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Exhibit 10.45    
    

 
 

INDEMNITY AGREEMENT    
    

        This Indemnity Agreement ("Agreement") is made as
of                        , 2004 by and between Jazz Semiconductor, Inc., a Delaware corporation (the "Company"),
and                        ("Indemnitee"). 

RECITALS 

        WHEREAS,
highly competent persons have become more reluctant to serve publicly-held corporations as directors or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 

        WHEREAS,
the Board of Directors of the Company (the "Board") has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing
basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and
widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it
in the future only at higher premiums and with more exclusions. At the same time, directors, officers and other persons in service to corporations or business enterprises are being increasingly
subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise
itself. The Certificate of Incorporation (the "Charter") and the Bylaws of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to
indemnification pursuant to applicable provisions of the Delaware General Corporation Law ("DGCL"). The Charter, the Bylaws and the DGCL expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with
respect to indemnification; 

        WHEREAS,
the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons; 

        WHEREAS,
the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection in the future; 

        WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 

        WHEREAS,
this Agreement is a supplement to and in furtherance of the Charter, the Bylaws of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and 

        WHEREAS,
Indemnitee does not regard the protection available under the Company's Charter, Bylaws and insurance as adequate in the present circumstances, and may not be willing to serve
as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that he be so indemnified; 

 

        NOW,
THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 

        1.    Services to the Company.    Indemnitee will serve or continue to serve as an officer,
director or key employee of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his resignation. 

        2.    Definitions.    As used in this Agreement: 

        (a)   References
to "agent" shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by
the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability
company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company. 

        (b)   The
terms "Beneficial Owner" and "Beneficial Ownership" shall have the meanings set forth in Rule 13d-3 promulgated under the Exchange Act (as defined
below) as in effect on the date hereof. 

        (c)   A
"Change in Control" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events: 

          (i)  Acquisition of Stock by Third Party.    Any Person (as defined below) is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company's then outstanding securities entitled to vote generally in
the election of directors, unless (1) the change in the relative Beneficial Ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of
outstanding shares of securities entitled to vote generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors (as defined below) and such
acquisition would not constitute a Change in Control under part (iii) of this definition; 

         (ii)  Change in Board of Directors.    Individuals who, as of the date hereof, constitute the Board, and any new
director whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two thirds of the directors then still in office who were directors on
the date hereof or whose election for nomination for election was previously so approved (collectively, the "Continuing Directors"), cease for any reason to constitute at least a majority of the
members of the Board; 

        (iii)  Corporate Transactions.    The effective date of a reorganization, merger or consolidation of the Company (a
"Business Combination"), in each case, unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities
entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then
outstanding securities of the Company entitled to vote generally in the election of directors resulting from such Business Combination (including, without limitation, a corporation which as a result
of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the securities entitled to vote generally in the election of directors; (2) no Person (excluding any corporation resulting from such Business
Combination) is the Beneficial Owner, 

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directly
or indirectly, of 15% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such corporation except to the extent
that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of the corporation resulting from such Business Combination were Continuing
Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; 

        (iv)  Liquidation.    The approval by the stockholders of the Company of a complete liquidation of the Company or an
agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company's assets, other than factoring the Company's current receivables or escrows due
(or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale, or disposition in one transaction or a series of related transactions); or 

         (v)  Other Events.    There occurs any other event of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the
Company is then subject to such reporting requirement. 

        (d)   "Corporate
Status" describes the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of the
Company or of any other Enterprise (as defined below) which such person is or was serving at the request of the Company. 

        (e)   "Delaware
Court" shall mean the Court of Chancery of the State of Delaware. 

        (f)    "Disinterested
Director" shall mean a director of the Company who is not and was not a party to the Proceeding (as defined below) in respect of which indemnification is
sought by Indemnitee. 

        (g)   "Enterprise"
shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger
to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee
is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent. 

        (h)   "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        (i)    "Expenses"
shall include attorneys' fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing
and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses in connection with prosecuting, defending, preparing to prosecute or defend,
investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding (as defined below). Expenses also shall include Expenses incurred in connection with any appeal
resulting from any Proceeding (as defined below), including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. 

        (j)    "Independent
Counsel" shall mean a law firm or a member of a law firm that is experienced in matters of corporation law and neither presently is, nor in the past five
years has been, retained to represent: (i) the Company or Indemnitee in any matter material to 

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either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements); or (ii) any other party
to the Proceeding (as defined below) giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under
this Agreement. 

        (k)   References
to "fines" shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan; references to "serving at the request of the
Company" shall include any service as a director, officer, employee, agent or fiduciary of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or
fiduciary with respect to an employee benefit plan, its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests
of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this
Agreement. 

        (l)    The
term "Person" shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act as in effect on the date hereof;  provided, however, that
"Person" shall exclude: (i) the Company; (ii) any Subsidiaries (as
defined below) of the Company; (iii) any employment benefit plan of the Company or of a Subsidiary (as defined below) of the Company or of any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of stock of the Company; and (iv) any trustee or other fiduciary holding securities under an employee
benefit plan of the Company or of a Subsidiary (as defined below) of the Company or of a corporation owned directly or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company. 

        (m)  A
"Potential Change in Control" shall be deemed to have occurred if: (i) the Company enters into an agreement or arrangement, the consummation of which would
result in the occurrence of a Change in Control; (ii) any Person or the Company publicly announces an intention to take or consider taking actions which if consummated would constitute a Change
in Control; (iii) any Person who becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 5% or more of the combined voting power of the Company's then
outstanding securities entitled to vote generally in the election of directors increases his Beneficial Ownership of such securities by 5% or more over the percentage so owned by such Person on the
date hereof; or (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 

        (n)   The
term "Proceeding" shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil (including intentional or unintentional
tort claims), criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any action (or failure to act) taken by him or of any action (or failure to act) on his part while acting as a director or officer of the Company, or by reason of
the fact that he is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise, in each case
whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement. 

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        (o)   The
term "Subsidiary," with respect to any Person, shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or
equity interest is owned, directly or indirectly, by that Person. 

        3.    Indemnity in Third-Party Proceedings.    The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee
shall be indemnified against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection
with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or
any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal
Proceeding, had no reasonable cause to believe that his conduct was unlawful. 

        4.    Indemnity in Proceedings by or in the Right of the Company.    The Company shall
indemnify and hold harmless Indemnitee in accordance with the provisions of this Section 4 if Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or
otherwise) in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall
have been finally adjudged by a court to be liable to the Company, unless and only to the extent that any court in which the Proceeding was brought or the Delaware Court shall determine upon
application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification. 

        5.    Indemnification for Expenses of a Party Who is Wholly or Partly
Successful.    Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the
merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually
and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with
each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify and hold harmless Indemnitee against all Expenses
reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

        6.    Indemnification For Expenses of a Witness.    Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified and held harmless against
all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 

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        7.    Additional Indemnification.    

        (a)   Notwithstanding
any limitation in Sections 3, 4, or 5, the Company shall indemnify and hold harmless Indemnitee if Indemnitee is a party to or threatened to be
made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement)
actually and reasonably incurred by Indemnitee in connection with the Proceeding. No indemnity shall be made under this Section 7(a) on account of Indemnitee's conduct which constitutes a
breach of Indemnitee's duty of loyalty to the Company or its stockholders or is an act or omission not in good faith or which involves intentional misconduct or a knowing violation of the law. 

        (b)   Notwithstanding
any limitation in Sections 3, 4, 5 or 7(a), the Company shall indemnify and hold harmless Indemnitee if Indemnitee is a party to or threatened to
be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement)
actually and reasonably incurred by Indemnitee in connection with the Proceeding. 

        8.    Contribution in the Event of Joint Liability.    

        (a)   To
the fullest extent permissible under applicable law, if the indemnification and hold harmless rights provided for in this Agreement are unavailable to Indemnitee in
whole or in part for any reason whatsoever, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether
for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee to contribute to such
payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee. 

        (b)   The
Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding)
unless such settlement provides for a full and final release of all claims asserted against Indemnitee. 

        (c)   The
Company hereby agrees to fully indemnify and hold harmless Indemnitee from any claims for contribution which may be brought by officers, directors or employees of
the Company other than Indemnitee who may be jointly liable with Indemnitee. 

        9.    Exclusions.    Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee: 

        (a)   for
which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess
beyond the amount actually received under any insurance policy, contract, agreement, other indemnity provision or otherwise; 

        (b)   for
an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b)
of the Exchange Act or similar provisions of state statutory law or common law; or 

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        (c)   except
as otherwise provided in Sections 14(e)-(f) hereof, prior to a Change in Control, in connection with any Proceeding (or any part of any Proceeding) initiated by
Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board
authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law. 

        10.    Advances of Expenses; Defense of Claim.    

        (a)   Notwithstanding
any provision of this Agreement to the contrary, and to the fullest extent permitted by applicable law, the Company shall advance the Expenses incurred
by Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three months) in connection with any Proceeding within ten (10) days after the receipt by the Company of
a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be
made without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement. Advances
shall include any and all reasonable Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to
support the advances claimed. The Indemnitee shall qualify for advances, to the fullest extent permitted by applicable law, solely upon the execution and delivery to the Company of an undertaking
providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company under the provisions of
this Agreement, the Charter, the Bylaws of the Company, applicable law or otherwise. This Section 10(a) shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant
to Section 9. 

        (b)   The
Company will be entitled to participate in the Proceeding at its own expense. 

        (c)   The
Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation on the
Indemnitee without the Indemnitee's prior written consent. 

        11.    Procedure for Notification and Application for Indemnification.    

        (a)   Indemnitee
agrees to notify promptly the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document
relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the
Company of any obligation which it may have to the Indemnitee under this Agreement, or otherwise. 

        (b)   Indemnitee
may deliver to the Company a written application to indemnify and hold harmless Indemnitee in accordance with this Agreement. Such application(s) may be
delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion. Following such a written application for indemnification by Indemnitee, the Indemnitee's
entitlement to indemnification shall be determined according to Section 12(a) of this Agreement. 

        12.    Procedure Upon Application for Indemnification.    

        (a)   A
determination, if required by applicable law, with respect to Indemnitee's entitlement to indemnification shall be made in the specific case by one of the following 

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methods,
which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board or (ii) by Independent Counsel
in a written opinion to the Board, a copy of which shall be delivered to Indemnitee. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is
not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with
respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys' fees and
disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 

        (b)   In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel
shall be selected as provided in this Section 12(b). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and
Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of
"Independent Counsel" as defined in Section 2 of this Agreement. If the Independent Counsel is selected by the Board, the Company shall give written notice to Indemnitee advising him of the
identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of "Independent Counsel" as defined in Section 2 of this
Agreement. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver to the Company or
to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the
objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written
objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has
determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof, no
Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the
Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Delaware Court, and the person with respect to whom
all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration
pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing). 

        (c)   The
Company agrees to pay the reasonable fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent Counsel against any and 

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all
Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 

        13.    Presumptions and Effect of Certain Proceedings.    

        (a)   In
making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(b) of this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company
(including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances
because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 

        (b)   If
the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not
have made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have
been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's
statement not materially misleading, in connection with the request for indemnification, or (ii) a final judicial determination that any or all such indemnification is expressly prohibited
under applicable law; provided, however, that such 30-day period may be extended for a
reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires
such additional time for the obtaining or evaluating of documentation and/or information relating thereto. 

        (c)   The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or
create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with
respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful. 

        (d)   For
purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of
account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel
for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected by the Enterprise. The
provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed or found to have met the applicable
standard of conduct set forth in this Agreement. 

        (e)   The
knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall
not be 

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imputed
to Indemnitee for purposes of determining the right to indemnification under this Agreement. 

        14.    Remedies of Indemnitee.    

        (a)   In
the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within thirty (30) days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to Section 5, 6, 7 or the last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the
Company of a written request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 8 of this Agreement, or (vi) payment of indemnification
pursuant to Section 3 or 4 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be
entitled to an adjudication by the Delaware Court to such indemnification, contribution or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be
conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Except as set forth herein, the provisions of Delaware law (without regard to its
conflict of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration. 

        (b)   In
the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any
judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration,
on the
merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14, Indemnitee shall be
presumed to be entitled to indemnification under this Agreement and the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case
may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 12(a) of this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences
a judicial proceeding or arbitration pursuant to this Section 14, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 10 until a final
determination is made with respect to Indemnitee's entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). 

        (c)   If
a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law. 

        (d)   The
Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions
of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. 

        (e)   The
Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten 

10

 

(10) days
after the Company's receipt of such written request) advance to Indemnitee, to the fullest extent permitted by applicable law, such Expenses which are incurred by Indemnitee in
connection with any judicial proceeding or arbitration brought by Indemnitee (i) to enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification,
advancement or contribution agreement or provision of the Charter, or the Company's Bylaws now or hereafter in effect; or (ii) for recovery or advances under any insurance policy maintained by
any person for the benefit of Indemnitee, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance, contribution or insurance recovery, as the case may
be. 

        (f)    Interest
shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies or is obliged to indemnify for the
period commencing with the date on which Indemnitee requests indemnification, contribution, reimbursement or advancement of any Expenses and ending with the date on which such payment is made to
Indemnitee by the Company. 

        15.    Establishment of Trust.    In the event of a Potential Change in Control, the Company
shall, upon written request by Indemnitee, create a "Trust" for the benefit of Indemnitee and from time to time upon written request of Indemnitee shall fund such Trust in an amount sufficient to
satisfy any and all Expenses reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, participating in or defending any Proceedings, and
any and all judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such judgments, fines
penalties and amounts paid in settlement) in connection with any and all Proceedings from time to time actually paid or claimed, reasonably anticipated or proposed to be paid. The trustee of the Trust
(the "Trustee") shall be a bank or trust company or other individual or entity chosen by the Indemnitee and reasonably acceptable to the Company. Nothing in this Section 15 shall relieve the
Company of any of its obligations under this Agreement. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by mutual agreement of the
Indemnitee and the Company or, if the Company and the Indemnitee are unable to reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement. The
terms of the Trust shall provide that, except upon the consent of both the Indemnitee and the Company, upon a Change in Control: (a) the Trust shall not be revoked or the principal thereof
invaded, without the written consent of the Indemnitee; (b) the Trustee shall advance, to the fullest extent permitted by applicable law, within two (2) business days of a request by the
Indemnitee and upon the execution and delivery to the Company of an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that
Indemnitee is not entitled to be indemnified by the Company, any and all Expenses to the Indemnitee; (c) the Trust shall continue to be funded by the Company in accordance with the funding
obligations set forth above; (d) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise; and (e) all unexpended funds in such Trust shall revert to the Company upon mutual agreement by the Indemnitee and the Company or, if the Indemnitee and the Company are unable to
reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement, that the Indemnitee has been fully indemnified under the terms of this Agreement.
The Trust shall be governed by Delaware law (without regard to its conflicts of laws rules) and the Trustee shall consent to the exclusive jurisdiction of the Delaware Court in accordance with
Section 23 of this Agreement. 

        16.    Security.    Notwithstanding anything herein to the contrary, to the extent requested
by the Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to the Indemnitee for the Company's obligations hereunder through an irrevocable 

11

 

bank
line of credit, funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee. 

        17.    Non-Exclusivity; Survival of Rights; Insurance; Subrogation.    

        (a)   The
rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the Charter, the Company's Bylaws, any agreement, a vote of
stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this
Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law, whether by
statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Charter, the Company's Bylaws or this Agreement, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

        (b)   The
DGCL, the Charter and the Company's Bylaws permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements including,
but not limited to, providing a trust fund, letter of credit, or surety bond ("Indemnification Arrangements") on behalf of Indemnitee against any liability asserted against him or incurred by or on
behalf of him or in such capacity as a director, officer, employee or agent of the Company, or arising out of his status as such, whether or not the Company would have the power to indemnify him
against such liability under the provisions of this Agreement or under the DGCL, as it may then be in effect. The purchase, establishment, and maintenance of any such Indemnification Arrangement shall
not in any way limit or affect the rights and obligations of the Company or of the Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement
by the Company and the Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto under any such Indemnification Arrangement. 

        (c)   To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, trustees, partners, managing members,
fiduciaries, employees, or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance
with its or their terms to the maximum extent of the coverage available for any such director, officer, trustee, partner, managing member, fiduciary, employee or agent under such policy or policies.
If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such
policies. 

        (d)   In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute 

12

 

all
papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

        (e)   The
Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee,
partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such
Enterprise. 

        18.    Duration of Agreement.    All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee serves as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any
other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue thereafter so long as
Indemnitee shall be subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement) by reason of
his Corporate Status, whether or not he is acting in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. 

        19.    Severability.    If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall
not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent
necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

        20.    Enforcement and Binding Effect.    

        (a)   The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve
as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer or key employee of the Company. 

        (b)   Without
limiting any of the rights of Indemnitee under the Charter or Bylaws of the Company as they may be amended from time to time, this Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof. 

        (c)   The
indemnification and advancement of expenses provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and
their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the
Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at the Company's request, and shall inure to the
benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. 

13

 

        (d)   The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to the Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place. 

        (e)   The
Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof,
and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific
performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking
or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including
temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in
the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court, and the Company hereby waives any such requirement of such a bond or undertaking. 

        21.    Modification and Waiver.    No supplement, modification or amendment of this Agreement
shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this
Agreement nor shall any waiver constitute a continuing waiver. 

        22.    Notices.    All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been
directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed: 

        (a)   If
to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide in writing to the Company. 

        (b)   If
to the Company, to: 

Jazz
Semiconductor, Inc.

4321 Jamboree Road

Newport Beach, CA 92660 

Attention:
Director of Legal Affairs 

or
to any other address as may have been furnished to Indemnitee in writing by the Company. 

        23.    Applicable Law and Consent to Jurisdiction.    This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any
arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America or any court in
any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement;
(c) appoint irrevocably, to the extent such party is not a resident of the State of Delaware, RL&F 

14

 

Service
Corp., One Rodney Square, 10th Floor, 10th and King Streets, Wilmington, Delaware 19801 as its agent in the State of Delaware as such party's agent for acceptance of legal process in
connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware; (d) waive any
objection to the laying of venue of any such action or proceeding in the Delaware Court; and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought
in the Delaware Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial. 

