immediate and heavy
financial need of the Participant only if:

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

 43
 

 

(2) The Participant
suspends Deferral Contributions and Employee Contributions to the Plan for the
12-month period following the date of his hardship withdrawal. The
suspension must also apply to all elective contributions
and employee contributions to all other qualified plans and non-qualified
plans maintained by the Employer or any Related Employer, other than any
mandatory employee contribution portion of a defined benefit plan, including stock
option, stock purchase, and other similar plans,
but not including health and welfare benefit plans (other than the cash
or deferred arrangement portion of a cafeteria plan);

(3) The
withdrawal amount is not in excess of the amount of an immediate and heavy
financial need (including amounts necessary to pay any Federal, state or local
income taxes or penalties reasonably anticipated to result from the distribution); and

(4) The Participant
agrees to limit Deferral Contributions (and
“elective deferrals”, as defined in Subsection 6.01(i)) to the Plan and any other qualified plan maintained by the
Employer or a Related Employer for the calendar year immediately
following the calendar year in which the
Participant received the hard ship
withdrawal to the applicable limit under
Code Section 402(g) for such calendar year less the amount of the
Participant’s Deferral Contributions (and “elective deferrals”) for the
calendar year in which the Participant received
the hardship withdrawal.

1006. Preservation of Prior Plan In-Service Withdrawal
Rules. As indicated by the Employer in Subsection 1.18(d) of the Adoption
Agreement, to the extent required under Code Section 411(d)(6), in-service
withdrawals that were available under a prior plan shall be available under the
Plan.

(a) If the Plan is a
profit sharing plan, the following provisions shall apply to preserve prior
in-service withdrawal provisions.

(1) If the Plan is an amendment and restatement of a prior plan or is a
transferee plan of a prior plan that provided for in-service withdrawals
from a Participant’s Matching Employer and/or Nonelective Employer
Contributions Accounts of amounts that have been held in such Accounts for a
specified period of time, a Participant shall be entitled to withdraw at any time prior to his termination of
employment, subject to any
restrictions applicable under the prior plan that the Employer elects in
Subsection 1.18 (d)(1)(A)(i) of the Adoption Agreement to continue
under the Plan as amended and restated hereunder (other than any mandatory
suspension of contributions restriction), any vested amounts held in such Accounts for the period of time
specified by the Employer in Subsection
1.18(d)(1)(A) of the Adoption Agreement.

(2) If the Plan is
an amendment and restatement of a prior plan or is a transferee plan of a prior
plan that provided for in-service withdrawals from a Participant’s Matching
Employer and/or Nonelective Employer Contributions Accounts by Participants
with at least 60 months of participation, a Participant with at least 60 months
of participation shall be entitled to withdraw at any time prior to his
termination of employment, subject to any restrictions applicable under the
prior plan that the Employer elects in Subsection 1.18(d)(1)(B)(i) of the
Adoption Agreement to continue under the Plan as amended and restated hereunder
(other than any mandatory suspension of contributions restriction), any vested
amounts held in such Accounts.

 44
 

 

(3) If the Plan is
an amendment and restatement of a prior plan or is a transferee plan of a prior plan that provided for in-service withdrawals
from a Participant’s Matching Employer and/or Nonelective Employer
Contributions Accounts under any other circumstances, a Participant who has met
any applicable requirements, as set forth in the Protected In Service Withdrawals Addendum to the Adoption
Agreement, shall be entitled to withdraw at any time prior to his termination
of employment any vested amounts held in such Accounts, subject to any
restrictions applicable under the prior plan
that the Employer elects to continue under the Plan as amended and
restated hereunder, as set forth in the Protected In Service Withdrawal Addendum to the Adoption Agreement.

(b) If the Plan is a
money purchase pension plan that is an amendment and restatement of a prior
profit sharing plan or is a transferee plan of a prior profit sharing plan that
provided for in-service withdrawals from any portion of a Participant’s Account
other than his Employee Contributions and/or Rollover Contributions Accounts, a
Participant who has met any applicable requirements, as set forth in the
Protected in-Service Withdrawals Addendum to the Adoption Agreement, shall be
entitled to withdraw at any time prior to his termination of employment his
vested interest in amounts attributable to such prior profit sharing accounts,
subject to any restrictions applicable under the prior plan that the Employer
elects to continue under the Plan as amended and restated hereunder (other than
any mandatory suspension of contributions restriction), as set forth in the
Protected In-Service Withdrawal Addendum to the Adoption Agreement.

10.07.
Restrictions on In-Service Withdrawals. The following restrictions apply to any
in-service withdrawal made from a Participant’s Account under this Article:

(a) If the provisions of Section 14.04
apply to a Participant’s Account, the Participant must obtain the consent of
his spouse, if any, to obtain an in-service withdrawal.

(b) In-service
withdrawals shall be made in a lump sum payment, except that if the provisions
of Section 14.04 apply to a Participant’s Account, the Participant may
receive the in-service withdrawal in the form of a “qualified joint and
survivor annuity”, as defined in Subsection 14.01(a).

(c) Notwithstanding any
other provision of the Plan to the contrary other than the provisions of Section 11.02,
a Participant shall not be permitted to make an in-service withdrawal from his
Account of amounts attributable to contributions made to a money purchase
pension plan, except employee and/or rollover contributions that were held in a
separate account(s) under such plan.

10.08. Distribution of Withdrawal Amounts. The
Employer shall confirm the order in which the Permissible Investments shall be
liquidated in order that the withdrawal amount can be distributed.

Article 11. Right to Benefits.

11.01. Normal or Early Retirement. Each Participant
who continues in employment as an Employee
until his Normal Retirement Age or, if so provided by the Employer in Subsection
1.13(b) of the Adoption Agreement, Early Retirement Age, shall have

 45
 

 

a vested interest in his Account of 100 percent
regardless of any vesting schedule elected in Section 1.15 of the Adoption
Agreement. If a Participant retires upon the attainment of Normal or Early
Retirement Age, such retirement is referred to as a normal retirement.

11.02. Late Retirement. If a Participant continues in
employment as an Employee after his Normal Retirement Age, he shall continue to
have a 100 percent vested interest in his Account and shall continue to
participate in the Plan until the date he
establishes with the Employer for his late retirement. Until he retires,
he has a continuing election to receive all or any portion of his Account.

11.03. Disability Retirement. If so provided by the
Employer in Subsection 1.13(c) of the Adoption Agreement, a Participant
who becomes disabled while employed as an Employee shall have a 100 percent
vested interest in his Account regardless of any vesting schedule elected in Section 1.15
of the Adoption Agreement. An Employee is considered disabled if he satisfies
any of the requirements for disability retirement selected by the Employer in Section 1.14
of the Adoption Agreement and terminates his employment with the Employer. Such
termination of employment is referred to as a disability retirement. Determinations
with respect to disability shall be made by the Administrator.

11.04. Death. If a Participant who is employed as an
Employee dies, his Account shall become 100 percent vested and his designated
Beneficiary shall be entitled to receive the balance of his Account, plus any
amounts thereafter credited to his Account. If a Participant whose employment
as an Employee has terminated dies, his designated Beneficiary shall be
entitled to receive the Participant’s vested interest in his Account.

A copy of the death notice or other sufficient
documentation must be filed with and approved by the Administrator. If upon the
death of the Participant there is, in the opinion of the Administrator, no
designated Beneficiary for part or all of the Participant’s Account, such
amount shall be paid to his surviving spouse or, if none, to his estate (such
spouse or estate shall be deemed to be the Beneficiary for purposes of the
Plan). If a Beneficiary dies after benefits to such Beneficiary have commenced,
but before they have been completed, and, in the opinion of the Administrator,
no person has been designated to receive such remaining benefits, then such
benefits shall be paid in a lump sum to the deceased Beneficiary’s estate.

Subject to the requirements of Section 14.04, a
Participant may designate a Beneficiary, or change any prior designation of
Beneficiary by giving notice to the Administrator on a form designated by the
Administrator. If more than one person is designated as the Beneficiary, their
respective interests shall be as indicated on the designation form. In the case
of a married Participant, the Participant’s spouse shall be deemed to be the
designated Beneficiary unless the Participant’s spouse has consented to another
designation in the manner described in Section 14.06.

11.05. Other Termination of Employment. If a
Participant terminates his employment with the Employer and all Related
Employers, if any, for any reason other than death or normal, late, or
disability retirement, he shall be entitled to a termination benefit equal to
the sum of (a) his vested interest in the balance of his Matching Employer
and/or Nonelective Employer Contributions Account(s), other than the balance
attributable to safe harbor Matching Employer and/or safe harbor Nonelective
Employer Contributions elected by the Employer in Subsection 1.10(a)(3) or 1.11(a)(3) of
the Adoption Agreement, such vested

 46
 

 

interest to be determined in accordance with the
vesting schedule(s) selected by the Employer in Section 1.15 of the
Adoption Agreement, and (b) the balance of his Deferral, Employee,
Qualified Nonelective Employer, Qualified Matching Employer, and Rollover
Contributions Accounts, and the balance of his Matching Employer or Nonelective
Employer Contributions Account that is attributable to safe harbor Matching
Employer and/or safe harbor Nonelective Employer Contributions.

11.06. Application for Distribution. Unless a
Participant’s Account is cashed out as provided in Section 13.02, a
Participant (or his Beneficiary, if the Participant has died) who is entitled
to a distribution hereunder must make application, in a form acceptable to the
Administrator, for a distribution from his Account. No distribution shall be
made hereunder without proper application therefore, except as otherwise
provided in Section 13.02.

11.07. Application of Vesting Schedule Following
Partial Distribution. If a distribution from a Participant’s Matching Employer
and/or Nonelective Employer Contributions Account has been made to him at a
time when he is less than 100 percent vested in such Account balance, the
vesting schedule(s) in Section 1.15 of the Adoption Agreement shall
thereafter apply only to the balance of his Account attributable to Matching
Employer and/or Nonelective Employer Contributions allocated after such
distribution. The balance of the Account from which such distribution was made
shall be transferred to a separate account immediately following such
distribution.

At any relevant time prior to a forfeiture of any
portion thereof under Section 11.08, a
Participant’s vested interest in such separate account shall be equal to
P(AB + (RxD))-(RxD), where P is the Participant’s vested interest at the relevant
time determined under Section 11.05; AB is the account balance of the separate
account at the relevant time; D is the amount of the distribution; and R is the
ratio of the account balance at the relevant time to the account balance after
distribution. Following a forfeiture of any portion of such separate account
under Section 11.08 below, any balance in the Participant’s separate account
shall remain 100 percent vested.

11.08.
Forfeitures. If a Participant terminates his employment with the Employer and all
Related Employers before he is 100 percent vested in his Matching Employer
and/or Nonelective Employer Contributions Accounts, the non-vested portion of
his Account (including any amounts credited after his termination of employment)
shall be forfeited by him as follows:

(a) If the Inactive
Participant elects to receive distribution of his entire vested interest in his
Account, the non-vested portion of his Account shall be forfeited upon the
complete distribution of such vested interest, subject to the 11.10. For
possibility of reinstatement as provided in Section  purposes of this
Subsection, if the value of an Employee’s vested interest in his Account
balance is zero, the Employee shall be deemed to have received a distribution
of his vested interest immediately following termination of employment.

(b) If the
Inactive Participant elects not to receive distribution of his vested interest
in his Account following his termination of employment, the non-vested portion
of his Account shall be forfeited after the Participant has incurred five
consecutive Breaks in Vesting Service.

 47
 

 

No forfeitures shall occur solely as a result of a
Participant’s withdrawal of Employee Contributions.

11.09. Application of Forfeitures. Any forfeitures
occurring during a Plan Year shall be applied to reduce the contributions of
the Employer, unless the Employer has
elected in Subsection 1.15(d)(3) of the Adoption Agreement that such remaining
forfeitures shall be allocated among the Accounts of Active Participants who
are eligible to receive allocations of Nonelective Employer Contributions for the Plan Year in which the
forfeiture occurs. Forfeitures that are allocated among the Accounts of
eligible Active Participants shall be allocated
in the same manner as Nonelective Employer Contributions. If the plan is a
money purchase pension plan or the
Employer has elected a fixed Nonelective Employer Contribution rate
rather than a discretionary rate,
forfeitures shall incrementally increase the amount allocated to the
Accounts of eligible Active Participants. Notwithstanding any other provision
of the Plan to the contrary, forfeitures may
first be used to pay administrative expenses under the Plan, as directed by the
Employer. To the extent that forfeitures are not used to reduce administrative expenses under the Plan, as
directed by the Employer, forfeitures will
be applied in accordance with this Section 11.09.

Pending application, forfeitures shall be held in the
Permissible Investment selected by the Employer for such purpose or, absent
Employer selection, in the most conservative Permissible Investment designated
by the Employer in the Service Agreement.

Notwithstanding any other
provision of the Plan to the contrary, in no event may forfeitures be
used to reduce the Employer’s obligation to remit to the Trust ( or other
appropriate Plan funding vehicle) loan repayments made pursuant to Article 9, Deferral Contributions or
Employee Contributions.

11.10.
Reinstatement of Forfeitures. If a Participant forfeits any portion of his
Account under Subsection 11.08(a) because of distribution of his complete vested interest in his Account, but again becomes
an Employee, then the amount so forfeited, without any adjustment for the
earnings, expenses, losses, or gains of the assets credited to his Account since the date forfeited, shall be
recredited to his Account (or
to a separate account as described in Section 11.07, if applicable) if he
meets all of the following requirements:

(a) he again
becomes an Employee before the date he incurs five-consecutive Breaks in
Vesting Service following the date complete distribution of his vested interest
was made to him; and

(b) he repays to
the Plan the amount previously distributed to him, without interest, within
five years of his Reemployment Date. If an Employee is deemed to have received
distribution of his complete vested interest as provided in Section 11.08,
the Employee shall be deemed to have repaid such distribution on his
Reemployment Date.

Upon such an actual or deemed repayment, the
provisions of the Plan (including Section 11.07)
shall thereafter apply as if no forfeiture had occurred. The amount to be
recredited pursuant to this paragraph shall be derived first from the
forfeitures, if any, which as of the date of recrediting have yet to be applied
as provided in Section 11.09 and, to the extent such forfeitures are
insufficient, from a special contribution to be made by the Employer.

 48

 

11.11. Adjustment for Investment Experience. If any
distribution under this Article 11 is not made in a single payment, the
amount retained by the Trustee after the distribution shall be subject to
adjustment until distributed to reflect the income and gain or loss on the
investments in which such amount is invested and any expenses properly charged
under the Plan and Trust to such amounts.

Article 12.
Distributions.

12.01. Restrictions on Distributions. A Participant, or his Beneficiary, may not receive
a distribution from his Deferral Contributions, Qualified Nonelective Employer
Contributions, Qualified Matching Employer Contributions, safe harbor Matching Employer Contributions or safe harbor
Nonelective Employer Contributions Accounts earlier than upon the
Participant’s separation from service with the Employer and all Related
Employers, death, or disability, except as otherwise provided in Article 10, Section 11.02 or Section 12.04.
Notwithstanding the foregoing, amounts may
also be distributed from such Accounts, in the form of a lump sum only, upon

(a) Termination of
the Plan without establishment of another defined contribution plan, other than
an employee stock ownership plan (as defined in Code Section 4975(e) or
409) or a simplified employee pension plan as defined in Code Section 408(k).

(b) The
disposition by a corporation to an unrelated corporation of substantially all
of the assets (within the meaning of Code Section 409 (d)(2)) used in a
trade or business of such corporation if such corporation continues to maintain
the Plan after the disposition, but only with respect to former Employees who
continue employment with the corporation acquiring such assets.

(c) The
disposition by a corporation to an unrelated entity of such corporation’s
interest in a subsidiary (within the meaning of Code Section 409 (d)(3))
if such corporation continues to maintain this Plan, but only with respect to
former Employees who continue employment with such subsidiary.

12.02. Timing of Distribution
Following Retirement or Termination of Employment. Except as otherwise
elected by the Employer in Subsection 1.20(b) and provided in the Postponed Distribution Addendum to the
Adoption Agreement, the balance of a Participant’s vested interest in
his Account shall be distributable upon his termination of employment with the
Employer and all Related Employers, if any, be cause of death, normal, early,
or disability retirement (as permitted under the Plan), or other termination of
employment. Notwithstanding the foregoing, a Participant whose vested interest
in his Account exceeds $5,000 as determined under Section 13.02 (or such
larger amount as may be specified in Code Section 417 (e)(1)) may elect to postpone distribution of his
Account until his Required Beginning Date. A Participant who elects to
postpone distribution has a continuing election to receive such distribution
prior to the date as of which distribution
is required, unless such Participant is reemployed as an Employee.

12.03. Participant Consent to Distribution. If a
Participant’s vested interest in his Account exceeds $5,000 as determined under
Section 13.02 (or such larger amount as may be specified in Code Section 417(e)(1)),
no distribution shall be made to the Participant before he reaches his Normal
Retirement Age (or age 62, if later), unless the consent of the Participant has
been obtained. Such consent

 49
 

 

shall be made within the 90-day period ending on
the Participant’s Annuity Starting Date.

The consent of the Participant’s spouse must also be
obtained if the Participant’s Account is subject to the provisions of Section 14.04,
unless the distribution shall be made in the form of a “qualified joint and
survivor annuity” as defined in Section 14.01. A spouse’s consent to early
distribution, if required, must satisfy the requirements of Section 14.06.

Neither the consent of the
Participant nor the Participant’s spouse shall be required to the extent
that a distribution is required to satisfy Code Section 40 (a)(9) or
Code Section 415. In addition, upon termination of the Plan if it 1 does
not offer an annuity option (purchased from a commercial provider) and if the
Employer or any Related Employer does not maintain another defined contribution plan (other than an employee stock
ownership plan as defined in Code Section 4975(e)(7)) the
Participant’s Account shall, without the Participant’s consent, be distributed
to the Participant. However, if any Related Employer maintains another defined
contribution plan (other than an employee stock ownership plan as defined in Code
Section 4975(e)(7)) then the Participant’s Account shall be transferred,
without the Participant’s consent, to the other plan if the Participant does
not consent to an immediate distribution.

