Document:

exv10w8w1

Exhibit 10.8.1

COLT DEFENSE LLC

SALARIED RETIREMENT INCOME PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE 1

	 	 	 
	 	 	 	 
	DEFINITIONS

	 	 	 
	 	 	 	 
	1.1	 	ACCRUED BENEFIT
	 	 	1	 
	1.2	 	ACTUARIAL EQUIVALENT (EQUIVALENCE)
	 	 	1	 
	1.3	 	ADMINISTRATOR
	 	 	2	 
	1.4	 	ADOPTING EMPLOYER
	 	 	2	 
	1.5	 	AFFILIATED EMPLOYER
	 	 	3	 
	1.6	 	AGE
	 	 	3	 
	1.7	 	ANNIVERSARY DATE
	 	 	3	 
	1.8	 	ANNUITY STARTING DATE
	 	 	3	 
	1.9	 	BENEFICIARY
	 	 	3	 
	1.10	 	CREDITED SERVICE
	 	 	3	 
	1.11	 	COMPENSATION
	 	 	4	 
	1.12	 	DETERMINATION DATE
	 	 	4	 
	1.13	 	DISABILITY
	 	 	4	 
	1.14	 	DISABILITY RETIREMENT
	 	 	5	 
	1.15	 	EARLY RETIREMENT AGE
	 	 	5	 
	1.16	 	EMPLOYEE
	 	 	5	 
	1.17	 	EMPLOYMENT COMMENCEMENT DATE
	 	 	5	 
	1.18	 	EMPLOYER
	 	 	5	 
	1.19	 	FIDUCIARY
	 	 	5	 
	1.20	 	FISCAL YEAR
	 	 	5	 
	1.21	 	HIGHLY COMPENSATED EMPLOYEE
	 	 	5	 
	1.22	 	1.22 HOUR OF SERVICE
	 	 	6	 
	1.23	 	LEASED EMPLOYEE
	 	 	7	 
	1.24	 	LIMITATION YEAR
	 	 	7	 
	1.25	 	MATERNITY OR PATERNITY LEAVE
	 	 	7	 
	1.26	 	NORMAL FORM OF RETIREMENT BENEFIT
	 	 	7	 
	1.27	 	NORMAL RETIREMENT AGE
	 	 	7	 
	1.28	 	NORMAL RETIREMENT DATE
	 	 	8	 
	1.29	 	PERIOD OF SERVICE
	 	 	8	 
	1.30	 	PERIOD OF SEVERANCE
	 	 	8	 
	1.31	 	PARTICIPANT
	 	 	8	 
	1.32	 	PLAN
	 	 	8	 
	1.33	 	PREVIOUS EMPLOYER
	 	 	8	 
	1.34	 	PRIOR PLAN
	 	 	8	 
	1.35	 	QUALIFIED JOINT AND SURVIVOR ANNUITY
	 	 	8	 
	1.36	 	QUALIFIED PRE-RETIREMENT SURVIVOR ANNUITY
	 	 	8	 
	1.37	 	REQUIRED BEGINNING DATE
	 	 	9	 
	1.38	 	SECTION 415 COMPENSATION
	 	 	9	 
	1.39	 	SEVERENCE FROM SERVICE DATE
	 	 	9	 
	1.40	 	SOCIAL SECURITY RETIREMENT AGE
	 	 	10	 
	1.41	 	TERMINATION OF EMPLOYMENT
	 	 	10	 
	1.42	 	TERMINATED PARTICIPANT
	 	 	10	 
	1.43	 	TRUSTEE
	 	 	10	 
	1.44	 	TRUST FUND
	 	 	10	 
	1.45	 	VALUATION DATE
	 	 	10	 
	1.46	 	VESTED AGGREGATE ACCRUED BENEFIT
	 	 	10	 
	1.47	 	VESTED INTEREST
	 	 	10	 

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	 	 	 	 	Page	 
	1.48	 	YEAR OF SERVICE
	 	 	11	 
	1.49	 	YEARS OF PARTICIPATION SERVICE
	 	 	11	 
	1.50	 	YEARS OF VESTING SERVICE
	 	 	11	 
	 	 	 
	 	 	 	 
	ARTICLE 2

	PLAN PARTICIPATION

	 	 	 
	 	 	 	 
	2.1	 	ELIGIBILITY REQUIREMENTS
	 	 	12	 
	2.2	 	ENTRY DATE
	 	 	13	 
	2.3	 	ELIGIBILITY OF PARTICIPANT FOLLOWING A PERIOD OF SEVERANCE
	 	 	13	 
	2.4	 	TRANSFERS
	 	 	13	 
	2.5	 	REPAYMENT OF PRIOR DISTRIBUTION UPON REEMPLOYMENT
	 	 	13	 
	 	 	 
	 	 	 	 
	ARTICLE 3

	CONTRIBUTIONS AND ALLOCATIONS

	 	 	 
	 	 	 	 
	3.1	 	EMPLOYER CONTRIBUTIONS
	 	 	14	 
	3.2	 	REFUND OF CONTRIBUTIONS
	 	 	14	 
	 	 	 
	 	 	 	 
	ARTICLE 4

	PLAN BENEFITS

	 	 	 
	 	 	 	 
	4.1	 	ACCRUED BENEFIT
	 	 	14	 
	4.2	 	BENEFIT UPON EARLY RETIREMENT
	 	 	15	 
	4.3	 	VALUATION DATE
	 	 	15	 
	4.4	 	BENEFIT UPON LATE RETIREMENT
	 	 	15	 
	4.5	 	BENEFIT UPON DEATH
	 	 	16	 
	4.6	 	BENEFIT UPON DISABILITY
	 	 	16	 
	4.7	 	BENEFIT UPON TERMINATION
	 	 	16	 
	4.8	 	DETERMINATION OF VESTED INTEREST
	 	 	16	 
	 	 	 
	 	 	 	 
	ARTICLE 5

	DISTRIBUTION OF BENEFITS

	 	 	 
	 	 	 	 
	5.1	 	BENEFIT UPON RETIREMENT
	 	 	17	 
	5.2	 	BENEFIT UPON DEATH
	 	 	17	 
	5.3	 	DISABILITY BENEFITS
	 	 	18	 
	5.4	 	BENEFIT UPON TERMINATION
	 	 	19	 
	5.5	 	CASH-OUT OF BENEFITS
	 	 	19	 
	5.6	 	SPOUSAL CONSENT REQUIREMENTS
	 	 	19	 
	5.7	 	APPLICATION OF CODE SECTION 401(a)(9)
	 	 	20	 
	5.8	 	STATUTORY COMMENCEMENT OF BENEFITS
	 	 	20	 
	5.9	 	DISTRIBUTION IN EVENT OF LEGAL INCAPACITY
	 	 	21	 
	5.10	 	DIRECT ROLLOVERS
	 	 	21	 
	5.11	 	OPTIONAL FORMS OF DISTRIBUTION
	 	 	21	 
	5.12	 	SUSPENSION OF BENEFITS
	 	 	22	 
	 	 	 
	 	 	 	 
	ARTICLE 6

	CODE §415 LIMITATIONS

	 	 	 
	 	 	 	 
	6.1	 	MAXIMUM ANNUAL BENEFIT
	 	 	23	 

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	 	 	 	 	Page	 
	ARTICLE 7

	ADMINISTRATION OF THE PLAN

	 	 	 
	 	 	 	 
	7.1	 	POWERS AND DUTIES OF THE ADMINISTRATOR
	 	 	24	 
	7.2	 	PLAN ADMINISTRATOR
	 	 	25	 
	7.3	 	ADMINISTRATIVE PROCEDURES
	 	 	25	 
	7.4	 	ADMINISTRATOR TO MAINTAIN RECORDS
	 	 	25	 
	7.5	 	CLAIMS PROCEDURES
	 	 	26	 
	7.6	 	RELIANCE ON COUNSEL, ETC
	 	 	27	 
	7.7	 	COMPENSATION AND LIABILITY
	 	 	27	 
	7.8	 	ACTUARY
	 	 	27	 
	7.9	 	ADMINISTRATOR REPORTS AND ACCOUNTS
	 	 	27	 
	7.10	 	PAYMENTS BY ADMINISTRATOR
	 	 	27	 
	7.11	 	EXPENSES
	 	 	27	 
	 	 	 
	 	 	 	 
	ARTICLE 8

	DUTIES OF THE TRUSTEE

	 	 	 
	 	 	 	 
	8.1	 	APPOINTMENT, RESIGNATION, REMOVAL AND SUCCESSION
	 	 	28	 
	8.2	 	INVESTMENT ALTERNATIVES OF THE TRUSTEE
	 	 	28	 
	8.3	 	VALUATION OF THE TRUST FUND
	 	 	30	 
	8.4	 	COMPENSATION AND EXPENSES
	 	 	30	 
	8.5	 	PAYMENTS FROM THE TRUST FUND
	 	 	30	 
	8.6	 	PAYMENT OF TAXES
	 	 	30	 
	8.7	 	ACCOUNTS, RECORDS AND REPORTS
	 	 	31	 
	8.8	 	EMPLOYMENT OF AGENTS AND COUNSEL
	 	 	31	 
	8.9	 	DIVISION OF DUTIES AND INDEMNIFICATION
	 	 	31	 
	8.10	 	APPOINTMENT OF INVESTMENT MANAGER
	 	 	32	 
	8.11	 	ASSIGNMENT AND ALIENATION OF BENEFITS
	 	 	33	 
	8.12	 	EXCLUSIVE BENEFIT RULE
	 	 	33	 
	8.13	 	PURCHASE OF INSURANCE
	 	 	33	 
	8.14	 	SUPERSEDING TRUST OR CUSTODIAL AGREEMENT
	 	 	33	 
	 	 	 
	 	 	 	 
	ARTICLE 9

	AMENDMENT, TERMINATION AND MERGER

	 	 	 
	 	 	 	 
	9.1	 	AMENDMENT
	 	 	33	 
	9.2	 	TERMINATION
	 	 	34	 
	9.3	 	MERGER OR CONSOLIDATION
	 	 	34	 
	9.4	 	ALLOCATION OF ASSETS UPON TERMINATION
	 	 	34	 
	9.5	 	EARLY TERMINATION PROVISIONS
	 	 	35	 
	 	 	 
	 	 	 	 
	ARTICLE 10

	TOP HEAVY PROVISIONS

	 	 	 
	 	 	 	 
	10.1	 	TOP HEAVY
	 	 	37	 
	10.2	 	MINIMUM BENEFIT
	 	 	37	 
	10.3	 	MINIMUM VESTING
	 	 	37	 
	10.4	 	DEFINITIONS
	 	 	38	 
	10.5	 	COMPENSATION
	 	 	39	 
	10.6	 	PLAN YEAR IN WHICH PLAN IS TOP HEAVY
	 	 	39	 
	10.7	 	PLAN YEAR IN WHICH PLAN CEASES TO BE TOP HEAVY
	 	 	39	 

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	 	 	 	 	Page	 
	ARTICLE 11

	MISCELLANEOUS PROVISIONS

	 	 	 
	 	 	 	 
	11.1	 	NO CONTRACT OF EMPLOYMENT
	 	 	39	 
	11.2	 	TITLE TO ASSETS
	 	 	39	 
	11.3	 	QUALIFIED MILITARY SERVICE
	 	 	39	 
	11.4	 	FIDUCIARIES AND BONDING
	 	 	40	 
	11.5	 	SEVERABILITY OF PROVISIONS
	 	 	40	 
	11.6	 	GENDER AND NUMBER
	 	 	40	 
	11.7	 	HEADINGS AND SUBHEADINGS
	 	 	40	 
	11.8	 	LEGAL ACTION
	 	 	40	 
	 	 	 
	 	 	 	 
	APPENDIX I	 	 	 	 
	     EARLY RETIREMENT ADJUSTMENT FACTORS	 	 	41	 

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COLT DEFENSE LLC

SALARIED RETIREMENT INCOME PLAN

THIS PLAN, hereby adopted this 12th day of December, 2002, by Colt Defense LLC.

WITNESSETH:

     WHEREAS, effective November 4, 2002, a new corporate entity, Colt Defense LLC (herein referred
to as the “Employer”) spun-off from Colt’s Manufacturing Company, Inc. in order to facilitate
meeting corporate organizational and financial objectives; and

     WHEREAS, the Employer desires to concurrently establish the Colt Defense LLC Salaried
Retirement Income Plan for the exclusive benefit of its eligible employees and their beneficiaries;

     WHEREAS, the Employees of the Employer who were previously among the participants in the
Colt’s Manufacturing Company, Inc. Salaried Retirement Income Plan (herein referred to as the
“Prior Plan”), sponsored by Colt’s Manufacturing Company, Inc. shall become Participants under this
Plan on November 4, 2002 (herein referred to as the “Effective Date”). Any Employee becoming a
Participant under the Plan on the Effective Date shall be credited with a Year of Service for
purposes of Plan eligibility, as well as Credited Service for purposes of benefit accrual and
vesting, that were credited under the terms of the Prior Plan; and

     WHEREAS, assets of the trust funding the benefits of former participants in the Prior Plan who
are now Participants under this Plan shall be allocated to a separate trust. Future contributions
to the trust funding this Plan will be made on the basis of separate actuarial determinations for
this Plan.

     NOW, THEREFORE, the Employer hereby establishes the Colt Defense LLC Salaried Employees’
Retirement Income Plan, to provide as follows:

ARTICLE 1

DEFINITIONS

1.1 ACCRUED BENEFIT

The term Accrued Benefit means the benefit amount earned by a Participant as of a specified
date as determined under Section 4.1. The accrual computation period used to compute a
Participant’s Accrued Benefit will be the Plan Year. A Participant’s Accrued Benefit in a
given year will never be less than the Actuarial Equivalent of his or her Accrued Benefit
as of the end of the prior Plan Year except as otherwise permitted by law. A Participant’s
Accrued Benefit will be reduced by the Actuarial Equivalent of any Plan benefits previously
paid from this Plan. To the extent such benefits are attributable to concurrent periods of
service, a Participant’s service under this Plan will be reduced by any service for which
benefits were provided under the other plan. A Participant who completes a Year of Service
will accrue a benefit for that Plan Year even if he or she terminates employment before the
end of the Plan Year.

1.2 ACTUARIAL EQUIVALENT (EQUIVALENCE)

The term Actuarial Equivalent or Actuarial Equivalence means a benefit having the same
value on the date payment commence as another stated benefit. The amount of any form of
benefit under the terms of this Plan will be the Actuarial Equivalent of the Participant’s
Accrued Benefit payable as a Normal Form of Retirement Benefit beginning at the
Participant’s Normal Retirement Date or actual retirement date if later, or if applicable,
the Participant’s Early Retirement Age.

The Actuarial Equivalent of an Accrued Benefit will be determined as of the applicable date
on the basis of the payee’s actual age (or nearest age in years or in years and months),
consistently determined by the Administrator.

 

 

If a Participant’s Accrued Benefit is payable at any time prior to the Participant’s Normal
Retirement Date, or is payable in a form other than the Normal Form of Retirement Benefit,
it will be adjusted to reflect the Actuarial Equivalent of such amount as of the first day
of the month coincident with or next following the actual commencement of benefits. If a
Participant’s Accrued Benefit is payable at any time after the Participant’s Normal
Retirement Date, it will be adjusted in accordance with Section 4.3 of the Plan.

Except as may otherwise be permitted by the Code and by the regulations thereunder, if the
definition of Actuarial Equivalence is amended, in no event will the lump sum Actuarial
Equivalent of an Accrued Benefit determined on the date a benefit commences be less than
the Actuarially Equivalent value of the Accrued Benefit as determined one day prior to the
date of change, based on the terms of the Plan as in effect on such day.

Actuarial Equivalence will be determined on the basis of the interest and mortality factors
specified in paragraph (a) below, except in the case of benefits paid in a lump sum. The
Actuarial Equivalent of benefits paid in a lump sum will be determined on the basis of the
interest and mortality factors specified in paragraph (b) below

	 	(a)	 	Plan Factors: Pre-Retirement: 6% interest and the 1971 Group Annuity Table (Male) with
a two year setback for Participants and with a four year setback for Beneficiaries:
Post-retirement: 6% interest and the 1971 Group Annuity Table (Male) with a two year
setback for Participants and with a four year setback for Beneficiaries.
	 
	 	(b)	 	Code §417(e) Factors: For purposes of determining the amount of a lump sum
distribution, or for purposes of adjusting any benefit or limitation under Code Section
415(b)(2)(B), (C), or (D), Actuarial Equivalent shall be determined using a fixed blend of
50 percent of the male mortality rates and 50 percent of the female mortality rates, based
on the 1994 Group Annuity Mortality Basic, Graduated, No Margin Table projected to 2002
with Schedule AA, and the Section 417 interest rate. The Section 417 interest rate means
the annual rate of interest on 30 year Treasury securities in effect for the first calendar
month preceding the Plan Year during which the distribution occurs.
	 
	 	 	 	For any distribution with an Annuity Starting Date on or after December 31, 2002
and before the adoption date of this Section, if application of the amendment as of
the Annuity Starting Date would have caused a reduction in the amount of any
distribution, such reduction is not reflected in any payments made before the
adoption date of this Section. However, the amount of any such reduction that is
required under Code Section 415(b)(2)(B) must be reflected actuarially over any
remaining payments to the Participant. If the time specified herein for determining
the applicable interest rate is changed, including an indirect change as a result
of a change in the Plan Year, the interest rate used with respect to distributions
made within one year of either the adoption date or the effective date of the
amendment will be determined under Temporary Regulation § 1.417(e)-IT(d)(10)(ii) to
insure the amendment does not violate Code §411(d)(6).