        24.    Identical Counterparts.    This Agreement may be executed in one or more counterparts,
each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement. 

        25.    Miscellaneous.    Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof. 

        IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written. 

	

Jazz Semiconductor, Inc.	
 	

INDEMNITEE
	

By:	
 	

    
 Shu Li,
 President and Chief Executive Officer	
 	

    
 Name:

Address:

15

QuickLinks

Exhibit 10.45

INDEMNITY AGREEMENTExhibit 10.46

 

THE CORPORATEPLAN

FOR RETIREMENTSM

 

FIDELITY
BASIC PLAN DOCUMENT NO. 02

 

 

	
  The CORPORATEplan for
  RetirementSM

  	
   

  	
  Basic Plan Document 02

  
	
   

  	
   

  	
  10/9/2003

  

 

©2003 FMR Corp.

All rights reserved.

 

 

THE CORPORATEPLAN

FOR RETIREMENTSM

 

	
   

  	
  Preamble.

  	
  1

  
	
   

  	
  Article 1. Adoption Agreement.

  	
  1

  
	
   

  	
  Article 2. Definitions.

  	
  1

  
	
  2.01.

  	
  Definitions

  	
  1

  
	
  2.02.

  	
  Pronouns

  	
  11

  
	
  2.03.

  	
  Special Effective Dates

  	
  11

  
	
   

  	
  Article 3. Service.

  	
  11

  
	
  3.01.

  	
  Crediting of Eligibility
  Service

  	
  11

  
	
  3.02.

  	
  Re-Crediting of Eligibility
  Service Following Termination of Employment

  	
  12

  
	
  3.03.

  	
  Crediting of Vesting Service

  	
  12

  
	
  3.04.

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

  	
  12

  
	
  3.05.

  	
  Service with Predecessor
  Employer

  	
  12

  
	
  3.06.

  	
  Change in Service Crediting

  	
  13

  
	
   

  	
  Article 4. Participation.

  	
  13

  
	
  4.01.

  	
  Date of Participation

  	
  13

  
	
  4.02.

  	
  Transfers Out of Covered
  Employment

  	
  13

  
	
  4.03.

  	
  Transfers Into Covered
  Employment

  	
  14

  
	
  4.04.

  	
  Resumption of Participation
  Following Reemployment

  	
  14

  
	
   

  	
  Article 5. Contributions.

  	
  14

  
	
  5.01.

  	
  Contributions Subject to
  Limitations

  	
  14

  
	
  5.02.

  	
  Compensation Taken into
  Account in Determining Contributions

  	
  14

  
	
  5.03.

  	
  Deferral Contributions

  	
  15

  
	
  5.04.

  	
  Employee Contributions

  	
  15

  
	
  5.05.

  	
  No Deductible Employee
  Contributions

  	
  15

  
	
  5.06.

  	
  Rollover Contributions

  	
  15

  
	
  5.07.

  	
  Qualified Nonelective
  Employer Contributions

  	
  16

  
	
  5.08.

  	
  Matching Employer Contributions

  	
  18

  
	
  5.09.

  	
  Qualified Matching Employer
  Contributions

  	
  18

  
	
  5.10.

  	
  Nonelective Employer
  Contributions

  	
  18

  
	
  5.11.

  	
  Vested Interest in Contributions

  	
  20

  
	
  5.12.

  	
  Time for Making
  Contributions

  	
  20

  
	
  5.13.

  	
  Return of Employer
  Contributions

  	
  21

  
	
   

  	
  Article 6. Limitations on Contributions.

  	
  21

  
	
  6.01.

  	
  Special Definitions

  	
  21

  
	
  6.02.

  	
  Code
  Section 402(g) Limit on Deferral Contributions

  	
  28

  
	
  6.03.

  	
  Additional Limit on Deferral
  Contributions

  	
  28

  
	
  6.04.

  	
  Allocation and Distribution
  of “Excess Contributions”

  	
  29

  
	
  6.05.

  	
  Reductions in Deferral
  Contributions to Meet Code Requirements

  	
  30

  
	
  6.06.

  	
  Limit on Matching Employer
  Contributions and Employee Contributions

  	
  30

  
	
  6.07.

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

  	
  31

  
	
  6.08.

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

  	
  31

  
	
  6.09.

  	
  Income or Loss on Distributable
  Contributions

  	
  32

  
	
  6.10.

  	
  Deemed
  Satisfaction of “ADP” Test

  	
  32

  

 

i

 

	
  6.11.

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

  	
  33

  
	
  6.12.

  	
  Code
  Section 415 Limitations

  	
  34

  
	
   

  	
  Article 7.
  Participants’ Accounts.

  	
  37

  
	
  7.01.

  	
  Individual Accounts

  	
  37

  
	
  7.02.

  	
  Valuation of Accounts

  	
  37

  
	
   

  	
  Article 8.
  Investment of Contributions.

  	
  37

  
	
  8.01.

  	
  Manner of Investment

  	
  37

  
	
  8.02.

  	
  Investment Decisions

  	
  38

  
	
  8.03.

  	
  Participant
  Directions to Trustee

  	
  39

  
	
   

  	
  Article 9.
  Participant Loans.

  	
  39

  
	
  9.01.

  	
  Special Definitions

  	
  39

  
	
  9.02.

  	
  Participant Loans

  	
  39

  
	
  9.03.

  	
  Separate Loan
  Procedures

  	
  40

  
	
  9.04.

  	
  Availability of Loans

  	
  40

  
	
  9.05.

  	
  Limitation on Loan
  Amount

  	
  40

  
	
  9.06.

  	
  Interest Rate

  	
  40

  
	
  9.07.

  	
  Level Amortization

  	
  40

  
	
  9.08.

  	
  Security

  	
  40

  
	
  9.09.

  	
  Transfer and
  Distribution of Loan Amounts from Permissible Investments

  	
  41

  
	
  9.10.

  	
  Default

  	
  41

  
	
  9.11.

  	
  Effect of Termination
  Where Participant has Outstanding Loan Balance

  	
  41

  
	
  9.12.

  	
  Deemed Distributions Under
  Code Section 72(p)

  	
  41

  
	
  9.13.

  	
  Determination of
  Account Value Upon Distribution Where Plan Loan is Outstanding

  	
  42

  
	
   

  	
  Article 10. In-Service
  Withdrawals.

  	
  42

  
	
  10.01.

  	
  Availability of
  In-Service Withdrawals

  	
  42

  
	
  10.02.

  	
  Withdrawal of Employee
  Contributions

  	
  42

  
	
  10.03.

  	
  Withdrawal of Rollover
  Contributions

  	
  42

  
	
  10.04.

  	
  Age 59 1/2 Withdrawals

  	
  43

  
	
  10.05.

  	
  Hardship Withdrawals

  	
  43

  
	
  10.06.

  	
  Preservation of Prior
  Plan In-Service Withdrawal Rules

  	
  44

  
	
  10.07.

  	
  Restrictions on
  In-Service Withdrawals

  	
  45

  
	
  10.08.

  	
  Distribution of
  Withdrawal Amounts

  	
  45

  
	
   

  	
  Article 11. Right to
  Benefits.

  	
  45

  
	
  11.01.

  	
  Normal or Early
  Retirement

  	
  45

  
	
  11.02.

  	
  Late Retirement

  	
  46

  
	
  11.03.

  	
  Disability Retirement

  	
  46

  
	
  11.04.

  	
  Death

  	
  46

  
	
  11.05.

  	
  Other Termination of
  Employment

  	
  46

  
	
  11.06.

  	
  Application for Distribution

  	
  47

  
	
  11.07.

  	
  Application of Vesting
  Schedule Following Partial Distribution

  	
  47

  
	
  11.08.

  	
  Forfeitures

  	
  47

  
	
  11.09.

  	
  Application of Forfeitures

  	
  48

  
	
  11.10.

  	
  Reinstatement of Forfeitures

  	
  48

  
	
  11.11.

  	
  Adjustment for
  Investment Experience

  	
  49

  
	
   

  	
  Article 12.
  Distributions.

  	
  49

  
	
  12.01.

  	
  Restrictions on
  Distributions

  	
  49

  
	
  12.02.

  	
  Timing of
  Distribution Following Retirement or Termination of Employment

  	
  49

  

 

ii

 

	
  12.03.

  	
  Participant Consent
  to Distribution

  	
  49

  
	
  12.04.

  	
  Required Commencement
  of Distribution to Participants

  	
  50

  
	
  12.05.

  	
  Required Commencement
  of Distribution to Beneficiaries

  	
  50

  
	
  12.06.

  	
  Whereabouts of
  Participants and Beneficiaries

  	
  51

  
	
   

  	
  Article 13. Form of
  Distribution.

  	
  52

  
	
  13.01.

  	
  Normal
  Form of Distribution Under Profit Sharing Plan

  	
  52

  
	
  13.02.

  	
  Cash Out Of Small
  Accounts

  	
  52

  
	
  13.03.

  	
  Minimum
  Distributions

  	
  53

  
	
  13.04.

  	
  Direct Rollovers

  	
  54

  
	
  13.05.

  	
  Notice Regarding
  Timing and Form of Distribution

  	
  54

  
	
  13.06.

  	
  Determination
  of Method of Distribution

  	
  55

  
	
  13.07.

  	
  Notice to Trustee

  	
  55

  
	
   

  	
  Article 14.
  Superseding Annuity Distribution Provisions.

  	
  55

  
	
  14.01.

  	
  Special Definitions

  	
  55

  
	
  14.02.

  	
  Applicability

  	
  56

  
	
  14.03.

  	
  Annuity Form of
  Payment

  	
  56

  
	
  14.04.

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

  	
  57

  
	
  14.05.

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

  	
  57

  
	
  14.06.

  	
  Spouse’s Consent to
  Waiver

  	
  58

  
	
  14.07.

  	
  Notice Regarding
  “Qualified Joint and Survivor Annuity”

  	
  58

  
	
  14.08.

  	
  Notice Regarding “Qualified Preretirement
  Survivor Annuity”

  	
  59

  
	
  14.09.

  	
  Former Spouse

  	
  59

  
	
   

  	
  Article 15.
  Top-Heavy Provisions.

  	
  59

  
	
  15.01.

  	
  Definitions

  	
  59

  
	
  15.02.

  	
  Application

  	
  61

  
	
  15.03.

  	
  Minimum Contribution

  	
  61

  
	
  15.04.

  	
  Modification of Allocation Provisions to
  Meet Minimum Contribution Requirements

  	
  62

  
	
  15.05.

  	
  Adjustment to the Limitation on
  Contributions and Benefits

  	
  64

  
	
  15.06.

  	
  Accelerated Vesting

  	
  64

  
	
  15.07.

  	
  Exclusion of Collectively-Bargained
  Employees

  	
  64

  
	
   

  	
  Article 16.
  Amendment and Termination.

  	
  64

  
	
  16.01.

  	
  Amendments by the Employer that do Not
  Affect Prototype Status

  	
  64

  
	
  16.02.

  	
  Amendments by the Employer that Affect
  Prototype Status

  	
  65

  
	
  16.03.

  	
  Amendment by the Mass Submitter Sponsor
  and the Prototype Sponsor

  	
  65

  
	
  16.04.

  	
  Amendments Affecting Vested and/or
  Accrued Benefits

  	
  65

  
	
  16.05.

  	
  Retroactive Amendments

  	
  66

  
	
  16.06.

  	
  Termination

  	
  66

  
	
  16.07.

  	
  Distribution upon Termination of the Plan

  	
  66

  
	
  16.08.

  	
  Merger or Consolidation of Plan; Transfer
  of Plan Assets

  	
  67

  
	
   

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

  	
  67

  
	
  17.01.

  	
  Amendment and Continuation of Prior Plan

  	
  67

  
	
  17.02.

  	
  Transfer of Funds from an Existing Plan

  	
  68

  
	
  17.03.

  	
  Acceptance of Assets by Trustee

  	
  69

  
	
  17.04.

  	
  Transfer of Assets from Trust

  	
  69

  
	
   

  	
  Article 18. Miscellaneous.

  	
  71

  
	
  18.01.

  	
  Communication to Participants

  	
  71

  
	
  18.02.

  	
  Limitation of Rights

  	
  71

  
	
  18.03.

  	
  Nonalienability of Benefits

  	
  71

  

 

iii

 

	
  18.04.

  	
  Qualified Domestic Relations Orders
  Procedures

  	
  71

  
	
  18.05.

  	
  Additional Rules for Paired Plans

  	
  72

  
	
  18.06.

  	
  Application of Plan Provisions in
  Multiple Employer Plans

  	
  72

  
	
  18.07.

  	
  Veterans Reemployment Rights

  	
  73

  
	
  18.08.

  	
  Facility of Payment

  	
  73

  
	
  18.09.

  	
  Information between Employer and Trustee

  	
  73

  
	
  18.10.

  	
  Effect of Failure to Qualify Under Code

  	
  73

  
	
  18.11.

  	
  Directions, Notices and Disclosure

  	
  73

  
	
  18.12.

  	
  Governing Law

  	
  74

  
	
   

  	
  Article 19. Plan Administration.

  	
  74

  
	
  19.01.

  	
  Powers and Responsibilities of the
  Administrator

  	
  74

  
	
  19.02.

  	
  Nondiscriminatory Exercise of Authority

  	
  74

  
	
  19.03.

  	
  Claims and Review Procedures

  	
  74

  
	
  19.04.

  	
  Named Fiduciary

  	
  75

  
	
  19.05.

  	
  Costs of Administration

  	
  75

  
	
   

  	
  Article 20. Trust Agreement.

  	
  75

  
	
  20.01.

  	
  Acceptance of Trust Responsibilities

  	
  75

  
	
  20.02.

  	
  Establishment of Trust Fund

  	
  75

  
	
  20.03.

  	
  Exclusive Benefit

  	
  76

  
	
  20.04.

  	
  Powers of Trustee

  	
  76

  
	
  20.05.

  	
  Accounts

  	
  77

  
	
  20.06.

  	
  Approval of Accounts

  	
  77

  
	
  20.07.

  	
  Distribution from Trust Fund

  	
  78

  
	
  20.08.

  	
  Transfer of Amounts from Qualified Plan

  	
  78

  
	
  20.09.

  	
  Transfer of Assets from Trust

  	
  78

  
	
  20.10.

  	
  Separate Trust or Fund for Existing Plan
  Assets

  	
  78

  
	
  20.11.

  	
  Self-Directed Brokerage Option

  	
  79

  
	
  20.12.

  	
  Employer Stock Investment Option

  	
  80

  
	
  20.13.

  	
  Voting; Delivery of Information

  	
  85

  
	
  20.14.

  	
  Compensation and Expenses of Trustee

  	
  86

  
	
  20.15.

  	
  Reliance by Trustee on Other Persons

  	
  86

  
	
  20.16.

  	
  Indemnification by Employer

  	
  86

  
	
  20.17.

  	
  Consultation by Trustee with Counsel

  	
  86

  
	
  20.18.

  	
  Persons Dealing with the Trustee

  	
  87

  
	
  20.19.

  	
  Resignation or Removal of Trustee

  	
  87

  
	
  20.20.

  	
  Fiscal Year of the Trust

  	
  87

  
	
  20.21.

  	
  Discharge of Duties by Fiduciaries

  	
  87

  
	
  20.22.

  	
  Amendment

  	
  87

  
	
  20.23.

  	
  Plan Termination

  	
  88

  
	
  20.24.

  	
  Permitted Reversion of Funds to Employer

  	
  88

  
	
  20.25.

  	
  Governing Law

  	
  88

  

 

iv

 

Preamble.

 

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

 

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

 

Article 1. Adoption Agreement.

 

Article 2. Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

Notwithstanding any other provision of this Subsection to the
contrary, the Employer may elect to credit Hours of Service in accordance with
any of the equivalencies set forth in paragraphs (d), (e), or (f) of
Department of Labor Regulations Section 2530.200b-3.

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

(ss)  “Required
Beginning Date” means:

 

(1) 
for a Participant who is not a five percent owner, April 1 of the calendar
year following the calendar year in which occurs the later of (i) the
Participant’s retirement or (ii) the Participant’s attainment of age 70 1/2; provided, however, that a Participant may
elect to have his Required Beginning Date determined without regard to the
provisions of clause (i).

 

(2) 
for a Participant who is a five percent owner, April 1 of the calendar
year following the calendar year in which the Participant attains age 70 1/2.

 

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

 

For purposes of this Subsection 2.01(ss), a Participant is treated
as a five percent owner if such Participant is a five percent owner as defined
in Code Section 416(i) (determined in accordance with Code Section 416
but without regard to whether the Plan is top-heavy) at any time during the
Plan Year ending with or within the calendar year in which such owner attains
age 70 1/2.

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 3. Service.

 

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

 

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

 

11

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

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

 

Article 4. Participation.

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

Article 5. Contributions.

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

Notwithstanding the
foregoing, if in any Plan Year an eligible Active Participant has reached the
“cumulative permitted disparity limit”, such eligible Active Participant shall
receive an allocation under this

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

 

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

 

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

 

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

 

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

 

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

 

19

 

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

 

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

 

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

 

(a)  his Deferral Contributions Account;

 

(b)  his Qualified Nonelective Contributions
Account;

 

(c)  his Qualified Matching Employer Contributions
Account;

 

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

 

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

 

(f)  his Rollover Contributions Account;

 

(g)  his Employee Contributions Account; and

 

(h)  his deductible Employee Contributions
Account.

 

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

 

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

 

20

 

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

 

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

 

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

 

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

 

Article 6. Limitations on Contributions.

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)  “Contribution
percentage amounts” mean:

 

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

 

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

 

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

 

22

 

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

 

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

 

(5)  any Deferral Contributions; and

 

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

 

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

 

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

 

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

 

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

 

(9)  all Deferral Contributions.