12.04. Required
Commencement of Distribution to Participants. In no event shall distribution to
a Participant commence later than the earlier of the dates described in (a) and
(b) below:

(a) unless the
Participant (and his spouse, if appropriate) elects otherwise, the 60th day
after the close of the Plan Year in which occurs the latest of (i) the
date on which the Participant attains Normal Retirement Age, or age 65, if
earlier, (ii) the date on which the Participant’s employment with the
Employer and all Related Employers ceases, or (iii) the 10th anniversary
of the year in which the Participant commenced participation in the Plan; and

(b) the Participant’s Required Beginning Date.

Notwithstanding
the provisions of Subsection 12.04(a) above, the failure of a Participant (and the Participant’s spouse, if
applicable) to consent to a distribution as
required under Section 12.03, shall be deemed to be an election to
defer commencement of payment as provided in Subsection 12.04(a) above.

12.05. Required
Commencement of Distribution to Beneficiaries. If a Participant die s before
his Annuity Starting Date, the Participant’s Beneficiary shall receive
distribution of the Participant’s vested interest in his Account in the form
provided under Article 13 or 14, as applicable, beginning as soon as
reasonably practicable following the date the Beneficiary’s application for
distribution is filed with the Administrator. Unless distribution is to be made
over the life or over a period certain not greater than the life expectancy of
the Beneficiary, distribution of the Participant’s entire vested interest shall
be made to the Beneficiary no later than the end of the fifth calendar year
beginning after the Participant’s death. If distribution is to be made over the
life or over a period certain no greater than the life expectancy of the
Beneficiary, distribution shall commence no later than:

(a) If the Beneficiary is not the Participant’s
spouse, the end of the first calendar year beginning after the
Participant’s death; or

 50
 

 

(b) If the
Beneficiary is the Participant’s spouse, the later of (i) the end of the
first calendar year beginning after the Participant’s death or (ii) the
end of the calendar year in which the Participant would have attained age 701/2

If distribution is to be made to a Participant’s
spouse, it shall be made available within a reasonable period of time after the
Participant’s death that is no less favorable than the period of time
applicable to other distributions. In the event such spouse dies prior to the date distribution commences, he shall be
treated for purposes of this Section 12.05 (other than Subsection 12.05(b) above)
as if he were the Participant. Any amount paid to a child of the Participant
shall be treated as if it had been paid to the surviving spouse if the amount becomes payable to the surviving spouse
when the child reaches the age of majority.

If the Participant has not designated a Beneficiary,
or the Participant or Beneficiary
has not effectively selected a method of
distribution, distribution of the
Participant’s benefit shall be completed by the close of the calendar year in
which the fifth anniversary of the death of the Participant occurs.

If a Participant dies on or after his Annuity Starting
Date, but before his entire vested interest in his Account is distributed, his
Beneficiary shall receive distribution of the remainder of the Participant’s
vested interest in his Account
beginning as soon as reasonably practicable following the Participant’s date
of death in a form that provides for distribution at least as rapidly as under
the form in which the Participant was receiving distribution.

12.06. Whereabouts of
Participants and Beneficiaries. The Administrator shall at all times be
responsible for determining the whereabouts of each Participant or Beneficiary who may be entitled to benefits under the
Plan and shall at all times be responsible for instructing the Trustee
in writing as to the current address of each
such Participant or Beneficiary. The Trustee shall be entitled to rely on the
latest written statement received from the Administrator as to such addresses. The Trustee shall be under no duty to
make any distributions under the Plan unless and until it has received written
instructions from the Administrator satisfactory
to the Trustee containing the name and address of the distributee, the time when the distribution is to occur, and the
form which the distribution shall
take.

Notwithstanding the foregoing, if the Trustee attempts
to make a distribution in accordance with the Administrator’s instructions but
is unable to make such distribution because the whereabouts of the distributee
is unknown, the Trustee shall notify the Administrator of such situation and
thereafter the Trustee shall be under no duty to make any further distributions
to such distributee until it receives further written instructions from the
Administrator.

If the Administrator is unable after diligent attempts
to locate a Participant or Beneficiary who is entitled to a benefit under the
Plan, the benefit otherwise pa able to such Participant or Beneficiary shall be
forfeited and applied as y provided in Section 11.09. If a benefit is
forfeited because the Administrator determines that the Participant or
Beneficiary cannot be found, such benefit shall be reinstated by the Employer
if a claim is filed by the Participant or Beneficiary with the Administrator
and the Administrator confirms the claim to the Employer. Notwithstanding the
above, forfeiture of a Participant’s or Beneficiary’s benefit may occur only if
a distribution could be made to the Participant
or Beneficiary without obtaining the Participant’s or Beneficiary’s

 51
 

 

consent in accordance with the requirements of Section 1.411(a)-11
of the Treasury Regulations.

Article 13. Form of Distribution.

13.01. Normal Form of Distribution Under Profit
Sharing Plan. Unless the Plan is a money purchase pension plan subject to the
requirements of Article 14, or a Participant’s
Account is otherwise subject to the requirements of Section 14.03 or 14.04, distributions to a Participant or to the
Beneficiary of the Participant shall be made in a lump sum in cash or,
if elected by the Participant (or the Participant’s
Beneficiary, if applicable) and provided
by the Employer in Section 1.19 of the Adoption Agreement, under a systematic withdrawal plan
(installments). A Participant (or the Participant’s Beneficiary, if applicable)
who is receiving distribution under a systematic withdrawal plan may elect to
accelerate installment payments or to receive a lump sum distribution of the
remainder of his Account balance. Distribution may also be made hereunder in
any non-annuity form that is a protected benefit and is provided by the
Employer in Section 1.19(d) of the Adoption Agreement.

Notwithstanding anything herein to the contrary, if a
distribution to a Participant commences on the Participant’s Required Beginning
Date as determined under Subsection 2.01(ss), the Participant may elect to
receive distributions under a systematic withdrawal plan that provides the
minimum distributions required under Code Section 401(a)(9).

Distributions shall be made in
cash, except that distributions may be made in Fund Shares of marketable
securities (as defined in Code Section 731(c)(2)), other than Fund Shares
of Employer Stock, at the election of the Participant, pursuant to the
qualifying rollover of such distribution to a Fidelity Investments individual
retirement account. A distribution may be made in the form of Fund Shares of
Employer Stock or an in-kind distribution of Plan investments that are not marketable securities only if and to the extent
provided in Section 1.19 (d) of the Adoption Agreement;
provided, however, that notwithstanding any
other provision of the Plan to the contrary, the right of a Participant
to receive a distribution in the form of Fund Shares of Employer Stock or an
in-kind distribution of Plan investments that are not marketable securities applies only to that portion of the
Participant’s Account invested in such form at the time of distribution.

13.02. Cash Out Of Small Accounts. Notwithstanding any
other provision of the Plan to the contrary, if a Participant’s vested interest
in his Account is $5,000 (or such larger amount as may be specified in Code Section 417(e)(1))
or less, the Participant’s vested interest in his Account shall be distributed
in a lump sum as soon as practicable following the Participant’s termination of
employment because of retirement, disability, death or other termination of
employment. For purposes of this Section, until final Treasury Regulations are
issued to the contrary, if either (a) a Participant has commenced
distribution of his Account under a systematic withdrawal plan or (b) his
Account is subject to the provisions of Section 14.04 and the Participant’s
Annuity Starting Date has occurred with respect to amounts currently held in
his Account, the Participant’s vested interest in his Account shall be deemed to
exceed $5,000 (or such larger amount as may be
specified in Code Section 417(e)(1)) if the Participant’s vested interest in such
amounts exceeded such dollar amount on the Participant’s Annuity Starting Date.

 52
 

 

Notwithstanding the provisions of this Section 13.02,
the Employer may determine not to cash out Participant Accounts in accordance
with the foregoing provisions, provided that such determination is uniform with
respect to all Participants and non-discriminatory.

13.03. Minimum Distributions. This Section applies
to distributions under a systematic withdrawal plan that are made on or after a
Participant’s Required Beginning Date or his date of death, if earlier. This Section shall
be interpreted and applied in accordance with the regulations under Code Section 401
(a)(9), including the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2
of the Proposed Treasury Regulations, or any successor regulations of similar
import.

Distribution must be made in substantially equal
annual, or more frequent, installments, in cash, over a period certain which
does not extend beyond the life expectancy or joint life expectancies of the
Participant and his Beneficiary or, if the Participant dies prior to the
commencement of distributions from his Account, the life expectancy of the
Participant’s Beneficiary. The amount to be distributed for each calendar year
for which a minimum distribution is required shall be at least an amount equal
to the quotient obtained by dividing the Participant’s interest in his Account
by the life expectancy of the Participant or Beneficiary or the joint life and
last survivor expectancy of the Participant and his Beneficiary, whichever is
applicable. The amount to be distributed for each calendar year shall not be
less than an amount equal to the quotient obtained by dividing the Participant’s
interest in his Account by the lesser of (a) the applicable life
expectancy, or (b) if a Participant’s Beneficiary is not his spouse, the
applicable divisor determined under Section 1.401(a)(9)-2, Q&A 4
of the Proposed Treasury Regulations, or any successor regulations of similar
import. Distributions after the death of the Participant shall be made using
the applicable life expectancy under (a) above, without regard to Section 1.401(a)(9)-2
of such regulations. For purposes of this Section 13.03, life expectancy
and joint life and last survivor expectancy shall be computed by use of the
expected return multiples in Table V and VI of Section 1.72-9 of the
Treasury Regulations.

For purposes of this Section 13.03,
the life expectancy of a Participant or a Beneficiary who is the
Participant’s surviving spouse shall be recalculated
annually unless the Participant or the Participant’s spouse irrevocably
elects otherwise prior to the time distributions are required to begin. If not
recalculated in accordance with the foregoing, life expectancy shall be calculated using the attained age of the
Participant or Beneficiary, whichever is applicable, as of such
individual’s birth date in the first year for which a minimum distribution is
required reduced by one for each elapsed calendar year since the date life expectancy was first calculated.

If the Participant dies after distribution of his
benefits has begun, distributions to the Participant’s Beneficiary shall be
made at least as rapidly as under the method of distribution being used as of
the date of the Participant’s death.

A Participant’s interest in his Account for purposes
of this Section 13.03 shall be determined as of the last valuation date in
the calendar year immediately preceding the calendar year for which a minimum
distribution is required, increased by the amount of any contributions
allocated to, and decreased by any
distributions from, such Account after the valuation date. Any distribution for the first year for which a minimum
distribution is required made

 53
 

 

after the close of such year shall be treated as if
made prior to the close of such year.

The Administrator shall notify the Trustee in writing
whenever a distribution is necessary in order to comply with the minimum
distribution rules set forth in this Section 13.03.

13. 04. Direct Rollovers. Notwithstanding any other
provision of the Plan to the contrary,
a “distributee” may elect, at the time and in the manner prescribed by the
Administrator, to have any portion or all of an “eligible rollover distribution”
paid directly to an “eligible retirement plan” specified by the “distributee” in a direct rollover; provided,
however, that this provision shall not
apply if the total “eligible rollover distribution” that the “distributee” is
reasonably expected to receive for the calendar year is less than $200 and that
a “distributee” may not elect a direct rollover with respect to a
portion of an “eligible rollover distribution” if such portion totals less than
$500. For purposes of this Section 13.04,
the following definitions shall apply:

(a) “Distributee”
means a Participant , the Participant’s surviving spouse, and the Participant’s
spouse or former spouse who is the alternate payee under a qualified domestic
relations order, who is entitled to receive a distribution from the Participant’s
vested interest in his Account.

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

(c) “Eligible
rollover distribution” means 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 the following:

(1) any
distribution that is one o f 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;

(2) any
distribution to the extent such distribution is required under Code Section 401(a)(9);

(3) 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);

(4) any hardship
withdrawal of Deferral Contributions made in accordance with the provisions of Section 10.05
or the Protected In-Service Withdrawals Addendum to the Adoption Agreement.

13.05. Notice Regarding Timing and Form of
Distribution. Within the period beginning 90
days before a Participant’s Annuity Starting Date and ending 30 days before such date, the Administrator shall provide
such Participant with written notice containing a general description of
the material features and an explanation of the relative values of the forms of
benefit available under the

 54
 

 

Plan and informing the Participant of his right to
defer receipt of the distribution until his Required Beginning Date and his
right to make a direct rollover.

Distribution may
commence fewer than 30 days after such notice is given, provided that:

(a) the
Administrator clearly informs the Participant that the Participant has a right
to a period of at least 30 days after receiving the notice to consider the
decision of whether or not to elect a distribution (and, if applicable, a
particular distribution option);

(b) the
Participant, after receiving the notice, affirmatively elects a distribution,
with his spouse’s written consent, if necessary;

(c) if the
Participant’s Account is subject to the requirements of Section 14.04, the following additional requirements
apply:

(1) the
Participant is permitted to revoke his affirmative distribution election at any
time prior to the later of (A) his Annuity Starting Date or (B) the
expiration of the seven-day period beginning the day after such notice is
provided to him; and

(2) distribution does not
begin to such Participant until such revocation period ends.

13.06. Determination of Method of Distribution.
Subject to Section 13.02, the Participant
shall determine the method of distribution of benefits to himself and may
determine the method of distribution to his
Beneficiary. Such determination shall be made prior to the time benefits
become payable under the Plan. If the Participant
does not determine the method of distribution to his Beneficiary or if
the Participant permits his Beneficiary to override his determination, the Beneficiary, in the event of the Participant’s
death, shall determine the method of distribution of benefits to himself
as if he were the Participant. A determination by the Beneficiary must be made
no later than the close of the calendar year in which distribution would be
required to begin under Section 12.05 or, if earlier, the close of the calendar year in which the fifth
anniversary of the death of the Participant occurs.

13.07. Notice to Trustee. The Administrator shall
notify the Trustee in any medium acceptable to the Trustee, which may be
specified in the Service Agreement, whenever any Participant or Beneficiary is
entitled to receive benefits under the Plan. The Administrator’s notice shall
indicate the form of payment of benefits
that such Participant or Beneficiary shall receive, (in the case of distributions to a Participant) the name
of any designated Beneficiary or Beneficiaries, and such other
information as the Trustee shall require.

Article 14. Superseding Annuity Distribution
Provisions.

14.01. Special
Definitions. For purposes of this Article, the following special definitions shall apply:

(a) “Qualified
joint and survivor annuity” means (1) if the Participant is not married on
his Annuity Starting Date, an immediate annuity payable for the life of the
Participant or (2) if the Participant is married on his

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Annuity
Starting Date, an immediate annuity for the life of the Participant with a
survivor annuity for the life of the Participant’s spouse (to whom the
Participant was married on the Annuity Starting Date) which is equal to at
least 50 percent of the amount of the annuity which is payable during the joint
lives of the Participant and such spouse, provided that the survivor annuity
shall not be payable to a Participant’s spouse if such spouse is not the same
spouse to whom the Participant was married on his Annuity Starting Date.

(b) “Qualified
preretirement survivor annuity” means an annuity purchased with at least 50
percent of a Participant’s vested interest in his Account that is payable for
the life of a Participant’s surviving spouse. The Employer shall specify that
portion of a Participant’s vested interest in his Account that is to be used to
purchase the “qualified preretirement survivor annuity” in Section 1.19 of
the Adoption Agreement.

14.02.
Applicability. The provisions of this Article shall apply to a Participant’s
Account if:

(a) the Plan is a money purchase pension plan;

(b) the Plan is an
amendment and restatement of a plan that provided an annuity form of payment
and such form of payment has not been eliminated pursuant to Subsection 1.19(e)
and the Forms of Payment Addendum to the Adoption Agreement;

(c) the
Participant’s Account contains assets attributable to amounts directly or
indirectly transferred from a plan that provided an annuity form of payment and
such form of payment has not been eliminated pursuant to Subsection 1.19 (e) and
the Forms of Payment Addendum to the Adoption Agreement.

14.03. Annuity Form of
Payment. To the extent provided in Section 1.19 of the Ad option
Agreement, a Participant may elect distributions made in whole or in par t in
the form of an annuity contract. Any annuity contract distributed under the
Plan shall be subject to the provisions of this Section 14.03 and, to the
extent provided therein, Sections 14.04 through 14.09.

(a) At the
direction of the Administrator, the Trustee shall purchase the annuity contract
on behalf of a Participant or Beneficiary from an insurance company. Such
annuity contract shall be nontransferable.

(b) The terms of
the annuity contract shall comply with the requirements of the Plan and
distributions under such contract shall be made in accordance with Code Section 401(a)(9) and
the regulations there under.

(c) The annuity
contract may provide for payment over the life of the Participant and, upon the
death of the Participant, may provide a survivor annuity continuing for the
life of the Participant’s designated Beneficiary. Such an annuity may provide
for an annuity certain feature for a period not exceeding the life expectancy
of the Participant or, if the annuity is payable to the Participant and a
designated Beneficiary, the joint life and last survivor expectancy of the
Participant and such Beneficiary. If the Participant dies prior to his Annuity
Starting Date, the annuity contract distributed to the Participant’s
Beneficiary may provide for payment over the life of the Beneficiary, and may
provide for an annuity certain feature for a

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period
not exceeding the life expectancy of the Beneficiary. The types of annuity
contracts provided under the Plan shall be limited to the types of annuities
described in Section 1.19 and the Forms of Payment Addendum to the
Adoption Agreement.

(d) The annuity contract must provide for
nonincreasing payments.