1.3 ADMINISTRATOR

The term Administrator means the Employer unless another Administrator is appointed by the
Employer pursuant to Section 7.1 of the Plan.

1.4 ADOPTING EMPLOYER

The term Adopting Employer means any business which adopts this Plan with the consent of
the Employer. An Employee’s transfer to or from any Employer or Adopting Employer will not
affect his or her Accrued Benefit, Years of Service and Years of Plan Participation. If the
Adopting Employer is not an Affiliated Employer, the Employees of the Adopting Employer
will be treated separately for purposes of allocating contributions and Forfeitures and for
testing under Code §401(a)(4), §401(k), §401(m), §410 and, if the Employer and Adopting
Employer do not share Employees, §416. An Adopting Employer may terminate participation by
delivering written notice to the Trustee. If Plan assets which have been allocated to the

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Employees of the terminating Adopting Employer are not transferred within a reasonable time
to a successor Trustee, they will be distributed to the Employees of the terminating
Adopting Employer as if the Plan had been terminated under Section 10.4.

1.5 AFFILIATED EMPLOYER

The term Affiliated Employer means any of the following of which the Employer is a part:
(1) a controlled group of corporations as defined in Code §414(b); (2) a trade or business
(whether or not incorporated) under common control under Code §414(c); (3) any organization
(whether or not incorporated) which is a member of an affiliated service group under Code
§414(m); and (4) any other entity required to be aggregated under Code §414(o). The term
“Employer” shall include any Affiliate that adopts the Plan with the consent of Colt’s
Manufacturing Company, Inc. but service prior to the date the Affiliate became affiliated
with Colt’s Manufacturing Company, Inc. shall not be counted.

1.6 AGE

The term Age means actual attained age unless otherwise specified.

1.7 ANNIVERSARY DATE

The term Anniversary Date means December 31st.

1.8 ANNUITY STARTING DATE

The term Annuity Starting Date means the first day of the first period for which an amount
is paid as an annuity, or, in the case of a benefit not payable as an annuity, the first
day all events have occurred which entitle the Participant to such benefit. The first day
of the first period for which a benefit is to be received by reason of Disability will be
treated as the Annuity Starting Date only if such benefit is not an auxiliary benefit.

1.9 BENEFICIARY

The term Beneficiary means the person, trust or estate designated by the Participant to
receive the Plan benefits payable upon the Participant’s death. Subject to the provisions
of Section 5.8 regarding the rights of a Participant’s spouse, each Participant may
designate a Beneficiary on a form supplied by the Administrator, and may change or revoke
that designation by filing written notice with the Administrator. In the absence of a
designation, the Participant will be deemed to have designated his or her estate as
Beneficiary.

1.10 CREDITED SERVICE

The term Credited Service means that portion of a Period of Service between Employment
Commencement Date or re-employment Commencement Date and ending upon a Severance from
Service Date. Fractions of a Year of Service shall be aggregated on a daily basis where 365
days equals one year, and any portion of a month shall be considered a full month. Periods
of Service which are not successive shall be aggregated. Credit will be given for all
Periods of Service including periods of less than one year.

With respect to any employment period, a Participant’s Credited Service shall include
employment with the Employer corresponding with Service allowed.

With respect to any reemployed Employee who received a lump sum payment upon his prior
Termination of Employment which was equal to the Value of his vested accrued retirement
income at that time, Periods of Service related to such accrued retirement income shall not
be counted as Credited Service unless the prior distribution is repaid in the manner
described in Section 2.5 of this Plan.

Credited Service shall include periods of Service with Colt Industries, Inc. — Firearms
Division.

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A Participant’s Credited Service shall be counted in whole years and full months.

1.11 COMPENSATION

The term Compensation means wages within the meaning of Code §3401(a) and all other
payments of compensation that are actually paid or made available in gross income during
the Plan Year to an Employee by the Employer (in the course of the Employer’s trade or
business) for which the Employer is required to furnish the Employee a written statement
(Form W-2) under Code §6041(d), §6051(a)(3) and §6052.

Compensation must be determined without regard to any rules under Code §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 §340 1(a)(2).
Compensation will also include amounts not currently includible in gross income by reason
of Code § 125, §402(e)(3), §402(h), or §403(b). However, Compensation will not include a
Participant’s bonuses, overtime, and any other extra compensation plus income reported as
tips on Form W-2. Compensation for Plan purposes will not exceed $160,000, as adjusted for
the cost of living under Code §401(a)(17). A cost of living adjustment in effect for a
calendar year applies to any period not exceeding 12 months over which Compensation is
determined (determination period) beginning in such calendar year. If a determination
period is less than 12 months, the adjusted $160,000 limitation will be multiplied by a
fraction, the numerator of which is the number of months in the determination period, and
the denominator of which is 12.

Effective January 1, 2001, Compensation paid or made available during a Limitation Year
shall include elective amounts that are not includable in gross income of the employee by
reason of Code Section 132f(4).

The annual Compensation of each Participant taken into account in determining benefit
accruals in any Plan Year beginning after December 31, 2001, shall not exceed $200,000.
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). For purposes of determining benefit accruals in a Plan Year
beginning after December 31, 2001, Compensation for any prior determination period shall be
limited to the applicable dollar limitation then in effect for such determination period
pursuant to the provisions of Code Section 401(a)(17)(A).

Cost-of-living adjustment. The $200,000 limit on annual Compensation described in this
Section 1.11 shall be adjusted for cost-of-living increases in accordance with Code Section
401(a)(17)(B). 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.

1.12 DETERMINATION DATE

Determination date means (a) the date an Employee ceases to accrue Benefit Service, (b) the
Participant’s Early, Normal or Late Retirement Date, or (c) an earlier date on which the
amount of a Participant’s Accrued Benefit needs to be determined.

1.13 DISABILITY

For the purposes of the Plan, a Participant is permanently and totally disabled when he
suffers a condition of bodily injury or disease which renders him wholly unable to engage
in any occupation or employment for wage or profit and which is expected to be permanent
and continuous during the remainder of his life, exclusive of a condition resulting from
military service where a government pension is payable.

A condition which is the result of habitual drunkenness or addiction to narcotics, engaging
in a criminal enterprise, or intentionally self-inflicted injury is not considered a
disability within this definition.

In determining whether or not a Participant is or continues to be disabled, the Employer
may require the Participant to furnish such medical evidence or other relevant data as the
Employer deems necessary or

-4-

 

desirable. Failure of a Participant to furnish such evidence or data when requested shall be
sufficient reason for the Employer to determine that the Participant is not or is no longer
disabled.

A Participant will not cease to be deemed disabled solely because he engages in gainful
employment for purposes of rehabilitation as approved by the Employer.

1.14 DISABILITY RETIREMENT

The term Disability Retirement means termination of employment prior to age 65 after
completing 10 or more Years of Service.

1.15 EARLY RETIREMENT AGE

The term Early Retirement Age means the first day of any month coinciding with or following
the date a Participant reaches Age 55 and completes at least 10 Years of Service; provided
the sums of the Participant’s age and Years of Service completed age is 70 or greater.
Years of Service under the Predecessor Plan and this Plan shall be aggregated for
determination of Early Retirement Age.

1.16 EMPLOYEE

The term Employee means (1) any person employed by the Employer as an employee; (2) except
for purposes of determining eligibility to participate in this Plan, any employee of an
Affiliated Employer; and (3) any Leased Employee who is not covered by a plan described in
Code §414(n)(5) provided Leased Employees constitute more than 20% of the Employer’s
non-highly compensated workforce.

1.17 EMPLOYMENT COMMENCEMENT DATE

The term Employment Commencement Date means the date on which an Employee first renders an
Hour of Service for the Employer or any Affiliated Employer. In the case of an Employee who
has incurred Severance from Service Date, his/her “Reemployment Commencement Date” means
the date on which such Employee first renders an Hour of Service following such Severance
from Service Date.

1.18 EMPLOYER

The term Employer means Colt Defense LLC (or any successor thereto that sponsors this Plan)
and any Adopting Employer.

1.19 FIDUCIARY

The term Fiduciary means any individual or entity which exercises any discretionary
authority or control over the management of the Plan or over the disposition of the assets
of the Plan; renders investment advice for a fee or other compensation (direct or
indirect); or has any discretionary authority or responsibility over Plan administration.

1.20 FISCAL YEAR

The term Fiscal Year means the Employer’s accounting year beginning January 1st and ending
the following December 31st.

1.21 HIGHLY COMPENSATED EMPLOYEE

The term Highly Compensated Employee means, for Plan Years beginning after December 31,
1996, any Employee (1) who during the Plan Year or the look-back year was a 5% owner as
defined in Code §416(1)(1); or (2) who for the look-back year had Section 415 Compensation
in excess of $80,000 as adjusted under Code §415(d) (except that the base year will be the
calendar quarter ending September 30,

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1996). The look-back year will be the 12 month period immediately preceding the Plan Year
for which the determination is being made. The determination of who is a highly compensated
former Employee is based on the rules for determining HCE status as in effect for the Plan
Year or the look-back year for which the determination is being made, in accordance with
temporary regulation § 1.414(q)-IT, A-4 and Notice 97-45. In determining if an Employee is
an HCE for Plan Years beginning in 1997, amendments to Code §414(q) are treated as being in
effect for Plan Years beginning in 1996.

1.22 HOUR OF SERVICE

The term Hours of Service means:

	 	(a)	 	Each hour for which an Employee is paid, or entitled to payment, for the performance of
duties for the Employer or an Affiliated Employer. These hours will be credited for the
computation period in which the duties are performed.
	 
	 	 	 	No hours of service shall be recognized for any payments made due to severance of
employment or in compliance with workmen’s compensation, unemployment compensation
or disability insurance laws, nor shall any hours be recognized for payment made
solely to reimburse an employee for medical related expenses: provided, however,
that service shall be recognized on any approved leave of absence, not to exceed
one year.
	 
	 	(b)	 	Any additional hours as normally would have been credited to the Employee had he worked
on a non-overtime basis during the following periods:

	 	(1)	 	temporary layoff
	 
	 	(2)	 	leave of absence of up to two years, as authorized by the Employer pursuant to
the Employer’s established leave policy, and
	 
	 	(3)	 	military leave while the Employee’s reemployment rights are protected by law,
provided that any such periods qualify as Service in accordance with the terms of
the Service definition.

	 	(c)	 	Each hour for which an Employee is paid, or entitled to payment, by the Employer or an
Affiliated Employer on account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to vacation,
holiday, illness, incapacity (including disability, pregnancy and other similar condition
which prevents an Employee from performing duties), layoff, jury duty, military duty or
leave of absence. No more than 501 hours will be credited under this Section for any single
continuous period (whether or not such period occurs in a single computation period). Hours
under this paragraph will be calculated and credited pursuant to Section 2530.200b-2 of the
Department of Labor Regulations which are incorporated herein by this reference. If the
payment for a period in which no duties are performed is calculated on the basis of a unit
of time, the number of hours of service counted for such period shall be the number of
hours regularly scheduled for performance of duties during such period.
	 
	 	 	 	If the payment for a period in which no duties are performed is not calculated on
the basis of a unit of time, the number of hours counted for such period shall be
determined by dividing the total of such payments by the employee’s most recent
hourly rate of compensation as determined under the provisions of Department of
Labor Regulation Section 2530.200b-2(b)(2)(ii), but shall not exceed the number of
hours scheduled for performance of duties during such period.
	 
	 	 	 	For the purposes of the above two paragraphs, an employee who does not have a
regular work schedule shall be treated as if he or she were regularly scheduled to
work 8 hours per day, not to exceed 40 hours per week.

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	 	 	 	No hours of service shall be recognized for any payments made due to severance of
employment or in compliance with workmen’s compensation, unemployment compensation
or disability insurance laws, nor shall any hours be recognized for payment made
solely to reimburse an employee for medical or medically related expenses:
provided, however, that service shall be recognized on any approved leave of
absence, not to exceed one year.

	 	(d)	 	Each hour for which back pay, irrespective of mitigation of damages, is either awarded
or agreed to by the Employer or an Affiliated Employer; in the case of any Leave of
Absence, non-paid leave for Military Service or for Maternity or Paternity Leave as
required under Section 1.10, an Employee will receive credit for each hour during such
absence for which he would have been compensated if he had continued to work his regular
scheduled number of hours per day. The hours of service credited under this Section shall
not exceed 501 hours of maternity or paternity leave.

The same hours will not be credited both under section (a) or section (b) above and under
section (c). These hours will be credited for the computation period or periods to which
the award or agreement pertains rather than the computation period in which the award,
agreement or payment is made. In determining whether a Period of Severance for
participation and vesting has occurred in a computation period, an individual on Maternity
or Paternity Leave will receive credit for up to 501 hours which would otherwise have been
credited to such individual but for such absence. Hours credited for Maternity or Paternity
Leave will be credited in the computation period in which the absence begins if necessary
to prevent a Period of Severance in that period, or in all other cases, in the following
computation period.

1.23 LEASED EMPLOYEE

The term Leased Employee means any person within the meaning of Code §414(n)2 and Code
§414(o) who is not an Employee of the Employer and who provides services to the Employer if
(i) such services are provided pursuant to an agreement between the Employer and a leasing
organization; (2) such person has performed services for the Employer or for the Employer
and related persons as determined in accordance with Code §414(n)(6) on a substantially
full time basis for a period of at least one year; and (3) such services are performed
under the primary direction and control of the Employer. Contributions or benefits provided
to a Leased Employee by the leasing organization which are attributable to services
performed for the Employer will be treated as provided by Employer.

1.24 LIMITATION YEAR

The term Limitation Year means the Plan Year.

1.25 MATERNITY OR PATERNITY LEAVE

The term Maternity or Paternity Leave means an Employee is absent from work because of the
Employee’s pregnancy; the birth of the Employee’s child; the placement of a child with the
Employee in connection with the adoption of such child by the Employee; or the need to care
for such child for a period beginning immediately following the child’s birth or placement.

1.26 NORMAL FORM OF RETIREMENT BENEFIT

The term Normal Form of Retirement Benefit means a monthly annuity payable for the life of
the Participant.

1.27 NORMAL RETIREMENT AGE

The terms Normal Retirement Age means the date a Participant reaches Age 65.

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1.28 NORMAL RETIREMENT DATE

The term Normal Retirement Date means the first day of the month coinciding with or next
following Normal Retirement Age.

1.29 PERIOD OF SERVICE

Period of Service means the period of time between the Employee’s Employment Commencement
Date (and Reemployment Commencement Date, if applicable) and his/her Severance from Service
Date. Periods of Service before and after a Period of Severance shall be aggregated.

If an employee performs one hour of service within 12 months after he quits, is discharged
or retires, the period of severance is to be treated as a period of service; except that if
the employee quits, is discharged or retires, while absent from service for any other
reason, the period of severance is to be treated as a period of service only if an hour of
service is performed within 12 months after the first date of absence.

1.30 PERIOD OF SEVERANCE

The term Period of Severance means the period of time between the Employee’s Severance from
Service Date and his/her Reemployment Commencement Date. In the case of an Employee who is
absent from work for maternity or paternity reasons, the 12-consecutive month period
beginning on such Severance from Service Date shall not constitute a Period of Severance.

1.31 PARTICIPANT

The term Participant means any Employee who has met the eligibility and participation
requirements of the Plan.

1.32 PLAN

The term Plan means this defined benefit plan and trust agreement, which is named the Colt
Defense LLC Salaried Retirement Income Plan

1.33 PREVIOUS EMPLOYER

The term Previous Employer means Colt’s Industries, Inc. Firearms Division.

1.34 PRIOR PLAN

The term Prior Plan means the Colt’s Manufacturing Company, Inc. Salaried Retirement Income
Plan.

1.35 QUALIFIED JOINT AND SURVIVOR ANNUITY

The term Qualified Joint and Survivor Annuity means an immediate annuity payable for the
life of the Participant with a survivor benefit payable for the life of the Participant’s
spouse which is 50% of the annuity payable during the joint lives of the Participant and
the Participant’s spouse; (b) the Actuarial Equivalent of the Participant’s Normal
Retirement Benefit; and (c) at least as valuable as the Actuarial Equivalent of any other
optional form of benefit payable under Article 5 of the Plan).

1.36 QUALIFIED PRE-RETIREMENT SURVIVOR ANNUITY

The term Qualified Pre-Retirement Survivor Annuity means a survivor annuity for the life of
a deceased Participant’s surviving spouse which is equal to (a) the same benefit that would
be payable if the Participant had retired with an immediate Qualified Joint and Survivor
Annuity the
day before the Participial died, or (b) if the Participant dies before the Earliest
Retirement Age, the same benefit that would be payable if

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

1.37 REQUIRED BEGINNING DATE

The term Required Beginning Date means for a Participant who is not a 5% owner, April 1st
of the calendar year following the later of the calendar year in which he or she reaches
Age 701/2 or the calendar year in which he or she actually retires; and for a Participant who
is a 5% owner, April 1st of the calendar year following the calendar year in which he or
she reaches Age 701/2.