 

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

 

23

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

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

 

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

 

(1)  The aggregate “contribution percentage
amounts” actually taken into account in computing the average “contribution
percentages” of “eligible participants” who are Highly Compensated Employees
for such Plan Year, over

 

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

 

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

 

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

 

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

 

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

 

25

 

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

 

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

 

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

 

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

 

(p)  “Includable
contributions” mean:

 

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

 

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

 

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

 

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

 

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

 

26

 

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

 

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

 

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

 

(6)  all Qualified Matching Employer Contributions.

 

(q)  “Individual
medical benefit account” means an individual medical benefit account
as defined in Code Section 415(1)(2).

 

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

 

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

 

(s)  “Simplified
employee pension” means a simplified employee pension as defined in
Code Section 408(k).

 

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

 

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

 

27

 

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

 

(u)  “Testing
year” means

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

28

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

29

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

30

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

31

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

32

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

33

 

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

 

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

 

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

 

(a)  Employer Maintains Single Plan:  If the “415 employer” does not maintain any
other qualified defined contribution plan or any “welfare benefit fund”,
“individual medical benefit account”, or “simplified employee pension” in
addition to the Plan, the provisions of this Subsection 6.12(a) shall apply.

 

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

 

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

 

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

 

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

 

34

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

35

 

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

 

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

 

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

 

(B)  any other limitation contained in the Plan.

 

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

 

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

 

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

 

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

 

36

 

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

 

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

 

(d)  Adjustment to Compensation:  Compensation for purposes of this Section
6.12 shall include amounts that are not includable in the gross income of the
Participant under a salary reduction agreement by reason of the application of
Code Section 125,

132(f)(4), 402(e)(3), 402(h), or 403(b).

 

Article 7. Participants’ Accounts.

 

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

 

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

 

Article 8. Investment of Contributions.

 

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

 

37

 

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

 

8.02. Investment Decisions. Investments shall be directed by the Employer
or by each Participant or both, in accordance with the Employer’s election in
Subsection 1.23 of the Adoption Agreement. Pursuant to Section 20.04, the
Trustee shall have no discretion or authority with respect to the investment of
the Trust Fund; however, an affiliate of the Trustee may exercise investment
management authority in accordance with Subsection (e) below.

 

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

 

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

 

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

 

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

 

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

 

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

 

38

 

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

 

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

 

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

 

Article 9. Participant Loans.

 

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

 

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

 

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

 

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

 

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

 

39

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

40

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

41

 

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

 

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

 

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

 

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

 

Any loan that was deemed distributed prior to the date the provisions
of this Section 9.12 are effective shall be administered in accordance with the
provisions of this Section 9.12 to the extent such administration is consistent
with the transition rules in Q & A

21(c)(2) of Section 1.72(p)-1 of the Proposed Treasury Regulations.

 

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

 

Article 10. In-Service Withdrawals.

 

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

 

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

 

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

 

42

 

10.04. Age
59 1/2  Withdrawals.  If so
provided by the Employer in Subsection 1.18(b) or the Protected In-Service
Withdrawals Addendum to the Adoption Agreement, a Participant who continues in
employment as an Employee and who has attained the age of 59 1/2  is
permitted to withdraw upon request all or any portion of the Accounts specified
by the Employer in Subsection 1.18(b) or the Protected In-Service Withdrawals
Addendum to the Adoption Agreement, as applicable.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

43

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

44

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 11. Right to Benefits.

 

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

 

45

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

46

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

47

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

48

 

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

 

Article 12. Distributions.

 

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

 

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

 

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

 

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

 

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

 

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

 

49

 

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

 

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

 

Neither the consent of the
Participant nor the Participant’s spouse shall be required to the extent that a
distribution is required to satisfy Code Section 401(a)(9) or Code Section 415.
In addition, upon termination of the Plan if it does not offer an annuity
option (purchased from a commercial provider) and if the Employer or any
Related Employer does not maintain another defined contribution plan (other
than an employee stock ownership plan as defined in Code Section 4975(e)(7))
the Participant’s Account shall, without the Participant’s consent, be
distributed to the Participant. However, if any Related Employer maintains
another defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)) then the Participant’s Account shall be
transferred, without the Participant’s consent, to the other plan if the
Participant does not consent to an immediate distribution.

 

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

 

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

 

(b)  the Participant’s Required Beginning Date.

 

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

 

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

 

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

 

50

 

(b)                       If the Beneficiary is the Participant’s
spouse, the later of (i) the end of the first calendar year beginning after the
Participant’s death or (ii) the end of the calendar year in which the
Participant would have attained age 70 1/2.

 

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

 

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

 

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

 

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

 

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

 

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

 

51

 

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

 

Article 13. Form of Distribution.

 

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

 

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

 

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

 

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

 

52

 

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

 

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

 

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

 

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

 

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

 

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

 

53

 

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

 

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

 

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

 

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

 

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

 

(c)  “Eligible rollover distribution” means any distribution
of all or any portion of the balance to the credit of the “distributee”, except
that an “eligible rollover distribution” does not include the following:

 

(1)  any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the “distributee” or the joint lives (or
joint life expectancies) of the “distributee” and the “distributee’s”
designated beneficiary, or for a specified period of ten years or more;

 

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

 

(3)  the portion of any distribution that is not
includable in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities);

 

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

 

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

 

54

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 14. Superseding Annuity Distribution Provisions.

 

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

 

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

 

55

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

56

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

57

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

58

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 15. Top-Heavy Provisions.

 

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

 

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

 

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

 

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

 

59

 

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

 

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

 

(e)  “Required aggregation group” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)  “Top-heavy ratio” means:

 

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

 

60

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

 

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

 

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

 

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

 

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

 

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

 

61

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

62

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

63

 

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

 

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

 

(a)  The Employer contributions for such Plan Year
made on behalf of each eligible Active Participant, as determined under
Section 15.03, who is not a “key employee” and who is a participant in a
defined benefit plan maintained by the Employer or a Related Employer is not
less than 7 1/2  percent of such eligible Active Participant’s
Compensation.

 

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

 

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

 

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

 

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

 

Article 16. Amendment and
Termination.

 

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

 

64

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

65

 

 

 

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

66

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

67

 

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

 

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

 

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

 

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

 

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

 

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

 

68

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

69

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

70

 

Article 18. Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

71

 

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

 

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

 

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

 

18.05. Additional Rules for Paired Plans.  If
the Employer has adopted both a money purchase pension plan and a profit
sharing plan under this Basic Plan Document which are to be considered paired
plans, the elections in Section 1.04 of the Adoption Agreement must be
identical with respect to both plans. When the paired plans are “top-heavy
plans”, as defined in

Subsection 15.01(f), or are deemed to be “top-heavy plans”, the money
purchase pension plan shall provide the minimum contribution required under
Section 15.03, unless contributions under the money purchase pension plan
are frozen.

 

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

 

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

 

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

 

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

 

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

 

72

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

73

 

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

 

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

 

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

 

Article 19. Plan Administration.

 

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

 

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

 

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

 

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

 

74

 

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

 

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

 

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

 

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

 

Article 20. Trust Agreement.

 

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

 

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

 

75

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

76

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

77

 

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

 

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

 

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

 

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

 

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

 

78

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

79

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

80

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

81

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

82

 

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

 

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

 

(1)  Voting.

 

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

 

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

 

83

 

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

 

(2)  Tender
Offers.

 

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

 

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

 

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

 

84

 

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

 

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

 

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

 

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

 

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

 

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

 

85

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

86

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

87

 

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

 

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

 

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

 

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

 

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

 

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

 

88

 

ADDENDUM

 

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

 

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

 

2003 FMR Corp.

All rights reserved.

 

1

 

The CORPORATEplan for RetirementSM

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Amendments for Fidelity Basic Plan Document No. 02

 

PREAMBLE

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(b) 
Catch-up Contributions.

 

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

 

2003 FMR Corp.

All rights reserved.

 

1

 

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

 

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

 

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

Section 1.414(v)-1(b)(2)(i).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)          Maximum Annual Additions for Limitation Years
Beginning After December 31, 2001.

Notwithstanding
anything herein to the contrary, this subsection (e) shall be
effective for Limitation

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

10.         Section 10.05(b)(2) is hereby
amended by replacing the semicolon with a period and adding the following to
the end thereof:

 

Notwithstanding
anything herein to the contrary, the rule in this Section 10.05(b)(2) shall
be applied to a Participant who receives a distribution after December 31,
2001, on account of hardship, by substituting the phrase ‘the

6-month period’ for the phrase ‘the 12-month period’.

 

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

 

Effective
for calendar years beginning before January 1, 2002, for a Participant who
received a hardship distribution before January 1, 2001,

 

12.         The existing text of Section 11.05 is
hereby redesignated as Section 11.05(a), and a new Section 11.05(b) is
hereby added to read as follows:

 

(b)          Vesting of Matching Employer
Contributions.  Notwithstanding anything herein to the
contrary,
the vesting schedule elected by the Employer in Section (d)(1) of
the EGTRRA Amendments Addendum to the Adoption Agreement shall apply to all
accrued benefits derived from Matching Employer Contributions for Participants
who complete an Hour of Service in a Plan Year beginning after December 31,
2001, except as otherwise elected by the Employer in Section (d)(2) or
Section (d)(3) of the EGTRRA Amendments Addendum to the Adoption Agreement.
With respect to Participants covered by a collective bargaining agreement, the
vesting schedule elected in Section (d)(1) of the EGTRRA
Amendments Addendum to the Adoption Agreement shall take effect on a later date
if so elected in Section (d)(2). If so elected in Section (d)(3) of
the EGTRRA Amendments Addendum to the Adoption Agreement, the vesting schedule elected
in Section (d)(1) shall apply only to the accrued benefits derived
from Matching Employer Contributions made with respect to Plan Years beginning
after December 31, 2001 (or such later date as may be provided in Section (d)(2) for
Participants covered by a collective bargaining agreement).

 

13.         The existing text of Section 12.01 is
hereby redesignated as Section 12.01(a), current subsections (a), (b), and
(c) thereof are redesignated as paragraphs (1), (2), and (3),
respectively, and the first sentence thereof is replaced with the following:

 

Subject
to the application of Section 12.01(b), a Participant or his Beneficiary
may not receive a distribution from his Deferral Contributions, Qualified
Nonelective Employer Contributions, Qualified Matching Employer Contributions,
safe harbor Matching Employer Contributions or safe harbor Nonelective Employer
Contributions Accounts earlier than upon the Participant’s separation from
service with the Employer and all Related Employers, death, or disability,
except as otherwise provided in Article 10 or Section 12.04.

 

3

 

14.         Section 12.01 is hereby amended by
adding a new subsection (b) to the end thereof:

 

(b) 
If elected by the Employer in Section (f) of the EGTRRA Amendments
Addendum to the Adoption Agreement, notwithstanding subsection (a) of
this Section 12.01, a Participant, or his Beneficiary, may receive a
distribution after December 31, 2001 (or such later date as specified
therein), from his Deferral Contributions, Qualified Nonelective Employer
Contributions, Qualified Matching Employer Contributions, safe harbor Matching
Employer Contributions or safe harbor Nonelective Employer Contributions
Accounts on account of the Participant’s severance from employment occurring
after the dates specified in Section (f) of the EGTRRA Amendments
Addendum to the Adoption Agreement.

 

15.         Section 13.04 is hereby amended by
adding the following paragraph to the end thereof:

 

Notwithstanding
anything herein to the contrary, the following provisions shall apply to
distributions made after December 31, 2001:

 

(i)                                     Modification of definition of eligible
retirement plan.  For purposes of this Section 13.04, an ‘eligible
retirement plan’ shall also mean an annuity contract described in Code Section 403(b) and
an eligible deferred compensation plan under Code Section 457(b) that
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from this Plan.
The definition of ‘eligible retirement plan’ shall also apply in the case of a
distribution to a surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined in Code Section 414(p).

 

(ii)                                  Modification of definition of eligible
rollover distribution to exclude hardship distributions.  For
purposes of this Section 13.04, any amount that is distributed on account
of hardship shall not be an ‘eligible rollover distribution’ and the ‘distributee’
may not elect to have any portion of such a distribution paid directly to an ‘eligible
retirement plan.’

 

(iii)                               Modification of definition of eligible
rollover distribution to include after-tax Employee Contributions.  For
purposes of this Section 13.04, a portion of a distribution shall not fail
to be an “eligible rollover distribution” merely because the portion consists
of after-tax Employee Contributions which are not includible in gross income.
However, such portion may be transferred only to an individual retirement
account or annuity described in Code Section 408(a) or (b), or to a
qualified defined contribution plan described in Code Section 401(a) or
403(a) that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so
includible.

 

16.         Article 15 is hereby amended by adding a
new Section 15.08 at the end thereof as follows:

 

15.08. Modification of Top-Heavy Provisions. 
Notwithstanding anything herein to the contrary, this Section 15.08
shall apply for purposes of determining whether the Plan is a top-heavy plan
under Code Section 416(g) for Plan Years beginning after December 31,
2001, and whether the Plan satisfies the minimum benefits requirements of Code Section 416(c) for
such years.  This Section modifies
the rules in this Article 15 of the Plan for Plan Years beginning
after December 31, 2001.

 

(a) 
Determination of top-heavy status.

 

(1)  Key employee. Key employee means any Employee or
former Employee (including any deceased Employee) who at any time during the Plan Year
that includes the determination date was an officer of the Employer having
annual compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002), a 5-percent owner of the
Employer, or a 1-percent owner of the Employer having annual compensation of
more than $150,000. For this purpose, annual compensation means compensation
within the meaning of Code Section 415(c)(3). The determination of who is
a key

 

4

 

employee
will be made in accordance with Code Section 416(i)(1) and the
applicable regulations and other guidance of general applicability issued
thereunder.

 

(2) Determination of present values and amounts. This Section 15.08(a)(2) shall
apply for purposes of determining the present values of accrued benefits and
the amounts of account balances of Employees as of the determination date.

 

(A) Distributions during year ending on the determination date.
The present values of accrued benefits and the amounts of account balances of
an Employee as of the determination date shall be increased by the
distributions made with respect to the Employee under the Plan and any plan
aggregated with the Plan under Code Section 416(g)(2) during the 1-year
period ending on the determination date. The preceding sentence shall also
apply to distributions under a terminated plan which, had it not been
terminated, would have been aggregated with the Plan under Code Section 416(g)(2)(A)(i).
In the case of a distribution made for a reason other than separation from
service, death, or disability, this provision shall be applied by substituting
the phrase “5-year period” for the phrase “1-year period.”

 

(B) Employees not performing services during year ending on the
determination date. The accrued benefits and accounts of any individual who
has not performed services for the Employer during the 1-year period ending on
the determination date shall not be taken into account.

 

(b)
 Minimum benefits.

 

(1) Matching contributions. 
Matching Employer Contributions shall be taken into account for purposes
of satisfying the minimum contribution requirements of Code Section 416(c)(2) and
the Plan.  The preceding sentence shall
apply with respect to Matching Employer Contributions under the Plan or, if the
Plan provides that the minimum contribution requirement shall be met in another
plan, such other plan.  Matching Employer
Contributions that are used to satisfy the minimum contribution requirements
shall be treated as matching contributions for purposes of the actual
contribution percentage test and other requirements of Code Section 401(m).

 

(2) Contributions under other plans.  The Employer may provide in the Adoption
Agreement that the minimum benefit requirement shall be met in another plan
(including another plan that consists solely of a cash or deferred arrangement
which meets the requirements of Code Section 401(k)(12) and matching
contributions with respect to which the requirements of Code Section 401(m)(11)
are met).

 

(c) 
Other Modifications.  The
top-heavy requirements of Code Section 416 and this Article 15 shall
not apply in any year beginning after December 31, 2001, in which the Plan
consists solely of a cash or deferred arrangement which meets the requirements
of Code Section 401(k)(12) and Matching Employer Contributions with
respect to which the requirements of Code Section 401(m)(11) are met.

 

5

 

ADDENDUM

 

IRS Model Amendment for Final and Temporary
Regulations

Under Internal Revenue Code Section 401(a)(9)

 

Section 1.  General Rules

 

1.1         Effective Date.  The provisions of this addendum will apply
for purposes of determining required minimum distributions for calendar years
beginning with the 2003 calendar year.

 

1.2         Precedence. 
The requirements of this addendum will take precedence over any
inconsistent provisions of the Plan.

 

1.3         Requirements of Treasury Regulations
Incorporated.  All distributions required
under this addendum will be determined and made in accordance with the Treasury
regulations under section 401(a)(9) of the Internal Revenue Code.

 

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

 

Section 2.  Time and Manner of Distribution.

 

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

 

2.2         Death of Participant Before Distributions
Begin.  If the Participant dies before
distributions begin, the Participant’s entire interest will be distributed, or
begin to be distributed, no later than as follows:

 

(a)          If the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary, then, except as otherwise elected
under section 6, distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70 1⁄2, if later.

 

(b)         If the Participant’s surviving spouse is not
the Participant’s sole designated Beneficiary, then, except as otherwise
elected under section 6, distributions to the designated Beneficiary will
begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died.

 

(c)          If there is no designated Beneficiary as of September 30
of the year following the year of the Participant’s death, the Participant’s
entire interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

 

(d)         If the Participant’s surviving spouse is the
Participant’s sole designated Beneficiary and the surviving spouse dies after
the Participant but before distributions to the surviving spouse begin, this section 2.2,
other than section 2.2(a), will apply as if the surviving spouse were the
Participant.

 

For
purposes of this section 2.2 and section 4, unless section 2.2(d) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date.  If section 2.2(d) applies,
distributions are considered to begin on the date distributions are required to
begin to the surviving spouse under section 2.2(a).  If distributions under an annuity purchased
from an insurance company irrevocably commence to the Participant before the
Participant’s Required Beginning Date (or to the Participant’s surviving spouse
before the date distributions are required to begin to the surviving spouse
under section 2.2(a)), the date distributions are considered to begin is
the date distributions actually commence.

 

2.3         Forms of Distribution.  Unless the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company or in
a single sum on or before the Required Beginning Date, as of the first
distribution calendar year distributions will be made in accordance with
sections 3 and 4 of this addendum.  If
the Participant’s interest is distributed in the form of an annuity purchased
from an insurance company, distributions thereunder will be made in

 

© 2003 FMR Corp.

All rights reserved.

 

1

 

accordance
with the requirements of section 401(a)(9) of the Code and the
Treasury regulations.