14.04. “Qualified
Joint and Survivor Annuity” and “Qualified Preretirement Survivor Annuity”
Requirements. The requirements of this Section 14.04 apply to a
Participant’s Account if:

(a) the Plan is a money purchase pension plan;

(b) the Plan is a
profit sharing plan and the Employer has selected distribution in the form of a
life annuity as the normal form of distribution with respect to such
Participant’s Account in Subsection 1.19(c)(2)(B) of the Adoption
Agreement; or

(c) the Plan is a
profit sharing plan and the Employer has specified distribution in the form of
a life annuity as the normal form of distribution in Subsection (c)(2)(B) of
the Forms of Payment Addendum to the Adoption Agreement and the Participant’s
Annuity Starting Date occurs prior to the date specified in Subsection (c)(4)
of the Forms of Payment Addendum to the Adoption Agreement;

(d) the
Participant is permitted to elect and has elected distribution in the form of
an annuity contract payable over the life of the Participant.

If a Participant’s Account is subject to the
requirements of this Section 14.04, distribution shall be made to the
Participant in the form of a “qualified joint and survivor annuity” (with a survivor annuity in the
percentage amount specified by the Employer in Subsection 1.19 of the
Adoption Agreement), unless the Participant waives the “qualified joint and
survivor annuity” as provided in Section 14.05. If the Participant dies
prior to his Annuity Starting Date, distribution shall be made to the
Participant’s surviving spouse, if any, in the form of a “qualified
preretirement survivor annuity”, unless the Participant waives the “qualified
preretirement survivor annuity” as provided in Section 14.05, or the
Participant’s surviving spouse elects in writing to receive distribution in one of the other forms of payment
provided under the Plan. If the Employer has specified in Section 1.19 of
the Adoption Agreement that less than 100 percent of a Participant’s Account
shall be used to purchase the “qualified preretirement survivor annuity”,
distribution of the balance of the Participant’s vested interest in his Account
that is not used to purchase the “qualified preretirement survivor annuity”
shall be distributed to the Participant’s designated Beneficiary in accordance
with the provisions of Sections 11.04 and 12.05.

14.05. Waiver of the “Qualified Joint and Survivor
Annuity” and/or “Qualified Preretirement Survivor Annuity” Rights. A
Participant may waive the “qualified joint
and survivor annuity” described in Section 14.04 and elect another form of
distribution permitted under the Plan
at any time during the 90-day period ending on his Annuity
Starting Date; provided, however, that if the Participant is married, his
spouse must consent in writing to such election as provided in Section 14.06. Spousal consent is not
required if the Participant elects distribution
in the form of a different “qualified joint and survivor annuity”.

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A Participant may waive the “qualified preretirement
survivor annuity” and designate a non-spouse Beneficiary at any time during the
“applicable election period”; provided,
however, that the Participant’s spouse must consent in writing to such election as provided in Section 14.06.
The “applicable election period” begins
on the later of (1) the date the Participant’s Account becomes subject to
the requirements of Section 14.04 or (2) the first day of the Plan
Year in which the Participant attains age 35 or, if he terminates
employment prior to such date, the
date he terminates employment with the Employer and all Related Employers. The “applicable
election period” ends on the earlier of the Participant’s Annuity Starting Date
or the date of the Participant’s death. A Participant whose employment has not terminated may
elect to waive the
“qualified preretirement survivor annuity” prior to the Plan Year in
which he attains age 35, provided that any
such waiver shall cease to be
effective as of the first day of the
Plan Year in which the Participant
attains age 35.

If the Employer has specified in Section 1.19 of the
Adoption Agreement that less than 100 percent of a Participant’s Account shall
be used to purchase the “qualified preretirement survivor annuity”, the
Participant may designate a nonspo use Beneficiary for the balance of the
Participant’s vested interest in his Account that is not used to purchase the “qualified
preretirement survivor annuity”. Such designation shall not be subject to the
spousal consent requirements of Section 14.06.

14.06. Spouse’s Consent to Waiver. A spouse’s written
consent to a Participant’s waiver of the “qualified joint and survivor annuity”
or “qualified preretirement survivor annuity” forms of distribution must
acknowledge the effect of the Participant’s election and must be witnessed by a Plan representative or a
notary public. In addition, the spouse’s written consent must either (a) specify
the form of distribution elected instead of the “qualified joint and survivor annuity”,
if applicable, and that such form may not be changed (except to a “qualified
joint and survivor annuity”) without written spousal consent and specify any
non-spouse Beneficiary designated by the Participant, if applicable, and that
such designation may not be changed without written spousal consent or (b) acknowledge
that the spouse has the right to limit consent as provided in clause (a) above,
but permit the Participant to change the form of distribution elected or the
designated Beneficiary without the spouse’s further consent.

A Participant’s spouse shall be deemed to have given
written consent to a Participant’s waiver if the
Participant establishes to the satisfaction of a Plan representative
that spousal consent cannot be obtained because the spouse cannot be located or
because of other circumstances set forth in Code Section 401(a)(11) and Treasury
Regulations issued there under.

Any written consent given or deemed to have been given
by a Participant’s spouse hereunder shall be irrevocable and shall be effective
only with respect to such spouse and not with respect to any subsequent spouse.

A spouse’s consent to a Participant’s waiver shall be
valid only if the applicable notice described in Section 14.07 or 14.08
has been provided to the Participant.

14.07. Notice Regarding “Qualified Joint and Survivor
Annuity”. The notice provided to a
Participant under Section 14.05 shall include a written explanation of
(a) the terms and conditions of the “qualified joint and survivor annuity”
(b) the Participant’s right to make, provided
herein, and the effect of, an election
to waive the “qualified joint and survivor annuity”, (c) the rights of the Participant’s spouse under Section 14.06,
and (d) the Participant’s right to

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revoke an election
to waive the “qualified joint and survivor annuity” prior to his Annuity
Starting Date.

14.08. Notice
Regarding “Qualified Preretirement Survivor Annuity”. If a Participant’s
Account is subject to the requirements of Section 14.04, the Administrator
shall provide the Participant with a written explanation of the “qualified preretirement survivor annuity”
comparable to the written explanation provided with respect to the “qualified
joint and survivor annuity”, as described in Section 14.07. Such
explanation shall be furnished within whichever of the following periods ends
last:

(a) the period
beginning with the first day of the Plan Year in which the Participant reaches
age 32 and ending with the end of the Plan Year preceding the Plan Year in
which he reaches age 35;

(b) a reasonable
period ending after the Employee becomes an Active Participant;

(c) a reasonable
period ending after Section 14.04 first becomes applicable to the
Participant’s Account; or

(d) in the case of
a Participant who separates from service before age 35, a reasonable period
ending after such separation from service.

For purposes of the preceding sentence, the two-year
period beginning one year prior to the date of the event described in
Subsection 14.08(b), (c) or (d) above, whichever is applicable, and ending
one year after such date shall be considered reasonable, provided, that in the
case of a Participant who separates from service under Subsection 14.08(d) above
and subsequently recommences employment
with the Employer, the applicable period for such Participant shall be redetermined
in accordance with this Section 14.08.

14.09. Former Spouse. For purposes of this Article, a
former spouse of a Participant shall be treated as the spouse or surviving
spouse of the Participant, and a current spouse shall not be so treated, to the
extent required under a qualified domestic relations order, as defined in Code Section 414(p).

Article 15. Top-Heavy Provisions.

15.01.
Definitions. For purposes of this Article, the following special definitions
shall apply:

(a) “Determination date” means, for any Plan Year
subsequent to the first Plan Year, the last day of the preceding Plan Year. For
the first Plan Year of the Plan, “determination date” means the last day of
that Plan Year.

(b) “Determination period” means the Plan Year
containing the “determination date” and the four preceding Plan Years.

(c) “Key employee”
means any Employee or former Employee (and the Beneficiary of any such
Employee) who at any time during the “determination period” was (1) an
officer of the Employer or a Related Employer whose annual Compensation exceeds
50 percent of the dollar limitation under Code Section 415 (b)(1)(A), (2) one
of the ten Employees whose annual Compensation from the Employer or a Related
Employer exceeds the dollar limitation under Code

 59
 

 

Section 415(c)(1)(A) and who owns (or is considered as
owning under Code Section 318) one of the largest interests in the
Employer and all Related Employers, (3) a five percent owner of the
Employer and all Related Employers, or (4) a one percent owner of the
Employer and all Related Employers whose annual Compensation exceeds $150,000.
The determination of who is a “key employee” shall be made in accordance with
Code Section 416 (i)(1) and regulations issued there under.

(d) “Permissive aggregation
group” means the “required aggregation group” plus any other qualified plans of
the Employer or a Related Employer which, when considered as a group with the “required
aggregation group”, would continue to satisfy the requirements of Code Sections
401(a)(4) and 410.

(e) “Required aggregation group” means:

(1)  Each
qualified plan of the Employer or Related Employer in which at least one “key
employee” participates, or has participated at any time during the “determination
period” (regardless of whether the plan has terminated), and

(2)  any
other qualified plan of the Employer or Related Employer which enables a plan
described in Subsection 15.01 (e)(1) above to meet the requirements of
Code Section 401(a)(4) or 410.

(f)              “Top-heavy
plan” means a plan in which any of the following conditions exists:

(1)  the
“top-heavy ratio” for the plan exceeds 60 percent and the Plan is not part of
any “required aggregation group” or “permissive aggregation group”;

(2)  the
plan is a part of a “required aggregation group” but not part of a “permissive
aggregation group” and the “top-heavy ratio” for the “required aggregation
group” exceeds 60 percent; or

(3)  the
plan is a part of a “required aggregation group” and a “permissive aggregation
group” and the “top-heavy ratio” for both groups exceeds 60 percent.

(g)           “Top-heavy
ratio” means:

(1)  With
respect to the Plan, or with respect to any “required aggregation group” or “permissive
aggregation group” that consists solely of defined contribution plans
(including any simplified employee pension, as defined in Code Section 408(k)),
a fraction, the numerator of which is the sum of the account balances of all “key
employees” under the plans as of the “determination date” (including any part
of any account balance distributed during the five-year period ending on the “determination
date”), and the denominator of which is the
sum of all account balances (including any part of any account balance
distributed during the five-year period ending on the “determination date”) of
all participants under the plans as of the “determination date”. Both the
numerator and denominator of the “top-heavy ratio” shall be increased, to the
extent required by Code Section 416, to reflect any contribution which is
due but unpaid as of the “determination
date”.

 60
 

 

(2)  With
respect to any “required aggregation group” or “permissive aggregation group” that includes one or more
defined benefit plans which, during the five-year period ending on the “determination
date”, has covered or could cover an Active
Participant in the Plan, a fraction, the numerator of which is the sum of the account balances under the defined contribution
plans for all “key employees” and the present value of accrued benefits under the defined benefit plans for all “key employees”,
and the denominator of which is the sum of the account balances under the defined contribution plans for all participants
and the present value of accrued
benefits under the defined benefit plans for all participants. Both the
numerator and denominator of the “top-heavy ratio” shall be increased for any
distribution of an account balance or an accrued benefit made during the
five-year period ending on the “determination date”
and any contribution due but unpaid as of the “determination date”.

For purposes of Subsections 15.01(g)(1) and (2) above,
the value of accounts and the present value of accrued benefits shall be
determined as of the most recent “determination date”, except as provided in
Code Section 416 and the regulations issued there under for the first and
second plan years of a defined benefit plan. When aggregating plans, the value
of accounts and accrued benefits shall be calculated with reference to the “determination
dates” that fall within the same calendar year. The present value of accrued
benefits shall be determined using the interest rate and mortality table
specified in Subsection 1.21(b) of the Adoption Agreement.

The accounts and accrued benefits of a Participant who
is not a “key employee” but who was a “key employee” in a prior year, or who
has not performed services for the Employer or any Related Employer at any time
during the five-year period ending on the “determination date”, shall be
disregarded. The calculation of the “top-heavy ratio”, and the extent to which
distributions, rollovers, and transfers are taken into account, shall be made
in accordance with Code Section 416 and the regulations issued there
under. Deductible employee contributions shall not be taken into account for
purposes of computing the “top-heavy ratio”.

For purposes of determining if the Plan, or any other
plan included in a “required aggregation group” of which the Plan is a part, is
a “top-heavy plan”, the accrued benefit in a defined benefit plan of an
Employee other than a “key employee” shall be determined under the method, if
any, that uniformly applies for accrual purposes under all plans maintained by
the Employer or a Related Employer, or, if there is no such method, as if such
benefit accrued not more rapidly than the slowest accrual rate permitted under
the fractional accrual rate of Code Section 411(b)(1)(C).

1502. Application. If the Plan is or becomes a “top-heavy
plan” in any Plan Year or is automatically deemed to be a “top-heavy plan” in
accordance with the Employer’s selection in Subsection 1.21(a)(1) of the
Adoption Agreement, the provisions of this Article shall apply and shall
supersede any conflicting provision in the Plan.

15.03. Minimum Contribution. Except as otherwise
specifically provided in this Section 15.03, the Nonelective Employer
Contributions made for the Plan Year on behalf
of any Active Participant who is not a “key employee” shall not be less than
the lesser of three percent (or such other percentage selected by the Employer in Subsection 1.21(c) of the
Adoption Agreement) of such Participant’s Compensation for the Plan Year or, in the case where neither the
Employer nor any Related Employer
maintains a defined benefit plan which uses the Plan to satisfy

 61
 

 

Code Section 401(a)(4) or 410, the largest
percentage of Employer contributions made
on behalf of any “key employee” for the Plan Year, expressed as a
percentage of the “key employee’s” Compensation for the Plan Year, unless the
Employer has provided in Subsection 1.21(c) of the Adoption Agreement that
the minimum contribution requirement shall be met under the other plan or plans
of the Employer.

The minimum contribution required under this Section 15.03
shall be made to the Account of an Active Participant even though, under other
Plan provisions, the Active Participant would not otherwise be entitled to
receive a contribution, or would have received a lesser contribution for the
Plan Year, because (a) the Active Participant failed to complete the Hours of Service requirement
selected by the Employer in
Subsection 1.10(d) or 1.11(c) of the Adoption Agreement, or (b) the
Participant’s Compensation was less than a stated amount; provided, however,
that no minimum contribution shall be made for a Plan Year to the Account of an
Active Participant who is not employed by the Employer or a Related Employer on
the last day of the Plan Year.

The minimum contribution for the Plan Year made on
behalf of each Active Participant who is not a “key employee” and who is a
participant in a defined benefit plan maintained by the Employer or a Related
Employer shall not be less than five percent of such Participant’s Compensation
for the Plan Year, unless the Employer has provided in Subsection 1.21(c) of
the Adoption Agreement that the minimum contribution requirement shall be met
under the other plan or plans of the
Employer.

That portion of a Participant’s Account that is
attributable to minimum contributions required under this Section 15.03,  to the extent required to be nonforfeitable under Code Section 416(b),
may not be forfeited under Code Section 411(a)(3)(B).

Notwithstanding any other provision of the Plan to the
contrary, for purposes of this Article, Compensation shall include amounts that
are not includable in the gross income of the Participant under a salary
reduction agreement by reason of the application of Code Section 125,
132(f)(4), 402(e)(3), 402(h), or 403(b). Compensation shall generally be based
on the amount actually paid to the Eligible Employee during the Plan Year or
during that portion of the Plan Year during which the Eligible Employee is an
Active Participant, as elected by the Employer in Subsection 1.05(c) of
the Adoption Agreement.

15.04. Modification of Allocation Provisions
to Meet Minimum Contribution Requirements. If the Employer elected a
discretionary Nonelective Employer Contribution in Subsection 1.11(b) of
the Adoption Agreement, the provisions for allocating Nonelective Employer
Contributions described in Subsection 5.10(b) shall be modified as provided
herein to meet the minimum contribution requirements of Section 15.03.

(a)             If the Employer selected the
non-integrated formula in Subsection 1.11(b)(1) of the Adoption Agreement,
Nonelective Employer Contributions shall be allocated as follows:

(1)             Nonelective Employer Contributions
shall be allocated to each eligible Active Participant, as determined under
this Section 15.04, who is not a “key employee” in the same ratio that the
eligible Active Participant’s Compensation for the Plan Year bears to the total
Compensation of all such eligible Active Participants for the Plan Year;
provided, however that such ratio shall not exceed three percent of a

 62
 

 

Participant’s
Compensation for the Plan Year (or such other percentage selected by the
Employer in Subsection 1.21(c) of the Adoption Agreement).

(2) If any Nonelective
Employer Contributions remain after the allocation in Subsection 15.04(a)(1) above,
the remaining Nonelective Employer Contributions shall be allocated to each
eligible Active Participant, as determined under this Section 15.04, who
is a “key employee” in the same ratio that the eligible Active Participant’s
Compensation for the Plan Year bears to the total Compensation of all such
eligible Active Participants for the Plan Year; provided, however that such
ratio shall not exceed three percent of a Participant’s Compensation for the
Plan Year (or such other percentage selected by the Employer in Subsection 1.21(c) of
the Adoption Agreement).

(3) If any
Nonelective Employer Contributions remain after the allocation in Subsection
15.04(a)(2) above, the remaining Nonelective Employer Contributions shall
be allocated to each eligible Active Participant, as determined under this Section 15.04,
in the same ratio that the eligible Active Participant’s Compensation for the
Plan Year bears to the total Compensation of all such eligible Active
Participants for the Plan Year.

(b) If the Employer selected the integrated formula in
Subsection 1.11(b)(2) of the Adoption Agreement, the “permitted disparity limit”,
as defined in Subsection 1.11(b)(2) of
the Adoption Agreement, shall be reduced by the percentage allocated under
Subsection 15.04(b)(1) or (2) below, and the allocation steps in
Subsection 5.10(b)(2) shall be preceded by the following steps:

(1) Nonelective
Employer Contributions shall be allocated to each eligible Active Participant,
as determined under this Section 15.04, who is not a “key employee” in the
same ratio that the eligible Active Participant’s Compensation for the Plan
Year bears to the total Compensation of all such eligible Active Participants
for the Plan Year; provided, however that such ratio shall not exceed three
percent of a Participant’s Compensation for the Plan Year (or such other
percentage selected by the Employer in Subsection 1.21 (c) of the Adoption
Agreement).