	 	(a)	 	Definition Of 5% Owner: A Participant will be treated as a 5% owner hereunder if such
Participant is a 5% owner as defined in Code §416 at any time during the Plan Year ending
with or within the calendar year in which such owner reaches Age 701/2. Once distributions
have begun to a 5% owner under this Section, they must continue even if the Participant
ceases to be a 5% owner in a subsequent year.
	 
	 	(b)	 	Pre-Retirement Age 701/2 Distributions: The pre retirement Age 701/2 distribution option is
only eliminated with respect to Employees who reach Age 701/2 in or after a calendar year
that begins after the later of December 31, 1998, or the adoption date of this amended
Plan. The pre-retirement Age 701/2 distribution option is an optional form of benefit under
which benefits payable in a particular distribution form (including any modifications
elected after benefit commencement) commence at a time during the period that begins on or
after January 1st of the calendar year in which an Employee attains age 701/2 and ends April
1st of the immediately following calendar year.

1.38 415 COMPENSATION

The term Section 415 Compensation means a Participant’s wages, salaries, fees for
professional services and other amounts received for personal services actually rendered in
the course of employment with the Employer maintaining the plan (including, but not limited
to, commissions paid salesmen, compensation for services based on a percentage of profits,
commissions on insurance premiums, tips and bonuses). However, Section 415 Compensation
does not include (a) Employer contributions to a deferred compensation plan which are not
includible in the Employee’s gross income for the taxable year in which contributed, or
Employer contributions under a simplified employee pension plan to the extent they are
deductible by the Employee, or any distributions from a plan of deferred compensation; (b)
amounts realized from a non-qualified stock option, or when restricted stock (or property)
held by the Employee either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture; (c) amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock option; and (d) other amounts which
receive special tax benefits, or contributions made by an Employer (whether or not under a
salary reduction agreement) towards the purchase of an annuity described in Code §403(b)
(whether or not the amounts are excludable from Employee’s gross income). For Limitation
Years beginning after December 31, 1997, Section 415 Compensation will include any elective
deferrals as defined in Code §402(g)(3), and any amounts deferred at the election of the
Participant which are not includible in gross income by reason of Code §125 or §457.

1.39 SEVERENCE FROM SERVICE DATE

Severance from Service Date means the day on which the earliest of (a), (b), (c) or (d)
occurs where:

	 	(a)	 	is the date the Employee quits, is discharged, retires, or dies;
	 
	 	(b)	 	is the first anniversary of the date when the Employee is first absent from employment
because of leave of absence authorized by the Employer, provided the Employee fails to
return to work by the second anniversary of such date;

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	 	(c)	 	is the second anniversary of the date on which the Employee is first absent from
employment for any of the following maternity or paternity reasons; (1) the pregnancy of
the Employee, (2) the birth of a child of the Employee, (3) the placement of a child with
the Employee in connection with the adoption of such child by such Employee, or (4) caring
for such child for a period beginning immediately following such birth or placement;
	 
	 	(d)	 	is the first anniversary of the date the Employee is absent from employment for any
other reason (e.g., sickness, vacation, layoff).

1.40 SOCIAL SECURITY RETIREMENT AGE

The term Social Security Retirement Age means Age 65 if the Participant reaches Age 62
before January 1, 2000 (i.e., was born before January 1, 1938); Age 66 if the Participant
reaches Age 62 after December 31, 1999, but before January 1, 2017 (i.e., was born after
December 31, 1937, but before January 1, 1955); and Age 67 if the Participant reaches Age
62 after December 31, 2016 (i.e., was born after December 31, 1954).

1.41 TERMINATION OF EMPLOYMENT

The term Termination of Employment means that a Participant has ceased to be an Employee
for reasons other than retirement, death, or Disability.

1.42 TERMINATED PARTICIPANT

The term Terminated Participant means a Participant who has ceased to be an Employee by for
reasons other than retirement, death or Disability.

1.43 TRUSTEE

The term Trustee means the persons or entity named as trustee or trustees in this Plan and
any successor to such Trustee or Trustees.

1.44 TRUST FUND

The term Trust Fund or Trust means the assets of the Plan.

1.45 VALUATION DATE

The term Valuation Date means the date on which the Trustee determines the value of the
Trust Fund, which must occur annually on the first day of each Plan Year. The Administrator
may also value the Trust Fund on such other dates deemed necessary by the Administrator in
a manner that does not discriminate in favor of Highly Compensated Employees.

1.46 VESTED AGGREGATE ACCRUED BENEFIT

The term Vested Aggregate Accrued Benefit means a Participant’s Vested Interest in the
aggregate value of his or her Accrued Benefit derived from Employer contributions and in
any account or Accrued Benefit derived from the Participant’s contributions (including
rollovers).

1.47 VESTED INTEREST

The term Vested Interest means a Participant’s nonforfeitable percentage in the Accrued
Benefit derived from employer contributions and in any account or Accrued Benefit
attributable to the Participant’s own plan contributions. A Participant’s Vested Interest
in the Accrued Benefit derived from Employer contributions will be determined in accordance
with Section 4.7.

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1.48 YEAR OF SERVICE

The term Year of Service means Service as defined in Section 1.29. In no event shall an
Employee be credited with more than one year of Service in any Plan Year. Years of Service
with an Affiliated Employer shall be credited for purposes of Article 2.1 and Section 4.7.

1.49 YEARS OF PARTICIPATION SERVICE

The term Years of Participation Service means:

	 	(a)	 	If an Employee did not satisfy (a), one thousand (1,000) hours of Service during any
twelve (12) month Plan Year following the Employee’s Employment Commencement Date.
	 
	 	(b)	 	Year of Service with other members of a controlled group or an affiliated service group
included with the Employer shall be considered only for purpose of this Section 2.1 and
Section 4.8.
	 
	 	(c)	 	An Employee who does not complete 500 Hours of Service during a Plan Year shall have
incurred a Period of Severance for purposes of eligibility. In determining Hours of
Service, an Employee shall receive credit for Hours of Service under Section 1.22.

1.50 YEARS OF VESTING SERVICE

The term Years of Vesting Service means a Period of Service between an Employee’s
Employment Commencement Date or re-employment Commencement Date and ending upon a Severance
from Service Date. Fractions of a Year of Service shall be aggregated on a daily basis
where 365 days equals one year, and any portion of a month shall be considered a full
month. Periods of Service which are not successive shall be aggregated. Credit will be
given for all Periods of Service including periods of less than one year.

For purposes of vesting, if an employee performs one hour of service within 12 months after
he quits, is discharged or retires, the Period of Severance is to be treated as a Period of
Service; except that if the employee quits, is discharged or retires while absent from
service for any other reason, the Period of Severance is to be treated as a Period of
Service only if an hour of service is performed within 12 months after the first date of
absence.

An Employee’s Service for vesting purposes shall be determined in accordance with the
following rules:

	 	(a)	 	If an Employee becomes reemployed by the Employer within the consecutive 12-month
period following the date he quit, was discharged, or retired, the period of time during
which he was not employed shall count as Service.
	 
	 	(b)	 	If an Employee returns to work within 24 months after a leave of absence authorized by
the Employer commenced, the period of time during which he was not at work shall count as
Service.
	 
	 	(c)	 	If an Employee fails to perform an Hour of Service within the consecutive 12-month
period beginning on his Severance from Service Date, such date shall be considered his
“period of severance date,” and unless the Employee becomes subsequently reemployed by the
Employer, no further Service shall be allowed him.
	 
	 	(d)	 	If an Employee incurs a “period of severance” date and such Employee is later
reemployed by the Employer, the following special rules shall apply:
	 
	 	 	 	Service prior to his most recent Severance from Service date shall be counted along
with any Service earned after the Employee’s reemployment date, if:

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	 	(1)	 	he was entitled to any vested retirement income attributable to Employer
contributions in accordance with Section 4.8 prior to his most recent Severance
from Service date, or
	 
	 	(2)	 	he was not entitled to any vested retirement income attributable to Employer
contributions and the length of his latest consecutive period of severance did not
equal or exceed the greater of:

	 	(i)	 	the Employee’s aggregate number of years of prebreak Service; or
	 
	 	(ii)	 	5 years

	 	 	 	If a reemployed Employee fails to meet any of the tests described in (1)
or (2) above, any Service earned prior to his most recent Severance from
Service Date shall be disregarded.

	 	(e)	 	For the purposes of determining the Employee’s total Years of Service, he shall be
credited with a number of years equal to the number of whole Years of Service, whether or
not such periods were completed consecutively. Non-consecutive Years of Service shall be
aggregated. For purposes of such aggregation, fractional Years of Service shall be
determined to the next highest month.
	 
	 	(f)	 	Anything herein to the contrary notwithstanding, absences from employment on account of
military leave shall be counted as Service while the Employee’s reemployment rights are
protected by law, provided the Employee returns to work within 90 days after he becomes
eligible for release from active duty.
	 
	 	(g)	 	Service, but not Credited Service, shall be credited to an Employee for purposes of
determining his eligibility and vesting status, for periods of employment with other
members of an affiliated service group (under Code Section 414(m), a controlled group of
corporations (wider Code Section 414(b)), or a group of trades or businesses under common
control (under Code Section 414(c)), of which his Employer is a member.
	 
	 	(h)	 	Employment with Colt Industries, Inc. Firearms Division shall be counted as Service for
eligibility and vesting purposes.

Service for an Affiliate while such member is an Affiliate shall be considered to be
service for the Employer for purposes of determining the eligibility of employees of
adopting Employers and for purposes of vesting, but not for purposes of benefit accrual,
provided that no employee of an Affiliate that has not adopted the Plan shall be eligible
to become a Participant.

The benefit computation period and vesting computation period shall be the 12 consecutive
month period commencing with the date the Participant first performed an hour of service
for the Employer and anniversaries thereof. Hours of Service shall be credited to the
computation period determined according to the provisions of paragraph (c) of Department of
Labor Regulation Section 2530.200b-2.

ARTICLE 2

PLAN PARTICIPATION

2.1 ELIGIBILITY REQUIREMENTS

An Employee who was a participant in the Prior Plan shall become a Participant in this Plan
on the day he first performs an Hour of Service for the Employer. Any other Employee will
be eligible to become a Participant in accordance with the following:

	 	(a)	 	Age And Service Requirements: An Employee who is not a member of on Eligible class of
Employees will be eligible to enter the Plan as a Participant upon reaching Age 21 and
completing 1 Year of Participant Service.

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	 	(b)	 	Eligible Class Of Employees: All Employees who are not members of the collective
bargaining unit are eligible to participate in the Plan.
	 
	 	(c)	 	Participation By Ineligible Employees: If an Employee who is not a member of the
eligible class of Employees becomes a member of the eligible class, such Employee will
participate in [hte Plan immediately if he or she has satisfied the minimum age and service
requirements and would have previously become a Participant had he or she been a member of
the eligible class. The participation of a Participant who becomes a member of an
ineligible class will be suspended, and such Participant will be entitled to accrue a
benefit for the Plan Year only to the extent of Hours of Service completed while a member
of the eligible class of Employees. Upon returning to an eligible class of Employees, a
suspended Participant will immediately participate again in the Plan.
The Vested Interest of a Participant who ceases to be a member of an eligible class
will continue to increase in accordance with Section 4.7.
	 
	 	(d)	 	Participation By Former Participants: A former Participant who is re-employed and will
again become a Participant on the date he/she again performed an Hour of Service upon
returning to the employ of the Employer as a member of the Eligible Class of Employees.

2.2 ENTRY DATE

An Employee who has satisfied the eligibility requirements in Section 2.1 will enter (the
Plan on the first day of the month coincident with or next following the day he or she
satisfies such requirements of Section 2.1(a).

2.3 ELIGIBILITY OF PARTICIPANT FOLLOWING A PERIOD OF SEVERANCE

A Participant who incurs a Period of Severance shall again become a Participant
retroactively to the date he/she again performed an Hour of Service upon returning to the
employ of the Employer as a member of the Eligible Class of Employees.

2.4 TRANSFERS

Transfers means (a) any employee who was not previously in an Eligible Class of Employees
shall be eligible to become a Participant in the Plan on the first day of the month
coincident with or next following his transfer to an Eligible Class of Employees status or
(b) any employee who is a Participant of the Plan and who transfers to an employment status
other than employee, or the Company becomes obligated to contribute to another pension plan
or retirement plan on behalf of such Employee, (the Employee shall cease to earn Credited
Service under this Plan as of this date of transfer. For employees who transfer into this
Plan, Credited Service shall commence at the date of transfer into this Plan.

2.5 REPAYMENT OF PRIOR DISTRIBUTION UPON REEMPLOYMENT

Repayment of Prior Distribution Upon Retirement means if a Participant who is less than
100% vested received a lump sum payment equal to the Value of his vested accrued retirement
income at the time of his latest Period of Severance date, he may restore the Credited
Service he lost when he received the distribution by repaying the amount of the
distribution he received plus interest. The interest on such amount will be computed for
the number of full calendar months from the date of distribution to the date of repayment
at the rate of 5% compounded annually

Such repayment may be made at any time prior to the latest of the following dates:

	 	(a)	 	The fifth anniversary of the Participant’s reemployment date.
	 
	 	(b)	 	The end of a period of five consecutive one-year Periods of Severance following the
date the Participant received the distribution.

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	 	(c)	 	The Participant’s Retirement Date.

ARTICLE 3

CONTRIBUTIONS AND ALLOCATIONS

3.1 EMPLOYER CONTRIBUTIONS

The Employer will pay contributions for a particular Plan Year in such amounts as are
actuarially required to fund Plan benefits and at such times as the Employer may decide.
The valuation for actuarially determining such amounts will be based on the method of
funding, actuarial assumptions as deemed reasonable by an enrolled actuary and, if
applicable, the period of amortization of any unfunded actuarial liability, and such
valuation will reflect the adjustment for experience realized from the investment of the
Trust Fund, mortality, turnover, forfeitures, and any dividends resulting from insurance,
if applicable. The Employer does not guarantee either the making of the contributions or
the payment of the benefits under the Plan. The Employer reserves the right to reduce,
suspend or discontinue contributions for any reason at any time, provided, however, that if
the Plan is deemed to be terminated as a result of such reduction, suspension or
discontinuance, the provisions of Article 9 will become effective.

3.2 REFUND OF CONTRIBUTIONS

If the Plan fails to initially satisfy the requirements of Code §401(a) and the Employer
declines to amend the Plan to satisfy such requirements, contributions made prior to the
date qualification is denied must be returned to the Employer within 1 year of the date of
denial, but only if the application for qualification is made by the time prescribed by law
for filing the Employer’s tax return for the taxable year in which the Plan is adopted, or
by such later date as the Secretary of the Treasury may prescribe. If a contribution is
attributable in whole or in part to a good faith mistake of fact, including a good faith
mistake in determining deductibility under Code §404, an amount may be returned to the
Employer equal to the excess of the amount contributed over the amount which would have
been contributed had the mistake not occurred. Earnings attributable to an excess
contribution will not be returned, but losses attributable to the excess contribution will
reduce the amount so returned. Such amount will be returned to the Employer within 1 year
of the date the contribution was made or the deduction disallowed, as the case may be.

ARTICLE 4 PLAN

BENEFITS

4.1 ACCRUED BENEFIT

A Participant’s Accrued Benefit shall be monthly lifetime annuity as described in Section
5.1(b) commencing at Normal Retirement Date shall be the Participant’s Benefit Account
Balance as of his Normal Retirement Date, divided by a factor based upon the UP-1984
Mortality Table set forward one year and using an interest rate(s) used by the Pension
Benefit Guaranty Corporation for determining the value of retirement benefits in the event
of the termination of a trusteed single-employer plan as in effect at the beginning of the
Plan Year for which the computation is made.

A Participant’s Benefit Account Balance shall be equal to the sum of his annual Benefit
Credits and his annual Interest Credits, determined as follows:

	 	(a)	 	For each Plan Year beginning on or after March 23, 1990 in which a Participant accrues
Credited Service, a Participant’s annual Benefit Credit as of the last day of such Plan
Year is equal to the percentage of his Earnings for (that Plan Year determined by the
following schedule, based on the number of years of Credited Service the Participant has
accrued as of that date:

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	Years of Credited Service	 	Benefit Credit Percentage
	Less than 5 years:
	 	 	3.5	%
	5 but less than 10 years:
	 	 	4.25	%
	10 or more years:
	 	 	5	%

	 	 	 	In the event that a Participant’s Retirement Date is other than the last day of a
Plan Year, his Benefit Credit for the Plan Year shall be credited to his Benefit
Account Balance as of his Retirement Date.

	 	(b)	 	For each Plan Year beginning on or after March 23, 1990, Interest Credits shall be
accumulated on the Benefit Account Balance at a minimum annual rate equal to 6.5% credited
monthly, compounded annually.

Moreover, in no event will the total yearly amount of retirement income to be provided for
a reemployed Participant on account of all periods of employment be greater than the yearly
amount of retirement income which would have been provided for him if his prior cessation
of Service had not occurred.

4.2 BENEFIT UPON EARLY RETIREMENT

Upon reaching Early Retirement Age prior to Termination of Employment, a Participant may
retire and elect to receive at any time up to the Normal Retirement Date an amount equal to
his or her Accrued Benefit times the Factor in Appendix I based on attained age as years
and completed months.