 

Section 3.  Required Minimum Distributions During
Participant’s Lifetime.

 

3.1         Amount of Required Minimum Distribution For
Each Distribution Calendar Year.  During
the Participant’s lifetime, the minimum amount that will be distributed for
each distribution calendar year is the lesser of:

 

(a)          the quotient obtained by dividing the
Participant’s account balance by the distribution period in the Uniform
Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Participant’s age as of the Participant’s birthday in the
distribution calendar year; or

 

(b)         if the Participant’s sole designated
Beneficiary for the distribution calendar year is the Participant’s spouse, the
quotient obtained by dividing the Participant’s account balance by the number
in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant’s and spouse’s attained ages as
of the Participant’s and spouse’s birthdays in the distribution calendar year.

 

3.2         Lifetime Required Minimum Distributions
Continue Through Year of Participant’s Death. 
Required minimum distributions will be determined under this section 3
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant’s date of death.

 

Section 4.  Required Minimum Distributions After
Participant’s Death.

 

4.1         Death On or After Date Distributions Begin.

 

(a)  Participant
Survived by Designated Beneficiary.  If
the Participant dies on or after the date distributions begin and there is a
designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the longer
of the remaining life expectancy of the Participant or the remaining life
expectancy of the Participant’s designated Beneficiary, determined as follows:

 

(1) 
The Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(2) 
If the Participant’s surviving spouse is the Participant’s sole designated
Beneficiary, the remaining life expectancy of the surviving spouse is
calculated for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year.  For distribution
calendar years after the year of the surviving spouse’s death, the remaining
life expectancy of the surviving spouse is calculated using the age of the
surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s
death, reduced by one for each subsequent calendar year.

 

(3) 
If the Participant’s surviving spouse is not the Participant’s sole designated
Beneficiary, the designated Beneficiary’s remaining life expectancy is
calculated using the age of the Beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

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

 

4.2         Death Before Date Distributions Begin.

 

(a)  Participant
Survived by Designated Beneficiary. 
Except as otherwise elected under section 6, if the Participant
dies before the date distributions begin and there is a designated Beneficiary,
the minimum amount that will be distributed for

 

2

 

each distribution calendar
year after the year of the Participant’s death is the quotient obtained by
dividing the Participant’s account balance by the remaining life expectancy of
the Participant’s designated Beneficiary, determined as provided in section 4.1.

 

(b)  No Designated
Beneficiary.  If the Participant dies
before the date distributions begin and there is no designated Beneficiary as
of September 30 of the year following the year of the Participant’s death,
distribution of the Participant’s entire interest will be completed by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(c)  Death of Surviving
Spouse Before Distributions to Surviving Spouse Are Required to Begin.  If the Participant dies before the date
distributions begin, the Participant’s surviving spouse is the Participant’s
sole designated Beneficiary, and the surviving spouse dies before distributions
are required to begin to the surviving spouse under section 2.2(a), this section 4.2
will apply as if the surviving spouse were the Participant.

 

Section 5.  Definitions.

 

5.1         Designated Beneficiary.  The individual who is the designated
Beneficiary, as such term is defined under section 2.01 of the Plan, and
is the designated Beneficiary under section 401(a)(9) of the Internal
Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

 

5.2         Distribution calendar year.  A calendar year for which a minimum
distribution is required.  For
distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year
which contains the Participant’s Required Beginning Date.  For distributions beginning after the
Participant’s death, the first distribution calendar year is the calendar year
in which distributions are required to begin under section 2.2.  The required minimum distribution for the
Participant’s first distribution calendar year will be made on or before the
Participant’s Required Beginning Date. 
The required minimum distribution for other distribution calendar years,
including the required minimum distribution for the distribution calendar year
in which the Participant’s Required Beginning Date occurs, will be made on or
before December 31 of that distribution calendar year.

 

5.3         Life expectancy.  Life expectancy as computed by use of the
Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations.

 

5.4         Participant’s account balance.  The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions
made in the valuation calendar year after the valuation date.  The account balance for the valuation
calendar year includes any amounts rolled over or transferred to the Plan
either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.

 

5.5         Required Beginning Date.  The Required Beginning Date, as such term is
defined in section 2.01 of the Plan.

 

Section 6.  Elections.

 

(a) Participants or
Beneficiaries May Elect 5-Year Rule. 
Participants or Beneficiaries may elect on an individual basis whether
the 5-year rule or the life expectancy rule in sections 2.2 and 4.2
of this addendum applies to distributions after the death of a Participant who
has a designated Beneficiary.  The
election must be made no later than the earlier of September 30 of the
calendar year in which distribution would be required to begin under section 2.2
of this addendum, or by September 30 of the calendar year which contains
the fifth anniversary of the Participant’s (or, if applicable, the surviving
spouse’s) death.  If neither the
Participant nor the Beneficiary makes an election under this section 6,
distributions will be made in accordance with sections 2.2 and 4.2 of this
addendum.

 

(b) Designated
Beneficiary Receiving Distributions Under 5-Year Rule May Elect Life
Expectancy Distributions.  A

 

3

 

designated Beneficiary who
is receiving payments under the 5-year rule may make a new election to
receive payments under the life expectancy rule until December 31,
2003, provided that all amounts that would have been required to be distributed
under the life expectancy rule for all distribution calendar years before
2004 are distributed by the earlier of December 31, 2003 or the end of the

5-year period.

 

4

 

The CORPORATEplan for RetirementSM

ADDENDUM

Re: Economic Growth and Tax Relief Reconciliation Act of 2001

(“EGTRRA”)

Second Amendment for Fidelity Basic Plan Document No. 02

 

PREAMBLE 

 

Adoption
and Effective Date of Amendment.  This amendment of the Plan is adopted to
reflect certain provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001 ("EGTRRA"). This amendment is intended as good faith
compliance with the requirements of EGTRRA and is to be construed in accordance
with EGTRRA and guidance issued thereunder. 
This amendment shall be effective December 1, 2003. 

 

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

 

The following paragraph is
hereby added to the end of Section 16.04: 

Notwithstanding
anything in the Basic Plan Document or Adoption Agreement (including addenda
thereto) to the contrary, to the extent permitted by any regulation or other
guidance under the Code, forms of payment may be eliminated without the
application of a waiting period and without prior notice to Participants
effective with respect to Participants whose Annuity Starting Dates occur on or
after the date the Plan amendment eliminating such forms of payment is adopted;
provided, however, that to the extent any regulation or other guidance under
the Code requires prior notice to Participants as a precondition to the
elimination of any form of payment or imposes any other requirement on such
elimination, no such elimination shall be effective unless the Plan
Administrator has complied with such notice or other requirement. 

 

© 2003 FMR Corp.

All rights reserved.

 

1

 

THE CORPORATEPLAN

FOR RETIREMENTSM

 

(PROFIT SHARING/401(K) PLAN)

 

A FIDELITY PROTOTYPE PLAN

 

Non-Standardized Adoption Agreement No. 001

For use With

Fidelity Basic Plan Document No. 02

 

 

	
  Plan Number: 48455

  	
   

  
	
  The CORPORATEplan for
  RetirementSM

  	
  Non-Std
  PS Plan

  
	
   

  	
  12/05/2001

  
	
  ©
  2001 FMR Corp.

  
	
  All
  rights reserved.

  

 

 

ADOPTION AGREEMENT

ARTICLE 1

NON-STANDARDIZED PROFIT SHARING/401(K) PLAN

 

1.01        PLAN INFORMATION

 

(a)           Name of Plan:

 

This
is the Jazz Semiconductor Hourly Savings Plan (the “Plan”)

 

(b)           Type of Plan:

 

(1)           ý            401(k) Only

 

(2)           o            401 (k) and Profit Sharing

 

(3)           o            Profit Sharing Only

 

(c)           Administrator
Name (if not the Employer):

 

 

  Address:

 

 

  Telephone
Number:

 

The
Administrator is the agent for service of legal process for the Plan.

 

(d)           Plan Year
End (month/day):             12/31

 

(e)           Three Digit Plan Number:                002

 

(f)            Limitation Year
(check one):

 

(1)            o            Calendar Year

 

(2)            ý            Plan Year

 

(3)            o            Other:

 

(g)           Plan Status
(check appropriate
box(es)):

 

(I)            o            New Plan Effective Date:

 

(2)           ý            Amendment Effective Date:               1/6/2003

 

1

 

This
is (check one):

 

(A)          ý            an amendment and restatement of a Basic Plan
Document No. 02 Adoption Agreement previously executed by the Employer; or

 

(B)           o            a conversion to a Basic Plan Document No. 02
Adoption Agreement.

 

The original effective date of the Plan:

 

(3)           ý            This is an amendment and restatement of the
Plan and the Plan was not amended prior to the effective date specified in
Subsection 1.01(g)(2) above to comply with the requirements of the
Acts specified in the Snap Off Addendum to the Adoption Agreement. The
provisions specified in the Snap Off Addendum are effective as of the dates
specified in the Snap Off Addendum, which dates may be prior to the Amendment
Effective Date. Please read and complete, if necessary, the Snap Off Addendum
to the Adoption Agreement.

 

(4)           ý            Special Effective Dates - Certain provisions of the Plan shall be
effective as of a date other than the date specified above. Please complete the
Special Effective Dates Addendum to the Adoption Agreement indicating the
affected provisions and their effective dates.

 

(5)           o            Plan Merger Effective Dates.  Certain plan(s) were merged into the Plan and certain provisions of the
Plan are effective with respect to the merged plan(s) as of a date other than
the date specified above. Please complete the Special Effective Dates Addendum
to the Adoption Agreement indicating the plan(s) that have merged into the Plan
and the effective date(s) of such merger(s).

 

1.02        EMPLOYER

 

(a)           Employer Name:                                                   Jazz Semiconductor

 

  Address:                                                                                         4321 Jamboree Road

Newport Beach, CA 92660

  Contact’s Name:                                                  Mrs. Susan Blumenkrantz

  Telephone Number:                                 (949) 435-8031

 

(1)           Employer’s Tax Identification Number:            02-0541231

 

(2)           Employer’s fiscal year end:                12/31

 

(3)           Date business commenced:                3/12/2002

 

(b)           The term “Employer” includes the
following Related Employer(s) (as defined in Subsection 2.01 (rr)) (list each participating Related Employer and
its Employer Tax Identification Number):

 

 

 

 

2

 

1.03        TRUSTEE

 

(a)            Trustee Name:     Fidelity
Management Trust Company

Address:                 82 Devonshire Street

Boston, MA 02109

 

1.04        COVERAGE

 

All Employees who meet the conditions specified below
shall be eligible to participate in the Plan:

 

(a)           Age Requirement
(check one):

 

(1)           ý            no age requirement.

 

(2)           o            must have attained age:                (not to exceed 21).

 

(b)           Eligibility
Service Requirement

 

(1)           Eligibility to Participate in
Plan (check one):

 

(A)          ý            no Eligibility Service requirement.

 

(B)           o                         (not to exceed 11) months of Eligibility Service requirement
(no minimum number Hours of Service can be required).

 

(C)           o            one year of Eligibility Service requirement
(at least 1,000 Hours of Service are required during the Eligibility
Computation Period).

 

(D)          o            two years of Eligibility Service requirement
(at least 1,000 Hours of Service are required during each Eligibility
Computation Period). (Do not
select if Option l.01(b)(1), 401(k) Only, is checked, unless a different
Eligibility Service requirement applies to Deferral Contributions under Option
l.04(b)(2).)

 

Note:   If the Employer selects the two year
Eligibility Service requirement, then contributions subject to such Eligibility
Service requirement must be 100% vested when made.

 

(2)           o            Special Eligibility Service
requirement for Deferral Contributions and/or Matching  Employer Contributions:

 

(A)          The special Eligibility Service requirement applies to (check the
appropriate box(es)):

 

(i)            o            Deferral Contributions.

 

(ii)           o            Matching Employer Contributions.

 

(B)           The special Eligibility Service requirement is:          (Fill
in (A), (B), or (C) from Subsection 1.04(b)(1) above).

 

3

 

(c)           Eligible
Class of Employees (check
one):

 

Note:   The Plan may not cover employees who are
residents of Puerto Rico.  These
employees are automatically excluded from the eligible class, regardless of the
Employer’s selection under this Subsection 1.04(c).

 

(1)           o            includes all Employees of the Employer.

 

(2)           ý            includes all Employees of the Employer except
for (check the appropriate box(es)):

 

(A)          o            employees covered by a collective bargaining
agreement.

 

(B)           o            Highly Compensated Employees as defined in
Code Section 414(q).

 

(C)           ý            Leased Employees as defined in
Subsection 2.01 (cc).

 

(D)          o            nonresident aliens who do not receive any
earned income from the Employer which constitutes United States source income.

 

(E)           ý            other:  As
independent contractor or employees of independent contractors: as temporary
employees, regardless of the length of time that they work at the Company,
temporary placement agency, job placement, or third party, part of an employee
leasing arrangement between the Company and any third party.  The above exclusions remain in effect even if
a court or administrative agency determines such individuals are common law
employees and not independent contractors. Such individuals will not be
retroactively permitted to participate in the Plan. (this plan includes only
employee of International Brotherhood of Electric Workers, Local Union No.
2295-Newport Beach, California)

 

Note: The
Employer should exercise caution when excluding employees from participation in
the Plan.  Exclusion of employees may
adversely affect the Plan’s satisfaction of the minimum coverage requirements,
as provided in Code Section 410(b).

 

(d)           The Entry Dates
shall be (check one):

 

(1)           ý            immediate upon meeting the eligibility
requirements specified in Subsections 1.04(a), (b), and (c).

 

(2)           o            the first day of each Plan Year and the first
day of the seventh month of each Plan Year.

 

(3)           o            the first day of each Plan Year and the first
day of the fourth, seventh, and tenth months of each Plan Year.

 

(4)           o            the first day of each month.

 

(5)           o            the first day of each Plan Year. (Do not select if there is an
Eligibility Service requirement of more than six months in Subsection 1.04(b) or if
there is an age requirement of
more than

20 1/2 in
Subsection 1.04(a).)

 

4

 

Amendment Execution

(Employer’s Copy)

 

IN WITNESS WHEREOF, the
Employer has caused this Amendment to be executed this  20th day of
November, 2002.

 

 

	
  Employer:

  	
  Jazz Semiconductor

  	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ DANIEL LYNCH

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Vice President, Human Resources

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accepted by: Fidelity Management Trust Company, as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Cynthia A. Davis

  	
   

  	
  Date:

  	
  12-13-02

  	
   

  
	
  Title:

  	
  Cynthia A. Davis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
   

  	
   

  
								

 

5

 

(e)           o            Special Entry
Date(s) - In addition to the
Entry Dates specified in Subsection 1.04(d) above, the following special
Entry Date(s) apply for Deferral and/or Matching Employer Contributions. (Special Entry Dates may only be
selected if Option 1.04(b)(2), special Eligibility Service requirement, is
checked. The same Entry Dates must be selected for contributions that are
subject to the same Eligibility Service requirements.)

 

(1)           The special Entry Date(s) shall apply to
(check the appropriate box(es)):

 

(A)          o            Deferral Contributions.

 

(B)           o            Matching Employer Contributions.

 

(2)           The special Entry Date(s) shall be:   (Fill in (1), (2), (3), (4), or (5) from
Subsection l.04(d) above).

 

(f)            Date of Initial Participation
- An Employee shall become a Participant unless
excluded by Subsection 1.04(c) above on the Entry Date immediately
following the date the Employee completes the service and age requirement(s) in
Subsections 1.04(a) and (b), if any, except (check one):

 

(1)           ý            no exceptions.

 

(2)           o            Employees employed on the Effective Date in
Subsection 1.0l(g)(1)  or (2) 
shall become Participants on that date.

 

(3)           o            Employees who meet the age and service
requirement(s) of Subsections 1.04(a) and (b) on the Effective Date
in Subsection 1.01(g)(1) or (2) shall become Participants on that
date.

 

1.05        COMPENSATION

 

Compensation for purposes of
determining contributions shall be as defined in Section 5.02, modified
as provided below.

 

(a)           Compensation Exclusions:    Compensation shall exclude the item(s) listed below for purposes of determining
Deferral Contributions, Employee Contributions, if any, and Qualified
Nonelective Employer Contributions, or, if Subsection 1.01(b)(3), Profit
Sharing Only, is selected, Nonelective Employer Contributions. Unless otherwise
indicated in Subsection 1.05(b), these exclusions shall also apply in
determining all other Employer-provided contributions. (Check the appropriate
box(es); Options (2), (3), (4), (5), and (6) may not be elected with
respect to Deferral Contributions if Option 1.10(a)(3), Safe Harbor Matching
Employer Contributions, is checked):

 

(1)           o            No exclusions.

 

(2)           ý            Overtime Pay.

 

(3)           ý            Bonuses.

 

(4)           ý            Commissions.

 

5

 

(5)           ý            The value of a qualified or a non-qualified
stock option granted to an Employee by the Employer to the extent such value is
includable in the Employee’s taxable income.

 

(6)           ý            Severance Pay.

 

(b)           Special Compensation Exclusions for Determining
Employer-Provided Contributions in Article 5 (either (1) or (2) may be selected,
but not both):

 

(1)           o            Compensation for purposes of determining
Matching, Qualified Matching, and Nonelective Employer Contributions shall
exclude:                      (Fill in number(s) for item(s) from
Subsection 1.05(a) above that apply.)

 

(2)           o            Compensation for purposes of determining
Nonelective Employer Contributions only shall exclude:                  (Fill
in number(s) for item(s) from Subsection 1.05(a) above that apply.)

 

Note: If the Employer selects Option (2), (3), (4),
(5), or (6) with respect to Nonelective Employer Contributions,
Compensation must be tested to show that it meets the requirements of Code
Section 414(s) or 401(a)(4).  These
exclusions shall not apply for purposes of the “Top Heavy” requirements in
Section 15.03, for allocating safe harbor Matching Employer Contributions
if Subsection 1.10(a)(3) is selected, for allocating safe harbor
Nonelective Employer Contributions if Subsection l.11(a)(3) is
selected, or for allocating non-safe harbor Nonelective Employer Contributions
if the Integrated Formula is elected in Subsection l.11(b)(2).

