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Exhibit 10.1    
  

 
 

PETCO ANIMAL SUPPLIES 401(K) PLAN    
  

 
 
 

ADOPTION AGREEMENT #009
  NONSTANDARDIZED 401(k) PROFIT SHARING PLAN    
  

        The undersigned, Petco Animal Supplies, Inc. ("Employer"), by executing this Adoption Agreement, elects to establish a retirement plan and trust ("Plan") under
the The Chicago Trust Company Master Retirement Plan (basic plan document # 01). The Employer, subject to the Employer's Adoption Agreement elections, adopts fully the Prototype Plan and Trust
provisions. This Adoption Agreement, the basic plan document and any attached appendices or addenda, constitute the Employer's entire plan and trust document. All section
references within this Adoption Agreement are Adoption Agreement section references unless the Adoption Agreement or the context indicate otherwise. All article references are basic plan document and
Adoption Agreement references as applicable. Numbers in parenthesis which follow headings are references to basic plan document sections. The Employer makes the following
elections granted under the corresponding provisions of the basic plan document. 

 
 

ARTICLE I
  DEFINITIONS    
  

	1.	 	PLAN (1.21). The name of the Plan as adopted by the Employer is Petco Animal Supplies 401(k) Plan.
	

2.	
 	
TRUSTEE (1.33). The Trustee executing this Adoption Agreement is: (Choose one of (a), (b) or (c))
	
[n/a]	
 	

(a)	
 	
A discretionary Trustee. See Plan Section 10.03[A].
	
[X]	
 	

(b)	
 	
A nondiscretionary Trustee. See Plan Section 10.03[B].
	
[n/a]	
 	

(c)	
 	
A Trustee under a separate trust agreement. See Plan Section 10.03[G].
	

3.	
 	
EMPLOYEE (1.11). The following Employees are not eligible to participate in the Plan: (Choose (a) or one or more of (b) through
(g) as applicable)
	
[n/a]	
 	

(a)	
 	
No exclusions.
	
[X]	
 	

(b)	
 	
Collective bargaining Employees.
	
[X]	
 	

(c)	
 	
Nonresident aliens.
	
[X]	
 	

(d)	
 	
Leased Employees.
	

[n/a]	
 	

(e)	
 	
Reclassified Employees.
	

[n/a]	
 	

(f)	
 	
Classifications:                        .
	
[n/a]	
 	

(g)	
 	
Exclusions by types of contributions. The following classification(s) of Employees are not eligible for the specified contributions:
	

 	
 	

 	
 	

 	
 	
Employee classification:

Contribution type:
	
4.	
 	
COMPENSATION (1.07). The Employer makes the following election(s) regarding the definition of Compensation for purposes of the contribution allocation formula under
Article III: (Choose one of (a), (b) or (c))
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

1

 

	
[n/a]	
 	

(a)	
 	
W-2 wages increased by Elective Contributions.
	
[X]	
 	

(b)	
 	
Code §3401(a) federal income tax withholding wages increased by Elective Contributions.
	
[n/a]	
 	

(c)	
 	
415 compensation.
	

[Note: Each of the Compensation definitions in (a), (b) and (c) includes Elective Contributions. See Plan Section 1.07(D). To exclude Elective Contributions, the Employer must elect (g).]
	
Compensation taken into account.    For the Plan Year in which an Employee first becomes a Participant, the Plan Administrator will determine the allocation of Employer
contributions (excluding deferral contributions) by taking into account: (Choose one of (d) or (e))
	
[X]	
 	

(d)	
 	
Plan Year. The Employee's Compensation for the entire Plan Year.
	
[n/a]	
 	

(e)	
 	
Compensation while a Participant. The Employee's Compensation only for the portion of the Plan Year in which the Employee actually is a Participant.
	
Modifications to Compensation definition.    The Employer elects to modify the Compensation definition elected in (a), (b) or (c) as follows. (Choose one or more of (f) through (n) as applicable. If the Employer elects to allocate its nonelective contribution under Plan Section 3.04 using permitted disparity, (i), (j), (k) and (l) do not apply)
:
	
[n/a]	
 	

(f)	
 	
Fringe benefits. The Plan excludes all reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation and welfare benefits.
	
[n/a]	
 	

(g)	
 	
Elective Contributions. The Plan excludes a Participant's Elective Contributions. See Plan Section 1.07(D).
	
[n/a]	
 	

(h)	
 	
Exclusion. The Plan excludes Compensation in excess of:            .
	
[n/a]	
 	

(i)	
 	
Bonuses. The Plan excludes bonuses.
	
[n/a]	
 	

(j)	
 	
Overtime. The Plan excludes overtime.
	
[n/a]	
 	

(k)	
 	
Commissions. The Plan excludes commissions.
	
[n/a]	
 	

(l)	
 	
Nonelective contributions. The following modifications apply to the definition of Compensation for nonelective
contributions:            .
	
[X]	
 	

(m)	
 	
Deferral contributions. The following modifications apply to the definition of Compensation for deferral contributions: Compensation includes each amount as paid on a payroll-by-payroll basis,
subject to the general definition of and any exclusions from Compensation indicated above.
	
[n/a]	
 	

(n)	
 	
Matching contributions. The following modifications apply to the definition of Compensation for matching
contributions:            .
	

5.	
 	
PLAN YEAR/LIMITATION YEAR (1.24). Plan Year and Limitation Year mean the 12-consecutive month period (except for a short Plan Year) ending every: (Choose (a) or (b). Choose (c) if applicable)
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

2

 

	
[X]	
 	

(a)	
 	
December 31.
	
[n/a]	
 	

(b)	
 	
Other:            .
	
[n/a]	
 	

(c)	
 	
Short Plan Year: commencing on:            and ending
on:            .
	

6.	
 	
EFFECTIVE DATE (1.10). The Employer's adoption of the Plan is a: (Choose one of (a) or (b))
	
[n/a]	
 	

(a)	
 	
New Plan. The Effective Date of the Plan is:            .
	
[X]	
 	

(b)	
 	
Restated Plan. The restated Effective Date is: January 1, 1997.
	

 	
 	

 	
 	

This Plan is an amendment and restatement of an existing retirement plan(s) originally established effective as of: January 1, 1992.
	

7.	
 	
HOUR OF SERVICE/ELAPSED TIME METHOD (1.15). The crediting method for Hours of Service is: (Choose one or more of (a) through (d) as
applicable)
	
[X]	
 	

(a)	
 	
Actual Method. See Plan Section 1.15(B).
	
[n/a]	
 	

(b)	
 	
Equivalency Method. The Equivalency Method is:                        .
[Note: Insert "daily," "weekly," "semi-monthly payroll periods" or "monthly."] See Plan Section 1.15(C).
	
[n/a]	
 	

(c)	
 	
Combination Method. In lieu of the Equivalency Method specified in (b), the Actual Method applies for purposes
of:            .
	
[n/a]	
 	

(d)	
 	
Elapsed Time Method. In lieu of crediting Hours of Service, the Elapsed Time Method applies for purposes of crediting Service for: (Choose one or more of (1),
(2) or (3) as applicable)
	

 	
 	
[n/a]	
 	

(1)	
 	

Eligibility under Article II.
	

 	
 	
[n/a]	
 	

(2)	
 	

Vesting under Article V.
	

 	
 	
[n/a]	
 	

(3)	
 	

Contribution allocations under Article III.
	

8.	
 	
PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service the Plan must credit by reason of Section 1.30 of the Plan, the Plan credits as
Service under this Plan, service with the following predecessor employer(s): N/A.
	

[Note: If the Plan does not credit any additional predecessor service under this Section 1.30, insert "N/A" in the blank line. The Employer also may elect to credit predecessor service with specified Participating
Employers only. See the Participation Agreement.] Service with the designated predecessor employer(s) applies: (Choose one or more of (a) through (d) as applicable)
	
[n/a]	
 	

(a)	
 	
Eligibility. For eligibility under Article II. See Plan Section 1.30 for time of Plan entry.
	
[n/a]	
 	

(b)	
 	
Vesting. For vesting under Article V.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

3

 

	
[n/a]	
 	

(c)	
 	
Contribution allocation. For contribution allocations under Article III.
	
[n/a]	
 	

(d)	
 	
Exceptions. Except for the following Service:            .
	
ARTICLE II

ELIGIBILITY REQUIREMENTS
	

9.	
 	
ELIGIBILITY (2.01).
	
Eligibility conditions.    To become a Participant in the Plan, an Employee must satisfy the following eligibility conditions:
 (Choose one or
more of (a) through (e) as applicable) [Note: If the Employer does not elect (c), the Employer's elections under (a) and (b) apply to all types of contributions. The Employer as to
deferral contributions may not elect (b)(2) and may not elect more than 12 months in (b)(4) and (b)(5).]
	
[X]	
 	

(a)	
 	
Age. Attainment of age 21 (not to exceed age 21).
	
[X]	
 	

(b)	
 	
Service. Service requirement. (Choose one of (1) through (5))
	

 	
 	
[X]	
 	

(1)	
 	

One Year of Service.
	

 	
 	
[n/a]	
 	

(2)	
 	

Two Years of Service, without an intervening Break in Service. See Plan Section 2.03(A).
	

 	
 	
[n/a]	
 	

(3)	
 	

One Hour of Service (immediate completion of Service requirement). The Employee satisfies the Service requirement on his/her Employment Commencement Date.
	

 	
 	
[n/a]	
 	

(4)	
 	

            months (not exceeding 24).
	

 	
 	
[n/a]	
 	

(5)	
 	

An Employee must complete            Hours of Service within the            time period following the Employee's Employment
Commencement Date. If an Employee does not complete the stated Hours of Service during the specified time period (if any), the Employee is subject to the One Year of Service requirement. [Note: The number of hours may not
exceed 1,000 and the time period may not exceed 24 months. If the Plan does not require the Employee to satisfy the Hours of Service requirement within a specified time period, insert "N/A" in the second blank line.]
	
[n/a]	
 	

(c)	
 	
Alternative 401(k)/401(m) eligibility conditions. In lieu of the elections in (a) and (b), the Employer elects the following eligibility conditions for the following types of
contributions: (Choose (1) or (2) or both if the Employer wishes to impose less restrictive eligibility conditions for deferral/Employee contributions or for matching contributions)
	

 	
 	

 	
 	

(1)	
 	
[n/a]	
 	
Deferral/Employee contributions: (Choose one of a. through d. Choose e. if applicable)
	

 	
 	

 	
 	

 	
 	

a.	
 	
[n/a]	
 	

One Year of Service
	

 	
 	

 	
 	

 	
 	

b.	
 	
[n/a]	
 	

One Hour of Service (immediate completion of Service requirement)
	

 	
 	

 	
 	

 	
 	

c.	
 	
[n/a]	
 	

            months (not exceeding 12)
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

4

 

	

 	
 	

 	
 	

 	
 	

d.	
 	
[n/a]	
 	

An Employee must complete            Hours of Service within the            time period following an Employee's Employment
Commencement Date. If an Employee does not complete the stated Hours of Service during the specified time period (if any), the Employee is subject to the One Year of Service requirement. [Note: The number of hours may not
exceed 1,000 and the time period may not exceed 12 months. If the Plan does not require the Employee to satisfy the Hours of Service requirement within a specified time period, insert "N/A" in the second blank line.]
	

 	
 	

 	
 	

 	
 	

e.	
 	
[n/a]	
 	

Age            (not exceeding age 21)
	

 	
 	

 	
 	

(2)	
 	
[n/a]	
 	

Matching contributions:  (Choose one of f. through i. Choose j. if applicable)
	

 	
 	

 	
 	

 	
 	

f.	
 	
[n/a]	
 	

One Year of Service
	

 	
 	

 	
 	

 	
 	

g.	
 	
[n/a]	
 	

One Hour of Service (immediate completion of Service requirement)
	

 	
 	

 	
 	

 	
 	

h.	
 	
[n/a]	
 	

            months (not exceeding 24)
	

 	
 	

 	
 	

 	
 	

i.	
 	
[n/a]	
 	

An Employee must complete            Hours of Service within the            time period following an Employee's Employment
Commencement Date. If an Employee does not complete the stated Hours of Service during the specified time period (if any), the Employee is subject to the One Year of Service requirement. [Note: The number of hours may not
exceed 1,000 and the time period may not exceed 24 months. If the Plan does not require the Employee to satisfy the Hours of Service requirement within a specified time period, insert "N/A" in the second blank line.]
	

 	
 	

 	
 	

 	
 	

j.	
 	
[n/a]	
 	

Age            (not exceeding age 21)
	
[n/a]	
 	

(d)	
 	
Service requirements:                        .
	

[Note: Any Service requirement the Employer elects in (d) must be available under other Adoption Agreement elections or a combination thereof.]
	
[n/a]	
 	

(e)	
 	
Dual eligibility. The eligibility conditions of this Section 2.01 apply solely to an Employee employed by the Employer
after            . If the Employee was employed by the Employer by the specified date, the Employee will become a Participant on the latest of: (i) the Effective Date; (ii) the
restated Effective Date; (iii) the Employee's Employment Commencement Date; or (iv) on the date the Employee attains age            (not exceeding age 21).
	
Plan Entry Date.    "Plan Entry Date" means the Effective Date and: (Choose one of (f) through (j). Choose (k) if applicable)
[Note: If the Employer does not elect (k), the elections under (f) through (j) apply to all types of contributions. The Employer must elect at least one Entry Date per Plan
Year.]
	
[n/a]	
 	

(f)	
 	
Semi-annual Entry Dates. The first day of the Plan Year and the first day of the seventh month of the Plan Year.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

5

 

	
[n/a]	
 	

(g)	
 	
The first day of the Plan Year.
	
[n/a]	
 	

(h)	
 	
Employment Commencement Date (immediate eligibility).
	
[n/a]	
 	

(i)	
 	
The first day of each:             (e.g., "Plan Year quarter").
	
[X]	
 	

(j)	
 	
The following Plan Entry Dates: monthly; i.e., the first day of each pay period of the month following the month the Participant satisfies the eligibility requirements and each subsequent
payroll period.
	
[n/a]	
 	

(k)	
 	
Alternative 401(k)/401(m) Plan Entry Date(s). For the alternative 401(k)/401(m) eligibility conditions under (c), Plan Entry Date means: (Choose (1) or (2) or
both as applicable)
	

 	
 	

 	
 	

(1)	
 	
[n/a]	
 	

Deferral/Employee contributions
 (Choose one of a. through d.)
	

 	
 	

 	
 	

 	
 	

a.	
 	
[n/a]	
 	
Semi-annual Entry Dates
	

 	
 	

 	
 	

 	
 	

b.	
 	
[n/a] 	
 	

The first day of the Plan Year
	

 	
 	

 	
 	

 	
 	

c.	
 	
[n/a]	
 	
Employment Commencement Date (immediate eligibility)
	

 	
 	

 	
 	

 	
 	

d.	
 	
[n/a]	
 	
The first day of each:
	

 	
 	

 	
 	

(2)	
 	
[n/a]	
 	

Matching contributions (Choose one of e. through h.)
	

 	
 	

 	
 	

 	
 	

e.	
 	
[n/a]	
 	
Semi-annual Entry Dates
	

 	
 	

 	
 	

 	
 	

f.	
 	
[n/a]	
 	
The first day of the Plan Year
	

 	
 	

 	
 	

 	
 	

g.	
 	
[n/a]	
 	
Employment Commencement Date (immediate eligibility)
	

 	
 	

 	
 	

 	
 	

h.	
 	
[n/a]	
 	
The first day of each:
	
Time of participation.    An Employee will become a Participant, unless excluded under Section 1.11, on the Plan Entry Date (if employed on that date): (Choose one of (l), (m) or (n). Choose (o) if applicable): [Note: If the Employer does not elect (o), the election under (l), (m) or (n) applies to all types of
contributions.]
	
[X]	
 	

(l)	
 	
Immediately following or coincident with
	

[n/a]	
 	

(m)	
 	
Immediately preceding or coincident with
	

[n/a]	
 	

(n)	
 	
Nearest
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

6

 

	
[n/a]	
 	

(o)	
 	
Alternative 401(k)/401(m) election(s): (Choose (1) or (2) or both as applicable)
	

 	
 	

 	
 	

(1)	
 	
[n/a]	
 	

Deferral contributions
	

 	
 	

 	
 	

 	
 	
a.	
 	
[n/a] Immediately following or coincident with
	

 	
 	

 	
 	

(2)	
 	
[n/a]	
 	

Matching contributions
 (Choose one of b., c. or d.)
	

 	
 	

 	
 	

 	
 	

b.	
 	
[n/a]	
 	
Immediately following or coincident with
	

 	
 	

 	
 	

 	
 	

c.	
 	
[n/a]	
 	
Immediately preceding or coincident with
	

 	
 	

 	
 	

 	
 	

d.	
 	
[n/a]	
 	
Nearest
	

the date the Employee completes the eligibility conditions described in this Section 2.01. [Note: Unless otherwise excluded under Section 1.11, an Employee must become a Participant by the earlier of: (1) the
first day of the Plan Year beginning after the date the Employee completes the age and service requirements of Code §410(a); or (2) 6 months after the date the Employee completes those requirements.]
	

10.	
 	
YEAR OF SERVICE—ELIGIBILITY (2.02). (Choose (a) and (b) as applicable): [Note:
If the Employer does not elect a Year of Service condition or elects the Elapsed Time Method, the Employer should not complete (a) or (b).]
	
[X]	
 	

(a)	
 	
Year of Service. An Employee must complete 1,000 Hour(s) of Service during an eligibility computation period to receive credit for a Year of Service under Article II: [Note: The number may not exceed 1,000. If left blank, the requirement is 1,000.]
	
[X]	
 	

(b)	
 	
Eligibility computation period. After the initial eligibility computation period described in Plan Section 2.02, the Plan measures the eligibility computation period as: (Choose one of (1) or (2))
	

 	
 	
[X]	
 	

(1)	
 	

The Plan Year beginning with the Plan Year which includes the first anniversary of the Employee's Employment Commencement Date.
	

 	
 	
[n/a]	
 	

(2)	
 	

The 12-consecutive month period beginning with each anniversary of the Employee's Employment Commencement Date.
	

11.	
 	
PARTICIPATION—BREAK IN SERVICE (2.03). The one year hold-out rule described in Plan Section 2.03(B): (Choose one of (a), (b) or
(c))
	
[X]	
 	

(a)	
 	
Not applicable. Does not apply to the Plan.
	
[n/a]	
 	

(b)	
 	
Applicable. Applies to the Plan and to all Participants.
	
[n/a]	
 	

(c)	
 	
Limited application. Applies to the Plan, but only to a Participant who has incurred a Separation from Service.
	

12.	
 	
ELECTION NOT TO PARTICIPATE (2.06). The Plan: (Choose one of (a) or (b))
	
[X]	
 	

(a)	
 	
Election not permitted. Does not permit an eligible Employee to elect not to participate.
	
[n/a]	
 	

(b)	
 	
Irrevocable election. Permits an Employee to elect not to participate if the Employee makes a one-time irrevocable election prior to the Employee's Plan Entry Date.

7

  

	
ARTICLE III

EMPLOYER CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES
	

13.	
 	
AMOUNT AND TYPE (3.01). The amount and type(s) of the Employer's contribution to the Trust for a Plan Year or other specified period will equal: (Choose one or more of (a) through (f) as applicable)
	
[X]	
 	

(a)	
 	
Deferral contributions (401(k) arrangement). The dollar or percentage amount by which each Participant has elected to reduce his/her Compensation, as provided in the Participant's salary
reduction agreement and in accordance with Section 3.02.
	
[X]	
 	

(b)	
 	
Matching contributions (other than safe harbor matching contributions under Section 3.01(d)). The matching contributions made in accordance with Section 3.03.
	
[X]	
 	

(c)	
 	
Nonelective contributions (profit sharing). The following nonelective contribution (Choose (1) or (2) or both as applicable):
[Note: The Employer may designate as a qualified nonelective contribution, all or any portion of its nonelective contribution. See Plan Section 3.04(F).]
	

 	
 	
[X]	
 	

(1)	
 	
Discretionary. An amount the Employer in its sole discretion may determine.
	

 	
 	
[n/a]	
 	

(2)	
 	
Fixed. The following amount:
	
[n/a]	
 	

(d)	
 	
401(k) safe harbor contributions. The following 401(k) safe harbor contributions described in Plan Section 14.02(D): (Choose one of (1), (2) or (3). Choose (4), if
applicable)
	

 	
 	
[n/a]	
 	

(1)	
 	
Safe harbor nonelective contribution. The safe harbor nonelective contribution equals            % of a Participant's Compensation
[Note: the amount in the blank must be at least 3%.].
	

 	
 	
[n/a]	
 	

(2)	
 	
Basic safe harbor matching contribution. A matching contribution equal to 100% of each Participant's deferral contributions not exceeding 3% of the Participant's Compensation, plus 50% of each
Participant's deferral contributions in excess of 3% but not in excess of 5% of the Participant's Compensation. For this purpose, "Compensation" means Compensation for:            .
[Note: The Employer must complete the blank line with the applicable time period for computing the Employer's basic safe harbor match, such as "each payroll period," "each month," "each Plan Year quarter" or "the Plan
Year".]
	

 	
 	
[n/a]	
 	

(3)	
 	
Enhanced safe harbor matching contribution. (Choose one of a. or b.).
	

 	
 	

 	
 	
[n/a]	
 	

a.	
 	
Uniform percentage. An amount equal to            % of each Participant's deferral contributions not
exceeding            % of the Participant's Compensation. For this purpose, "Compensation" means Compensation for:            .
[See the Note in (d)(2).]
	

 	
 	

 	
 	
[n/a]	
 	

b.	
 	
Tiered formula. An amount equal to the specified matching percentage for the corresponding level of each Participant's deferral contribution percentage. For this purpose, "Compensation" means
Compensation for:            . [See the Note in (d)(2).]
	

 	
 	
Deferral Contribution Percentage
	
 	

 	
 	

Matching Percentage

	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

8

 

	

 

	

 	

 	

 	

 	

 	

 	

 	

 	

 	

 
	

[Note: The matching percentage may not increase as the deferral contribution percentage increases and the enhanced matching formula otherwise must satisfy the requirements of Code §§401(k)(12)(B)(ii) and (iii).
If the Employer wishes to avoid ACP testing on its enhanced safe harbor matching contribution, the Employer also must limit deferral contributions taken into account (the "Deferral Contribution Percentage") for the matching contribution to 6% of Plan
Year Compensation.]
	

 	
 	
[n/a]	
 	

(4)	
 	
Another plan. The Employer will satisfy the 401(k) safe harbor contribution in the following
plan:                        .
	
[n/a]	
 	

(e)	
 	
Davis-Bacon contributions. The amount(s) specified for the applicable Plan Year or other applicable period in the Employer's Davis- Bacon contract(s). The Employer will make a contribution
only to Participants covered by the contract and only with respect to Compensation paid under the contract. If the Participant accrues an allocation of nonelective contributions (including forfeitures) under the Plan in addition to the Davis-Bacon
contribution, the Plan Administrator will: (Choose one of (1) or (2))
	

 	
 	
[n/a]	
 	

(1)	
 	

Not reduce the Participant's nonelective contribution allocation by the Davis-Bacon contribution.
	

 	
 	
[n/a]	
 	

(2)	
 	

Reduce the Participant's nonelective contribution allocation by the Davis-Bacon contribution.
	
[n/a]	
 	

(f)	
 	
Frozen Plan. This Plan is a frozen Plan effective:            . For any period following the specified date, the Employer will not
contribute to the Plan, a Participant may not contribute and an otherwise eligible Employee will not become a Participant in the Plan.
	

14.	
 	
DEFERRAL CONTRIBUTIONS (3.02). The following limitations and terms apply to an Employee's deferral contributions: (If the Employer elects
Section 3.01(a), the Employer must elect (a). Choose (b) or (c) as applicable)
	
[X]	
 	

(a)	
 	
Limitation on amount. An Employee's deferral contributions are subject to the following limitation(s) in addition to those imposed by the Code: (Choose (1), (2) or
(3) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	

Maximum deferral amount: 20%.
	

 	
 	
[X]	
 	

(2)	
 	

Minimum deferral amount: 0.
	

 	
 	
[n/a]	
 	

(3)	
 	

No limitations.
	

For the Plan Year in which an Employee first becomes a Participant, the Plan Administrator will apply any percentage limitation the Employer elects in (1) or (2) to the Employee's Compensation: (Choose one of
(4) or (5) unless the Employer elects (3))
	

 	
 	
[n/a]	
 	

(4)	
 	

Only for the portion of the Plan Year in which the Employee actually is a Participant.
	

 	
 	
[X]	
 	

(5)	
 	

For the entire Plan Year.
	
[n/a]	
 	

(b)	
 	
Negative deferral election. The Employer will withhold            % from the Participant's Compensation unless the Participant
elects a lesser percentage (including zero) under his/her salary reduction agreement. See Plan Section 14.02(C). The negative election will apply to: (Choose one of (1) or (2))
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

9

 

	

 	
 	

 	
 	
[n/a]	
 	

(1)	
 	

All Participants who have not deferred at least the automatic deferral amount as of:                        .
	

 	
 	

 	
 	
[n/a]	
 	

(2)	
 	

Each Employee whose Plan Entry Date is on or following the negative election effective date.
	
[n/a]	
 	

(c)	
 	
Cash or deferred contributions. For each Plan Year for which the Employer makes a designated cash or deferred contribution under Plan Section 14.02(B), a Participant may elect to receive
directly in cash not more than the following portion (or, if less, the 402(g) limitation) of his/her proportionate share of that cash or deferred contribution: (Choose one of (1) or (2))
	

 	
 	
[n/a]	
 	

(1)	
 	

All or any portion.                        [n/a]            (2)              %.
	
Modification/revocation of salary reduction agreement. A Participant prospectively may modify or revoke a salary reduction agreement, or may file a new salary reduction agreement
following a prior revocation, at least once per Plan Year or during any election period specified by the basic plan document or required by the Internal Revenue Service. The Plan Administrator also may provide for more frequent elections in the
Plan's salary reduction agreement form.
	

15.	
 	
MATCHING CONTRIBUTIONS (INCLUDING ADDITIONAL SAFE HARBOR MATCH UNDER PLAN SECTION 14.02(D)(3)) (3.03). The Employer matching contribution is: (If the Employer elects Section 3.01(b), the Employer must elect one or more of (a), (b) or (c) as applicable. Choose (d) if applicable)
	
[n/a]	
 	

(a)	
 	
Fixed formula. An amount equal to            % of each Participant's deferral contributions.
	
[X]	
 	

(b)	
 	
Discretionary formula. An amount (or additional amount) equal to a matching percentage the Employer from time to time may deem advisable of the Participant's deferral contributions. The
Employer, in its sole discretion, may designate as a qualified matching contribution, all or any portion of its discretionary matching contribution. The portion of the Employer's discretionary matching contribution for a Plan Year not designated as a
qualified matching contribution is a regular matching contribution.
	
[n/a]	
 	

(c)	
 	
Multiple level formula. An amount equal to the following percentages for each level of the Participant's deferral contributions. [Note: The matching percentage only will
apply to deferral contributions in excess of the previous level and not in excess of the stated deferral contribution percentage.]
	

 	
 	
Deferral Contributions
	
 	

Matching Percentage

	

     	

 	

 	

 	

 	

 	

 	

 	

 	

 	

 
	
[n/a]	
 	

(d)	
 	
Related Employers. If two or more Related Employers contribute to this Plan, the Plan Administrator will allocate matching contributions and matching contribution forfeitures only to the
Participants directly employed by the contributing Employer. The matching contribution formula for the other Related Employer(s) is:            . [Note: If the
Employer does not elect (d), the Plan Administrator will allocate all matching contributions and matching forfeitures without regard to which contributing Related Employer directly employs the Participant.]
	
Time period for matching contributions.    The Employer will determine its matching contribution based on deferral contributions made during each: (Choose one of (e) through (h))
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

10

 

	
[n/a]	
 	

(e)	
 	
Plan Year.
	

[n/a]	
 	

(f)	
 	
Plan Year quarter.
	

[X]	
 	

(g)	
 	
Payroll period.
	
[n/a]	
 	

(h)	
 	
Alternative time period:            . [Note: Any alternative time period the Employer elects in (h) must
be the same for all Participants and may not exceed the Plan Year.]
	
Deferral contributions taken into account.    In determining a Participant's deferral contributions taken into account for the above-specified time period under the
matching contribution formula, the following limitations apply: (Choose one of (i), (j) or (k))
	
[n/a]	
 	

(i)	
 	
All deferral contributions. The Plan Administrator will take into account all deferral contributions.
	
[n/a]	
 	

(j)	
 	
Specific limitation. The Plan Administrator will disregard deferral contributions exceeding            % of the Participant's
Compensation. [Note: To avoid the ACP test in a safe harbor 401(k) plan, the Employer must limit deferrals and Employee contributions which are subject to match to 6% of Plan Year Compensation.]

	
[X]	
 	

(k)	
 	
Discretionary. The Plan Administrator will take into account the deferral contributions as a percentage of the Participant's Compensation as the Employer determines.
	
Other matching contribution requirements.    The matching contribution formula is subject to the following additional requirements: (Choose
(l) or (m) or both if applicable)
	
[n/a]	
 	

(l)	
 	
Matching contribution limits. A Participant's matching contributions may not exceed: (Choose one of (1) or (2))
	

 	
 	

 	
 	
[n/a]	
 	

(1)	
 	

            . [Note: The Employer may elect (1) to place an overall dollar or percentage limit on matching contributions.]
	

 	
 	

 	
 	
[n/a]	
 	

(2)	
 	

4% of a Participant's Compensation for the Plan Year under the discretionary matching contribution formula. [Note: The Employer must elect (2) if it elects a discretionary matching formula with the safe harbor 401(k)
contribution formula and wishes to avoid the ACP test.]
	
[n/a]	
 	

(m)	
 	
Qualified matching contributions. The Plan Administrator will allocate as qualified matching contributions, the matching contributions specified in Adoption Agreement
Section:            . The Plan Administrator will allocate all other matching contributions as regular matching contributions. [Note: If the Employer elects two
matching formulas, the Employer may use (m) to designate one of the formulas as a qualified matching contribution.]
	

16.	
 	
CONTRIBUTION ALLOCATION (3.04).
	
Employer nonelective contributions (3.04(A)).    The Plan Administrator will allocate the Employer's nonelective contribution under the following contribution allocation
formula: (Choose one of (a), (b) or (c). Choose (d) if applicable)
	
[X]	
 	

(a)	
 	
Nonintegrated (pro rata) allocation formula.
	
[n/a]	
 	

(b)	
 	
Permitted disparity. The following permitted disparity formula and definitions apply to the Plan: (Choose one of (1) or (2). Also choose
(3))
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

11

 

	

 	
 	
[n/a]	
 	

(1)	
 	

Two-tiered allocation formula.
	

 	
 	
[n/a]	
 	

(2)	
 	

Four-tiered allocation formula.
	

 	
 	
[n/a]	
 	

(3)	
 	

For purposes of Section 3.04(b), "Excess Compensation" means Compensation in excess of: (Choose one of a. or b.)
	

 	
 	

 	
 	
[n/a]	
 	

a.	
 	

            % of the taxable wage base in effect on the first day of the Plan Year, rounded to the next highest
$             (not exceeding the taxable wage base).
	

 	
 	

 	
 	
[n/a]	
 	

b.	
 	

The following integration level:                        .
	 	 	 	 	 	 	 	 	[Note: The integration level cannot exceed the taxable wage base in effect for the Plan Year for which this Adoption Agreement first is effective.]
	
[n/a]	
 	

(c) Uniform points allocation formula. Under the uniform points allocation formula, a Participant receives: (Choose (1) or both (1) and (2) as applicable)

	

 	
 	
[n/a]	
 	

(1)	
 	

            point(s) for each Year of Service. Year of Service
means:                        .
	

 	
 	
[n/a]	
 	

(2)	
 	

One point for each $                              [not to exceed
$200] increment of Plan Year Compensation.
	
[n/a]	
 	

(d)	
 	
Incorporation of contribution formula. The Plan Administrator will allocate the Employer's nonelective contribution under Section(s) 3.01(c)(2), (d)(1) or (e) in accordance with the
contribution formula adopted by the Employer under that Section.
	
Qualified nonelective contributions. (3.04(F)).    The Plan Administrator will allocate the Employer's qualified nonelective contributions to: 
(Choose one of (e) or (f))
	
[X]	
 	

(e)	
 	
Nonhighly compensated Employees only.
	
[n/a]	
 	

(f)	
 	
All Participants.
	
 Related Employers. (Choose (g) if applicable)
	
[n/a]	
 	

(g)	
 	
Allocate only to directly employed Participants. If two or more Related Employers adopt this Plan, the Plan Administrator will allocate all nonelective contributions and forfeitures
attributable to nonelective contributions only to the Participants directly employed by the contributing Employer. If a Participant receives Compensation from more than one contributing Employer, the Plan Administrator will determine the allocations
under this Section 3.04 by prorating the Participant's Compensation between or among the participating Related Employers. [Note: If the Employer does not elect 3.04(g), the Plan Administrator will allocate all nonelective
contributions and forfeitures without regard to which contributing Related Employer directly employs the Participant. The Employer may not elect 3.04(g) under a safe harbor 401(k) Plan.]
	

17.	
 	
FORFEITURE ALLOCATION (3.05). The Plan Administrator will allocate a Participant forfeiture: (Choose one or more of (a), (b) or
(c) as applicable) [Note: Even if the Employer elects immediate vesting, the Employer should complete Section 3.05. See Plan Section 9.11.]
	
[X]	
 	

(a)	
 	
Matching contribution forfeitures. To the extent attributable to matching contributions: (Choose one of (1) through (4))
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

12

 

	

 	
 	
[n/a]	
 	

(1)	
 	

As a discretionary matching contribution.
	

 	
 	
[X]	
 	

(2)	
 	

To reduce matching contributions.
	

 	
 	
[n/a]	
 	

(3)	
 	

As a discretionary nonelective contribution.
	

 	
 	
[n/a]	
 	

(4)	
 	

To reduce nonelective contributions.
	
[X]	
 	

(b)	
 	
Nonelective contribution forfeitures. To the extent attributable to Employer nonelective contributions: (Choose one of (1) through (4))
	

 	
 	
[n/a]	
 	

(1)	
 	

As a discretionary nonelective contribution.
	

 	
 	
[X]	
 	

(2)	
 	

To reduce nonelective contributions.
	

 	
 	
[n/a]	
 	

(3)	
 	

As a discretionary matching contribution.
	

 	
 	
[n/a]	
 	

(4)	
 	

To reduce matching contributions.
	
[X]	
 	

(c)	
 	
Reduce administrative expenses. First to reduce the Plan's ordinary and necessary administrative expenses for the Plan Year and then allocate any remaining forfeitures in the manner described
in Sections 3.05(a) or (b) as applicable.
	
Timing of forfeiture allocation.    The Plan Administrator will allocate forfeitures under Section 3.05 in the Plan Year: (Choose one of
(d) or (e))
	
[X]	
 	

(d)	
 	

In which the forfeiture occurs.
	
[n/a]	
 	

(e)	
 	

Immediately following the Plan Year in which the forfeiture occurs.
	

18.	
 	
ALLOCATION CONDITIONS (3.06).
	
Allocation conditions.    The Plan does not apply any allocation conditions to deferral contributions, 401(k) safe harbor contributions (under Section 3.01(d)) or to
Davis-Bacon contributions (except as the Davis-Bacon contract provides). To receive an allocation of matching contributions, nonelective contributions, qualified nonelective contributions or Participant forfeitures, a Participant must satisfy the
following allocation condition(s): (Choose one or more of (a) through (i) as applicable)
	
[X]	
 	

(a)	
 	
Hours of Service condition. The Participant must complete at least the specified number of Hours of Service (not exceeding 1,000) during the Plan Year: 1,000.
	
[X]	
 	

(b)	
 	
Employment condition. The Participant must be employed by the Employer on the last day of the Plan Year (designate time period).
	
[n/a]	
 	

(c)	
 	
No allocation conditions.
	
[n/a]	
 	

(d)	
 	
Elapsed Time Method. The Participant must complete at least the specified number (not exceeding 182) of consecutive calendar days of employment with the Employer during the Plan
Year:                        .

13

  

	
[n/a]	
 	

(e)	
 	
Termination of Service/501 Hours of Service coverage rule. The Participant either must be employed by the Employer on the last day of the Plan Year or must complete at least 501 Hours of
Service during the Plan Year. If the Plan uses the Elapsed Time Method of crediting Service, the Participant must complete at least 91 consecutive calendar days of employment with the Employer during the Plan Year.
	
[n/a]	
 	

(f)	
 	
Special allocation conditions for matching contributions. The Participant must complete at least            Hours of Service during
the            (designate time period) for the matching contributions made for that time period.
	
[X]	
 	

(g)	
 	
Death, Disability or Normal Retirement Age. Any condition specified in Section 3.06 a.-b. applies if the Participant incurs a Separation from Service during the Plan Year on account of:
death, Disability or Normal Retirement Age. (e.g., death, Disability or Normal Retirement Age).
	
[n/a]	
 	

(h)	
 	
Suspension of allocation conditions for coverage. The suspension of allocation conditions of Plan Section 3.06(E) applies to the Plan.
	
[X]	
 	

(i)	
 	
Limited allocation conditions. The Plan does not impose an allocation condition for the following types of contributions:    matching contributions. [Note: Any election to limit the Plan's allocation conditions to certain contributions must be the same for all Participants, be definitely determinable and not discriminate in favor of Highly Compensated Employees.]
	
ARTICLE IV

PARTICIPANT CONTRIBUTIONS
	

19.	
 	
EMPLOYEE (AFTER TAX) CONTRIBUTIONS  (4.02). The following elections apply to Employee contributions:
 (Choose
one of (a) or (b). Choose (c) if applicable)
	
[X]	
 	

(a)	
 	
Not permitted. The Plan does not permit Employee contributions.
	
[n/a]	
 	

(b)	
 	
Permitted. The Plan permits Employee contributions subject to the following limitations:            . [Note:
Any designated limitation(s) must be the same for all Participants, be definitely determinable and not discriminate in favor of Highly Compensated Employees.]
	
[n/a]	
 	

(c)	
 	
Matching contribution. For each Plan Year, the Employer's matching contribution made with respect to Employee contributions
is:            .
	
ARTICLE V

VESTING REQUIREMENTS
	

20.	
 	
NORMAL/EARLY RETIREMENT AGE  (5.01). A Participant attains Normal Retirement Age (or Early Retirement Age, if applicable) under the
Plan on the following date: (Choose one of (a) or (b). Choose (c) if applicable)
	
[X]	
 	

(a)	
 	
Specific age. The date the Participant attains age 65. [Note: The age may not exceed age 65.]
	