4.3 VALUATION DATE

The term Valuation Date means the date on which the Trustee determines the value of the
Trust Fund, which must occur annually on the first day of each Plan Year. The Administrator
may also value the Trust Fund on such other dates deemed necessary by the Administrator in
a manner that does not discriminate in favor of Highly Compensated Employees.

4.4 BENEFIT UPON LATE RETIREMENT

If a Participant elects to work beyond Normal Retirement Age, the Accrued Benefit the
Participant is entitled to receive will be determined as of Normal Retirement Age and will
be recomputed on each annual anniversary thereof, in accordance with the following
provisions:

	 	(a)	 	Determination Of Benefit: A Participant’s Accrued Benefit upon late retirement will be
based upon the Participant’s completed Years of Credited Service as of each such point in
time. Late retirement benefits will be distributed under Section 5.1.
	 
	 	(b)	 	Reduction for Payments Before Late Retirement: For each Plan Year during which a
Participant is still an Employee following his Normal Retirement Date and receives
retirement income payments, the additional retirement income secured in accordance with the
preceding paragraph shall be reduced (but not below zero) by the actuarial equivalent of
total retirement income payments made under this Plan to such Participant by the end of the
applicable Plan Year.
	 
	 	(c)	 	Coordination With Other Provisions: Notwithstanding paragraph (a), if the Plan is Top
Heavy, the late retirement benefit will not be smaller than the minimum benefit the
Participant is entitled to receive under Section 4.7. In determining the amount of Accrued
Benefit a Participant is entitled to receive, the Actuarial Equivalent value of amounts
previously distributed or segregated will be taken into account.

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4.5 BENEFIT UPON DEATH

Other than a Qualified Preretirement Survivor Annuity as required under Section 5.2, there
will be no benefit payable upon the death of a Participant prior to the commencement of
benefits.

4.6 BENEFIT UPON DISABILITY

If a Participant who has attained age 55 and completed 15 Years of Service suffers a
Disability prior to Termination of Employment, such Participant may retire and receive his
or her Accrued Benefit. Disability benefits will be distributed under Section 5.3.
Alternatively, a Participant who suffers a Disability may elect to defer the commencement
of benefits and receive Interest Credits under Section 4.1 until his Normal Retirement Date
or an earlier election of an Early Retirement Benefit.

4.7 BENEFIT UPON TERMINATION

A Participant who incurs a Termination of Employment will be entitled to the Vested
Interest in the Actuarial Equivalent of his or her Accrued Benefit. Distribution of a
benefit to a Terminated Participant will be made under Section 5.4.

4.8 DETERMINATION OF VESTED INTEREST

A Participant’s Vested Interest in his or her Accrued Benefit will be determined in
accordance with the following provisions:

	 	(a)	 	100% Vesting Upon Retirement: A Participant will have a 100% Vested Interest in his
Accrued Benefit upon reaching Normal or Early Retirement Age prior to Termination of
Employment.
	 
	 	(b)	 	Vesting Prior To Retirement: Except as otherwise provided in paragraph (a) above, a
Participant’s Vested Interest in his Accrued Benefit at any given time, including
Termination of Employment prior to Normal or Early Retirement Age, will be determined in a
non-Top Heavy Plan Year by the vesting schedule immediately following this paragraph based
on the number of Years of Service the Participant has completed.

	 	 	 	 	 
	Years Of Service	 	Vested Interest
	1
	 	 	0	%
	2
	 	 	0	%
	3
	 	 	0	%
	4
	 	 	0	%
	5
	 	 	100	%

	 	(c)	 	Vesting In A Top Heavy Plan Year: Notwithstanding the vesting schedule in paragraph (b), the
Vested Interest of a Participant’s Accrued Benefit in a Top Heavy Plan Year will be determined by
the vesting schedule which immediately follows this paragraph. If this Plan ceases to be Top
Heavy and the vesting schedule in paragraph (b) becomes effective, a Participant’s Vested
Interest as determined under the vesting schedule in (this paragraph cannot be reduced.
Furthermore, any such reversion to the vesting schedule in paragraph (b) will be considered
an amendment to this
Section and will be treated in accordance with paragraph (d) of this Section pertaining to
such amendments.

	 	 	 	 	 
	Years Of Service	 	Vested Interest
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	80	%
	6
	 	 	100	%

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	 	(d)	 	Amendments To Vesting Schedule: No amendment may directly or indirectly reduce a
Participant’s Vested Interest. If the vesting schedule is amended, a Participant with at
least three Years of Service, by filing a written request with the Administrator 60 days
after the latest of (1) the amendment’s adoption date, (2) the amendment’s effective date,
or (3) the date the Participant receives written notice of the amendment, may elect to have
the Vested Interest in his or her Accrued Benefit computed by the vesting schedule in
effect prior to the amendment. A Participant who fails to make an election will have his or
her Vested Interest computed under the new schedule. However, notwithstanding the
foregoing, a Participant’s Vested Interest in his or her Accrued
Benefit will not be less than it was as of the later of January 1, 1997 or the date
this amended Plan is actually adopted by the Employer.

ARTICLE 5

DISTRIBUTION OF BENEFITS

5.1 BENEFIT UPON RETIREMENT

Unless a cash-out occurs pursuant to the provisions of Section 5.5, the benefit of a
Participant who retires on or after the Participant’s Normal or Early Retirement Age will
be distributed to the Participant in accordance with the following provisions:

	 	(a)	 	Standard Form Of Distribution: Unless waived in accordance with Section 5.11, a
Participant’s retirement benefit as determined under Section 4.1 will be distributed in the
form of a Qualified Joint and Survivor Annuity if the Participant is married on the Annuity
Starting Date and has not died before such date. If the Participant is unmarried on (the
Annuity Starting Date and has not died before such date, the Participant’s retirement
benefit will be distributed as the Normal Form of Retirement Benefit.
	 
	 	(b)	 	Optional Forms Of Distribution: If a Participant elects not to receive the form of
benefit described in paragraph (a) above, the Participant may elect to have his or her
retirement benefit distributed in one of the optional forms set forth in Section 5.11.
	 
	 	(c)	 	Time Of Distribution: Distribution will be made within a reasonable time after the
Participant’s actual retirement date, but no later than the Required Beginning Date.

5.2 BENEFIT UPON DEATH

Unless a cash-out occurs pursuant to Section 5.5, a deceased Participant’s death benefit
will be distributed in accordance with the following provisions:

	 	(a)	 	Form Of Distribution To Surviving Spouse: If a Participant is married to a surviving
spouse and dies before the Annuity Starting Date, the Participant’s surviving spouse will
receive a death benefit in the form of a Qualified Preretirement Survivor Annuity.

	 	(i)	 	If the Participant dies after attaining age fifty-five (55) and is
100% vested in his Accrued Benefits, the Surviving Spouse shall be
eligible to receive 50% of the Qualified Pre-retirement Survivor Annuity
as of the first day of the month coincident with or next following the
Participant’s date of death and may elect an immediate commencement of
such benefit.
	 
	 	(ii)	 	If the Participant dies before attaining age fifty-five (55) but
after becoming 100% vested in his Accrued Benefit, his surviving Spouse
shall be eligible to receive 50% Qualified Pre-retirement Survivor Annuity
as of the first
day of any month coincident with or following the date the participation
would have attained age fifty-five (55).

-17-

 

	 	(b)	 	Time Of Distribution To A Surviving Spouse: The surviving spouse may (1) elect to have
any death benefit to which he or she is entitled distributed within a reasonable time after
the death of the Participant; or (2) elect to defer distribution of the death benefit, but
distribution may not be deferred beyond December 31st of the calendar year in which the
deceased Participant would have attained Age 701/2.
	 
	 	(c)	 	Death Of Surviving Spouse Before Distribution Begins: If the surviving spouse dies
before distribution begins, then no distribution shall be made.
	 
	 	(d)	 	Death While Receiving Disability Benefits: If a Participant who is receiving a
Disability benefit dies prior to attaining age 55 and if the Participant has been married
continuously for the one year period ending on the date of death, then the Surviving Spouse
will be entitled to a Qualified Pre-Retirement Survivors Annuity.
	 
	 	(e)	 	Participants In Pay Status: If a Participant who has started receiving distribution of
his or her retirement benefit dies before the entire benefit has been distributed, the
balance of the benefit will be distributed to the Participant’s Beneficiary at least as
rapidly as under the method of distribution being used on the date of the Participant’s
death.
	 
	 	(f)	 	Optional Form of Benefit: If a Participant dies on or after attaining his Normal
Retirement Date but before his Late Retirement Date and an Optional Form of Benefit has
been elected, any benefits will be payable in accordance with that election.

5.3 DISABILITY BENEFITS

Unless a cash-out occurs pursuant to Section 5.5, a Participant’s Disability Benefit will
be distributed in accordance with the following provisions:

	 	(a)	 	Commencement: Disability Retirement Benefits shall commence with the calendar month
following the latest of (i) attainment of the date six months following the date the
Disability commenced, (ii) the cessation of the Participant’s disability benefits under any
group disability program maintained by Employer, and (iii) the date the Employer receives
such satisfactory evidence of the Disability.
	 
	 	(b)	 	Standard Form Of Distribution: Unless waived in accordance with Section 5.11, a
Participant’s Disability benefit as determined under Section 4.5 will be distributed in the
form of a Qualified Joint and Survivor Annuity if the Participant is married on the Annuity
Starting Dale and has not died before such date. If the Participant is unmarried on the
Annuity Starting Date and has not died before such date, the Participant’s retirement
benefit will be distributed as the Normal Form of Retirement Benefit.
	 
	 	(c)	 	Optional Forms Of Distribution: If a Participant elects not to receive the form of
benefit described in paragraph (a) above, the Participant may elect to have his or her
Disability benefit distributed in one of the optional forms set forth in Section 5.11.
	 
	 	(d)	 	Time Of Distribution: Distribution will be made hereunder within a reasonable time
after the disabled Participant retires, but no later (than the Required Beginning Date.
	 
	 	(e)	 	Medical Examination Requirement: The Employer may require any disabled Participant to
submit to a medical examination at any time during his Disability Retirement prior to age
65, but not more often than semi-annually. If on the basis of such medical examination it
is found that he is no longer disabled or if such disabled Participant engages in gainful
employment, except for purposes of rehabilitation as determined by the Employer, the
payment of a disability pension to such Participant will cease. In the event a disabled
Participant refuses to submit to medical 

-18-

 

	 	 	 	examination, his disability pension will be discontinued until he submits to
examination and the results of such examination confirm his disability.

	5.4	 	BENEFIT UPON TERMINATION
	 
	 	 	Unless a cash-out occurs pursuant to Section 5.5, the benefit to which a Terminated
Participant is entitled will be distributed as follows:

	 	(a)	 	Standard Form Of Distribution: Unless waived in accordance with Section 5.6, a Terminated
Participant’s benefit as determined under Section 4.6 will be distributed in the form of a
Qualified Joint and Survivor Annuity if the Participant is married on the Annuity Starting
Date and has not died before such date. If the Participant is unmarried on the Annuity
Starting Date and has not died before such date, the Participant’s retirement benefit will be
distributed as the Normal Form of Retirement Benefit.
	 
	 	(b)	 	Optional Forms Of Distribution: If a Participant elects not to receive the form of
benefit described in paragraph (a) above, the Participant may elect to have his or her
benefit distributed in one of the optional forms set forth in Section 5.11.
	 
	 	(c)	 	Time Of Distribution: Distribution will be made to a Terminated Participant within a
reasonable time after a Terminated Participant reaches Normal or Early Retirement Age, but
must begin no later than the Required Beginning Date.

	5.5	 	CASH-OUT OF BENEFITS
	 
	 	 	If the lump sum value of a Participant’s benefit does not exceed $5,000 (or $3,500 for
distributions made for Plan Years beginning on or before August 5, 1997), the Administrator
can distribute the benefit in a lump sum without the Participant’s consent as soon as
practicable after the Participant terminates employment with the Employer, but distribution
must occur no later than the date such benefit would otherwise be distributable under the
terms of the Plan. That portion of the Participant’s Accrued Benefit which is not a Vested
Interest will be forfeited. If a Participant’s Vested Interest in his Accrued Benefit is zero
on the date of distribution, the Participant will be deemed to have received a distribution
of such balance.
	 
	5.6	 	SPOUSAL CONSENT REQUIREMENTS
	 
	 	 	A married Participant’s election not to receive a Qualified Joint and Survivor Annuity (QJSA)
under Section 5.1 or a Qualified Preretirement Survivor Annuity (QPSA) under Section 5.2, or
an unmarried Participant’s election not to receive a life annuity under Section 5.1, must be
made in accordance with the following provisions:

	 	(a)	 	Election Not To Receive A QJSA: A married Participant’s election not to receive a
Qualified Joint and Survivor Annuity, or an unmarried Participant’s election not to receive a
life annuity, must be in writing and must be made during the 90-day period ending on the
Annuity Starting Date. Such election may be revoked in writing and a new election made at any
time and any number of times during the election period.
	 
	 	(b)	 	Election Not To Receive A QPSA: A married Participant’s election not to receive a
Qualified Preretirement Survivor Annuity must be in writing and must be made during an
election period beginning on the first day of the Plan Year in which the Participant reaches
Age 35 and ending on the date of his or her death. The election may be revoked in writing and
a new election made at any time and any number of times during the election period. A
Terminated Participant’s election period concerning his Vested Aggregate Accrued Benefit
before termination will not begin later than such date.

-19-

 

	 	(c)	 	Written Explanation Of QJSA Or QPSA: In connection with an election not to receive a
Qualified Joint and Survivor Annuity, the Administrator will, no less than 30 days and no
more than 90 days prior to the Annuity Starting Date, provide the Participant a written
explanation of the terms and conditions of the Qualified Joint and Survivor Annuity; the
Participant’s right to make (and the effect of) an election to waive the Qualified Joint and
Survivor Annuity; the rights of the Participant’s spouse; and the right of the Participant
to revoke such election (and the effect thereon).
In connection with an election not to receive a Qualified Preretirement Survivor
Annuity, the Administrator will provide each Participant within the Applicable Period
a written explanation of the Qualified Preretirement Survivor Annuity in such terms
and such manner as would be comparable to the written explanation applicable to a
Qualified Joint and Survivor Annuity.
	 
	 	(d)	 	Applicable Period: The Applicable Period for a Participant is whichever of the following
periods ends last: (1) the period beginning with the first day of the Plan Year in which the
Participant attains Age 32 and ending with the close of the Plan Year preceding the Plan Year
in which the participant attains Age 35; (2) a reasonable period after the individual becomes
a Participant; (3) a reasonable period ending after Code §401(a)(11) ceases to apply to the
Participant; or (4) a reasonable period ending alter Code §417(a)(5) ceases to apply with
respect to the Participant. For purposes of this paragraph, a reasonable period means the end
of the two year period beginning one year prior to the date the applicable event occurs, and
ending one year after that date.
	 
	 	(e)	 	Elections Must Have Spousal Consent: A Participant’s election not to receive a Qualified
Joint and Survivor Annuity or a Qualified Preretirement Survivor Annuity will not be
effective (1) unless the Participant’s spouse consents in writing to the election; (2) unless
the election designates a specific Beneficiary (or form of benefit) which may not be changed
without spousal consent (or the consent of the spouse expressly permits designations by the
Participant without any requirement of further spousal consent); and (3) unless the spouse’s
consent acknowledges the effect of the election and is witnessed by the Administrator or a
notary public.
	 
	 	(f)	 	Additional Requirements For Spousal Consent: Notwithstanding paragraph (e), a spouse’s
consent will not be required if there is no spouse or if the spouse cannot be located, or if
there are other circumstances (as set forth in the Code) which preclude the necessity of such
spouse’s consent. Consent by a Participant’s spouse (or establishment that consent cannot be
obtained) will be effective only with respect to such spouse. A consent that permits
designations by the Participant without any requirement of further consent by the spouse must
acknowledge that the spouse has the right to limit consent to a specific Beneficiary, and a
specific form of benefit where applicable, and that the spouse voluntarily elects to
relinquish either or both of such rights. A revocation of a prior election may be made by a
Participant without the spouse’s consent at any time before the commencement of benefits. No
consent obtained under paragraph (e) will be valid unless the Participant has received notice
as provided in paragraph (c).

	5.7	 	APPLICATION OF CODE SECTION 401(a)(9)
	 
	 	 	All distributions made under the terms of the Plan will be determined and made in accordance
with the regulations issued under Code §401(a)(9), including the minimum distribution
incidental benefit requirement of regulation 1.401(a)(9)-2, and any provisions in this Plan
which reflect Code §401(a)(9) will override any distribution options which are inconsistent
with such Code section and regulations.
	 
	5.8	 	STATUTORY COMMENCEMENT OF BENEFITS
	 
	 	 	Unless the Participant otherwise elects, distribution of a Participant’s benefit must begin
no later than the 60th day after the latest of the close of the Plan Year in which the
Participant (1) reaches the earlier of Age 65 or Normal Retirement Age; (2) reaches the 10th
anniversary of the year the Participant commenced Plan participation; or (3) terminates
service with the Employer. The failure of a Participant and the Participant’s spouse to
consent to a distribution while a benefit is immediately distributable within the meaning of
Section 5.6 will be deemed to be an election to defer payment of any benefit sufficient to
satisfy this Section.