 

(c)           Compensation for the First Year of Participation - Contributions for the Plan Year in which an
Employee first becomes a Participant shall be determined based on the
Employee’s Compensation (check one):

 

(1)           o            for the entire Plan Year.

 

(2)           ý            for the portion of the Plan Year in which the
Employee is eligible to participate in the Plan.

 

Note: If the
initial Plan Year of a new Plan consists of fewer than 12 months from the
Effective Date in Subsection l.01(g)(1) through the end of the initial
Plan Year. Compensation for purposes of determining the amount of
contributions, other than non-safe harbor Nonelective Employer Contributions,
under the Plan shall be the period from such Effective Date through the end of
the initial year. However, for purposes of determining the amount of non-safe
harbor Nonelective Employer Contributions and for other Plan purposes, where
appropriate, the full 12-consecutive-month period ending on the last day of the
initial Plan Year shall be used.

 

1.06        TESTING RULES

 

(a)           ADP/ACP Present Testing Method - The testing method for purposes of applying the “ADP” and “ACP” tests
described in Sections 6.03 and 6.06 of the Plan shall be the (check one):

 

(1)           o            Current Year Testing Method - The “ADP” or “ACP” of Highly Compensated
Employees for the Plan Year shall be compared to the “ADP” or “ACP” of
Non-Highly Compensated Employees for the same Plan Year. (Must choose if Option 1.10(a)(3), Safe Harbor Matching
Employer Contributions, or Option 1.11(a)(3), Safe Harbor Formula, with respect
to Nonelective Employer Contributions is checked.)

 

6

 

(2)           ý            Prior Year Testing Method - The “ADP” or “ACP” of Highly
Compensated Employees for the Plan Year
shall be compared to the “ADP” or “ACP” of Non-Highly Compensated Employees for
the immediately preceding Plan Year.  (Do not choose if Option
1.10(a)(3), Safe Harbor Matching Employer Contributions, or Option 1.11(a)(3),
Safe Harbor Formula, with respect to Nonelective Employer Contributions is
checked.)

 

(3)           o            Not applicable.  (Only if
Option 1.01(b)(3), Profit Sharing Only, 
is checked or Option 1.04(c)(2)(B), excluding all Highly
Compensated Employees from the eligible class of Employees, is checked.)

 

Note: Restrictions
apply on elections to change testing methods that are made after the end of the
GUST remedial amendment period.

 

(b)           First Year Testing Method - If the first Plan Year that the Plan,
other than a successor plan, permits Deferral Contributions or provides for
either Employee or Matching Employer Contributions, occurs on or after the
Effective Date specified in Subsection l.01(g), the “ADP” and/or “ACP”
test for such first Plan Year shall be applied using the actual “ADP” and/or
“ACP” of Non-Highly Compensated Employees for such first Plan Year, unless
otherwise provided below.

 

(1)           o            The
“ADP” and/or “ACP” test for the first Plan Year that the Plan permits Deferral
Contributions or provides for either Employee or Matching Employer
Contributions shall be applied assuming a 3% “ADP” and/or “ACP” for Non-Highly
Compensated Employees.  (Do not choose unless Plan uses
prior year testing method described in Subsection 1.06(a)(2).)

 

(c)           HCE Determinations: Look Back
Year - The look back
year for purposes of determining which Employees are Highly Compensated
Employees shall be the 12-consecutive-month period preceding the Plan Year,
unless otherwise provided below.

 

(1)           o            Calendar Year Determination - The look back year shall be
the calendar year beginning within the
preceding Plan Year. (Do not
choose if the Plan Year is the calendar year.)

 

(d)           HCE Determinations: Top
Paid Group Election - All Employees with Compensation exceeding
$80,000 (as indexed) shall be considered Highly Compensated Employees, unless
Top Paid Group Election below is checked.

 

(1)           ý            Top Paid Group Election - Employees with Compensation
exceeding $80,000 (as indexed) shall be considered Highly Compensated Employees
only if they are in the top paid group (the top 20% of Employees ranked by
Compensation).

 

Note: Effective for
determination years beginning on or after January 1, 1998, if the Employer
elects Option 1.06(c)(1) and/or 1.06(d)(1), such election(s) must apply
consistently to all retirement plans of the Employer for determination years
that begin with or within the same calendar year (except that Option 1.06(c)(1),
Calendar Year Determination, shall not apply to calendar year plans).

 

7

 

1.07        DEFERRAL CONTRIBUTIONS

 

(a)           ý            Deferral
Contributions - Participants
may elect to have a portion of their Compensation contributed to the Plan on a
before-tax basis pursuant to Code Section 401(k).

 

(1)           Regular Contributions - The Employer shall make a Deferral
Contribution in accordance with Section 5.03 on behalf of each Participant who
has an executed salary reduction agreement in effect with the Employer for the payroll period in question, not to
exceed 15% of Compensation for that period.

 

Note: For
Limitation Years beginning prior to 2002, the percentage elected above must be
less than 25% in order to satisfy the limitation on annual additions under Code
Section 415 if other types of contributions are provided under the Plan.

 

(A)          o            Instead of specifying a percentage of
Compensation, a Participant’s salary reduction agreement may specify a dollar
amount to be contributed each payroll period, provided such dollar amount does
not exceed the maximum percentage of Compensation specified in
Subsection 1.07(a)(1) above.

 

(B)          A Participant may increase or decrease, on a
prospective basis, his salary reduction agreement percentage (check one):

 

(i)            o            as of the beginning of each payroll period.

 

(ii)           o            as of the first day of each month.

 

(iii)          o            as of the next Entry Date.  (Do not select
if immediate entry is elected
with respect to Deferral Contributions in Subsection 1.04(d) or
1.04(e).)

 

(iv)          ý            other.
(Specify, but must be at least once per Plan Year)

 

Any
time

 

Note:
Notwithstanding the Employer’s election hereunder, if Option 1.10(a)(3), Safe
Harbor Matching Employer Contributions, or 1.11(a)(3), Safe Harbor Formula,
with respect to Nonelective Employer Contributions is checked, the Plan
provides that an Active Participant may change his salary reduction agreement
percentage for the Plan Year within a reasonable period (not fewer than 30
days) of receiving the notice described in Section 6.10.

 

8

 

(C)          A Participant may revoke, on a prospective
basis, a salary reduction agreement at any time upon proper notice to the
Administrator but in such case may not file a new salary reduction agreement
until (check one):

 

(i)            o            the first day of the next Plan Year.

 

(ii)           o            any subsequent Entry Date.  (Do not select if immediate entry is elected with respect to
Deferral Contributions in Subsection 1.04(d) or 1.04(e).)

 

(iii)          ý            other. (Specify, but must be at least once per
Plan Year)

 

Any time

 

(2)           o            Additional Deferral Contributions
- The Employer may allow
Participants upon proper notice and approval to enter into a special salary
reduction agreement to make additional Deferral Contributions in an amount up
to 100% of their Compensation for the payroll period(s) designated by the
Employer.

 

(3)           o            Bonus Contributions - The Employer may allow Participants upon
proper notice and approval to enter into a special salary reduction agreement
to make Deferral Contributions in an amount up to 100% of any Employer paid
cash bonuses designated by the Employer on a uniform and non-discriminatory
basis that are made for such Participants during the Plan Year. The
Compensation definition elected by the Employer in
Subsection 1.05(a) must include bonuses if bonus contributions are
permitted.

 

Note: A
Participant’s contributions under Subsection 1.07(a)(2) and/or
(3) may not cause the Participant to exceed the percentage limit specified
by the Employer in Subsection 1.07(a)(1) for the full Plan Year. If the
Administrator anticipates that the Plan will not satisfy the “ADP” and/or “ACP”
test for the year, the Administrator may reduce the rate of Deferral
Contributions of Participants who are Highly Compensated Employees to an amount
objectively determined by the Administrator to be necessary to satisfy the
“ADP” and/or “ACP” test.

 

1.08        EMPLOYEE CONTRIBUTIONS (AFTER-TAX
CONTRIBUTIONS)

 

(a)           ý            Employee
Contributions - Either
(1) Participants will be permitted to contribute amounts to the Plan on an
after-tax basis or (2) the Employer maintains frozen Employee
Contributions Accounts (check one):

 

(1)           ý            Future Employee Contributions - Participants may make
voluntary, non-deductible, after-tax Employee Contributions pursuant to
Section 5.04 of the Plan. (Only if
Option 1.07(a), Deferral Contributions, is checked.)

 

(2)           o            Frozen Employee Contributions - Participants may not
currently make after-tax Employee Contributions to the Plan, but the Employer
does maintain frozen Employee Contributions Accounts.

 

9

 

1.09        QUALIFIED NONELECTIVE
CONTRIBUTIONS

 

(a)           Qualified Nonelective Employer Contributions - If Option 1.07(a), Deferral Contributions, is
checked, the Employer may contribute an amount which it designates as a
Qualified Nonelective Employer Contribution to be included in the “ADP” or
“ACP” test. Unless otherwise provided below, Qualified Nonelective Employer
Contributions shall be allocated to Participants who were eligible to
participate in the Plan at any time during the Plan Year and are Non-Highly
Compensated Employees either (A) in the ratio which each Participant’s “testing
compensation”, as defined in Subsection 6.01(t), for the Plan Year bears
to the total of all Participants’ “testing compensation” for the Plan Year or
(B) as a flat dollar amount.

 

(1)           o            Qualified Nonelective Employer Contributions
shall be allocated to Participants as a percentage of the lowest paid
Participant’s “testing compensation”, as defined in Subsection 6.01(t),
for the Plan Year up to the lower of (A) the maximum amount contributable
under the Plan or (B) the amount necessary to satisfy the “ADP” or “ACP”
test. If any Qualified Nonelective Employer Contribution remains, allocation
shall continue in the same manner to the next lowest paid Participants until
the Qualified Nonelective Employer Contribution is exhausted.

 

1.10        MATCHING EMPLOYER CONTRIBUTIONS (Only
if Option 1.07(a), Deferral Contributions, is checked)

 

(a)           ý            Basic Matching Employer Contributions (check one):

 

(1)           ý            Non-Discretionary Matching
Employer Contributions - The
Employer shall make a basic Matching Employer Contribution on behalf of each
Participant in an amount equal to the following percentage of a Participant’s
Deferral Contributions during the Contribution Period (check (A) or
(B) and, if applicable, (C)):

 

Note:
Effective for Plan Years beginning on or after January 1, 1999, if the
Employer elected Option 1.11(a)(3). Safe Harbor Formula, with respect to
Nonelective Employer Contributions and meets the requirements for deemed
satisfaction of the “ADP” test in Section 6.10 for a Plan Year, the Plan
will also be deemed to satisfy the “ACP” test for such Plan Year with respect
to Matching Employer Contributions if Matching Employer Contributions hereunder
meet the requirements in Section 6.11.

 

(A)          ý            Single Percentage Match:            50%

 

(B)          o            Tiered Match:

 

%
of the first             %
of the Active Participant’s Compensation contributed to the Plan,

 

%
of the next             %
of the Active Participant’s Compensation contributed to the Plan,

 

%
of the next             %
of the Active Participant’s Compensation contributed to the Plan.

 

Note:   The
percentages specified above for basic Matching Employer Contributions may not
increase as the percentage of Compensation contributed increases.

 

10

 

(C)           ý            Limit on Non-Discretionary Matching Employer
Contributions (check the appropriate box(es)):

 

(i)            o            Deferral Contributions in excess of       %
of the Participant’s Compensation for the period in question shall not be
considered for non-discretionary Matching Employer Contributions.

 

Note: If the
Employer elected a percentage limit in (i) above and requested the Trustee
to account separately for matched and unmatched Deferral Contributions made to
the Plan, the non-discretionary Matching Employer Contributions allocated to
each Participant must be computed, and the percentage limit applied, based upon
each payroll period.

 

(ii)           ý            Matching Employer Contributions for each
Participant for each Plan Year shall be limited to $750.

 

(2)           o            Discretionary Matching Employer
Contributions - The Employer
may make a basic Matching Employer Contribution on behalf of each Participant
in an amount equal to the percentage declared for the Contribution Period, if
any, by a Board of Directors’ Resolution (or by a Letter of Intent for a sole
proprietor or partnership) of the Deferral Contributions made by each
Participant during the Contribution Period. The Board of Directors’ Resolution
(or Letter of Intent, if applicable) may limit the Deferral Contributions
matched to a specified percentage of Compensation or limit the amount of the
match to a specified dollar amount.

 

(A)          o            4% Limitation on Discretionary Matching
Employer Contributions for Deemed Satisfaction of “ACP” Test - In no event may
the dollar amount of the discretionary Matching Employer Contribution made on a
Participant’s behalf for the Plan Year exceed 4% of the Participant’s
Compensation for the Plan Year. (Only if
Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer
Contributions is checked.)

 

(3)           o            Safe Harbor Matching Employer
Contributions - Effective
only for Plan Years beginning on or after January 1, 1999, if the Employer
elects one of the safe harbor formula Options provided in the Safe Harbor
Matching Employer Contribution Addendum to the Adoption Agreement and provides
written notice each Plan Year to all Active Participants of their rights and
obligations under the Plan, the Plan shall be deemed to satisfy the “ADP” test
and, under certain circumstances, the “ACP” test.

 

(b)          ý             Additional
Matching Employer Contributions - The
Employer may at Plan Year end make an additional Matching Employer Contribution
equal to a percentage declared by the Employer, through a Board of Directors’
Resolution (or by a Letter of Intent for a sole proprietor or partnership), of the
Deferral Contributions made by each Participant during the Plan Year. (Only if Option 1.10(a)(1) or
(3) is checked.) The
Board of Directors’ Resolution (or Letter of Intent, if applicable) may limit
the Deferral Contributions matched to a specified percentage of Compensation or
limit the amount of the match to a specified dollar amount.

 

(1)           o            4% Limitation on Additional
Matching Employer Contributions for Deemed Satisfaction of “ACP” Test - In no event may the dollar amount of the
additional Matching Employer Contribution made on a Participant’s behalf for
the Plan Year exceed 4% of the Participant’s Compensation for the Plan Year. (Only if Option 1.10(a)(3), Safe
Harbor Matching Employer Contributions, or Option 1.11(a)(3), Safe Harbor
Formula, with respect to Nonelective Employer Contributions is checked.)

 

11

 

Note: If
the Employer elected Option 1.10(a)(3), Safe Harbor Matching Employer
Contributions, above and wants to be deemed to have satisfied the “ADP” test
for Plan Years beginning on or after January 1, 1999, the additional
Matching Employer Contribution must meet the requirements of Section 6.10.
In addition to the foregoing requirements, if the Employer elected either
Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or Option
l.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer
Contributions, and wants to be deemed to have satisfied the “ACP” test with
respect to Matching Employer Contributions for the Plan Year, the Deferral
Contributions matched may not exceed the limitations in Section 6.11.

 

(c)          Contribution Period for Matching
Employer Contributions - The
Contribution Period for purposes of calculating the amount of basic Matching
Employer Contributions described in Subsection 1.10(a) is:

 

(1)           o            each calendar month.

 

(2)           o            each Plan Year quarter.

 

(3)           o            each Plan Year.

 

(4)           ý            each payroll period.

 

The
Contribution Period for additional Matching Employer Contributions described in
Subsection 1.10(b) is the Plan Year.

 

(d)          Continuing
Eligibility Requirement(s) - A Participant who makes Deferral Contributions during a Contribution Period
shall only be entitled to receive Matching Employer Contributions under
Section 1.10 for that Contribution Period if the Participant satisfies the
following requirement(s) (Check the appropriate box(es).   Options (3) and (4) may not be elected
together; Option (5) may not be elected with Option (2), (3), or (4);
Options (2), (3), (4), (5), and (7) may not be elected with respect to basic
Matching Employer Contributions if Option 1.10(a)(3), Safe Harbor

Matching Employer Contributions, is checked):

 

(1)          ý             No requirements.

 

(2)          o             Is employed by the Employer or a Related
Employer on the last day of the Contribution Period.

 

(3)          o             Earns at least 501 Hours of Service during the
Plan Year.  (Only
if the Contribution Period is the Plan Year.)

 

(4)          o             Earns at least 1,000 Hours of Service during
the Plan Year.  (Only
if the Contribution Period is the Plan Year.)

 

(5)          o             Either earns at least 501 Hours of Service
during the Plan Year or is employed by the Employer or a Related Employer on
the last day of the Plan Year.  (Only if the Contribution Period is the Plan Year.)

 

(6)          o             Is not a Highly Compensated Employee for the
Plan Year.

 

(7)          o             Is not a partner or a member of the Employer,
if the Employer is a partnership or an entity taxed as a partnership.

 

12

 

(8)          o             Special continuing eligibility requirement(s)
for additional Matching Employer Contributions. (Only if Option 1.10(b), Additional Matching Employer
Contributions, is checked.)

 

(A)          The continuing eligibility requirement(s) for additional Matching
Employer Contributions is/are: (Fill in number of applicable eligibility
requirement(s) from above.)

 

Note: If
Option (2), (3), (4), or (5) above is selected, then Matching Employer
Contributions can only be funded by the
Employer after the Contribution Period or Plan
Year ends. Matching Employer Contributions funded during the Contribution
Period or Plan Year shall not be subject to the eligibility requirements of
Option (2), (3), (4), or (5). If Option (2), (3), (4), or (5) is adopted
during a Contribution Period or Plan Year, as applicable, such Option shall not
become effective until the first day of the next Contribution Period or Plan
Year.

 

(e)          o             Qualified
Matching Employer Contributions - Prior
to making any Matching Employer Contribution hereunder (other than a safe
harbor Matching Employer Contribution), the Employer may designate all or a portion
of such Matching Employer Contribution as a Qualified Matching Employer
Contribution that may be used to satisfy the “ADP” test on Deferral
Contributions and excluded in applying the “ACP” test on Employee and Matching
Employer Contributions. Unless the additional eligibility requirement is
selected below, Qualified Matching Employer Contributions shall be allocated to
all Participants who meet the continuing eligibility requirement(s) described
in Subsection 1.10(d) above for the type of Matching Employer
Contribution being characterized as a Qualified Matching Employer Contribution.