(2) If any Nonelective
Employer Contributions remain after the allocation in Subsection 15.04(b)(1) above,
the remaining Nonelective Employer Contributions shall be allocated to each
eligible Active Participant, as determined under this Section 15.04, who
is a “key employee” in the same ratio that the eligible Active Participant’s
Compensation for the Plan Year bears to the total Compensation of all such
eligible Active Participants for the Plan Year; provided, however that such
ratio shall not exceed three percent of a Participant’s Compensation for the
Plan Year (or such other percentage selected by the Employer in Subsection 1.21(c) of
the Adoption Agreement).

(3) If any
Nonelective Employer Contributions remain after the allocation in Subsection
15.04(b)(2) above, the remaining Nonelective Employer Contributions shall
be allocated to each eligible Active Participant in the same ratio that the
eligible Active Participant’s Excess Compensation for the Plan Year bears to
the total Excess Compensation of all eligible Participants for the Plan Year;
provided,

 63
 

 

however, that such ratio
shall not exceed three percent (or such other percentage selected by the
Employer in Subsection 1.21(c) of the Adoption Agreement).

15. 05. Adjustment
to the Limitation on Contributions and Benefits. For Limitation Years beginning
prior to January 1, 2000, if the Plan is a “top-heavy plan”, the number
100 shall be substituted for the number 125 in determining the “defined benefit
fraction”, as defined in Subsection 6.01(f) and the “defined contribution
fraction 6.01(g). However, this”, as defined in Subsection substitution shall
not take effect with respect to the Plan in any Plan Year in which the
following requirements are satisfied:

(a) The Employer
contributions for such Plan Year made on behalf of each eligible Active
Participant, as determined under Section 15.03, who is not a “key employee”
and who is a participant in a defined benefit plan maintained by the Employer
or a Related Employer is not less than 71¤2 percent of
such eligible Active Participant’s Compensation.

(b) The “top-heavy
ratio” for the Plan (or the “required aggregation group” or “permissible
aggregation group”, as applicable) does not exceed 90 percent.

The substitutions of the number 100 for 125 shall not
take effect in any Limitation Year with respect to any Participant for whom no
benefits are accrued or contributions made for the Limitation Year.

15.06. Accelerated Vesting. For
any Plan Year in which the Plan is or is deemed to be a “top-heavy plan”
and all Plan Years thereafter, the top-heavy vesting schedule selected by the Employer in Subsection 1.21(d) of the
Adoption Agreement shall
automatically apply to the Plan. The top-heavy vesting schedule applies to all
benefits within the meaning of Code Section 411(a)(7) except those
already subject to a vesting schedule which
vests at least as rapidly in all cases as the schedule elected in
Subsection 1.21 (d) of the Adoption Agreement, including benefits accrued before the Plan becomes a “top-heavy
plan”. Notwithstanding the foregoing
provisions of this Section 15.06, the top-heavy vesting schedule does not apply to the Account of any Participant who
does not have an Hour of Service after
the Plan initially becomes or is deemed to have become a “top-heavy plan” and
such Employee’s Account attributable to Employer Contributions shall be determined
without regard to this Section 15 .06.

15. 07. Exclusion
of Collectively-Bargained Employees. Notwithstanding any other provision of this Article 15, Employees who
are included in a unit covered by an agreement which the Secretary of
Labor finds to be a collective bargaining agreement
between employee representatives and one or more employers shall not be included
in determining whether or not the Plan is a “top-heavy plan”. In addition, such
Employees shall not be entitled to a minimum contribution under 15.03 or Section
accelerated vesting under Section 15.06, unless otherwise provided in the collective bargaining agreement.

Article 16. Amendment and Termination.

16.01. Amendments by the Employer that do Not Affect
Prototype Status. The Employer reserves the authority through a board of
directors’ resolution or similar action, subject to the provisions of Article 1
and Section 16.04, to

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amend the Plan as
provided herein, and such amendment shall not affect the status of the Plan as a prototype plan.

(a) The Employer
may amend the Adoption Agreement to make a change or changes in the provisions
previously elected by it. Such amendment
may be made either by (1) completing an amended Adoption Agreement
on which the Employer has indicated the change or changes, or (2) adopting
an amendment, executed by the Employer only, in the form provided by the
Prototype Sponsor, that provides replacement pages to be inserted into the
Adoption Agreement, which pages include the change or changes. Any such
amendment must be filed with the Trustee.

(b) The Employer
may make a separate amendment to the Plan as necessary to satisfy Code Section 415
or 416 because of the required aggregation of multiple plans by completely
overriding the Basic Plan Document provisions.

(c) The Employer
may adopt certain model amendments published by the Internal Revenue Service
which specifically provide that their adoption shall not cause the Plan to be
treated as an individually designed plan.

16.02. Amendments by the Employer that Affect
Prototype Status. The Employer reserves the authority through a board of
directors’ resolution or similar action, subject to the provisions of Section 16.04,
to amend the Plan in a manner other than that provided in Section 16.01.
However, upon making such amendment, including, if the Plan is a money purchase
pension plan, a waiver of the minimum funding requirement under Code Section 412(d),
the Employer may no longer participate in this prototype plan arrangement and
shall be deemed to have an individually designed plan. Following such
amendment, the Trustee may transfer the assets of the Trust to the trust
forming part of such newly adopted plan upon receipt of sufficient evidence
(such as a determination letter or opinion letter from the Internal Revenue
Service or an opinion of counsel satisfactory to the Trustee) that such trust
shall be a qualified trust under the Code.

16.03. Amendment by the Mass Submitter Sponsor and the
Prototype Sponsor. The Mass Submitter Sponsor may in its discretion amend the
mass submitter prototype plan at any time, subject to the provisions of Article 1
and Section 16.04, and provided that the Mass Submitter Sponsor mails a
copy of such amendment to each Prototype Sponsor that maintains the prototype
plan or a minor modifier of the prototype
plan. Each Prototype Sponsor shall provide a copy of such amendment to each
Employer adopting its prototype plan at the
Employer’s last known address as shown on the books maintained by the
Prototype Sponsor or its affiliates.

The Prototype Sponsor may, in its discretion, amend
the Plan or the Adoption Agreement, subject
to the provisions of Article 1 and Section 16.04, and provided that
such amendment does not change the Plan’s
status as a word for word adoption of the mass submitter prototype plan
or a minor modifier of the mass submitter prototype
plan, unless such Prototype Sponsor elects no longer to be a sponsoring organization
with respect to the mass submitter prototype plan. The Prototype Sponsor shall
provide a copy of such amendment to each Employer adopting its prototype plan
at the Employer’s last known address as shown on the books mai ntained by the
Prototype Sponsor or its affiliates.

16.04. Amendments Affecting Vested and/or Accrued
Benefits. Except as permitted by Section 16.05,
Section 1.19(e) and the Forms of Payment Addendum to the Adoption Agreement,
and/or Code Section 411(d)(6) and regulations issued there under, no amendment to the Plan shall be
effective to the extent that it has the effect of decreasing a Participant’s
Account or eliminating an optional form

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of benefit with respect to benefits attributable to
service before the amendment. Furthermore, if the vesting schedule of the Plan
is amended, the nonforfeitable interest of a Participant in his Account,
determined as of the later of the date the amendment is adopted or the date it
becomes effective, shall not be less than the Participant’s nonforfeitable
interest in his Account determined without regard to such amendment.

If the Plan is a money purchase pension plan, no
amendment to the Plan that provides for a significant reduction in
contributions to the Plan shall be made unless notice has been furnished to
Participants and alternate payees under a qualified domestic relations order as
provided in ERISA Section 204(h).

If the Plan’s vesting schedule is amended because of a
change to “top-heavy plan” status, as described in Subsection 15.01(f), the
accelerated vesting provisions of Section 15.06 shall continue to apply
for all Plan Years thereafter, regardless of whether the Plan is a “top-heavy
plan” for such Plan Year.

If the Plan’s vesting schedule is amended and an
Employee’s vested interest, as calculated by using the amended vesting
schedule, is less in any year than the Employee’s vested interest calculated
under the Plan’s vesting schedule immediately prior to the amendment, the
amended vesting schedule shall apply only to Employees hired on or after the
effective date of the change in vesting schedule

16.05. Retroactive Amendments made by Mass Submitter
or Prototype Sponsor. An amendment made by the Mass Submitter Sponsor or Prototype
Sponsor in accordance with Section 16.03 may be made effective on a date
prior to the first day of the Plan Year in which it is adopted if, in published
guidance, the Internal Revenue Service either permits or requires such an
amendment to be made to enable the Plan and Trust to satisfy the applicable
requirements of the Code and all requirements for the retroactive amendment are
satisfied.

16.06. Termination. The Employer has adopted the Plan
with the intention and expectation that contributions shall be continued
indefinitely. However, said Employer has no
obligation or liability whatsoever to maintain the Plan for any length of time and may amend the Plan to discontinue
contributions under the Plan or terminate
the Plan at any time without any liability hereunder for any such discontinuance
or termination. The Employer may terminate the Plan by written notice delivered to the Trustee.

16.07. Distribution upon Termination of the Plan . Upon
termination or partial termination of the
Plan or complete discontinuance of contributions there under, each Participant (including a terminated Participant
with respect to amounts not previously forfeited by him) who is affected
by such termination or partial termination
or discontinuance shall have a
vested interest in his Account of 100 percent. Subject to Section 12.01
and Article 14, upon receipt of written instructions from the
Administrator, the Trustee shall distribute to each Participant or other person
entitled to distribution the balance of the Participant’s Account in a single
lump sum payment. In the absence of such instructions, the Trustee shall notify
the Administrator of such situation and the
Trustee shall be under no duty to make any distributions under the Plan until it receives written instructions from the
Administrator. Upon the completion of such
distributions, the Trust shall terminate, the Trustee shall be relieved from all liability under the Trust, and no Participant
or other person shall have any claims
there under, except as required by applicable law.

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If distribution is to be
made to a Participant or Beneficiary who cannot be located, the Administrator shall give written instructions to the
Trustee to (a) escheat the distributable amount to the State or
Commonwealth of the distributee’s last
known address or (b) draw a check in the distributable amount and
mail it to the distributee’s last known address. In the absence of such instructions, the Trustee shall make distribution
t o the distributee by drawing a ch
eck in the distributable amount and mailing
it to the distributee’s last known address.

16.08. Merger or
Consolidation of Plan; Transfer of Plan Assets. In case of any merger or
consolidation of the Plan with, or transfer of assets and liabilities of the
Plan to, any other plan, provision must be made so that each Participant would,
if the Plan then terminated, receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he
would have been entitled to receive immediately before the merger, co
nsolidation or transfer if the Plan had then terminated.

Article 17.
Amendment and Continuation of Prior Plan; Transfer of Funds to or from Other Qualified Plans.

17.01. Amendment and Continuation of Prior Plan. In
the event the Employer has previously established a plan (the “prior plan”)
which is a defined contribution plan under the Code and which on the date of
adoption of the Plan meets the applicable requirements of Code Section 401(a),
the Employer may, in accordance with the provisions of the prior plan, amend
and restate the prior plan in the form of t he Plan and become the Employer
hereunder, subject to the following:

(a) Subject to the provisions of the Plan, each
individual who was a Participant in the prior plan immediately prior to the
effective date of such amendment and restatement shall become a Participant in
the Plan.

(b) Except as provided
in Section 16.04, no election may be made under the vesting provisions of
the Adoption Agreement if such election would reduce the benefits of a Participant
under the Plan to less than the benefits to which he would have been entitled
if he voluntarily separated from the service of the Employer immediately prior to such amendment and restatement.

(c) No amendment to the Plan shall decrease a
Participant’s accrued benefit or eliminate an optional form of benefit, except
as permitted under Section 1.19 (e) and the Forms of Payment Addendum
to the Adoption Agreement.

(d) The amounts standing
to the credit of a Participant’s account immediately prior to such amendment
and restatement which represent the amounts properly attributable to (1) contributions
by the Participant and (2) contributions by the Employer and forfeitures
shall constitute the opening balance of his Account or Accounts under the Plan.

(e) Amounts being paid
to an Inactive Participant or to a Beneficiary in accordance with the
provisions of the prior plan shall continue to be paid in accordance with such
provisions.

(f) Any election and
waiver of the “qualified preretirement survivor annuity”, as defined in Section 14.01,
in effect after August 23, 1984, under the prior plan immediately before
such amendment and restatement shall be

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deemed a valid election and
waiver of Beneficiary under Section 14.04 if such designation satisfies
the requirements of Sections 14.05 and 14.06, unless and until the Participant
revokes such election and waiver under the Plan.

(g) Unless the Employer
and the Trustee agree otherwise, all assets of the predecessor trust shall be
deemed to be assets of the Trust as of the effective date of such amendment.
Such assets shall be invested by the Trustee as soon as reasonably practicable
pursuant to Article 8. The Employer agrees to assist the Trustee in any
way requested by the Trustee in order to facilitate the transfer of assets from
the predecessor trust to the Trust Fund.

17.02. Transfer of Funds from an Existing Plan. The
Employer may from time to time direct the Trustee, in accordance with such rules as
the Trustee may establish, to accept cash,
allowable Fund Shares or participant loan promissory notes transferred
for the benefit of Participants from a trust forming part of another qualified
plan under the Code, provided such plan is a defined contribution plan. Such transferred assets shall become assets of the Trust
as of th e date they are received by the Trustee. Such transferred
assets shall be credited to Participants’
Accounts in accordance with their respective interests immediately upon receipt
by the Trustee. A Participant’s interest under the Plan in transferred
assets which were fully vested and nonforfeitable under the transferring plan or which were transferred to the
Plan in a manner intended to satisfy the requirements of subsection (b) of
this Section 17.02 shall be fully vested and nonforfeitable at all times.
A Participant’s interest under the Plan in transferred assets which were transferred to the Plan in a manner
intended to satisfy the requirements of subsection (a) of this Section 17.02
shall be determined in accordance with the
terms of the Plan unless the transferor plan’s vesting schedule is more
favorable. Such transferred assets shall be invested by the Trustee in
accordance with the provisions of Subsection
17.01(g) as if such as sets were
transferred from a prior plan. Except as otherwise provided below, no transfer of assets in accordance with this Section 17.02
may cause a loss of an accrued or optional form of benefit protected by
Code Section 411(d)(6).

Effective for transfers made on or after January 1,
2002, the terms of the Plan as in effect at the time of the transfer shall
apply to the amounts tra nsferred regardless of whether such application would
have the effect of eliminating or reducing an optional form of benefit
protected by Code Section 411(d)(6) which was previously available
with respect to any amount transferred to the Plan pursuant to this Section 17.02,
provided that such transfer satisfies the requirements set forth in either (a) or
(b):

(a)(1) The transfer is
conditioned upon a voluntary, fully informed election by the Participant to
transfer his entire account balance to the Plan. As an alternative to the
transfer, the Participant is offered the opportunity to retain the form of
benefit previously available to him (or, if the transferor plan is terminated,
to receive any optional form of benefit for which the participant is eligible
under the transferor plan as required by Code Section 411(d)(6));

(2) If the defined contribution plan from which
the transfer is made is a money purchase pension plan, the Plan is a money
purchase plan or, if the defined contribution plan from which the transfer is
made includes a qualified cash or deferred arrangement, the Plan includes a
cash or deferred arrangement; and

 68
 

 

 

(3) The transfer is made
either in connection with an asset or stock  acquisition, merger or other similar transaction involving a change in  employer of the employees of a trade or
business (i.e., an acquisition or  disposition
within the meaning of Section 1.410(b)-2(f)) or in connection with
the participant’s change in employment status such that the participant is not
entitled to additional allocations under the transferor plan.

(b)(1) The transfer satisfies the requirements of
subsection (a)(1) of this Section 17.02;

(2) The transfer occurs at a time when the Participant
is eligible, under the terms of the transferor plan, to receive an immediate
distribution of his account;

(3) If the transfer occurs on or after January 1,
2002, the transfer occurs at a time when the participant is not eligible to
receive an immediate distribution of his entire nonforfeitable account balance
in a single sum distribution that would consist entirely of an eligible
rollover distribution within the meaning of Code Section 401(a)(31)(C);
and

(4) The amount transferred, together with the amount
of any contemporaneous Code Section 401(a)(31) direct rollover to the
Plan, equals the entire nonforfeitable account of the participant whose account
is being transferred.

It is the Employer’s obligation to ensure that all
assets of the Plan, other than those maintained in a separate trust or fund
pursuant to the provisions of Section 20.10, are transferred to the
Trustee. The Trustee shall have no liability for and no duty to inquire into
the administration of such transferred assets for periods prior to the
transfer.

17.03. Acceptance of Assets by Trustee. The Trustee
shall not accept assets which are not either in a medium proper for investment
under the Plan, as set forth in the Plan and the Service Agreement, or in cash.
Such assets shall be accompanied by
instructions in writing (or such other medium as may be acceptable to
the Trustee) showing separately the respective contributions by the prior employer and by the Participant, and identifying
the assets attributable to such contributions.
The Trustee shall establish such accounts as may be necessary or a ppropriate to reflect such contributions under
the Plan. The Trustee
shall hold su ch assets for investment in accordance with the provisions
of Article 8, and shall in accordance with the written instructions of the
Employer make appropriate credits to the
Accounts of the Participants for whose benefit assets h ave been transferred.