-20-

 

	 	 	If this Plan provides for early retirement, a Participant who satisfied the service
requirement for early retirement prior to Termination of Employment will be entitled to
receive his or her Vested Aggregate Accrued Benefit upon satisfaction of the age requirement
for early retirement.
	 
	5.9	 	DISTRIBUTION IN EVENT OF LEGAL INCAPACITY
	 
	 	 	If any person entitled to benefits (the “Payee”) suffers from a Disability or is under a
legal incapacity, payments may be made in one or more of the following ways as directed by
the Administrator: (a) to the Payee directly; (b) to the guardian or legal representative of
the Payee’s person or estate; (c) to a relative of the Payee, to be expended for the Payee’s
benefit; or (d) to the custodian of the Payee under any Uniform Gifts to Minors Act. The
Administrator’s determination of minority or incapacity will be final.
	 
	5.10	 	DIRECT ROLLOVERS
	 
	 	 	A distributee may elect to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct rollover,
which is a payment by the Plan to the eligible retirement plan specified by the distributee.

	 	(a)	 	Eligible Rollover Distribution: An eligible rollover distribution is any distribution of
all or any portion of the balance to the credit of the distributee, except that an eligible
rollover distribution does not include (1) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or for 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 §401(a)(9); (3) the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation on Employer
securities).
	 
	 	(b)	 	Eligible Retirement Plan: An eligible retirement plan is an individual retirement account
described in Code §408(a), an individual retirement annuity described in Code §408(b), an
annuity plan described in Code §403(a), or a qualified trust described in Code §401(a), that
accepts the distributee’s eligible rollover distribution. However, in the case of an eligible
rollover distribution to the surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
	 
	 	(c)	 	Definition Of Distributee: For purposes of this Section, a distributee includes an
Employee or former Employee. In addition, an Employee’s or former Employee’s Surviving Spouse
and an Employee’s or former Employee’s spouse or former Spouse who is the alternate payee
under a qualified domestic relations order as defined in Code §414(p), are
distributees with regard to the interest of the Spouse or former Spouse.

	 	 	Solely with respect to distributions made after December 31, 2001, an eligible rollover
distribution shall also include Participant after-tax contributions, if any, and an eligible
retirement plan shall also mean an annuity contract described in Code Section 403(b) and an
eligible plan under Code Section 457(b) which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political subdivision of a state
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 relation order, as defined in Code Section 414(p).
	 
	5.11	 	OPTIONAL FORMS OF DISTRIBUTION
	 
	 	 	If a Participant elects not to receive the form of benefit distribution described in Section
5.1(a), Section 5.3(a) or Section 5.4(a), as applicable, the Participant may elect to have
his or her benefit distributed in one of the following forms:

-21-

 

	 	(a)	 	Life Annuity: As a monthly annuity payable for the life of the Participant.
	 
	 	(b)	 	Contingent Annuity: As a monthly annuity for the life of the Participant and thereafter
for the life of the Participant’s Beneficiary in which the monthly payments made to the
Beneficiary are 100% or reduced to 50% or 66-2/3% of the monthly payment the Participant was
receiving.
	 
	 	(c)	 	Ten Year Certain and Continuous Annuity: The Ten Year Certain and Continuous Annuity
benefit shall be calculated in accordance with the following formula: As a monthly annuity
payable until the later of the death of the Participant or until 120 monthly payments have
been made to the Participant or his or her Beneficiary.
	 
	 	(d)	 	Lump Sum Option: The amount of the cash settlement will be equal to the Participant’s
eligible Benefit Account Balance as of December 31, 1992 payable as of the Participant’s
Retirement Date.

	 	 	If a Participant who has elected this option dies on or after his Normal Retirement Date but
before his retirement income payment has been made, his Beneficiary will receive a cash
settlement, as well as an annuity, if the Participant’s Benefit Account Balance continued to
accrue after December 31, 1992, in lieu of all other benefits payable under the Plan. The
amount of such cash settlement will be equal to the amount the Participant would have received
in cash had his Retirement Date been the first day of the month next following the date he
died. The amount of annuity, if applicable, will be determined based on the form of payment
the Participant elected for benefits accrued after December 31, 1992. Payment of the Cash
Option shall be limited to the Benefit Account Balance as of December 31, 1992 for purposes of
applying Section 4.2, Section 4.8, and Section 4.5 of the Plan as well.
	 
	5.12	 	SUSPENSION OF BENEFITS
	 
	 	 	Normal or Early Retirement benefits will be suspended after earning 40 or more Hours of
Service during a month. The amount of benefits which are paid later than Normal Retirement Age
will be computed as if the Participant had been receiving benefits since Normal Retirement Age
unless the period of reemployment allows [he Participant to re-enter the Plan in accordance
with Section 2. In such case, the Accrued Benefit shall be recalculated upon subsequent
retirement. If a Participant receives a lump sum benefit in accordance with Section 5.5, Years
of Service before receipt of such lump sum shall be disregarded. Benefits will be only
suspended in accordance with [the following provisions:

	 	(a)	 	Notification: No payment will be withheld by the Plan under (this section unless the
Administrator notifies the Participant by personal delivery or first class mail during the
first calendar month or payroll period in which the Plan withholds payments that the
Participant’s benefits are suspended. Such notification will contain a description of the
specific reasons why payments are being suspended, a description of the Plan provision
relating to the suspension of payments, a copy of such provisions, and a statement that
applicable Department of Labor regulations may be found in §2530.203-3 of the Code of Federal
Regulations. In addition, the notice will inform the Participant of the Plan’s procedures for
affording a review of the suspension of benefits. Requests for such reviews may be considered
in accordance with the claims procedure adopted by the Plan pursuant to §503 of ERISA and
applicable regulations thereunder.
	 
	 	(b)	 	Amount Suspended: The amount suspended is (1) in the case of benefits payable periodically
on a monthly basis for as long as a life (or lives) continues, such as a straight life annuity
or a Qualified Joint and Survivor Annuity, an amount equal to the portion of a monthly benefit
payment derived firm Employer contributions; and (2) in the case of a benefit payable in any
other form, an amount of the Employer-provided portion of benefit payments for a calendar
month in which the Participant is employed in Code §203(a)(3)(B) service, equal to the lesser
of (A) the amount which would have been payable to the Participant if he had been receiving
monthly benefits under the Plan since actual retirement based on a straight life annuity
commencing at actual retirement age; or (B) the actual amount paid or scheduled to be paid to
the Participant for such month. Payments

-22-

 

	 	 	 	which are scheduled to be paid less frequently than monthly may be converted to
monthly payments for purposes of the above sentence.
	 
	 	(c)	 	Resumption Of Payment: If benefit payments are suspended, payments will resume no later
than the first day of the third calendar month after the calendar month in which the
Participant ceases to be employed in ERISA §203(a)(3)(B) service. The initial payment upon
resumption of payments will include the payment scheduled to occur in the calendar month when
payments resume and any amounts withheld during the period between the cessation of ERISA
§203(a)(3)(13) service and the resumption of payments.

ARTICLE 6

CODE §415 LIMITATIONS

	6.1	 	MAXIMUM ANNUAL BENEFIT

	 	(a)	 	This Section 6.1 shall he effective for “limitation years” ending after December 31,
2001. For purposes of Code Section 415, the “limitation year” shall be the Plan Year. No
Participant shall accrue a benefit hereunder in excess of the maximum benefit accrual
allowable pursuant to Code Section 415, which, except for the provisions contained in the
paragraphs of this Section 6.1, is hereby incorporated herein by reference.
	 
	 	(b)	 	Benefit increases resulting from the increase in the limitations of Code Section 415(b)
will be provided to all current Participants who are actively employed (with benefits limited
by Code Section 415(b)) who have an Accrued Benefit under the Plan immediately prior to the
effective date of this Section (other than an Accrued Benefit resulting from a benefit
increase solely as a result of the increases in limitations under Code Section 415(b)).
	 
	 	(c)	 	Definitions.

	 	(1)	 	Defined benefit dollar limitation. The defined benefit dollar limitation is
$160,000, as adjusted, effective January 1 of each year, under Code Section 415(d) in
such manner as the Secretary shall prescribe, and payable in the form of a straight
life annuity. A limitation as adjusted under Code Section 415(d) will apply to
“limitation years” ending with or within the calendar year for which the adjustment
applies.
	 
	 	(2)	 	Maximum permissible benefit. The maximum permissible benefit is the lesser of the
defined benefit dollar limitation or the defined benefit compensation limitation (both
adjusted where required, as provided in paragraph (i) and, if applicable, in
paragraphs (ii) or (iii) of this Amendment subsection 6.1(c).

	 	(i)	 	If the Participant has fewer than 10 years of participation in the Plan,
the defined benefit dollar limitation shall be multiplied by a fraction, (a)
the numerator of which is the number of years (or part thereof) of
participation in the Plan and (b) the denominator of which is 10. In the case
of a Participant who has fewer than 10 years of service with the employer, the
defined benefit compensation limitation shall be multiplied by a fraction, (a)
the numerator of which is the number of years (or part thereof) of service with
the employer and (b) the denominator of which is 10.
	 
	 	(ii)	 	If the benefit of a Participant begins prior to age 62, the defined
benefit dollar limitation applicable to the Participant at such earlier age is
an annual benefit payable in the form of a straight life annuity beginning at
the earlier age that is the actuarial equivalent of the defined benefit dollar
limitation applicable to the Participant at age 62 (adjusted under (i) above,
if required). The defined benefit dollar limitation applicable at an age prior
to age 62 is determined as the lesser

-23-

 

	 	 	 	of (a) the actuarial equivalent (at such age) of the defined benefit
dollar limitation computed using the interest rate and mortality table
(or other tabular factor) specified in the Plan and (b) the actuarial
equivalent (at such age) of the defined benefit dollar limitation
computed using a 5 percent interest rate and the applicable mortality
table as defined in the Plan. Any decrease in the defined benefit dollar
limitation determined in accordance with this paragraph (ii) shall not
reflect a mortality decrement if benefits are not forfeited upon the
death of the Participant. If any benefits are forfeited upon death, the
full mortality decrement is taken into account.
	 
	 	(iii)	 	If the benefit of a Participant begins after the Participant attains age
65, the defined benefit dollar limitation applicable to the Participant at the
later age is the annual benefit payable in the form of a straight life annuity
beginning at the later age that is actuarially equivalent to the defined benefit
dollar limitation applicable to the Participant at age 65 (adjusted under (1)
above, if required). The actuarial equivalent of the defined benefit dollar
limitation applicable at an age after age 65 is determined as (i) the lesser of
the actuarial equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other tabular factor)
specified in the Plan and (ii) the actuarial equivalent (at such age) of the
defined benefit dollar limitation computed using a 5 percent interest rate
assumption and the applicable mortality table as defined in the Plan. For these
purposes, mortality between age 65 and the age at which benefits commence shall
be ignored.

ARTICLE 7

ADMINISTRATION OF THE PLAN

	7.1	 	POWERS AND DUTIES OF THE ADMINISTRATOR

	 	 	In accordance with Section 3(16) and 402(a) of ERISA, the Employer or such persons as (the
Employer may designate in writing shall be “named fiduciary” of the Plan and in such capacity
shall have overall authority to control and manage the operation and administration of the
Plan including authority to appoint and remove the Plan Administrator and Trustee and to
adopt rules interpreting and implementing these instruments. Any Named Fiduciary may serve in
more than one fiduciary capacity with respect to the Plan.
	 
	 	 	The Named Fiduciary has the following authority:

	 	(a)	 	To appoint and remove (i) a Plan Administrator, with responsibility for reporting and
disclosure under Title I of ERISA and for inquiries and claims; (ii) a person with
responsibility for reporting and disclosure under the Internal Revenue Code of 1986 (as
amended) or any other applicable law; (iii) attorneys and others to represent them before any
court or governmental agency; (iv) and investment manager or managers with exclusive
authority and discretion to manage, acquire and dispose of assets of any plan; (v) a Trustee
or Trustees with exclusive authority and discretion to manage and control part or all of the
assets of the Plan, subject to any appointment of an investment manager.
	 
	 	(b)	 	At any time a person or persons other than the Employer is Named Fiduciary, (i) to sign
written instruments setting forth any plan adopted by the Employer; (ii) to adopt minor
amendments to the Plan without prior approval by the Employer to the extent amendments are
necessary or advisable for purposes of compliance with ERISA and other applicable laws and
regulations and to sign written instruments setting forth such amendments; (iii) to act for
the Employer in connection with any administrative or judicial proceeding affecting any
employee benefit plan; (iv) to employ, subject to the requirements of the financial officers
of the Employer, persons to render accounting, actuarial, legal, investment or insurance
advice and to rely on such advice; and (v) to allocate fiduciary responsibilities among
themselves.

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	 	(c)	 	To establish a funding policy and method consistent with the objectives of each plan and
consistent with ERISA, and to provide procedures for carrying them out.
	 
	 	(d)	 	To designate persons to carry out fiduciary responsibilities (other than trustee
responsibilities under any plan).

	7.2	 	PLAN ADMINISTRATOR
	 
	 	 	The Plan Administrator shall administer the plan in a nondiscriminatory manner for the
exclusive benefit of Participants and their Beneficiaries.
	 
	 	 	The Plan Administrator shall perform all such duties as are necessary to operate, administer
and manage the Plan in accordance with the terms thereof, in its discretion, including but
not limited to the following:

	 	(a)	 	To determine all questions relating to a Participant’s coverage under the Plan,
	 
	 	(b)	 	To maintain all necessary records for the administration of the Plan,
	 
	 	(c)	 	To compute and authorize the payment of retirement income and other benefit payments to
eligible Participants and Beneficiaries,
	 
	 	(d)	 	To interpret and construe the provisions of the Plan and make regulations which are not
inconsistent with the terms thereof,
	 
	 	(e)	 	To advise or assist Participants regarding any rights, benefits, or elections available
under the Plan.

	 	 	The Plan Administrator shall take such actions as are necessary to establish and maintain the
Plan as a retirement program which is at all times in full and timely compliance with any law
or regulation having pertinence to this Plan.
	 
	 	 	The Plan Administrator may allocate certain specified duties of the plan administration to an
individual or group of individuals who, with respect to such duties, shall have all
reasonable powers necessary or appropriate to accomplish them.
	 
	7.3	 	ADMINISTRATIVE PROCEDURES
	 
	 	 	The Administrator may adopt such administrative procedures and regulations as he deems
desirable for the conduct of his duties and responsibilities. If the Administrator is a
Participant or Beneficiary under the Plan, he shall not take action or decide any question
when such action or question relates exclusively to himself but shall refer the matter to the
Board for action or decision. All decisions, actions and notifications of the Administrator
shall he evidenced in writing.
	 
	7.4	 	ADMINISTRATOR TO MAINTAIN RECORDS
	 
	 	 	The Administrator shall maintain, or cause to maintained, accounts showing the operation and
condition of the Trust Fund and shall keep), or cause to be kept, in convenient form such
data as may be necessary for the valuation of the assets and liabilities of the Plan. The
Administrator shall prepare or cause to be prepared and distributed to Participants and other
individuals or filed with the appropriate governmental agencies, as the case may be, all
necessary descriptions, reports, information returns, and data required pursuant to the Code,
ERISA and other applicable laws.

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	7.5	 	CLAIMS PROCEDURES

	 	(a)	 	If a Participant, spouse or Beneficiary asserts a right to a benefit under the Plan which
he has not received, he must file a claim for such benefit with the Administrator. If the
Administrator wholly or partially denies such claim, he shall provide written notice to the
Participant, spouse or the Beneficiary submitting the application within ninety (90) days of
the receipt by the Administrator of the application. The Administrator shall set forth in the
notice:

	 	(i)	 	the specific reasons for the denial of the claim;
	 
	 	(ii)	 	the specific reference to pertinent provisions of the Plan on which the denial is
based;
	 
	 	(iii)	 	a description of any additional material or information necessary to perfect the
claim and an explanation of why such material or information is necessary; and
	 
	 	(iv)	 	an explanation of the Plan’s claims review procedure.

	 	(b)	 	A Participant, spouse or Beneficiary whose application for benefits is denied, or his
duly authorized representative, may request a full and fair review of the decision denying
the claim no later than sixty (60) days after receipt of the notice of the denial from the
Administrator. The Participant, spouse or Beneficiary, or his duly authorized representative,
may:

	 	(i)	 	request a hearing by the Administrator upon written application
to the Administrator;
	 
	 	(ii)	 	review pertinent documents in the possession of the Administrator; or
	 
	 	(iii)	 	submit issues and comments in writing to the Administrator for review.

	 	(c)	 	With the exception of the notice requirements governing claims for disability retirement
income as described in paragraph (d) below, a decision on the review by the Administrator
shall be made promptly and not later than sixty (60) days after the receipts by the
Administrator of a request for review, unless special circumstances (such as the need to hold
a hearing) require an extension of time for processing, in which case the claimant will be so
notified of the extension, and a decision shall be rendered as soon as possible, and not
later than one hundred and twenty (120) days after the receipt of the request for review. The
decision shall be in writing and shall include specific reasons for the decision and shall be
written in a manner calculated to be understood by the Participant, spouse or Beneficiary,
and shall contain specific reference to the pertinent provisions of the Plan on which the
decision is based.
	 