 

(1)          o             To receive an allocation of Qualified Matching
Employer Contributions a Participant must also be a Non-Highly Compensated
Employee for the Plan Year.

 

Note: Qualified
Matching Employer Contributions may not be excluded in applying the
“ACP” test for a Plan Year if the Employer elected Option 1.10(a)(3), Safe
Harbor Matching Employer Contributions, or Option l.11(a)(3), Safe Harbor
Formula, with respect to Nonelective Employer Contributions, and the “ADP” test
is deemed satisfied under Section 6.10 for such Plan Year.

 

1.11        NONELECTIVE EMPLOYER CONTRIBUTIONS

 

Note: An
Employer may elect both a fixed formula and a discretionary formula. If both
are selected, the discretionary formula shall be treated as an additional
Nonelective Employer Contribution and allocated separately in accordance with
the allocation formula selected by the Employer.

 

(a)          o             Fixed Formula (An Employer may elect both the Safe Harbor
Formula and one of the other fixed formulas. Otherwise, the Employer may only
select one of the following.)

 

(1)          o             Fixed Percentage Employer
Contribution - For each Plan
Year, the Employer shall contribute for each eligible Active Participant an
amount equal to          % (not to exceed 15% for Plan Years beginning prior to 2002 and 25% for
Plan Years beginning on or after January 1, 2002) of such
Active Participant’s Compensation.

 

(2)          o             Fixed Flat Dollar Employer
Contribution - The Employer
shall contribute for each eligible Active Participant an amount equal to $               .

 

13

 

The
contribution amount is based on an Active Participant’s service for the
following period:

 

(A)          o            Each paid hour.

 

(B)           o            Each payroll period.

 

(C)           o            Each Plan Year.

 

(D)          o            Other:

 

(3)           o            Safe Harbor Formula - Effective only with respect to Plan Years
that begin on or after January 1, 1999, the Nonelective Employer
Contribution specified in the Safe Harbor Nonelective Employer Contribution Addendum
is intended to satisfy the safe harbor contribution requirements under the Code
such that the “ADP” test (and, under certain circumstances, the “ACP” test) is
deemed satisfied. Please complete the Safe Harbor Nonelective Employer
Contribution Addendum to the Adoption Agreement. (Choose only if Option 1.07(a), Deferral Contributions, is
checked.)

 

(b)           o            Discretionary
Formula
- The Employer may decide
each Plan Year whether to make a discretionary Nonelective Employer
Contribution on behalf of eligible Active Participants in accordance with
Section 5.10. Such contributions shall be allocated to eligible Active
Participants based upon the following (check (1) or (2)):

 

(1)           o            Non-Integrated Allocation Formula - In the ratio that each eligible Active
Participant’s Compensation bears to the total Compensation paid to all eligible
Active Participants for the Plan Year.

 

(2)           o            Integrated Allocation Formula - As (A) a percentage of each eligible Active Participant’s Compensation
plus (B) a percentage of each eligible Active Participant’s Compensation
in excess of the “integration level” as defined below. The percentage of
Compensation in excess of the “integration level” shall be equal to the lesser
of the percentage of the Active Participant’s Compensation allocated under
(A) above or the “permitted disparity limit” as defined below.

 

Note: An
Employer that has elected the Safe Harbor formula in Subsection 1.11(a)(3) above
may not take Nonelective Employer Contributions made to satisfy the safe harbor
into account in applying the integrated allocation formula described above.

 

“Integration
level” means the Social Security taxable wage base for the Plan Year, unless
the Employer elects a lesser amount in (A) or (B) below.

 

(A)                    % (not to exceed 100%) of the Social Security taxable wage
base for the Plan Year, or

 

(B)           $           
(not to exceed the Social Security taxable wage
base).

 

14

 

“Permitted
disparity limit” means the percentage provided by the following table:

 

	
  If the “Integration Level” is
  at

  least      % of the Taxable

  Wage Base

  	
   

  	
  But Less Than

       % of the

  Taxable Wage Base

  	
   

  	
  The “Permitted

  Disparity

  Limit” is

  	
   

  
	
  0%

  	
   

  	
  20%

  	
   

  	
  5.7%

  	
   

  
	
  20%

  	
   

  	
  80%

  	
   

  	
  4.3%

  	
   

  
	
  80%

  	
   

  	
  100%

  	
   

  	
  5.4%

  	
   

  
	
  100%

  	
   

  	
  N/A

  	
   

  	
  5.7%

  	
   

  

 

Note:  An Employer who maintains any other plan that
provides for Social Security Integration (permitted disparity) may not elect
Option 1.11(b)(2).

 

(c)           Continuing Eligibility Requirement(s) - A Participant shall only be entitled to receive Nonelective Employer Contributions
for a Plan Year under this Section 1.11 if the Participant satisfies the
following requirement(s) (Check the appropriate box(es) - Options (3) and
(4) may not be elected together; Option (5) may not be elected with
Option (2), (3), or (4); Options (2), (3), (4), (5), and (7) may not be
elected with respect to Nonelective Employer Contributions under the fixed
formula if Option 1.1l(a)(3), Safe Harbor Formula, is checked):

 

(1)           o            No
requirements.

 

(2)           o            Is employed by the Employer or a Related
Employer on the last day of the Plan Year.

 

(3)           o            Earns at least 501 Hours of Service during the
Plan Year.

 

(4)           o            Earns at least 1,000 Hours of Service during
the Plan Year.

 

(5)           o            Either earns at least 501 Hours of Service
during the Plan Year or is employed by the Employer or a Related Employer on
the last day of the Plan Year.

 

(6)           o            Is not a Highly Compensated Employee for the
Plan Year.

 

(7)           o            Is not a partner or a member of the Employer,
if the Employer is a partnership or an entity taxed as a partnership.

 

(8)           o            Special continuing eligibility requirement(s)
for discretionary Nonelective Employer Contributions. (Only if both Options 1.11(a) and (b) are
checked.)

 

(A)          The continuing eligibility requirement(s) for discretionary Nonelective
Employer Contributions is/are:         
(Fill in number of applicable eligibility requirement(s) from above.)

 

Note: If
Option (2), (3), (4), or (5) above is selected then Nonelective Employer
Contributions can only be funded by
the Employer after the Plan Year ends. Nonelective Employer Contributions funded during
the Plan Year shall not be subject to the eligibility requirements of Option
(2), (3), (4), or (5). If Option (2), (3), (4), or (5) is adopted during a
Plan Year, such Option shall not become effective until the first day of the
next Plan Year.

 

15

 

1.12        EXCEPTIONS TO CONTINUING
ELIGIBILITY REQUIREMENTS

 

o           Death,
Disability, and Retirement Exception to Eligibility Requirements - Active Participants who do not meet any last day or Hours of Service
requirement under Subsection 1.10(d) or l.11(c) because they
become disabled, as defined in Section 1.14, retire, as provided in
Subsection 1.13(a), (b), or (c), or die shall nevertheless receive an allocation
of Nonelective Employer and/or Matching Employer Contributions. No Compensation
shall be imputed to Active Participants who become disabled for the period
following their disability.

 

1.13        RETIREMENT

 

(a)           The Normal
Retirement Age under the Plan is (check
one):

 

(1)           ý            age 65.

 

(2)           o            age           (specify
between 55 and 64).

 

(3)            o           later of
age         (not to
exceed 65) or the fifth anniversary of the Participant’s Employment Commencement
Date.

 

(b)           o            The Early
Retirement Age is the first day of the month after the Participant
attains age        (specify 55 or greater)
and completes            
years of Vesting Service.

 

Note:  If this Option is elected, Participants who
are employed by the Employer or a Related Employer on the date they reach Early
Retirement Age shall be 100% vested in their Accounts under the Plan.

 

(c)           o            A Participant
who becomes disabled, as defined in Section 1.14, is eligible for
disability retirement.

 

Note:   If this Option is elected, Participants who
are employed by the Employer or a Related Employer on the date they become
disabled shall be 100% vested in their Accounts under the Plan.

 

1.14        DEFINITION OF DISABLED

 

A Participant is disabled if he/she (check the appropriate box(es)):

 

(a)           o            satisfies the requirements for benefits under
the Employer’s long-term disability plan.

 

(b)           o            satisfies the requirements for Social Security
disability benefits.

 

(c)           o            is determined to be disabled by a physician
approved by the Employer.

 

16

 

1.15        VESTING

 

A Participant’s vested interest
in Matching Employer Contributions and/or Nonelective Employer
Contributions, other than Safe Harbor Matching Employer and/or Nonelective
Employer Contributions elected in Subsection 1.10(a)(3) or 1.11(a)(3), shall be
based upon his years of Vesting Service and the schedule(s) selected below,
except as provided in Subsection 1.21(d) or in the Vesting
Schedule Addendum to the Adoption Agreement.

 

(a)           o            Years of Vesting Service shall exclude:

 

(1)           o            for new plans, service prior to the Effective
Date as defined in Subsection 1.01(g)(1).

 

(2)            o           for existing plans converting from another
plan document, service prior to the original Effective Date as defined in
Subsection l.01(g)(2).

 

(b)            Vesting Schedule(s)

 

Note:   The vesting schedule selected below
applies only to Nonelective Employer Contributions and Matching Employer
Contributions other than safe harbor contributions under Option 1.11(a)(3) or
Option 1.10(a)(3).  Safe harbor
contributions under Options 1.1l(a)(3) and 1.10(a)(3) are always 100%
vested immediately.

 

(1) Nonelective Employer
Contributions

(check one):

 

(A)  ý  N/A - No Nonelective Employer Contributions

 

(B)  o  100% Vesting immediately 

 

(C)  o  3 year cliff (sec C
below)

 

(D)  o  5 year cliff (see D
below)

 

(E)  o  6 year graduated (see E
below)

 

(F)  o  7 year graduated (see F
below)

 

(G)  o  Other vesting (complete G1
below)

 

(2) Matching Employer Contributions

(check one):

 

(A)  o  N/A - No Matching Employer Contributions

 

(B)  o  100% Vesting immediately

 

(C)  o  3 year cliff (see C
below)

 

(D)  ý  5 year cliff (see D
below)

 

(E)  o  6 year graduated (see E
below)

 

(F)  o  7 year graduated (see F
below)

 

(G)  o  Other vesting (complete G2
below)

 

17

 

	
  Years of

  Vesting Service

  	
   

  	
  Applicable
  Vesting Schedule(s)

  	
   

  
	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G1

  	
   

  	
  G2

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
  %

  	
   

  	
  %

  
	
  7 or more

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

Note: A schedule elected under G1 or G2 above
must be at least as favorable as one of the schedules in C, D, E or F above.

 

Note: If the Plan is being amended to provide
a more restrictive vesting schedule, the more favorable vesting schedule shall
continue to apply to Participants who are Active Participants immediately prior
to the later of (1) the effective date of the amendment or (2) the date the
amendment is adopted.

 

(c)           o            A vesting schedule more favorable than the vesting
schedule(s) selected above applies to certain Participants. Please
complete the Vesting Schedule Addendum to the Adoption Agreement.

 

(d)           Application of Forfeitures - If a Participant forfeits any portion of
his non-vested Account balance as provided in Section 6.02, 6.04, 6.07, or
11.08, such forfeitures shall be (check one):

 

(1)           o            N/A
- Either (A) no Matching Employer Contributions are made with respect to
Deferral Contributions under the Plan and all other Employer Contributions are
100% vested when made or (B) there are no Employer Contributions under the
Plan.

 

(2)           ý            applied
to reduce Employer contributions.

 

(3)           o            allocated
among the Accounts of eligible Participants in the manner provided in Section 1.11. (Only if Option 1.11(a) or (b) is checked.)

 

1.16        PREDECESSOR EMPLOYER SERVICE

 

ý            Service
for purposes of eligibility in Subsection 1.04(b) and vesting in Subsection
1.15(b) of this Plan shall include service with the following predecessor
employer(s):

 

Conexant
Systems, Inc.

Specialty Semi

 

18

 

1.17        PARTICIPANT
LOANS

 

Participant loans (check
one):

 

(a)           ý            are allowed in accordance with Article 9 and loan procedures
outlined in the Service Agreement.

 

(b)           o            are not allowed.

 

1.18        IN-SERVICE WITHDRAWALS

 

Participants may make withdrawals prior to
termination of employment under the following circumstances (check
the appropriate box(es)):

 

(a)           ý            Hardship Withdrawals - Hardship withdrawals from a Participant’s
Deferral Contributions Account shall be allowed in accordance with Section
10.05, subject to a $500 minimum amount.

 

(b)           ý            Age 59 1/2 - Participants shall be entitled to
receive a distribution of all or any portion of the following Accounts upon
attainment of age 59 1/2 (check one):

 

(1)           o            Deferral
Contributions Account.

 

(2)           ý            All
vested account balances.

 

(c)           Withdrawal of Employee
Contributions and Rollover Contributions -

 

(1)           Unless
otherwise provided below, Employee Contributions may be withdrawn in accordance
with Section 10.02 at any time.

 

(A)          ý            Employees
may not make withdrawals of Employee Contributions more frequently than:

 

1 Every six months.

 

(2)           Rollover Contributions
may be withdrawn in accordance with Section 10.03 at any time.

 

19

 

(d)           ý            Protected In-Service Withdrawal Provisions -
Check if the Plan was converted by plan amendment or received transfer
contributions from another defined contribution plan, and benefits under the
other defined contribution plan were payable as (check the appropriate
box(es)):

 

(1)           ý            an
in-service withdrawal of vested employer contributions maintained in a
Participant’s Account (check (A) and/or (B)):

 

(A)          ý            for
at least 24 (24 or more) months.

 

(i)            ý            Special
restrictions applied to such in-service withdrawals under the prior plan that
the Employer wishes to continue under the Plan as restated hereunder. Please
complete the Protected In-Service Withdrawals Addendum to the Adoption
Agreement identifying the restrictions.

 

(B)           o            after
the Participant has at least 60 months of participation.

 

(i)            o            Special
restrictions applied to such in-service withdrawals under the prior plan that
the Employer wishes to continue under the Plan as restated hereunder. Please
complete the Protected In-Service Withdrawals Addendum to the Adoption
Agreement identifying the restrictions.

 

(2)           o            another
in-service withdrawal option that is a “protected benefit” under Code Section
41 l(d)(6) or an in-service hardship withdrawal option not otherwise described
in Section 1.18(a). Please complete the Protected In-Service Withdrawals
Addendum to the Adoption Agreement identifying the in-service withdrawal
option(s).

 

1.19        FORM OF DISTRIBUTIONS

 

Subject to Section
13.01, 13.02 and Article 14, distributions under the Plan shall be paid as
provided below.   (Check
the appropriate box(es) and, if any forms of payment selected in (b), (c)
and/or (d) apply only to a specific class of Participants, complete Subsection
(b) of the Forms of Payment Addendum.)

 

(a)           Lump Sum Payments - Lump sum payments are always available
under the Plan.

 

(b)           ý            Installment Payments - Participants may elect distribution
under a systematic withdrawal plan (installments).

 

(c)           o            Annuities (Check if
the Plan is retaining any annuity form(s) of payment.)

 

20

 

(1)           An annuity form of
payment is available under the Plan for the following reason(s) (check (A)
and/or (B), as applicable):

 

(A)          o            As
a result of the Plan’s receipt of a transfer of assets from another defined
contribution plan or pursuant to the Plan terms prior to the Amendment
Effective Date specified in Section 1.01(g)(2), benefits were previously
payable in the form of an annuity that the Employer elects to continue to be offered
as a form of payment under the Plan.

 

(B)           o            The
Plan received a transfer of assets from a defined benefit plan or another
defined contribution plan that was subject to the minimum funding requirements
of Code Section 412 and therefore an annuity form of payment is a
protected benefit under the Plan in accordance with Code Section 41 l(d)(6).

 

(2)           The normal form of
payment under the Plan is (check (A) or (B)):

 

(A)          o            A
lump sum payment.

 

(i)            Optional
annuity forms of payment (check (1) and/or (II), as applicable). (Must check and complete (I) if
a life annuity is one of the optional annuity forms of payment under the Plan.)

 

(I)          o              A
married Participant who elects an annuity form of payment shall receive a
qualified joint and            %
(at least 50%) survivor annuity. An unmarried Participant shall receive a
single life annuity, unless a different form of payment is specified below:

 

 

(II)          o             Other
annuity form(s) of payment.   Please
complete Subsection (a) of the Forms of Payment Addendum describing the other
annuity form(s) of payment available under the Plan.

 

(B)           o            A
life annuity (complete (i) and (ii) and check (iii) if applicable).

 

(i)            The
normal form for married Participants is a qualified joint and        %
(at least 50%) survivor annuity.  The normal form for unmarried Participants is
a single life annuity, unless a different annuity form is specified below:

 

 

(ii)           The
qualified preretirement survivor annuity provided to a Participant’s spouse is
purchased with        % (at least
50%) of the Participant’s Account.

 

(iii)          o            Other
annuity form(s) of payment.  Please
complete Subsection (a) of the Forms of Payment Addendum describing the other
annuity form(s) of payment available under the Plan.

 

21

 

(d)           o            Other Non-Annuity Form(s) of Payment
- As a result of
the Plan’s receipt of a transfer of assets from another plan or pursuant to the
Plan terms prior to the Amendment Effective Date specified in 1.01(g)(2),
benefits were previously payable in the following form(s) of payment not
described in (a), (b) or (c) above and the Plan will continue to offer these
form(s) of payment:

 

 

(e)           o            Eliminated Forms of Payment Not
Protected Under Code Section 411(d)(6). Check if either (1)
under the Plan terms prior to the Amendment Effective Date or (2) under the
terms of another plan from which assets were transferred, benefits were payable
in a form of payment that will cease to be offered after a specified date.
Please complete Subsection (c) of the Forms of Payment Addendum describing the
forms of payment previously available and the effective date of the elimination
of the form(s) of payment.

 

1.20        TIMING
OF DISTRIBUTIONS

 

Except as provided in Subsection 1.20(a) or (b) and the Postponed Distribution Addendum to
the Adoption Agreement, distribution shall be made to an
eligible Participant from his vested interest in his Account as soon as
reasonably practicable following the
date the Participant’s application for distribution is received by the Administrator.