17.04. Transfer of Assets from Trust. Effective on or
after January 1, 2002, the Employer may direct the Trustee to transfer all
or a specified portion of the Trust assets to any other plan or plans
maintained by the Employer or the employer or employers of an Inactive
Participant or Participants, provided that the Trustee has received evidence
satisfactory to it that such other plan meets all applicable requirements of
the Code, subject to the following:

(a) The assets so transferred shall be
accompanied by instructions in writing (or such other medium as may be
acceptable to the Trustee) from the Employer

 69
 

 

 

naming the persons for whose
benefit such assets have been transferred, showing separately the respective contributions by the Employer and by each Inactive
Participant, if any, and identifying the assets attributable to the various
contributions. The Trustee shall not transfer assets hereunder until all
applicable filing requirements are met. The Trustee shall have no further
liabilities with respect to assets so transferred.

(b) A transfer of assets
made pursuant to this Section 17.04 may result in the elimination or
reduction of an optional
form of benefit protected by Code Section 411(d)(6), provided that the
transfer satisfies the requirement s set forth in either (1) or (2):

(1)(i) The transfer is conditioned upon a
voluntary, fully informed election by the Participant to transfer his entire
Account to the other defined contribution plan. As an alternative to the
transfer, the Participant is offered the opportunity to retain the form of
benefit previously available to him (or, if
the Plan is terminated, to receive any optional
form of benefit for which the Participant is eligible under the Plan as
required by Code Section 411(d)(6));

(ii) If the Plan is a money purchase pension
plan, the defined contribution plan to which the transfer is made must be a
money purchase pension plan and if the Plan includes a qualified cash or
deferred arrangement under Code Section 401(k), the defined contribution
plan to which the transfer is made must include a qualified cash or deferred
arrangement; and

(iii) The transfer is
made either in connection with an asset or stock acquisition, merger or other
similar transaction involving a change in employer of the employees of a trade
or business (i.e., an acquisition or disposition within the meaning of Section 1.410(b)2 (f)) or in
connection with the Participant’s change in employment status such that the
Participant becomes an Inactive Participant.

(2)(i) The transfer
satisfies the requirements of subsection (1)(i) of this Section 17.04;

(ii) The transfer occurs
at a time when the Participant is eligible, under the terms of the Plan, to
receive an immediate distribution of his benefit;

(iii) If the transfer
occurs on or after January 1, 2002, the transfer occurs at a time when the
Participant is not eligible to receive an immediate distribution of his entire
nonforfeitable Account in a single sum distribution that would consist entirely
of an eligible rollover distribution within the meaning of Code Section 401(a)(31)(C);

(iv) The Participant is
fully vested in the transferred amount in the transferee plan; and

(v) The amount
transferred, together with the amount of any contemporaneous Code Section 401(a)(31)
direct rollover to the transferee plan, equals the entire nonforfeitable
Account of the Participant whose Account is being transferred.

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Article 18. Miscellaneous.

18.01. Communication to Participants. The Plan shall
be communicated to all Eligible Employees by the Employer promptly after the
Plan is adopted.

18.02. Limitation of Rights. Neither the establishment
of the Plan and the Trust, nor any amendment thereof, nor the creation of any
fund or account, nor the payment of any
benefits, shall be construed as giving to any Participant or other person any legal or equitable right against
the Employer, Administrator or Trustee,
except as provided herein; and in no event shall the terms of employment or service
of any Participant be modified or in any way affected hereby. It is a condition of the Plan, and each Participant expressly
agrees by his participation herein,
that each Participant shall look solely to the assets held in the Trust for
the payment of any benefit to which he is entitled under the Plan.

18. 03. Nonalienability of Benefits. Except as
provided in Code Sections 401 (a)(13)(C) and
(D) (relating to offsets ordered or required under a criminal conviction involving the Plan, a civil judgment in
connection with a violation or alleged violation of fiduciary
responsibilities under ERISA, or a settlement agreement between the Participant and the Department of Labor in connection
with a violation or alleged violation of fiduciary responsibilities
under ERISA), Sectio n 1.401(a)-13(b)(2) of the Treasury Regulations
(relating to Federal tax levies), or as
otherwise required by law, the benefits provided hereunder shall not be subject
to alienation, assignment, garnishment, attachment, execution or levy of any kind, either voluntarily or involuntarily,
and any attempt to cause such benefits
to be so subjected shall not be recognized. The preceding sentence shall also apply to the creation,
assignment, or recognition of a right to any benefit payable with respect to a
Participant pursuant to a domestic relations order, unless such order is
determined by the Administrator to be a qualified domestic relations order, as
defined in Code Section 414(p), or any domestic relations order entered before January 1, 1985.

18.04. Qualified Domestic Relations Orders Procedures.
The Administrator must establish reasonable procedures to determine the
qualified status of a domestic relations order. Upon receiving a domestic
relations order, the Administrator shall promptly notify the Participant and
any alternate payee named in the order, in writing, of the receipt of the order
and the Plan’s procedures for determining the qualified status of the order.
Within a reasonable period of time after receiving the domestic relations
order, the Administrator must determine the qualified status of the order and
must notify the Participant and each alternate payee, in writing, of its
determination. The Administrator shall provide such notice by mailing to the
individual’s address specified in the domestic relations order, or in a manner
consistent with the Department of Labor regulations.

If any portion of the
Participant’s Account is payable during the period the Administrator is making its determination of the qualified status of the
domestic relations order, the
Administrator must make a separate accounting of the amounts payable. If
the Administrator determines the order is a qualified domestic relations order within 18 months of the date amounts
first are payable following receipt of the order, the Administrator
shall direct the Trustee to distribute the payable amounts in accordance with
the order. If the Administrator does not make his determination of the qualified
status of the order within the 18-month determination period, the
Administrator shall direct the Trustee to distribute the payable amounts in the manner the Plan would distribute if the
order did not

 71
 

 

exist and shall apply the order prospectively if the
Administrator later determines the order is a qualified domestic relations
order.

The Trustee shall set up segregated accounts for each
alternate payee when properly notified by the Administrator.

A domestic relations order shall not fail to be deemed
a qualified domestic relations order merely
because it requires the distribution or segregation of all or part of a
Participant’s Account with respect to an alternate payee prior to the
Participant’s earliest retirement age (as defined in Code Section 414(p)) under the Plan. A distribution to an alternate
payee prior to the Participant’s attainment of the earliest retirement
age is available only if (a) the order specifies
distribution at that time and (b) if the present value of the alternate payee’s benefits under the Plan exceeds $5,000 as
determined under Section 13.02 (or such larger amount as may be specified in Code Section 417(e)(1)),
and the order requires, and the alternate payee consents to, a
distribution occurring prior to the Participant’s attainment of earliest
retirement age.

18.05. Additional Rules for Paired Plans. If the
Employer has adopted both a money purchase pension plan and a profit sharing
plan under this Basic Plan Document which
are to be considered paired plans, the elections in Section 1.04 of the Adoption Agreement must be identical with
respect to both plans. When the paired plans are “top-heavy plans”, as
defined in Subsection 15.01(f), or are deemed
to be “top-heavy plans”, the money purchase pension plan shall provide the minimum contribution required under Section 15.03,
unless contributions under the money
purchase pension plan are frozen.

18.06. Application of Plan Provisions in Multiple
Employer Plans. Notwithstanding any other provision of the Plan to the
contrary, if one of the Employers designated in Subsection 1.02(b) of the
Adoption Agreement is not a Related
Employer, the Prototype Sponsor reserves the right to take any or all of
the following actions:

(a) treat the Plan as a multiple employer plan;

(b) permit the Employer to amend the Plan to
exclude the un-Related Employer from participation in the Plan; or

(c) treat the Employer as having amended the Plan
in the manner described in Section 16.02 such that the Employer may no
longer participate in this prototype plan arrangement.

For the period, if any, that the Prototype Sponsor
elects to treat the Plan as a multiple employer plan, each un-Related Employer
shall be treated as a separate Employer for
purposes of contributions, application of the “ADP” and “ACP” tests described
in Sections 6.03 and 6.06, application of the Code Section 415 limitations
described in Section 6.12, top-heavy determinations and application of the
top-heavy requirements under Article 15, and application of such other Plan
provisions as the Employers determine to be appropriate. For any such period,
the Prototype Sponsor shall continue to treat the Employer as participating in
this prototype plan arrangement for purposes of Plan administration, notices or other communications in connection
with the Plan, and other Plan-relate services; provided, however, that if the
Employer applies to the Internal Revenue Service for a determination letter,
the multiple employer plan shall be filed on the form appropriate for multiple
employer plans. The Administrator shall be responsible for administering the
Plan as a multiple employer plan.

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18.07. Veterans Reemployment
Rights. Notwithstanding any other provision of the Plan to the contrary,
contributions, benefits, and service credit with respect to qualified military
service shall be provided in accordance with Code Section 414 (u). The
Administrator shall notify the Trustee of any Participant with respect to whom additional contributions are made
because of qualified military service.

18.08. Facility of Payment. In the event the
Administrator determines, on the basis of medical reports or other evidence
satisfactory to the Administrator, that the
recipient of any benefit payments under the Plan is incapable of
handling his affairs by reason of minority, illness, infirmity or other incapacity , the Administrator may direct the Trustee to disburse such payments to a
person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the
legal authority under state law for the care and
control of such recipient. The receipt by such person or institution of any
such payments shall be complete acquittance therefore, and any such
payment to the extent thereof, shall discharge the liability of the Trust for the payment of benefits hereunder to such
recipient.

18.09. Information between Employer and Trustee. The
Employer agrees to furnish the Trustee, and the Trustee agrees to furnish the
Employer, with such information relating to the Plan and Trust as may be
required by the other in order to carry out their respective duties hereunder,
including without limitation information required under the Code and any
regulations issued or forms adopted by the Treasury Department there under or
under the provisions of ERISA and any regulations issued or forms adopted by
the Department of Labor there under.

18.10. Effect of Failure to Qualify Under Code.
Notwithstanding any other provision contained herein, if the Employer fails to
obtain or retain approval of the Plan by the Internal Revenue Service as a
qualified Plan under the Code, the Employer may no longer participate in this
prototype Plan arrangement and shall be deemed to have an individually designed
plan.

18.11. Directions, Notices and Disclosure. Any notice
or other communication in connection with this Plan shall be deemed delivered
in writing if addressed as provided below and if either actually delivered at
said address or, in the case of a letter, three business days shall have
elapsed after the same shall have been deposited in the United States mails, first-class
postage prepaid and registered or certified:

(a) If to the Employer or Administrator, to it at
the address set forth in the Adoption Agreement, and, if to the Employer, to
the attention of the contact specified in Subsection 1.02(a) of the
Adoption Agreement;

(b) If to the Trustee, to it at the address set
forth in Subsection 1.03(a) the Adoption Agreement;

or, in each case at such other address as the
addressee shall have specified by written notice
delivered in accordance with the foregoing to the addressor’s then effective
notice address.

Any direction, notice or other communication provided
to the Employer, the Administrator or the Trustee by another party which is
stipulated to be in written form under the
provisions of this Plan may also be provided in any medium

 73
 

 

 

which is permitted under applicable law or regulation.
Any written communication or disclosure to Participants required under the
provisions of this Plan may be (electronic, telephone or otherwise) that is provided
in any other medium permitted under applicable law or regulation.

18.12. Governing Law. The Plan and the accompanying
Adoption Agreement shall be construed, administered and enforced according to
ERISA, and to the extent not preempted thereby, the laws of the Commonwealth of
Massachusetts.

Nothing contained in Sections 8.02, 19.01 or 19.05 or
this Section 18.13 shall be construed in a manner which subjects a
governmental plan (as defined in Code Section 414(d))
or a non-electing church plan (as described in Code Section 410(d)) to
the fiduciary provisions of Title I of ERISA.

Article 19. Plan Administration.

19.01. Powers and Responsibilities of the
Administrator. The Administrator has the
full power and the full responsibility to administer the Plan in all of its details,
subject, however, to the requirements of ERISA. In addition to the powers and authorities expressly conferred upon it
in the Plan, the Administrator shall
have all such powers and authorities as may be necessary to carry out the provisions
of the Plan, including the discretionary power and authority to interpret and
construe the provisions of the Plan, such interpretation to be final and
conclusive on all persons claiming benefits under the Plan; to make benefit determinations; to utilize the correction
programs or systems established by the Internal Revenue Service (such as
the Employee Plans Compliance and Resolution System) or the Department of
Labor; and to resolve any disputes arising under the Plan. The Administrator
may, by written instrument, allocate and delegate
its fiduciary responsibilities in accordance with ERISA Section 405, including
allocation of such responsibilities to an administrative committee formed to administer the Plan.

19.02. Nondiscriminatory Exercise of Authority.
Whenever, in the administration of the Plan, any discretionary action by the
Administrator is required, the Administrator shall exercise its authority in a
nondiscriminatory manner so that all persons similarly situated shall receive
substantially the same treatment.

19.03. Claims and Review Procedures. Except to the
extent that the provisions of any collective-bargaining agreement provide
another method of resolving claims for benefits under the Plan, the provisions
of this Section 19.03 shall control with respect to the resolution of such
claims; provided, however, that the Employer may institute alternative claims
procedures that are more restrictive on the Employer and more generous with
respect to persons claiming a benefit under the Plan.

(a) Claims Procedure. Whenever a request for
benefits under the Plan is wholly or partially denied, the Administrator shall
notify the person claiming such benefits of its decision in writing. Such
notification shall contain (1) specific reasons for the denial of the
claim, (2) specific reference to pertinent Plan provisions, (3) a
description of any additional material or information necessary for such person
to perfect such claim and an e planation of why such material or information is
necessary, and x (4) information as to the steps to be taken if the person
wishes to submit a request for review. Such notification shall be given within
90 days after the claim is received by the Administrator (or within 180 days,
if special circumstances require an extension of time for processing the claim,
and if

 74
 

 

 

written notice of such extension and circumstances is
given to such person within the initial 90 -day period). If such notification
is not given within such period, the claim shall be considered denied as of the
last day of such period and such person may request a review of his claim.

(b) Review Procedure. Within 60 days after the
date on which a person receives a written notice of a denied claim (or, if
applicable, within 60 days after the date on which such denial is considered to
have occurred), such person (or his duly authorized representative) may (1) file
a written request with the Administrator for a review of his denied claim and
of pertinent documents and (2) submit written issues and comments to the
Administrator. The Administrator shall notify such person of its decision in
writing. Such notification shall be written in a manner calculated to be
understood by such person and shall contain specific reasons for the decision
as well as specific references to pertinent Plan provisions. The decision on
review shall be made within 60 days after the request for review is received by
the Administrator (or within 120 days, if special circumstances require an
extension of time for processing the request, such as an election by the
Administrator to hold a hearing, and if written notice of such extension and
circumstances is given to such person within the initial 60-day period).
If the decision on review is not made within such period, the claim shall be
considered denied.

19.04. Named Fiduciary. The Administrator is a “named
fiduciary” for purposes of ERISA Section 402(a)(1) and has the powers
and responsibilities with respect to the management and operation of the Plan
described herein.

19.05. Costs of Administration. Unless some or all are paid by the Employer, all reasonable
costs and expenses (including legal, accounting, and employee communication
fees) incurred by the Administrator and the Trustee in administering the Plan
and Trust may be paid from the forfeitures (if any) resulting under Section 11.08, or from the remaining Trust Fund.
All such costs and expenses paid
from the Trust Fund shall, unless allocable to the Accounts of particular Participants, be charged against the Accounts of all Participants on a pro
rata basis or in such other reasonable manner as may be directed by the Employer and accepted by the Trustee.

Article 20. Trust Agreement.

20.01. Acceptance of Trust Responsibilities. By
executing the Adoption Agreement, the
Employer establishes a trust to hold the assets of the Plan that are invested in Permissible Investments. By
executing the Adoption Agreement, the Trustee agrees to accept the
rights, duties and responsibilities set forth in this Article. If the Plan is an
amendment and restatement of a prior plan, the Trustee shall have no liability
for and no duty to inquire into the administration of the assets of the Plan
for periods prior to the date such assets
are transferred to the Trust.

20.02. Establishment of Trust Fund. A trust is hereby
established under the Plan. The Trustee shall open and maintain a trust account
for the Plan and, as part thereof, Accounts for such individuals as the
Employer shall from time to time notify the Trustee are Participants in the Plan.
The Trustee shall accept and hold in the
Trust Fund such contributions on behalf of Participants as it may receive
from time to time from the Employer. The Trust Fund shall be fully

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invested and reinvested in accordance with the
applicable provisions of the Plan in Fund Shares or as otherwise provided in Section 20.10.

The Trust is intended to qualify as a domestic trust
in accordance with Code Section 7701(a)(30)(E) and any regulations
issued there under. Accordingly, only (as defined in Code Section 7701
(a)(30) may have the United States persons authority to control all substantial
decisions regarding the Trust (including decisions to appoint, retain or
replace the Trustee), unless the Plan filed a domestic trust election pursuant
to Treasury Regulation Section 301.7701-7(f) or any subsequent
guidance issued by the Internal Revenue Service, or except as otherwise
provided in applicable regulation or legislation.

20.03. Exclusive Benefit. The Trustee shall hold the
assets of the Trust Fund for the exclusive purpose of providing benefits to
Participants and Beneficiaries and defraying the reasonable expenses of
administering the Plan. No assets of the Plan shall revert to the Employer
except as specifically permitted by the terms of the Plan.