	 	(d)	 	With respect to claims for disability retirement income submitted on or after January 1,
2002, the Plan Administrator shall notify the claimant of the approval or the denial of the
claim within 45 days after receipt of such claim unless, due to circumstances beyond the
control of the Plan Administrator, an extension of time for processing the claim is required.
If the Plan Administrator requires such an extension, it shall furnish a written notice to
the claimant before the expiration of such initial 45 day period, explaining that the review
period will be extended by 30 days. If, before the expiration of such initial 30 day
extension period, the Plan Administrator determines (that circumstances beyond its control
prevent a decision from being rendered within that period, such extension shall be extended
for an additional 30 days, provided that the Plan Administrator notifies the claimant before
the end of the first extension period.
	 
	 	 	 	In the case of any extension effected pursuant to the terms of the preceding
paragraph, the notice of extension shall specifically explain the standards on which
entitlement to a benefit is based, the unresolved issues that prevent a decision on
the claim, and the additional information needed to resolve those issues, and the
claimant shall be afforded at least 45 days within which to provide the specified
information.

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	7.6	 	RELIANCE ON COUNSEL, ETC.
	 
	 	 	Neither the Employer, its officers, the Board, nor any Fiduciary shall be responsible for any
reports furnished by any expert retained or employed by the Employer or any Fiduciary, but
they shall be entitled to rely thereon as well as on certificates furnished by an accountant,
and an all opinions of counsel. The Employer, its officers, the Board and the Fiduciaries
shall be fully protected with respect to any action taken or suffered by them in good faith
in reliance upon such expert, accountant, or counsel, and all actions taken or suffered in
such reliance shall be conclusive upon each of them and upon all Employees, Participants,
spouses, Beneficiaries and any other persons interested hereunder and under the Trust
Agreement.
	 
	7.7	 	COMPENSATION AND LIABILITY
	 
	 	 	The Administrator shall not be entitled to any compensation for his services hereunder, but
he shall be entitled to reimbursement for any and all reasonable expenses incurred by him.
The Employer will indemnify every person who is or was an officer or Employee of the Employer
or a person who provides services without compensation to the Plan, for any liability
(including reasonable costs of defense and settlement) arising by reason of any act or
omission affecting the Plan or affecting the Participants, spouses, or Beneficiaries thereof,
including without limitation any damages, civil penalty or excise tax imposed pursuant to
ERISA; provided (1) that the act or omission shall have occurred (a) in the course of the
person’s service as at officer of the Employer, if the performance by such person of his
duties to the Employer, or as an officer or Employee thereof also imposes duties on, or
otherwise involves services by, such person to the Plan or its Beneficiaries, or (b) in
connection with a service provided without compensation to the Plan or to the Participants,
spouses or Beneficiaries of the Plan, if such service was requested by the Employer, (2) that
the act or omission be in good faith and in or not opposed to the best interests of the
Participants as determined by the Board (whose determination made in good faith and not
arbitrarily or capriciously shall be conclusive), and (3) that the Employer’s obligation
hereunder shall be offset to the extent of any otherwise applicable insurance coverage, under
a policy maintained by the Employer or any other person, or other source of indemnification.
	 
	7.8	 	ACTUARY
	 
	 	 	The Administrator shall engage an Actuary who shall perform such duties as may, from time to
time, be required under ERISA. The Administrator, upon advice of the Actuary, shall recommend
the contribution payable by the Employer under the Plan.
	 
	7.9	 	ADMINISTRATOR REPORTS AND ACCOUNTS
	 
	 	 	The Administrator shall render such accounts and reports to the Employer concerning the Plan
and the administration thereof as shall be requested in writing by the Employer.
	 
	7.10	 	PAYMENTS BY ADMINISTRATOR
	 
	 	 	The Administrator, in his sole and absolute discretion, may make any benefit payable
hereunder to a Participant, spouse, or his Beneficiaries by authorizing the Trustee or the
Insurer to pay the same.
	 
	7.11	 	EXPENSES
	 
	 	 	Any expenses incurred in the administration of the Plan unless paid by the Employer shall be
paid from the Trust Fund.

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ARTICLE 8

DUTIES OF THE TRUSTEE

	8.1	 	APPOINTMENT, RESIGNATION, REMOVAL AND SUCCESSION
	 
	 	 	The Plan will have one or more individual Trustees, a corporate Trustee or any combination
thereof appointed as follows:

	 	(a)	 	Appointment Of Trustee: Each Trustee will be appointed by the Employer and will serve
until its successor has been named or until such Trustee’s resignation, death, incapacity, or
removal, in which event the Employer will name a successor Trustee. The term Trustee will
include the original and any successor Trustees.
	 
	 	(b)	 	Resignation Of Trustee: A Trustee may resign at any time by giving 30 days written notice
in advance to the Employer, unless such notice is waived by the Employer. The Employer may
remove a Trustee by giving such Trustee 30 days written notice in advance. Such removal may
be with or without cause.
	 
	 	(c)	 	Successor Trustee: Each successor Trustee will succeed to the title to the Trust by
accepting his appointment in writing and by filing such written acceptance with the former
Trustee and the Employer. The former Trustee, upon receipt of such acceptance, will execute
all documents and perform all acts necessary to vest the Trust Fund’s title of record in any
successor Trustee. No successor Trustee will be personally liable for any act or failure to
act of any predecessor Trustee.
	 
	 	(d)	 	Merger Of Corporate Trustee: If any corporate Trustee, before or after qualification,
changes its name, consolidates or merges with another corporation, or otherwise reorganizes,
any resulting corporation which succeeds to the fiduciary business of such Trustee will
become a Trustee hereunder in lieu of such corporate Trustee.

	8.2	 	INVESTMENT ALTERNATIVES OF THE TRUSTEE
	 
	 	 	The Trustees will implement an investment program based on the Employer’s investment
objectives and the Employee Retirement Income Security Act. In addition to powers given by
law, the Trustees may engage in the following investment activities of behalf of the Trust:

	 	(a)	 	Property: Invest in any form of property, including common and preferred stocks, exchange
covered call options, bonds, money market instruments, mutual funds, savings accounts,
certificates of deposit, Treasury bills, or in any other property, real or personal, foreign
or domestic, having a ready market including securities issued by an institutional Trustee
and/or affiliate of the institutional Trustee. The Trustee may invest on margin. An
institutional Trustee may invest in its own deposits if they bear a reasonable interest rate.
The Trustee may retain, manage, operate, repair, improve and mortgage or lease for any period
on such terms as it deems proper any real estate or personal property held by the Trustee,
including the power to demolish any building or other improvements. The Trustee may erect
buildings or other improvements, make leases that extend beyond the term of this Trust, and
foreclose, extend, renew, assign, release or partially release and discharge mortgages or
other liens.
	 
	 	(b)	 	Pooled Funds: Transfer any assets to a collective trust established to permit the pooling
of funds of separate pension and profit-sharing trusts provided the Internal Revenue Service
has ruled such collective trust to be qualified under Code §401(a) and exempt under Code
§501(a) (or the applicable corresponding provision of any other Revenue Act) or to any other
common, collective, or commingled trust fund which has been or may hereafter be established
and maintained by the Trustee and/or affiliates of an institutional Trustee. Such commingling
of assets of the Fund with assets of other qualified trusts is specifically authorized, and
to the extent of the investment of the

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	 	 	 	Trust Fund in such a group or collective trust, the terms of the instrument
establishing the group or collective trust will be a part hereof as though set forth
herein.
	 
	 	(c)	 	Employer Stock: Invest in the common stock, debt obligations, or any other security
issued by the Employer or by an affiliate of the Employer within the limitations provided
under Sections 406, 407, and 408 of ERISA provided that such investment does not constitute a
prohibited transaction under Code §4975. Any such investment will only be made upon written
direction of the Employer who will be solely responsible for the propriety of such
investment.
	 
	 	(d)	 	Cash Reserves: Retain as much cash as the Trustee may deem advisable to satisfy the
liquidity needs of the Plan and to deposit any cash held in the Trust Fund in a bank account
without liability for the highest rate of interest available. If a bank is acting as Trustee,
such Trustee is specifically given authority to invest in deposits of such Trustee. The
Trustee may also hold cash un-invested at any time and from time to time and in such amount
or to such extent as the Trustee deems prudent, and the Trustee will not be liable for any
losses which may be incurred as the result of the failure to invest same, except to the
extent provided herein or in ERISA.
	 
	 	(e)	 	Reorganizations: Join in or oppose the reorganization, recapitalization, consolidation,
sale or merger of corporations or properties upon terms the Trustee deems wise.
	 
	 	(f)	 	Registration of Securities: Cause any securities or other property to be registered in
the Trustee’s own name or in the name of the Trustee’s nominee or nominees, and may hold any
investments in bearer form, but the records of the Trustee will at all times show all such
investments as part of the Trust Fund.
	 
	 	(g)	 	Proxies: Vote proxies or pass them on to any investment manager which may have directed
the investment in the equity giving rise to the proxy.
	 
	 	(h)	 	Ownership Rights: Exercise all ownership rights with respect to any Trust assets.
	 
	 	(i)	 	Other Investments: Accept and retain for such time as the Trustee deems advisable
securities or other property received or acquired as Trustee even if such securities or
property would normally not be purchased as investments hereunder.
	 
	 	(j)	 	Key Man Insurance: The Trustee, with the consent of the Administrator, may purchase
Policies on the life of any Participant whose employment is deemed to be key to the
Employer’s financial success. Such key man Policies will be deemed to be an investment of the Trust
Fund and will be payable to the Trust Fund as the beneficiary thereof. The Trustee may
exercise any and all rights granted under such Policies. Neither the Trustee, Employer,
Administrator, or any Fiduciary will be responsible for the validity of any such Policy or
the failure of any insurer to make payments thereunder, or for the action of any person which
may delay payment or render a Policy void in whole or in part. No insurer will be deemed a
party to this Plan for any purpose or to be responsible for a Policy’s validity; nor will it
be required to look into the terms of the Plan nor to question any action of the Trustee. The
obligations of the insurer will be determined solely by the Policy’s terms and any other
written agreements between it and the Trustee.
	 
	 	(k)	 	Litigation: Begin, maintain, or defend any litigation necessary in connection with the
administration of the Plan, except that the Trustee will not be obliged or required to do so
unless indemnified to its satisfaction.
	 
	 	(l)	 	Loans To The Trust: Borrow money for purposes of the Plan in such amounts, and upon such
terms and conditions, as the Trustee deems advisable; and for any sum so borrowed, the
Trustee may issue a promissory note as Trustee, and secure repayment of the loan by pledging
all, or any part, of the Trust Fund as collateral. No person lending money to the Trustee
will be bound to see to the application of the money lent or to inquire into the validity or
propriety of any borrowing.

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	 	(m)	 	Agreements With Banks: With the consent of the Employer and upon such terms as the
Trustee in his discretion deems necessary, enter into an agreement with a bank or trust
company providing for the deposit of all or part of the funds and property of the Trust with
such bank or trust company; or the appointment of such bank or trust company as the agent or
custodian of the Trustees for investment purposes, with such discretion in investing and
reinvesting as the Trustee deems necessary to delegate.
	 
	 	(n)	 	Claims, Debts or Damages: Settle, compromise, or submit to arbitration any claims, debts,
or damages due or owing to or from the Plan.
	 
	 	(o)	 	Miscellaneous: Do all such acts and exercise all such rights, although not specifically
mentioned herein, as the Trustee deems necessary to carry out the purposes of the Plan. The
Trustee will not be restricted to securities or other property of the character expressly
authorized by applicable law for trust investments, subject to the requirement that the
Trustee discharge his duties with the care, skill, prudence, and diligence, under the
circumstances then prevailing, that a prudent man acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of similar character and with similar
aims by diversifying the investments to minimize the risks of large losses unless under the
circumstances it is clearly prudent not to do so.

	8.3	 	VALUATION OF THE TRUST FUND
	 
	 	 	On each Valuation Date, the Trustee will determine the net worth of the Trust Fund. The value
of marketable investments will be determined using the most recent price quoted on a national
securities exchange or over-the-counter market. The value of non-marketable investments will
be determined in the sole judgement of the Trustees. The value of securities or obligations
of the Employer in which there is no market will be determined in the sole judgement of the
Employer, and the Trustees will have no responsibility for such valuation.
	 
	8.4	 	COMPENSATION AND EXPENSES
	 
	 	 	The Trustee, either from the Trust Fund or Employer, will be reimbursed for its expenses and
will be paid reasonable compensation as agreed upon with the Employer; but no person who
receives full-time pay from the Employer will receive any fees for services to the Plan as
Trustee or in any other capacity. Expenses will be paid by each Adopting Employer in the
ratio that each Adopting Employer’s Participants’ Accounts bears to the total of all
Participants’ Accounts.
	 
	8.5	 	PAYMENTS FROM THE TRUST FUND
	 
	 	 	The Trustee will pay benefits and other payments as the Administrator directs, and except as
provided by ERISA, will not be responsible for the propriety of such payments. Payments made
to a Participant or his or her legal representative or Beneficiary as provided in the Plan
will, to the extent thereof, be in full satisfaction of all claims arising against the Trust,
the Trustee, the Employer, and the Administrator. Any such payment or distribution is
contingent on the recipient executing a receipt and release acceptable to the Trustee,
Administrator, or Employer.
	 
	8.6	 	PAYMENT OF TAXES
	 
	 	 	The Trustee will pay all taxes which may be levied or assessed upon or in respect of the
Trust Fund or upon or in respect of any money, property or securities forming a part of the
Trust Fund. The Trustee may withhold from distributions to any payee such sum as the Trustee
may reasonably estimate as necessary to cover federal and state taxes for which the Trustee
may be liable, which are, or may be, assessed with regard to the amount distributable to such
payee. Prior to making any payment, the Trustee may require such releases or other documents
from any lawful taxing authority and may require such indemnity from any payee or distributee
as the Trustee deems necessary.

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	8.7	 	ACCOUNTS, RECORDS AND REPORTS
	 
	 	 	The Trustee will keep accurate records reflecting its administration of the Trust Fund and
will make such records available to the Employer for review and audit. At the request of the
Employer, the Trustee will, within 90 days of such request, file with the Employer an
accounting of its administration of the Trust Fund during such period or periods as the
Employer determines. The Employer will review the accounting and notify the Trustee within 90
days if the report is disapproved, providing the Trustee with a written description of the
items in question. The Trustees will have 60 days to provide the Employer with a written
explanation of the items in question. If the Employer again disapproves of the report, the
Trustee will file its accounting in a court of competent jurisdiction for audit and
adjudication.
	 
	8.8	 	EMPLOYMENT OF AGENTS AND COUNSEL
	 
	 	 	The Trustee may employ such agents, counsel, consultants, or service companies as it deems
necessary and may pay their reasonable expenses and compensation. The Trustee will not be
liable for any action taken or omitted by the Trustee in good faith pursuant to the advice of
such agents and counsel. Any agent, counsel, consultant, service company and/or its
successors will exercise no discretionary authority over investments or the disposition of
Trust assets, and their services and duties will be ministerial only and will be to provide
the Plan with those things required by law or by the Plan without in any way exercising any
fiduciary authority or responsibility under the Plan. The duties of a third party
administrator will be to safe-keep the individual records for all Participants and to prepare
all required actuarial services and disclosure forms under the supervision of the
Administrator and any Fiduciaries of the Plan. It is expressly stated that the third party
administrator’s services are only ministerial in nature and that under no circumstances will
such third party administrator exercise any discretionary authority over Plan Participants,
Plan investments, or Plan benefits.
	 
	8.9	 	DIVISION OF DUTIES AND INDEMNIFICATION
	 
	 	 	The division of duties and the indemnification of the Trustees of this Plan will be governed
by the following provisions:

	 	(a)	 	No Guarantee Against Loss: The Trustees will have the authority to manage and control the
Trust Fund to the extent provided in this instrument, but do not guarantee the Trust Fund in
any manner against investment loss or depreciation in asset value, or guarantee the adequacy
of the Trust Fund to meet and discharge all or any liabilities of the Plan. The Trustees will
not be liable for the making, retention or sale of any investment or reinvestment made by it,
as herein provided, or for any loss to or diminution of the Trust Fund, or for any other loss
or damage which may result from the discharge of its duties hereunder, except to the extent
it is judicially determined that the Trustees have failed to exercise the care, skill,
prudence and diligence under the circumstances then prevailing that a prudent person acting
in a like capacity and familiar with such matters would use in the conduct of an enterprise
or a like character.
	 
	 	(b)	 	Representations Of The Employer: The Employer warrants that all directions issued to the
Trustees by it or the Plan Administrator will be in accordance with the terms of the Plan and
not contrary to the provisions of the Employee Retirement Income Security Act of 1974 and the
regulations issued thereunder.
	 
	 	(c)	 	Directions By Others: Trustees will not be answerable for any action taken pursuant to
any direction, consent, certificate, or other document on the belief that the same is genuine
and signed by the proper person. All directions by the Employer, a Participant or the Plan
Administrator will be in writing. The Plan Administrator will deliver to the Trustees
certificates evidencing the individual or individuals authorized to act as the Administrator
and will deliver to the Trustees specimens of their signatures.

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	 	(d)	 	Duties And Obligations Limited By The Plan: The duties and obligations of the Trustees
will be limited to those expressly imposed upon it by this Plan or subsequently agreed upon
by the parties. Responsibility for administrative duties required under the Plan or
applicable law not expressly imposed upon or agreed to by the Trustees, will rest solely with
the Employer and with the Administrator.
	 