 

(a)           Required Commencement of Distribution - If a Participant does not elect to
receive benefits as of an earlier date, as permitted under the Plan,
distribution of a Participant’s Account shall begin as of the Participant’s
Required Beginning Date.

 

(b)           o            Postponed Distributions - Check if the Plan was converted by plan
amendment from another defined contribution plan that provided for the
postponement of certain distributions from the Plan to eligible Participants
and the Employer wants to continue to administer the Plan using the postponed
distribution provisions. Please complete the Postponed Distribution Addendum to
the Adoption Agreement indicating the types of distributions that are subject
to postponement and the period of postponement.

 

Note: An Employer may not provide for
postponement of distribution to a Participant beyond the 60th day following the
close of the Plan Year in which (1) the Participant attains Normal Retirement
Age under the Plan, (2) the Participant’s 10th anniversary of participation in
the Plan occurs, or (3) the Participant’s employment terminates, whichever is
latest.

 

1.21        TOP
HEAVY STATUS

 

(a)           The Plan shall be subject to the Top-Heavy Plan
requirements of Article 15 (check one):

 

(1)           o            for
each Plan Year, whether or not the Plan is a “top-heavy plan” as defined in Subsection
15.01(f).

 

(2)           o            for each Plan Year, if any, for which the
Plan is a “top-heavy plan” as defined in Subsection 15.01(f).

 

(3)           ý            Not
applicable.  (Choose only if Plan covers only
employees subject to a collective bargaining agreement.)

 

22

 

(b)           In determining whether the Plan is a “top-heavy plan”
for an Employer with at least one defined benefit plan, the following
assumptions shall apply:

 

(1)           o            Interest
rate:          % per annum.

 

(2)           o            Mortality
table:                           .

 

(3)           ý            Not
applicable.  (Choose only if either (A) Plan covers only employees
subject to a collective bargaining agreement or (B) Employer does not maintain
and has not maintained any defined benefit plan during the five-year period
ending on the applicable “determination date”, as defined in Subsection 15.01
(a).)

 

(c)           If the Plan is or is treated as a “top-heavy plan”
for a Plan Year, each non-key Employee shall receive an Employer Contribution
of at least        (3, 4, 5, or 7 1/2)% of
Compensation for the Plan Year in accordance with Section 15.03.   The minimum Employer Contribution provided
in this Subsection 1.21(c) shall be made under this Plan only if the Participant
is not entitled to such contribution under another qualified plan of the
Employer, unless the Employer elects otherwise below:

 

(1)           o            The
minimum Employer Contribution shall be paid under this Plan in any event.

 

(2)           o            Another method of
satisfying the requirements of Code Section 416.   Please complete the 416 Contribution
Addendum to the Adoption Agreement describing the way in which the minimum
contribution requirements will be satisfied in the event the Plan is or is
treated as a “top-heavy plan”.

 

(3)           ý            Not
applicable.  (Choose only if Plan covers only employees subject to a collective bargaining
agreement.)

 

Note: 
The minimum Employer contribution may be less than the percentage
indicated in Subsection 1.21(c) above to the extent provided in Section 15.03.

 

(d)           If the Plan is or is treated as a “top-heavy plan”
for a Plan Year, the following vesting schedule shall apply instead of the
schedule(s) elected in Subsection 1.15(b) for such Plan Year and each Plan Year
thereafter (check one):

 

(1)           o            Not
applicable.  (Choose only if either (A) Plan provides for Nonelective
Employer Contributions and the schedule elected in Subsection 1.15(b)(1) is at
least as favorable in all cases as the schedules available below or (B) Plan
covers only employees subject to a collective bargaining agreement.)

 

(2)           o            100%
vested after         (not in
excess of 3) years of Vesting Service.

 

(3)           o            Graded
vesting:

 

23

 

	
  Years of Vesting Service

  	
   

  	
  Vesting

  Percentage

  	
   

  	
  Must be

  at Least

  	
   

  
	
  0

  	
   

  	
   

  	
   

  	
  0

  	
  %

  
	
  1

  	
   

  	
   

  	
   

  	
  0

  	
  %

  
	
  2

  	
   

  	
   

  	
   

  	
  20

  	
  %

  
	
  3

  	
   

  	
   

  	
   

  	
  40

  	
  %

  
	
  4

  	
   

  	
   

  	
   

  	
  60

  	
  %

  
	
  5

  	
   

  	
   

  	
   

  	
  80

  	
  %

  
	
  6 or more

  	
   

  	
   

  	
   

  	
  100

  	
  %

  

 

Note: If the Plan provides for Nonelective
Employer Contributions and the schedule elected in Subsection 1.15(b)(1) is
more favorable in all cases than the schedule elected in Subsection 1.21(d)
above, then the schedule in Subsection 1.15(b)(1) shall continue to apply even
in Plan Years in which the Plan is a “top-heavy plan”.

 

1.22        CORRECTION TO MEET 415 REQUIREMENTS UNDER MULTIPLE
DEFINED CONTRIBUTION PLANS

 

If the Employer
maintains other defined contribution plans, annual additions to a Participant’s
Account shall be limited as provided in Section 6.12 of the Plan to meet the
requirements of Code Section 415, unless the Employer elects otherwise below
and completes the 415 Correction Addendum describing the order in which annual
additions shall be limited among the plans.

 

(a)           o            Other Order for Limiting Annual
Additions

 

1.23        INVESTMENT DIRECTION

 

Investment Directions - Participant Accounts shall be invested
(check one):

 

(a)           o            in
accordance with the investment directions provided to the Trustee by the Employer
for allocating all Participant Accounts among the Options listed in the Service
Agreement.

 

(b)           ý            in
accordance with the investment directions provided to the Trustee by each Participant
for allocating his entire Account among the Options listed in the Service
Agreement.

 

(c)           o            in
accordance with the investment directions provided to the Trustee by each
Participant for all contribution sources in his Account, except that the
following sources shall be invested in accordance with the investment
directions provided by the Employer (check (1) and/or (2)):

 

24

 

(1)           o            Nonelective
Employer Contributions

 

(2)           o            Matching
Employer Contributions

 

The Employer
must direct the applicable sources among the same investment options made
available for Participant directed sources listed in the Service Agreement.

 

1.24        RELIANCE ON OPINION LETTER

 

An adopting
Employer may rely on the opinion letter issued by the Internal Revenue Service
as evidence that this Plan is qualified under Code Section 401 only to the
extent provided in Announcement 2001-77, 2001-30 I.R.B. The Employer may not
rely on the opinion letter in certain other circumstances or with respect to
certain qualification requirements, which are specified in the opinion letter
issued with respect to this Plan and in Announcement 2001-77. In order to have
reliance in such circumstances or with respect to such qualification requirements,
application for a determination letter must be made to Employee Plans
Determinations of the Internal Revenue Service. Failure to fill out the
Adoption Agreement properly may result in disqualification of the Plan.

 

This Adoption
Agreement may be used only in conjunction with Fidelity Basic Plan Document No.
02. The Prototype Sponsor shall inform the adopting Employer of any amendments
made to the Plan or of the discontinuance or abandonment of the prototype plan
document.

 

1.25       PROTOTYPE
INFORMATION:

 

	
  Name of
  Prototype Sponsor:

  	
   

  	
  Fidelity
  Management & Research Company

  
	
  Address of
  Prototype Sponsor:

  	
   

  	
  82
  Devonshire Street

  
	
   

  	
   

  	
  Boston, MA
  02109

  

 

Questions
regarding this prototype document may be directed to the following telephone
number:

1-800-343-9184.

 

25

 

EXECUTION PAGE

(Fidelity’s Copy)

 

IN WITNESS WHEREOF, the
Employer has caused this Adoption
Agreement to be executed this
            day of
                              ,           .

 

	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

Accepted by:

 

Fidelity Management Trust Company, as Trustee

 

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

26

 

EXECUTION PAGE

(Employer’s Copy)

 

IN WITNESS WHEREOF, the
Employer has caused this Adoption Agreement to be executed this 20th day of November, 2002.

 

	
  Employer:

  	
  Jazz Semiconductor

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ DANIEL LYNCH

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Vice President, Human Resources

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employer:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accepted by: Fidelity Management Trust Company, as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Cynthia A. Davis

  	
   

  	
  Date:

  	
  12-13-02

  	
   

  
	
  Title:

  	
     Cynthia A.
  Davis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
   

  	
   

  

 

27

 

AMENDMENT EXECUTION PAGE

 

This page is
to be completed in the event the Employer modifies any prior election(s) or
makes a new election(s) in this Adoption Agreement. Attach the amended page(s)
of the Adoption Agreement to this execution page.

 

The following
section(s) of the Plan are hereby amended effective as of the date(s) set forth
below:

 

	
  Section Amended

  	
   

  	
  Page

  	
   

  	
  Effective Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN WITNESS
WHEREOF, the Employer has caused this Amendment to be executed this
            day of
               ,              .

 

 

	
  Employer:

  	
   

  	
   

  	
  Employer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted by:

  
	
   

  
	
  Fidelity
  Management Trust Company, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
											

 

28

 

ADDENDUM

 

Re: SPECIAL EFFECTIVE
DATES

for

 

Plan Name:           Jazz Semiconductor Hourly Savings
Plan

 

(a)           ý            Special Effective Dates for Other Provisions - The
following provisions (e.g., new eligibility requirements, new contribution
formula, etc.) shall be effective as of the dates specified herein:

 

Section 1.10
Matching Contribution, shall be effective on the date specified herein.  Prior to that date, match will be 52% of
deferral contributions; the maximum matching contribution for the plan shall-be
$650.

 

 

 

(b)           o            Plan Merger Effective Dates - The following plan(s)
were merged into the Plan after the Effective Date indicated in Subsection
1.01(g)(1) or (2), as applicable. The provisions of the Plan are effective with
respect to the merged plan(s) as of the date(s) indicated below:

 

	
  (1)

  	
  Name of merged
  plan:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective
  date:

  

 

29

 

	
  (2)

  	
  Name of merged
  plan:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective
  date:

  

 

	
  (3)

  	
  Name of
  merged plan:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective
  date:

  

 

	
  (4)

  	
  Name of
  merged plan:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective
  date:

  

 

	
  (5)

  	
  Name of
  merged plan:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective
  date:

  

 

30

 

ADDENDUM

 

Re: SAFE HARBOR MATCHING EMPLOYER CONTRIBUTION

for

 

Plan Name:           Jazz
Semiconductor Hourly Savings Plan

 

(a)           Safe Harbor Matching Employer
Contribution Formula

 

Note:  Matching
Employer Contributions made under this Option must be 100% vested when made and
may only be distributed because of death, disability, separation from service,
age 59 1/2, or termination of the Plan without the establishment of a successor
plan. In addition, each Plan Year, the Employer must provide written notice to
all Active Participants of their rights and obligations under the Plan.

 

(1)           o            100%
of the first 3% of the Active Participant’s Compensation contributed to the
Plan and 50% of the next 2% of the Active Participant’s Compensation
contributed to the Plan.

 

(A)          o            Safe
harbor Matching Employer Contributions shall not be made on behalf of
Highly Compensated Employees.

 

Note:  If
the Employer selects this formula and does not elect Option 1.10(b),
Additional Matching Employer Contributions, Matching Employer Contributions
will automatically meet the safe harbor contribution requirements for deemed
satisfaction of the “ACP” test. (Employee Contributions must still be tested.)

 

(2)           o            Other
Enhanced Match:

 

          %
of the first           
% of the Active Participant’s Compensation contributed to the plan,

 

          %
of the next            % of
the Active Participant’s Compensation contributed to the plan,

 

          %
of the next            % of
the Active Participant’s Compensation contributed to the plan.

 

31

 

Note:  To
satisfy the safe harbor contribution requirement for the “ADP” test, the
percentages specified above for Matching Employer Contributions may not
increase as the percentage of Compensation contributed increases, and the
aggregate amount of Matching Employer Contributions at such rates must at least
equal the aggregate amount of Matching Employer Contributions which would be
made under the percentages described in (a)(1) of this Addendum.

 

(A)          o            Safe
harbor Matching Employer Contributions shall not be made on behalf of
Highly Compensated Employees.

 

(B)           o            The
formula specified above is also intended to satisfy the safe harbor
contribution requirement for deemed satisfaction of the “ACP” test with respect
to Matching Employer Contributions. (Employee Contributions must still be
tested.)

 

Note:   
To satisfy the safe harbor contribution requirement for the “ACP” test,
the Deferral Contributions and/or Employee Contributions matched cannot exceed
6% of a Participant’s Compensation.

 

32

 

ADDENDUM

 

Re: SAFE
HARBOR NONELECTIVE EMPLOYER CONTRIBUTION

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                  Safe Harbor Nonelective Employer Contribution
Election

 

(1)                                  o                      For
each Plan Year, the Employer shall contribute for each eligible Active
Participant an amount equal to             % (not less than 3%
nor more than 15%) of such
Active Participant’s Compensation.

 

(2)                                  o                      The
Employer may decide each Plan Year whether to amend the Plan by electing and
completing (A) below to provide for a contribution on behalf of each eligible
Active Participant in an amount equal to at least 3% of such Active
Participant’s Compensation.

 

Note:     An
Employer that has selected Subsection (a)(2) above must amend the Plan by
electing (A) below and completing the Amendment Execution Page no later than 30
days prior to the end of each Plan Year for which safe harbor Nonelective
Employer Contributions are being made.

 

(A)                o                                    For
the Plan Year beginning             ,
the Employer shall contribute for each eligible Active Participant an amount
equal to       % (not less than
3% nor more than 15%) of such Active Participant’s Compensation.

 

Note: Safe harbor
Nonelective Employer Contributions must be 100% vested when made and may only
be distributed because of death, disability, separation from service, age 59
1/2, or termination of the Plan without the establishment of a successor plan.
In addition, each Plan Year, the Employer must provide written notice to all
Active Participants of their rights and obligations under the Plan.

 

(b)                                 o                      Safe
harbor Nonelective Employer Contributions shall not be made on behalf of
Highly Compensated Employees.

 

(c)                                  o                      In
conjunction with its election of the safe harbor described above, the Employer
has elected to make Matching Employer Contributions under Subsection 1.10 that
are intended to meet the requirements for deemed satisfaction of the “ACP” test
with respect to Matching Employer Contributions.

 

33

 

ADDENDUM

 

Re:
PROTECTED IN-SERVICE WITHDRAWALS

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                  Restrictions on In-Service
Withdrawals of Amounts Held for Specified Period - The following restrictions apply to in-service
withdrawals made in accordance with Subsection 1.18(d)(1)(A) (cannot include any mandatory
suspension of contributions restriction):

 

Participants may elect to make an in-service
withdrawal of vested employer matching contributions once every six months,
provided the money has been in the account for at least 24 months or more.

 

 

 

(b)                                 Restrictions
on In-Service Withdrawals Because
of Participation in Plan for 60 or More Months - The following restrictions apply to in-service withdrawals made
in accordance with Subsection 1.18(d)(1)(B) (cannot include any mandatory suspension of contributions restriction):

 

 

 

(c)                                  o                                    Other In-Service Hardship Withdrawal Provisions - In-service hardship withdrawals are
permitted from a Participant’s Deferral Contributions Account and the other
sub-accounts specified below, subject to the conditions otherwise applicable to
hardship withdrawals from a Participant’s Deferral Contributions Account:

 

 

 

34

 

(d)                                 o                                    Other In-Service Withdrawal
Provisions - In-service
withdrawals from a Participant’s Accounts specified below shall be available to
Participants who satisfy the requirements also specified below:

 

 

 

(1)                                  o                                    The
following restrictions apply to a Participant’s Account following an in-service
withdrawal made pursuant to (d) above (cannot include any
mandatory suspension of contributions restriction):

 

 

 

35

 

ADDENDUM

 

Re: FORMS
OF PAYMENT

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                  The
following optional forms of annuity will continue to be offered under the Plan:

 

 

(b)                                 The
forms of payment described in Section 1.19(b), (c) and/or (d) apply to the
following class(es) of Participants:

 

 

Note: Please
indicate if different classes of Participants are subject to different forms of
payment.

 

(c)                                  The
following forms of payment were previously available under the Plan but will be
eliminated as of the date specified in subsection (4) below (check the
applicable (box(es) and complete (4)):

 

(1)                                  o                                    Installment Payments.

 

(2)                                  o                                    Annuities.

 

(A)                              o                                    The
normal form of payment under the Plan was a lump sum and all optional annuity
forms of payment not listed under Section 1.19(c)(2)(A)(i) are eliminated. The
eliminated forms of payment include the following:

 

(B)                                o                                    The
normal form of payment under the Plan was a life annuity and all annuity forms
of payment not listed under Section 1.19(c)(2)(B) are eliminated. (Complete (i) and (ii) and, if
applicable, (iii).)

 

 

(i)                                     The
normal form for married Participants was a qualified joint and      %
(at least 50%) survivor annuity. The
normal form for unmarried Participants was a single life annuity, unless a
different form is specified below:

 

(ii)                                  The
qualified preretirement survivor annuity provided to a Participant’s spouse was
purchased with      % (at least
50%) of the Participant’s Account.

 

(iii)                               The
other annuity form(s) of payment previously available under the Plan included
the following:

 

 

36

 

(3)                                  o                                    Other Non-Annuity Forms of
Payment.  All other non-annuity forms of
payment that are not listed in Section 1.19(d) but that were previously
available under the Plan are eliminated. 
The eliminated non-annuity forms of payment include the following:

 

 

(4)                                  The
form(s) of payment described in this Subsection (c) will not be offered to
Participants who have an Annuity Starting Date which occurs on or after         (cannot be earlier than September
6, 2000).  Notwithstanding
the date entered above, the forms of payment described in this Subsection (c)
will continue to be offered to Participants who have an Annuity Starting Date
that occurs (1) within 90 days following the date the Employer provides
affected Participants with a summary that satisfies the requirements of 29 CFR
2520.104b-3 and that notifies them of the elimination of the applicable form(s)
of payment, but (2) no later than the first day of the second Plan Year
following the Plan Year in which the amendment eliminating the applicable
form(s) of payment is adopted.