[n/a]	
 	

(b)	
 	
Age/participation. The later of the date the Participant attains            years of age or
the            anniversary of the first day of the Plan Year in which the Participant commenced participation in the Plan. [Note: The age may not exceed age 65 and the
anniversary may not exceed the 5th.]
	
[n/a]	
 	

(c)	
 	
Early Retirement Age. Early Retirement Age is the later of: (i) the date a Participant attains age            or (ii) the
date a Participant reaches his/her            anniversary of the first day of the Plan Year in which the Participant commenced participation in the Plan.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

14

 

	

21.	
 	
PARTICIPANT'S DEATH OR DISABILITY  (5.02). The 100% vesting rule under Plan Section 5.02 does not apply to:
 (Choose (a) or (b) or both as applicable)
	
[n/a]	
 	

(a)	
 	
Death.
	
[n/a]	
 	

(b)	
 	
Disability.
	

22.	
 	
VESTING SCHEDULE  (5.03). A Participant has a 100% Vested interest at all times in his/her deferral contributions, qualified
nonelective contributions, qualified matching contributions, 401(k) safe harbor contributions and Davis-Bacon contributions (unless otherwise indicated in (f)). The following vesting schedule applies to Employer regular matching contributions and to
Employer nonelective contributions: (Choose (a) or choose one or more of (b) through (f) as applicable)
	
[n/a]	
 	

(a)	
 	
Immediate vesting. 100% Vested at all times. [Note: The Employer must elect (a) if the Service condition under Section 2.01 exceeds One Year of Service or more
than twelve months.]
	
[X]	
 	

(b)	
 	
Top-heavy vesting schedules. [Note: The Employer must choose one of (b)(1), (2) or (3) if it does not elect (a).]
	

 	
 	

 	
 	
[n/a]	
 	

(1)	
 	

6-year graded as specified in the Plan.
	

 	
 	

 	
 	
[n/a]	
 	

(2)	
 	

3-year cliff as specified in the Plan.
	

 	
 	

 	
 	
[X]	
 	

(3)	
 	

Modified top-heavy schedule

	 
	 	Years of

Service
	 	Vested

Percentage
	 
	 	 	Less than 1	 	0	%
	 	 	    1	 	20	%
	 	 	    2	 	40	%
	 	 	    3	 	60	%
	 	 	    4	 	80	%
	 	 	    5	 	100	%
	 	 	    6 or more	 	100	%

	
[X]	
 	

(c)	
 	
Non-top-heavy vesting schedules. [Note: The Employer may elect one of (c)(1), (2) or (3) in addition to (b).]
	

 	
 	
[n/a]	
 	

(1)	
 	

7-year graded as specified in the Plan.
	

 	
 	
[n/a]	
 	

(2)	
 	

5-year cliff as specified in the Plan.
	

 	
 	
[X]	
 	

(3)	
 	

Modified non-top-heavy schedule

15

 

	 
	 	Years of

Service
	 	Vested

Percentage
	 
	 	 	Less than 1	 	0	%
	 	 	    1	 	20	%
	 	 	    2	 	40	%
	 	 	    3	 	60	%
	 	 	    4	 	80	%
	 	 	    5	 	100	%
	 	 	    6	 	100	%
	 	 	    7 or more	 	100	%

	

If the Employer does not elect (c), the vesting schedule elected in (b) applies to all Plan Years. [Note: The modified top-heavy schedule of (b)(3) must satisfy Code §416. If the Employer elects (c)(3), the modified
non-top-heavy schedule must satisfy Code §411(a)(2).]
	
[n/a]	
 	

(d)	
 	
Separate vesting election for regular matching contributions. In lieu of the election under (a), (b) or (c), the following vesting schedule applies to a Participant's regular matching
contributions: (Choose one of (1) or (2))
	

 	
 	
[n/a]	
 	

(1)	
 	

100% Vested at all times.
	

 	
 	
[n/a]	
 	

(2)	
 	

Regular matching vesting schedule:            . [Note: The vesting schedule completed under (d)(2) must comply with Code §411(a)(4).]
	
[n/a]	
 	

(e)	
 	
Application of top-heavy schedule. The non-top-heavy schedule elected under (c) applies in all Plan Years in which the Plan is not a top-heavy plan. [Note: If the
Employer does not elect (e), the top-heavy vesting schedule will apply for the first Plan Year in which the Plan is top-heavy and then in all subsequent Plan Years.]
	
[n/a]	
 	

(f)	
 	
Special vesting provisions:            . [Note: Any special vesting provision must satisfy
Code §411(a). Any special vesting provision must be definitely determinable, not discriminate in favor of Highly Compensated Employees and not violate Code §401(a)(4).]
	

23.	
 	
YEAR OF SERVICE—VESTING  (5.06). (Choose (a) and (b)): [Note: If the Employer elects the Elapsed Time Method or elects immediate vesting, the Employer should not complete (a) or (b).]
	
[X]	
 	

(a)	
 	
Year of Service. An Employee must complete at least 1,000 Hours of Service during a vesting computation period to receive credit for a Year of Service under Article V. [Note: The number may not exceed 1,000. If left blank, the requirement is 1,000.]
	
[X]	
 	

(b)	
 	
Vesting computation period. The Plan measures a Year of Service on the basis of the following 12-consecutive month period: (Choose one of (1) or (2))

	

 	
 	
[X]	
 	

(1)	
 	

Plan Year.
	

 	
 	
[n/a]	
 	

(2)	
 	

Employment year (anniversary of Employment Commencement Date).
	

24.	
 	
EXCLUDED YEARS OF SERVICE—VESTING  (5.08). The Plan excludes the following Years of Service for purposes of vesting: (Choose (a) or choose one or more of (b) through (f) as applicable)
	
[X]	
 	

(a)	
 	
None. None other than as specified in Plan Section 5.08(a).
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

16

 

	
[n/a]	
 	

(b)	
 	
Age 18. Any Year of Service before the Year of Service during which the Participant attained the age of 18.
	
[n/a]	
 	

(c)	
 	
Prior to Plan establishment. Any Year of Service during the period the Employer did not maintain this Plan or a predecessor plan.
	
[n/a]	
 	

(d)	
 	
Parity Break in Service. Any Year of Service excluded under the rule of parity. See Plan Section 5.10.
	
[n/a]	
 	

(e)	
 	
Prior Plan terms. Any Year of Service disregarded under the terms of the Plan as in effect prior to this restated Plan.
	
[n/a]	
 	

(f)	
 	
Additional exclusions. Any Year of Service before:            . [Note: Any exclusion specified under
(f) must comply with Code §411(a)(4). Any exclusion must be definitely determinable, not discriminate in favor of Highly Compensated Employees and not violate Code §401(a)(4). If
the Employer elects immediate vesting, the Employer should not complete Section 5.08.]
	
ARTICLE VI

DISTRIBUTION OF ACCOUNT BALANCE
	

25.	
 	
TIME OF PAYMENT OF ACCOUNT BALANCE  (6.01). The following time of distribution elections apply to the Plan:
	
Separation from Service/Vested Account Balance not exceeding $5,000. Subject to the limitations of Plan Section 6.01(A)(1), the Trustee will distribute in a lump sum (regardless of the
Employer's election under Section 6.04) a separated Participant's Vested Account Balance not exceeding $5,000: (Choose one of (a) through (d))
	
[X]	
 	

(a)	
 	
Immediate. As soon as administratively practicable following the Participant's Separation from Service.
	
[n/a]	
 	

(b)	
 	
Designated Plan Year. As soon as administratively practicable in the            Plan Year beginning after the Participant's
Separation from Service.
	
[n/a]	
 	

(c)	
 	
Designated Plan Year quarter. As soon as administratively practicable in the            Plan Year quarter beginning after the
Participant's Separation from Service.
	
[n/a]	
 	

(d)	
 	
Designated distribution. As soon as administratively practicable in the:            following the Participant's Separation from
Service. [Note: The designated distribution time must be the same for all Participants, be definitely determinable, not discriminate in favor of Highly Compensated Employees and not violate Code §401(a)
(4).]
	
Separation from Service/Vested Account Balance exceeding $5,000. A separated Participant whose Vested Account Balance exceeds $5,000 may elect to commence distribution of his/her Vested
Account Balance no earlier than: (Choose one of (e) through (i). Choose (j) if applicable)
	
[X]	
 	

(e)	
 	
Immediate. As soon as administratively practicable following the Participant's Separation from Service.
	
[n/a]	
 	

(f)	
 	
Designated Plan Year. As soon as administratively practicable in the            Plan Year beginning after the Participant's
Separation from Service.
	
[n/a]	
 	

(g)	
 	
Designated Plan Year quarter. As soon as administratively practicable in the            Plan Year quarter following the Plan Year
quarter in which the Participant elects to receive a distribution.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

17

 

	
[n/a]	
 	

(h)	
 	
Normal Retirement Age. As soon as administratively practicable after the close of the Plan Year in which the Participant attains Normal Retirement Age and within the time required under Plan
Section 6.01(A)(2).
	
[n/a]	
 	

(i)	
 	
Designated distribution. As soon as administratively practicable in the:            following the Participant's Separation from
Service. [Note: The designated distribution time must be the same for all Participants, be definitely determinable, not discriminate in favor of Highly Compensated Employees and not violate Code §401(a)
(4).]
	
[n/a]	
 	

(j)	
 	
Limitation on Participant's right to delay distribution. A Participant may not elect to delay commencement of distribution of his/her Vested Account Balance beyond the later of attainment of
age 62 or Normal Retirement Age. [Note: If the Employer does not elect (j), the Plan permits a Participant who has Separated from Service to delay distribution until his/her required beginning date. See Plan Section 6.01(A)
(2).]
	
Participant elections prior to Separation from Service. A Participant, prior to Separation from Service may elect any of the following distribution options in accordance with Plan
Section 6.01(C). (Choose (k) or choose one or more of (l) through (o) as applicable). [Note: If the Employer elects any in-service distributions option, a
Participant may elect to receive one in-service distribution per Plan Year unless the Plan's in-service distribution form provides for more frequent in-service distributions.]
	
[n/a]	
 	

(k)	
 	
None. A Participant does not have any distribution option prior to Separation from Service, except as may be provided under Plan Section 6.01(C).
	
[X]	
 	

(l)	
 	
Deferral contributions. Distribution of all or any portion (as permitted by the Plan) of a Participant's Account Balance attributable to deferral contributions if: 
(Choose one or more of (1), (2) or (3) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Hardship (safe harbor hardship rule). The Participant has incurred a hardship in accordance with Plan Sections 6.09 and 14.11(A).
	

 	
 	
[X]	
 	

(2)	
 	
Age. The Participant has attained age 591/2 (Must be at least age 591/2).
	

 	
 	
[n/a]	
 	

(3)	
 	
Disability. The Participant has incurred a Disability.
	
[X]	
 	

(m)	
 	
Qualified nonelective contributions/qualified matching contributions/safe harbor contributions. Distribution of all or any portion of a Participant's Account Balance attributable to qualified
nonelective contributions, to qualified matching contributions, or to 401(k) safe harbor contributions if: (Choose (1) or (2) or both as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Age. The Participant has attained age 591/2 (Must be at least age 591/2).
	

 	
 	
[n/a]	
 	

(2)	
 	
Disability. The Participant has incurred a Disability.
	
[X]	
 	

(n)	
 	
Nonelective contributions/regular matching contributions. Distribution of all or any portion of a Participant's Vested Account Balance attributable to nonelective contributions or to regular
matching contributions if: (Choose one or more of (1) through (5) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Age/Service conditions. (Choose one or more of a. through d. as applicable):
	

 	
 	

 	
 	
[X]	
 	

a.	
 	
Age. The Participant has attained age 59 and 1/2 .
	

 	
 	

 	
 	
[n/a]	
 	

b.	
 	
Two-year allocations. The Plan Administrator has allocated the contributions to be distributed for a period of not less
than            Plan Years before the distribution date. [Note: The minimum number of years is 2.]
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

18

 

	

 	
 	

 	
 	
[n/a]	
 	

c.	
 	
Five years of participation. The Participant has participated in the Plan for at least            Plan Years. [Note: The minimum number of years is 5.]
	

 	
 	

 	
 	
[n/a]	
 	

d.	
 	
Vested. The Participant is            % Vested in his/her Account Balance. See Plan Section 5.03(A). [Note: If an Employer makes more than one election under Section 6.01(n)(1), a Participant must satisfy all conditions before the Participant is eligible for the distribution.]
	

 	
 	
[n/a]	
 	

(2)	
 	
Hardship. The Participant has incurred a hardship in accordance with Plan Section 6.09.
	

 	
 	
[n/a]	
 	

(3)	
 	
Hardship (safe harbor hardship rule). The Participant has incurred a hardship in accordance with Plan Sections 6.09 and 14.11(A).
	

 	
 	
[n/a]	
 	

(4)	
 	
Disability. The Participant has incurred a Disability.
	

 	
 	
[n/a]	
 	

(5)	
 	
Designated condition. The Participant has satisfied the following condition(s):            . [Note: Any
designated condition(s) must be the same for all Participants, be definitely determinable and not discriminate in favor of Highly Compensated Employees.]
	
[n/a]	
 	

(o)	
 	
Participant contributions. Distribution of all or any portion of a Participant's Account Balance attributable to the following Participant contributions described in Plan Section 4.01:
(Choose one of (1), (2) or (3))
	

 	
 	
[n/a]	
 	

(1)	
 	
All Participant contributions.
	

 	
 	
[n/a]	
 	

(2)	
 	
Employee contributions only.
	

 	
 	
[n/a]	
 	

(3)	
 	
Rollover contributions only.
	
Participant loan default/offset. See Section 6.08 of the Plan.
	

26.	
 	
DISTRIBUTION METHOD  (6.03). A separated Participant whose Vested Account Balance exceeds $5,000 may elect distribution under one of
the following method(s) of distribution described in Plan Section 6.03: (Choose one or more of (a) through (d) as applicable)
	
[X]	
 	

(a)	
 	
Lump sum.
	
[n/a]	
 	

(b)	
 	
Installments.
	
[n/a]	
 	

(c)	
 	
Installments for required minimum distributions only.
	
[n/a]	
 	

(d)	
 	
Annuity distribution option(s):            . [Note: Any optional method of distribution may not be subject to
Employer, Plan Administrator or Trustee discretion.]
	

27.	
 	
JOINT AND SURVIVOR ANNUITY REQUIREMENTS  (6.04). The joint and survivor annuity distribution requirements of Plan Section 6.04:
(Choose one of (a) or (b))
	
[X]	
 	

(a)	
 	
Profit sharing plan exception. Do not apply to a Participant, unless the Participant is a Participant described in Section 6.04(H) of the Plan.
	
[n/a]	
 	

(b)	
 	
Applicable. Apply to all Participants.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

19

 

	
ARTICLE IX

PLAN ADMINISTRATOR—DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS
	
28.	
 	
ALLOCATION OF NET INCOME, GAIN OR LOSS  (9.08). For each type of contribution provided under the Plan, the Plan allocates net income,
gain or loss using the following method: (Choose one or more of (a) through (e) as applicable)
	
[X]	
 	

(a)	
 	
Deferral contributions/Employee contributions. (Choose one or more of (1) through (5) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Daily valuation method. Allocate on each business day of the Plan Year during which Plan assets for which there is an established market are valued and the Trustee is conducting
business.
	

 	
 	
[n/a]	
 	

(2)	
 	
Balance forward method. Allocate using the balance forward method.
	

 	
 	
[n/a]	
 	

(3)	
 	
Weighted average method. Allocate using the weighted average method, based on the following weighting period:            . See Plan
Section 14.12.
	

 	
 	
[n/a]	
 	

(4)	
 	
Balance forward method with adjustment. Allocate pursuant to the balance forward method, except treat as part of the relevant Account at the beginning of the valuation
period            % of the contributions made during the following valuation
period:                        .
	

 	
 	
[n/a]	
 	

(5)	
 	
Individual account method. Allocate using the individual account method. See Plan Section 9.08.
	
[X]	
 	

(b)	
 	
Matching contributions. (Choose one or more of (1) through (5) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Daily valuation method. Allocate on each business day of the Plan Year during which Plan assets for which there is an established market are valued and the Trustee is conducting
business.
	

 	
 	
[n/a]	
 	

(2)	
 	
Balance forward method. Allocate using the balance forward method.
	

 	
 	
[n/a]	
 	

(3)	
 	
Weighted average method. Allocate using the weighted average method, based on the following weighting period:            . See Plan
Section 14.12.
	

 	
 	
[n/a]	
 	

(4)	
 	
Balance forward method with adjustment. Allocate pursuant to the balance forward method, except treat as part of the relevant Account at the beginning of the valuation
period            % of the contributions made during the following valuation
period:                        .
	

 	
 	
[n/a]	
 	

(5)	
 	
Individual account method. Allocate using the individual account method. See Plan Section 9.08.
	
[X]	
 	

(c)	
 	
Employer nonelective contributions. (Choose one or more of (1) through (5) as applicable)
	

 	
 	
[X]	
 	

(1)	
 	
Daily valuation method. Allocate on each business day of the Plan Year during which Plan assets for which there is an established market are valued and the Trustee is conducting
business.
	

 	
 	
[n/a]	
 	

(2)	
 	
Balance forward method. Allocate using the balance forward method.
	

 	
 	
[n/a]	
 	

(3)	
 	
Weighted average method. Allocate using the weighted average method, based on the following weighting period:            . See Plan
Section 14.12.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

20

 

	

 	
 	
[n/a]	
 	

(4)	
 	
Balance forward method with adjustment. Allocate pursuant to the balance forward method, except treat as part of the relevant Account at the beginning of the valuation
period            % of the contributions made during the following valuation
period:                        .
	

 	
 	
[n/a]	
 	

(5)	
 	
Individual account method. Allocate using the individual account method. See Plan Section 9.08.
	
[n/a]	
 	

(d)	
 	
Specified method. Allocate pursuant to the following method:            . [Note: The specified method must be
a definite predetermined formula which is not based on Compensation, which satisfies the nondiscrimination requirements of Treas. Reg. §1.401(a)(4) and which is applied uniformly to all Participants.]
	
[X]	
 	

(e)	
 	
Interest rate factor. In accordance with Plan Section 9.08(E), the Plan includes interest at the following rate on distributions made more than 90 days after the most recent
valuation date: 0.
	
 ARTICLE X

TRUSTEE AND CUSTODIAN, POWERS AND DUTIES
	

29.	
 	
INVESTMENT POWERS  (10.03). The following additional investment options or limitations apply under Plan Section 10.03: N/A.
[Note: Enter "N/A" if not applicable.]
	

30.	
 	
VALUATION OF TRUST  (10.15). In addition to the last day of the Plan Year, the Trustee must value the Trust Fund on the following
valuation date(s): (Choose one of (a) through (d))
	
[X]	
 	

(a)	
 	
Daily valuation dates. Each business day of the Plan Year on which Plan assets for which there is an established market are valued and the Trustee is conducting business.
	
[n/a]	
 	

(b)	
 	
Last day of a specified period. The last day of each            of the Plan Year.
	
[n/a]	
 	

(c)	
 	
Specified dates:                        .
	
[n/a]	
 	

(d)	
 	
No additional valuation dates.

21

  

 
 

Execution Page    
  

        The Trustee (and Custodian, if applicable), by executing this Adoption Agreement, accepts its position and agrees to all of the obligations, responsibilities and
duties imposed upon the Trustee (or Custodian) under the Prototype Plan and Trust. The Employer hereby agrees to the provisions of this Plan and Trust, and in witness of its agreement, the Employer by
its duly authorized officers, has executed this Adoption Agreement, and the Trustee (and Custodian, if applicable) has signified its acceptance,
on:                                  . 

	 	 	Name of Employer:	 	Petco Animal Supplies, Inc.

	

 	
 	

Employer's EIN:	
 	

95-2650552

	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Name(s) of Trustee:
	

 	
 	

 	
 	

ABN AMRO Trust Services Company

	

 	
 	

 	
 	

	

 	
 	

 	
 	

	

 	
 	

 	
 	

	

 	
 	

Trust EIN (Optional):
	

 	
 	

 	
 	

	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]
	

 	
 	

Name of Custodian (Optional):
	

 	
 	

 	
 	

	

 	
 	

Signed:	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

 	
 	

 	
 	

	 	 	 	 	 	 	 	 	[Name/Title]

	

31.	
 	
Plan Number.    The 3-digit plan number the Employer assigns to this Plan for ERISA reporting purposes (Form 5500 Series) is: 001.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

22

 

	
Use of Adoption Agreement.    Failure to complete properly the elections in this Adoption Agreement may result in disqualification of the Employer's Plan. The Employer
only may use this Adoption Agreement in conjunction with the basic plan document referenced by its document number on Adoption Agreement page one.
	

Execution for Page Substitution Amendment Only.    If this paragraph is completed, this Execution Page documents an amendment to Adoption Agreement Section(s)
                        effective                
        , by substitute Adoption Agreement page number(s)            .
	

Prototype Plan Sponsor.    The Prototype Plan Sponsor identified on the first page of the basic plan document will notify all adopting employers of any amendment of this Prototype Plan or of any abandonment or discontinuance by
the Prototype Plan Sponsor of its maintenance of this Prototype Plan. For inquiries regarding the adoption of the Prototype Plan, the Prototype Plan
	

Sponsor's intended meaning of any Plan provisions or the effect of the opinion letter issued to the Prototype Plan Sponsor, please contact the Prototype Plan Sponsor at the following address and telephone number: 161 North Clark Street 10th floor
Chicago, IL 60601-2468, 312-223-5200.
	
Reliance on Sponsor Opinion Letter.    The Prototype Plan Sponsor has obtained from the IRS an opinion letter specifying the form of this Adoption Agreement and the basic
plan document satisfy, as of the date of the opinion letter, Code §401. An adopting Employer may rely on the Prototype Sponsor's IRS opinion letter 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 and in Announcement 2001-77. In order to have
reliance in such circumstances or with respect to such qualification requirements, the Employer must apply for a determination letter to Employee Plans Determinations of the Internal Revenue Service.

23

 
PARTICIPATION AGREEMENT

ý Check here if not applicable and do not complete this page.  

        The undersigned Employer, by executing this Participation Agreement, elects to become a Participating Employer in the Plan identified in Section 1.21 of
the accompanying Adoption Agreement, as if the Participating Employer were a signatory to that Adoption Agreement. The Participating Employer accepts, and agrees to be bound by, all of the elections
granted under the provisions of the Prototype Plan as made by the Signatory Employer to the Execution Page of the Adoption Agreement, except as otherwise provided in this Participation Agreement. 

	
 32.	
 	
EFFECTIVE DATE (1.10). The Effective Date of the Plan for the Participating Employer
is:                        .
	

33.	
 	
NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan constitutes: (Choose one of (a) or (b))
	
[n/a]	
 	

(a)	
 	

The adoption of a new plan by the Participating Employer.
	

[n/a]	
 	

(b)	
 	

The adoption of an amendment and restatement of a plan currently maintained by the Participating Employer, identified
as:                        , and having an original effective date
of:                                  .
	

34.	
 	
PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service credited by reason of Section 1.30 of the Plan, the Plan credits as Service under
this Plan, service with this Participating Employer. (Choose one or more of (a) through (d) as applicable): [Note: If the Plan does not credit any additional predecessor
service under Section 1.30 for this Participating Employer, do not complete this election.]
	

[n/a]	
 	

(a)	
 	
Eligibility. For eligibility under Article II. See Plan Section 1.30 for time of Plan entry.
	
[n/a]	
 	

(b)	
 	
Vesting. For vesting under Article V.
	
[n/a]	
 	

(c)	
 	
Contribution allocation. For contribution allocations under Article III.
	

[n/a]	
 	

(d)	
 	
Exceptions. Except for the following Service:            .

	Name of Plan:	 	Name of Participating Employer:
	
	 	

	 	 	 	 	 	 	 	 	Signed:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[Name/Title]
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[Date]
	 	 	 	 	 	 	 	 	Participating Employer's EIN:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	

	Acceptance by the Signatory Employer to the Execution Page of the Adoption Agreement and by the Trustee.
	Name of Signatory Employer:	 	Name(s) of Trustee:
	
	 	

	
	 	

	 	 	 	 	 	 	[Name/Title]	 	 	 	 	 	 	 	[Name/Title]
	Signed:	 	 	 	 	 	 	 	Signed:	 	 	 	 	 	 
	 	 	
	 	 	 	

	
	 	

	 	 	 	 	 	 	[Date]	 	 	 	 	 	 	 	[Date]

[Note: Each Participating Employer must execute a separate Participation Agreement. If the Plan does not have a Participating Employer, the Signatory Employer may
delete this page from the Adoption Agreement.] 

24

  

	

APPENDIX A

TESTING ELECTIONS/EFFECTIVE DATE ADDENDUM
	

35.	
 	

The following testing elections and special effective dates apply: (Choose one or more of (a) through (n) as applicable)
	
[n/a]	
 	

(a)	
 	
Highly Compensated Employee (1.14).    For Plan Years beginning after            , the Employer makes the
following election(s) regarding the definition of Highly Compensated Employee:
	

 	
 	

 	
 	

(1)	
 	
[n/a]	
 	

Top paid group election.
	

 	
 	

 	
 	

(2)	
 	
[n/a]	
 	

Calendar year data election (fiscal year plan).
	

[n/a]	
 	

(b)	
 	
401(k) current year testing.    The Employer will apply the current year testing method in applying the ADP and ACP tests effective for Plan Years beginning
after:            . [Note: For Plan Years beginning on or after the Employer's execution of its "GUST" restatement, the Employer must use the same testing method
within the same Plan Year for both the ADP and ACP tests.]
	

[n/a]	
 	

(c)	
 	
Compensation.    The Compensation definition under Section 1.07 will apply for Plan Years beginning
after:                        .
	

[n/a]	
 	

(d)	
 	
Election not to participate.    The election not to participate under Section 2.06 is
effective:            .
	
[n/a]	
 	

(e)	
 	
401(k) safe harbor. The 401(k) safe harbor provisions under Section 3.01(d) are effective:            .
	
[n/a]	
 	

(f)	
 	
Negative election.    The negative election provision under Section 3.02(b) is
effective:            .
	
[n/a]	
 	

(g)	
 	
Contribution/allocation formula.    The specified contribution(s) and allocation method(s) under Sections 3.01 and 3.04 are
effective:            .
	

[n/a]	
 	

(h)	
 	
Allocation conditions.    The allocation conditions of Section 3.06 are effective:            .
	

[n/a]	
 	

(i)	
 	
Benefit payment elections.    The distribution elections of Section(s)            are
effective:            .
	

[n/a]	
 	

(j)	
 	
Election to continue pre-SBJPA required beginning date.    A Participant may not elect to defer commencement of the distribution of his/her Vested Account Balance beyond
the April 1 following the calendar year in which the Participant attains age 701/2. See Plan Section 6.02(A).
	
[X]	
 	

(k)	
 	
Elimination of age 701/2 in-service distributions.    The Plan eliminates a Participant's (other than a more than 5% owner) right to receive
in-service distributions on April 1 of the calendar year following the year in which the Participant attains age 701/2 for Plan Years beginning after: January 1, 2000.
	
[X]	
 	

(l)	
 	
Allocation of earnings.    The earnings allocation provisions under Section 9.08 are effective: as of the first day implemented by the Trustee.
	
[X]	
 	

(m)	
 	
Elimination of optional forms of benefit.    The Employer elects prospectively to eliminate the following optional forms of benefit: (Choose one or
more of (1), (2) and (3) as applicable)
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

25

 

	

 	
 	
[X]	
 	

(1)	
 	

QJSA and QPSA benefits as described in Plan Sections 6.04, 6.05 and 6.06 effective: July 1, 2001 (the QJSA form of benefit having been first instituted under the Plan effective September 1, 1998.
	

 	
 	
[n/a]	
 	

(2)	
 	

Installment distributions as described in Section 6.03 effective:            .
	

 	
 	
[n/a]	
 	

(3)	
 	

Other optional forms of benefit (Any election to eliminate must be consistent with Treas. Reg. §1.411(d)-4):            .
	
[X]	
 	

(n)	
 	
Special effective date(s):    The maximum rate of deferral at Section 3.02 (a)(1) is effective July 1, 2001. The addendum regarding Early Retirement Age is
effective as of the dates stated therein. .
	

For periods prior to the above-specified special effective date(s), the Plan terms in effect prior to its restatement under this Adoption Agreement will control for purposes of the designated provisions. A special effective date may not result in the
delay of a Plan provision beyond the permissible effective date under any applicable law.
	
APPENDIX B

GUST Remedial Amendment Period Elections
	

36.	
 	

The following GUST restatement elections apply: (Choose one or more of (a) through (j) as applicable)
	
[n/a]	
 	

(a)	
 	
Highly Compensated Employee elections. The Employer makes the following remedial amendment period elections with respect to the Highly Compensated Employee definition:

	 	 	(1)	 	1997:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year election.	 	 	 	 
	 	 	 	 	 	 	[n/a]	 	Calendar year data election.	 	 	 	 	 	 	 	 
	 	 	(2)	 	1998:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year data election.	 	 	 	 
	 	 	(3)	 	1999:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year data election.	 	 	 	 
	 	 	(4)	 	2000:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year data election.	 	 	 	 
	 	 	(5)	 	2001:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year data election.	 	 	 	 
	 	 	(6)	 	2002:	 	[n/a]	 	Top paid group election.	 	[n/a]	 	Calendar year data election.	 	 	 	 

	[X]	 	(b)	 	401(k) testing methods. The Employer makes the following remedial amendment period elections with respect to the ADP test and the ACP test: [Note: The Employer may use a
different testing method for the ADP and ACP tests through the end of the Plan Year in which the Employer executes its GUST restated Plan.]

	 	 	(1)	 	1997:	 	[n/a]	 	prior year	 	[n/a]	 	current year	 	1997:	 	[n/a]	 	prior year	 	[n/a]	 	current year
	 	 	(2)	 	1998:	 	[n/a]	 	prior year	 	[n/a]	 	current year	 	1998:	 	[n/a]	 	prior year	 	[n/a]	 	current year
	 	 	(3)	 	1999:	 	[n/a]	 	prior year	 	[n/a]	 	current year	 	1999:	 	[n/a]	 	prior year	 	[n/a]	 	current year
	 	 	(4)	 	2000:	 	[n/a]	 	prior year	 	[n/a]	 	current year	 	2000:	 	[n/a]	 	prior year	 	[n/a]	 	current year

26

 

	 	 	(5)	 	2001:	 	[X]	 	prior year	 	[n/a]	 	current year	 	2001:	 	[X]	 	prior year	 	[n/a]	 	current year
	 	 	(6)	 	2002:	 	[n/a]	 	prior year	 	[n/a]	 	current year	 	2002:	 	[n/a]	 	prior year	 	[n/a]	 	current year

	
[X]	
 	

(c)	
 	
Delayed application of SBJPA required beginning date. The Employer elects to delay the effective date for the required beginning date provision of Plan Section 6.02 until Plan Years
beginning after: January 1, 2000 .
	
[X]	
 	

(d)	
 	
Model Amendment for required minimum distributions. The Employer adopts the IRS Model Amendment in Plan Section 6.02(E) effective January 1, 2002. [Note: The date must not be earlier than January 1, 2001.]
	
Defined Benefit Limitation
	

[n/a]	
 	

(e)	
 	
Code §415(e) repeal. The repeal of the Code §415(e) limitation is effective for Limitation Years beginning
after            . [Note: If the Employer does not make an election under (e), the repeal is effective for Limitation Years beginning after December 31,
1999.]
	
Code §415(e) limitation.    To the extent necessary to satisfy the limitation under Plan Section 3.17 for Limitation Years beginning prior to the repeal of Code
§415(e), the Employer will reduce: (Choose one of (f) or (g))
	
[n/a]	
 	

(f)	
 	

The Participant's projected annual benefit under the defined benefit plan.
	
[n/a]	
 	

(g)	
 	

The Employer's contribution or allocation on behalf of the Participant to the defined contribution plan and then, if necessary, the Participant's projected annual benefit under the defined benefit plan.
	
Coordination with top-heavy minimum allocation.    The Plan Administrator will apply the top-heavy minimum allocation provisions of Article XII with the following
modifications: (Choose (h) or choose (i) or (j) or both as applicable)
	
[n/a]	
 	

(h)	
 	

No modifications.
	
[n/a]	
 	

(i)	
 	

For Non-Key Employees participating only in this Plan, the top-heavy minimum allocation is the minimum allocation determined by substituting            % (not less than 4%) for "3%," except:
(Choose one of (1) or (2))
	

 	
 	
[n/a]	
 	

(1)	
 	

No exceptions.
	

 	
 	
[n/a]	
 	

(2)	
 	

Plan Years in which the top-heavy ratio exceeds 90%.
	
[n/a]	
 	

(j)	
 	

For Non-Key Employees also participating in the defined benefit plan, the top-heavy minimum is: (Choose one of (1) or (2))
	

 	
 	
[n/a]	
 	

(1)	
 	

5% of Compensation irrespective of the contribution rate of any Key Employee: (Choose one of a. or b.)
	

 	
 	

 	
 	
[n/a]	
 	

a.	
 	

No exceptions.
	

 	
 	

 	
 	
[n/a]	
 	

b.	
 	

Substituting "71/2%" for "5%" if the top-heavy ratio does not exceed 90%.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

27

 

	

 	
 	
[n/a]	
 	

(2)	
 	

0%. [Note: The defined benefit plan must satisfy the top-heavy minimum benefit requirement for these Non-Key Employees.]
	
Actuarial assumptions for top-heavy calculation.    To determine the top-heavy ratio, the Plan Administrator will use the following interest rate and mortality assumptions
to value accrued benefits under a defined benefit plan:                        .

28

 
 
 

APPENDIX C
  Employer Notice And Acknowledgment    
  

ABN
AMRO Trust Services Company ("ABN AMRO") does not provide legal, consulting or tax advice in connection with the services provided to an Employer wishing to have their Plan placed on the form of
The Chicago Trust Company Master Retirement Plan (the "Master Retirement Plan"). These services are described in its separate Administrative Services Agreement with the Employer. ABN AMRO does not
undertake as part of its services to review the entire Plan or its underlying documentation, except to the extent necessary in order to place the current terms of the Employer's Plan onto the form of
the Master Retirement Plan, based on information provided by the Employer or its outside advisors. Whether or not ABN AMRO notes a potential defect the Employer's Plan, it does not assume
responsibility for correcting any defect in the Plan. 

While
ABN AMRO will notify the Employer to the extent required by IRS procedures, it does not have the ability nor does it undertake to evaluate such a defect at the level and detail needed to
determine if the Employer should make a request or take other action under IRS procedures (currently known as EPCRS). Only the Employer, the Plan Sponsor, or their legal representatives are permitted
to take action under EPCRS. 

The
Employer should consider, with the advice of counsel or another qualified plan advisor, what action may be appropriate, either under EPCRS or otherwise, to deal with any potential Plan defect or
other feature that the Employer knows or has notice of with respect to its Plan document or operation, in order to ensure the Plan's qualification under applicable laws. 

The
Employer (or any Participating Employer) understands that the adoption of the Plan under the form of the Master Retirement Plan, of which this Appendix C is hereby made a part, has
significant legal and tax consequences, and that it has consulted with its attorney prior to signing the Adoption Agreement. ABN AMRO assumes no responsibility or liability for the Employer's decision
to so adopt or not adopt the Plan. 

The
Employer further acknowledges that failure to amend and restate its Plan for the laws together known as GUST by the required deadline established by the IRS, will cause the Plan to be
disqualified, and that the Employer is responsible for timely providing ABN AMRO with all information necessary to complete the Master Retirement Plan as described above. 

By
signing the accompanying Adoption Agreement, and thus placing its Plan on the form of Master Retirement Plan (or by signing a Participation Agreement as a Participating Employer in the Plan), the
Employer acknowledges, accepts and agrees to this Appendix C as presented above. 

29

 
 

EGTRRA
  AMENDMENT TO THE
  PETCO ANIMAL SUPPLIES 401(K) PLAN    
  

 

	ARTICLE I

PREAMBLE
	1.1	 	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, this amendment shall be effective as of the first day of the
first plan year beginning after December 31, 2001.
	

1.2	
 	
Adoption by prototype sponsor. Except as otherwise provided herein, pursuant to Section 5.01 of Revenue Procedure 2000-20 (or pursuant to the corresponding provision in Revenue Procedure
89-9 or Revenue Procedure 89-13), the sponsor hereby adopts this amendment on behalf of all adopting employers.
	

1.3	
 	
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.
	
ARTICLE II

ADOPTION AGREEMENT ELECTIONS
	

 	
 	

	

 	
 	
The questions in this Article II only need to be completed in order to override the default provisions set forth below. If all of the default provisions will apply, then these questions should be
skipped.
	

 	
 	
Unless the employer elects otherwise in this Article II, the following defaults apply:
	

 	
 	
1)	
 	

The vesting schedule for matching contributions will be a 6 year graded schedule (if the plan currently has a graded schedule that does not satisfy EGTRRA) or a 3 year cliff schedule (if the plan currently has a cliff schedule that does not
satisfy EGTRRA), and such schedule will apply to all matching contributions (even those made prior to 2002).
	

 	
 	

2)	
 	

Rollovers are automatically excluded in determining whether the $5,000 threshold has been exceeded for automatic cash-outs (if the plan is not subject to the qualified joint and survivor annuity rules and provides for automatic cash-outs). This is
applied to all participants regardless of when the distributable event occurred.
	

 	
 	

3)	
 	

The suspension period after a hardship distribution is made will be 6 months and this will only apply to hardship distributions made after 2001.
	

 	
 	

4)	
 	

Catch-up contributions will be allowed.
	

 	
 	

5)	
 	

For target benefit plans, the increased compensation limit of $200,000 will be applied retroactively (i.e., to years prior to 2002).
	

 	
 	

	

2.1	
 	
Vesting Schedule for Matching Contributions
	

 	
 	

If there are matching contributions subject to a vesting schedule that does not satisfy EGTRRA, then unless otherwise elected below, for participants who complete an hour of service in a plan year beginning after December 31, 2001, the following
vesting schedule will apply to all matching contributions subject to a vesting schedule:
	

 	
 	

 	
 	

 
	
 	
 	

 	
 	

 

1

 

	

 	
 	

If the plan has a graded vesting schedule (i.e., the vesting schedule includes a vested percentage that is more than 0% and less than 100%) the following will apply:

	Years of vesting service
 
	 	Nonforfeitable percentage
	 
	2	 	20	%
	3	 	40	%
	4	 	60	%
	5	 	80	%
	6	 	100	%

	 	 	If the plan does not have a graded vesting schedule, then matching contributions will be nonforfeitable upon the completion of 3 years of vesting service.
	

 	
 	

In lieu of the above vesting schedule, the employer elects the following schedule:
	

 	
 	

a. [    ]	
 	

3 year cliff (a participant's accrued benefit derived from employer matching contributions shall be nonforfeitable upon the participant's completion of three years of vesting service).
	