	 	(e)	 	Indemnification: The Trustees will be indemnified by the Employer against all liability
to which the Trustees may be subjected, including all expenses reasonably incurred in its
defense, for any action or failure to act resulting from compliance with the Employer’s
instructions, the Employer’s employees or agents, the Administrator, or any other Fiduciary
to the Plan, and for any liability arising from the actions or non-actions of any predecessor
Trustees or Fiduciary or other Fiduciaries of the Plan.
	 
	 	(f)	 	Trustees Not Responsible For Application Of Payments: The Trustees will not be
responsible in any way for the application of any payments it is directed to make or for the
adequacy of the Fund to meet ( and discharge any and all liabilities under the Plan.
	 
	 	(g)	 	Multiple Trustees: If more than one Trustee is appointed, any single Trustee may act
independently in undertaking any act and/or transaction on behalf of the Trust unless the
Trustees have agreed by a majority of their number that a particular action must be approved
by a majority of their number before it can be undertaken.
	 
	 	(h)	 	Limitation Of Liability: No Trustee will be liable for the act of any other Trustee or
Fiduciary unless the Trustee has knowledge of such act.
	 
	 	(i)	 	Trustees As Participants Or Beneficiaries: Trustees will not be prevented from receiving
any benefits to which they may be entitled as Participants or Beneficiaries in the Plan, so
long as the benefits are computed and paid on a basis which is consistent with the terms of
the Plan as applied to all other Participants and Beneficiaries.
	 
	 	(j)	 	No Self-Dealing By Trustees: The Trustees will not deal with the Trust Fund in their own
interest or for their own account; act in their individual or in any other capacity in any
transaction involving the Trust Fund on behalf of a party, or represent a party, whose
interests are adverse to the interests of the Plan, or to the interests of its Participants
or Beneficiaries; or receive consideration for their own personal accounts from any party
dealing with the Plan in connection with a transaction involving assets of the Trust Fund.

	8.10	 	APPOINTMENT OF INVESTMENT MANAGER
	 
	 	 	The Named Fiduciary may appoint an Investment Manager to manage and control the investment of
all or any portion of the Trust Fund. Each Investment Manager will be either an investment
advisor registered under the Investment Advisors Act of 1940; a bank as defined in that Act;
or an insurance company qualified to manage, acquire or dispose of any asset of the Trust
under the laws of more than one state. An Investment Manager will acknowledge in writing that
it is a Fiduciary of the Plan. The Trustee will enter into an agreement with the Investment
Manager specifying the duties and compensation of the Investment Manager and further
specifying any other terms and conditions under which the Investment Manager will be
retained. The Trustee will not be liable for any act or omission of an Investment Manager,
and will not be liable for following the advice of an Investment Manager with respect to any
duties delegated by the Trustee to the Investment Manager. The Trustee can determine the
portion of the Plan’s assets to be invested by a designated Investment Manager and can
establish investment objectives and guidelines for the Investment Manager to follow.

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	8.11	 	ASSIGNMENT AND ALIENATION OF BENEFITS
	 
	 	 	Except as May otherwise be permitted under Code §401(a)(13)(C), or as may otherwise be
permitted under a Qualified Domestic Relations Order as provided in Section 8.6, or as may
otherwise be permitted under Section 7.15 relating to loans to Participants, no right or
claim to, or interest in, any part of the Trust Fund, or any payment therefrom, will be
assignable, transferable, or subject to sale, mortgage, pledge, hypothecation, commutation,
anticipation, garnishment, attachment, execution, or levy of any kind, and the Trustees will
not recognize any attempt to assign, transfer, sell, mortgage, pledge, hypothecate, commute,
or anticipate the same, except to the extent required by law.
	 
	8.12	 	EXCLUSIVE BENEFIT RULE
	 
	 	 	All contributions made by the Employer or an Affiliated Employer will be used for the
exclusive benefit of the Participants who are Employees thereof and for Beneficiaries and
will not be used for nor diverted to any other purpose except the payment of the costs of
maintaining the Plan. All contributions made by an. Adopting Employer who is not
an Affiliated Employer will be used for the exclusive benefit of the Participants who are
Employees of the Adopting Employer and for their Beneficiaries and will not be used for nor
diverted to any other purpose except the payment of the Adopting Employers proportionate
costs of maintaining the Plan pursuant to Section 7.4.
	 
	8.13	 	PURCHASE OF INSURANCE
	 
	 	 	The purchase of insurance Policies on the life of a Participant, other than key man insurance
under Section 7.2(i), is not currently permitted in this Plan.
	 
	8.14	 	SUPERSEDING TRUST OR CUSTODIAL AGREEMENT
	 
	 	 	If any assets of the Plan are invested in a separate trust or custodial account maintained by
a corporate Trustee or custodian, the provisions of such separate trust or custodial
agreement will supersede the provisions set forth in this Article 7, except with respect to
those provisions of this Article that pertain to the purchase of insurance on the lives of
Participants and to the making of loans to Participants.

ARTICLE 9

AMENDMENT, TERMINATION AND MERGER

	9.1	 	AMENDMENT
	 
	 	 	The Employer, by action of its board or directors, will ]lave the right to amend the Plan at
any time if the amendment is in compliance with the following requirements:

	 	(a)	 	General Requirements: Amendments must be in writing and cannot (1) increase the
responsibilities of the Trustee or Administrator without written consent; (2) deprive any
Participant or Beneficiary of Plan benefits to which he or she is entitled; (3) decrease the
amount of any Participant’s Accrued Benefit except as permitted under Code §412(c)(8); (4)
permit any part of the Trust Fund to be used for or diverted to purposes other than the
exclusive benefit of the Participants or their Beneficiaries except as required to pay taxes
and administration expenses, or cause or permit any portion of the Trust Fund to revert to or
become the property of the Employer; or (5) eliminate or reduce a retirement-type subsidy, or
an early retirement benefit, or an optional form of benefit with respect to benefits
attributable to service before the amendment. In the case of a retirement-type subsidy, this
provision will apply only to a Participant who satisfies the pre-amendment conditions for the
subsidy either before or after the amendment.

-33-

 

	 	(b)	 	Certain Corrective Amendments: For purposes of satisfying the minimum coverage
requirements of Code §410(b), the nondiscriminatory amount requirement of regulation
§1.401(a)(4)-1(b)(2), or the nondiscriminatory plan amendment requirement of regulation
§1.401(a)(4)-1(b)(4), a corrective amendment may retroactively increase accruals for
Employees who benefited under the Plan during the Plan Year being corrected, or may grant
accruals to Employees who did not benefit under the Plan during the Plan Year being
corrected. In addition, to satisfy the nondiscriminatory current availability requirement of
regulation §1.401(a)(4)-4(b) for benefits, rights or features, a corrective amendment may
make a benefit, right or feature available to Employees to whom it was previously not
available. A corrective amendment will not be effective prior to the date of adoption unless
it satisfies the applicable requirements of regulation §1.401(a)(4)-ll (g)(3)(ii) through
(vii), including the requirement that, in order to he effective for the preceding Plan Year,
such amendment must be adopted by the 15th day of the 10th month after the close of the
preceding Plan Year.

	9.2	 	TERMINATION
	 
	 	 	The Employer has the right to terminate the Plan and the Trust in whole or in part at any
lime by delivering 60 days written notice to the Administrator and Trustee. Upon termination
of the Plan, the Trustee will continue to administer the Trust until distribution has been
made to the Participants, which distribution must occur within a reasonable time after the
termination of the Plan, and must be made in accordance with the provisions of Article 5 of
the Plan. Upon termination of the Plan, whether partial or complete, any Participant who is
affected by such termination will have a 100% Vested Interest in his or her Accrued Benefit.
	 
	9.3	 	MERGER OR CONSOLIDATION
	 
	 	 	This Plan and Trust may not be merged or consolidated with, nor may any of its assets or
liabilities be transferred to, any other plan, unless the benefits payable to each
Participant if the Plan was terminated immediately after any such merger, consolidation or
transfer would be equal to or greater than the benefits to which such Participant would have
been entitled if this Plan had been terminated immediately before such merger, consolidation
or transfer.
	 
	9.4	 	ALLOCATION OF ASSETS UPON TERMINATION
	 
	 	 	If the Plan is terminated, or if there is a partial termination, the Trust Fund will be
allocated on the basis of the costs of benefits due active, terminated, and retired
participants, their spouses or Beneficiaries, with respect to Years of Service to the date of
termination or partial termination, subject to the following provisions:

	 	(a)	 	Priority Of Payment: If the Trust Fund cannot provide such costs in full, it will be
allocated in the following order of priority, with allocations within the last category for
which assets are available being made in proportion to the costs within that category for
each Participant: (1) benefits accrued for Participants from Employee contributions; (2)
costs for Participants who have been receiving benefits or who have been eligible to receive
Normal Retirement Benefits in accordance with Section 5.1 for more than three years as of the
date of termination; (3) costs for Participants who have been receiving benefits or who have
been eligible to receive Normal Retirement Benefits in accordance with Section 5.1 for less
than three years as of the date of termination; (4) costs for Participants who were eligible
to receive early retirement benefits as of the date of termination; (5) costs for all other
benefits insured by the Pension Benefit Guaranty Corporation; and (6) costs for any other
benefits.
	 
	 	(b)	 	Discrimination Not Permitted: If the allocation made under paragraphs (a)(5) and (a)(6)
above results in discrimination in favor of Participants who are officers, shareholders, or
Highly Compensated Employees, then the assets allocated under paragraph (a)(5) and paragraph
(a)(6) will be reallocated to avoid such discrimination. All amounts allocated under this
paragraph shall be non-forfeitable, to the extent Fund assets are sufficient. After
allocation, the Employer will determine

-34-

 

	 	 	 	whether to make lump sum payments of the Actuarial Equivalent of benefits from the
Trust Fund or whether to purchase immediate or deferred annuities from an insurance
company in whatever amounts the monies so allocated will provide. If the Trust Fund
has sufficient assets to cover the cost of all Accrued Benefits and full settlement of
all such benefits is made by lump sum payments of the Actuarial Equivalent of benefits
or through the purchase of a group annuity contract or individual annuity contracts,
then any balance remaining in the Trust Fund will be refunded to the Employer.

	9.5	 	EARLY TERMINATION PROVISIONS
	 
	 	 	Upon termination of the Plan, benefits distributed in full will be subject to the following
provisions:

	 	(a)	 	Assets Are Sufficient To Satisfy Accrued Benefits: If, as of the date this Plan
terminates and benefits are distributed in full, the value of Plan assets is not less than
the Actuarial Equivalent of all Accrued Benefits (whether or not nonforfeitable),
distribution of assets to each Participant equal to the Actuarial Equivalent of (that
Participant’s Accrued Benefit will not be discriminatory if the formula for computing
benefits as of the date of termination is not discriminatory under Code Section 401(a)(4).
The benefit payable to a current or former Participant who is or was a
Highly Compensated Employee (as of the date he or she last completed an Hour of
Service) shall not exceed the benefit which is considered nondiscriminatory under Code
Section 401(a)(4). All Actuarial Equivalents and the value of Plan assets will be
computed using assumptions satisfying Section 4044 of ERISA. Upon the occurrence of
the above situation, the amount by which the value of Plan assets exceeds the
Actuarial Equivalent of Accrued Benefits (whether or not nonforfeitable) will revert
to the Employer, except if otherwise provided under Sections 1.1 or 5.1.
	 
	 	(b)	 	Assets Are Insufficient To Satisfy Accrued Benefits: Notwithstanding paragraph (a), if,
as of the date the Plan terminates and benefits are distributed in full, the value of Plan
assets is less than the Actuarial Equivalent of all Accrued Benefits (whether or not
nonforfeitable), then [the provisions of paragraph (i) will apply or, at the discretion of
the Administrator, the provisions of paragraphs (c), (d), (e) and (f), subject to paragraphs
(g) and (h) will apply for Plan Years beginning before January 1, 1994.
	 
	 	(c)	 	Restricted Benefits For 25 Highest Paid Employees: Employer contributions on behalf of
any of the 25 highest paid Employees at the time the Plan is established and whose
anticipated Annual Benefit exceeds $1,500 will be restricted as provided in paragraph (d)
upon the occurrence of the following conditions: (1) the Plan is terminated within 10 years
after its establishment; (2) the benefits of such highest paid Participant become payable
within 10 years after the establishment of the Plan; or (3) if Code §412 (without regard to
Code §412(h)(2)) does not apply to this Plan, the benefits of such Participant become payable
after the Plan has been in effect for 10 years, and the full current costs of the Plan for
the first 10 years have not been funded.
	 
	 	(d)	 	Maximum Distributable Restricted Benefit: Employer contributions which may be used for
the benefit of a Participant described in paragraph (c) will not exceed the greater of
$20,000, or 20% of the first $50,000 of the Participant’s Compensation multiplied by the
number of years between the date of the establishment of the Plan and (1) the date of the
termination of the Plan if paragraph (c)(1) applies; (2) the date the benefits become payable
if paragraph (c)(2) applies; or (3) the date of the failure to meet the full current costs
if paragraph (c)(3) applies.
	 
	 	(e)	 	Amendments To Increase Benefits: If the Plan is amended to increase the benefit, then in
event of the subsequent termination of the Plan or the subsequent discontinuance of
contributions hereunder, the provisions of the above paragraphs will be applied as if the
Plan were newly established on the date of the change. The original group of 25 Employees
described in paragraph (c) will continue to have the limitations in paragraph (d) apply as if
the Plan had not been changed. The restrictions relating to the changes of the Plan will
apply to benefits or funds for each of the 25 highest paid Participants on the effective date
of the changes except that such restrictions need not

-35-

 

	 	 	 	apply with respect to any Participant in this group for whom the normal annual pension or
annuity provided by the Employer contributions prior to that date and during the ensuing 10 years,
based on the rate of Compensation on that date, could not exceed $1,500.
	 
	 	(f)	 	Maximum Distributable Benefits To New Group of 25 Highest Employees: The Employer
contributions which May be used for the benefit of the new group of 25 Participants will be limited
to the greater of (1) the Employer contributions (or funds attributable thereto) which would have
been applied to provide the benefits for the Employee if the previous Plan had been continued
without change; (2) $20,000; or (3) the sum of (A) the Employer contributions (or funds
attributable thereto) which would have been applied to provide benefits for the Employee under the
previous plan if it had been terminated the date before the Effective Date of change, and (B) an
amount computed by multiplying the number of years for which the current costs of the Plan after
that date are met by 20% of Compensation, or $10,000, whichever is smaller.
	 
	 	(g)	 	Modifications To Maximum Distributable Benefits: Notwithstanding the above limitations, the
following limitations will apply if they would result in a greater amount of Employer contributions
being used for the benefit of the restricted Participant: (1) in the case of a substantial owner as
defined in ERISA §4022(b)(5), a dollar amount which equals the Actuarial Equivalent of the benefit
guaranteed for such Participant under ERISA §4022, or if the Plan has not terminated, the Actuarial
Equivalent of the benefit that would be guaranteed if the Plan terminated on the date the benefit
commences, determined in accordance with regulations of the Pension Benefit Guaranty Corporation
(PBGC); and (2) in the case of the other restricted Participants, a dollar amount which equals the
present value of the maximum benefit described in ERISA §4022(b)(3)(B) (determined on the earlier
of the date the Plan terminates or the date benefits commence, and determined in accordance with
regulations of the Pension Benefit Guaranty Corporation) without regard to any other limitations in
ERISA §4022.
	 
	 	(h)	 	Distributions Upon Receipt Of 125% Deposit: Notwithstanding the otherwise applicable
restrictions on distributions of benefits incident to early termination or early Plan termination,
a Participant’s otherwise restricted benefit may be distributed in full upon depositing with an
acceptable depository property having a fair market value equal to 125% of the amount which would
be repayable had the Plan terminated on the date of the lump sum distribution. If the market value
of the property held by the depository falls below 110% of the amount which would be repayable if
the Plan were then to terminate, additional property necessary to bring the value of the property
held by the depository up to 125% of such amount must be deposited and any agreement with a
depository shall so provide. Notwithstanding any provision in this paragraph to the contrary, any
Participant who has deposited restricted amounts in a depository pursuant to this paragraph, will
have the right to receive any income the generated by such property if the market value of the
property is otherwise maintained.
	 
	 	(i)	 	Limitation On Annual Payments: Benefits distributed to any of the active and former 25 most
Highly Compensated Employees who have the greatest compensation in the current or any prior Plan
Year are restricted so that the annual payments are no greater than an amount equal to the payment
that would be made on behalf of the Participant under a single life annuity that is the Actuarial
Equivalent of the sum of the Participant’s Accrued Benefit and the Participant’s other benefits
under the Plan.
	 
	 	(j)	 	When Restrictions Do Not Apply: Paragraphs (a) through (i) will not apply if either (1) after
payment of the benefit to such a Participant, the value of Plan assets equals or exceeds the
Actuarial Equivalent of all Accrued Benefits (whether or not nonforfeitable); or (2) the value of
the benefits for such a Participant is less than 1% of the value of current liabilities; or (3) the
value of the Participant’s future non-restricted limit does not exceed $5,000. For these purposes
the term ‘benefit’ includes loans in excess of the amount set forth in Code §72(p)(2)(A), any
periodic income, any withdrawal values payable to a living Participant, and any death benefit not provided
for by insurance on the Participant’s life.