 

37

 

ADDENDUM

 

Re:
VESTING SCHEDULE

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                      More Favorable Vesting Schedule

 

(1)                                  The
following vesting schedule applies to the class of Participants described in
(a)(2) below:

 

 

 

 

 

(2)                                  The vesting schedule
specified in (a)(1) above applies to the following class of Participants:

 

 

(b)                                  o                                    Additional Vesting Schedule

 

(1)                                  The
following vesting schedule applies to the class of Participants described in
(b)(2) below:

 

 

 

 

(2)                                  The
vesting schedule specified in (b)(1) above applies to the following class of
Participants:

 

 

38

 

ADDENDUM

 

Re:
POSTPONED DISTRIBUTIONS

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

Postponement of Certain Distributions to Eligible
Participants - The
types of distributions specified below to eligible Participants of their vested
interests in their Accounts shall be postponed for the period also specified
below:

 

 

 

 

 

 

Notwithstanding the foregoing, if the
Employer selected an Early Retirement Age in Subsection 1.14(b) that is the
later of an attained age or completion of a specified number of years of
Vesting Service, any Participant who terminates employment on or after
completing the required number of years of Vesting Service, but before
attaining the required age shall be eligible to commence distribution of his
vested interest in his Account upon attaining the required age.

 

39

 

ADDENDUM

 

Re:
415 CORRECTION

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                  Other Formula for Limiting Annual Additions to Meet 415 - If the Employer, or any employer
required to be aggregated with the Employer under Code Section 415, maintains any
other qualified defined contribution plans or any “welfare benefit fund”,
“individual medical account”, or “simplified medical account”, annual additions
to such plans shall be limited as follows to meet the requirements of Code
Section 415:

 

 

 

 

 

 

40

 

ADDENDUM

 

Re:
416 CONTRIBUTION

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

(a)                                 Other
Method of Satisfying the Requirements of 416 - If the Employer, or any employer required to be aggregated
with the Employer under Code Section 416, maintains any other qualified defined
contribution or defined benefit plans, the minimum benefit requirements of Code
Section 416 shall be satisfied as follows:

 

 

 

 

 

 

41

 

SNAP
OFF ADDENDUM

 

Re:
EFFECTIVE DATES FOR GUST COMPLIANCE

for

 

Plan Name:                                 Jazz
Semiconductor Hourly Savings Plan

 

Notwithstanding any other provision of the
Plan to the contrary, to comply with changes required by the Retirement
Protection Act of 1994 (“GATT”), the Uniformed Services Employment and
Reemployment Rights Act of 1994 (“USERRA”), the Small Business Job Protection
Act of 1996 (“SBJPA”), the Taxpayer Relief Act of 1997 (“TRA ‘97”) and the
Internal Revenue Service Restructuring and Reform Act of 1998 (collectively,
“GUST”), the following provisions shall apply effective as of the dates set
forth below:

 

(a)                                  The following elections were in effect for Plan Years
beginning on or after January 1, 1997 and ending before the date specified in
Subsection 1.01(g)(2):

 

(1)                                  HCE Determinations History - The Plan was operated in accordance
with the provisions of Subsections 1.06(a) and 1.06(b), unless otherwise
provided below.

 

(A)                              o                                    HCE Determinations: Look Back Year Elections - For the
following Plan Year(s), the Plan was operated in accordance with a different
look back year election as provided below;

 

(B)                                o                                    HCE Determinations: Top Paid Group Elections - For the
following Plan Year(s), the Plan was operated in accordance with a different
top paid group election as provided below:

 

(2)                                  ADP/ACP Testing Methods History - The Plan was operated using the testing
method shown in Subsection 1.06(a), unless otherwise provided below.

 

(A)                              ý                                    For
the following Plan Years, the Plan was operated in accordance with a different
method as provided below:

 

2002 - Current
Year

 

(3)                                  First Year Testing Method - If the first Plan Year that the Plan, other than a successor plan,
permitted Deferral Contributions or provided for either Employee or Matching
Employer Contributions, occurred on or after January 1, 1997 but prior to the
Effective Date specified in Subsection 1.01(g)(2), the “ADP” and/or “ACP” test
for such first Plan Year was applied using the actual “ADP” and/or “ACP” of
Non-Highly Compensated Employees for such first Plan Year, unless otherwise
provided below.

 

(A)                              o                                    The
“ADP” and/or “ACP” test for the first Plan Year that the Plan permitted
Deferral Contributions or provided for either Employee or Matching Employer
Contributions was applied assuming a 3% “ADP” and/or “ACP” for Non-Highly
Compensated Employees.

 

42

 

(b)                                  The following provisions are
effective as of the following dates, except as otherwise provided in the applicable Subsection(s)(A):

 

(1)                                  The
definition of “Required Beginning Date” in Subsection 2.01(ss) is effective
January 1, 1997.

 

(A)                              o                                    Later
effective date applicable to the definition of Required Beginning Date in
Subsection 2.01(ss):             (Cannot be later than the January 1 following the date
specified in Subsection 1.01(g)(2)).

 

(2)                                  The
elimination of all family aggregation rules is effective for Plan Years
beginning on or after January 1, 1997.

 

(A)                              o                                    Later
effective date applicable to elimination of family aggregation rules:            
(Cannot be later than the first day of the
Plan Year in which the date specified in Subsection
l.01(g)(2) occurs).

 

(3)                                  The
inclusion in Compensation for purposes of Code Section 415 of amounts excluded from gross income under a
salary reduction agreement by reason of the application of Code Sections 125.402(e)(3),
402(b), or 403(b), as provided in Subsection 6.12(d), is effective for
Limitation Years beginning on or after January 1, 1998.

 

(A)                              o                                    Later
effective date applies to modification of definition of Compensation for Code Section
415 purposes:             (Cannot be later than the first day of the Limitation Year
in which the date specified in Subsection 1.0l(g)(2) occurs).

 

(4)                                  The
increase in the cash out limitation from $3,500 to $5,000 is effective the first
day of the first Plan Year beginning after August 5, 1997.

 

(A)                              o                                    Later
effective date applies to increase in cash out limitation:             (Cannot be later than the date specified in
Subsection 1.01(g)(2)).

 

(5)                                  The
elimination of the “look back” requirement for mandatory cashouts with respect
to Participants whose Accounts are not subject to the requirements of Section
14.04 shall be effective with respect to distributions made on or after March
22, 1999.

 

(A)                              o                                    Later
effective date applies to elimination of look back requirement for mandatory
cashouts:             (Cannot be later than the date specified in Subsection
1.01(g)(2)).

 

(6)                                  The
exclusion from the definition of 
“eligible rollover distribution” in Subsection 13.04(c) of hardship
withdrawals of Deferral Contributions made in accordance with the provisions of
Section 10.05 or the Protected In-Service Withdrawal Addendum to the Adoption
Agreement is effective for distributions made on or after January 1, 1999.

 

(A)                              o                                    Later
effective date applies to rollover treatment of hardship withdrawals of
Deferral Contributions:             (Cannot be later than the earlier of January 1, 2000
or the date specified in Subsection 1.01(g)(2)).

 

43

 

(c)                                  The following provisions are effective as of the following dates:

 

(1)                                  The
inclusion in Compensation of amounts excluded from gross income under a salary
reduction agreement by reason of the application of Code Sections 132(f) (4) (the
“132(f) Amendment”), as provided in Subsections 2.0l(s) and 2.0l(z) and
Sections 5.02 and 15.03 is effective for Plan Years beginning on or after
January 1, 2001, or, if earlier, the first day of the Plan Year in which the
Plan has been operated in accordance with the 132(f) Amendment, but, in no case
earlier than the first Plan Year beginning on or after January 1, 1998.

 

The 132(f) Amendment, as provided in
Subsection 6.12(d) is effective for Limitation Years beginning on or after
January 1, 2001, or, if earlier, the first day of the Limitation Year in which
the Plan has been operated in accordance with the 132(f) Amendment, but, in no
case earlier than the first Limitation Year beginning on or after January 1,
1998.

 

(2)                                  The
definition of “Highly Compensated Employee” in Subsection 2.01(z) is effective
for Plan Years beginning on or after January 1, 1997.

 

(3)                                  The
definition of “Leased Employee” in Subsection 2.01(cc) is effective for Plan
Years beginning on or after January 1, 1997.

 

(4)                                  The
change in the “maximum permissible amount”, as defined in Subsection 6.01(r),
to $30,000 adjusted for cost of living increases, is effective for Limitation
Years beginning on or after January 1, 1995.

 

(5)                                  The
rules for applying the “ADP” test, described in Section 6.03, and the “ACP”
test, described in Section 6.06 are effective for Plan Years beginning on or
after January 1, 1997.

 

(6)                                  The
rules for allocating and distributing “excess contributions”, as provided in
Section 6.04, and the rules for allocation, distribution and forfeiture of
“excess aggregate contributions”, as provided in Section 6.07 are effective for
Plan Years beginning on or after January 1, 1997.

 

(7)                                  The
4% limitation on discretionary matching employer contributions in the event the
Plan is intended to satisfy the safe harbor contribution requirements under the
Code such that the “ADP” test (and, if applicable, the “ACP” test) is deemed
satisfied is effective only for Plan Years beginning on or after January 1,
2000.

 

(8)                                  The
provisions of Section 18.03, regarding the Code Section 401(a)(13)(C) and (D)
exceptions to the nonalienability of benefits rules, apply to judgments,
orders, and decrees issued and settlement agreements entered into on or after
August 5, 1997.

 

(9)                                  The
provisions of Section 18.07, regarding veterans reemployment rights, are
effective December 12, 1994.

 

44

 

(d)                                 For
Plan Years ending before the date specified in Subsection 1.01(g)(2), the
provisions of this amendment and restatement that are related to GUST shall
apply in accordance with the provisions of this amendment and restatement,
except as otherwise provided below:

 

 

 

(e)                                  For Plan Years ending
before the date specified in Subsection 1.01(g)(2), the provisions of this
amendment and restatement that are related to GUST shall apply to all plans
merged into the Plan during the period covered by this Addendum except to the
extent any such merged plan is amended to provide otherwise or as provided
below:

 

 

 

 

45

 

THE
CORPORATE PLAN FOR RETIREMENTSM  (profit sharing/401) (k) plan)

ADDENDUM
TO ADOPTION AGREEMENT

 

FIDELITY
BASIC PLAN DOCUMENT No. 02

 

RE:
ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 (“EGTRRA”)

AMENDMENTS for

 

Plan Name: Jazz Semiconductor Hourly Savings Plan 

 

PREAMBLE

 

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

 

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

 

(a)                                  Catch-up Contributions. The Employer must select either (1) or
(2) below to indicate whether eligible Participants age 50 or older by the end
of a calendar year will be permitted to make catch-up contributions to the
Plan, as described in Section

5.03(b)(1):

 

(1)                                  ý                                    Catch-up
contributions shall apply effective January 1, 2002, unless a later effective
date is specified herein,        .

 

(2)                                    o                                    Catch-up
contributions shall not apply.

 

Note: The Employer
must not select (a)(1) above unless all
plans of all employers treated, with the Employer, as a single employer under
subsections (b), (c), (m), or (o) of Code Section 414 also permit catch up
contributions (except a plan maintained by the Employer that is qualified under
Puerto Rico law), as provided in Code Section 414(v)(4) and IRS guidance issued
thereunder. The effective date applicable to catch-up contributions must
likewise be consistent among all plans described immediately above, to the
extent required in Code Section 414(v)(4) and IRS guidance issued thereunder.

 

(b)                                  Plan Limit on Elective Deferral for Plans Permitting Catch-up
Contributions.  This
Section (b) is inapplicable if the Plan converted to this Fidelity document
from any other document effective after April 1, 2002.

 

For Plans that permit catch-up contributions
beginning on or before April 1, 2002, pursuant to (a)(1) above, the 60% Plan
Limit described in Section 5.03(b)(2) shall apply beginning April 1, 2002,
unless (b)(1) or (b)(2) is selected below. For Plans that permit catch up
contributions beginning after April 1, 2002, pursuant to (a)(1) above, the Plan
Limit set out in Section 1.07(a)(1) shall continue to apply unless and until
the Employer’s election in (b)(2) below, if any, provides for a change in the
Plan Limit.

 

(1)                                    ý                                    The
Plan Limit set out in Section 1.07(a)(1) shall continue to apply on and after
April 1, 2002.

 

(2)                                  o                                    The
Plan Limit set out in Section 1.07(a)(1) shall continue to apply until (cannot
be before April 1, 2002), and the Plan Limit after that date shall be of
Compensation each payroll period.

 

1

 

(c)                                  Matching Employer Contributions
on Catch-up Contributions. The
Employer must select the box below only if the Employer selected (a)(1) above,
and the Employer wants to provide Matching Employer Contributions on catch-up
contributions. In that event, the same rules that apply to Matching Employer
Contributions on Deferral Contributions other than catch-up contributions will
apply to Matching Employer Contributions on catch-up contributions.

 

o                                    Notwithstanding
anything in 2.01(1) to the contrary, Matching Employer Contributions under
Section 1.10 shall apply to catch-up contributions described in Section
5.03(b)(1).

 

(d)                                 Vesting of Matching Employer
Contributions.  Complete this section (d) only if
the vesting schedule for Matching Employer Contributions under the Plan must be
amended to comply with EGTRRA. This is the case if, in the absence of an
amendment, the vesting schedule for Matching Employer Contributions would not
be at least as rapid as Three-Year Cliff or Six-Year Graded Vesting, effective
for Participants with at least one Hour of Service on or after the first Plan
Year beginning after December 31, 2001, subject to the rule described in (2)
below. Complete (d)(1) to specify the new vesting schedule; any vesting
schedule changes must conform to the requirements of Section 16.04 of the Plan.
Only complete (d)(2) if your Plan is maintained pursuant to a collective
bargaining agreement ratified by June 7, 2001. Complete (d)(3) if the Employer
wants to apply the vesting schedule selected in (d)(1) to only the portion of a
Participant’s accrued benefits derived from Matching Employer Contributions for
Plan Years beginning after December 31, 2001.

 

(1)                                  Vesting Schedule for Matching
Employer Contributions. Unless
the Employer checks the box in (d)(3) of this EGTRRA Amendments Addendum, the
Vesting Schedule set forth below shall apply to all accrued benefits derived
from Matching Employer Contributions for Participants who complete an Hour of
Service under the Plan in a Plan Year beginning after December 31, 2001,
regardless of the Plan Year for which such contributions are made, subject to
the Employer’s election of a later effective date as indicated in (d)(2) below:

 

o                                    100%
Vesting immediately

ý                                    3-Year
Cliff (see C below)

o                                    6-Year
Graded (see E below)

o                                    Other
Vesting Schedule (complete G3 below, but must be at least as favorable as
either C or E)

 

 

	
  Applicable Vesting Schedule

  	
   

  
	
  Years of

  Vesting Service

  	
   

  	
  C

  	
   

  	
  E

  	
   

  	
  G3

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
  %

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
  %

  
	
  2

  	
   

  	
  0

  	
  %

  	
  20

  	
  %

  	
   

  	
  %

  
	
  3

  	
   

  	
  100

  	
  %

  	
  40

  	
  %

  	
   

  	
  %

  
	
  4

  	
   

  	
  100

  	
  %

  	
  60

  	
  %

  	
   

  	
  %

  
	
  5

  	
   

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
  %

  
	
  6 or more

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

2

 

(2)                                  Delayed Effective Date for Plans
Subject to Collective Bargaining.  If the plan is maintained pursuant
to one or more collective bargaining agreements ratified by June 7, 2001, the
effective date for faster vesting of Matching Employer Contributions for
Participants covered by such a collective bargaining agreement can be delayed
by checking the box below and inserting the effective date, which is the first
day of the first Plan Year beginning on or after the earlier of (i) January 1,
2006, or (ii) the later of the date on which the last of the collective
bargaining agreements described above terminates (without regard to any extension
on or after June 7, 2001), or January 1, 2002.

 

ý            The vesting schedule
elected by the Employer in (d)(1) above shall apply to those Participants
covered by a collective bargaining agreement(s) ratified by June 7, 2001, who
have at least one Hour of Service on or after 05/01/2003. Unless the
Employer selects the box in (d)(3) below, the vesting schedule selected in (d)(1)
above shall apply to the entire accrued benefit derived from Matching Employer
Contributions of such Participants with an Hour of Service in a Plan Year
beginning on or after the date specified herein. For all other Participants,
the vesting schedule shall apply as of the date and in the manner described in
(d)(1) and, where applicable, (d)(3).

 

(3)                                  Grandfathered Application of
Prior Vesting Schedule. The
Employer must check the box below only if the Employer wants to grandfather an
existing vesting schedule and apply the vesting schedule that the Employer
selected in (d)(1) above to only that portion of a Participant’s accrued
benefit derived from Matching Employer Contributions for Plan Years beginning
after December 31, 2001, (and/or for Plan Years beginning on or after the date
specified in (d)(2), for any Participants subject to (d)(2), if selected by the
Employer).

 

o            The Vesting Schedule
in (d)(1) above shall apply only to the portion of a Participant’s accrued
benefits derived from Matching Employer Contributions under the Plan in a Plan
Year beginning after December 31, 2001, or such later date applicable to the
Participant if specified in (d)(2) above.

 

(e)                                  Rollovers of After-Tax Employee
Contributions to the Plan. The
Employer must mark the box below only if the Employer does not want the
Plan to accept Participant Rollover Contributions of qualified plan after-tax
employee contributions, as described in Section 5.06, which would otherwise be
effective for distributions after December 31, 2001:

 

o                                    Participant
Rollover Contributions or direct rollovers of qualified plan after-tax employee contributions shall not
be accepted by the Plan at any time.

 

(f)                                    Application of the Same Desk
Rule. The Employer
must mark the box below only if the Employer wants to discontinue the
application of the same desk rule set forth in Section 12.01(a).

 

o                                    Effective
for distributions from the Plan after December 31, 2001, or such later date as
specified herein             ,
a Participant’s elective deferrals, qualified nonelective contributions and
qualified matching contributions, if applicable, and earnings attributable to
such amounts shall be distributable, upon a severance from employment as
described in Section 12.01 (b), effective only for severances occurring after             (or,
if no date is entered, regardless of when the severance occurred).

 

3

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