 	
 	

b. [    ]	
 	

6 year graded schedule (20% after 2 years of vesting service and an additional 20% for each year thereafter).
	

 	
 	

c. [    ]	
 	

Other (must be at least as liberal as a. or the b. above):

	Years of vesting service
 
	 	Nonforfeitable percentage
	 
	 	 	 	%
	 	 	 	%
	 	 	 	%
	 	 	 	%
	 	 	 	%

	 	 	The vesting schedule set forth herein shall only apply to participants who complete an hour of service in a plan year beginning after December 31, 2001, and, unless the option below is elected, shall apply to
all matching contributions subject to a vesting schedule.
	

 	
 	

d. [    ]	
 	

The vesting schedule will only apply to matching contributions made in plan years beginning after December 31, 2001 (the prior schedule will apply to matching contributions made in prior plan years).
	

2.2	
 	
Exclusion of Rollovers in Application of Involuntary Cash-out Provisions (for profit sharing and 401(k) plans only). If the plan is not subject to the qualified joint and survivor annuity
rules and includes involuntary cash-out provisions, then unless one of the options below is elected, effective for distributions made after December 31, 2001, rollover contributions will be excluded in determining the value of the participant's
nonforfeitable account balance for purposes of the plan's involuntary cash-out rules.
	

 	
 	

a. [    ]	
 	

Rollover contributions will not be excluded.
	

 	
 	

b. [    ]	
 	

Rollover contributions will be excluded only with respect to distributions made after            . (Enter a date no earlier than December 31, 2001.)
	

 	
 	

c. [    ]	
 	

Rollover contributions will only be excluded with respect to participants who separated from service after            . (Enter a date. The date may be earlier than December 31,
2001.)
	
 	
 	

 	
 	

 

2

 

	

2.3	
 	
Suspension period of hardship distributions. If the plan provides for hardship distributions upon satisfaction of the safe harbor (deemed) standards as set forth in Treas. Reg.
Section 1.401(k)-1(d)(2)(iv), then, unless the option below is elected, the suspension period following a hardship distribution shall only apply to hardship distributions made after December 31, 2001.
	

 	
 	

[    ]	
 	

With regard to hardship distributions made during 2001, a participant shall be prohibited from making elective deferrals and employee contributions under this and all other plans until the later of January 1, 2002, or 6 months after receipt
of the distribution.
	

2.4	
 	
Catch-up contributions (for 401(k) profit sharing plans only): The plan permits catch-up contributions (Article VI) unless the option below is elected.
	

 	
 	

[    ]	
 	

The plan does not permit catch-up contributions to be made.
	

2.5	
 	
For target benefit plans only: The increased compensation limit ($200,000 limit) shall apply to years prior to 2002 unless the option below is elected.
	

 	
 	

[    ]	
 	

The increased compensation limit will not apply to years prior to 2002.
	
ARTICLE III

VESTING OF MATCHING CONTRIBUTIONS
	

3.1	
 	
Applicability. This Article shall apply to participants who complete an Hour of Service after December 31, 2001, with respect to accrued benefits derived from employer matching
contributions made in plan years beginning after December 31, 2001. Unless otherwise elected by the employer in Section 2.1 above, this Article shall also apply to all such participants with respect to accrued benefits derived from employer
matching contributions made in plan years beginning prior to January 1, 2002.
	

3.2	
 	
Vesting schedule. A participant's accrued benefit derived from employer matching contributions shall vest as provided in Section 2.1 of this amendment.
	
ARTICLE IV

INVOLUNTARY CASH-OUTS
	

4.1	
 	
Applicability and effective date. If the plan provides for involuntary cash-outs of amounts less than $5,000, then unless otherwise elected in Section 2.2 of this amendment, this Article
shall apply for distributions made after December 31, 2001, and shall apply to all participants. However, regardless of the preceding, this Article shall not apply if the plan is subject to the qualified joint and survivor annuity requirements
of Sections 401(a)(11) and 417 of the Code.
	

4.2	
 	
Rollovers disregarded in determining value of account balance for involuntary distributions. For purposes of the Sections of the plan that provide for the involuntary distribution of vested
accrued benefits of $5,000 or less, the value of a participant's nonforfeitable account balance shall be determined without regard to that portion of the account balance that is attributable to rollover contributions (and earnings allocable thereto)
within the meaning of Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of the participant's nonforfeitable account balance as so determined is $5,000 or less, then the plan shall immediately distribute
the participant's entire nonforfeitable account balance.
	
 	
 	

 	
 	

 

3

 

	
ARTICLE V

HARDSHIP DISTRIBUTIONS
	

5.1	
 	
Applicability and effective date. If the plan provides for hardship distributions upon satisfaction of the safe harbor (deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)
(2)(iv), then this Article shall apply for calendar years beginning after 2001.
	

5.2	
 	
Suspension period following hardship distribution. A participant who receives a distribution of elective deferrals after December 31, 2001, on account of hardship shall be prohibited from
making elective deferrals and employee contributions under this and all other plans of the employer for 6 months after receipt of the distribution. Furthermore, if elected by the employer in Section 2.3 of this amendment, a participant who
receives a distribution of elective deferrals in calendar year 2001 on account of hardship shall be prohibited from making elective deferrals and employee contributions under this and all other plans until the later of January 1, 2002, or
6 months after receipt of the distribution.
	
ARTICLE VI

CATCH-UP CONTRIBUTIONS
	
Catch-up Contributions. Unless otherwise elected in Section 2.4 of this amendment, all employees who are eligible to make elective deferrals under this plan and who have
attained age 50 before the close of the plan year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not be taken into
account for purposes of the provisions of the plan implementing the required limitations of Sections 402(g) and 415 of the Code. The plan shall not be treated as failing to satisfy the provisions of the plan implementing the requirements of
Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such catch-up contributions.
	
ARTICLE VII

INCREASE IN COMPENSATION LIMIT
	
Increase in Compensation Limit. 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 Section 401(a)(17)(B) of the Code. 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). If this is a target benefit plan, then except as otherwise elected in Section 2.5 of this amendment, for purposes of determining benefit accruals in a plan year
beginning after December 31, 2001, compensation for any prior determination period shall be limited to $200,000. 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.
	
ARTICLE VIII

PLAN LOANS
	
Plan loans for owner-employees or shareholder-employees. If the plan permits loans to be made to participants, then effective for plan loans made after December 31, 2001,
plan provisions prohibiting loans to any owner-employee or shareholder-employee shall cease to apply.
	
ARTICLE IX

LIMITATIONS ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)
	

9.1	
 	
Effective date. This Section shall be effective for limitation years beginning after December 31, 2001.
	
 	
 	

 	
 	

 

4

 

	

9.2	
 	
Maximum annual addition. Except to the extent permitted under Article VI of this amendment and Section 414(v) of the Code, if applicable, the annual addition that may be
contributed or allocated to a participant's account under the plan for any limitation year shall not exceed the lesser of:
	

 	
 	

a.	
 	

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

 	
 	

b.	
 	

100 percent of the participant's compensation, within the meaning of Section 415(c)(3) of the Code, for the limitation year. The compensation limit referred to in b. shall not apply to any contribution for medical benefits after separation
from service (within the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an annual addition.
	
ARTICLE X

MODIFICATION OF TOP-HEAVY RULES
	

10.1	
 	
Effective date. This Article shall apply for purposes of determining whether the plan is a top-heavy plan under Section 416(g) of the Code for plan years beginning after December 31,
2001, and whether the plan satisfies the minimum benefits requirements of Section 416(c) of the Code for such years. This Article amends the top-heavy provisions of the plan.
	

10.2	
 	
Determination of top-heavy status.
	

10.2.1	
 	
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 Section 416(i)(1) of the Code 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 Section 415(c)(3) of the Code. The determination of who is a key employee will be made in accordance with Section 416
(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder.
	

10.2.2	
 	
Determination of present values and amounts. This Section 10.2.2 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 Section 416(g)(2) of the Code 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 Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than separation
from service, death, or disability, this provision shall be applied by substituting "5-year period" for "1-year period."
	

 	
 	

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.
	
 	
 	

 	
 	

 

5

 

	

10.3	
 	
Minimum benefits.
	

10.3.1	
 	
Matching contributions. Employer matching contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and
the plan. The preceding sentence shall apply with respect to matching contributions under the plan or, if the plan provides that the minimum contribution requirement shall be met in another plan, such other plan. Employer matching contributions that
are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Section 401(m) of the Code.
	

10.3.2	
 	
Contributions under other plans. The employer may provide, in an addendum to this amendment, 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 Section 401(k)(12) of the Code and matching contributions with respect to which the requirements of Section 401(m)(11) of the Code are met). The addendum
should include the name of the other plan, the minimum benefit that will be provided under such other plan, and the employees who will receive the minimum benefit under such other plan.
	
ARTICLE XI

DIRECT ROLLOVERS
	

11.1	
 	
Effective date. This Article shall apply to distributions made after December 31, 2001.
	

11.2	
 	
Modification of definition of eligible retirement plan. For purposes of the direct rollover provisions of the plan, an eligible retirement plan shall also mean an annuity contract described in
Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such plan from this plan. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate
payee under a qualified domestic relation order, as defined in Section 414(p) of the Code.
	

11.3	
 	
Modification of definition of eligible rollover distribution to exclude hardship distributions. For purposes of the direct rollover provisions of the plan, any amount that is distributed on
account of hardship shall not be an eligible rollover distribution and the distributee may not elect to have any portion of such a distribution paid directly to an eligible retirement plan.
	

11.4	
 	
Modification of definition of eligible rollover distribution to include after-tax employee contributions. For purposes of the direct rollover provisions in the plan, 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 Section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Code 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.
	
ARTICLE XII

ROLLOVERS FROM OTHER PLANS
	
Rollovers from other plans. The employer, operationally and on a nondiscriminatory basis, may limit the source of rollover contributions that may be accepted by this
plan.
	
 	
 	

 	
 	

 

6

 

	
ARTICLE XIII

REPEAL OF MULTIPLE USE TEST
	
Repeal of Multiple Use Test. The multiple use test described in Treasury Regulation Section 1.401(m)-2 and the plan shall not apply for plan years beginning after
December 31, 2001.
	
ARTICLE XIV

ELECTIVE DEFERRALS
	

14.1	
 	
Elective Deferrals—Contribution Limitation. No participant shall be permitted to have elective deferrals made under this plan, or any other qualified plan maintained by the employer
during any taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect for such taxable year, except to the extent permitted under Article VI of this amendment and Section 414(v) of the Code,
if applicable.
	

14.2	
 	
Maximum Salary Reduction Contributions for SIMPLE plans. If this is a SIMPLE 401(k) plan, then except to the extent permitted under Article VI of this amendment and Section 414(v)
 of the Code, if applicable, the maximum salary reduction contribution that can be made to this plan is the amount determined under Section 408(p)(2)(A)(ii) of the Code for the calendar year.
	
ARTICLE XV

SAFE HARBOR PLAN PROVISIONS
	
Modification of Top-Heavy Rules. The top-heavy requirements of Section 416 of the Code and the plan 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 Section 401(k)(12) of the Code and matching contributions with respect to which the requirements of Section 401(m)(11) of the Code are
met.
	
ARTICLE XVI

DISTRIBUTION UPON SEVERANCE OF EMPLOYMENT
	

16.1	
 	
Effective date. This Article shall apply for distributions and transactions made after December 31, 2001, regardless of when the severance of employment occurred.
	

16.2	
 	
New distributable event. A participant's elective deferrals, qualified nonelective contributions, qualified matching contributions, and earnings attributable to these contributions shall be
distributed on account of the participant's severance from employment. However, such a distribution shall be subject to the other provisions of the plan regarding distributions, other than provisions that require a separation from service before such
amounts may be distributed.
	

Except with respect to any election made by the employer in Article II, this amendment is hereby adopted by the prototype sponsor on behalf of all adopting employers on:
	
[Sponsor's signature and Adoption Date are on file with Sponsor]
	
NOTE: The employer only needs to execute this amendment if an election has been made in Article II of this amendment.
	

This amendment has been executed this                        day
of                        ,            .
	

Name of Employer: Petco Animal Supplies, Inc.

	By:	 	    
	 	 
	 	 	EMPLOYER	 	 
	

Name of Plan: Petco Animal Supplies 401(k) Plan

7

 
 

THE CHICAGO TRUST COMPANY
  MASTER RETIREMENT PLAN    
  

 

Defined Contribution Plan  

 
  TABLE OF CONTENTS    
  

	ARTICLE I, DEFINITIONS
	1.01	 	Account	 	1
	1.02	 	Account Balance or Accrued Benefit	 	1
	1.03	 	Accounting Date	 	1
	1.04	 	Adoption Agreement	 	1
	1.05	 	Beneficiary	 	1
	1.06	 	Code	 	1
	1.07	 	Compensation	 	2
	1.08	 	Disability	 	3
	1.09	 	Earned Income	 	3
	1.10	 	Effective Date	 	4
	1.11	 	Employee	 	4
	1.12	 	Employer	 	4
	1.13	 	ERISA	 	4
	1.14	 	Highly Compensated Employee	 	4
	1.15	 	Hour of Service	 	5
	1.16	 	Leased Employee	 	6
	1.17	 	Nonhighly Compensated Employee	 	7
	1.18	 	Nontransferable Annuity	 	7
	1.19	 	Paired Plans	 	7
	1.20	 	Participant	 	7
	1.21	 	Plan	 	7
	1.22	 	Plan Administrator	 	7
	1.23	 	Plan Entry Date	 	8
	1.24	 	Plan Year	 	8
	1.25	 	Protected Benefit	 	8
	1.26	 	Related Group/Related Employer	 	8
	1.27	 	Self-Employed Individual/Owner-Employee/Shareholder-Employee	 	8
	1.28	 	Separation from Service	 	9
	1.29	 	Service	 	9
	1.30	 	Service with a Predecessor Employer	 	9
	1.31	 	Trust	 	9
	1.32	 	Trust Fund	 	9
	1.33	 	Trustee	 	9
	1.34	 	Vested	 	9
	ARTICLE II, ELIGIBILITY AND PARTICIPATION
	2.01	 	Eligibility	 	9
	2.02	 	Age and Service Conditions	 	9
	2.03	 	Break in Service—Participation	 	10
	2.04	 	Participation upon Re-employment	 	11
	2.05	 	Change in Employment Status	 	11
	2.06	 	Election Not to Participate	 	11

i

 

	ARTICLE III, EMPLOYER CONTRIBUTIONS AND FORFEITURES
	3.01	 	Employer Contributions	 	12
	3.02	 	Deferral Contributions	 	13
	3.03	 	Matching Contributions	 	13
	3.04	 	Employer Contribution Allocation	 	13
	3.05	 	Forfeiture Allocation	 	16
	3.06	 	Allocation Conditions	 	16
	3.07	 	Annual Additions Limitation	 	18
	3.08	 	Estimating Compensation	 	18
	3.09	 	Determination Based on Actual Compensation	 	19
	3.10	 	Disposition of Allocated Excess Amount	 	19
	3.11	 	Combined Plans Annual Additions Limitation	 	19
	3.12	 	Estimating Compensation	 	20
	3.13	 	Determination Based on Actual Compensation	 	20
	3.14	 	Ordering of Annual Addition Allocations	 	20
	3.15	 	Disposition of Allocated Excess Amount Attributable to Plan	 	20
	3.16	 	Other Defined Contribution Plans Limitation	 	20
	3.17	 	Defined Benefit Plan Limitation	 	20
	3.18	 	Definitions—Article III	 	21
	ARTICLE IV, PARTICIPANT CONTRIBUTIONS
	4.01	 	Participant Contributions	 	25
	4.02	 	Employee Contributions	 	25
	4.03	 	DECs	 	25
	4.04	 	Rollover Contributions	 	25
	4.05	 	Participant Contributions—Vesting	 	26
	4.06	 	Participant Contributions—Distribution	 	26
	4.07	 	Participant Contributions—Investment and Accounting	 	26
	ARTICLE V, VESTING
	5.01	 	Normal/Early Retirement Age	 	26
	5.02	 	Participant Death or Disability	 	26
	5.03	 	Vesting Schedule	 	26
	5.04	 	Cash-out Distributions to Partially-Vested Participants/Restoration of Forfeited Account Balance	 	27
	5.05	 	Accounting for Cash-Out Repayment	 	29
	5.06	 	Year of Service—Vesting	 	29
	5.07	 	Break in Service and Forfeiture Break in Service—Vesting	 	29
	5.08	 	Included Years of Service—Vesting	 	29
	5.09	 	Forfeiture Occurs	 	30
	5.10	 	Rule of Parity—Vesting	 	30
	5.11	 	Amendment to Vesting Schedule	 	30
	5.12	 	Deferral Contributions Taken into Account	 	30
	ARTICLE VI, DISTRIBUTIONS
	6.01	 	Timing of Distributions	 	31
	6.02	 	Required Minimum Distributions	 	33
	6.03	 	Method of Distribution	 	37
	6.04	 	Annuity Distributions to Participants and to Surviving Spouses	 	37
	6.05	 	Waiver Election—QJSA	 	38
	6.06	 	Waiver Election—QPSA	 	39
	6.07	 	Distributions Under Qualified Domestic Relations Orders (QDRO)	 	40
	6.08	 	Defaulted Loan—Timing of Offset	 	41
	6.09	 	Hardship Distribution	 	41
	6.10	 	Direct Rollover of Eligible Rollover Distributions	 	41
	6.11	 	TEFRA Elections	 	42

ii

 

	ARTICLE VII, EMPLOYER ADMINISTRATIVE PROVISIONS
	7.01	 	Information to Plan Administrator	 	43
	7.02	 	No Responsibility for Others	 	43
	7.03	 	Indemnity of Certain Fiduciaries	 	43
	7.04	 	Employer Direction of Investment	 	43
	7.05	 	Evidence	 	43
	7.06	 	Plan Contributions	 	44
	7.07	 	Employer Action	 	44
	7.08	 	Fiduciaries Not Insurers	 	44
	7.09	 	Plan Terms Binding	 	44
	7.10	 	Word Usage	 	44
	7.11	 	State Law	 	44
	7.12	 	Prototype Plan Status	 	44
	7.13	 	Employment Not Guaranteed	 	44
	ARTICLE VIII, PARTICIPANT ADMINISTRATIVE PROVISIONS
	8.01	 	Beneficiary Designation	 	44
	8.02	 	No Beneficiary Designation/Death of Beneficiary	 	45
	8.03	 	Assignment or Alienation	 	46
	8.04	 	Information Available	 	46
	8.05	 	Claims Procedure for Denial of Benefits	 	46
	8.06	 	Participant Direction of Investment	 	46
	ARTICLE IX, PLAN ADMINISTRATOR
	9.01	 	Compensation and Expenses	 	47
	9.02	 	Resignation and Removal	 	47
	9.03	 	General Powers and Duties	 	47
	9.04	 	Plan Loans	 	48
	9.05	 	Funding Policy	 	48
	9.06	 	Individual Accounts	 	48
	9.07	 	Value of Participant's Account Balance	 	49
	9.08	 	Allocation and Distribution of Net Income, Gain or Loss	 	49
	9.09	 	Individual Statement	 	50
	9.10	 	Account Charged	 	51
	9.11	 	Lost Participants	 	51
	9.12	 	Plan Correction	 	51
	9.13	 	No Responsibility for Others	 	52
	9.14	 	Notice, Designation, Election, Consent and Waiver	 	52
	ARTICLE X, TRUSTEE AND CUSTODIAN, POWERS AND DUTIES
	10.01	 	Acceptance	 	53
	10.02	 	Receipt of Contributions	 	53
	10.03	 	Investment Powers	 	53
	10.04	 	Records and Statements	 	58
	10.05	 	Fees and Expenses from Fund	 	58
	10.06	 	Parties to Litigation	 	58
	10.07	 	Professional Agents	 	59
	10.08	 	Distribution of Cash or Property	 	59
	10.09	 	Participant or Beneficiary Incapacitated	 	59
	10.10	 	Distribution Directions	 	59
	10.11	 	Third Party Reliance	 	59
	10.12	 	Multiple Trustees	 	59
	10.13	 	Resignation and Removal	 	60
	10.14	 	Successor Trustee Acceptance	 	60
	10.15	 	Valuation of Trust	 	60
	10.16	 	Limitation on Liability—If Investment Manager, Ancillary Trustee or Independent Fiduciary Appointed	 	60
	10.17	 	Investment in Group Trust Fund	 	61
	10.18	 	Appointment of Ancillary Trustee or Independent Fiduciary	 	61

iii

 

	ARTICLE XI, PROVISIONS RELATING TO INSURANCE AND INSURANCE COMPANY
	11.01	 	Insurance Benefit	 	62
	11.02	 	Limitation on Life Insurance Protection	 	63
	11.03	 	Definitions	 	63
	11.04	 	Dividend Plan	 	64
	11.05	 	Insurance Company Not a Party to Agreement	 	64
	11.06	 	No Responsibility for Others	 	64
	11.07	 	Duties of Insurance Company	 	64
	ARTICLE XII, TOP-HEAVY PROVISIONS
	12.01	 	Determination of Top-Heavy Status	 	65
	12.02	 	Definitions	 	65
	12.03	 	Top-Heavy Minimum Allocation	 	66
	12.04	 	Determining Top-Heavy Contribution Rates	 	67
	12.05	 	Plan Which Will Satisfy Top-Heavy	 	67
	12.06	 	Top-Heavy Vesting	 	67
	ARTICLE XIII, EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION
	13.01	 	Exclusive Benefit	 	68
	13.02	 	Amendment by Employer	 	68
	13.03	 	Amendment by Prototype Plan Sponsor	 	69
	13.04	 	Plan Termination or Suspension	 	69
	13.05	 	Full Vesting on Termination	 	69
	13.06	 	Post Termination Procedure and Distribution	 	69
	13.07	 	Merger/Direct Transfer	 	70
	ARTICLE XIV, CODE §401(k) AND CODE §401(m) ARRANGEMENTS
	14.01	 	Application	 	72
	14.02	 	401(k) Arrangement	 	72
	14.03	 	Definitions	 	77
	14.04	 	Matching Contributions/ Employee Contributions	 	80
	14.05	 	Deferral Deposit Timing/Employer Contribution Status	 	80
	14.06	 	Special Accounting and Allocation Provisions	 	80
	14.07	 	Annual Elective Deferral Limitation	 	81
	14.08	 	Actual Deferral Percentage (ADP) Test	 	82
	14.09	 	Actual Contribution Percentage (ACP) Test	 	84
	14.10	 	Multiple Use Limitation	 	86
	14.11	 	Distribution Restrictions	 	87
	14.12	 	Special Allocation and Valuation Rules	 	87

iv

  

 
 

THE CHICAGO TRUST COMPANY
  MASTER RETIREMENT PLAN    
  

 
 

DEFINED CONTRIBUTION PROTOTYPE PLAN AND TRUST AGREEMENT
  BASIC PLAN DOCUMENT # 01    
  

        The Chicago Trust Company, in its capacity as Prototype Plan Sponsor, establishes this Prototype Plan intended to
conform to and qualify under §401 and §501 of the Internal Revenue Code of 1986, as amended. An Employer establishes a Plan and Trust under this Prototype Plan by executing an
Adoption Agreement. If the Employer adopts this Plan as a restated Plan in substitution for, and in amendment of, an existing plan, the provisions of this Plan, as a restated Plan, apply solely to an
Employee whose employment with the Employer terminates on or after the restated Effective Date of the Plan. If an Employee's employment with the Employer terminates prior to the restated Effective
Date, that Employee is entitled to benefits under the Plan as the Plan existed on the date of the Employee's termination of employment. 

 
 

ARTICLE I
  DEFINITIONS    
  

        1.01 "Account" means the separate Account(s) which the Plan Administrator or the Trustee maintains under the Plan for a
Participant. 

        1.02 "Account Balance" or "Accrued Benefit" means the amount standing in a Participant's Account(s) as of any date derived
from Employer contributions and from Participant contributions, if any. 

        1.03 "Accounting Date" means the last day of the Plan Year. The Plan Administrator will allocate Employer contributions and
forfeitures for a particular Plan Year as of the Accounting Date of that Plan Year, and on such other dates, if any, as the Plan Administrator determines, consistent with the Plan's allocation
conditions and other provisions. 

        1.04 "Adoption Agreement" means the document executed by each Employer adopting this Plan. References to Adoption Agreement
within this basic plan document are to the Adoption Agreement as completed and executed by a particular Employer unless the context clearly indicates otherwise. An adopting Employer's Adoption
Agreement and this basic plan document together constitute a single Plan and Trust of the Employer. Each elective provision of the Adoption Agreement corresponds (by its parenthetical section
reference) to the section of the Plan which grants the election. Each Adoption Agreement offered under this Plan is either a Nonstandardized Plan or a Standardized Plan, as identified in that Adoption
Agreement. The provisions of this Plan apply in the same manner to Nonstandardized Plans and to Standardized Plans unless otherwise specified. All section references within an Adoption Agreement are
Adoption Agreement section references unless the context clearly indicates otherwise. 

        1.05 "Beneficiary" means a person designated by a Participant or by the Plan who is or may become entitled to a benefit under
the Plan. A Beneficiary who becomes entitled to a benefit under the Plan remains a Beneficiary under the Plan until the Trustee has fully distributed to the Beneficiary his/her Plan benefit. A
Beneficiary's right to (and the Plan Administrator's or a Trustee's duty to provide to the Beneficiary) information or data concerning the Plan does not arise until the Beneficiary first becomes
entitled to receive a benefit under the Plan. 

        1.06 "Code" means the Internal Revenue Code of 1986, as amended and includes applicable Treasury regulations. 

1

 

        1.07 "Compensation" means a Participant's W-2 wages, Code §3401(a) wages, or 415 compensation except,
in the case of a Self-Employed Individual, Compensation means Earned Income as defined in Section 1.09. The Employer in its Adoption Agreement must specify which definition of
Compensation (Section 1.07(A), (B) or (C)) applies under the Plan and any modifications thereto, for purposes of contribution allocations under Article III. 

        Any
reference in the Plan to Compensation is a reference to the definition in this Section 1.07, unless the Plan reference, or the Employer in its Adoption Agreement, modifies
this definition. The Plan Administrator will take into account only Compensation actually paid during (or as permitted under the Code, paid for) the relevant period. A Compensation payment includes
Compensation paid by the Employer through another person under the common paymaster provisions in Code §§3121 and 3306. Compensation, unless otherwise specified in the Adoption
Agreement, does not include any form of
remuneration (including severance pay and vacation pay) paid to the Participant after the Participant incurs a Separation from Service. 

        (A)    W-2 Wages.    W-2 wages means wages for federal income tax withholding purposes, as
defined under Code §3401(a), plus all other payments to an Employee in the course of the Employer's trade or business, for which the Employer must furnish the Employee a written statement
under Code §§6041, 6051 and 6052, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or
services performed (such as the exception for agricultural labor in Code §3401(a)(2)). 

        (B)    Code §3401(a) Wages.    Code §3401(a) wages means wages within the meaning of Code
§3401(a) for the purposes of income tax withholding at the source, but determined without regard to any rules that limit the remuneration included in wages based on the nature or the
location of the employment or the services performed (such as the exception for agricultural labor in Code §3401(a)(2)). 

        (C)    Code §415 Compensation (current income definition).    Code §415 compensation means the
Employee's wages, salaries, fees for professional service and other amounts received for personal services actually rendered in the course of employment with the Employer maintaining the Plan to the
extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespersons, compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses, fringe benefits and reimbursements or other expense allowances under a nonaccountable plan as described in Treas. Reg. §1.62-2(c)). 

        Code
§415 compensation does not include: 

        (a)  Employer
contributions to a plan of deferred compensation to the extent the contributions are not included in the gross income of the Employee for the taxable year in
which contributed, Employer contributions on behalf of an Employee to a Simplified Employee Pension Plan to the extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whether such amounts are includible in the gross income of the Employee when distributed. 

        (b)  Amounts
realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by an Employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture. 

        (c)  Amounts
realized from the sale, exchange or other disposition of stock acquired under a stock option described in Part II, Subchapter D, Chapter 1, Subtitle A of
the Code. 

        (d)  Other
amounts which receive special tax benefits, such as premiums for group term life insurance (but only to the extent that the premiums are not includible in the
gross income of the Employee), or contributions made by an Employer (whether or not under a salary reduction 

2

 

agreement) toward the purchase of an annuity contract described in Code §403(b) (whether or not the contributions are excludible from the gross income of the Employee). 

        (D)    Elective Contributions.    Compensation under Sections 1.07(A), 1.07(B) and 1.07(C) includes Elective
Contributions unless the Employer in its Adoption Agreement elects to exclude Elective Contributions. "Elective Contributions" are amounts excludible from the Employee's gross income under Code
§§125, 132(f)(4), 402(e)(3), 402(h)(2), 403(b), 408(p) or 457, and contributed by the Employer, at the Employee's election, to a cafeteria plan, a qualified transportation
fringe benefit plan, a 401(k) arrangement, a SARSEP, a tax-sheltered annuity, a SIMPLE plan or a Code §457 plan. Notwithstanding the preceding sentence, amounts described in
§132(f)(4) are not Elective Contributions until Plan Years beginning on or after January 1, 2001, unless the Plan Administrator operationally has included such amounts effective as
of an earlier Plan Year beginning no earlier than January 1, 1998. 

        (E)    Compensation Dollar Limitation.    For any Plan Year, the Plan Administrator in allocating contributions under
Article III or in testing the Plan for nondiscrimination, cannot take into account more than $150,000 (or such larger or smaller amount as the Commissioner of Internal Revenue may prescribe) of
any Participant's Compensation. Notwithstanding the foregoing, an Employee under a 401(k) arrangement may make elective deferrals with respect to Compensation which exceeds the Plan Year Compensation
limitation, provided such deferrals otherwise satisfy Code §402(g) and other applicable limitations. 

        (F)    Nondiscrimination.    For purposes of determining whether the Plan discriminates in favor of Highly Compensated
Employees, Compensation means Compensation as defined in this Section 1.07, except: (1) the Employer annually may elect operationally to include or to exclude Elective Contributions,
irrespective of the Employer's election in its Adoption Agreement regarding Elective Contributions; and (2) the Plan Administrator will disregard any elections made in the "modifications to
Compensation definition" section of Adoption Agreement Section 1.07. The Employer's election described in clause (1) must be consistent and uniform with respect to all Employees and all
plans of the Employer for any particular Plan Year. The Employer, irrespective of clause (2), may elect to exclude from this nondiscrimination definition of Compensation any items of
Compensation excludible under Code §414(s) and the applicable Treasury regulations, provided such adjusted definition conforms to the nondiscrimination requirements of those regulations.
Furthermore, for nondiscrimination purposes, including the computation of an Employee's actual deferral percentage ("ADP") or actual contribution percentage ("ACP"), the Plan Administrator may limit
Compensation taken into account to Compensation received only for the portion of the Plan Year in which the Employee was a Participant and only for the portion of the Plan Year in which the Plan or
the 401(k) arrangement was in effect. 

        1.08 "Disability" means the Participant, because of a physical or mental disability, will be unable to perform the duties of
his/her customary position of employment (or is unable to engage in any
substantial gainful activity) for an indefinite period which the Plan Administrator considers will be of long continued duration. A Participant also is disabled if he/she incurs the permanent loss or
loss of use of a member or function of the body, or is permanently disfigured, and incurs a Separation from Service. A Participant is disabled on the date the Plan Administrator determines the
Participant satisfies the definition of Disability. The Plan Administrator may require a Participant to submit to a physical examination in order to confirm Disability. The Plan Administrator will
apply the provisions of this Section 1.08 in a nondiscriminatory, consistent and uniform manner. The Employer may provide an alternative definition of Disability in an Addendum to its Adoption
Agreement. 

        1.09 "Earned Income" means net earnings from self-employment in the trade or business with respect to which the
Employer has established the Plan, provided personal services of the Self-Employed Individual are a material income producing factor. The Plan Administrator will determine net earnings
without regard to items excluded from gross income and the deductions 

3

 

allocable to those items. The Plan Administrator will determine net earnings after the deduction allowed to the Self-Employed Individual for all contributions made by the Employer to a
qualified plan and after the deduction allowed to the Self-Employed Individual under Code §164(f) for self-employment taxes. 

        1.10 "Effective Date" of this Plan is the date specified in the Adoption Agreement unless otherwise for a specified purpose
provided within this basic plan document or within (as part of the Adoption Agreement) a Participation Agreement, an Addendum, or within Appendices A or B. 

        1.11 "Employee" means any common law employee, Self-Employed Individual, Leased Employee or other person the Code
treats as an employee of the Employer for purposes of the Employer's qualified plan. The Employer in its Adoption Agreement must elect or specify any Employee, or class of Employees, not eligible to
participate in the Plan (an "excluded Employee"). 

        (A)    Collective Bargaining Employees.    If the Employer elects in its Adoption Agreement to exclude collective
bargaining Employees from eligibility to participate, the exclusion applies to any Employee 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, if: (1) retirement benefits were the subject of good faith bargaining; and (2) two percent or
less of the employees covered by the agreement are "professionals" as defined in Treas. Reg. §1.410(b)-9, unless the collective bargaining agreement requires the Employee to be
included within 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. 

        (B)    Nonresident Aliens.    If the Employer elects in its Adoption Agreement to exclude nonresident aliens from
eligibility to participate, the exclusion applies to any nonresident alien Employee who does not receive any earned income, as defined in Code §911(d)(2), from the Employer which
constitutes United States source income, as defined in Code §861(a)(3). 

        (C)    Reclassified Employees.    If the Employer elects in its Adoption Agreement to exclude reclassified Employees
from eligibility to participate, the exclusion applies to any person the Employer does not treat as an Employee (including, but not limited to, independent contractors, persons the Employer pays
outside of its payroll system and out-sourced workers) for federal income tax withholding purposes under Code §3401(a), but for whom there is a binding determination the
individual is an Employee or a Leased Employee of the Employer. 

        1.12 "Employer" means each employer who establishes a Plan under this Prototype Plan by executing an Adoption Agreement and
includes to the extent described in Section 1.26 a Related Employer and a Participating Employer. The Employer for purposes of acting as Plan Administrator, making Plan amendments, terminating
the Plan or performing other ERISA settlor functions, means the signatory Employer to the Adoption Agreement Execution Page and does not include any Related Employer or Participating Employer. 

        1.13 "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and includes applicable Department of
Labor regulations. 

        1.14 "Highly Compensated Employee" means an Employee who: 

        (a)  during
the Plan Year or during the preceding Plan Year, is a more than 5% owner of the Employer (applying the constructive ownership rules of Code §318, and
applying the principles of Code §318, for an unincorporated entity); or 

        (b)  during
the preceding Plan Year had Compensation in excess of $80,000 (as adjusted by the Commissioner of Internal Revenue for the relevant year) and, if the Employer
under its 

4

 

Adoption Agreement Appendices A or B, makes the top-paid group election, was part of the top-paid 20% group of Employees (based
on Compensation for the preceding Plan Year). 

        For
purposes of this Section 1.14, "Compensation" means Compensation as defined in Section 1.07, except any exclusions from Compensation the Employer elects in Adoption
Agreement Section 1.07 do not apply, and Compensation specifically includes Elective Contributions. The Plan Administrator must make the determination of who is a Highly Compensated Employee,
including the determinations of the number and identity of the top-paid 20% group, consistent with Code §414(q) and regulations issued under that Code section. The Employer in
its Adoption Agreement Appendices A or B may make a calendar year data election to determine the Highly Compensated Employees for the Plan Year, as prescribed by Treasury regulations or by other
guidance published in the Internal Revenue Bulletin. A calendar year data election must apply to all plans of the Employer which reference the highly
compensated employee definition in Code §414(q). For purposes of this Section 1.14, if the current Plan Year is the first year of the Plan, then the term "preceding Plan Year" means
the 12-consecutive month period immediately preceding the current Plan Year. 

        1.15 "Hour of Service" means: 

        (a)  Each
Hour of Service for which the Employer, either directly or indirectly, pays an Employee, or for which the Employee is entitled to payment, for the performance of
duties. The Plan Administrator credits Hours of Service under this Paragraph (a) to the Employee for the computation period in which the Employee performs the duties, irrespective of when paid; 

        (b)  Each
Hour of Service for back pay, irrespective of mitigation of damages, to which the Employer has agreed or for which the Employee has received an award. The Plan
Administrator credits Hours of Service under this Paragraph (b) to the Employee for the computation period(s) to which the award or the agreement pertains rather than for the computation period
in which the award, agreement or payment is made; and 

        (c)  Each
Hour of Service for which the Employer, either directly or indirectly, pays an Employee, or for which the Employee is entitled to payment (irrespective of whether
the employment relationship is terminated), for reasons other than for the performance of duties during a computation period, such as leave of absence, vacation, holiday, sick leave, illness,
incapacity (including disability), layoff, jury duty or military duty. The Plan Administrator will credit no more than 501 Hours of Service under this Paragraph (c) to an Employee on account of
any single continuous period during which the Employee does not perform any duties (whether or not such period occurs during a single computation period). The Plan Administrator credits Hours of
Service under this Paragraph (c) in accordance with the rules of paragraphs (b) and (c) of Labor Reg. §2530.200b-2, which the Plan, by this reference,
specifically incorporates in full within this Paragraph (c). 

        The
Plan Administrator will not credit an Hour of Service under more than one of the above Paragraphs (a), (b) or (c). A computation period for purposes of this
Section 1.15 is the Plan Year, Year of Service period, Break in Service period or other period, as determined under the Plan provision for which the Plan Administrator is measuring an
Employee's Hours of Service. The Plan Administrator will resolve any ambiguity with respect to the crediting of an Hour of Service in favor of the Employee. 

        (A)    Method of Crediting Hours of Service.    The Employer must elect in its Adoption Agreement the method the Plan
Administrator will use in crediting an Employee with Hours of Service and the purpose for which the elected method will apply. 

        (B)    Actual Method.    Under the Actual Method as determined from records, an Employee receives credit for Hours of
Service for hours worked and hours for which the Employer makes payment or for which payment is due from the Employer. 

5

 

        (C)    Equivalency Method.    Under an Equivalency Method, for each equivalency period for which the Plan
Administrator would credit the Employee with at least one Hour of Service, the Plan Administrator will credit the Employee with: (i) 10 Hours of Service for a daily equivalency; (ii) 45
Hours of Service for a weekly equivalency; (iii) 95 Hours of Service for a semimonthly payroll period equivalency; and (iv) 190 Hours of Service for a monthly equivalency. 

        (D)    Elapsed Time Method.    Under the Elapsed Time Method, an Employee receives credit for Service for the
aggregate of all time periods (regardless of the Employee's actual Hours of Service) commencing with the Employee's Employment Commencement Date, or with his/her Reemployment Commencement Date, and
ending on the date a Break in Service begins. An Employee's Employment Commencement Date or his/her Re-employment Commencement Date begins on the first day he/she performs an Hour of
Service following employment or re-employment. In applying the Elapsed Time Method, the Plan Administrator will credit an Employee's Service for any Period of Severance of less than
12-consecutive months and will express fractional periods of Service in days. 