20. 04. Powers of Trustee. The Trustee shall have no
discretion or authority with re spect to the investment of the Trust Fund but
shall act solely as a directed trustee of
the funds contributed to it. In addition to and not in limitation of such
powers as the Trustee has by law or under any other provisions of the Plan, the Trustee shall have the following
powers, each of which the Trustee exercises so lely as directed Trustee in
accordance with the written direction of the Emp loyer except to the extent a Plan asset is subject to Participant
direction of investment and provided that no such power shall be
exercised in any manner inconsistent with
the provisions of ERISA:

(a) to deal with all or any part of the Trust
Fund and to invest all or a part of the Trust Fund in Permissible Investments,
without regard to the law of any state regarding proper investment;

(b) to transfer to and invest all or any part of
the Trust in any collective investment trust which is then maintained by a bank
or trust company (or any affiliate) and which is tax-exempt pursuant to Code Section 501(
a) and Rev. Rul. 81-100; provided that such collective investment trust
is a Permissible Investment; and provided, further, that the instrument
establishing such collective investment trust, as amended from time to time,
shall govern any investment therein, and is hereby made a part of the Plan and
this Trust Agreement to the extent of such investment therein;

(c) to retain uninvested such cash as it may deem
necessary or advisable, without liability
for interest thereon, for the administration of the Trust; 

(d) to sell, lease, convert, redeem, exchange, or
otherwise dispose of all or any part of the assets constituting the Trust Fund;

(e) to borrow funds from a bank or other
financial institution not affiliated with the Trustee in order to provide
sufficient liquidity to process Plan transactions in a timely fashion, provided
that the cost of borrowing shall be allocated in a reasonable fashion to the
Permissible Investment(s) in need of liquidity;

(f) to enforce by suit or otherwise, or to waive,
its rights on behalf of the Trust, and to defend claims asserted against it or
the Trust, provided that the Trustee is indemnified to its satisfaction against
liability and expenses;

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(g) to employ such agents and counsel as may be
reasonably necessary in collecting, managing, administering, investing,
distributing and protecting the Trust Fund or the assets thereof and to pay
them reasonable compensation;

(h) to compromise, adjust and settle any and all
claims against or in favor of it or the Trust;

(i) to oppose, or participate in and consent to
the reorganization, merger, consolidation, or readjustment of the finances of
any enterprise, to pay assessments and expenses in connection therewith, and to
deposit securities under deposit agreements;

(j) to apply for or purchase annuity contracts in
accordance with Article 14;

(k) to hold securities unregistered, or to
register them in its own name or in the name of nominees;

(l) to appoint custodians to hold investments
within the jurisdiction of the district courts of the United States and to
deposit securities with stock clearing corporations or depositories or similar
organizations;

(m) to make, execute, acknowledge and deliver any
and all instruments that it deems necessary or appropriate to carry out the
powers herein granted;

(n) generally to exercise any of the powers of an
owner with respect to all or any part of the Trust Fund; and

(o) to take all such actions as may be necessary
under the Trust Agreement, to the extent consistent with applicable law.

The Employer specifically acknowledges and authorizes
that affiliates of the Trustee may act as its agent in the performance of
ministerial, nonfiduciary duties under the Trust. The expenses and compensation
of such agent shall be paid by the Trustee.

The Trustee shall provide the Employer with reasonable
notice of any claim filed against the Plan or Trust or with regard to any
related matter, or of any claim filed by the Trustee on behalf of the Plan or
Trust or with regard to any related matter.

20.05. Accounts. The Trustee shall keep full accounts
of all receipts and disbursements and other transactions hereunder. Within 120
days after the close of each Plan Year, within 90 days after termination of the
Trust, and at such other times as may be appropriate, the Trustee shall
determine the then net fair market value of the Trust Fund as of the close of
the Plan Year, as of the termination of the Trust, or as of such other time,
whichever is applicable, and shall render to the Employer and Administrator an
account of its administration of the Trust during the period since the last
such accounting, including all allocations made by it during such period.

20.06. Approval of Accounts. To the extent permitted
by law, the written approval of any account by the Employer or Administrator
shall be final and binding, as to all matters and transactions stated or shown
therein, upon the Employer, Administrator, Participants and all persons who
then are or thereafter become interested in the Trust. The failure of the
Employer or Administrator to

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notify the Trustee within six months after the receipt
of any account of its objection to the account shall, to the extent permitted
by law, be the equivalent of written approval. If the Employer or Administrator
files any objections within such six month period with respect to any matters
or transactions stated or shown in the account, and the Employer or
Administrator and the Trustee cannot amicably settle
the question raised by such objections, the Trustee shall have the right to have such questions settled by judicial
proceedings. Nothing herein contained shall be construed so as to deprive the
Trustee of the right to have judicial settlement of its accounts. In any
proceeding for a judicial settlement of any account
or for instructions, the only necessary parties shall be the Trustee,
the Employer and the Administrator.

20.07. Distribution from Trust Fund. The Trustee shall
make such distributions from the Trust Fund as the Employer or Administrator
may direct (in writing or such other medium
as may be acceptable to the Trustee), consistent with the terms of the
Plan and either for the exclusive benefit of Participants or their
Beneficiaries, or for the payment of expenses of administering the Plan.

20.08. Transfer of Amounts from Qualified Plan. If
amounts are to be transferred to the Plan from another qualified plan or trust
under Code Section 401(a), such transfer shall be made in accordance with
the provisions of the Plan and with such rules as may be established by
the Trustee. The Trustee shall only accept assets which are in a medium proper
for investment under this Trust Agreement or in cash, and that are accompanied
in a timely manner, as agreed to by the Administrator and the Trustee, by
instructions in writing (or such other medium as may be acceptable to the
Trustee) showing separately the respective contributions by the prior employer
and the transferring Employee, the records relating to such contributions, and
identifying the assets attributable to such contributions. The Trustee shall
hold such assets for investment in accordance with the provisions of this Trust
Agreement.

20.09. Transfer of Assets from Trust. Subject to the
provisions of the Plan, the Employer may direct the Trustee to transfer all or
a specified portion of the Trust assets to any other plan or plans maintained
by the Employer or the employer or employers of an Inactive Participant or
Participants, provided that the Trustee has received evidence satisfactory to
it that such other plan meets all applicable requirements of the Code. The assets
so transferred shall be accompanied by written instructions from the Employer
naming the persons for whose benefit such assets have been transferred, showing
separately the respective contributions by the Employer and by each
Participant, if any, and identifying the assets attributable to the various
contributions. The Trustee shall have no further liabilities with respect to
assets so transferred.

20.10. Separate
Trust or Fund for Existing Plan Assets.
With the consent of the Trustee, the Employer may maintain a trust or
fund (including a group annuity contract) under this prototype plan document
separate from the Trust Fund for Plan assets
purchased prior to the adoption of this prototype plan document which are
not Permissible Investments listed in the Service Agreement. The Trustee shall
have no authority and no responsibility for the Plan assets held in such separate trust or fund. The Employer shall be
responsible for assuring that such separate trust or fund is maintained
pursuant to a separate trust agreement signed by the Employer and the trustee.
The duties and responsibilities of the trustee of a separate trust shall be
provided by the separate trust agreement, between the Employer and the trustee.

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Notwithstanding the preceding paragraph, the Trustee
or an affiliate of the Trustee may agree in writing to provide ministerial
recordkeeping services for guaranteed investment contracts held in the separate
trust or fund. The guaranteed investment contract(s) shall be valued as
directed by the Employer or the trustee of the separate trust.

The trustee of the separate trust (hereafter referred
to as “trustee”) shall be the owner of any insurance contract purchased prior
to the adoption of this prototype plan document. The insurance contract(s) must
provide that proceeds shall be payable to the trustee; provided, however, that
the trustee shall be required to pay over all proceeds of the contract(s) to
the Participant’s designated Beneficiary in accordance with the distribution
provisions of this Plan. A Participant’s spouse shall be the designated
Beneficiary of the proceeds in all circumstances unless a qualified election
has been made in accordance with Article 14. Under no circumstances shall
the trust retain any part of the proceeds. In the event of any conflict between
the terms of the Plan and the terms of any insurance contract purchased
hereunder, the Plan provisions shall control.

Any life insurance contracts held in the Trust Fund or
in the separate trust are subject to the following limits:

(a) Ordinary life - For purposes of these
incidental insurance provisions, ordinary life insurance contracts are
contracts with both nondecreasing death benefits and nonincreasing premiums. If
such contracts are held, less than 1/2 of the aggregate employer contributions
allocated to any Participant shall be used to pay the premiums attributable to
them.

(b) Term and universal life - No more than 1/4 of
the aggregate employer contributions allocated to any participant shall be used
to pay the premiums on term life insurance contracts, universal life insurance
contracts, and all other life insurance contracts which are not ordinary life.

(c) Combination - The sum of 1/2 of the ordinary
life insurance premiums and all other life insurance premiums shall not exceed 1/4
of the aggregate employer contributions allocated to any Participant.

20.11. Self-Directed Brokerage Option. If one of the
Permissible Investments under the Plan is the self-directed brokerage option,
the Employer hereby directs the Trustee to use Fidelity Brokerage Services LLC,
Member NYSE, SIPC or any of the Trustee’s affiliates or subsidiaries
(collectively, “FBS”), an affiliate of the Trustee, to purchase or sell
individual securities for Participant Accounts in accordance with investment
directions provided by such Participants. The provision of brokerage services
by FBS shall be subject to the following:

(a) The Trustee shall provide the Employer with
an annual report which summarizes brokerage transactions and
transaction-related charges incurred by the Plan.

(b) Any successor organization of FBS, through
reorganization, consolidation, merger, or otherwise, shall, upon consummation
of such transaction, become the successor broker in accordance with the terms
of this direction provision.

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(c) The Trustee and
FBS shall continue to rely on this direction provision until notified to the
contrary. The Employer reserves the right to terminate this direction upon
sixty (60) days written notice to FBS (or its successor) and the Trustee, and
such termination shall also have the effect of terminating the self-directed
brokerage option for the Plan.

(d) The Trustee shall provide the Employer with a
list of the types of securities that may not be purchased or held under this
self-directed brokerage option. The Trustee shall provide the Employer with
administrative procedures and fees governing investment in and withdrawals or
exchanges from the self-directed brokerage option. The Trustee shall have no
liability in the event a Participant purchases a restricted security.

(e) Participants may authorize the use of an
agent to have limited trading authority over assets in their Accounts invested
under the self-directed brokerage option provided that the Participant
completes and files with FBS a limited trading authorization and
indemnification form in the form prescribed by FBS.

(f) FBS shall provide all proxies and other
shareholder materials to each Participant with such securities allocated to his
or her Account under the self-directed brokerage option. The Participant shall
have the authority to direct the exercise of all shareholder rights
attributable to the securities allocated to his or her Account and it is
intended that all such Participant directions shall be subject to ERISA Section 404(c).
The Trustee shall not exercise any such shareholder rights in the absence of a
direction from the Participant.

(g) Self-directed brokerage accounts held under
the Plan are subject to fees as more fully described in the related
self-directed brokerage documents provided to the Employer. If there are
insufficient funds to cover the selfdirected brokerage account trades and
expenses, a liquidation may be made to cover the debit balance and, in doing
so, the Trustee shall not be deemed to have exercised any discretion.

20.12. Employer Stock Investment Option. If one of the
Permissible Investments is equity securities issued by the Employer or a
Related Employer (“Employer Stock”), such Employer Stock must be publicly
traded and “qualifying employer securities”
within the meaning of Section 407(d)(5) of ERISA. Plan investments in
Employer Stock shall be made via the
Employer Stock Investment Fund (the “Stock Fund”) which shall consist of
either (i) the shares of Employer
Stock held for each Participant who participates in the Stock Fund (a “Share
Accounting Stock Fund”), or (ii) a
combination of shares of Employer Stock and short-term liquid investments,
consisting of mutual fund shares or commingled money market pool units as
agreed to by the Employer and the Trustee, which are necessary to satisfy the Stock Fund’s cash needs for transfers
and payments (a “Unitized Stock Fund”).
Dividends received by the Stock Fund are reinvested in additional shares of Employer Stock or, in the case of a Unitized
Stock Fund, in short-term liquid investments. The determination of
whether each Participant’s interest in the Stock Fund is administered on a
share-accounting or a unitized basis shall be determined by the Employer’s
election in the Service Agreement.

In the case of a Unitized Stock Fund, such units shall
represent a proportionate interest in all assets of the Unitized Stock Fund,
which includes shares of Employer Stock,
short-term investments, and at times, receivables for dividends and/or Employer Stock sold and payables for
Employer Stock purchased. A net asset value per unit shall be determined
daily for each cash unit outstanding of the

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Unitized Stock Fund. The return earned by the Unitized
Stock Fund shall represent a combination of
the dividends paid on the shares of Employer Stock held by the Unitized
Stock Fund, gains or losses realized on sales of Employer Stock, appreciation
or depreciation in the market price of those shares owned, and interest on the short-term investments held by
the Unitized Stock Fund. A target range for the short-term liquid investments
shall be maintained for the Unitized Stock Fund. The Named Fiduciary
shall, after consultation with the Trustee, establish and communicate to the
Trustee in writing such target range and a drift allowance for such short-term
liquid investments. Such target range and drift allowance may be changed by the
Named Fiduciary, after consultation with the Trustee,
provided any such change is communicated to the Trustee in writing. The Trustee
is responsible for ensuring that the actual short-term liquid investments held
in the Unitized Stock Fund fall within the agreed upon target range over time, subject to the Trustee’s ability to execute
open-market trades in Employer Stock
or to otherwise trade with the Employer.

Investments in Employer Stock shall be subject to the
following limitations:

(a) Acquisition Limit. Pursuant to the Plan, the
Trust may be invested in Employer Stock to the extent necessary to comply with
investment directions under Section 8.02 of the Plan. Notwithstanding the
foregoing, effective for Deferral Contributions made for Plan Years beginning
on or after January 1, 1999, the portion of a Participant’s Deferral
Contributions that the Employer may require to be invested in Employer Stock
for a Plan Year cannot exceed one percent of such Participant’s Compensation
for the Plan Year.

(b) Fiduciary Duty of Named Fiduciary. The
Administrator or any person designated by the Administrator as a named
fiduciary under Section 19.01 (the “named fiduciary”) shall continuously
monitor the suitability under the fiduciary duty rules of ERISA Section 404(a)(1) (as
modified by ERISA Section 404 (a)(2)) of acquiring and holding Employer
Stock. The Trustee shall not be liable for any loss, or by reason of any
breach, which arises from the directions of the named fiduciary with respect to
the acquisition and holding of Employer Stock, unless it is clear on their face
that the actions to be taken under those directions would be prohibited by the
foregoing fiduciary duty rules or would be contrary to the terms of the
Plan or this Trust Agreement.

(c) Execution of Purchases and Sales. Purchases
and sales of Employer Stock shall be made on the open market on the date on
which the Trustee receives in good order all information and documentation
necessary to accurately effect such purchases and sales or (i) if later,
in the case of purchases, the date on which the Trustee has received a transfer
of the funds necessary to make such purchases, (ii) as otherwise provided
in the Service Agreement, or (iii) as provided in Subsection (d) below.
Such general rules shall not apply in the following circumstances:

(1) If the Trustee is unable to determine the
number of shares required to be purchased or sold on such day;

(2) If the Trustee is unable to purchase or sell the
total number of shares required to be
purchased or sold on such day as a result of market conditions; or

(3) If the Trustee is
prohibited by the Securities and Exchange Commission, the New York Stock Exchange, or any other regulatory body

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from purchasing or selling
any or all of the shares required to be purchased or sold on such day.

In the event of the occurrence of the circumstances
described in (1), (2), or (3) above, the Trustee shall purchase or sell
such shares as soon as possible thereafter and, in the case of a Share
Accounting Stock Fund, shall determine the price of such purchases or sales to
be the average purchase or sales price of all such shares purchased or sold,
respectively.

(d) Purchases and Sales from or to Employer. If
directed by the Employer in writing prior to the trading date, the Trustee may
purchase or sell Employer Stock from or to the Employer if the purchase or sale
is for adequate consideration (within the meaning of ERISA Section 3(18))
and no commission is charged. If Employer contributions or contributions made
by the Employer on behalf of the Participants under the Plan are to be invested
in Employer Stock, the Employer may transfer Employer Stock in lieu of cash to
the Trust. In such case, the shares of Employer Stock to be transferred to the
Trust will be valued at a price that constitutes adequate consideration (within
the meaning of ERISA Section 3(18)).

(e) Use of Broker to Purchase Employer Stock. The
Employer hereby directs the Trustee to use Fidelity Capital Markets, Inc.,
an affiliate of the Trustee, or any other affiliate or subsidiary of the
Trustee (collectively, “Capital Markets”), to provide brokerage services in
connection with all market purchases and sales of Employer Stock for the Stock
Fund, except in circumstances where the Trustee has determined, in accordance
with its standard trading guidelines or pursuant to Employer direction, to seek
expedited settlement of trades. The Trustee shall provide the Employer with the
commission schedule for such transactions, a copy of Capital Markets’ brokerage
placement practices, and an annual report which summarizes all securities
transaction-related charges incurred by the Plan. The following shall apply as
well:

(1) Any successor
organization of Capital Markets through reorganization, consolidation, merger,
or similar transactions, shall, upon consummation of such transaction, become
the successor broker in accordance with the terms of this provision.

(2) The Trustee shall continue
to rely on this Employer direction until notified to the contrary. The Employer
reserves the right to terminate this authorization upon sixty (60) days written
notice to Capital Markets (or its successor) and the Trustee and the Employer
and the Trustee shall decide on a mutually-agreeable alternative procedure for
handling brokerage transactions on behalf of the Stock Fund.

(f) Securities Law
Reports. The named fiduciary shall be responsible for filing all reports
required under Federal or state securities laws with respect to the Trust’s ownership of Employer Stock; including, without
limitation, any reports required under Section 13 or 16 of the Securities
Exchange Act of 1934 and shall immediately notify the Trustee in writing of any
requirement to stop purchases or sales of Employer Stock pending the filing of
any report. The Trustee shall provide to the named fiduciary such information
on the Trust’s ownership of Employer Stock as the named fiduciary may
reasonably request in order to comply with Federal or state securities laws.