-36-

 

ARTICLE 10

TOP HEAVY PROVISIONS

	10.1	 	TOP HEAVY
	 
	 	 	The Plan shall be deemed a Top Heavy Plan for a Plan Year if, as of the Determination Date:

	 	(a)	 	The present value of Accrued Benefits of Participants who are Key Employees exceed sixty
percent (60%) of the present value of Accrued Benefits of all Participants, or
	 
	 	(b)	 	The Plan is part of a Required Aggregation Group which is a Top Heavy Group.

	 	 	For purposes of this test, any distribution made during the five Plan Years ending on the
Determination Date shall be taken into account. The balance of any terminated plan maintained
within the last five years of the Determination Date which was part of a Required Aggregation
Group shall be taken into account for purposes of this test. The present value of Accrued
Benefits of all individuals who have not performed any services for the Employer during the
five-year period ending on the Determination Date shall be disregarded for purposes of this
Section. If a Participant was not a Key Employee during the five Plan Years ending on the
Determination Date, but such individual was a Key Employee during any previous Plan Year, his
present value of Accrued Benefits shall not be taken into account. In no event shall the Plan
be considered Top Heavy if it is part of a Required or Permissive Aggregation Group which is
not a Top Heavy Group.
	 
	10.2	 	MINIMUM BENEFIT
	 
	 	 	For any Plan Year during which the Plan is deemed to be a Top Heavy Plan, the Participant’s
Annual Accrued Benefit payable as a life annuity at his Normal Retirement Date shall be no
less than the following:

	 	(a)	 	A benefit equal to the participant’s average Compensation for the 5 calendar year period
in which his Compensation is highest times the lesser of 2% multiplied by the number of the
Participant’s years of Vesting Service, where such service was earned while the Plan was a
Top Heavy Plan and in a Plan Year beginning after January 1, 1984, disregarding any Year of
Vesting Service if the Plan was not Top Heavy for any Plan Year ending during such Year of
Vesting Service, or (ii) 20%.
	 
	 	(b)	 	If the Participant is also a participant in a defined benefit plan or a defined
contribution plan sponsored by the Employer which provides a top heavy minimum benefit, the
top heavy minimum benefit provided by the Plan is 0%.

	 	 	Effective January 1, 2002, and for purposes of satisfying the minimum benefit requirements of
Code Section 416(c)(1) and the Plan, in determining years of service with the Employer, any
service with the Employer shall be disregarded to the extent that such service occurs during
a Plan Year when the Plan benefits (within the meaning of Code Section 410(b)) no Key
Employee or former Key Employee.
	 
	10.3	 	MINIMUM VESTING
	 
	 	 	Each Participant who completes an Hour of Service after the Plan becomes a Top Heavy Plan
shall have a non-forfeitable right to a percentage of his Accrued Benefit or the Minimum
Accrued Benefit determined under Section 10.2, if larger, determined in accordance with the
following schedule:

	 	 	 	 	 
	Years Of Vesting Service	 	Non-Forfeiture Percentage
	Less than 2
	 	 	0% 	 
	2
	 	 	20% 	 
	3
	 	 	40% 	 
	4
	 	 	60% 	 
	5 or more
	 	 	100% 	 

-37-

 

	10.4	 	DEFINITIONS
	 
	 	 	“Aggregation Group” means a Required Aggregation Group which is (i) each plan of the
Employer, whether or not terminated, which provides benefits to a Key employee and (ii) each
other plan of the Employer, if any, which is included with the plan described in Clause (i)
of this Section for purposes of meeting the requirements of Section 401(a)(4) and 410 of the
Code. A Permissive Aggregation Group is this Plan and each other plan of the Employer,
whether or not terminated, which in total would continue to meet the requirement of Section
401(a)(4) and 410 of the Code with such other plan being taken into account (i.e., after
aggregation with all such other plans, the Permissive Aggregation Group satisfies the
anti-discrimination rules of Code Section 401(a)(4) and satisfies the coverage test of Code
Section 410(b).
	 
	 	 	“Compensation” means the Participant’s wages, salaries, fees for professional services
and other amounts received for personal services actually rendered in the course of
employment with the Employer, but does not include any amounts which are excluded under the
definition of compensation provided in Section 415 of the Code.
	 
	 	 	“Determination Date” means the last day of the preceding Plan Year or in the case of the
Plan’s first Plan Year, the last day of such Plan Year. The present value of Accrued Benefits
and the value of all account balances shall be determined on the most recent Valuation Date
which falls within a 12-month period ending on the Determination Date, and the results for
each plan included in the Aggregation Group shall aggregated based on the Determination Dates
for each plan that falls within the same calendar year.
	 
	 	 	“Employee” and “Key Employee” — shall also include beneficiaries of such an 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 Employee will be made in accordance with
Code Section 416(i)(1) and the applicable regulations and other guidance of general
applicability issued thereunder.
	 
	 	 	“Non-Key Employee” means any Participant who at any time during the Plan Year containing
the Determination Date for the Plan Year in question is not a Key Employee as defined above.
	 
	 	 	“Top Heavy Group” means the Aggregation Group if as of the Determination Date, (i) plus
(ii) exceeds sixty percent (60%) of a similar sum determined for all Employees where:

	 	(a)	 	means the present value of Accrued Benefits for Key Employees under this Plan and all
other defined benefit plans included in the Aggregation Group, and
	 
	 	(b)	 	means the aggregate of the account balances for Key Employees under all defined
contributions plans included in the Aggregation Group.

	 	 	“Valuation Date” means the date on which Accrued Benefits or account balances are valued
for purposes of this Article 10, which in the case of this Plan shall be the valuation date
used for computing the Plan’s minimum funding requirements under Section 412 of the Code
regardless of whether a valuation is performed in a given year. The present value of Accrued
Benefits under this Plan shall be computed on the basis of the interest rate and mortality
table used in the annual valuation of the Plan, subject to the following:

-38-

 

	 	(c)	 	Distributions during year ending on the valuation date. The present values of accrued
benefits and the amounts of account balances of an Employee as of the valuation 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
valuation 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 “5-year period” for “1-year period.”
	 
	 	(d)	 	Employees not performing services during year ending on the valuation date. The accrued
benefits and accounts of any individual who has not performed services for the Employer
during the I-year period ending on the determination date shall not be taken into account.

	10.5	 	COMPENSATION
	 
	 	 	For any Plan Year prior to October 1, 1989 for which the Plan is a Top Heavy Plan,
Compensation for Participants shall be limited to $200,000 for purposes of determining the
Accrued Benefit.
	 
	10.6	 	PLAN YEAR IN WHICH PLAN IS TOP HEAVY
	 
	 	 	In any Plan Year in which the Plan is top heavy, but not super top heavy, Section 6.2(b)
shall be applied by substituting 1.0 for 1.25, unless Section 10.2 is applied as though 3%
were substituted for 2% in clause (i) and percentage in clause (ii) is increased to 30%.
	 
	10.7	 	PLAN YEAR IN WHICH PLAN CEASES TO BE TOP HEAVY
	 
	 	 	In any Plan Year that the Plan ceases to be a Top Heavy Plan, the above provisions shall no
longer apply, except that the nonforfeitabte percentage of Participant’s Accrued Benefit
shall not be decreased.

ARTICLE 11

MISCELLANEOUS PROVISIONS

	11.1	 	NO CONTRACT OF EMPLOYMENT
	 
	 	 	Except as otherwise provided by law, neither the establishment of this Plan, nor any
modification hereto, nor the creation of any fund or account, nor the payment of any
benefits, will be construed as giving any Participant or other person any legal or equitable
rights against the Employer, any officer or Employee thereof, or the Trustee, except as
herein provided; and the terms of employment of any Participant will not be modified or
affected by this Plan.
	 
	11.2	 	TITLE TO ASSETS
	 
	 	 	No Participant or Beneficiary will have any right to, or any interest in, any assets of the
Trust upon separation from service with the Employer, Affiliated Employer, or Adopting
Employer, except as otherwise provided by the terms of the Plan.
	 
	11.3	 	QUALIFIED MILITARY SERVICE
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, effective December 12, 1994,
contributions, benefits and service credit with respect to qualified military service will be
provided in accordance with the requirements of Code §414(u).

-39-

 

	11.4	 	FIDUCIARIES AND BONDING
	 
	 	 	Every Fiduciary other than a bank,an insurance company, or a Fiduciary of an Employer which
has no common-law employees, will be bonded in an amount not less than 10% of the amount of
funds under such Fiduciary’s supervision, but such bond will not be less than $1,000 or more
than $500,000. The bond will provide protection to the Plan against any loss for acts of
fraud or dishonesty by a Fiduciary acting alone or in concert with others. The cost of such
bond will be an expense of either the Employer or the Trust, at the election of the Employer.
	 
	11.5	 	SEVERABILITY OF PROVISIONS
	 
	 	 	If any Plan provision is held invalid or unenforceable, such invalidity or unenforceability
will not affect any other provision of this Plan, and this Plan will be construed and
enforced as if such provision had not been included.
	 
	11.6	 	GENDER AND NUMBER
	 
	 	 	Words used in the masculine gender will be construed as though they were also used in the
feminine or neuter gender where applicable, and words used in the singular form will be
construed as though they were also used in the plural form where applicable.
	 
	11.7	 	HEADINGS AND SUBHEADINGS
	 
	 	 	Headings and subheadings are inserted for convenience of reference. They constitute no part
of this Plan and are not to be considered in its construction.
	 
	11.8	 	LEGAL ACTION
	 
	 	 	In any claim, suit or proceeding concerning the Plan and/or Trust which is brought against
the Trustee or the Administrator, this Plan and Trust will be construed and enforced
according to the laws of the state in which the Employer maintains its principal place of
business, to the extent that is not preempted by ERISA; and unless otherwise prohibited by
law, either the Employer or the Trust, in the sole discretion of the Employer, will reimburse
the Trustee and/or Administrator for all costs, attorneys fees and other expenses associated
with any such claim, suit or proceeding,

-40-

 

APPENDIX I

EARLY RETIREMENT ADJUSTMENT FACTORS

	 	 	 
	Age at Retirement Date	 	Percentage of Retirement Income Payable
	65

	 	100% 
	64

	 	95.9% plus .3416% per month between ages 64 and 65
	63

	 	86.9% plus .7500% per month between ages 63 and 64
	62

	 	78.9% plus .6667% per month between ages 62 and 63
	61

	 	71.6% plus .6083% per month between ages 61 and 62
	60

	 	65.0% plus .5500% per month between ages 60 and 61
	59

	 	59.0% plus .5000% per month between ages 59 and 60
	58

	 	54.6% plus .3667% per month between ages 58 and 59
	57

	 	50.4% plus .3500% per month between ages 57 and 58
	56

	 	46.8% plus .3000% per month between ages 56 and 57
	55

	 	43.5% plus .4417% per month between ages 55 and 56

-41-

 

IN WITNESS WHEREOF, this Plan and Trust have been executed by the Employer and the Trustee on the
day, month and year set forth on page 1 of this Agreement.

	 	 	 	 	 
	 	COLT’S DEFENSE LLC

 	 
	 	By:  	/s/
Thomas C. Moore	 
	 	 	Thomas C. Moore  	 
	 	 	Vice President Finance 	 
	 

ATTEST:

/s/
Isabelle DeFassis 

-42-exv10w8w2

Exhibit 10.8.2

FIRST AMENDMENT

TO THE

COLT DEFENSE LLC

SALARIED RETIREMENT INCOME PLAN

     WHEREAS, effective November 4, 2002, Colt Defense LLC (herein referred to as the “Employer”)
established the Colt Defense LLC Salaried Retirement Income Plan (herein referred to as the “Plan”)
in recognition of the contribution made to its successful operation by its employees and for the
exclusive benefit of its eligible employees; and

     WHEREAS, the Internal Revenue Service has requested certain amendments to the Plan, and the
Employer has agreed to make such changes; and

     WHEREAS, under the terms of the Plan, the Employer has the ability to amend the Plan;

     NOW, THEREFORE, effective as of January 1, 2005, the Employer in accordance with the
provisions of the Plan pertaining to amendments thereof, hereby amends the Plan to provide as
follows:

     1. Section 1.49, Article 1, is hereby amended through deletion of the existing Section in its
entirety, and its replacement by the following:

“1.49 YEARS OF PARTICIPATION SERVICE

The term Years of Participation Service means:

	 	(a)	 	A period of twelve consecutive months following the Employee’s Employment Commencement Date
during which he earned one thousand (1,000) Hours of Service.
	 
	 	(b)	 	If an Employee did not satisfy (a) above: one thousand (1,000) Hours of Service during any
twelve (12) month Plan Year following the Employee’s Employment Commencement Date.
	 
	 	(c)	 	An Employee who satisfies the requirements of both paragraphs (a) and (b) above shall be
credited with two (2) Years of Participation Service.
	 
	 	(d)	 	A Year of Service with other members of a controlled group or an affiliated service group
included with the Employer shall be considered only for purposes of determining Years of
Participation Service under this Section and Section 2.1.
	 
	 	(e)	 	If an Employee has not completed more than 501 or more Hours of Service with the Employer
during the applicable 12-month computation period, he shall incur a One-Year Break in Service.”

     2. Paragraph (a) of Section 2.1, Article 2 shall be amended by deleting such paragraph in its
entirety, and replacing it with the following:

 

 

	 	“(a) 	 	 Age And Service Requirements: An Employee who is a member of an Eligible class of
Employees will be eligible to enter the Plan as a Participant upon reaching Age 21 and
completing 1 Year of Participation Service.”

     3. Section 2.2, Article 2, is hereby amended through deletion of the existing Section in its
entirety, and its replacement by the following:

“2.2 ENTRY DATE

	 	(a)	 	An Employee will enter the Plan on the first day of the month coincident with or next
following the day he or she satisfies such requirements of Section 2.1(a), provided said
Employee is still employed as of such date (or if not employed on such date, as of the date
of rehire if a One-Year Break in Service has not occurred, as defined in Section 1.49.
	 
	 	(b)	 	If an Employee terminates employment, incurs a One-Year Break in Service prior to
becoming a Participant under the Plan, he shall be considered a new Employee in the event of
his subsequent reemployment by the Employer, and shall be again subject to the participation
requirements of Section 2.1.
	 
	 	(c)	 	If an Employee incurs a One-Year Break in Service prior to becoming a Participant under
the Plan but his employment has not terminated, he shall enter the Plan as soon as he
completes the requirements of Section 2.1(a).
	 
	 	(d)	 	If the number of an Employee’s consecutive One-Year Breaks in Service equals or exceeds
the greater of (A) five or (B) the aggregate number of his pre-break Years of Service, his
Years of Participation Service prior to his Break in Service shall be forfeited, and he shall
be deemed a new Employee for purposes of determining his Years of Participation Service under
the Plan.”

     4. Subparagraph (b) of Section 4.1, Article 4, is hereby amended through deletion of the
existing subparagraph in its entirety, and its replacement by the following:

	 	“(b) 	 	 For each Plan Year beginning on or after March 23, 1990, Interest Credits shall be
accumulated on the Benefit Account Balance at an annual rate equal to 6.5% credited monthly,
compounded annually.”

     5. Section 10.2, Article 10, is hereby amended through deletion of the existing Section in its
entirety, and its replacement by the following:

“10.2 MINIMUM BENEFIT

For any Plan Year during which the Plan is deemed to be a Top Heavy Plan, the Annual Accrued
Benefit of a Non-Key Employee that is payable as a life annuity at his Normal Retirement Date
shall be no less than the following:

	 	(a)	 	A benefit equal to the Non-Key Employee’s average Compensation for the 5 calendar year
period in which his Compensation is highest, times the lesser of (i) 2% multiplied by the
number of the Non-Key Employee’s years of Vesting Service, where such service was earned
while the Plan was a Top Heavy Plan and in a Plan

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	 	 	 	Year beginning after January 1, 1984, disregarding any Year of Vesting Service if the
Plan was not Top Heavy for any Plan Year ending during such Year of Vesting Service, or
(ii) 20%.
	 
	 	(b)	 	If a Non-Key Employee participates in this Plan and a defined contribution plan included
in a required aggregation group which is top heavy, the minimum benefits shall be provided
under this Plan pursuant to subsection (a) hereof,

Effective January 1, 2002, and for purposes of satisfying the minimum benefit requirements of
Code Section 416(c)(1) and the Plan, in determining years of service with the Employer, any
service with the Employer shall be disregarded to the extent that such service occurs during
a Plan Year when the Plan benefits (within the meaning of Code Section 410(b)) no Key
Employee or former Key Employee.”

     6. Section 10.6, Article 10, is hereby deleted in its entirety, and the existing
Section
10.7 shall be renumbered as Section 10.6.

     IN WITNESS WHEREOF, the Employer has caused this First Amendment to the Plan to be executed by
a duly authorized person this 21st day of April, 2005.

	 	 	 	 	 	 	 	 	 

	WITNESS	 	 	 	COLT DEFENSE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	/s/ Deneen Silvers 

	 	 	 	 	 	/s/ Carlton S. Chen 

	 	 
	 

	 	 	 	Title:	 	Secretary	 	 

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