        Under
the Elapsed Time Method, a Break in Service is a Period of Severance of at least 12 consecutive months. A Period of Severance is a continuous period of time during which the
Employee is not employed by the Employer. The continuous period begins on the date the Employee retires, quits, is discharged, or dies or if earlier, the first 12-month anniversary of the
date on which the Employee otherwise is absent from Service for any other reason (including disability, vacation, leave of absence, layoff, etc.). In the case of an Employee who is absent from work
for maternity or paternity reasons, the 12-consecutive month period beginning on the first anniversary of the first date the Employee is otherwise absent from Service does not constitute a
Break in Service. 

        (E)    Maternity/Paternity Leave/Family and Medical Leave Act.    Solely for purposes of determining whether an
Employee incurs a Break in Service under any provision of this Plan, the Plan Administrator must credit Hours of Service during the Employee's unpaid absence period: (i) due to maternity or
paternity leave; or (ii) as required under the Family and Medical Leave Act. An Employee is on maternity or paternity leave if the Employee's absence is due to the Employee's pregnancy, the
birth of the Employee's child, the placement with the Employee of an adopted child, or the care of the Employee's child immediately following the child's birth or placement. The Plan Administrator
credits Hours of Service under this Section 1.15(E) on the basis of the number of Hours of Service for which the Employee normally would receive credit or, if the Plan Administrator cannot
determine the number of Hours of Service the Employee would receive credit for, on the basis of 8 hours per day during the absence period. The Plan Administrator will credit only the number
(not exceeding 501) of Hours of Service necessary to prevent an Employee's Break in Service. The Plan Administrator credits all Hours of Service described in this Section 1.15(E) to the
computation period in which the absence period begins or, if the Employee does not need these Hours of Service to prevent a Break in Service in the
computation period in which his/her absence period begins, the Plan Administrator credits these Hours of Service to the immediately following computation period. 

        (F)    Qualified Military Service.    Hour of Service also includes any Service the Plan must credit for contributions
and benefits in order to satisfy the crediting of Service requirements of Code §414(u). The provisions of this Section 1.15(F) apply beginning December 12, 1994, or if the
Employer's Plan is effective after that date, as of the Plan's Effective Date. 

        1.16 "Leased Employee" means an individual (who otherwise is not an Employee of the Employer) who, pursuant to an agreement
between the Employer and any other person, has performed services for the Employer (or for the Employer and any persons related to the Employer within the meaning of Code §144(a)(3)) on a
substantially full time basis for at least one year and who performs such services under primary direction or control of the Employer within the meaning of Code §414(n)(2). Except as
described in Section 1.16(A), a Leased Employee is an Employee for purposes of the Plan. If a Leased 

6

 

Employee is an Employee, "Compensation" includes Compensation from the leasing organization which is attributable to services performed for the Employer. 

        (A)    Safe Harbor Plan Exception.    A Leased Employee is not an Employee if the leasing organization covers the
employee in a safe harbor plan and, prior to application of this safe harbor plan exception, 20% or less of the Employer's Employees (other than Highly Compensated Employees) are Leased Employees. A
safe harbor plan is a money purchase pension plan providing immediate participation, full and immediate vesting, and a nonintegrated contribution formula equal to at least 10% of the employee's
compensation, without regard to employment by the leasing organization on a specified date. The safe harbor plan must determine the 10% contribution on the basis of compensation as defined in Code
§415(c)(3) including Elective Contributions. 

        (B)    Other Requirements.    The Plan Administrator must apply this Section 1.16 in a manner consistent with
Code §§414(n) and 414(o) and the regulations issued under those Code sections. If a Participant is a Leased Employee covered by a plan maintained by the leasing organization,
the Plan Administrator will determine the allocation of Employer contributions and Participant forfeitures on behalf of the Participant under the Employer's Plan without taking into account the Leased
Employee's allocation, if any, under the leasing organization's plan. 

        1.17 "Nonhighly Compensated Employee" means any Employee who is not a Highly Compensated Employee. 

        1.18 "Nontransferable Annuity" means an annuity contract which by its terms provides that it may not be sold, assigned,
discounted, pledged as collateral for a loan or security for the performance of an
obligation or for any purpose to any person other than the insurance company. If the Plan distributes an annuity contract, the contract must be a Nontransferable Annuity. 

        1.19 "Paired Plans" means the Employer has adopted two Standardized Plan Adoption Agreements offered with this Prototype
Plan, one Adoption Agreement being a Paired Profit Sharing Plan and one Adoption Agreement being a Paired Pension Plan. A Paired Profit Sharing Plan may include a 401(k) arrangement. A Paired Pension
Plan must be a money purchase pension plan, defined benefit plan or a target benefit pension plan. Paired Plans must be the subject of a favorable opinion letter issued by the National Office of the
Internal Revenue Service. If an Employer adopts paired plans, only one of the plans may provide for permitted disparity. 

        1.20 "Participant" means an eligible Employee who becomes a Participant in accordance with the provisions of
Section 2.01. An eligible Employee means an Employee who is not an excluded Employee under Adoption Agreement Section 1.11. 

        1.21 "Plan" means the retirement plan established or continued by the Employer in the form of this Prototype Plan, including
the Adoption Agreement under which the Employer has elected to establish this Plan. The Employer must designate the name of the Plan in its Adoption Agreement. An Employer may execute more than one
Adoption Agreement offered under this Plan, each of which will constitute a separate Plan and Trust established or continued by that Employer. The Plan and the Trust created by each adopting Employer
is a separate Plan and a separate Trust, independent from the plan and the trust of any other employer adopting this Prototype Plan. All section references within this basic plan document are Plan
section references unless the context clearly indicates otherwise. The Plan includes any Addendum or Appendix permitted by the basic plan document or by the Employer's Adoption Agreement and which the
Employer attaches to its Adoption Agreement. An Addendum must correspond by section reference to the section of the basic plan document or Adoption Agreement permitting the Addendum. 

        1.22 "Plan Administrator" means the Employer unless the Employer designates another person or persons to hold the position of
Plan Administrator. Any person(s) the Employer appoints as Plan Administrator may or may not be Participants in the Plan. In addition to its other duties, the Plan 

7

 

Administrator has full responsibility for the Plan's compliance with the reporting and disclosure rules under ERISA. 

        1.23 "Plan Entry Date" means the date(s) the Employer elects in Adoption Agreement Section 2.01. 

        1.24 "Plan Year" means the consecutive month period the Employer specifies in its Adoption Agreement. The Employer also must
specify in its Adoption Agreement the "Limitation Year"
applicable to the limitations on allocations described in Article III. If the Employer maintains Paired Plans, each Plan must have the same Plan Year. 

        1.25 "Protected Benefit" means any accrued benefit described in Treas. Reg. §1.411(d)-4, including
any optional form of benefit provided under the Plan which may not (except in accordance with such Regulations) be reduced, eliminated or made subject to Employer discretion. 

        1.26 "Related Group"/"Related Employer" A Related Group is a controlled group of corporations (as defined in Code
§414(b)), trades or businesses (whether or not incorporated) which are under common control (as defined in Code §414(c)), an affiliated service group (as defined in Code
§414(m)) or an arrangement otherwise described in Code §414(o). Each Employer/member of the Related Group is a Related Employer. The term "Employer" includes every Related
Employer for purposes of crediting Service and Hours of Service, determining Years of Service and Breaks in Service under Articles II and V, determining Separation from Service, applying the Coverage
Test under Section 3.06(E), applying the limitations on allocations in Part 2 of Article III, applying the top-heavy rules and the minimum allocation requirements of
Article XII, applying the definitions of Employee, Highly Compensated Employee, Compensation and Leased Employee, applying the safe harbor 401(k) provisions of Section 14.02(D), applying
the SIMPLE 401(k) provisions of Section 14.02(E) and for any other purpose the Code or the Plan require. 

        (A)    Participating Employer.    An Employer may contribute to the Plan only by being a signatory to the Execution
Page of the Adoption Agreement or to a Participation Agreement to the Adoption Agreement. If a Related Employer executes a Participation Agreement to the Adoption Agreement, the Related Employer is a
Participating Employer. A Participating Employer is an Employer for all purposes of the Plan except as provided in Section 1.12. 

        (B)    Standardized/Nonstandardized Plan.    If the Employer's Plan is a Standardized Plan, all Employees of the
Employer or of any Related Employer, are eligible to participate in the Plan, irrespective of whether the Related Employer directly employing the Employee is a Participating Employer. Notwithstanding
the immediately preceding sentence, individuals who become Employees of a Related Employer as a result of a transaction described in Code §410(b)(6)(C) are not eligible to participate in
the Plan during the Plan Year in which such transaction occurs nor in the following Plan Year, unless the Related Employer which employs such Employees becomes during such period a Participating
Employer, by executing a Participation Agreement to the Adoption Agreement. If the Plan is a Nonstandardized Plan, the Employees of a Related Employer are not eligible to participate in the Plan
unless the Related Employer is a Participating Employer. 

        1.27 "Self-Employed Individual"/ "Owner- Employee"/"Shareholder-Employee" "Self-Employed Individual"
means an individual who has Earned Income (or who would have had Earned Income but for the fact that the trade or business did not have net profits) for the taxable year from the trade or business for
which the Plan is established. "Owner-Employee" means a Self-Employed Individual who is the sole proprietor in the case of a sole proprietorship. If the Employer is a partnership, or a
limited liability company taxed for federal income tax purposes as a partnership, "Owner-Employee" means a Self-Employed Individual who is a partner or member and owns more than 10% of
either the capital or
the profits interest of the partnership or of the limited liability company. "Shareholder-Employee" means an employee or officer of an "S" corporation who owns (or is considered as owning under Code
§ 

8

 

318(a)(1)) more than 5% of the outstanding stock of the corporation on any day of the corporation's taxable year. 

        1.28 "Separation from Service" means an event after which the Employee no longer has an employment relationship with the
Employer maintaining this Plan or with a Related Employer. 

        1.29 "Service" means any period of time the Employee is in the employ of the Employer, including any period the Employee is
on an unpaid leave of absence authorized by the Employer under a uniform, nondiscriminatory policy applicable to all Employees. 

        1.30 "Service with a Predecessor Employer" If the Employer maintains the plan of a predecessor employer, service of the
Employee with the predecessor employer is Service with the Employer. If the Employer does not maintain the plan of a predecessor employer, the Plan does not credit service with the predecessor
employer, unless the Employer in its Adoption Agreement (or in a Participation Agreement, if applicable) elects to credit designated predecessor employer service and specifies the purposes for which
the Plan will credit service with that predecessor employer. 

        Unless
the Employer under its Adoption Agreement Section 2.01 provides for this purpose specific Plan Entry Dates, an Employee who satisfies the Plan's eligibility condition(s) by
reason of the crediting of predecessor service will enter the Plan in accordance with the provisions of Section 2.04 as if the Employee were a re-employed Employee on the first day
the Plan credits predecessor service. 

        1.31 "Trust" means the separate Trust created under the Plan. 

        1.32 "Trust Fund" means all property of every kind acquired by the Plan and held by the Trust, other than incidental benefit
insurance contracts. 

        1.33 "Trustee" means the person or persons who as Trustee execute the Adoption Agreement, or any successor in office who in
writing accepts the position of Trustee. The Employer must designate in its Adoption Agreement whether the Trustee will administer the Trust as a discretionary Trustee or as a nondiscretionary
Trustee. If a person acts as a discretionary Trustee, the Employer also may appoint a Custodian. See Article X. If the Prototype Plan Sponsor is a bank, savings and loan association, credit
union, mutual fund, insurance company, or other institution qualified to serve as Trustee, a person other than the Prototype Plan Sponsor (or its affiliate) may not serve as Trustee or as Custodian of
the Plan without the written consent of the Prototype Plan Sponsor. 

        1.34 "Vested" means a Participant or a Beneficiary has an unconditional claim, legally enforceable against the Plan, to the
Participant's Account Balance or Accrued Benefit. 

 
 

ARTICLE II
  ELIGIBILITY AND PARTICIPATION    
  

        2.01    ELIGIBILITY.    Each eligible Employee becomes a Participant in the Plan in accordance with the eligibility
provisions the Employer elects in its Adoption Agreement. If this Plan is a restated Plan, each Employee who was a Participant in the Plan on the day before the restated Effective Date continues as a
Participant in the restated Plan, irrespective of whether he/she satisfies the eligibility conditions of the restated Plan, unless the Employer provides otherwise in its Adoption Agreement. If the
Employer contributes to the Plan under a Davis-Bacon contract, except as the contract provides, the Employer's Adoption Agreement elections imposing age and service eligibility conditions do not apply
with respect to an Employee performing Davis-Bacon contract Service. 

        2.02    AGE AND SERVICE CONDITIONS.    For purposes of an Employee's participation in the Plan, the Plan:
(1) may not impose an age condition exceeding age 21; and (2) takes into account all of the Employee's Years of Service with the Employer, except as provided in Section 2.03.
"Year of Service" for purposes of an Employee's participation in the Plan, means a 12-consecutive month 

9

 

eligibility computation period during which the Employee completes the number of Hours of Service (not exceeding 1,000) the Employer specifies in its Adoption Agreement. 

        The
initial eligibility computation period is the first 12-consecutive month period measured from the Employee's Employment Commencement Date. The Plan measures succeeding
12-consecutive month eligibility computation periods in accordance with the Employer's election in its Adoption Agreement. If the Employer elects to measure subsequent periods on a Plan
Year basis, an Employee who receives credit for the required number of Hours of Service during the initial eligibility computation period and also during the first applicable Plan Year receives credit
for two Years of Service under Article II. "Employment Commencement Date" means the date on which the Employee first performs an Hour of Service for the Employer. 

        If
the Employer under Adoption Agreement Section 2.01 elects an alternative Service condition to one Year of Service or two Years of Service, the Employer must elect in the
Adoption Agreement the Hour of Service and any other requirement(s), if any, after the Employee completes one Hour of Service. Under any alternative Service condition election, the Plan may not
require an Employee to complete
more than one Year of Service (1,000 Hours of Service in 12-consecutive months) or two Years of Service if applicable. 

        If
the Employer in its Adoption Agreement elects to apply the Equivalency Method or the Elapsed Time Method in applying the Plan's eligibility Service condition, the Plan Administrator
will credit Service in accordance with Sections 1.15(D) and (D). 

        2.03    BREAK IN SERVICE—PARTICIPATION.    An Employee incurs a "Break in Service" if during any
applicable 12-consecutive month period he/she does not complete more than 500 Hours of Service with the Employer. The "12-consecutive month period" under this
Section 2.03 is the same 12-consecutive month period for which the Plan measures a "Year of Service" under Section 2.02. If the Plan applies the Elapsed Time Method of
crediting Service under Section 1.15(D), a Participant incurs a "Break in Service" if the Participant has a Period of Severance of at least 12 consecutive months. 

        (A)    Two Year Eligibility.    If the Employer under Adoption Agreement Section 2.01 elects a two Years of
Service condition for eligibility purposes, an Employee who incurs a one year Break in Service prior to completing two Years of Service is a new Employee on the date he/she first performs an Hour of
Service for the Employer after the Break in Service, and the Employee establishes a new Employment Commencement Date for purposes of the initial eligibility computation period under
Section 2.02. 

        (B)    One Year Hold-Out Rule.    The Employer must elect in its Adoption Agreement whether to apply the
one year hold-out rule under Code §410(a)(5)(C). Under this rule, a Participant will incur a suspension of participation in the Plan after incurring a one year Break in Service
and the Plan disregards a Participant's Service completed prior to a Break in Service until the Participant completes one Year of Service following the Break in Service. The Plan suspends the
Participant's participation in the Plan as of the first day of the Plan Year following the Plan Year in which the Participant incurs the Break in Service. If the Participant completes one Year of
Service following his/her Break in Service, the Plan restores that Participant's pre-Break Service (and the Participant resumes active participation in the Plan) retroactively to the first
day of the computation period in which the Participant first completes one Year of Service following his/her Break in Service. The initial computation period under this Section 2.03(B) is the
12-consecutive month period measured from the date the Participant first receives credit for an Hour of Service following the one year Break in Service. The Plan measures any subsequent
computation periods, if necessary, in a manner consistent with the Employer's eligibility computation period election in Adoption Agreement Section 2.02. If the Employer elects to apply the one
year hold-out rule, the Employer also must elect in its Adoption Agreement whether to limit application of the rule only to a Participant who has incurred a Separation from Service. 

10

 

        The
Plan Administrator also will apply the one-year hold out rule, if applicable, to an Employee who satisfies the Plan's eligibility conditions but who incurs a Separation
from Service and a one year Break in Service prior to becoming a Participant. 

        This
Section 2.03(B) does not affect a Participant's vesting credit under Article V and, during a suspension period, the Participant's Account continues to share fully in
Trust Fund allocations under Article IX. Furthermore, the Plan Administrator in applying this Section 2.03(B) does not restore any Service disregarded under the Break in Service rule of
Section 2.03(A). 

        (C)    No Application to 401(k) Arrangement.    If the Plan includes a 401(k) arrangement and the Employer in its
Adoption Agreement elects to apply the Section 2.03(B) one year hold-out rule, the Plan Administrator will apply the provisions of Section 2.04 to the deferral contributions
portion of the Plan without regard to Section 2.03(B). 

        (D)    No Rule of Parity—Participation.    For purposes of Plan participation, the Plan does not apply the
"rule of parity" under Code §410(a)(5)(D). 

        2.04    PARTICIPATION UPON RE-EMPLOYMENT.    A Participant who incurs a Separation from Service will
re-enter the Plan as a Participant on the date of his/her re-employment with the Employer, subject to the one year hold-out rule, if applicable, under
Section 2.03(B). An Employee who satisfies the Plan's eligibility conditions but who incurs a Separation from Service prior to becoming a Participant will become a Participant on the later of
the Plan Entry Date on which he/she would have entered the Plan had he/she not incurred a Separation from Service or the date of his/her re-employment, subject to the one year
hold-out rule, if applicable, under Section 2.03(B). Any Employee who incurs a Separation from Service prior to satisfying the Plan's eligibility conditions becomes a Participant in
accordance with Adoption Agreement Section 2.01. 

        2.05    CHANGE IN EMPLOYMENT STATUS.    The Employer in its Adoption Agreement Section 1.11 may elect to
exclude certain Employees from Plan participation ("excluded Employees"). If a Participant has not incurred a Separation from Service but becomes an excluded Employee, during the period of exclusion
the excluded Employee will not share in the allocation of any Employer contributions or Participant forfeitures, and may not make deferral contributions if the Plan includes a 401(k) arrangement, with
respect to Compensation paid to the excluded Employee during the period of exclusion. However, during such period of exclusion, the Participant, without regard to employment classification, continues
to receive credit for vesting under Article V for each included Year of Service and the Participant's Account continues to share fully in Trust Fund allocations under Article IX. If a
Participant who becomes an excluded Employee subsequently resumes status as an eligible Employee, the Participant will participate in the Plan immediately upon resuming eligible status, subject to the
one year hold-out rule, if applicable, under Section 2.03(B). 

        If
an excluded Employee who is not a Participant becomes an eligible Employee, he/she will participate immediately in the Plan if he/she has satisfied the eligibility conditions of
Adoption Agreement Section 2.01 and would have been a Participant had he/she not been an excluded Employee during his/her period of Service. Furthermore, the excluded Employee receives credit
for vesting under Article V for each included vesting Year of Service notwithstanding the Employee's excluded Employee status. 

        2.06    ELECTION NOT TO PARTICIPATE.    If the Plan is a Standardized Plan, the Plan does not permit an otherwise
eligible Employee nor any Participant to elect not to participate in the Plan ("opt-out"). If the Plan is a Nonstandardized Plan, the Employer in its Adoption Agreement must elect whether
any eligible Employee may elect irrevocably to opt-out. The Employee prior to his/her Plan Entry Date must file an opt-out election in writing with the Plan Administrator on a
form provided by the Plan Administrator for this purpose. 

11

  

 
 

ARTICLE III
  EMPLOYER CONTRIBUTIONS AND FORFEITURES    
  

Part 1. Amount of Employer Contributions and Plan Allocations: Sections 3.01 through 3.06  

        3.01    EMPLOYER CONTRIBUTIONS.    

        (A) Amount and Types of Contribution.    The Employer in its Adoption Agreement will elect the amount and type(s) of Employer
Plan contribution(s). The Employer will not make a contribution to the Trust for any Plan Year to the extent the contribution would exceed the Participants' Maximum Permissible Amounts. Unless
otherwise provided in an Addendum to its Adoption Agreement, the Employer need not have net profits to make a contribution under the Plan. If the Employer's Plan is a money purchase pension plan and
the Employer also maintains a defined benefit pension plan, notwithstanding the money purchase pension plan formula in the Employer's Adoption Agreement, the Employer's required contribution to its
money purchase pension plan for a Plan Year is limited to the amount which the Employer may deduct under Code §404(a)(7). If the Employer under Code §404(a)(7) must reduce its
money purchase pension plan contribution, the Plan Administrator will reduce each Participant's allocation in the same ratio as the reduced total Employer contribution bears to the original
(unreduced) Employer contribution. 

        (B) Form of Contribution/Related Employer.    Subject to the consent of the Trustee, the Employer may make its contribution in
property instead of cash, provided the contribution of property is not a prohibited transaction under the Code or under ERISA. Unless the Employer in its Adoption Agreement makes a contrary election,
the Plan Administrator will allocate all Employer contributions and forfeitures without regard to which contributing Related Employer directly employs the affected Participants. 

        (C) Time of Payment of Contribution.    The Employer may pay its contribution for any Plan Year in one or more installments
without interest. Unless otherwise required by contract, by the Code or by ERISA, the Employer may make its contribution to the Plan for a particular Plan Year at such time(s) as the Employer in its
sole discretion determines. If the Employer makes a contribution for a particular Plan Year after the close of that Plan Year, the Employer will designate in writing to the Trustee the Plan Year for
which the Employer is making its contribution. 

        (D) Return of Employer Contribution.    The Employer contributes to the Plan on the condition its contribution is not due to a
mistake of fact and the Internal Revenue Service will not disallow the deduction of the Employer's contribution. The Trustee, upon written request from the Employer, must return to the Employer the
amount of the Employer's contribution made by the Employer by mistake of fact or the amount of the Employer's contribution disallowed as a deduction under Code §404. The Trustee will not
return any portion of the Employer's contribution under the provisions of this Section 3.01(D) more than one year after: 

        (1)  The
Employer made the contribution by mistake of fact; or 

        (2)  The
disallowance of the contribution as a deduction, and then, only to the extent of the disallowance. 

        The
Trustee will not increase the amount of the Employer contribution returnable under this Section 3.01(D) for any earnings attributable to the contribution, but the Trustee will
decrease the Employer contribution returnable for any losses attributable to the contribution. The Trustee may require the Employer to furnish the Trustee whatever evidence the Trustee deems necessary
to enable the Trustee to confirm the amount the Employer has requested be returned, is properly returnable under ERISA. 

12

 

        3.02    DEFERRAL CONTRIBUTIONS.    If the Plan includes a 401(k) arrangement, the Employer in its Adoption Agreement
must elect the Plan limitations and restrictions, if any, which apply to deferral contributions or to cash or deferred contributions, if applicable. Under Adoption Agreement Section 3.02, for
purposes of applying any Plan limit the Employer has elected on deferral contributions, the Employer must elect to take into account the Employee's entire Plan Year Compensation or to limit
Compensation to the portion of the Plan Year in which the Employee actually is a Participant. 

        3.03    MATCHING CONTRIBUTIONS.    If the Plan includes a 401(k) arrangement, the Employer in its Adoption Agreement
must elect the type(s) of matching contributions, the time period applicable to any matching contribution formula, and as applicable, the amount of matching contributions and the Plan limitations and
restrictions, if any, which apply to matching contributions. 

        3.04    EMPLOYER CONTRIBUTION ALLOCATION.    

        (A) Method of Allocation.    The Employer in its Adoption Agreement must specify, subject to this Section 3.04, the
manner of allocating Employer contributions to the Trust. For purposes of this Section 3.04, Employer contributions include as applicable, the Employer's nonelective contributions, money
purchase pension and target benefit contributions, but do not include deferral contributions or, except under Section 3.04(B), matching contributions. 

        (B) Compensation Taken into Account.    The Employer in its Adoption Agreement Section 1.07 must specify the
Compensation the Plan Administrator is to take into account in allocating an Employer contribution to a Participant's Account. For the Plan Year in which the Employee first becomes a Participant in
the Plan (or in any portion of the Plan), the Employer may elect to take into account the Employee's entire Plan Year Compensation or to limit Compensation to the portion of the Plan Year in which the
Employee actually is a Participant. For all other Plan Years, the Plan Administrator will take into account only the Compensation determined for the portion of the Plan Year in which the Employee
actually is a Participant. The Plan Administrator must take into account the Employee's entire Compensation for the Plan Year to determine whether the Plan satisfies the top-heavy minimum
allocation requirements of Article XII. The Employer, in its Adoption Agreement, may elect to measure Compensation for allocating its Employer contribution for a Plan Year on the basis of a
specified period other than the Plan Year. 

        (C) Top-Heavy Minimum Allocation.    Unless the Employer in an Addendum to its Adoption Agreement elects to satisfy
any top-heavy minimum allocation requirement in another plan (not maintained under this basic plan document), the Employer in this Plan must satisfy the top-heavy requirements
of Article XII. 

        (D) Allocation Conditions.    Subject to any restoration allocation required under the Plan, the Plan Administrator will
allocate and credit Employer contributions to the Account of each Participant who satisfies the allocation conditions of Section 3.06. 

        (E) Alternative Allocation Formulas.    The Plan Administrator will allocate Employer contributions for the Plan Year or other
applicable period in accordance with the allocation formula the Employer elects in its Adoption Agreement. The Plan Administrator, in allocating under any allocation formula which is based in whole or
in part on Compensation, only will take into account Compensation of those Participants entitled to an allocation. 

        The
Employer in its Adoption Agreement must elect, one or more as applicable of the following allocation formulas: 

        (1)  Nonintegrated (pro rata) allocation formula. The Plan Administrator will allocate the Employer contributions for a Plan
Year in the same ratio that each Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for the Plan Year. 

13

 

        (2)  Two-tiered permitted disparity allocation formula. Under the first tier, the Plan Administrator will allocate
the Employer contributions for a Plan Year in the same ratio that each Participant's Compensation plus Excess Compensation (as defined in Adoption Agreement Section 3.04) for the Plan Year
bears to the total Compensation plus Excess Compensation of all Participants for the Plan Year. The allocation under this first tier, as a percentage of each Participant's Compensation plus Excess
Compensation, must not exceed the applicable percentage (5.7%, 5.4% or 4.3%) listed under Section 3.04(D)(4). 

        Under
the second tier, the Plan Administrator will allocate any remaining Employer contributions for a Plan Year in the same ratio that each Participant's Compensation for the Plan Year
bears to the total Compensation of all Participants for the Plan Year. 

        (3)  Four-tiered permitted disparity allocation formula. Under the first tier, the Plan Administrator will
allocate the Employer contributions for a Plan Year in the same ratio that each Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for the Plan Year, but
not exceeding 3% of each Participant's Compensation. Solely for purposes of this first tier allocation, a "Participant" means, in addition to any Participant who satisfies the allocation conditions of
Section 3.06 for the Plan Year, any other Participant entitled to a top-heavy minimum allocation under the Plan. 

        Under
the second tier, the Plan Administrator will allocate the Employer contributions for a Plan Year in the same ratio that each Participant's Excess Compensation (as defined in
Adoption Agreement Section 3.04) for the Plan Year bears to the total Excess Compensation of all Participants for the Plan Year, but not exceeding 3% of each Participant's Excess Compensation. 

        Under
the third tier, the Plan Administrator will allocate the Employer contributions for a Plan Year in the same ratio that each Participant's Compensation plus Excess Compensation for
the Plan Year bears to the total Compensation plus Excess Compensation of all Participants for the Plan Year. The allocation under this third tier, as a percentage of each Participant's Compensation
plus Excess Compensation, must not exceed the applicable percentage (2.7%, 2.4% or 1.3%) listed under Section 3.04(D)(4). 

        Under
the fourth tier, the Plan Administrator will allocate any remaining Employer contributions for a Plan Year, in the same ratio that each Participant's Compensation for the Plan Year
bears to the total Compensation of all Participants for the Plan Year. 

        (4)  Maximum disparity table. For purposes of the permitted disparity allocation formulas under this Section 3.04, the
applicable percentage is: 

	Integration level % of taxable wage base
	 	Applicable % for 2-tiered formula
	 	Applicable % for 4-tiered formula
	 
	100%	 	5.7	%	2.7	%
	More than 80% but less than 100%	 	5.4	%	2.4	%
	More than 20% (but not less than $10,001) and not more than 80%	 	4.3	%	1.3	%
	20% (or $10,000, if greater) or less	 	5.7	%	2.7	%

        (5)  Overall permitted disparity limits.

          (i)   Annual overall permitted disparity limit. Notwithstanding Sections 3.04(D)(2) and (3), for any Plan Year the Plan
benefits any Participant who benefits under another qualified plan or under a simplified employee pension plan (as defined in Code §408(k)) maintained by the Employer that provides for
permitted disparity (or imputes disparity), the Plan Administrator will allocate Employer contributions to the Account of each Participant in the same ratio that each Participant's Compensation bears
to the total Compensation of all Participants for the Plan Year. 

14

 

        (ii)  Cumulative permitted disparity limit. Effective for Plan Years beginning after December 31, 1994, the cumulative
permitted disparity limit for a Participant is 35 total cumulative permitted disparity years. "Total cumulative permitted disparity years" means the number of years credited to the
Participant for allocation or accrual purposes under the Plan, any other qualified plan or simplified employee pension plan (whether or not terminated) ever maintained by the Employer. For purposes of
determining the Participant's cumulative permitted disparity limit, the Plan Administrator will treat all years ending in the same calendar year as the same year. If the Participant has not benefited
under a defined benefit plan or under a target benefit plan of the Employer for any year beginning after December 31, 1993, the Participant does not have a cumulative permitted disparity limit. 

        For
purposes of this Section 3.04(D)(5), a Participant "benefits" under the Plan for any Plan Year during which the Participant receives, or is deemed to receive, a contribution
allocation in accordance with Treas. Reg. §1.410(b)-3(a). 

        (6)  Uniform points allocation formula. The Plan Administrator will allocate the Employer contributions for a Plan Year in the
same ratio that each Participant's points (as elected in Adoption Agreement Section 3.04) bear to the total points of all Participants for the Plan Year. 

        (7)  Incorporation of contribution formula. The Plan Administrator will allocate the Employer's contributions for a Plan Year
in accordance with the contribution formula the Employer has elected under Section 3.01. 

        (8)  Target benefit allocation formula. The Plan Administrator will allocate the Employer contributions for a Plan Year as
provided in the Employer's target benefit Adoption Agreement. 

        (9)  Davis-Bacon contract allocation formula. The Plan Administrator will allocate the Employer contributions for a Plan Year
in accordance with the applicable Davis-Bacon contract pursuant to which the Employer has made its contributions for the Plan Year. The Employer's contributions will take into account each
Participant's hourly rate, employment category, employment classification and such other factors the Davis-Bacon contract may specify. For purposes of the Plan, "Davis-Bacon contract" includes a
contract under any state prevailing wage law. 

        (F) Qualified Nonelective Contributions.    The Employer operationally may designate all or any portion of its nonelective
contributions as a qualified nonelective contribution. The Employer, to facilitate the Plan Administrator's correction of test failures under Sections 14.08, 14.09 and 14.10, also may make qualified
nonelective contributions to the Plan irrespective of whether the Employer in its Adoption Agreement has elected to provide nonelective contributions. The Employer in its Adoption Agreement must elect
whether the Plan Administrator will allocate the Employer contributions designated as a qualified nonelective contribution to all Participants or solely to Nonhighly Compensated Employee Participants.
The Employer operationally must elect whether the Plan Administrator will allocate qualified nonelective contributions: (1) to eligible Participants pro rata in relation to Compensation;
(2) to eligible Participants in the same amount without regard to Compensation (flat dollar); or (3) under the reverse allocation or other similar method. Under the reverse allocation
method, the Plan Administrator, subject to Section 3.06, will allocate a qualified nonelective contribution first to the Nonhighly Compensated Employee Participant(s) with the lowest
Compensation for the Plan Year not
exceeding the Maximum Permissible Amount for each Participant, with any remaining amounts allocated to the next highest paid Nonhighly Compensated Employee Participant(s) not exceeding his/her Maximum
Permissible Amount and continuing in this manner until the Plan Administrator has fully allocated the qualified nonelective contribution. 

        (G) Qualified Replacement Plan.    The Employer may establish or maintain this Plan as a qualified replacement plan as
described in Code §4980 under which the Plan may receive a transfer 

15

 

from a terminating qualified plan the Employer also maintains. The Plan Administrator will credit the transferred amounts to a suspense account under the Plan and thereafter the Plan Administrator
will allocate the transferred amounts under this Section 3.04(G) in the same manner as the Plan Administrator allocates Employer nonelective contributions, unless the Employer specifies in an
Addendum to its Adoption Agreement: (1) to apply such transferred amounts to the Plan's administrative expenses; or (2) if the Plan includes a 401(k) arrangement, the Employer in its
Addendum designates such transferred amounts as matching contributions. 

        3.05    FORFEITURE ALLOCATION.    The amount of a Participant's Account forfeited under the Plan is a Participant
forfeiture. The Plan Administrator, subject to Section 3.06, will allocate Participant forfeitures at the time and in the manner the Employer specifies in its Adoption Agreement. The Plan
Administrator will continue to hold the undistributed, non-Vested portion of the Account of a Participant who has separated from Service solely for his/her benefit until a forfeiture
occurs at the time specified in Section 5.09 or if applicable, until the time specified in Section 9.11. Except as provided under Section 5.04, a Participant will not share in the
allocation of a forfeiture of any portion of his/her Account. If the Plan includes a 401(k) arrangement, the Plan Administrator first will determine if a Participant's forfeitures are attributable to
nonelective or to matching contributions, and the Plan Administrator then will allocate the forfeitures in the manner the Employer has elected in its Adoption Agreement. If the Employer elects to
allocate forfeitures to reduce nonelective or matching contributions and the forfeitures exceed the amount of the contribution to which the Plan Administrator will apply the forfeitures, the Plan
Administrator will allocate the remaining forfeitures as an additional discretionary nonelective or discretionary matching contribution or the Plan Administrator will apply the forfeitures to the
Employer's nonelective or matching contribution in the succeeding Plan Year. A Participant's forfeiture is attributable to matching contributions if the forfeiture is: (1) a
non-Vested matching Account forfeited in accordance with Section 5.09 or, if applicable, Section 9.11; (2) a non-Vested excess aggregate contribution
(adjusted for earnings) forfeited in correcting for nondiscrimination failures under Section 14.09 or Section 14.10; or (3) an "associated matching contribution," which includes
any Vested or non-Vested matching contribution (adjusted for earnings) made with respect to elective deferrals or Employee contributions the Plan Administrator distributes in correction of
Code §402(g), Code §415 or nondiscrimination failures under Sections 14.07, 14.08, 14.09 or 14.10. An Employee forfeits an associated matching contribution unless the matching
contribution is a Vested excess aggregate contribution distributed in accordance with Sections 14.09 or 14.10. 

        3.06    ALLOCATION CONDITIONS.    The Plan Administrator will determine the allocation conditions which apply to
Employer contributions (including matching contributions) and Participant forfeitures on the basis of the Plan Year (or on any other basis representing a reasonable division of the Plan Year) in
accordance with the Employer's elections in its Adoption Agreement. A Participant does not accrue
an Employer contribution with respect to a Plan Year or other applicable period until the Participant satisfies the allocation conditions described in this Section 3.06. The Plan under a 401(k)
arrangement may not impose any allocation conditions with respect to deferral contributions, safe harbor contributions or SIMPLE contributions. 

        (A) Hours of Service Requirement.    Except as required to satisfy the top-heavy minimum allocation requirement of
Article XII, the Plan Administrator will not allocate any portion of an Employer contribution for a Plan Year to any Participant's Account if the Participant does not complete the applicable
minimum Hours of Service or consecutive calendar days of employment requirement the Employer specifies in its Adoption Agreement for the relevant period. The Employer in its Standardized Adoption
Agreement must elect whether to require a Participant to complete during a Plan Year 501 Hours of Service or to be employed for at least 91 consecutive calendar days under the Elapsed Time Method, to
share in the allocation of Employer contributions for that Plan Year 

16

 

where the Participant is not employed by the Employer on the Accounting Date of that Plan Year, including the Plan Year in which the Employer terminates the Plan. 

        (B) "Last Day" Employment Requirement.    If the Plan is a Standardized Plan, a Participant who is employed by the Employer on
the Accounting Date of a Plan Year will share in the allocation of Employer contributions for that Plan Year without regard to the Participant's Hours of Service completed during that Plan Year. If
the Plan is a Nonstandardized Plan, the Employer must specify in its Adoption Agreement whether the Participant will benefit under the Plan if the Participant is not employed by the Employer on the
Accounting Date of the Plan Year or other specified date. If the Plan is a Nonstandardized money purchase Plan or target benefit Plan, the Plan conditions Employer contribution allocations on a
Participant's employment with the Employer on the last day of the Plan Year for the Plan Year in which the Employer terminates the Plan. 

        (C) Death, Disability or Normal Retirement Age.    Unless the Employer otherwise elects in its Adoption Agreement, any
allocation condition elected under Adoption Agreement Section 3.06 does not apply for a Plan Year if a Participant incurs a Separation from Service during the Plan Year on account of the
Participant's death, Disability or attainment of Normal Retirement Age in the current Plan Year or on account of the Participant's Disability or attainment of Normal Retirement Age in a prior Plan
Year. 

        (D) Other Conditions.    In allocating Employer contributions under the Plan, the Plan Administrator will not apply any other
conditions except those the Employer elects in its Adoption Agreement or otherwise as the Plan may require. 

        (E) Suspension of Allocation Conditions Under a Nonstandardized Plan.    The suspension provisions of this
Section 3.06(E) do not apply unless the Employer elects in its Nonstandardized Adoption Agreement to apply them. If Section 3.06(E) applies, the Plan suspends for a Plan Year the
Adoption Agreement Section 3.06 allocation conditions if the Plan fails in that Plan Year to satisfy coverage under the Ratio Percentage Test, unless in an Addendum to its Adoption Agreement,
the Employer specifies
the Plan Administrator will apply this Section 3.06(E) using the Average Benefit Percentage Test described in Code §410(b)(2). A Plan satisfies coverage under the Ratio Percentage
Test if, on the last day of the Plan Year, the Plan's benefiting ratio of the Nonhighly Compensated Includible Employees is at least 70% of the benefiting ratio of the Highly Compensated Includible
Employees. 