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(g) Voting and Tender
Offers. Notwithstanding any other provision of the Trust Agreement the
provisions of this Subsection shall govern the voting and tendering of Employer
Stock. For purposes of this Subsection, each Participant shall be designated as
a named fiduciary under ERISA with respect to shares of Employer Stock that
reflect that portion, if any, of the Participant’s interest in the Stock Fund
not acquired at the direction of the Participant in accordance with ERISA Section 404(c).

The Employer, after consultation with the Trustee,
shall provide and pay for all printing, mailing, tabulation and other costs
associated with the voting and tendering of Employer Stock, except as required
by law. The Trustee, after consultation with the Employer, shall prepare the
necessary documents associated with the voting and tendering of Employer Stock,
unless the Employer directs the Trustee not to do so.

(1) Voting.

(A) When the issuer of the Employer Stock
prepares for any annual or special meeting, the Employer shall notify the
Trustee thirty (30) days in advance of the intended record date and shall cause
a copy of all proxy solicitation materials to be sent to the Trustee. If
requested by the Trustee, the Employer shall certify to the Trustee that the aforementioned
materials represent the same information that is distributed to shareholders of
Employer Stock. Based on these materials the Trustee shall prepare a voting
instruction form. At the time of mailing of notice of each annual or special
stockholders’ meeting of the issuer of the Employer Stock, the Employer shall
cause a copy of the notice and all proxy solicitation materials to be sent to
each Participant with an interest in Employer Stock held in the Trust, together
with the foregoing voting instruction form to be returned to the Trustee or its
designee. The form shall show the proportional interest in the number of full
and fractional shares of Employer Stock credited to the Participant’s
Sub-Accounts held in the Stock Fund. The Employer shall provide the Trustee
with a copy of any materials provided to the Participants and shall (if the
mailing is not handled by the Trustee) notify the Trustee that the materials
have been mailed or otherwise sent to Participants.

(B) Each Participant
with an interest in the Stock Fund shall have the right to direct the Trustee
as to the manner in which the Trustee is to vote (including not to vote) that number of shares of
Employer Stock that is credited to his Account, if the Plan uses share
accounting, or, if accounting is by units of participation, that reflects such
Participant’s proportional interest in the Stock Fund (both vested and unvested).
Directions from a Participant to the Trustee concerning the voting of Employer
Stock shall be communicated in writing, or by such other means mutually
acceptable to the Trustee and the Employer. These directions shall be held in
confidence by the Trustee and shall not be divulged to the Employer, or any
officer or employee thereof, or any other person, except to the extent that the
consequences of such directions are reflected in reports regularly communicated
to any such persons in the ordinary course of the performance of the Trustee’s
services hereunder. Upon its receipt of the directions, the Trustee shall vote
the shares of Employer Stock that reflect the Participant’s interest in the
Stock Fund as directed by the Participant. The Trustee shall not vote

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shares of Employer Stock that reflect a Participant’s interest in the Stock
Fund for which the Trustee has received no direction from the Participant,
except as required by law.

(2) Tender Offers.

(A) Upon commencement of a tender offer for any
securities held in the Trust that are Employer Stock, the Employer shall timely
notify the Trustee in advance of the intended tender date and shall cause a
copy of all materials to be sent to the Trustee. The Employer shall certify to
the Trustee that the aforementioned materials represent the same information
distributed to shareholders of Employer Stock. Based on these materials, and
after consultation with the Employer, the Trustee shall prepare a tender
instruction form and shall provide a copy of all tender materials to be sent to
each Participant with an interest in the Stock Fund, together with the
foregoing tender instruction form, to be returned to the Trustee or its designee. The tender
instruction form shall show the number of full and fractional shares of
Employer Stock credited to the Participant’s Account, if the Plan uses share
accounting, or, if accounting is by units of participation, that reflect the
Participant’s proportional interest in the Stock Fund (both vested and
unvested). The Employer shall notify each Participant with an interest in such
Employer Stock of the tender offer and utilize its best efforts to timely
distribute or cause to be distributed to the Participant the tender materials
and the tender instruction form described herein. The Employer shall provide
the Trustee with a copy of any materials provided to the Participants and shall
(if the mailing is not handled by the Trustee) notify the Trustee that the
materials have been mailed or otherwise sent to Participants.

(B) Each Participant
with an interest in the Stock Fund shall have the right to direct the Trustee
to tender or not to tender some or all of the shares of Employer Stock that are
credited to his Account, if the Plan uses share accounting, or, if accounting
is by units of participation, that reflect such Participant’s proportional
interest in the Stock Fund (both vested and unvested). Directions from a
Participant to the Trustee concerning the tender of Employer Stock shall be
communicated in writing, or by such other means as is agreed upon by the
Trustee and the Employer under the preceding paragraph. These directions shall
be held in confidence by the Trustee and shall not be divulged to the Employer,
or any officer or employee thereof, or any other person, except to the extent
that the consequences of such directions are reflected in reports regularly
communicated to any such persons in the ordinary course of the performance of
the Trustee’s services hereunder. The Trustee shall tender or not tender shares
of Employer Stock as directed by the Participant. Except as otherwise required
by law, the Trustee shall not tender shares of Employer Stock that are credited
to a Participant’s Account, if the Plan uses share accounting, or, if
accounting is by units of participation, that reflect a Participant’s
proportional interest in the Stock Fund for which the Trustee has received no
direction from the Participant.

(C) A Participant who
has directed the Trustee to tender some or all of the shares of Employer Stock
that reflect the Participant’s

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proportional interest in the
Stock Fund may, at any time prior to the tender offer withdrawal date, direct
the Trustee to withdraw some or all of such tendered shares, and the Trustee
shall withdraw the directed number of shares from the tender offer prior to the
tender offer withdrawal deadline. A Participant shall not be limited as to the
number of directions to tender or withdraw that the Participant may give to the
Trustee.

(D) A direction by a
Participant to the Trustee to tender shares of Employer Stock that reflect the
Participant’s proportional interest in the Stock Fund shall not be considered a
written election under the Plan by the Participant to withdraw, or have
distributed, any or all of his withdrawable shares. If the Plan uses share
accounting, the Trustee shall credit to the Participant’s Account the proceeds
received by the Trustee in exchange for the shares of Employer Stock tendered
from the Participant’s Account. If accounting is by units of participation, the
Trustee shall credit to each proportional interest of the Participant from
which the tendered shares were taken the proceeds received by the Trustee in
exchange for the shares of Employer Stock tendered from that interest. Pending
receipt of direction (through the Administrator) from the Participant or the
named fiduciary, as provided in the Plan, as to which of the remaining
Permissible Investments the proceeds should be invested in, the Trustee shall
invest the proceeds in the Permissible Investment specified for such purposes
in the Service Agreement or, if no such Permissible Investment has been
specified, the most conservative Permissible Investment designated by the
Employer in the Service Agreement.

(h) Shares Credited
.. If accounting with respect to the Stock Fund is by units of participation,
then for all purposes of this Section 20.12, the number of shares of
Employer Stock deemed “reflected” in a Participant’s proportional interest
shall be determined as of the last preceding valuation date. The trade date is
the date the transaction is valued.

(i) General. With
respect to all rights other than the right to vote, the right to tender, and
the right to withdraw shares previously tendered, in the case of Employer Stock
credited to a Participant’s Account or proportional interest in the Stock Fund,
the Trustee shall follow the directions of the Participant and if no such
directions are received, the directions of the named fiduciary. The Trustee
shall have no duty to solicit directions from Participants.

(j) Conversion. All
provisions in this Section 20.12 shall also apply to any securities
received as a result of a conversion to Employer Stock.

20.13. Voting; Delivery of Information. The Trustee
shall deliver, or cause to be executed and delivered, to the Employer or
Administrator all notices, prospectuses, financial statements, proxies and
proxy soliciting materials received by the Trustee relating to securities held
by the Trust or, if applicable, deliver these materials to the appropriate
Participant or the Beneficiary of a deceased Participant. The Trustee shall not
vote any securities held by the Trust except in accordance with the
instructions of the Employer, Participant, or the Beneficiary of the
Participant if the Participant is deceased; provided, however, that the Trustee
may, in the absence of instructions, vote “present” for the sole purpose of
allowing such shares to be counted for establishment of a quorum at a
shareholders’ meeting. The Trustee

 85
 

 

 

shall have no duty to solicit instructions from Participants,
Beneficiaries, or the Employer

20.14. Compensation and Expenses of Trustee. The
Trustee’s fee for performing its duties hereunder shall be such reasonable
amounts as the Trustee may from time to time specify in the Service Agreement
or any other written agreement with the Employer. Such fee, any taxes of any
kind which may be levied or assessed upon or with respect to the Trust Fund,
and any and all expenses, including without limitation legal fees and expenses
of administrative and judicial proceedings, reasonably incurred by the Trustee
in connection with its duties and responsibilities hereunder shall, unless some
or all have been paid by said Employer, be paid either from forfeitures
resulting under Section 11.08, or from the remaining Trust Fund and shall,
unless allocable to the Accounts of particular Participants, be charged against
the respective Accounts of all Participants, in such reasonable manner as the
Trustee may determine.

20.15. Reliance by Trustee on Other Persons. The
Trustee may rely upon and act upon any writing from any person authorized by
the Employer or the Administrator pursuant to the Service Agreement or any
other written direction to give instructions concerning the Plan and may
conclusively rely upon and be protected in acting upon any written order from
the Employer or the Administrator or upon any other notice, request, consent,
certificate, or other instructions or paper reasonably believed by it to have
been executed by a duly authorized person, so long as it acts in good faith in
taking or omitting to take any such action. The Trustee need not inquire as to
the basis in fact of any statement in writing received from the Employer or the
Administrator.

The Trustee shall be entitled to rely on the latest
certificate it has received from the Employer or the Administrator as to any
person or persons authorized to act for the Employer or the Administrator
hereunder and to sign on behalf of the Employer or the Administrator any
directions or instructions, until it receives from the Employer or the
Administrator written notice that such authority has been revoked.

Notwithstanding any provision contained herein, the
Trustee shall be under no duty to take any action with respect to any
Participant’s Account (other than as specified herein) unless and until the
Employer or the Administrator furnishes the Trustee with written instructions
on a form acceptable to the Trustee, and w the Trustee agrees thereto in
writing. The Trustee shall not be liable for any action taken pursuant to the
Employer’s or the Administrator’s written instructions (nor for the collection
of contributions under the Plan, nor the purpose or propriety of any
distribution made thereunder).

20.16. Indemnification by Employer. The Employer shall
indemnify and save harmless the Trustee, and all affiliates, employees, agents
and sub-contractors of the Trustee, from and against any and all liability or
expense (including reasonable attorneys’ fees) to which the Trustee, or such
other individuals or entities, may be subjected by reason of any act or conduct
being taken in the performance of any Plan-related duties, including those
described in this Trust Agreement and the Service Agreement, unless such
liability or expense results from the Trustee’s, or such other individuals’ or
entities’, negligence or willful misconduct.

20.17. Consultation by Trustee with Counsel. The
Trustee may consult with legal counsel (who may be but need not be counsel for
the Employer or the Administrator) concerning any question which may arise with
respect to its rights

 86
 

 

 

and duties under the Plan and Trust, and the opinion
of such counsel shall, to the extent permitted by law, be full and complete
protection in respect of any action taken or omitted by the Trustee hereunder
in good faith and in accordance with the opinion of such counsel.

20.18. Persons Dealing with the Trustee. No person
dealing with the Trustee shall be bound t see to the application of any money
or property paid or o delivered to the Trustee or to inquire into the validity
or propriety of any transactions 

20.19. Resignation or Removal of Trustee. The Trustee
may resign at any time by written notice to the Employer, which resignation
shall be effective 60 days after delivery to the Employer. The Trustee may be
removed by the Employer by written notice to the Trustee, which removal shall
be effective 60 days after delivery to the Trustee or such shorter period as
may be mutually agreed upon by the Employer and the Trustee.

Except in the case of Plan termination, upon resignation
or removal of the Trustee, the Employer shall appoint a successor trustee. Any
such successor trustee shall, upon written acceptance of his appointment,
become vested with the estate, rights, powers, discretion, duties and
obligations of the Trustee hereunder as if he had been originally named as
Trustee in this Agreement.

Upon resignation or removal of the Trustee, the
Employer shall no longer participate in this prototype plan and shall be deemed
to have adopted an individually designed plan. In such event, the Employer
shall appoint a successor trustee within said 60-day period and the
Trustee shall transfer the assets of the Trust to the successor trustee upon receipt of sufficient
evidence (such as a determination letter or opinion letter from the Internal
Revenue Service or an opinion of counsel satisfactory to the Trustee) that such
trust shall be a qualified trust under the Code.

The appointment of a successor trustee shall be
accomplished by delivery to the Trustee of written notice that the Employer has
appointed such successor trustee, and written acceptance of such appointment by
the successor trustee. The Trustee may, upon transfer and delivery of the Trust
Fund to a successor trustee, reserve such reasonable amount as it shall deem
necessary to provide for its fees, compensation, costs and expenses, or for the
payment of any other liabilities  chargeable
against the Trust Fund for which it may be liable. The Trustee shall not be
liable for the acts or omissions of any successor trustee.

20.20. Fiscal Year of the Trust. The fiscal year of
the Trust shall coincide with the Plan Year.

20.21. Discharge of Duties by Fiduciaries. The Trustee
and the Employer and any other fiduciary shall discharge their duties under the
Plan and this Trust Agreement solely in the interests of Participants and their
Beneficiaries in accordance with the requirements of ERISA.

20.22. Amendment. In accordance with provisions of the
Plan, and subject to the limitations set forth therein, this Trust Agreement
may be amended by an instrument in writing signed by the Employer and the
Trustee. No amendment to this Trust Agreement shall divert any part of the
Trust Fund to any purpose other than as provided in Section 20.03.

 87
 

 

 

20.23. Plan Termination. Upon termination or partial
termination of the Plan or complete discontinuance of contributions there
under, the Trustee shall make distributions to the Participants or other
persons entitled to distributions as the Employer or Administrator directs in
accordance with the provisions of the Plan. In the absence of such instructions
and unless the Plan otherwise provides, the Trustee shall notify the Employer
or Administrator of such situation and the Trustee shall be under no duty to
make any distributions under the Plan until it receives written instructions
from the Employer or Administrator. Upon the completion of such distributions, the Trust shall
terminate, the Trustee shall be relieved from all liability under the
Trust, and no Participant or other person shall have any claims there under,
except as required by applicable law.

20.24. Permitted Reversion of Funds to Employer. If it
is determined by the Internal Revenue Service that the Plan does not initially
qualify under Code Section 401, all assets then held under the Plan shall
be returned by the Trustee, as directed by the Administrator, to the Employer,
but only if the application for determination is made by the time prescribed by
law for filing the Employer’s return for the taxable year in which the Plan was
adopted or such later date as may be prescribed by regulations. Such
distribution shall be made within one year after the date the initial
qualification is denied. Upon such distribution the Plan shall be considered to
be rescinded and to be of no force or effect.

Contributions under the Plan are conditioned upon
their deductibility under Code Section 404. In the event the deduction of
a contribution made by the Employer is disallowed under Code Section 404,
such contribution (to the extent disallowed) must be returned to the Employer
within one year of the disallowance of the deduction.

Any contribution made by the Employer because of a
mistake of fact must be returned to the Employer within one year of the
contribution.

20.25. Governing Law. This Trust Agreement shall be
construed, administered and enforced
according to ERISA and, to the extent not preempted thereby, the laws of the
Commonwealth of Massachusetts.

Nothing contained in Sections 20.04, 20.13 or 20.21 or
this Section 20.25 shall be construed in a manner which subjects a
governmental plan (as defined in Code Section 414(d)) or a non-electing
church plan (as described in Code Section 410 (d)) to the fiduciary
provisions of Title I of ERISA.

 

 88

 

ADDENDUM

IRS   Model
Amendment for Proposed Regulations Under Section 401(a)(9) of the
Internal Revenue Code

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

 1
 

 

The CORPORATE plan for Retirement

ADDENDUM

Re: Economic Growth and Tax
Relief Reconciliation Act of 2001 

(“EGTRRA”)

Amendments for and Fidelity
Basic Plan Document No. 02

PREAMBLE

Adoption and Effective Date of
Amendment. This amendment of the Plan is
adopted to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This
amendment is intended as good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued there under. Except as
otherwise provided below, this amendment shall be effective as of the
first day of the first plan year beginning after December 31, 2001.

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

1.     Section 2.01(j), “Compensation,”
is hereby amended by adding the following paragraph to the end thereof:

Notwithstanding anything herein to the contrary, the annual Compensation
of each Participant taken into account in determining allocations for any Plan
Year beginning after December 31, 2001, shall not exceed $200,000, as
adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B).
Annual Compensation means Compensation during the Plan Year or such other
consecutive 12-month period over which Compensation is otherwise
determined under the Plan (the determination period). The cost-of-living
adjustment in effect for a calendar year applies to annual Compensation for the
determination period that begins with or within such calendar year.

2.         Section 2.01(l), “Deferral Contribution,” is hereby amended by
replacing the period with a semicolon and adding the following to the end
thereof:

provided, however, that the term ‘Deferral Contribution’ shall exclude
all catch-up contributions as described in Section 5.03(b)(1) for
purposes of Matching Employer Contributions as described in Section 1.10
of the Adoption Agreement, unless otherwise elected by the Employer in Section (c) of
the EGTRRA Amendments Addendum to the Adoption Agreement.

3.     Section 2.01(tt) “Rollover
Contribution” is hereby amended as follows:

‘Rollover Contribution’ means
any distribution from an eligible retirement plan as defined in Section 5.06
that an Employee elects to contribute to the Plan in accordance with the terms
of such Section 5.06.

4.                The existing text of Section 5.03 is
hereby redesignated as Section 5.03(a), and a new Section 5.03(b) is
hereby added to read as follows

(b)       Catch-up Contributions.