        The
benefiting ratio of the Nonhighly Compensated Includible Employees is the number of Nonhighly Compensated Includible Employees benefiting under the Plan over the number of the
Includible Employees who are Nonhighly Compensated Employees. "Includible" Employees are all Employees other than: (1) those Employees excluded from participating in the Plan for the entire
Plan Year by reason of the collective bargaining unit or the nonresident alien exclusions under Code §410(b)(3) or by reason of the age and service requirements of Article II; and
(2) those Employees who incur a Separation from Service during the Plan Year and for the Plan Year fail to complete more than 500 Hours of Service or at least 91 consecutive calendar days under
the Elapsed Time Method. 

        For
purposes of coverage, an Employee is benefiting under the Plan on a particular date if, under Section 3.04 of the Plan, he/she is entitled to an Employer contribution or to a
Participant forfeiture allocation for the Plan Year. 

        If
this Section 3.06(E) applies for a Plan Year, the Plan Administrator will suspend the allocation conditions for the Nonhighly Compensated Includible Employees who are
Participants, beginning first with the Includible Employee(s) employed by the Employer on the last day of the Plan Year, then the Includible Employee(s) who have the latest Separation from Service
during the Plan Year, and continuing to suspend the allocation conditions for each Includible Employee who incurred an earlier Separation from Service, from the latest to the earliest Separation from
Service date, until the Plan 

17

 

satisfies coverage for the Plan Year. If two or more Includible Employees have a Separation from Service on the same day, the Plan Administrator will suspend the allocation conditions for all such
Includible Employees, irrespective of whether the Plan can satisfy coverage by accruing benefits for fewer than all such Includible Employees. If the Plan for any Plan Year suspends the allocation
conditions for an Includible Employee, that Employee will share in the allocation for that Plan Year of the Employer contribution and Participant forfeitures, if any, without regard to whether he/she
has satisfied the allocation conditions of this Section 3.06. 

        If
the Plan includes Employer matching contributions subject to ACP testing, this Section 3.06(E) applies separately to the Code §401(m) portion of the Plan. 

Part 2. Limitations On Allocations: Sections 3.07 through 3.18

        [Note:
Sections 3.07 through 3.10 apply only to Participants in this Plan who do not participate, and who have never participated, in another qualified plan, individual
medical account (as defined in Code
§415(l)(2)), simplified employee pension plan (as defined in Code §408(k)) or welfare benefit fund (as defined in Code §419(e)) maintained by the Employer, which
provides an Annual Addition.] 

        3.07    ANNUAL ADDITIONS LIMITATION.    The amount of Annual Additions which the Plan Administrator may allocate under
this Plan to a Participant's Account for a Limitation Year may not exceed the Maximum Permissible Amount. If the Annual Additions the Plan Administrator otherwise would allocate under the Plan to a
Participant's Account would for the Limitation Year exceed the Maximum Permissible Amount, the Plan Administrator will not allocate the Excess Amount, but will instead take any reasonable, uniform and
nondiscriminatory action the Plan Administrator determines necessary to avoid allocation of an Excess Amount. Such actions include, but are not limited to, those described in this Section 3.07.
If the Plan includes a 401(k) arrangement, the Plan Administrator may apply this Section 3.07 in a manner which maximizes the allocation to a Participant of Employer contributions (exclusive of
the Participant's deferral contributions). Notwithstanding any contrary Plan provision, the Plan Administrator, for the Limitation Year, may: (1) suspend or limit a Participant's additional
Employee contributions or deferral contributions; (2) notify the Employer to reduce the Employer's future Plan contribution(s) as necessary to avoid allocation to a Participant of an Excess
Amount; or (3) suspend or limit the allocation to a Participant of any Employer contribution previously made to the Plan (exclusive of deferral contributions) or of any Participant forfeiture.
If an allocation of Employer contributions previously made (excluding a Participant's deferral contributions) or of Participant forfeitures would result in an Excess Amount to a Participant's Account,
the Plan Administrator will allocate the Excess Amount to the remaining Participants who are eligible for an allocation of Employer contributions for the Plan Year in which the Limitation Year ends.
The Plan Administrator will make this allocation in accordance with the Plan's allocation method as if the Participant whose Account otherwise would receive the Excess Amount, is not eligible for an
allocation of Employer contributions. If the Plan Administrator allocates to a Participant an Excess Amount, Plan Administrator must dispose of the Excess Amount in accordance with Section 3.10
(relating to certain "reasonable errors" and allocation of forfeitures) or, if Section 3.10 does not apply, the Plan Administrator will dispose of the Excess Amount under Section 9.12. 

        3.08    ESTIMATING COMPENSATION.    Prior to the determination of the Participant's actual Compensation for a
Limitation Year, the Plan Administrator may determine the Maximum Permissible Amount on the basis of the Participant's estimated annual Compensation for such Limitation Year. The Plan Administrator
must make this determination on a reasonable and uniform basis for all Participants similarly situated. The Plan Administrator must reduce the allocation of any Employer contributions (including any
allocation of forfeitures) based on estimated annual Compensation by any Excess Amounts carried over from prior Limitation Years. 

18

 

        3.09    DETERMINATION BASED ON ACTUAL COMPENSATION.    As soon as is administratively feasible after the end of the
Limitation Year, the Plan Administrator will determine the Maximum Permissible Amount for the Limitation Year on the basis of the Participant's actual Compensation for such Limitation Year. 

        3.10    DISPOSITION OF ALLOCATED EXCESS AMOUNT.    If, because of a reasonable error in estimating a Participant's
actual Limitation Year Compensation, because of the allocation of forfeitures, because of a reasonable error in determining a Participant's deferral contributions or because of any other facts and
circumstances the Internal Revenue Service ("Revenue Service") considers to constitute reasonable error, a Participant receives an allocation of an Excess Amount for a Limitation Year, the Plan
Administrator will dispose of such Excess Amount as follows: 

        (a)  The
Plan Administrator first will return to the Participant any Employee contributions (adjusted for earnings) and then any Participant deferral contributions (adjusted
for earnings) to the extent necessary to reduce or eliminate the Excess Amount. 

        (b)  If,
after the application of Paragraph (a), an Excess Amount still exists and the Plan covers the Participant at the end of the Limitation Year, the Plan
Administrator then will use the Excess Amount(s) to reduce future Employer contributions (including any allocation of forfeitures) under the Plan for the next Limitation Year and for each succeeding
Limitation Year, as is necessary, for the Participant. If the Employer's Plan is a profit sharing plan, a Participant who is a Highly Compensated Employee may elect to limit his/her Compensation for
allocation purposes to the extent necessary to reduce his/her allocation for the Limitation Year to the Maximum Permissible Amount and to eliminate the Excess Amount. 

        (c)  If,
after the application of Paragraph (a), an Excess Amount still exists and the Plan does not cover the Participant at the end of the Limitation Year, the Plan
Administrator then will hold the Excess Amount unallocated in a suspense account. The Plan Administrator will apply the suspense account to reduce Employer Contributions (including the allocation of
forfeitures) for all remaining Participants in the next Limitation Year, and in each succeeding Limitation Year if necessary. Neither the Employer nor any Employee may contribute to the Plan for any
Limitation Year in which the Plan is unable to allocate fully a suspense account maintained pursuant to this Paragraph (c). Amounts held unallocated in a suspense account will not share in any
allocation of Trust Fund net income, gain or loss. 

        (d)  The
Plan Administrator under Paragraphs (b) or (c) will not distribute any Excess Amount(s) to Participants or to former Participants. 

        [Note:
Sections 3.11 through 3.15 apply only to Participants who, in addition to this Plan, participate in one or more M&P defined contribution plans (including Paired
Plans), welfare benefit funds (as defined in Code §419(e)), individual medical accounts (as defined in Code §415(l)(2), or simplified employee pension plans (as defined in Code
§408(k)) maintained by the Employer and which provide an Annual Addition during the Limitation Year (collectively "Code §415 aggregated plans").] 

        3.11    COMBINED PLANS ANNUAL ADDITIONS LIMITATION.    The amount of Annual Additions which the Plan Administrator may
allocate under this Plan to a Participant's Account for a Limitation Year may not exceed the Maximum Permissible Amount, reduced by the sum of any Annual Additions allocated to the Participant's
accounts for the same Limitation Year under the Code §415 aggregated
plans. If the amount the Employer otherwise would allocate to the Participant's Account under this Plan would cause the Annual Additions for the Limitation Year to exceed this Section 3.11
combined plans limitation, the Employer will reduce the amount of its allocation to that Participant's Account in the manner described in Section 3.07, so the Annual Additions under all of the
Code §415 aggregated plans for the Limitation Year will equal the Maximum Permissible Amount. If the Plan Administrator allocates to a Participant an amount attributed to this Plan under
Section 3.14 which 

19

 

exceeds this Section 3.11 combined plans limitation, the Plan Administrator must dispose of the Excess Amount in accordance with Section 3.15 (relating to certain "reasonable errors"
and allocation of forfeitures) or, if Section 3.15 does not apply, the Plan Administrator will dispose of the Excess Amount under Section 9.12. 

        3.12    ESTIMATING COMPENSATION.    Prior to the determination of the Participant's actual Compensation for the
Limitation Year, the Plan Administrator may determine the Section 3.11 combined plans limitation on the basis of the Participant's estimated annual Compensation for such Limitation Year. The
Plan Administrator will make this determination on a reasonable and uniform basis for all Participants similarly situated. The Plan Administrator must reduce the allocation of any Employer
contribution (including the allocation of Participant forfeitures) based on estimated annual Compensation by any Excess Amounts carried over from prior years. 

        3.13    DETERMINATION BASED ON ACTUAL COMPENSATION.    As soon as is administratively feasible after the end of the
Limitation Year, the Plan Administrator will determine the Section 3.11 combined plans limitation on the basis of the Participant's actual Compensation for such Limitation Year. 

        3.14    ORDERING OF ANNUAL ADDITION ALLOCATIONS.    If, because of a reasonable error in estimating a Participant's
actual Limitation Year Compensation, because of the allocation of forfeitures, because of a reasonable error in determining a Participant's deferral contributions or because of any other facts and
circumstances the Revenue Service considers to constitute reasonable error, a Participant's Annual Additions under this Plan and the Code §415 aggregated plans result in an Excess Amount,
such Excess Amount will consist of the Amounts last allocated. The Plan Administrator will determine the Amounts last allocated by treating the Annual Additions attributable to a simplified employee
pension as allocated first, followed by allocation to a welfare benefit fund or individual medical account, irrespective of the actual allocation date. If the Plan Administrator allocates an Excess
Amount to a Participant on an allocation date of this Plan which coincides with an allocation date of another plan, unless the Employer specifies otherwise in an Addendum to its Adoption Agreement,
the Excess Amount attributed to this Plan will equal the product of: 

	(a)
	the
total Excess Amount allocated as of such date, multiplied by

	(b)
	the
ratio of (i) the Annual Additions allocated to the Participant as of such date for the Limitation Year under the Plan to (ii) the total Annual Additions allocated to
the Participant as of such date for the Limitation Year under this Plan and the Code §415 aggregated plans. 

        3.15    DISPOSITION OF ALLOCATED EXCESS AMOUNT ATTRIBUTABLE TO PLAN.    The Plan Administrator will dispose of any
allocated Excess Amounts described in and attributed to this Plan under Section 3.14 as provided in Section 3.10 or, as applicable under Section 9.12. 

        [Note:
Section 3.16 applies only to Participants who, in addition to this Plan, participate in one or more qualified defined contribution plans maintained by the
Employer during the Limitation Year, but which are not M&P plans described in Sections 3.11 through 3.15.] 

        3.16    OTHER DEFINED CONTRIBUTION PLANS LIMITATION.    If a Participant is a participant in another defined
contribution plan maintained by the Employer, but which plan is not an M&P plan described in Sections 3.11 through 3.15, the Plan Administrator must limit the allocation to the Participant of Annual
Additions under this Plan as provided in Sections 3.11 through 3.15, as though the other defined contribution plan were an M&P plan, unless the Employer specifies otherwise in an Addendum to its
Adoption Agreement. 

        3.17    DEFINED BENEFIT PLAN LIMITATION.    If the Employer maintains a defined benefit plan, or has ever maintained a
defined benefit plan which the Employer has terminated, then the sum of the defined benefit plan fraction and the defined contribution plan fraction for any Participant for 

20

 

any Limitation Year beginning before January 1, 2000, must not exceed 1.0. The 1.0 limitation of the immediately preceding sentence does not apply for Limitation Years beginning after
December 31, 1999, unless the Employer in Appendix B to its Adoption Agreement specifies a later effective date. To the extent necessary to satisfy the 1.0 limitation, if the Employer
still maintains the defined benefit plan as an active plan, the Employer in its Adoption Agreement Appendix B will elect whether to reduce the Participant's projected annual benefit under the
defined benefit plan under which the Participant participates, or to reduce its contribution or allocation on behalf of the Participant to the defined contribution plan(s) under which the Participant
participates. If the Employer has frozen or terminated the defined benefit plan, the Employer will reduce its contribution or allocation on behalf of the Participant to the defined contribution
plan(s) under which the Participant participates. The Employer must provide in Appendix B to its Adoption Agreement the manner in which the Plan will satisfy the top-heavy
requirements of Code §416 after taking into account the existence (or prior maintenance) of the defined benefit plan. 

        3.18    DEFINITIONS—ARTICLE III.    For purposes of Article III: 

        (a)  "Annual
Additions" means the sum of the following amounts allocated to a Participant's Account for a Limitation Year: (i) all Employer contributions (including
Participant deferral contributions); (ii) all forfeitures; (iii) all Employee contributions; (iv) Excess Amounts reapplied to reduce Employer contributions under
Section 3.10 or Section 3.15; (v) amounts allocated after March 31, 1984, to an individual medical account (as defined in Code §415(l)(2)) included as part of a
pension or annuity plan
maintained by the Employer; (vi) contributions paid or accrued after December 31, 1985, for taxable years ending after December 31, 1985, attributable to
post-retirement medical benefits allocated to the separate account of a key-employee (as defined in Code §419A(d)(3)) under a welfare benefit fund (as defined in
Code §419(e)) maintained by the Employer; (vii) amounts allocated under a Simplified Employee Pension Plan; and (viii) corrected excess contributions described in Code
§401(k) and corrected excess aggregate contributions described in Code §401(m). Excess deferrals described in Code §402(g), which the Plan Administrator corrects by
distribution by April 15 of the following calendar year, are not Annual Additions. 

        (b)  "Compensation"
for purposes of applying the limitations of Part 2 of this Article III, means Compensation as defined in Section 1.07, except, for
Limitation Years beginning after December 31, 1997, Compensation includes Elective Contributions, irrespective of whether the Employer has elected to include these amounts as Compensation under
Section 1.07 of its Adoption Agreement and any exclusion the Employer has elected in Section 1.07 of the Adoption Agreement does not apply. 

        (c)  "Employer"
means the Employer and any Related Employer. Solely for purposes of applying the limitations of Part 2 of this Article III, the Plan
Administrator will determine Related Employer by modifying Code §§414(b) and (c) in accordance with Code §415(h). 

        (d)  "Excess
Amount" means the excess of the Participant's Annual Additions for the Limitation Year over the Maximum Permissible Amount. 

        (e)  "Limitation
Year" means the period the Employer elects in its Adoption Agreement Section 1.24. All qualified plans of the Employer must use the same Limitation
Year. If the Employer amends the Limitation Year to a different 12-consecutive month period, the new Limitation Year must begin on a date within the Limitation Year for which the Employer
makes the amendment, creating a short Limitation Year. 

        (f)    "M&P
Plan" means a prototype plan the form of which is the subject of a favorable opinion letter (or prior to Revenue Procedure 2000-20, a favorable
notification or favorable opinion letter) from the Revenue Service. 

21

 

        (g)  "Maximum
Permissible Amount" means the lesser of: (i) $30,000 (or, if greater, the $30,000 amount as adjusted under Code §415(d)), or (ii) 25%
of the Participant's Compensation for the Limitation Year. If there is a short Limitation Year because of a change in Limitation Year, the Plan Administrator will multiply the $30,000 (or adjusted)
limitation by the following fraction: 

	Number of months in the short Limitation Year
 12

The
25% limitation does not apply to any contribution for medical benefits within the meaning of Code §401(h) or Code §419A(f)(2) which otherwise is an Annual Addition. 

        (h)  "Defined
contribution plan" means a retirement plan which provides for an individual account for each participant and for benefits based solely on the amount contributed
to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which the plan may allocate to such participant's account. The Plan
Administrator must treat all defined contribution plans (whether or not terminated) maintained by the Employer as a single plan. Solely for purposes of the limitations of Part 2 of this
Article III, employee contributions made to a defined benefit plan maintained by the Employer is a separate defined contribution plan. The Plan Administrator also will treat as a defined
contribution plan an individual medical account (as defined in Code §415(l)(2)) included as part of a defined benefit plan maintained by the Employer and, for taxable years ending after
December 31, 1985, a welfare benefit fund under Code §419(e) maintained by the Employer to the extent there are post-retirement medical benefits allocated to the
separate account of a key employee (as defined in Code §419A(d)(3)). 

        (i)    "Defined
benefit plan" means a retirement plan which does not provide for individual accounts for Employer contributions. All defined benefit plans (whether or not
terminated) maintained by the Employer are a single plan. 

        [Note:
The definitions in Paragraphs (j), (k) and (l) apply only if the limitation described in Section 3.17 applies to the Plan.] 

        (j)    "Defined
benefit plan fraction" means the following fraction: 

	Projected annual benefit of the Participant under

the defined benefit plan(s)
 The lesser of: (i) 125% (subject to the "100% limitation" in

Paragraph (l)) of the

dollar limitation in effect under Code

§415(b)(1)(A) for the Limitation Year, or

(ii) 140% of the Participant's average Compensation for

his/her high three (3) consecutive Years of Service

        To
determine the denominator of this fraction, the Plan Administrator will make any adjustment required under Code §415(b) and will determine a Year of Service, unless the
Employer provides otherwise in an Addendum to its Adoption Agreement, as a Plan Year in which the Employee completed at least 1,000 Hours of Service. The "projected annual benefit" is the annual
retirement benefit (adjusted to an actuarially equivalent straight life annuity if the defined benefit plan expresses such benefit in a form other than a straight life annuity or qualified joint and
survivor annuity) of the Participant under the terms of the defined benefit plan on the assumptions he/she continues employment until his/her normal retirement age (or current age, if later) as stated
in the defined benefit plan, his/her compensation continues at the same rate as in effect in the Limitation Year under consideration until the date of his/her normal retirement age and all other
relevant factors used to 

22

 

determine benefits under the defined benefit plan remain constant as of the current Limitation Year for all future Limitation Years. 

        Current Accrued Benefit.    If the Participant accrued benefits in one or more defined benefit plans maintained by the Employer
which were in existence on May 6, 1986, the dollar limitation used in the denominator of this fraction will not be less than the Participant's Current Accrued Benefit. A Participant's Current
Accrued Benefit is the sum of the annual benefits under such defined benefit plans which the Participant had accrued as of the end of the 1986 Limitation Year (the last Limitation Year beginning
before January 1, 1987), determined without regard to any change in the terms or conditions of the defined benefit plan made after May 5, 1986, and without regard to any cost of living
adjustment occurring after May 5, 1986. This Current Accrued Benefit rule applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code
§415 as in effect at the end of the 1986 Limitation Year. 

        (k)  "Defined
contribution plan fraction" means the following fraction: 

	The sum, as of the close of the Limitation Year, of the

Annual Additions for all Limitation Years

to the Participant's Account under

the defined contribution plan(s)
 The sum of the lesser of the following amounts determined

for the Limitation Year and for each prior Limitation Year

of service with the Employer: (i) 125%

(subject to the "100% limitation" in Paragraph (l))

of the dollar limitation in effect under

Code §415(c)(1)(A) for the Limitation Year

(determined without regard to the special dollar limitations

for employee stock ownership plans), or

(ii) 35% of the Participant's Compensation for the

Limitation Year

For
purposes of determining the defined contribution plan fraction, the Plan Administrator will not recompute Annual Additions in Limitation Years beginning prior to January 1, 1987, to treat
all Employee contributions as Annual Additions. If the Plan satisfied Code §415 for Limitation Years beginning prior to January 1, 1987, the Plan Administrator will redetermine the
defined contribution plan fraction and the defined benefit plan fraction as of the end of the 1986 Limitation Year, in accordance with this Section 3.18. If the sum of the redetermined
fractions exceeds 1.0, the Plan Administrator will subtract permanently from the numerator of the defined contribution plan fraction an amount equal to the product of: (1) the excess of the sum
of the fractions over 1.0, times (2) the denominator of the defined contribution plan fraction. In making the adjustment, the Plan Administrator must disregard any accrued benefit under the
defined benefit plan which is in excess of the Current Accrued Benefit. This Plan continues any transitional rules applicable to the determination of the defined contribution plan fraction under the
Plan as of the end of the 1986 Limitation Year. 

        (l)    "100%
limitation" means the limitation in Code §416(h) which applies if the plan is top-heavy. If the 100% limitation applies, the Plan
Administrator must determine the denominator of the defined benefit plan fraction and the denominator of the defined contribution plan fraction by substituting 100% for 125%. If this Plan is a
Standardized Plan, the 100% limitation applies in all Limitation Years, unless the Employer specifies otherwise in an Addendum to its Adoption Agreement. If the Employer overrides the 100% limitation
under a Standardized Plan, the Employer must specify in its Addendum the manner in which the Plan satisfies the extra minimum benefit requirement of Code §416(h) and the 100% limitation
must continue to apply if the Plan's 

23

 

top-heavy ratio exceeds 90%. If this Plan is a Nonstandardized Plan, the 100% limitation applies only if: (i) the Plan's top-heavy ratio exceeds 90%; or (ii) the
Plan's top-heavy ratio is greater than 60%, and the Employer does not specify in its Adoption Agreement to provide extra minimum benefits which satisfy Code §416(h)(2). 

24

  

 
 

ARTICLE IV
  PARTICIPANT CONTRIBUTIONS    
  

        4.01    PARTICIPANT CONTRIBUTIONS.    For purposes of this Article IV, Participant contributions means all
Employee contributions described in Section 4.02, deductible Participant contributions described in Section 4.03 ("DECs") and rollover contributions described Section 4.04. 

        4.02    EMPLOYEE CONTRIBUTIONS.    An Employee contribution is a nondeductible contribution which a Participant makes
to the Trust as permitted under this Section 4.02. A deferral contribution made by a Participant under a 401(k) arrangement is not an Employee contribution. Employee contributions must satisfy
the nondiscrimination requirements of Code §401(m). See Section 14.09. An Employer must elect in its Adoption Agreement whether to permit Employee contributions. If the Employer
elects to permit Employee contributions, the Employer also must specify in its Adoption Agreement any conditions or limitations which may apply to Employee contributions. If the Employer permits
Employee contributions, the Employer operationally will determine if a Participant will make Employee contributions through payroll deduction or by other means. 

        The
Employer must elect in its Adoption Agreement whether the Employer will make matching contributions with respect to any Employee contributions and any conditions or limitations which
may apply to those matching contributions. Any matching contribution must satisfy the nondiscrimination requirements of Code §401(m). See Section 14.09. 

        4.03    DECs.    A DEC is a deductible Participant contribution made to the Plan for a taxable year commencing prior
to 1987. If a Participant has made DECs to the Plan, the Plan Administrator must maintain a separate Account for the Participant's DECs as adjusted for earnings, including DECs which are part of a
rollover contribution described in Section 4.04. The DECs Account is part of the Participant's Account for all purposes of the Plan, except for purposes of determining the top-heavy
ratio under Article XII. The Plan Administrator may not use a Participant's DECs Account to purchase life insurance on the Participant's behalf. 

        4.04    ROLLOVER CONTRIBUTIONS.    A rollover contribution is an amount of cash or property which the Code permits an
eligible Employee or Participant to transfer directly or indirectly to this Plan from another qualified plan. A rollover contribution excludes Employee contributions, as adjusted for earnings. An
Employer operationally and on a nondiscriminatory basis, may elect to permit or not to permit rollover contributions to this Plan or may elect to limit an eligible Employee's right or a Participant's
right to make a rollover contribution. If an Employer permits rollover contributions, any Participant (or as applicable, any eligible Employee), with the Employer's written consent and after filing
with the Trustee the form prescribed by the Plan Administrator, may make a rollover contribution to the Trust. Before accepting a rollover contribution, the Trustee may require a Participant (or
eligible Employee) to furnish satisfactory evidence the proposed transfer is in fact a "rollover contribution" which the Code permits an employee to make to a qualified plan. The Trustee, in its sole
discretion, may decline to accept a rollover contribution of property which could: (1) generate unrelated business taxable income; (2) create difficulty or undue expense in storage,
safekeeping or valuation; or (3) create other practical problems for the Trust. A rollover contribution is not an Annual Addition under Part 2 of Article III. 

        If
an eligible Employee makes a rollover contribution to the Trust prior to satisfying the Plan's eligibility conditions, the Plan Administrator and Trustee must treat the Employee as a
limited Participant (as described in Rev. Rul. 96-48 or in any successor ruling). A limited Participant does not share in the Plan's allocation of Employer contributions nor Participant
forfeitures and may not make deferral contributions if the Plan includes a 401(k) arrangement until he/she actually becomes a Participant in the Plan. If a limited Participant has a Separation from
Service prior to becoming a 

25

 

Participant in the Plan, the Trustee will distribute his/her rollover contributions Account to him/her in accordance with Article VI as if it were an Employer contributions Account. 

        4.05    PARTICIPANT CONTRIBUTIONS—VESTING.    A Participant's Participant contributions Account is, at all
times, 100% Vested. 

        4.06    PARTICIPANT CONTRIBUTIONS—DISTRIBUTION.    Subject to any contrary Employer election in its
Adoption Agreement Appendix A, an Employee, after attaining age 701/2 may elect to receive distribution prior to Separation from Service ("in-service distribution")
of all or any part of his/her Participant contributions Account. The Employer in its Adoption Agreement Section 6.01 must elect the additional in-service distribution election
rights, if any, a Participant has with respect to his/her Participant contributions Account. For purposes of the Employer's Adoption Agreement elections regarding in-service distribution
of Participant contributions, a Participant's Employee contributions also includes DECs. A Participant will not incur a forfeiture of any Account under the Plan solely as a result of the distribution
of his/her Participant contributions. 

        The
Trustee, following a Participant's Separation from Service, will distribute to the Participant his/her Participant contributions Account in accordance with Article VI in the
same manner as the Trustee distributes the Participant's Employer contributions Account. 

        4.07    PARTICIPANT CONTRIBUTIONS—INVESTMENT AND ACCOUNTING.    The Plan Administrator must maintain a
separate Account in the name of each Participant to reflect his/her Participant contributions (including, if applicable, the different types of Participant contributions), as adjusted for earnings.
The Trustee will invest all Participant contributions as part of the Trust Fund. 

 
 

ARTICLE V VESTING    
  

        5.01    NORMAL/EARLY RETIREMENT AGE.    The Employer in its Adoption Agreement must specify the Plan's Normal
Retirement Age. An Employer in its Adoption Agreement may specify an Early Retirement Age. A Participant's Account Balance derived from Employer contributions is 100% Vested upon and after his/her
attaining Normal Retirement Age (or if applicable, Early Retirement Age) if the Participant is employed by the Employer on or after that date. 

        5.02    PARTICIPANT DEATH OR DISABILITY.    Unless the Employer elects otherwise in its Adoption Agreement, a
Participant's Account Balance derived from Employer contributions is 100% Vested if the Participant's Separation from Service is a result of his/her death or his/her Disability. 

        5.03    VESTING SCHEDULE.    Except as provided in Sections 5.01 and 5.02, for each Year of Service as described in
Section 5.06, a Participant's Vested percentage of his/her Account Balance derived from Employer contributions equals the percentage under the vesting schedule the Employer has elected in its
Adoption Agreement. 

26

 

        For
purposes of Adoption Agreement Section 5.03, "6-year graded," "3-year cliff," "7-year graded" or "5-year cliff" means an
Employee's Vested percentage, based on each included Year of Service, under the following applicable schedule: 

	6-year graded
 
	 	7-year graded

	0-1 year / 0%	 	0-2 years / 0%
	2 years / 20%	 	3 years / 20%
	3 years / 40%	 	4 years / 40%
	4 years / 60%	 	5 years / 60%
	5 years / 80%	 	6 years / 80%
	6 years / 100%	 	7 years / 100%

	3-year cliff
 
	 	5-year cliff

	0-2 years / 0%	 	0-4 years / 0%
	3 years / 100%	 	5 years / 100%

        (A) "Grossed-Up" Vesting Formula.    If the Trustee makes a distribution (other than a cash-out
distribution described in Section 5.04) to a partially-Vested Participant, and the Participant has not incurred a Forfeiture Break in Service at the relevant time, the provisions of this
Section 5.03(A) apply to the Participant's Account Balance. At any relevant time following the distribution, the Plan Administrator will determine the Participant's Vested Account Balance
derived from Employer contributions in accordance with the following formula: P(AB + D)—D. 

        To
apply this formula, "P" is the Participant's current vesting percentage at the relevant time, "AB" is the Participant's Employer-derived Account Balance at the relevant time and "D"
is the amount of the earlier distribution. If, under a restated Plan, the Plan has made distribution to a partially-Vested Participant prior to its restated Effective Date and is unable to apply the
cash-out provisions of Section 5.04 to that prior distribution, this special vesting formula also applies to that Participant's remaining Account Balance. The Employer, in an
Addendum to its Adoption Agreement, may elect to
modify this formula to read as follows: P(AB + (R × D))—(R × D). For purposes of this alternative formula, "R" is the
ratio of "AB" to the Participant's Employer-derived Account Balance immediately following the earlier distribution. 

        (B) Special Vesting Elections.    The Employer in its Adoption Agreement may elect other specified vesting provisions which are
consistent with Code §411 and applicable Treasury regulations. 

        5.04    CASH-OUT DISTRIBUTIONS TO PARTIALLY-VESTED PARTICIPANTS/ RESTORATION OF FORFEITED ACCOUNT
BALANCE.    If, pursuant to Article VI, a partially-Vested Participant receives a cash-out distribution before he/she incurs a Forfeiture Break in
Service, the Participant will incur an immediate forfeiture of the non-Vested portion of his/her Account Balance. If a partially-Vested Participant's Account is entitled to an allocation
of Employer contributions or Participant forfeitures for the Plan Year in which he/she otherwise would incur a forfeiture by reason of a cash-out distribution, the Plan Administrator will
apply the cash-out forfeiture rule as if the partially-Vested Participant received a cash-out distribution on the first day of the immediately following Plan Year. A partially-
Vested Participant is a Participant whose Vested percentage determined under Section 5.03 is more than 0% but is less than 100%. A cash-out distribution is a distribution to the
Participant (whether involuntary or with required consent as described in Article VI), of his/her entire Vested Account Balance due to the Participant's Separation from Service. 

        (A) Forfeiture Restoration and Conditions for Restoration.    A partially-Vested Participant re-employed by the
Employer after receiving a cash-out distribution of the Vested percentage of his/her Account Balance may repay to the Trust the entire amount of the cash-out distribution
attributable to 

27

 

Employer contributions without any adjustment for gains and losses, unless the Participant no longer has a right to restoration under this Section 5.04(A). If a re-employed
Participant repays his/her cash-out distribution, the Plan Administrator, subject to the conditions of this Section 5.04(A), must restore the Participant's Account Balance
attributable to Employer contributions to the same dollar amount as the dollar amount of his/her Account Balance on the Accounting Date, or other valuation date, immediately preceding the date of the
cash-out distribution, unadjusted for any gains or losses occurring subsequent to that Accounting Date, or other valuation date. Restoration of the Participant's Account Balance includes
restoration of all Protected Benefits with respect to that restored Account Balance, in accordance with applicable Treasury regulations. The Plan Administrator will not restore a
re-employed Participant's Account Balance under this Section 5.04 (A) if: 

        (1)  5 years
have elapsed since the Participant's first re-employment date with the Employer following the cash-out distribution; 

        (2)  The
Participant is not in the Employer's Service on the date the Participant repays his/her cash-out distribution; or 

        (3)  The
Participant has incurred a Forfeiture Break in Service. This condition also applies if the Participant makes repayment within the Plan Year in which he/she incurs
the Forfeiture Break in Service and that Forfeiture Break in Service would result in a complete forfeiture of the amount the Plan Administrator otherwise would restore. 

        (B) Time and Method of Forfeiture Restoration.    If none of the conditions in Section 5.04(A) preventing restoration of
the Participant's Account Balance applies, the Plan Administrator will restore the Participant's Account Balance as of the Plan Year Accounting Date coincident with or immediately following the
repayment. To restore the Participant's Account Balance, the Plan Administrator, to the extent necessary, will allocate to the Participant's Account: 

        (1)  First,
the amount, if any, of Participant forfeitures the Plan Administrator otherwise would allocate under Section 3.05; 

        (2)  Second,
the amount, if any, of the Trust Fund net income or gain for the Plan Year; and 

        (3)  Third,
the Employer contribution for the Plan Year to the extent made under a discretionary formula. 

        In
an Addendum to its Adoption Agreement, the Employer may eliminate as a means of restoration any of the amounts described in clauses (1), (2) and (3) or may change the
order of priority of these amounts. To the extent the amounts described in clauses (1), (2) and (3) are insufficient to enable the Plan Administrator to make the required restoration,
the Employer must contribute, without regard to any requirement or condition of Article III, the additional amount necessary to enable the Plan Administrator to make the required restoration.
If, for a particular Plan Year, the Plan Administrator must restore the Account Balance of more than one re-employed Participant, the Plan Administrator will make the restoration
allocations from the amounts described in clauses (1), (2) and (3) to each such Participant's Account in the same proportion that a Participant's restored amount for the Plan Year bears
to the restored amount for the Plan Year of all re-employed Participants. A cash-out restoration allocation is not an Annual Addition under Part 2 of Article III. 

        (C) Deemed Cash-out of 0% Vested Participant.    Except as the Employer may provide in an Addendum to its Adoption
Agreement, the deemed cash-out rule of this Section 5.04(C) applies to any 0% Vested Participant. A "0% Vested Participant" is a Participant whose Account Balance derived from
Employer contributions is entirely forfeitable at the time of his/her Separation from Service. If a 0% Vested Participant's Account is not entitled to an allocation of Employer contributions for the
Plan Year in which the Participant has a Separation from Service, the Plan Administrator will apply the deemed cash-out rule as if the 0% Vested Participant received a cash-out
distribution on the date of 

28

 

the Participant's Separation from Service. If a 0% Vested Participant's Account is entitled to an allocation of Employer contributions or Participant forfeitures for the Plan Year in which the
Participant has a Separation from Service, the Plan Administrator will apply the deemed cash-out rule as if the 0% Vested Participant received a cash-out distribution on the
first day of the first Plan Year beginning after his/her Separation from Service. For purposes of applying the restoration provisions of this Section 5.04, the Plan Administrator will treat a
reemployed 0% Vested Participant as repaying his/her cash-out "distribution" on the date of the Participant's re-employment with the Employer. 

        5.05    ACCOUNTING FOR CASH-OUT REPAYMENT.    As soon as is administratively practicable, the Plan
Administrator will credit to the Participant's Account the cash-out amount a Participant has repaid to the Plan. Pending the restoration of the Participant's Account Balance, the Plan
Administrator under Section 9.08(B) may direct the Trustee to place the Participant's cash-out repayment in a temporary segregated investment Account. Unless the
cash-out repayment qualifies as a Participant rollover contribution, the Plan Administrator will direct the Trustee to repay to the Participant as soon as is administratively practicable,
the full amount of the Participant's cash-out repayment if the Plan Administrator determines any of the conditions of Section 5.04(A) prevents restoration as of the applicable
Accounting Date, notwithstanding the Participant's repayment. 

        5.06    YEAR OF SERVICE—VESTING.    For purposes of determining a Participant's vesting under
Section 5.03, "Year of Service" means the 12-consecutive month vesting computation period the Employer elects in its Adoption Agreement during which an Employee completes the number
of Hours of Service (not exceeding 1,000) specified in the Adoption Agreement or, if the Plan applies the Elapsed Time Method of crediting Vesting Service, the vesting computation period for which the
Employee receives credit for a Year of Service under the Service crediting rules of Section 1.15(D). A Year of Service includes any Year of Service completed prior to the Effective Date of the
Plan, except as provided in Section 5.08. 

        5.07    BREAK IN SERVICE AND FORFEITURE BREAK IN SERVICE—VESTING.    For purposes of this
Article V, a Participant incurs a "Break in Service" if during any vesting computation period he/she does not complete more than 500 Hours of Service or, if the Plan applies the Elapsed Time
Method of crediting Service, the Participant has a Period of Severance of at least 12 consecutive months. If, pursuant to Section 5.06, the Plan does not require more than 500 Hours of Service
to receive credit for a Year of Service, a Participant incurs a Break in Service in a vesting computation period in which he/she fails to complete a Year of Service. A Participant incurs a Forfeiture
Break in Service when he/she incurs 5 consecutive Breaks in Service. The Plan does not apply the Break in Service (one year hold-out) rule for vesting under Code §411(a)(6)(B).
Therefore, an Employee need not complete a Year of Service after a Break in Service before the Plan takes into account the Employee's otherwise includible pre-Break Years of Service under
this Article V. 

        5.08    INCLUDED YEARS OF SERVICE—VESTING.    For purposes of determining "Years of Service" under
Section 5.06, the Plan takes into account all Years of Service an Employee completes with the Employer except: 

        (a)  For
the sole purpose of determining a Participant's Vested percentage of his/her Account Balance derived from Employer contributions which accrued for his/her benefit
prior to a Forfeiture Break in Service or receipt of a cash-out distribution, the Plan disregards any Year of Service after the Participant first incurs a Forfeiture Break in Service or
receives a cash-out distribution (except where the Plan Administrator restores the Participant's Account under Section 5.04(A)). 

        (b)  Consistent
with Code §411(a)(4), any Year of Service the Employer elects to exclude under its Adoption Agreement. 

29

 

        5.09    FORFEITURE OCCURS.    A Participant's forfeiture of his/her non-Vested Account Balance derived
from Employer contributions occurs under the Plan on the earlier of: 

        (a)  The
last day of the vesting computation period in which the Participant first incurs a Forfeiture Break in Service; or 

        (b)  The
date the Participant receives a cash-out distribution. 

        The
Plan Administrator determines the percentage of a Participant's Account Balance forfeiture, if any, under this Section 5.09 solely by reference to the vesting schedule the
Employer elected in its Adoption Agreement. A Participant does not forfeit any portion of his/her Account Balance for any other reason or cause except as expressly provided by this Section 5.09
or as provided under Section 9.11. 

        5.10    RULE OF PARITY—VESTING.    The Employer may elect in its Adoption Agreement to apply the "rule of
parity" under Code §411(a)(6)(D) for purposes of determining vesting Years of Service. Under the rule of parity, the Plan Administrator excludes a Participant's Years of Service before a
Break in Service if: (a) the number of the Participant's consecutive Breaks in Service equals or exceeds 5; and (b) the Participant is 0% Vested in his/her Account Balance derived from
Employer contributions at the time he/she has the Breaks in Service. 

        5.11    AMENDMENT TO VESTING SCHEDULE.    The Employer under Section 13.02 may amend the Plan's vesting
schedule(s) under Section 5.03 at any time. However, the Plan Administrator will not apply the amended vesting schedule to reduce any Participant's existing Vested percentage (determined on the
later of the date the Employer adopts the amendment, or the date the amendment becomes effective) in the Participant's existing and future Account Balance attributable to Employer contributions, to a
percentage less than the Vested percentage computed under the Plan without regard to the amendment. Furthermore, an amended vesting schedule will apply to a Participant only if the
Participant receives credit for at least one Hour of Service after the new vesting schedule becomes effective. 

        If
the Employer amends the Plan's vesting schedule, each Participant having completed at least 3 Years of Service (as described in Section 5.06) with the Employer prior to the
expiration of the election period described below, may irrevocably elect to have the Plan Administrator determine the Vested percentage of his/her Account Balance without regard to the amendment. The
Participant must file his/her election with the Plan Administrator within 60 days of the latest of: (a) the Employer's adoption of the amendment; (b) the effective date of the
amendment; or (c) the Participant's receipt of a copy of the amendment. The Plan Administrator, as soon as practicable, must forward a true copy of any amendment to the vesting schedule to each
affected Participant, together with a written explanation of the effect of the amendment, the appropriate form upon which the Participant may make an election to remain under the
pre-amendment vesting schedule and notice of the time within which the Participant must make an election to remain under the pre-amendment vesting schedule. The election
described in this Section 5.11 does not apply to a Participant if the amended vesting schedule provides for vesting at least as rapid at any time as the vesting schedule in effect prior to the
amendment. For purposes of this Section 5.11, an amendment to the vesting schedule includes any Plan amendment which directly or indirectly affects the computation of the Vested percentage of a
Participant's Account Balance. Furthermore, any shift in the Plan's vesting schedule under Article XII, due to a change in the Plan's top-heavy status, is an amendment to the
vesting schedule for purposes of this Section 5.11. 

        5.12    DEFERRAL CONTRIBUTIONS TAKEN INTO ACCOUNT.    If the Plan includes a 401(k) arrangement, the vesting rules
described in Article V must take into account a Participant's deferral contributions for purposes of determining: (1) if a Participant's distribution is of his/her entire Vested Account
balance as required for a cash-out distribution under Section 5.04; (2) if a Participant repays 

30

 

the entire amount of a prior cash-out distribution so the Participant is entitled to restoration under Section 5.04(A); and (3) if a Participant is 0% vested under
Section 5.04(C) and under Section 5.10. 

 
 

ARTICLE VI DISTRIBUTIONS    
  

        6.01    TIMING OF DISTRIBUTION.    The Plan Administrator will direct the Trustee to commence distribution of a
Participant's Vested Account Balance in accordance with this Section 6.01 upon the Participant's Separation from Service for any reason, or if the Participant exercises an
in-Service distribution right under the Plan. The Trustee may make Plan distributions on any administratively practicable date during the Plan Year, consistent with the Employer's
elections in its Adoption Agreement. 

        (A) Distribution upon Separation from Service (other than death).    

        (1)  Participant's Vested Account Balance not exceeding $5,000. Upon the Participant's Separation from Service for any reason
other than death, the Plan Administrator (without any requirement of Participant or spousal consent) will direct the Trustee to distribute the Participant's Vested Account Balance (determined in
accordance with Section 6.01(A)(6)) not exceeding $5,000 in a lump sum (without regard to Section 6.04), at the time specified in the Adoption Agreement, but in no event later than the
60th day following the close of the Plan Year in which the later of the following events occur: (a) the Participant attains Normal Retirement Age; or (b) the Participant Separates from
Service. 

        (2)  Participant's Vested Account Balance exceeds $5,000. Upon the Participant's Separation from Service for any reason other
than death, the Plan Administrator, subject to the Participant's election to postpone distribution under this Section 6.01(A)(2) and the consent requirements of Section 6.01(A)(5), will
direct the Trustee to commence distribution of the Participant's Vested Account Balance (determined in accordance with Section 6.01(A)(6)) exceeding $5,000, at the time specified in the
Adoption Agreement and in a form under Section 6.03 elected by the Participant. Any election under this Section 6.01(A)(2) is subject to the requirements of Section 6.02 and of
Section 6.04. 

        A
Participant eligible to make an election under this Section 6.01(A)(2) may elect to postpone distribution beyond the time the Employer has elected in its Adoption Agreement, to
any specified date including, but not beyond the Participant's Required Beginning Date, unless the Employer, in its Adoption Agreement, specifically limits a Participant's right to postpone
distribution of his/her Account Balance to the later of the date the Participant attains age 62 or Normal Retirement Age. The Plan Administrator will reapply the notice and consent requirements of
Section 6.01(A)(4) and Section 6.01(A)(5) to any distribution postponed under this Section 6.01(A)(2). 

        In
the absence of a Participant's consent and distribution election (as described in Section 6.01(A)(5)) or in the absence of the Participant's election to postpone distribution
prior to his/her annuity starting date, the Plan Administrator, consistent with the Employer's elections in its Adoption Agreement, will treat the Participant as having elected to postpone his/her
distribution until the 60th day following the close of the Plan Year in which the latest of the following events occurs: (a) the Participant attains Normal Retirement Age; (b) the
Participant attains age 62; or (c) the Participant Separates from Service. At the applicable date, the Plan Administrator then will direct the Trustee to distribute the Participant's Vested
Account Balance in a lump sum (or, if applicable, the annuity form of distribution required under Section 6.04). 

        (3)  Disability. If the Participant's Separation from Service is because of his/her Disability, the Plan Administrator will
direct the Trustee to pay the Participant's Vested Account Balance in the same manner as if the Participant had incurred a Separation from Service without Disability. 

31

 

        (4)  Distribution notice/annuity starting date. At least 30 days and not more than 90 days prior to the
Participant's annuity starting date, the Plan Administrator must provide a written notice (or a summary notice as permitted under Treasury regulations) to a Participant who is eligible to make an
election under Section 6.01(A)(2) ("distribution notice"). The distribution notice must explain the optional forms of benefit in the Plan, including the material features and relative values of
those options, and the Participant's right to postpone distribution until the applicable date described in Section 6.01(A)(2). For all purposes of this Article VI, the term "annuity
starting date" means the first day of the first period for which the Plan pays an amount as an annuity or in any other form but in no event is the "annuity starting date" earlier than a Participant's
Separation from Service. 

        (5)  Consent requirements/Participant distribution election. A Participant must consent, in writing, following receipt of the
distribution notice, to any distribution under this Section 6.01, if at the time of the distribution to the Participant, the Participant's Vested Account Balance exceeds $5,000 and the
Participant has not attained the later of Normal Retirement Age or age 62. Accounts which are distributable prior to the foregoing applicable age are "immediately distributable." Furthermore, the
Participant's spouse also must consent, in writing, to any distribution, for which Section 6.04 requires the spouse's consent. The Participant may reconsider his/her distribution election at
any time prior to the annuity starting date and elect to commence distribution as of any other distribution date permitted under the Plan or under the Adoption Agreement. A Participant may elect to
receive distribution at any administratively practicable time which is earlier than 30 days following the Participant's receipt of the distribution notice, by waiving in writing the balance of
the 30 days. However, if the requirements of Section 6.04 apply, the Participant may not elect to commence distribution less than 7 days following the Participant's receipt of the
distribution notice. The consent requirements of this Section 6.01(A)(5) do not apply with respect to defaulted loans described in Section 10.03(E). 

        (6)  Determination of Vested Account Balance. For purposes of the consent requirements under this Article VI, the Plan
Administrator determines a Participant's Vested Account Balance as of the most recent valuation date immediately prior to the distribution date, and takes into account the Participant's entire
Account, including deferral contributions. The Plan Administrator in determining the Participant's Vested Account Balance at the relevant time, will disregard a Participant's Vested Account Balance
existing on any prior date, except as the Code otherwise may require. 

        (7)  Consent to cash-out/forfeiture. If a Participant is partially-Vested in his/her Account Balance, a
Participant's election under Section 6.01(A)(2) to receive distribution prior to the Participant's incurring a Forfeiture Break in Service, must be in the form of a cash-out
distribution as defined in Section 5.04. 

        (8)  Return to employment. A Participant may not receive a distribution by reason of Separation from Service, or continue any
installment distribution based on a prior Separation from Service, if, prior to the time the Trustee actually makes the distribution, the Participant returns to employment with the Employer. 

        (B) Distribution upon Death.    In the event of the Participant's Separation from Service on account of death, the Plan
Administrator will direct the Trustee, in accordance with this Section 6.01(B) and subject to Section 6.02(D), to distribute to the Participant's Beneficiary the Participant's Vested
Account Balance remaining in the Trust at the time of the Participant's death. 

        The
Plan Administrator, subject to the requirements of Sections 6.04 and 6.02(D) or to a Beneficiary's written election (if authorized by the next paragraph of this
Section 6.01(B)), must direct the Trustee to distribute or commence distribution of the deceased Participant's Vested Account Balance, as soon as administratively practicable following the
Participant's death or, if later, the date on which the Plan Administrator receives notification of, or otherwise confirms, the Participant's death. If the Participant's Vested Account Balance
determined in accordance with Section 6.01(A)(6) does not exceed $5,000, the Trustee will distribute the balance in a lump sum without regard to Section 6.04. If 

32

 

the Participant's Vested Account Balance exceeds $5,000, the Trustee will distribute the balance subject to Section 6.02(D). 

        If
the Participant's death benefit is payable in full to the Participant's surviving spouse, the surviving spouse may elect distribution at any time and in any form (except a joint and
survivor annuity) the Plan would permit a Participant to elect upon Separation from Service. The Participant, on a form prescribed by the Plan Administrator, may (subject to the requirements of
Section 6.04) elect the payment method or the payment term or both, which will apply to any Beneficiary, including his/her surviving spouse. The Participant's election may limit any
Beneficiary's right to increase the frequency or the amount of any payments. Any payment term elected by the Participant must not exceed the payment term the Code otherwise would permit the
Beneficiary to elect upon the Participant's death. 

        (C) In-Service Distribution.    The Employer must elect in its Adoption Agreement the distribution election rights,
if any, a Participant has prior to his/her Separation from Service ("in-service distribution"). Subject to any contrary Employer election in Appendix A to its Adoption Agreement, a
Participant upon attaining age 701/2, until he/she incurs a Separation from Service, has a continuing election to receive all or any portion of his/her Account Balance, including
Employer contributions and Participant contributions. If the Employer elects in its Adoption Agreement additional in-service distribution of any Employer contribution (including deferral
contributions), the Employer in its Adoption Agreement must specify events or conditions, if any, applicable to such in-service distributions. For special requirements regarding hardship
distributions, see Section 6.09. The Employer also must elect in its Adoption Agreement the additional in-service distribution rights, if any, a Participant has with respect to
Participant contributions as defined in Section 4.01. If a Participant receives an in-service distribution as to a partially-Vested Account, and the Participant has not incurred a
Forfeiture Break in Service, the Plan Administrator will apply the vesting provisions of Section 5.03(A). 

        A
Participant must make any permitted in-service distribution election under this Section 6.01(C) in writing and on a form prescribed by the Plan Administrator which
specifies the percentage or dollar amount of the distribution and the Participant's Plan Account (Employer contributions or Participant contributions and type) to which the election applies. If the
Plan permits in-service distributions, a Participant only may elect to receive one in-service distribution per Plan Year under this Section 6.01(C)
unless the election form prescribed by the Plan Administrator provides for more frequent distributions. The Trustee, as directed by the Plan Administrator and subject to Sections 6.01(A)(4),
6.01(A)(5) and 6.04, will distribute the amount(s) a Participant elects in single sum, as soon as administratively practicable after the Participant files his/her in-service distribution
election with the Plan Administrator. The Trustee will distribute the Participant's remaining Account Balance in accordance with the other provisions of this Article VI. 

        The
Trustee, prior to a Participant's Normal Retirement Age or Disability may not make any in-service distribution to the Participant with respect to his/her Account Balance
attributable to assets (including post-transfer earnings on those assets) and liabilities transferred, within the meaning of Code §414(l), to a profit sharing plan from a money
purchase pension plan or from a target benefit plan qualified under Code §401(a) (other than any portion of those assets and liabilities attributable to Employee contributions). 

        6.02    REQUIRED MINIMUM DISTRIBUTIONS.    

        (A) Priority of Required Minimum Distribution.    If any distribution under this Article VI (by Plan provision or by
Participant election or nonelection), would commence later than the Participant's required beginning date ("RBD"), the Plan Administrator instead must direct the Trustee to make distribution on the
Participant's RBD, subject only to the TEFRA election, if applicable, under Section 6.11. The Employer in its Adoption Agreement Appendix B may elect to apply a special 

33

 

effective date to the RBD definition or may elect in Appendix A to continue to apply the RBD definition in effect prior to 1997 ("pre-SBJPA RBD"). The Employer in its Adoption
Agreement also may elect to require distribution earlier than the RBD. 

        (1)  RBD—more than 5% owner. A Participant's RBD is the April 1 following the close of the calendar year in
which the Participant attains age 701/2 if the Participant is a more than 5% owner (as defined in Code §416) with respect to the Plan Year ending in that calendar year. If a
Participant is a more than 5% owner at the close of the relevant calendar year, the Participant may not discontinue required minimum distributions notwithstanding the Participant's subsequent change
in ownership status. 

        (2)  RBD—non 5% owners. If the Participant is not a more than 5% owner, his/her RBD is the April 1
following the close of the calendar year in which the Participant incurs a Separation from Service or, if later, the April 1 following the close of the calendar year in which the Participant
attains age 701/2. If a Participant is not a more than 5% owner, his/her pre-SBJPA RBD (if applicable) is April 1 following the close of the calendar year in which
the Participant attains age 701/2. 

        (3)  Form of distribution. The Trustee will make a required minimum distribution at the Participant's RBD in a lump sum (or,
if applicable, the annuity form of distribution required under Section 6.04)
unless the Participant, pursuant to the provisions of this Article VI, makes a valid election to receive an alternative form of payment. 

        (B) Participant Transitional Elections.    

        (1)  Election to discontinue distributions. A Participant who: (a) is not a more than 5% owner; (b) had attained
age 701/2 prior to 1997; (c) had commenced prior to 1997 required minimum distributions under the pre-SBJPA RBD; and (d) has not incurred a Separation from
Service, has a continuing election to discontinue receiving distributions from the Plan (which previously were required minimum distributions under the Plan). A Participant who makes an election under
this Section 6.02(B)(1) must establish a new annuity starting date when he/she recommences payment of his/her Account Balance under the Plan. A married Participant who is subject to
Section 6.04 must obtain spousal consent: (a) to discontinue his/her distributions under this Section 6.04(B)(1) if distributions are in QJSA form; and (b) to recommence
benefits in a form other than a QJSA. A Participant may not make any election under this Section 6.02(B)(1) which is inconsistent with any QDRO applicable to the Participant's Account. 

        (2)  Election to postpone distributions. A Participant who: (a) is not a more than 5% owner; and (b) attained
age 701/2 after 1996 (or who attained age 701/2 in 1996, but who had not commenced his/her required minimum distributions in 1996) may elect under this
Section 6.02(B)(2) to postpone distribution of required minimum distributions until the Participant's RBD established under Section 6.02(A). If the Participant attained age
701/2in 1996, he/she must have elected under this Section 6.02(B)(2) to postpone distributions by December 31, 1997. If the Participant attained age 701/2
after 1996, he/she must make the election to postpone distribution under this Section 6.01(B)(2) not later than April 1 of the calendar year following the year in which the Participant
attains age 701/2. 

        (3)  Election requirements. All Participant elections made under this Section 6.01(B) are subject to and must be
consistent with the Employer's RBD elections in its Adoption Agreement Appendices A and B. A Participant makes his/her election under this Section 6.02(B) in writing on a form prescribed by the
Plan Administrator. 

        (C) Minimum Distribution Requirements for Participants.    The Plan Administrator may not direct the Trustee to distribute the
Participant's Vested Account Balance, nor may the Participant elect to have the Trustee distribute his/her Vested Account Balance, under a method of payment which, as of the Participant's RBD, does
not satisfy the minimum distribution requirements under Code §401(a)(9) and the applicable Treasury regulations. 

34

 

        (1)  Calculation of amount. The required minimum distribution for a calendar year ("distribution calendar year") equals the
Participant's Vested Account Balance as of the latest valuation date preceding the beginning of the distribution calendar year (such valuation date being within the "valuation calendar year") divided
by the Participant's life expectancy or, if applicable, the joint and last survivor expectancy of the Participant and his/her designated Beneficiary (as determined under Article VIII, subject
to the requirements of Code §401(a)(9)). The Plan Administrator will increase the Participant's Vested Account Balance, as determined on the relevant valuation date, for contributions or
forfeitures allocated after the valuation date and by December 31 of the valuation calendar year, and will decrease the valuation by distributions made after the valuation date and by
December 31 of the valuation calendar year. For purposes of this valuation, any portion of the required minimum distribution for the first distribution calendar year made after the close of
that year is a distribution occurring in that first distribution calendar year. 

        (2)  Recalculation. In computing a required minimum distribution, the Plan Administrator must use the unisex life expectancy
multiples under Treas. Reg. §1.72-9. The Plan Administrator, only upon the Participant's timely election, will compute the required minimum distribution for a distribution
calendar year subsequent to the first distribution calendar year by redetermining ("recalculation" of) the Participant's life expectancy or the Participant's and spouse designated Beneficiary's life
expectancies as elected. However, the Plan Administrator may not redetermine the joint life and last survivor expectancy of the Participant and a nonspouse designated Beneficiary in a manner which
takes into account any adjustment to a life expectancy other than the Participant's life expectancy. A Participant must elect recalculation under this Section 6.02(C)(2) in writing and on a
form the Plan Administrator prescribes, not later than the Participant's RBD. 

        (3)  Minimum distribution incidental benefit (MDIB). If the Participant's spouse is not his/her designated Beneficiary, a
method of payment to the Participant (whether by Participant election or by Plan Administrator direction) must satisfy the MDIB requirement under Code §401(a)(9) for distributions made on
or after the Participant's RBD and before the Participant's death. To satisfy the MDIB requirement, the Plan Administrator will compute the Participant's required minimum distribution by substituting
the applicable MDIB divisor for the applicable life expectancy factor, if the MDIB divisor is a lesser number. Following the Participant's death, the Plan Administrator will compute the minimum
distribution required by Section 6.02(D) solely on the basis of the applicable life expectancy factor and will disregard the MDIB factor. 

        (4)  Payment due date. The required minimum distribution for the first distribution calendar year is due by the Participant's
RBD. The required minimum distribution for each subsequent distribution calendar year, including the calendar year in which the Participant's RBD occurs, is due by December 31 of that year. 

        (5)  Nontransferable annuity. If the Participant receives distribution in the form of a Nontransferable Annuity, the
distribution satisfies this Section 6.02(C) if the contract complies with the requirements of Code §401(a)(9). 

        (D) Minimum Distribution Requirements for Beneficiaries. The method of distribution to the Participant's Beneficiary must satisfy Code
§401(a)(9). 

        (1)  Death after RBD. If the Participant's death occurs after his/her RBD (or earlier, if the Participant had commenced an
irrevocable annuity pursuant to Section 6.04), the Trustee must distribute the Participant's remaining benefit to the Beneficiary at least as rapidly as under the method in effect for the
Participant, determined without regard to the MDIB requirements of Section 6.02(C)(3). 

        (2)  Death prior to RBD. If the Participant's death occurs prior to his/her RBD (and the Participant had not commenced an
irrevocable annuity pursuant to Section 6.04), the method of 

35

 

payment to the Beneficiary, subject to Section 6.04, must provide for completion of payment to the Beneficiary over a period not exceeding: (a) 5 years after the date of the
Participant's death; or (b) if the Beneficiary is a designated Beneficiary, the designated Beneficiary's life expectancy. A designated Beneficiary is a Beneficiary designated by the Participant
or determined under Section 8.02. The Plan Administrator may not direct payment of the Participant's Vested Account Balance over a period described in clause (b) unless the Trustee will
commence payment to the designated Beneficiary no later than the December 31 following the close of the calendar year in which the Participant's death occurred or, if later, and the designated
Beneficiary is the Participant's surviving spouse, December 31 of the calendar year in which the Participant would have attained age 701/2. 

        If
the Trustee will make distribution in accordance with clause (b) of this Section 6.02(D)(2), the minimum distribution for a distribution calendar year equals the
Participant's Vested Account Balance as of the latest valuation date preceding the beginning of the distribution calendar year divided by the designated Beneficiary's life expectancy. The Plan
Administrator must use the unisex life expectancy multiples under Treas. Reg. §1.72-9 for purposes of applying this Section 6.02(D). 

        (3)  Recalculation. The Plan Administrator, only upon the Participant's election (under Section 6.02(C)(2)) or the
Participant's surviving spouse designated Beneficiary's election, will recalculate the life expectancy of the Participant's surviving spouse not more frequently than annually. However, the Plan
Administrator may not recalculate the life expectancy of a nonspouse designated Beneficiary after the Trustee commences payment to the designated Beneficiary. The Plan Administrator will apply this
Section 6.02(D) by treating any amount paid to the Participant's child, which becomes payable to the Participant's surviving spouse upon the child's attaining the age of majority, as paid to
the Participant's surviving spouse. A surviving spouse designated Beneficiary must elect recalculation under this §6.02(D)(3) in writing and on a form the Plan Administrator prescribes not
later than the last day of the spouse's first distribution year. 

        (4)  Beneficiary election. If the Participant under Section 6.01(B) had not elected the payment method or payment term,
the Participant's Beneficiary must elect the method of distribution no later than the date specified above upon which the Trustee must commence distribution to the Beneficiary. If the
Beneficiary fails to elect timely a distribution method, the Plan Administrator must commence distribution within the time required for a Participant who dies without a designated Beneficiary. 

        (E) Model Amendment.    The employer in Appendix B to its Adoption Agreement may elect to apply the following IRS Model
Amendment: 

        With
respect to distributions under the Plan made on or after the effective date the Employer specifies in Appendix B to its Adoption Agreement, for calendar years beginning on or
after January 1, 2001, 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, (the "2001 Proposed Regulations"), notwithstanding any provision of the Plan to the contrary. If the total amount of required
minimum distributions made to a Participant for 2001 prior to the Appendix B effective date are equal to or greater than the amount of required minimum distributions determined under the 2001
Proposed Regulations, then no additional distributions are required for such Participant for 2001 on or after such date. If the total amount of required minimum distributions made to a Participant for
2001 prior to the Appendix B effective date are less than the amount determined under the 2001 Proposed Regulations, then the amount of required minimum distributions for 2001 on or after such
date will be determined so that the total amount of required minimum distributions for 2001 is the amount determined under the 2001 Proposed Regulations. This amendment shall continue in effect until
the last calendar year beginning before the effective date of final regulations under section 401(a)(9) or such other date as may be published by the Internal Revenue Service. 

36

 

        6.03    METHOD OF DISTRIBUTION.    Subject to any contrary requirements imposed by Sections 6.01 (including 6.01(C)
regarding in-service distributions), 6.02 or 6.04, a Participant or a Beneficiary may elect distribution under one, or any combination, of the following methods: (a) by payment in a
lump sum; or (b) by payment in monthly, quarterly or annual installments over a fixed reasonable period of time, not exceeding the life expectancy of the Participant, or the joint life and last
survivor expectancy of the Participant and his/her designated Beneficiary. The Employer may elect in its Adoption Agreement to modify the methods of payment available under this Section 6.03.
If the Employer's Plan is a restated Plan, the Employer in its Adoption Agreement and in accordance with Treas. Reg. §1.411(d)-4, may elect to eliminate from the prior Plan
certain Protected Benefits. If the Employer elects or is required to provide an annuity, the annuity must: (1) be a Nontransferable Annuity; and (2) otherwise comply with the Plan terms. 

        The
distribution options permitted under this Section 6.03 are available only if the Participant's Vested Account Balance, as determined under Section 6.01(A)(6), exceeds
$5,000. To facilitate installment payments under this Article VI, the Plan Administrator under Section 9.08(B) may direct the Trustee to segregate all or any part of the Participant's
Account Balance in a segregated investment Account. Under an installment distribution, the Participant or the Beneficiary, at any time, may elect to accelerate the payment of all, or any portion, of
the Participant's unpaid Vested Account Balance. 

        Pending
final accounting for a valuation date, the Plan Administrator may make a partial distribution to a Participant who has incurred a Separation from Service or to a Beneficiary. 

        6.04    ANNUITY DISTRIBUTIONS TO PARTICIPANTS AND TO SURVIVING SPOUSES.    

        (A) Qualified Joint and Survivor Annuity (QJSA).    The Plan Administrator must direct the Trustee to distribute a married or
unmarried Participant's Vested Account Balance in the form of a QJSA, unless the Participant, and spouse if the Participant is married, waive the QJSA in accordance with Section 6.05. If, as of
the annuity starting date, the Participant is married (even if the Participant has not been married throughout the one year period ending on the annuity starting date), a QJSA is an immediate annuity
which is purchasable with the Participant's Vested Account Balance and which provides a life annuity for the Participant and a survivor annuity payable for the remaining life of the Participant's
surviving spouse equal to 50% of the amount of the annuity payable during the life of the Participant. If, as of the annuity starting date, the Participant is not married, a QJSA is an immediate life
annuity for the Participant which is purchasable with the Participant's Vested Account Balance. A life annuity means an annuity payable in equal installments for the life of the Participant that
terminates upon the Participant's death. 

        (B) Qualified Preretirement Survivor Annuity (QPSA).    If a married Participant dies prior to his/her annuity starting date,
the Plan Administrator will direct the Trustee to distribute a portion of the Participant's Vested Account Balance to the Participant's surviving spouse in the form of a QPSA, unless: (1) the
Participant has a valid waiver election (as described in Section 6.06) in effect; or (2) the Participant and his/her spouse were not married throughout the one year period ending on the
date of the Participant's death. The Employer in an Addendum to its Adoption Agreement may elect not to apply the one year of marriage requirement in clause (2). A QPSA is an annuity which is
purchasable with 50% of the Participant's Vested Account Balance (determined as of the date of the Participant's death) and which is payable for the life of the Participant's surviving spouse. The
value of the QPSA is attributable to Employer contributions and to Participant contributions in the same proportion as the Participant's Vested Account Balance is attributable to those contributions.
The portion of the Participant's Vested Account Balance not payable as a QPSA is payable to the Participant's Beneficiary, in accordance with the remaining provisions of this Article VI. 

        (C) Surviving Spouse Elections.    If the Participant's Vested Account Balance which the Trustee would apply to purchase the
QPSA exceeds $5,000, the Participant's surviving spouse may elect to have 

37

 

the Trustee commence payment of the QPSA at any time following the date of the Participant's death, but not later than the mandatory distribution periods described in Section 6.02, and may
elect any of the forms of payment described in Section 6.03, in lieu of the QPSA. In the absence of an election by the surviving spouse, the Plan Administrator must direct the Trustee to
distribute the QPSA on the earliest administratively practicable date following the close of the Plan Year in which the latest of the following events occurs: (1) the Participant's death;
(2) the date the Plan Administrator receives
notification of or otherwise confirms the Participant's death; (3) the date the Participant would have attained Normal Retirement Age; or (4) the date the Participant would have attained
age 62. 

        (D) Effect of Waiver.    If the Participant has in effect a valid waiver election regarding the QJSA or the QPSA, the Plan
Administrator must direct the Trustee to distribute the Participant's Vested Account Balance in accordance with Sections 6.01, 6.02 and 6.03. 

        (E) Loan Offset.    The Plan Administrator will reduce the Participant's Vested Account Balance by any security interest
(pursuant to any offset rights authorized by Section 10.03(E)) held by the Plan by reason of a Participant loan, to determine the value of the Participant's Vested Account Balance distributable
in the form of a QJSA or QPSA, provided the loan satisfied the spousal consent requirement described in Section 10.03(E). 

        (F) Effect of QDRO.    For purposes of applying this Article VI, a former spouse (in lieu of the Participant's current
spouse) is the Participant's spouse or surviving spouse to the extent provided under a QDRO described in Section 6.07. The provisions of this Section 6.04, and of Sections 6.05 and 6.06,
apply separately to the portion of the Participant's Vested Account Balance subject to a QDRO and to the portion of the Participant's Vested Account Balance not subject to the QDRO. 

        (G) Vested Account Balance Not Exceeding $5,000.    The Trustee must distribute in a lump sum, a Participant's Vested Account
Balance which the Trustee otherwise under Section 6.04 would apply to provide a QJSA or QPSA benefit, where the Participant's Vested Account Balance determined under Section 6.01(A)(6)
does not exceed $5,000. 

        (H) Profit Sharing Plan Exception.    If this Plan is a profit sharing plan, the Employer in its Adoption Agreement must elect
the extent to which the preceding provisions of Section 6.04 apply. The Employer may elect to exempt from the provisions of Section 6.04, all Participants ("Exempt Participants") except
the following Participants to whom Section 6.04 must be applied: (1) a Participant as respects whom the Plan is a direct or indirect transferee from a plan subject to the Code
§417 requirements and the Plan received the transfer after December 31, 1984, unless the transfer is an elective transfer described in Section 13.07; (2) a Participant
who elects a life annuity distribution (if Section 13.02 of the Plan requires the Plan to provide a life annuity distribution option); and (3) a Participant whose benefits under a
defined benefit plan maintained by the Employer are offset by benefits provided under this Plan. If the Employer elects to apply this Section 6.04 to all Participants, the preceding provisions
of this Section 6.04 apply to all Participants without regard to the limitations of this Section 6.04(H). Sections 6.05 and 6.06 only apply to Participants to whom the provisions of this
Section 6.04 apply. 

        6.05    WAIVER ELECTION—QJSA.    At least 30 days and not more than 90 days before the
Participant's annuity starting date, the Plan Administrator must provide the Participant a written explanation of the terms and conditions of the QJSA, the Participant's right to make, and the effect
of, an election to waive the QJSA benefit, the rights of the Participant's spouse regarding the waiver election and the Participant's right to make, and the effect of, a revocation of a waiver
election ("QJSA notice"). The
Plan does not limit the number of times the Participant may revoke a waiver of the QJSA or make a new waiver during the election period. The Participant (and his/her spouse, if the Participant is
married), may revoke an election to receive a particular form of benefit at any time until the annuity starting date. 

38

 

        A
married Participant's QJSA waiver election is not valid unless: (a) the Participant's spouse (to whom the survivor annuity is payable under the QJSA), after the Participant has
received the QJSA notice, has consented in writing to the waiver election, the spouse's consent acknowledges the effect of the election, and a notary public or the Plan Administrator (or his/her
representative) witnesses the spouse's consent; (b) the spouse consents to the alternative form of payment designated by the Participant or to any change in that designated form of payment; and
(c) unless the spouse is the Participant's sole primary Beneficiary, the spouse consents to the Participant's Beneficiary designation or to any change in the Participant's Beneficiary
designation. The spouse's consent to a waiver of the QJSA is irrevocable, unless the Participant revokes the waiver election. The spouse may execute a blanket consent to the Participant's future
payment form election or Beneficiary designation, if the spouse acknowledges the right to limit his/her consent to a specific designation but, in writing, waives that right. 

        The
Plan Administrator will accept as valid a waiver election which does not satisfy the spousal consent requirements if the Plan Administrator establishes the Participant does not have
a spouse, the Plan Administrator is not able to locate the Participant's spouse, the Participant is legally separated or has been abandoned (within the meaning of applicable state law) and the
Participant has a court order to that effect, or other circumstances exist under which the Secretary of the Treasury will excuse the spousal consent requirement. If the Participant's spouse is legally
incompetent to give consent, the spouse's legal guardian (even if the guardian is the Participant) may give consent. 

        6.06    WAIVER ELECTION—QPSA.    The Plan Administrator must provide a written explanation of the QPSA to
each married Participant ("QPSA notice"), within the following period which ends last: (1) the period beginning on the first day of the Plan Year in which the Participant attains age 32 and
ending on the last day of the Plan Year in which the Participant attains age 34; (2) a reasonable period after an Employee becomes a Participant; (3) a reasonable period after
Section 6.04 of the Plan becomes applicable to the Participant; or (4) a reasonable period after the Plan no longer satisfies the requirements for a fully subsidized benefit. A
"reasonable period" described in clauses (2), (3) and (4) is the period beginning one year before and ending one year after the applicable event. If the Participant separates from
Service before attaining age 35, clauses (1), (2), (3) and (4) do not apply and the Plan Administrator must provide the QPSA notice within the period beginning one year before and ending
one year after the Separation from Service. The QPSA notice must describe, in a manner consistent with Treasury regulations, the terms and conditions of the QPSA and of the waiver of the QPSA,
comparable to the QJSA notice required under Section 6.05. The Plan does not limit the number of times the Participant may revoke a waiver of the QPSA or make a new waiver during the election
period. The election period for waiver of the QPSA ends on the date of the Participant's death. 

        A
Participant's QPSA waiver election is not valid unless: (a) the Participant makes the waiver election after the Participant has received the QPSA notice and no earlier than the
first day of the Plan Year in which he/she attains age 35; and (b) the Participant's spouse (to whom the QPSA is payable) satisfies or is excused from the consent requirements as described in
Section 6.05, except the spouse need not consent to the form of benefit payable to the designated Beneficiary. The spouse's consent to the waiver of the QPSA is irrevocable, unless the
Participant revokes the waiver election. The spouse also may execute a blanket consent as described in Section 6.05. Irrespective of the time of election requirement described in
clause (a), if the Participant separates from Service prior to the first day of the Plan Year in which he/she attains age 35, the Plan Administrator will accept a waiver election as respects
the Participant's Account Balance attributable to his/her Service prior to his/her Separation from Service. Furthermore, if a Participant who has not separated from Service makes a valid waiver
election, except for the timing requirement of clause (a), the Plan Administrator will accept that election as valid, but only until the first day of the Plan Year in which the Participant
attains age 35. 

39

 

        6.07    DISTRIBUTIONS UNDER QUALIFIED DOMESTIC RELATIONS ORDERS (QDRO).    Notwithstanding any other provision of
this Plan, the Trustee, in accordance with the direction of the Plan Administrator, must comply with the provisions of a QDRO, as defined in Code §414(p), which is issued with
respect to the Plan. This Plan specifically permits distribution to an alternate payee under a QDRO at any time, irrespective of whether the Participant has attained his/her earliest retirement age
(as defined under Code §414(p)) under the Plan. A distribution to an alternate payee prior to the Participant's attainment of earliest retirement age is available only if:
(1) the QDRO specifies distribution at that time or permits an agreement between the Plan and the alternate payee to authorize an earlier distribution; and (2) if the present value of
the alternate payee's benefits under the Plan exceeds $5,000, and the QDRO requires, the alternate payee consents to any distribution occurring prior to the Participant's attainment of earliest
retirement age. Nothing in this Section 6.07 gives a Participant a right to receive distribution at a time the Plan otherwise does not permit nor does Section 6.07 authorize the
alternate payee to receive a form of payment the Plan does not permit. 

        The
Plan Administrator must establish reasonable procedures to determine the qualified status of a domestic relations order. Upon receiving a domestic relations order, the Plan
Administrator promptly will 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 Plan Administrator must determine the qualified status of the order and must notify the Participant and
each alternate payee, in writing, of the Plan Administrator's determination. The Plan Administrator must provide notice under this paragraph by mailing to the individual's address specified in the
domestic relations order, or in a manner consistent with DOL regulations. 

40

  

        If any portion of the Participant's Vested Account Balance is payable under the domestic relations order during the period the Plan Administrator is making its determination of the
qualified status of the domestic relations order, the Plan Administrator must maintain a separate accounting of the amounts payable. If the Plan Administrator determines the order is a QDRO within
18 months of the date amounts first are payable following receipt of the domestic relations order, the Plan Administrator will direct the Trustee to distribute the payable amounts in accordance
with the QDRO. If the Plan Administrator does not make its determination of the qualified status of the order within the 18-month determination period, the Plan Administrator will direct
the Trustee to distribute the payable amounts in the manner the Plan would distribute if the order did not exist and will apply the order prospectively if the Plan Administrator later determines the
order is a QDRO. 

        To
the extent it is not inconsistent with the provisions of the QDRO, the Plan Administrator under Section 9.08(B) may direct the Trustee to segregate the QDRO amount in a
segregated investment account. The Trustee will make any payments or distributions required under this Section 6.07 by separate benefit checks or other separate distribution to the alternate
payee(s). 

        6.08    DEFAULTED LOAN—TIMING OF OFFSET.    If a Participant or a Beneficiary defaults on a Plan loan, the
Plan Administrator will determine the timing of the reduction (offset) of the Participant's Vested Account Balance in accordance with this Section 6.08 and the Plan Administrator's loan policy.
If, under the loan policy a loan default also is a distributable event under the Plan, the Trustee, at the time of the loan default, will offset the Participant's Vested Account Balance by the lesser
of the amount in default (including accrued interest) or the Plan's security interest in that Vested Account Balance. If the loan is from a money purchase pension plan or from a target benefit plan
and the loan default is a distributable event under the loan policy, the Trustee will offset the Participant's Account Balance in the manner described above, only if the Participant has incurred a
Separation from Service or has attained Normal Retirement Age. If the loan is under a 401(k) arrangement, to the extent the loan is attributable to the Participant's deferral contributions Account,
qualified matching contributions Account, qualified nonelective contributions Account or safe harbor contributions Account, the Trustee will not offset the Participant's Vested Account Balance unless
the Participant has incurred a Separation from Service or unless the Participant has attained age 591/2. 

        6.09    HARDSHIP DISTRIBUTION.    For purposes of this Plan, unless the Employer in its Adoption Agreement
Section 6.01 elects otherwise, a hardship distribution is a distribution on account of one or more of the following immediate and heavy financial needs: (1) expenses for medical care
described in Code §213(d) incurred by the Participant, by the Participant's spouse, or by any of the Participant's dependents, or necessary to obtain such medical care;
(2) costs directly related to the purchase (excluding mortgage payments) of a principal residence of the Participant; (3) payment of post-secondary education tuition and
related educational fees (including room and board), for the next 12-month
period, for the Participant, for the Participant's spouse, or for any of the Participant's dependents (as defined in Code §152); (4) payments necessary to prevent the
eviction of the Participant from his/her principal residence or the foreclosure on the mortgage of the Participant's principal residence; or (5) any need the Revenue Service prescribes in a
revenue ruling, notice or other document of general applicability which satisfies the safe harbor definition of hardship under Treas. Reg. §1.401(k)-1(d)(2)(iv)(A). See
Section 14.11(A) if a hardship distribution is from a Participant's elective deferral Account in a 401(k) arrangement. The Employer in its Adoption Agreement Section 6.01 may elect to
apply Section 14.11(A) to all Plan hardship distributions. If the Plan permits a hardship distribution from more than one Account type, the Plan Administrator may determine any ordering of a
Participant's hardship distribution from the hardship distribution eligible Accounts. 