(1)           If elected by the Employer in Section (a) of
the EGTRRA Amendments Addendum to the Adoption Agreement, all Participants who
are eligible to make Deferral Contributions under the Plan and who are
projected to attain age 50 before the close of the calendar year shall be
eligible to make catch-up contributions in accordance with, and subject to the
limitations of, Code Section 414(v). Such catch up contributions shall not
be taken into account for purposes of the provisions of the Plan implementing
the required limitations of Code Sections 402(g) and 415. The Plan shall
not be treated

 2
 

 

as failing to satisfy the provisions of the Plan implementing the
requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or
416, as applicable, by reason of the making of such catch-up contributions.

(2)                   Unless otherwise elected by the Employer in Section (b) of
the EGTRRA Amendments Addendum to the Adoption Agreement, if the Plan permits
catch-up contributions, as described in paragraph (1) above on April 1,
2002, then, notwithstanding anything herein to the contrary, effective April 1,
2002, the limit on Deferral Contributions, as otherwise provided in Section 1.07(a)(1) (the
“Plan Limit”) shall be 60% of Compensation for the payroll period in question,
provided, however, that this Section 5.03(b)(2) shall be inapplicable
if the Plan’s Section 1.01(g)(2)(B) Amendment Effective Date is after
April 1, 2002.

(3)         In the event that the Plan Limit
is changed during the Plan Year, for purposes of determining catch up
contributions for the Plan Year, as described in paragraph (1) above, the
Plan Limit shall be determined pursuant to the time-weighted average method
described in Proposed Income Tax Regulation
Section 1.414(v)-1(b)(2)(i).

5.     Section 5.06 is hereby
amended to add the following paragraph to the end thereof:

Unless otherwise elected by the Employer in Section (e) of the
EGTRRA Amendments Addendum to the Adoption Agreement, the Plan will accept
Participant Rollover Contributions and/or direct rollovers of distributions
made after December 31, 2001 (including Rollover Contributions received by
the Participant as a surviving spouse, or a spouse or former spouse who is an
alternate payee under a qualified domestic relations order), from the following
types of plans:

(a)                  a qualified plan described in Code Section 401(a) or
403(a), including after-tax employee contributions (provided, however, that any
such after-tax employee contributions must be contributed in a direct rollover);

(b)                 an annuity contract described in Code Section 403(b),
excluding after-tax employee contributions;

(c)                  an eligible plan under Code Section 457(b) that
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state; and

(d)                 Participant Rollover Contributions of the
portion of a distribution from an individual retirement account or annuity
described in Code Section 408(a) or 408(b) that is eligible to
be rolled over and would otherwise be includible in gross income, provided,
however, that the Plan will in no event accept a rollover contribution
consisting of nondeductible individual retirement account or annuity contributions.

6.     The first
paragraph of Section 6.02 is hereby amended by replacing the first
sentence thereof with the following:

In no event shall the amount of Deferral Contributions made under the
Plan for a calendar year, when aggregated with the ‘elective deferrals’ made under
any other plan maintained by the Employer or a Related Employer, exceed the
dollar limitation contained in Code Section 402(g) in effect at the
beginning of such calendar year, except to the extent permitted under Section 5.03(b)(1) and
Code Section 414(v), if applicable.

7.     Section 6.08 is hereby
amended by adding the following sentence to the end thereof:

Notwithstanding anything herein to the contrary, the multiple use test
described in Treasury Regulation Section 1.401(m)-2 and this Section 6.08
shall not apply for Plan Years beginning after December 31, 2001.

8.     Section 6.12 is hereby
amended by adding a new subsection 6.12(e) thereto as follows:

(e)                  Maximum Annual Additions for Limitation Years
Beginning After December 31, 2001 Notwithstanding anything herein to the
contrary, this subsection (e) shall be effective for Limitation

 3
 

 

Years beginning after December 31, 2001. Except to the extent
permitted under Section 5.03(b)(1) and Code Section 414(v), if
applicable, the ‘annual additions’ that may be contributed or allocated to a
Participant’s Account under the Plan for any Limitation Year shall not exceed
the lesser of:

(1)             $40,000, as adjusted for increases in the
cost-of-living under Code Section 415(d), or

(2)                100 percent of the Participant’s compensation,
within the meaning of Code Section 415(c)(3), for the Limitation Year.

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

9.         Section 9.04 is hereby amended by replacing the final period in the
first paragraph with a semi-colon and adding the following to the end thereof: 

provided,
however, that notwithstanding anything herein to the contrary, effective for
Plan loans made after December 31, 2001, Plan provisions prohibiting loans
to any ‘owner-employee’ or ‘shareholder-employee’ shall cease to apply.

10.   Section 10.05(b)(2) is hereby amended by replacing the
semicolon with a period and adding the following to the end thereof: Notwithstanding
anything herein to the contrary, the rule in this Section 10.05(b)(2) shall
be applied to a Participant who receives a distribution after December 31,
2001, on account of hardship, by substituting the phrase ‘the 6-month
period’ for the phrase ‘the 12-month period’.

11.   Section 10.05(b)(4) is
hereby amended by adding the following phrase to the beginning thereof:

Effective
for calendar years beginning before January 1, 2002, for a Participant who
received a hardship distribution before January 1, 2001,

12.   The existing text of Section 11.05 is hereby redesignated as Section 11.05(a),
and a new Section 11.05(b) is hereby added to read as follows:

(b) Vesting of Matching Employer Contributions . Notwithstanding anything herein to the
contrary, the vesting schedule elected by the Employer in Section (d)(1) of
the EGTRRA Amendments Addendum to the Adoption Agreement shall apply to all
accrued benefits derived from Matching Employer Contributions for Participants
who complete an Hour of Service in a Plan Year beginning after December 31,
2001, except as otherwise elected by the Employer in Section (d)(2) or
Section (d)(3) of the EGTRRA Amendments Addendum to the Adoption
Agreement. With respect to Participants covered by a collective bargaining
agreement, the vesting schedule elected in Section (d)(1) of the
EGTRRA Amendments Addendum to the Adoption Agreement shall take effect on a
later date if so elected in Section (d)(2). If so elected in Section (d)(3) of
the EGTRRA Amendments Addendum to the Adoption Agreement, the vesting schedule
elected in Section (d)(1) shall apply only to the accrued benefits
derived from Matching Employer Contributions made with respect to Plan Years beginning
after December 31, 2001 (or such later date as may be provided in Section (d)(2) for
Participants covered by a collective bargaining agreement).

13.
  The existing text of Section 12.01 is
hereby redesignated as Section 12.01(a), current subsections (a), (b), and
(c) thereof are redesignated as paragraphs (1), (2), and (3),
respectively, and the first sentence thereof is replaced with the following:

Subject to the application of Section 12.01(b), a Participant or
his Beneficiary may not receive a distribution from his Deferral Contributions,
Qualified Nonelective Employer Contributions, Qualified Matching Employer
Contributions, safe harbor Matching Employer Contributions or safe harbor
Nonelective Employer Contributions Accounts earlier than upon the Participant’s
separation from service with the Employer and all Related Employers, death, or
disability, except as otherwise provided in Article 10 or Section 12.04.

 4
 

 

14.   Section 12.01
is hereby amended by adding a new subsection (b) to the end thereof:

(b) If
elected by the Employer in Section (f) of the EGTRRA Amendments
Addendum to the Adoption Agreement, notwithstanding subsection (a) of this
Section 12.01, a Participant, or his Beneficiary, may receive a
distribution after December 31, 2001 (or such later date as specified
therein), from his Deferral Contributions, Qualified Nonelective Employer
Contributions, Qualified Matching Employer Contributions, safe harbor Matching
Employer Contributions or safe harbor Nonelective Employer Contributions Accounts
on account of the Participant’s severance from employment occurring after the
dates specified in Section (f) of the EGTRRA Amendments Addendum to
the Adoption Agreement.

15.   Section 13.04
is hereby amended by adding the following paragraph to the end thereof:

Notwithstanding anything herein to the contrary, the following
provisions shall apply to distributions made after December 31, 2001:

(i)                                  Modification of definition of eligible
retirement plan. For purposes of this Section 13.04, an ‘eligible retirement
plan’ shall also mean an annuity contract described in Code Section 403(b) and
an eligible deferred
compensation plan under Code Section 457(b) that is maintained by a
state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from this Plan.
The definition of ‘eligible retirement plan’ shall also apply in the case of a
distribution to a surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined in Code Section 414(p).

(ii)                               Modification
of definition of eligible rollover distribution to exclude hardship
distributions. For purposes of
this Section 13.04, any amount that is distributed on account of hardship
shall not be an ‘eligible rollover distribution’ and the ‘distributee’ may not
elect to have any portion of such a distribution paid directly to an ‘eligible
retirement plan.’

(iii)                            Modification of definition of eligible
rollover distribution to include after-tax Employee Contributions. For purposes
of this Section 13.0 4, a portion of a distribution shall not fail to be
an “eligible rollover distribution” merely because the portion consists of
after-tax Employee Contributions which a re not includible in gross income.
However, such portion may be transferred only to an individual retirement
account or annuity described in Code Section 408(a) or (b), or to a
qualified defined contribution plan described
in Code Section 401(a) or 403(a) that agrees to separately
account for amounts so transferred, including separately accounting for
the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.

16.   Article 15 is hereby
amended by adding a new Section 15.08 at the end t hereof as follows:

15.08. Modification of Top-Heavy Provisions. Notwithstanding anything herein to the
contrary, this Section 15.08 shall apply for purposes of determining whether
the Plan is a top-heavy plan under Code Section 416(g) for Plan Years
beginning after December 31, 2001, and whether the Plan satisfies the
minimum benefits requirements of Code Section 416(c) for such years.
This Section modifies the rules in this Article 15 of the Plan
for Plan Years beginning after December 31, 2001.

(a) Determination of top-heavy status

(1) Key employee. Key employee means any Employee or former
Employee (including any deceased Employee) who at any time during the Plan Year
that includes the determination date was an officer of the Employer having
annual compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002), a 5-percent owner of
the Employer, or a 1-percent owner of the Employer having annual
compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Code Section 415(c)(3). The
determination of who is a key

 5
 

 

employee will be made in accordance with Code Section 416(i)(1) and
the applicable regulations and other guidance of general applicability issued
there under.

(2)                          Determination of present values and amounts.
This Section 15.08(a)(2) shall apply for purposes of determining the
present values of accrued benefits and the amounts of account balances of
Employees as of the determination date.

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

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

(b)                                Minimum benefits.

(1)           Matching contributions . Matching Employer Contributions shall be taken
into account for purposes of satisfying the minimum contribution requirements
of Code Section 416(c)(2) and the Plan. The preceding sentence shall
apply with respect to Matching Employer Contributions under the Plan or, if the
Plan provides that the minimum contribution requirement shall be met in another
plan, such other plan. Matching Employer Contributions that are used to satisfy
the minimum contribution requirements shall be treated as matching
contributions for purposes of the actual contribution percentage test and other
requirements of Code Section 401(m).

(2)         Contributions under other plans . The Employer may provide in the
Adoption Agreement that the minimum benefit requirement shall be met in another
plan (including another plan that consists solely of a cash or deferred
arrangement which meets the requirements of Code Section (k)(12) and 401
matching contributions with respect to which the requirements of Code Section 401(m)(11)
are met).

(c)                                 Other Modifications. The top-heavy
requirements of Code Section 416 and this Article 15 shall not apply in
any year beginning after December 31,
2001, in which the Plan consists solely of a cash or deferred arrangement which
meets the requirements of Code Section 401(k)(12) and Matching Employer
Contributions with respect to which the requirements of Code Section 401(m)(11)
are met.

 6

 

ADDENDUM

IRS Model
Amendment for Final and Temporary Regulations 

Under Internal Revenue Code Section 401(a)(9)

Section 1.
General Rules

1.1            Effective Date. The provisions of this
addendum will apply for purposes of determining required minimum distributions
for calendar years beginning with the 2003 calendar year.

1.2            Precedence. The requirements of this addendum
will take precedence over any inconsistent provisions of the Plan.

1.3            Requirements of Treasury Regulations
Incorporated. All distributions required under this addendum will be determined
and made in accordance with the Treasury regulations under section 401(a)(9) of
the Internal Revenue Code.

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

Section 2.
Time and Manner of Distribution.

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

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

(a)      If the Participant’s surviving spouse is the Participant’s sole
designated Beneficiary, then, except as otherwise elected under section 6,
distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant
died, or by December 31 of the calendar year in which the Participant
would have attained age 701⁄2, if later.

(b)     If the Participant’s surviving spouse is not the Participant’s sole
designated Beneficiary, then, except as otherwise elected under section 6,
distributions to the designated Beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the
Participant died.

(c)      If there is no designated Beneficiary as of September 30 of the
year following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

(d)     If the Participant’s surviving spouse is the Participant’s sole
designated Beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this section 2.2, other
than section 2.2(a), will apply as if the surviving spouse were the
Participant.

For purposes of this section 2.2 and section 4, unless section 2.2(d) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date. If section 2.2(d) applies, distributions are considered to begin on
the date distributions are required to begin
to the surviving spouse under section 2.2(a). If distributions under an annuity
purchased from an insurance company
irrevocably commence to the Participant before the Participant’s Required
Beginning Date (or to the
Participant’s surviving spouse before the date distributions are required to
begin to the surviving spouse under section 2.2 (a)), the date
distributions are considered to begin is the date distributions actually
commence.

2.3            Forms of Distribution. Unless the Participant’s
interest is distributed in the form of an annuity purchased from an insurance
company or in a single sum on or before the Required Beginning Date, as of the
first distribution calendar year distributions will be made in accordance with
sections 3 and 4 of this addendum. If the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company, distributions
there under will be made in

 1
 

 

accordance with the
requirements of section 401(a)(9) of the Code and the Treasury
regulations.

Section 3. Required Minimum Distributions During Participant’s
Lifetime.

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

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

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

3.2            Lifetime Required Minimum Distributions
Continue Through Year of Participant’s Death. Required minimum distributions
will be determined under this section 3 beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

Section 4. Required Minimum Distributions After Participant’s
Death.

4.1            Death On or After Date Distributions Begin.

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

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

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

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

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

4.2            Death Before Date Distributions Begin.

(a) Participant
Survived by Designated Beneficiary. Except as otherwise elected under section
6, if the Participant dies before the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for

 2
 

 

each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the
remaining life expectancy of the Participant’s designated Beneficiary,
determined as provided in section 4.1.

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

(c) Death
of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole designated
Beneficiary, and the surviving spouse dies before distributions are required to
begin to the surviving spouse under section 2.2(a), this section 4.2 will
apply as if the surviving spouse were the Participant.

Section 5. Definitions.

5.1            Designated Beneficiary. The individual who is
the designated Beneficiary, as such term is defined under section 2.01 of the
Plan, and is the designated Beneficiary under section 401(a)(9) of the
Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the
Treasury regulations.

5.2            Distribution calendar year. A calendar year
for which a minimum distribution is required. For distributions beginning before
the Participant’s death, the first distribution calendar year is the calendar
year immediately preceding the calendar year which contains the Participant’s
Required Beginning Date. For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which
distributions are required to begin under section 2.2. The required minimum
distribution for the Participant’s first distribution calendar year will be
made on or before the Participant’s Required Beginning Date. The required
minimum distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in which the
Participant’s Required Beginning Date occurs, will be made on or before December 31
of that distribution calendar year.

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

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

5.5            Required Beginning Date. The Required
Beginning Date, as such term is defined in section 2.01 of the Plan.

Section 6.
Elections.

(a) Participants or Beneficiaries May Elect 5-Year Rule.
Participants or Beneficiaries may elect on an individual basis whether the 5-year
rule or the life expectancy rule in sections 2.2 and 4.2 of this
addendum applies to distributions after the death of a Participant who has a
designated Beneficiary. The election must be made no later than the earlier of
September 30 of the calendar year in which distribution would be required to
begin under section 2.2 of this addendum, or by September 30 of the
calendar year which contains the fifth anniversary of the Participant’s (or, if
applicable, the surviving spouse’s) death. If neither the Participant nor the
Beneficiary makes an election under this section 6, distributions will be made
in accordance with sections 2.2 and 4.2 of this addendum 

(b) Designated Beneficiary Receiving Distributions Under 5-Year
Rule May Elect Life Expectancy Distributions. A

 3
 

 

designated
Beneficiary who is receiving payments under the 5-year rule may make
a new election to receive payments under the life expectancy rule until December 31,
2003, provided that all amounts that would have been required to be distributed
under the life expectancy rule for all distribution calendar years before
2004 are distributed by the earlier of December 31, 2003 or the end of the
5-year period.

 4
 

 

The CORPORATE plan
for Retirement
ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001 

(“EGTRRA”)

Second Amendment for Fidelity Basic Plan Document No. 0 2

PREAMBLE

Adoption and Effective Date of
Amendment. This amendment of the Plan is adopted to reflect
certain provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This
amendment is intended as good faith
compliance with the requirements of EGTRRA and is to be construed in accordance
with EGTRRA and guidance issued there under. This amendment shall be effective December 1,
2003.

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

The following
paragraph is hereby added to the end of Section 16.04:

Notwithstanding
anything in the Basic Plan Document or Adoption Agreement (including addenda
thereto) to the contrary, to the extent permitted by any regulation or other
guidance under the Code, forms of payment may be eliminated without the
application of a waiting period and without prior notice to Participants
effective with respect to Participants whose Annuity Starting Dates occur on or
after the date the Plan amendment eliminating such forms of payment is adopted;
provided, however, that to the extent any regulation or other guidance under
the Code requires prior notice to Participants as a precondition to the
elimination of any form of payment or imposes any other requirement on such
elimination, no such elimination shall be effective unless the Plan
Administrator has complied with such notice or other requirement.

 5

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