        6.10    DIRECT ROLLOVER OF ELIGIBLE ROLLOVER DISTRIBUTIONS.    

        (A)    Participant Election.    A Participant (including for this purpose, a former Employee) may elect, at the time
and in the manner prescribed by the Plan Administrator, to have any portion of 

41

 

his/her eligible rollover distribution from the Plan paid directly to an eligible retirement plan specified by the Participant in a direct rollover election. For purposes of this Section 6.10,
a Participant includes as to their respective interests, a Participant's surviving spouse and the Participant's spouse or former spouse who is an alternate payee under a QDRO. 

        (B)    Rollover and Withholding Notice.    At least 30 days and not more than 90 days prior to the
Trustee's distribution of an eligible rollover distribution, the Plan Administrator must provide a written notice (including a summary notice as permitted under applicable Treasury regulations)
explaining to the distributee the rollover option, the applicability of mandatory 20% federal withholding to any amount not directly rolled over, and the recipient's right to roll over within
60 days after the date of receipt of the distribution ("rollover notice"). If applicable, the rollover notice also must explain the availability of income averaging and the exclusion of net
unrealized appreciation. A recipient of an eligible rollover distribution (whether he/she elects a direct rollover or elects to receive the distribution), also may elect to receive distribution at any
administratively practicable time which is earlier than 30 days (but not less than 7 days if Section 6.04 applies) following receipt of the rollover notice. 

        (C)    Default rollover.    The Plan Administrator, in the case of a Participant who does not respond timely to the
notice described in Section 6.10(B), may make a direct rollover of the Participant's Account (as described in Revenue Ruling 2000-36 or in any successor guidance) in lieu of
distributing the Participant's Account. 

        (D)    Definitions.    The following definitions apply to this Section 6.10: 

        (1)  Eligible rollover distribution. An eligible rollover distribution is any distribution of all or any portion of the
balance to the credit of the Participant, except an eligible rollover distribution does not include: (a) any distribution which is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the Participant or the joint lives (or joint life expectancies) of the Participant and the Participant's designated
beneficiary, or for a specified period of ten years or more; (b) any Code §401(a)(9) required minimum distribution; (c) the portion of any distribution which is not
includible in gross income (determined without regard to the exclusion of net unrealized appreciation with respect to employer securities); (d) any hardship distribution made after
December 31, 1998, from a Participant's deferral contributions Account (except where the Participant also satisfies a non-hardship distribution event described in
Section 14.03(d)); and (e) any distribution which otherwise would be an eligible rollover distribution, but where the total distributions to the Participant during that calendar year are
reasonably expected to be less than $200. 

        (2)  Eligible retirement plan. An eligible retirement plan is an individual retirement account described in
Code §408(a), an individual retirement annuity described in Code §408(b), an annuity plan described in Code §403(a), or a qualified trust
described in Code §401(a), which accepts the Participant's or alternate payee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the
surviving spouse, an eligible retirement plan is either an individual retirement account or individual retirement annuity. 

        (3)  Direct rollover. A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. 

        6.11    TEFRA ELECTIONS.    Notwithstanding the provisions of Sections 6.01, 6.02 and 6.03, if the Participant
(or Beneficiary) signed a written distribution designation prior to January 1, 1984, ("TEFRA election") the Plan Administrator must direct the Trustee to distribute the Participant's Vested
Account Balance in accordance with that election, subject however, to the survivor annuity requirements, if applicable, of Sections 6.04, 6.05 and 6.06. This Section 6.11 does not apply
to a TEFRA election, and the Plan Administrator will not comply with that election, if any of the following 

42

 

applies: (1) the elected method of distribution would have disqualified the Plan under Code §401(a)(9) as in effect on December 31, 1983; (2) the Participant
did not have an Account Balance as of December 31, 1983; (3) the election does not specify the timing and form of the distribution and the death Beneficiaries (in order of priority);
(4) the substitution of a Beneficiary modifies the distribution payment period; or, (5) the Participant (or Beneficiary) modifies or revokes the election. In the event of a revocation,
the Trustee must distribute, no later than December 31 of the calendar year following the year of revocation, the amount which the Participant would have received under Section 6.02 if
the distribution designation had not been in effect or, if the Beneficiary revokes the distribution designation, the amount which the Beneficiary would have received under Section 6.02 if the
distribution designation had not been in effect. The Plan Administrator will apply this Section 6.11 to rollovers and transfers in accordance with Part J of the
Code §401(a)(9) Treasury regulations. 

 
 

ARTICLE VII
  EMPLOYER ADMINISTRATIVE PROVISIONS    
  

        7.01    INFORMATION TO PLAN ADMINISTRATOR.    The Employer must supply current information to the Plan Administrator
as to the name, date of birth, date of employment, Compensation, leaves of absence, Years of Service and date of Separation from Service of each Employee who is, or who will be eligible to become, a
Participant under the Plan, together with any other information which the Plan Administrator considers necessary to administer properly the Plan. The Employer's records as to the current information
the Employer furnishes to the Plan Administrator are conclusive as to all persons. 

        7.02    NO RESPONSIBILITY FOR OTHERS.    Except as required under ERISA, the Employer has no responsibility or
obligation under the Plan to Employees, Participants or Beneficiaries for any act (unless the Employer also serves in such capacities) required of the Plan Administrator, the Trustee, the Custodian,
or of any other service provider to the Plan. 

        7.03    INDEMNITY OF CERTAIN FIDUCIARIES.    The Employer will indemnify, defend and hold harmless the Plan
Administrator from and against any and all loss resulting from liability to which the Plan Administrator may be subjected by reason of any act or omission (except willful misconduct or gross
negligence) in its official capacities in the administration of this Trust or Plan or both, including attorneys' fees and all other expenses reasonably incurred in the Plan Administrator's defense, in
case the Employer fails to provide such defense. The indemnification provisions of this Section 7.03 do not relieve the Plan Administrator from any liability the Plan Administrator may have
under ERISA for breach of a fiduciary duty. Furthermore, the Plan Administrator and the Employer may execute a written agreement further delineating the indemnification agreement of this
Section 7.03, provided the agreement is consistent with and does not violate ERISA. The indemnification provisions of this Section 7.03 extend to any Trustee, third party administrator,
Custodian or other Plan service provider solely to the extent provided by a written agreement executed by such persons and the Employer. 

        7.04    EMPLOYER DIRECTION OF INVESTMENT.    The Employer has the right to direct the Trustee with respect to the
investment and re-investment of assets comprising the Trust Fund only if and to the extent the Trustee consents in writing to permit such direction. 

        7.05    EVIDENCE.    Anyone including the Employer, required to give data, statements or other information relevant
under the terms of the Plan ("evidence") may do so by certificate, affidavit, document or other form which the person to act in reliance may consider pertinent, reliable and genuine, and to have been
signed, made or presented by the proper party or parties. The Plan Administrator and the Trustee are protected fully in acting and relying upon any evidence described under the immediately preceding
sentence. 

43

 

        7.06    PLAN CONTRIBUTIONS.    The Employer is solely responsible to determine the proper amount of any Employer
contribution it makes to the Plan and for the timely deposit to the Trust of the Employer's Plan contributions. 

        7.07    EMPLOYER ACTION.    The Employer must take any action under the Plan in accordance with applicable Plan
provisions and with proper authority such that the action is valid and under applicable law and is binding upon the Employer. 

        7.08    FIDUCIARIES NOT INSURERS.    The Trustee, the Plan Administrator and the Employer in no way guarantee the
Trust Fund from loss or depreciation. The Employer does not guarantee the payment of any money which may be or becomes due to any person from the Trust Fund. The liability of the Employer, the Plan
Administrator and the Trustee to make any payment from the Trust Fund at any time and all times is limited to the then available assets of the Trust. 

        7.09    PLAN TERMS BINDING.    The Plan is binding upon the Employer, Trustee, Plan Administrator, Custodian (and all
other service providers to the Plan), upon Participants, Beneficiaries and all other persons entitled to benefits, and upon the successors and assigns of the foregoing persons. 

        7.10    WORD USAGE.    Words used in the masculine also apply to the feminine where applicable, and wherever the
context of the Plan dictates, the plural includes the singular and the singular includes the plural. Titles of Plan and Adoption Agreement sections are for reference only. 

        7.11    STATE LAW.    The law of the state of the Employer's principal place of business will determine all questions
arising with respect to the provisions of the Plan, except to the extent superseded by ERISA or other federal law. The Employer in an Addendum to its Adoption Agreement and subject to applicable law,
may elect to apply the law of another state. 

        7.12    PROTOTYPE PLAN STATUS.    If the Plan fails initially to qualify or to maintain qualification or if the
Employer makes any amendment or modification to a provision of the Plan (other than a proper completion of an elective provision under the Adoption Agreement or the attachment of an Addendum
authorized by the Plan or by the Adoption Agreement), the Employer no longer may participate under this Prototype Plan. The Employer also may not participate (or continue to participate) in this
Prototype Plan if the Trustee or Custodian does not have the written consent of the Prototype Plan Sponsor required under Section 1.33 to serve in the capacity of Trustee or Custodian. If the
Employer is
not entitled to participate under this Prototype Plan, the Plan is an individually-designed plan and the reliance procedures specified in the applicable Adoption Agreement no longer apply. 

        7.13    EMPLOYMENT NOT GUARANTEED.    Nothing contained in this Plan, or with respect to the establishment of the
Trust, or any modification or any amendment to the Plan or Trust, or in the creation of any Account, or with respect to the payment of any benefit, gives any Employee, Participant or any Beneficiary
any right to employment or to continued employment by the Employer, or any legal or equitable right against the Employer, the Trustee, the Plan Administrator or any employee or agent thereof, except
as expressly provided by the Plan, the Trust, ERISA or other applicable law. 

 
 

ARTICLE VIII
  PARTICIPANT ADMINISTRATIVE PROVISIONS    
  

        8.01    BENEFICIARY DESIGNATION.    A Participant from time to time may designate, in writing, any person(s)
(including a trust or other entity), contingently or successively, to whom the Trustee will pay the Participant's Vested Account Balance (including any life insurance proceeds payable to the
Participant's Account) in the event of death. A Participant also may designate the form and method of payment of his/her Account. The Plan Administrator will prescribe the form for the Participant's
written designation of Beneficiary and, upon the Participant's filing the form with the Plan 

44

 

Administrator, the form effectively revokes all designations filed prior to that date by the same Participant. A divorce decree, or a decree of legal separation, revokes the Participant's
designation, if any, of his/her spouse as his/her Beneficiary under the Plan unless: (1) the decree or a QDRO provides otherwise; or (2) the Employer provides otherwise in an Addendum to
its Adoption Agreement. The foregoing revocation provision (if applicable) applies only with respect to a Participant whose divorce or legal separation becomes effective on or following the date the
Employer executes this Plan, unless the Employer in its Adoption Agreement specifies a different effective date. 

        (A)    Coordination with Survivor Annuity Requirements.    If Section 6.04 applies to the Participant, this
Section 8.01 does not impose any special spousal consent requirements on the Participant's Beneficiary designation unless the Participant waives the QJSA or QPSA benefit. If the Participant
waives the QJSA or QPSA benefit without spousal consent to the Participant's Beneficiary designation: (1) any waiver of the QJSA or of the QPSA is not valid; and (2) if the Participant
dies prior to his/her annuity starting date, the Participant's Beneficiary designation will apply only to the portion of the death benefit which is not payable as a QPSA. Regarding clause (2),
if the Participant's surviving spouse is a primary Beneficiary under the Participant's Beneficiary designation, the Trustee will satisfy the spouse's interest in the Participant's death benefit first
from the portion which is payable as a QPSA. 

        (B)    Profit Sharing Plan Exception.    If the Plan is a profit sharing plan, the Beneficiary designation of a
married Exempt Participant, as described in Section 6.04(H), is not valid unless the Participant's spouse consents (in a manner described in Section 6.05) to the Beneficiary designation.
The spousal consent requirement in this Section 8.01(B) does not apply if the Participant's spouse is the Participant's sole primary Beneficiary, or if the Exempt Participant and his/her spouse
are not married throughout the one-year period ending on the date of the Participant's death. 

        (C)    Incapacity of Beneficiary.    If, in the opinion of the Plan Administrator, a Beneficiary is not able to care
for his/her affairs because of a mental condition, physical condition or by reason of age, the Plan Administrator will apply the provisions of Section 10.09. 

        8.02    NO BENEFICIARY DESIGNATION/DEATH OF BENEFICIARY.    If a Participant fails to name a Beneficiary in accordance
with Section 8.01, or if the Beneficiary named by a Participant predeceases the Participant, then the Trustee will pay the Participant's Vested Account Balance in accordance with
Section 6.03 in the following order of priority (unless the Employer specifies a different order of priority in an Addendum to its Adoption Agreement), to: 

        (a)  The
Participant's surviving spouse (without regard to the one-year marriage rule of Sections 6.04(B) and 8.01(B); and if no surviving spouse to 

        (b)  The
Participant's children (including adopted children), in equal shares by right of representation (one share for each surviving child and one share for each child who
predeceases the Participant with living descendents); and if none to 

        (c)  The
Participant's surviving parents, in equal shares; and if none to 

        (d)  The
Participant's estate. 

        If
the Beneficiary survives the Participant, but dies prior to distribution of the Participant's entire Vested Account Balance, the Trustee will pay the remaining Vested Account Balance
to the Beneficiary's estate unless: (1) the Participant's Beneficiary designation provides otherwise; (2) the Beneficiary has properly designated a beneficiary; or (3) the
Employer provides otherwise in an Addendum to its Adoption Agreement. A Beneficiary only may designate a beneficiary for the Participant's Account Balance remaining at the Beneficiary's death, if the
Participant has not previously designated a successive contingent beneficiary and the Beneficiary's designation otherwise complies with the Plan terms. If the Plan is a profit sharing plan, and the
Plan includes Exempt Participants, the 

45

 

Employer may not specify a different order of priority in an Addendum unless the Participant's surviving spouse will be the sole primary Beneficiary in the different order of priority. The Plan
Administrator will direct the Trustee as to the method and to whom the Trustee will make payment under this Section 8.02. 

        8.03    ASSIGNMENT OR ALIENATION.    Except as provided in Code §414(p) relating to QDROs and in
Code §401(a)(13) relating to certain voluntary, revocable assignments, judgments and settlements, neither a Participant nor a Beneficiary may anticipate, assign or alienate (either
at law or in equity) any benefit provided under the Plan, and the Trustee will not recognize any such anticipation, assignment or alienation. Furthermore, except as provided by
Code §401(a)(13) or other applicable law, a benefit under the Plan is not subject to attachment, garnishment, levy, execution or other legal or equitable process. 

        8.04    INFORMATION AVAILABLE.    Any Participant or Beneficiary may examine copies of the Plan description, latest
annual report, any bargaining agreement, this Plan and Trust, and any contract or any other instrument which relates to the establishment or administration of the Plan or Trust. The Plan Administrator
will maintain all of the items listed in this Section 8.04 in its office, or in such other place or places as it may designate from time to time in order to comply with the regulations issued
under ERISA, for examination during reasonable business hours. Upon the written request of a Participant or a Beneficiary, the Plan Administrator must furnish the Participant or Beneficiary with a
copy of any item listed in this Section 8.04. The Plan Administrator may make a reasonable copying charge to the requesting person. 

        8.05    CLAIMS PROCEDURE FOR DENIAL OF BENEFITS.    A Participant or a Beneficiary may file with the Plan
Administrator a written claim for benefits, if the Participant or the Beneficiary disputes the Plan Administrator's determination regarding the Participant's or Beneficiary's Plan benefit. However,
the Plan will distribute only such Plan benefits to Participants or Beneficiaries as the Plan Administrator in its discretion determines a Participant or Beneficiary is entitled to. The Plan
Administrator will maintain a separate written document as part of (or which accompanies) the Plan's summary plan description explaining the Plan's claims procedure. This Section 8.05
specifically incorporates the written claims procedure as from time to time published by the Plan Administrator as a part of the Plan. If the Plan Administrator pursuant to the Plan's written claims
procedure makes a final written determination denying a Participant's or Beneficiary's benefit claim, the Participant or Beneficiary to preserve the claim must file an action with respect to the
denied claim not later than 180 days following the date of the Plan Administrator's final determination. 

        8.06    PARTICIPANT DIRECTION OF INVESTMENT.    A Participant's direction of the investment of his/her Account is
subject to the provisions of this Section 8.06. For purposes of this Section 8.06, a Participant shall also include a Beneficiary where the Beneficiary has succeeded to the Participant's
Account and the Plan affords the Beneficiary the same self-direction or loan rights as a Participant. 

        (A)    Trustee Authorization and Procedures.    A Participant has the right to direct the Trustee with respect to the
investment or re-investment of the assets comprising the Participant's individual Account only if the Trustee consents in writing to permit such direction. If the Trustee consents to
Participant direction of investment, the Trustee only will accept direction from each Participant on a written direction of
investment form the Plan Administrator provides for this purpose. The Trustee, or with the Trustee's consent, the Plan Administrator, may establish written procedures relating to Participant direction
of investment under this Section 8.06, including procedures or conditions for electronic transfers or for changes in investments by Participants. The Plan Administrator will maintain, or direct
the Trustee to maintain, an appropriate individual investment Account to the extent a Participant's Account is subject to Participant self-direction. 

46

 

        (B)    ERISA §404(c).    No Plan fiduciary (including the Employer and Trustee) is liable for any loss or
for any breach resulting from a Participant's direction of the investment of any part of his/her directed Account to the extent the Participant's exercise of his/her right to direct the investment of
his/her Account satisfies the requirements of ERISA §404(c). 

        (C)    Participant Loans.    The Plan Administrator, to the extent provided in a written loan policy adopted under
Section 9.04, will treat a Plan loan made to a Participant as a Participant direction of investment under this Section 8.06, even if the Plan otherwise does not permit a Participant to
direct his/her Account investments. Where a loan is treated as a directed investment, the borrowing Participant's Account alone shares in any interest paid on the loan, and it alone bears any expense
or loss it incurs in connection with the loan. The Trustee may retain any principal or interest paid on the borrowing Participant's loan in a segregated Account (as described in
Section 9.08(B)) on behalf of the borrowing Participant until the Trustee (or the Named Fiduciary, in the case of a nondiscretionary Trustee) deems it appropriate to add the loan payments to
the Participant's Account under the Plan. 

        (D)    Collectibles.    If the Trustee consents to Participant direction of investment of his/her Account, any
post-December 31, 1981, investment by a Participant's directed Account in collectibles (as defined by Code §408(m)) is a deemed distribution to the Participant
for Federal income tax purposes. 

 
 

ARTICLE IX
  PLAN ADMINISTRATOR    
  

        9.01    COMPENSATION AND EXPENSES.    The Plan Administrator (and any individuals serving as Plan Administrator) will
serve without compensation for services as such, but the Employer will pay all expenses of the Plan Administrator, except to the extent the Trustee properly pays for such expenses, pursuant to
Article X. 

        9.02    RESIGNATION AND REMOVAL.    If the Employer appoints one or more persons to serve as Plan Administrator, such
person(s) shall serve until they resign by written notice to the Employer or until the Employer removes them by written notice. In case of a vacancy in the position of Plan Administrator, the Employer
will exercise any and all of the powers, authority, duties and discretion conferred upon the Plan Administrator pending the filling of the vacancy. 

        9.03    GENERAL POWERS AND DUTIES.    The Plan Administrator has the following general powers and duties which are in
addition to those the Plan otherwise accords to the Plan Administrator: 

        (a)  To
determine the rights of eligibility of an Employee to participate in the Plan, all factual questions that arise in the course of administering the Plan, the value of
a Participant's Account Balance (based on the value of the Trust assets, as determined by the Trustee) and the Vested percentage of each Participant's Account Balance; 

        (b)  To
adopt rules of procedure and regulations necessary for the proper and efficient administration of the Plan, provided the rules are not inconsistent with the terms of
the Plan, the Code, ERISA or other applicable law; 

        (c)  To
construe and enforce the terms of the Plan and the rules and regulations the Plan Administrator adopts, including interpretation of the basic plan document, the
Adoption Agreement and any document related to the Plan's operation; 

        (d)  To
direct the Trustee regarding the crediting and distribution of the Trust Fund and to direct the Trustee to conduct interim valuations under Section 10.15; 

        (e)  To
review and render decisions regarding a claim for (or denial of a claim for) a benefit under the Plan; 

47

 

        (f)    To
furnish the Employer with information which the Employer may require for tax or other purposes; 

        (g)  To
engage the service of agents whom the Plan Administrator may deem advisable to assist it with the performance of its duties; 

        (h)  To
engage the services of an Investment Manager or Managers (as defined in ERISA §3(38)), each of whom will have full power and authority to manage, acquire
or dispose (or direct the Trustee with respect to acquisition or disposition) of any Plan asset under such Manager's control; 

        (i)    To
make any other determinations and undertake any other actions the Plan Administrator believes are necessary or appropriate for the administration of the Plan; and 

        (j)    To
establish and maintain a funding standard account and to make credits and charges to the account to the extent required by and in accordance with the provisions of
the Code. 

        The
Plan Administrator must exercise all of its powers, duties and discretion under the Plan in a uniform and nondiscriminatory manner. The Plan Administrator shall have total and
complete discretion to interpret and construe the Plan and to determine all questions arising in the administration, interpretation and application of the Plan. Any determination the Plan
Administrator makes under the Plan is final and binding upon any affected person. 

        9.04    PLAN LOANS.    The Plan Administrator may, in its sole discretion, in accordance with Section 10.03(E)
establish, amend or terminate from time to time, a nondiscriminatory policy which the Trustee must observe in making Plan loans, if any, to Participants and to Beneficiaries. If the Plan Administrator
adopts a loan policy, the loan policy must be a written document and must include: (1) the identity of the person or positions authorized to administer the participant loan program;
(2) the procedure for applying for a loan; (3) the criteria for approving or denying a loan; (4) the limitations, if any, on the types and amounts of loans available;
(5) the procedure for determining a reasonable rate of interest; (6) the types of collateral which may secure the loan; and (7) the events constituting default and the steps the
Plan will take to preserve Plan assets in the event of default. A loan policy the Plan Administrator adopts under this Section 9.04 is part of the Plan, except that the Plan Administrator may
amend or terminate the policy without regard to Section 13.02. 

        9.05    FUNDING POLICY.    The Plan Administrator will review, not less often than annually, all pertinent Employee
information and Plan data in order to establish the funding policy of the Plan and to determine the appropriate methods of carrying out the Plan's objectives. The Plan Administrator must communicate
periodically, as it deems appropriate, to the Trustee and to any Plan Investment Manager the Plan's short-term and long-term financial needs for the coordination of the Plan's
investment policy with Plan financial requirements. 

        9.06    INDIVIDUAL ACCOUNTS.    The Plan Administrator will maintain, or direct the Trustee to maintain, a separate
Account, or multiple Accounts, in the name of each Participant to reflect the Participant's Account Balance under the Plan. 

        (A)    Forfeitures.    If a Participant re-enters the Plan subsequent to his/her having a Forfeiture Break
in Service, the Plan Administrator, or the Trustee, must maintain a separate Account for the Participant's pre-Forfeiture Break in Service Account Balance and a separate Account for his
post-Forfeiture Break in Service Account Balance, unless the Participant's entire Account Balance under the Plan is 100% Vested. 

        If
the Plan is subject to Participant direction of investment under Section 8.06, the Plan Administrator may maintain, or may direct the Trustee to maintain, a separate temporary
forfeiture Account in the name of the Plan to account for Participant forfeitures which occur during the Plan Year. The Trustee will direct the investment of any separate temporary forfeiture Account.
As of each 

48

 

Accounting Date, or interim valuation date, if applicable, the Plan Administrator will allocate the net income, gain or loss from the temporary forfeiture Account, if any, to the Accounts of the
Participants in accordance with the provisions of Section 9.08. 

        (B)    Net Income, Gain or Loss.    The Plan Administrator will make its allocations of net income, gain or loss or
request the Trustee to make its allocations, to the Accounts of the Participants in accordance with the provisions of Section 9.08. The Plan Administrator may direct the Trustee under
Section 9.08(B) to maintain a temporary segregated investment Account in the name of a Participant to prevent a distortion of income, gain or loss allocations. The Plan Administrator must
maintain records of its activities. 

        9.07    VALUE OF PARTICIPANT'S ACCOUNT BALANCE.    If any or all Plan investment accounts are pooled, each
Participant's Account has an undivided interest in the assets comprising the pooled account. In a pooled account, the value of each Participant's Account Balance consists of that proportion of the net
worth (at fair market value) of the Trust Fund which the net credit balance in his/her Account (exclusive of the cash value of incidental benefit insurance contracts) bears to the total net credit
balance in the Accounts (exclusive of the cash value of the incidental benefit insurance contracts) of all Participants plus the cash surrender value of any incidental benefit insurance contracts held
by the Trustee on the Participant's life. If any or all Plan investment accounts are Participant directed, the directing Participant's Account Balance is comprised of the assets held within the
Account and the value of the Account is the fair market value of such assets. For purposes of a distribution under the Plan, the value of a Participant's Account Balance is its value as of the
valuation date immediately preceding the date of the distribution. 

        9.08    ALLOCATION AND DISTRIBUTION OF NET INCOME, GAIN OR LOSS.    This Section 9.08 applies solely to the
allocation of net income, gain or loss of the Trust Fund. The Plan Administrator will allocate Employer contributions and Participant forfeitures, if any, in accordance with Article III. 

        A
"valuation date" under this Plan is each: (1) Accounting Date; (2) valuation date the Employer elects in its Adoption Agreement Section 10.15; or
(3) valuation date the Plan Administrator establishes under
Section 9.03. The Employer in its Adoption Agreement Section 10.15 or the Plan Administrator may elect alternative valuation dates for the different Account types which the Plan
Administrator maintains under the Plan. As of each valuation date, the Plan Administrator must adjust Accounts to reflect net income, gain or loss since the last valuation date. The valuation period
is the period beginning on the day after the last valuation date and ending on the current valuation date. 

        The
Plan Administrator will allocate net income, gain or loss to the Participant Accounts in accordance with the daily valuation method, balance forward method, weighted average method,
or other method the Employer elects under its Adoption Agreement. The Employer in its Adoption Agreement may elect alternative methods under which the Plan Administrator will allocate the net income,
gain or loss to the different Account types which the Plan Administrator maintains under the Plan. If the Employer in its Adoption Agreement elects to apply a weighted average allocation method, the
Plan Administrator will treat a weighted portion of the applicable contributions as if includible in the Participant's Account as of the beginning of the valuation period. The weighted portion is a
fraction, the numerator of which is the number of months in the valuation period, excluding each month in the valuation period which begins prior to the contribution date of the applicable
contributions, and the denominator of which is the number of months in the valuation period. The Employer in its Adoption Agreement may elect to substitute a weighting period other than months for
purposes of this weighted average allocation. If the Employer in its Adoption Agreement elects to apply the daily valuation method, the Plan Administrator will allocate the net income, gain or loss on
each day of the Plan Year for which Plan assets are valued on an established market and the Trustee is conducting business. If the Employer in its Adoption Agreement elects to apply the balance
forward 

49

 

method, the Plan Administrator first will adjust the Participant Accounts, as those Accounts stood at the beginning of the current valuation period, by reducing the Accounts for any forfeitures
arising under the Plan, for amounts charged during the valuation period to the Accounts in accordance with Section 9.10 (relating to distributions and to loan disbursement payments) and
Section 11.01 (relating to insurance premiums), and for the cash value of incidental benefit insurance contracts. The Plan Administrator then, subject to the restoration allocation requirements
of the Plan, will allocate the net income, gain or loss pro rata to the adjusted Participant Accounts. The allocable net income, gain or loss is the net income (or net loss), including the increase or
decrease in the fair market value of assets, since the last valuation date. 

        (A)    Trust Fund (Pooled) Investment Accounts.    A pooled investment account is an Account which is not a segregated
investment Account or an individual investment Account. 

        (B)    Segregated Investment Accounts.    A segregated investment Account receives all income it earns and bears all
expense or loss it incurs. Pursuant to the Plan Administrator's direction, the Trustee may establish for a Participant a segregated investment Account to prevent a distortion of Plan income, gain or
loss allocations or for such other purposes as the Plan Administrator may direct. The Trustee will invest the assets of a segregated investment Account consistent with such purposes. As of each
valuation date, the Plan Administrator must reduce a segregated Account for any forfeiture arising under Section 5.09 after the Plan Administrator has made all other allocations, changes or
adjustments to the Account for the valuation period. 

        (C)    Individual (Directed) Investment Accounts.    An individual investment Account is an Account which is subject
to Participant or Beneficiary self-direction under Section 8.06. An individual investment Account receives all income it earns and bears all expense or loss it incurs. As of each
valuation date, the Plan Administrator must reduce an individual Account for any forfeiture arising from Section 5.09 after the Plan Administrator has made all other allocations, changes or
adjustment to the Account for the valuation period. 

        (D)    Code §415 Excess Amounts.    An Excess Amount or suspense account described in Part 2
of Article III does not share in the allocation of net income, gain or loss described in this Section 9.08. 

        (E)    Interest Adjustment.    Any distribution (other than a distribution from a segregated or individual Account)
made to a Participant or Beneficiary more than 90 days after the most recent valuation date may include interest on the amount of the distribution as an expense of the Trust Fund. The interest,
if any, accrues from such valuation date to the date of the distribution at the rate the Employer specifies in its Adoption Agreement. 

        (F)    Contributions Prior to Accrual.    If the Employer in its Adoption Agreement elects to impose one or more
allocation conditions under Section 3.06 and the Employer contributes to the Plan amounts which at the time of the contribution have not accrued under the Plan terms ("pre-accrual
contributions"), the Trustee will hold the pre-accrual contributions in the Trust and will invest such contributions as the Trustee determines, pending accrual and allocation to
Participant Accounts. When the Plan Administrator allocates to Participants who have satisfied the Plan's allocation conditions the Employer's pre-accrual contributions, the Plan
Administrator also will allocate the net income, gain or loss thereon pro rata in relation to each Participant's share of the pre-accrual contribution. 

        9.09    INDIVIDUAL STATEMENT.    As soon as practicable after the Accounting Date of each Plan Year, but within the
time prescribed by ERISA and the regulations under ERISA, the Plan Administrator will deliver to each Participant (and to each Beneficiary) a statement reflecting the condition of his/her Account
Balance in the Trust as of that date and such other information ERISA requires be furnished the Participant or the Beneficiary. No Participant, except the Plan Administrator, has the right to inspect
the records reflecting the Account of any other Participant. 

50

 

        9.10    ACCOUNT CHARGED.    The Plan Administrator will charge a Participant's Account for all distributions made from
that Account to the Participant, to his/her Beneficiary or to an alternate payee, including a disbursement payment for a Participant loan. The Plan Administrator, except as prohibited by the Code or
ERISA, also will charge a Participant's Account for any reasonable administrative expenses incurred by the Plan directly related to that Account. 

        9.11    LOST PARTICIPANTS.    If the Plan Administrator is unable to locate any Participant or Beneficiary whose
Account becomes distributable under Article VI or under Section 13.06 (a "lost Participant"), the Plan Administrator will apply the provisions of this Section 9.11. 

        (A)    Attempt to Locate.    The Plan Administrator will use one or more of the following methods to attempt to locate
a lost Participant: (1) provide a distribution notice to the lost Participant at his/her last known address by certified or registered mail; (2) use of the IRS letter forwarding program
under Rev. Proc. 94-22; (3) use of a commercial locator service, the internet or other general search method; or (4) use of the Social Security Administration search program. 

        (B)    Failure to Locate.    If a lost Participant remains unlocated for 6 months following the date of the
Plan Administrator first attempts to locate the lost Participant using one or more of the methods described in Section 9.11(A), the Plan Administrator may forfeit the lost Participant's
Account. If the Plan Administrator will forfeit the lost Participant's Account, the forfeiture occurs at the end of the above-described 6 month period and the Plan Administrator will allocate
the forfeiture in accordance with Section 3.05. If a lost Participant whose Account was forfeited thereafter at any time but before the Plan has been terminated makes a claim for his/her
forfeited Account, the Plan Administrator will restore the forfeited Account to the same dollar amount as the amount forfeited, unadjusted for net income, gains or losses occurring subsequent to the
forfeiture. The Plan Administrator will make the restoration in the Plan Year in which the lost Participant makes the claim, first from the amount, if any, of Participant forfeitures the Plan
Administrator otherwise would allocate for the Plan Year, then from the amount, if any, of Trust net income or gain for the Plan Year and last from the amount or additional amount the Employer
contributes to the Plan for the Plan Year. The Plan Administrator will distribute the restored Account to the lost Participant not later than 60 days after the close of the Plan Year in which
the Plan Administrator restores the forfeited Account. The Plan Administrator under this Section 9.11(B) will forfeit the entire Account of the lost Participant, including deferral
contributions and Participant contributions. 

        (C)    Nonexclusivity and Uniformity.    The provisions of Section 9.11 are intended to provide permissible but
not exclusive means for the Plan Administrator to administer the Accounts of lost Participants. The Plan Administrator may utilize any other reasonable method to locate lost Participants and to
administer the Accounts of lost Participants, including the default rollover under Section 6.10(C) and such other methods as the Revenue Service or the U.S. Department of Labor
("DOL") may in the future specify. The Plan Administrator will apply Section 9.11 in a reasonable, uniform and nondiscriminatory manner, but may in determining a specific course
of action as to a particular Account, reasonably take into account differing circumstances such as the amount of a lost Participant's Account, the expense in attempting to locate a lost Participant,
the Plan Administrator's ability to establish and the expense of establishing a rollover IRA, and other factors. The Plan Administrator may charge to the Account of a lost Participant the reasonable
expenses incurred under this Section 9.11 and which are associated with the lost Participant's Account. 

        9.12    PLAN CORRECTION.    The Plan Administrator in conjunction with the Employer may undertake such correction of
Plan errors as the Plan Administrator deems necessary, including correction to preserve tax qualification of the Plan under Code §401(a) or to correct a fiduciary breach under
ERISA. Without limiting the Plan Administrator's authority under the prior sentence, the Plan Administrator,
as it determines to be reasonable and appropriate, may undertake correction of Plan document, operational, demographic and employer eligibility failures under a method described in the 

51

 

Plan or under the Employee Plans Compliance Resolution System ("EPCRS") or any successor program to EPCRS. The Plan Administrator, as it determines to be reasonable and appropriate, also may
undertake or assist the appropriate fiduciary or plan official in undertaking correction of a fiduciary breach, including correction under the Voluntary Fiduciary Correction Program ("VFC") or any
successor program to VFC. If the Plan includes a 401(k) arrangement, the Plan Administrator to correct an operational error may require the Trustee to distribute from the Plan elective deferrals or
vested matching contributions, including earnings, where such amounts result from an operational error other than a failure of Code §415, Code §402(g), a failure
of the ADP or ACP tests, or a failure of the multiple use limitation. 

        9.13    NO RESPONSIBILITY FOR OTHERS.    Except as required under ERISA, the Plan Administrator has no responsibility
or obligation under the Plan to Participants or Beneficiaries for any act (unless the Plan Administrator also serves in such capacities) required of the Employer, the Trustee, the Custodian or of any
other service provider to the Plan. The Plan Administrator is not responsible to collect any required plan contribution or to determine the correctness or deductibility or any Employer contribution.
The Plan Administrator in administering the Plan is entitled to, but is not required to rely upon, information which a Participant, Beneficiary, Trustee, Custodian, the Employer, a Plan service
provider or representatives thereof provide to the Plan Administrator. 

        9.14    NOTICE, DESIGNATION, ELECTION, CONSENT AND WAIVER.    All notices under the Plan and all Participant or
Beneficiary designations, elections, consents or waivers must be in writing and made in a form the Plan Administrator specifies or otherwise approves. To the extent permitted by Treasury regulations
or other applicable guidance, any Plan notice, election, consent or waiver may be transmitted electronically. Any person entitled to notice under the Plan may waive the notice or shorten the notice
period except as otherwise required by the Code or ERISA. 

52

  

 
 

ARTICLE X
  TRUSTEE AND CUSTODIAN, POWERS AND DUTIES    
  

        10.01    ACCEPTANCE.    The Trustee accepts the Trust created under the Plan and agrees to perform the obligations
imposed. The Trustee must provide bond for the faithful performance of its duties under the Trust to the extent required by ERISA. 

        10.02    RECEIPT OF CONTRIBUTIONS.    The Trustee is accountable to the Employer for the Plan contributions made by
the Employer, but the Trustee does not have any duty to ensure that the contributions received comply with the provisions of the Plan. The Trustee is not obliged to collect any contributions from the
Employer, nor is the Trustee obliged to ensure that funds deposited with it are deposited according to the provisions of the Plan. 

        10.03    INVESTMENT POWERS.    

        (A)    Discretionary Trustee Designation.    If the Employer, in its Adoption Agreement, designates the Trustee to
administer the Trust as a discretionary Trustee, then the Trustee has full discretion and authority with regard to the investment of the Trust Fund, except with respect to a Plan asset under the
control or the direction of a properly appointed Investment Manager or with respect to a Plan asset properly subject to Employer, or to Participant direction of investment. The Trustee must coordinate
its investment policy with Plan financial needs as communicated to it by the Plan Administrator. The Trustee is authorized and empowered, but not by way of limitation, with the following powers,
rights and duties: 

        (a)  To
invest consistent with and subject to applicable law any part or all of the Trust Fund in any common or preferred stocks, open-end or
closed-end mutual funds (including proprietary funds), put and call options traded on a national exchange, United States retirement plan bonds, corporate bonds, debentures, convertible
debentures, commercial paper, U.S. Treasury bills, U.S. Treasury notes and other direct or indirect obligations of the United States Government or its agencies, improved or unimproved real estate
situated in the United States, limited partnerships, insurance contracts of any type, mortgages, notes or other property of any kind, real or personal, to buy or sell options on
common stock on a nationally recognized exchange with or without holding the underlying common stock, to open and to maintain margin accounts, to engage in short sales, to buy and sell commodities,
commodity options and contracts for the future delivery of commodities, and to make any other investments the Trustee deems appropriate, as a prudent person would do under like circumstances with due
regard for the purposes of this Plan. Any investment made or retained by the Trustee in good faith is proper but must be of a kind constituting a diversification considered by law suitable for trust
investments. 

        (b)  To
retain in cash so much of the Trust Fund as it may deem advisable to satisfy liquidity needs of the Plan and to deposit any cash held in the Trust Fund in a bank
account at reasonable interest. 

        (c)  To
invest, if the Trustee is a bank or similar financial institution supervised by the United States or by a state, in any type of deposit of the Trustee (or of a bank
related to the Trustee within the meaning of Code §414(b)) at a reasonable rate of interest or in a common trust fund, as described in Code §584, or in a collective investment
fund, the provisions of which govern the investment of such assets and which the Plan incorporates by this reference, which the Trustee (or its affiliate, as defined in Code §1504)
maintains exclusively for the collective investment of money contributed by the bank (or the affiliate) in its capacity as trustee and which conforms to the rules of the Comptroller of the Currency. 

        (d)  To
manage, sell, contract to sell, grant options to purchase, convey, exchange, transfer, abandon, improve, repair, insure, lease for any term even though commencing in
the future or 

53

 

extending beyond the term of the Trust, and otherwise deal with all property, real or personal, in such manner, for such considerations and on such terms and conditions as the Trustee decides. 

        (e)  To
credit and distribute the Trust Fund as directed by the Plan Administrator. The Trustee is not obliged to inquire as to whether any payee or distributee is entitled
to any payment or whether the distribution is proper or within the terms of the Plan, or as to the manner of making any payment or distribution. The Trustee is accountable only to the Plan
Administrator for any payment or distribution made by it in good faith on the order or direction of the Plan Administrator. 

        (f)    To
borrow money, to assume indebtedness, extend mortgages and encumber by mortgage or pledge. 

        (g)  To
compromise, contest, arbitrate or abandon claims and demands, in the Trustee's discretion. 

        (h)  To
have with respect to the Trust all of the rights of an individual owner, including the power to exercise any and all voting rights associated with Trust assets, to
give proxies, to participate in any
voting trusts, mergers, consolidations or liquidations, to tender shares and to exercise or sell stock subscriptions or conversion rights. 

        (i)    To
lease for oil, gas and other mineral purposes and to create mineral severances by grant or reservation; to pool or unitize interests in oil, gas and other minerals;
and to enter into operating agreements and to execute division and transfer orders. 

        (j)    To
hold any securities or other property in the name of the Trustee or its nominee, with depositories or agent depositories or in another form as it may deem best, with
or without disclosing the trust relationship. 

        (k)  To
perform any and all other acts in its judgment necessary or appropriate for the proper and advantageous management, investment and distribution of the Trust. 

        (l)    To
retain any funds or property subject to any dispute without liability for the payment of interest, and to decline to make payment or delivery of the funds or property
until a court of competent jurisdiction makes final adjudication. 

        (m)  To
file all information and tax returns required of the Trustee. 

        (n)  To
furnish to the Employer and to the Plan Administrator an annual statement of account showing the condition of the Trust Fund and all investments, receipts,
disbursements and other transactions effected by the Trustee during the Plan Year covered by the statement and also stating the assets of the Trust held at the end of the Plan Year, which accounts are
conclusive on all persons, including the Employer and the Plan Administrator, except as to any act or transaction concerning which the Employer of the Plan Administrator files with the Trustee written
exceptions or objections within 90 days after the receipt of the accounts or for which ERISA authorizes a longer period within which to object. 

        (o)  To
begin, maintain or defend any litigation necessary in connection with the administration of the Plan, except the Trustee is not obliged nor required to do so unless
indemnified to its satisfaction. 

        (B)    Nondiscretionary Trustee Designation/Appointment of Custodian.    If the Employer, in its Adoption Agreement,
designates the Trustee to administer the Trust as a nondiscretionary Trustee, then the Trustee will not have any discretion or authority with regard to the investment of the Trust Fund, but must act
solely as a directed trustee of the funds contributed to it. A nondiscretionary Trustee, as directed trustee of the funds held by it under the Plan, is authorized and empowered, by way of limitation,
with the following powers, rights and duties, each of which the nondiscretionary Trustee 

54

 

exercises solely as directed trustee in accordance with the written direction of the Named Fiduciary (except to the extent a Plan asset is subject to the control and the management of a properly
appointed Investment Manager or subject to Employer or Participant direction of investment): 

        (a)  To
invest any part or all of the Trust Fund in any common or preferred stocks, open-end or closed-end mutual funds (including proprietary funds),
put and call options traded on a national exchange, United States retirement plan bonds, corporate bonds, debentures, convertible debentures, commercial paper, U.S. Treasury bills, U.S. Treasury notes
and other direct or indirect obligations of the United States Government or its agencies, improved or unimproved real estate situated in the United States, limited partnerships, insurance contracts of
any type, mortgages, notes or other property of any kind, real or personal, to buy or sell options on common stock on a nationally recognized options exchange with or without holding the underlying
common stock, to open and to maintain margin accounts, to engage in short sales, to buy and sell commodities, commodity options and contracts for the future delivery of commodities, and to make any
other investments the Named Fiduciary deems appropriate. 

        (b)  To
retain in cash so much of the Trust Fund as the Named Fiduciary may direct in writing to satisfy liquidity needs of the Plan and to deposit any cash held in the Trust
Fund in a bank account at reasonable interest. 

        (c)  To
invest, if the Trustee is a bank or similar financial institution supervised by the United States or by a State, in any type of deposit of the Trustee (or of a bank
related to the Trustee within the meaning of Code §414(b)) at a reasonable rate of interest or in a common trust fund, as described in Code §584, or in a collective investment
fund, the provisions of which govern the investment of such assets and which the Plan incorporates by this reference, which the Trustee (or its affiliate, as defined in Code §1504)
maintains exclusively for the collective investment of money contributed by the bank (or the affiliate) in its capacity as trustee and which conforms to the rules of the Comptroller of the Currency. 

        (d)  To
sell, contract to sell, grant options to purchase, convey, exchange, transfer, abandon, improve, repair, insure, lease for any term even though commencing in the
future or extending beyond the term of the Trust, and otherwise deal with all property, real or personal, in such manner, for such considerations and on such terms and conditions as the Named
Fiduciary directs in writing. 

        (e)  To
credit and distribute the Trust Fund as directed by the Plan Administrator. The Trustee is not obliged to inquire as to whether any payee or distributee is entitled
to any payment or whether the distribution is proper or within the terms of the Plan, or as to the manner of making any payment or distribution. The Trustee is accountable only to the Plan
Administrator for any payment or distribution made by it in good faith on the order or the direction of the Plan Administrator. 

        (f)    To
borrow money, to assume indebtedness, extend mortgages and encumber by mortgage or pledge in accordance with and at the written direction of the Named Fiduciary. 

        (g)  To
have with respect to the Trust all of the rights of an individual owner, including the power to exercise any and all voting rights associated with Trust assets, to
give proxies, to participate in any voting trusts, mergers, consolidations or liquidations, to tender shares and to exercise or sell stock subscriptions or conversion rights, provided the exercise of
any such powers is in accordance with and at the written direction of the Named Fiduciary. 

        (h)  To
lease for oil, gas and other mineral purposes and to create mineral severances by grant or reservation; to pool or unitize interests in oil, gas and other minerals;
and to enter into operating agreements and to execute division and transfer orders, provided the exercise of any such powers is in accordance with and at the written direction of the Named Fiduciary. 

55

 

        (i)    To
hold any securities or other property in the name of the nondiscretionary Trustee or its nominee, with depositories or agent depositories or in another form as the
Named Fiduciary may direct in writing, with or without disclosing the custodial relationship. 

        (j)    To
retain any funds or property subject to any dispute without liability for the payment of interest, and to decline to make payment or delivery of the funds or property
until a court of competent jurisdiction makes final adjudication. 

        (k)  To
file all information and tax returns required of the Trustee. 

        (l)    To
furnish to the Named Fiduciary, the Employer and the Plan Administrator an annual statement of account showing the condition of the Trust Fund and all investments,
receipts, disbursements and other transactions effected by the nondiscretionary Trustee during the Plan Year covered by the statement and also stating the assets of the Trust held at the end of the
Plan Year, which accounts are conclusive on all persons, including the Named Fiduciary, the Employer and the Plan Administrator, except as to any act or transaction concerning which the Named
Fiduciary, the Employer or the Plan Administrator files with the nondiscretionary Trustee written exceptions or objections within 90 days after the receipt of the accounts or for which ERISA
authorizes a longer period within which to object. 

        (m)  To
begin, maintain or defend any litigation necessary in connection with the administration of the Plan, except the Trustee is not obliged nor required to do so unless
indemnified to its satisfaction. 

        Appointment of Custodian.    The Employer may appoint a Custodian under the Plan, the acceptance by the Custodian indicated on
the execution page of the Adoption Agreement. If the Employer appoints a Custodian, the Plan must have a discretionary Trustee, as described in Section 10.03(A). A Custodian has the same
powers, rights and duties as a nondiscretionary Trustee, as described in this Section 10.03(B). The Custodian accepts the terms of the Plan and Trust by executing the Adoption Agreement. Any
reference in the Plan to a Trustee also is a reference to a Custodian where the context of the Plan dictates. A limitation of the Trustee's liability by Plan provision also acts as a limitation of the
Custodian's liability. Any action taken by the Custodian at the discretionary Trustee's direction satisfies any provision in the Plan referring to the Trustee's taking that action. 

        Modification of Powers/Limited Responsibility.    The Employer and the nondiscretionary Trustee (or the Custodian), in writing,
may limit the powers of the Custodian or the nondiscretionary Trustee to any combination of powers listed within this Section 10.03(B). If there is a Custodian or a nondiscretionary Trustee
under the Plan, then the Employer, in adopting this Plan acknowledges the Custodian or the nondiscretionary Trustee does not have any discretion with respect to the investment or the
re-investment of the Trust Fund and the Custodian or the nondiscretionary Trustee is acting solely as a custodian or as a directed trustee with respect to the assets comprising the Trust
Fund. 

        (C)    Limitation of Powers of Certain Custodians.    If a Custodian is a bank which, under its governing state law,
does not possess trust powers, then Paragraphs (a), (c) as it relates to common trust funds or collective investment funds, (d), (f), (g) and (h) of Section 10.03(B),
Section 10.17 and Article XI do not apply to that bank and that bank only has the power and the authority to exercise the remaining powers, rights and duties under
Section 10.03(B). 

        (D)    Named Fiduciary/Limitation of Liability of Nondiscretionary Trustee or Custodian.    The Named Fiduciary under
the Plan has the sole responsibility for the management and the control of the Trust Fund, except with respect to a Plan asset under the control or the direction of a properly appointed Investment
Manager or with respect to a Plan asset properly subject to Participant or Employer direction of investment. If the Employer appoints a discretionary Trustee, the Named Fiduciary is the discretionary
Trustee. If the Employer appoints a Custodian, the Named Fiduciary is 

56

 

the discretionary Trustee. Under a nondiscretionary Trustee designation, unless the Employer designates in writing another person or persons to serve as Named Fiduciary, the Named Fiduciary under the
Plan is the president of a corporate Employer, the managing partner of a partnership Employer, the managing member of a limited liability company Employer or the sole proprietor, as appropriate. The
Named Fiduciary will exercise its management and control of the Trust Fund through its written direction to the nondiscretionary Trustee or to the Custodian, whichever applies to the Plan. 

        The
nondiscretionary Trustee or the Custodian does not have any duty to review or to make recommendations regarding investments made at the written direction of the Named Fiduciary. The
nondiscretionary Trustee or the Custodian must retain any investment obtained at the written direction of the Named Fiduciary until further directed in writing by the Named Fiduciary to dispose of
such
investment. The nondiscretionary Trustee or the Custodian is not liable in any manner or for any reason for making, retaining or disposing of any investment pursuant to any written direction of the
Named Fiduciary. The Employer will indemnify, defend and hold the nondiscretionary Trustee or the Custodian harmless from any damages, costs or expenses, including reasonable attorneys' fees, which
the nondiscretionary Trustee or the Custodian may incur as a result of any claim asserted against the nondiscretionary Trustee, the Custodian or the Trust arising out of the nondiscretionary Trustee's
or Custodian's full and timely compliance with any written direction of the Named Fiduciary. 

        (E)    Participant Loans.    This Section 10.03(E) specifically authorizes the Trustee to make loans on a
nondiscriminatory basis to a Participant or to a Beneficiary in accordance with the loan policy established by the Plan Administrator, provided: (1) the loan policy satisfies the requirements
of Section 9.04; (2) loans are available to all Participants and Beneficiaries on a reasonably equivalent basis and are not available in a greater amount for Highly Compensated Employees
than for Nonhighly Compensated Employees; (3) any loan is adequately secured and bears a reasonable rate of interest; (4) the loan provides for repayment within a specified time
(however, the loan policy may suspend loan payments pursuant to Code §414(u)(4)) or otherwise in accordance with applicable Treasury Regulations); (5) the default provisions of the
note permit offset of the Participant's Vested Account Balance only at the time when the Participant has a distributable event under the Plan, but without regard to whether the Participant consents to
distribution as otherwise may be required under Section 6.01(A)(5); (6) the amount of the loan does not exceed (at the time the Plan extends the loan) the present value of the
Participant's Vested Account Balance; and (7) the loan otherwise conforms to the exemption provided by Code §4975(d)(1). The loan policy may provide a Participant's loan default is
a distributable event with respect to the defaulted amount, irrespective of whether the Participant otherwise has incurred a distributable event at the time of default, except as to amounts which the
Participant used to secure his/her loan which remain subject to distribution restrictions under Section 14.11 or are money purchase pension plan or target benefit plan balances which may not be
distributed in-service at the time of default. If the joint and survivor requirements of Article VI apply to the Participant, the Participant may not pledge any portion of his/her
Account Balance as security for a loan unless, within the 90 day period ending on the date the pledge becomes effective, the Participant's spouse, if any, consents (in a manner described in
Section 6.05 other than the requirement relating to the consent of a subsequent spouse) to the security or, by separate consent, to an increase in the amount of security. 

        A
Participant who is an Owner-Employee (including other persons described in Code §4975(f)(6)), or who is a Shareholder-Employee may not receive a loan from the Plan, unless
he/she has obtained a prohibited transaction exemption from the DOL. 

        (F)    Investment in Qualifying Employer Securities and Qualifying Employer Real Property.    The Trustee (or as
applicable, Investment Manager, Employer or Participant) may invest in qualifying Employer securities or in qualifying Employer real property, as defined in and as limited by ERISA. If the Employer's
Plan is a profit sharing plan, the aggregate investments in qualifying Employer securities and in qualifying Employer real property may exceed 10% of the value of Plan assets, unless the 

57

 

Employer elects in its Adoption Agreement to restrict such investments to 10% (or to some other percentage which is less than 100%). Notwithstanding the foregoing, except where permitted under ERISA
§407(b)(2), if the Plan includes a 401(k) arrangement, a participant's Deferral Contributions
Account accumulated in Plan Years beginning after December 31, 1998, including earnings thereon, may not be invested more than 10% in qualifying employer securities and qualifying employer real
property, unless such investments are directed by the Participant or the Participant's Beneficiary. 

        (G)    Modifications to or Substitution of Trust.    The Employer in its Standardized Adoption Agreement may not amend
any provision of Article X (or any other provision of the Plan related to the Trust) except to specify the Trust year, the names of the Plan, the Employer, the Trustee, the Custodian, the Plan
Administrator, other fiduciaries or the name of any pooled trust in which the Trust will participate. The Employer in its Nonstandardized Adoption Agreement, in addition to the foregoing amendments,
may amend or override the administrative provisions of Article X (or any other provision of the Plan related to the Trust), including provisions relating to Trust investment and Trustee duties.
Any such amendment: (1) must not conflict with any other provisions of the Plan (except as expressly are intended to override an existing Trust provision); (2) must not cause the Plan to
violate Code §401(a); and (3) must be made in accordance with Rev. Proc. 2000-20 or any successor thereto. The Employer using either a Standardized or Nonstandardized
Adoption Agreement to establish its Plan, subject to the conditions (1), (2) and (3) described above, may elect to substitute in place of Article X and the remaining trust
provisions of the basic plan document, any other trust or custodial account agreement. All Section 10.03(G) Trust modifications or substitutions are subject to Section 13.02 and require
the written consent or signature of the Trustee. 

        (H)    Cofiduciary Liability.    Each fiduciary under the Plan is responsible solely for his/her or its own acts or
omissions. A fiduciary does not have any liability for another fiduciary's breach of fiduciary responsibility with respect to the Plan and the Trust unless the fiduciary: (1) participates
knowingly in or undertakes to conceal the breach; (2) has actual knowledge of the breach and fails to take reasonable remedial action to remedy the breach; or (3) through negligence in
performing his/her or its own specific fiduciary responsibilities that give rise to fiduciary status, the fiduciary has enabled the other fiduciary to commit a breach of the latter's fiduciary
responsibility. 

        10.04    RECORDS AND STATEMENTS.    The records of the Trustee pertaining to the Plan must be open to the inspection
of the Plan Administrator and the Employer at all reasonable times and may be audited from time to time by any person or persons as the Employer or Plan Administrator may specify in writing. The
Trustee must furnish the Plan Administrator with whatever information relating to the Trust Fund the Plan Administrator considers necessary to perform its duties as Plan Administrator. 

        10.05    FEES AND EXPENSES FROM FUND.    A Trustee or a Custodian will receive reasonable compensation as may be
agreed upon from time to time between the Employer and the Trustee or the Custodian. No person who is receiving full pay from the Employer may receive compensation (except for reimbursement of Plan
expenses) for services as Trustee or as Custodian. The Trustee will pay from the Trust Fund all fees and reasonable expenses incurred by the Plan, to the extent such fees and expenses are for the
ordinary and necessary administration and operation of the Plan and are not "settlor expenses" as determined by the DOL unless the Employer pays such fees and expenses. Any fee or expense paid,
directly or indirectly, by the Employer is not an Employer contribution to the Plan, provided the fee or the expense relates to the ordinary and necessary administration of the Trust Fund. 

        10.06    PARTIES TO LITIGATION.    Except as otherwise provided by ERISA, a Participant or a Beneficiary is not a
necessary party or required to receive notice of process in any court proceeding involving the Plan, the Trust Fund or any fiduciary of the Plan. Any final judgment entered in any such 

58

 

proceeding will be binding upon the Employer, the Plan Administrator, the Trustee, Custodian, Participants and Beneficiaries and upon their successors and assigns. 

        10.07    PROFESSIONAL AGENTS.    The Trustee may employ and pay from the Trust Fund reasonable compensation to agents,
attorneys, accountants and other persons to advise the Trustee as in its opinion may be necessary. The Trustee reasonably may delegate to any agent, attorney, accountant or other person selected by it
any non-Trustee power or duty vested in it by the Plan, and the Trustee may reasonably act or refrain from acting on the advice or opinion of any agent, attorney, accountant or other
person so selected. 

        10.08    DISTRIBUTION OF CASH OR PROPERTY.    The Trustee will make Plan distributions in the form of cash except
where: (1) the required form of distribution is a QJSA or QPSA which has not been waived; (2) the Plan is a restated Plan and under the prior Plan, distribution in the form of property
("in-kind distribution") is a Protected Benefit (3) the Plan Administrator adopts a written policy which provides for in-kind distribution; or (4) the Employer is
terminating the Plan, and in the reasonable judgement of the Trustee, some or all Plan assets may not within a reasonable time for making final distribution of Plan assets, be liquidated to cash or
may not be so liquidated without undue loss in value. The Plan Administrator's policy under clause (3) may restrict in-kind distributions to certain types of Trust investments or
specify any other reasonable and nondiscriminatory condition or restriction applicable to in-kind distributions. Under clause (4), the Trustee will make Plan termination
distributions to Participants and Beneficiaries in cash, in-kind or in a combination of these forms, in a reasonable and nondiscriminatory manner which may take into account the
preferences of the distributees. All in-kind distributions will be made based on the current fair market value of the property, as determined by the Trustee. 

        10.09    PARTICIPANT OR BENEFICIARY INCAPACITATED.    If, in the opinion of the Plan Administrator or of the Trustee,
a Participant or Beneficiary entitled to a Plan distribution is not able to care for his/her affairs because of a mental condition, a physical condition, or by reason of age, at the direction of the
Plan Administrator the Trustee may make the distribution to the Participant's or Beneficiary's guardian, conservator, trustee, custodian (including under a Uniform Transfers or Gifts to Minors Act) or
to his/her attorney-in-fact or to other legal representative upon furnishing evidence of such status satisfactory to the Plan Administrator and to the Trustee. The Plan
Administrator and the Trustee do not have any liability with respect to payments so made and neither the Plan Administrator nor the Trustee has any duty to make inquiry as to the competence of any
person entitled to receive payments under the Plan. 

        10.10    DISTRIBUTION DIRECTIONS.    The Trustee must promptly notify the Plan Administrator of any unclaimed Plan
distribution and then dispose of the distribution in accordance with the Plan Administrator's subsequent direction. 

        10.11    THIRD PARTY RELIANCE.    A person dealing with the Trustee is not obligated to see to the proper application
of any money paid or property delivered to the Trustee, or to inquire whether the Trustee has acted pursuant to any of the terms of the Plan. Each person dealing with the Trustee may act upon any
notice, request or representation in writing by the Trustee, or by the Trustee's duly authorized agent, and is not liable to any person in so acting. The certificate of the Trustee that it is acting
in accordance with the Plan is conclusive in favor of any person relying on the certificate. 

        10.12    MULTIPLE TRUSTEES.    If more than two persons act as Trustee, a decision of the majority of such persons
controls with respect to any decision regarding the administration or the investment of the Trust Fund or of any portion of the Trust Fund with respect to which such persons act as Trustee. If there
is more than one Trustee, the Trustees jointly will manage and control the assets of the Trust Fund. However, the Trustees may allocate among themselves specific responsibilities or obligations or may
authorize one or more of them, either individually or in concert, to exercise any or 

59

 

all of the powers granted to the Trustee under Article X. In addition, the signature of only one Trustee is necessary to effect any transaction on behalf of the Trust. 

        10.13    RESIGNATION AND REMOVAL.    The Trustee or the Custodian may resign its position by giving written notice to
the Employer and to the Plan Administrator. The Trustee's notice must specify the effective date of the Trustee's resignation, which date must be at least 30 days following the date of the
Trustee's notice, unless the Employer consents in writing to shorter notice. 

        The
Employer may remove a Trustee or a Custodian by giving written notice to the effected party. The Employer's notice must specify the effective date of removal which date must be at
least 30 days following the date of the Employer's notice, except where the Employer reasonably determines a shorter notice period or immediate removal is necessary to protect Plan assets. 

        In
the event of the resignation or the removal of a Trustee, where no other Trustee continues to service, the Employer must appoint a successor Trustee if it intends to continue the
Plan. If two or more persons hold the position of Trustee, in the event of the removal of one such person, during any period the selection of a replacement is pending, or during any period such person
is unable to serve for any reason, the remaining person or persons will act as the Trustee. If the Employer fails to appoint a successor Trustee as of the effective date of the Trustee resignation or
removal and no other Trustee remains, the Trustee will treat the Employer as having appointed itself as Trustee and as having filed the Employer's acceptance of appointment as successor Trustee with
the former Trustee. If state law prohibits the Employer from serving as successor Trustee, the appointed successor Trustee is the president of a corporate Employer, the managing partner of a
partnership Employer, the managing member of a limited liability company Employer or the sole proprietor, as appropriate. If the Employer removes and does not replace a Custodian, the discretionary
Trustee will assume possession of Plan assets held by the former Custodian. 

        10.14    SUCCESSOR TRUSTEE ACCEPTANCE.    Each successor Trustee succeeds its predecessor Trustee by accepting in
writing its appointment as successor Trustee and by filing the acceptance with the former Trustee and the Plan Administrator without the signing or filing of any further statement. The resigning or
removed Trustee, upon receipt of acceptance in writing of the Trust by the successor Trustee, must execute all documents and do all acts necessary to vest the title of record in any successor Trustee.
Each successor Trustee has and enjoys all of the powers, both discretionary and ministerial, conferred under the Plan upon its predecessor. A successor Trustee is not personally liable for any act or
failure to act of any predecessor Trustee, except as required under ERISA. With the approval of the Employer and the Plan Administrator, a successor Trustee, with respect to the Plan, may accept the
account rendered and the property delivered to it by a predecessor Trustee without liability. 

        10.15    VALUATION OF TRUST.    The Trustee must value the Trust Fund as of each Accounting Date to determine the fair
market value of each Participant's Account Balance in the Trust. The Trustee also must value the Trust Fund on such other valuation dates as directed in writing by the Plan Administrator or as the
Adoption Agreement may require. 

        10.16    LIMITATION ON LIABILITY—IF INVESTMENT MANAGER, ANCILLARY TRUSTEE OR INDEPENDENT FIDUCIARY
APPOINTED.    The Trustee is not liable for the acts or omissions of any Investment Manager the Plan Administrator may appoint, nor is the Trustee under any
obligation to invest or otherwise to manage any asset of the Trust Fund which is subject to the management of a properly appointed Investment Manager. The Plan Administrator, the Trustee and any
properly appointed Investment Manager may execute a written agreement as a part of this Plan delineating the duties, responsibilities and liabilities of the Investment Manager with respect to any part
of the Trust Fund under the control of the Investment Manager. 

60

 

        The
limitation on liability described in this Section 10.16 also applies to the acts or omissions of any ancillary trustee or independent fiduciary properly appointed under
Section 10.18. However, if a discretionary Trustee, pursuant to the delegation described in Section 10.18, appoints an ancillary trustee, the discretionary Trustee is responsible for the
periodic review of the ancillary trustee's actions and must exercise its delegated authority in accordance with the terms of the Plan and in a manner consistent with ERISA. The Employer, the
discretionary Trustee and an ancillary trustee may execute a written agreement as a part of this Plan delineating any indemnification agreement among the parties. 

        10.17    INVESTMENT IN GROUP TRUST FUND.    The Employer, by adopting this Plan, specifically authorizes the Trustee
to invest all or any portion of the assets comprising the Trust Fund in any group trust fund which at the time of the investment provides for the pooling of the assets of plans qualified under Code
§401(a). This authorization applies solely to a group trust fund exempt from taxation under Code §501(a) and the trust agreement of which satisfies the requirements of Revenue
Ruling 81-100, or any successor thereto. The provisions of the group trust fund agreement, as amended from time to time, are by this reference incorporated within this Plan and Trust. The
provisions of the group trust
fund will govern any investment of Plan assets in that fund. The Employer must specify in an Addendum to its Adoption Agreement the group trust fund(s) to which this authorization applies. If the
Trustee is acting as a nondiscretionary Trustee, the investment in the group trust fund is available only in accordance with a proper direction, by the Named Fiduciary, in accordance with
Section 10.03(B). Pursuant to Paragraph (c) of Section 10.03(A), a Trustee has the authority to invest in certain common trust funds and collective investment funds without the
need for the authorizing Addendum described in this Section 10.17. 

        Furthermore,
at the Employer's direction, the Trustee, for collective investment purposes, may combine into one trust fund the Trust created under this Plan with the trust created under
any other qualified retirement plan the Employer maintains. However, the Trustee must maintain separate records of account for the assets of each Trust in order to reflect properly each Participant's
Account Balance under the qualified plans in which he/she is a participant. 

        10.18    APPOINTMENT OF ANCILLARY TRUSTEE OR INDEPENDENT FIDUCIARY.    The Employer, in writing, may appoint any
qualified person in any state to act as ancillary trustee with respect to a designated portion of the Trust Fund, subject to any consent required under Section 1.33. An ancillary trustee must
acknowledge in writing its acceptance of the terms and conditions of its appointment as ancillary trustee and its fiduciary status under ERISA. The ancillary trustee has the rights, powers, duties and
discretion as the Employer may delegate, subject to any limitations or directions specified in the agreement appointing the ancillary trustee and to the terms of the Plan or of ERISA. The investment
powers delegated to the ancillary trustee may include any investment powers available under Section 10.03. The delegated investment powers may include the right to invest any portion of the
assets of the Trust Fund in a common trust fund, as described in Code §584, or in any collective investment fund, the provisions of which govern the investment of such assets and which the
Plan incorporates by this reference, but only if the ancillary trustee is a bank or similar financial institution supervised by the United States or by a state and the ancillary trustee (or its
affiliate, as defined in Code §1504) maintains the common trust fund or collective investment fund exclusively for the collective investment of money contributed by the ancillary trustee
(or its affiliate) in a trustee capacity and which conforms to the rules of the Comptroller of the Currency. The Employer also may appoint as an ancillary trustee, the trustee of any group trust fund
designated for investment pursuant to the provisions of Section 10.17. 

        The
ancillary trustee may resign its position and the Employer may remove an ancillary trustee as provided in Section 10.13 regarding resignation and removal of the Trustee or
Custodian. In the event of such resignation or removal, the Employer may appoint another ancillary trustee or may return the assets to the control and management of the Trustee. The Employer may
delegate its responsibilities 

61

 

under this Section 10.18 to a discretionary Trustee under the Plan, but not to a nondiscretionary Trustee or to a Custodian, subject to the acceptance by the discretionary Trustee of that
delegation. 

        If
the DOL requires engagement of an independent fiduciary to have control or management of all or a portion of the Trust Fund, the Employer will appoint such independent fiduciary, as
directed by the DOL. The independent fiduciary will have the duties, responsibilities and powers prescribed by the DOL and will exercise those duties, responsibilities and powers in accordance with
the terms,
restrictions and conditions established by the DOL and, to the extent not inconsistent with ERISA, the terms of the Plan. The independent fiduciary must accept its appointment in writing and must
acknowledge its status as a fiduciary of the Plan. 

 
 

ARTICLE XI
  PROVISIONS RELATING TO INSURANCE AND INSURANCE COMPANY    
  

        11.01    INSURANCE BENEFIT.    The Employer may elect to provide incidental life insurance benefits for insurable
Participants who consent to life insurance benefits by executing the appropriate insurance company application form. The Trustee will not purchase any incidental life insurance benefit for any
Participant prior to a contribution allocation to the Participant's Account. At an insured Participant's written direction, the Trustee will use all or any portion of the Participant's Employee
contributions, if any, to pay insurance premiums covering the Participant's life. This Section 11.01 also authorizes (except if the Plan is a money purchase pension plan) the purchase of life
insurance, for the benefit of the Participant, on the life of a family member of the Participant or on any person in whom the Participant has an insurable interest. However, if the policy is on the
joint lives of the Participant and another person, the Trustee may not maintain that policy if the other person predeceases the Participant. 

        The
Employer will direct the Trustee as to the insurance company and insurance agent through which the Trustee is to purchase the insurance contracts, the amount of the coverage and the
applicable dividend plan. Each application for a policy, and the policies themselves, must designate the Trustee as sole owner, with the right reserved to the Trustee to exercise any right or option
contained in the policies, subject to the terms and provisions of this Plan. The Trustee must be the named beneficiary for the Account of the insured Participant. Proceeds of insurance contracts paid
to the Participant's Account under this Article XI are subject to the distribution requirements of Article VI. The Trustee will not retain any such proceeds for the benefit of the Trust. 

        The
Trustee will charge the premiums on any incidental benefit insurance contract covering the life of a Participant against the Account of that Participant and will treat the insurance
contract as a directed investment of the Participant's Account, even if the Plan otherwise does not permit a Participant to direct the investment of his/her own Account. The Trustee will hold all
incidental benefit insurance contracts issued under the Plan as assets of the Trust created and maintained under the Plan. 

        (A)    Incidental insurance benefits.    The aggregate of life insurance premiums paid for the benefit of a
Participant, at all times, may not exceed the following percentages of the aggregate of the Employer's contributions (including Deferral Contributions and forfeitures) allocated to any Participant's
Account: (i) 49% in the case of the purchase of ordinary life insurance contracts; or (ii) 25% in the case of the purchase of term life insurance or universal life insurance contracts.
If the Trustee purchases a combination of ordinary life insurance contract(s) and term life insurance or universal life insurance contract(s), then the sum of one-half of the premiums paid
for the ordinary life insurance contract(s)
and the premiums paid for the term life insurance or universal life insurance contract(s) may not exceed 25% of the Employer contributions allocated to any Participant's Account. 

        (B)    Exception for certain profit sharing plans.    If the Plan is a profit sharing plan, the incidental insurance
benefits requirement does not apply to the Plan if the Plan purchases life insurance benefits 

62

 

only from Employer contributions accumulated in the Participant's Account for at least two years (measured from the allocation date). 

        (C)    Exception for other amounts.    The incidental insurance benefits requirement does not apply to life insurance
purchased with Employee contributions, rollover contributions, or earnings on Employer contributions. 

        11.02    LIMITATION ON LIFE INSURANCE PROTECTION.    The Trustee will not continue any life insurance protection for
any Participant beyond his/her annuity starting date as defined in Section 6.01(A)(4). If the Trustee holds any incidental benefit insurance contract(s) for the benefit of a Participant when
he/she terminates his/her employment (other than by reason of death), the Trustee must proceed as follows: 

        (a)  If
the entire cash value of the contract(s) is Vested in the terminating Participant, or if the contract(s) will not have any cash value at the end of the policy year in
which Separation from Service occurs, the Trustee will transfer the contract(s) to the Participant endorsed so as to vest in the transferee all right, title and interest to the contract(s), free and
clear of the Trust; subject however, to restrictions as to surrender or payment of benefits as the issuing insurance company may permit and as the Plan Administrator directs; 

        (b)  If
only part of the cash value of the contract(s) is Vested in the terminating Participant, the Trustee, to the extent the Participant's interest in the cash value of
the contract(s) is not Vested, may adjust the Participant's interest in the value of his/her Account attributable to Trust assets other than incidental benefit insurance contracts and proceed as in
(a), or the Trustee must effect a loan from the issuing insurance company on the sole security of the contract(s) for an amount equal to the difference between the cash value of the contract(s) at the
end of the policy year in which termination of employment occurs and the amount of the cash value that is Vested in the terminating Participant, and the Trustee must transfer the contract(s) endorsed
so as to vest in the transferee all right, title and interest to the contract(s), free and clear of the Trust; subject however, to the restrictions as to surrender or payment of benefits as the
issuing insurance company may permit and the Plan Administrator directs; 

        (c)  If
no part of the cash value of the contract(s) is Vested in the terminating Participant, the Trustee must surrender the contract(s) for cash proceeds as may be
available. 

        In
accordance with the written direction of the Plan Administrator, the Trustee will make any transfer of contract(s) under this Section 11.02 on the Participant's annuity
starting date (or as soon as administratively practicable after that date). The Trustee may not transfer any contract under this Section 11.02 which contains a method of payment not
specifically authorized by Article VI or which fails to comply with the joint and survivor annuity requirements, if applicable, of Article VI. In this regard, the Trustee either must
convert such a contract to cash and distribute the cash instead of the contract, or before making the transfer, must require the issuing company to delete the unauthorized method of payment option
from the contract. 

        11.03    DEFINITIONS.    For purposes of this Article XI: 

        (a)  "Policy"
means an ordinary life, term life or universal life insurance contract issued by an insurer on the life of a Participant. 

        (b)  "Issuing
insurance company" is any life insurance company which has issued a policy upon application by the Trustee under the terms of this Plan. 

        (c)  "Contract"
or "Contracts" means a policy of insurance. In the event of any conflict between the provisions of this Plan and the terms of any contract or policy of
insurance issued in accordance with this Article XI, the provisions of the Plan control. 

63

 

        (d)  "Insurable
Participant" means a Participant to whom an insurance company, upon an application being submitted in accordance with the Plan, will issue insurance coverage,
either as a standard risk or as a risk in an extra mortality classification. 

        11.04    DIVIDEND PLAN.    The dividend plan is premium reduction unless the Plan Administrator directs the Trustee to
the contrary. The Trustee must use all dividends for a contract to purchase insurance benefits or additional insurance benefits for the Participant on whose life the insurance company has issued the
contract. Furthermore, the Trustee must arrange, where possible, for all policies issued on the lives of Participants under the Plan to have the same premium due date and all ordinary life insurance
contracts to contain guaranteed cash values with as uniform basic options as are possible to obtain. The term "dividends" includes policy dividends, refunds of premiums and other credits. 

        11.05    INSURANCE COMPANY NOT A PARTY TO AGREEMENT.    No insurance company, solely in its capacity as an issuing
insurance company, is a party to this Plan nor is the company responsible for its validity. 

        11.06    NO RESPONSIBILITY FOR OTHERS.    Except as required by ERISA, an issuing insurance company has no
responsibility or obligation under the Plan to Participants or Beneficiaries for any act (unless the insurance company also serves in such capacities) required of the Employer, the Plan Administrator,
the Trustee, the Custodian or any other service provider to the Plan. No insurance company, solely in its capacity as an issuing insurance company, need examine the terms of this Plan. For the purpose
of making application to an insurance company and in the exercise of any right or option contained in any policy, the insurance company may rely upon the signature of the Trustee and is held harmless
and completely discharged in acting at the direction and authorization of the Trustee. An insurance company is discharged from all liability for any amount paid to the Trustee or paid in accordance
with the direction of the Trustee, and is not obliged to see to the distribution or further application of any moneys the insurance company so pays. 

        11.07    DUTIES OF INSURANCE COMPANY.    Each insurance company must keep such records, make such identification of
contracts, funds and accounts within funds, and supply such information as may be necessary for the proper administration of the Plan under which it is carrying insurance benefits. 

        Note:    The provisions of this Article XI are not applicable, and the Plan may not invest in insurance contracts, if a
Custodian signatory to the Adoption Agreement is a bank which does not have trust powers from its governing state banking authority. 

64

  

 
 

ARTICLE XII
  TOP-HEAVY PROVISIONS    
  

        12.01    DETERMINATION OF TOP-HEAVY STATUS.    If this Plan is the only qualified plan maintained by the
Employer, the Plan is top-heavy for a Plan Year if the top-heavy ratio as of the Determination Date exceeds 60%. The top-heavy ratio is a fraction, the numerator of
which is the sum of the Account Balances of all Key Employees as of the Determination Date and the denominator of which is a similar sum determined for all Employees. 

        The
Plan Administrator must include in the top-heavy ratio, as part of the Account Balances, any contribution not made as of the Determination Date but includible under
Code §416 and the applicable Treasury regulations, and distributions made within the Determination Period. The Plan Administrator must calculate the top-heavy ratio by
disregarding the Account Balance (and distributions, if any, of the Account Balance) of any Non-Key Employee who was formerly a Key Employee, and by disregarding the Account Balance
(including distributions, if any, of the Account Balance) of an individual who has not received credit for at least one Hour of Service with the Employer during the Determination Period. The Plan
Administrator must calculate the top-heavy ratio, including the extent to which it must take into account distributions, rollovers and transfers, in accordance with
Code §416 and the regulations under that Code section. 

        If
the Employer maintains other qualified plans (including a simplified employee pension plan), or maintained another such plan now terminated, this Plan is top-heavy only if
it is part of the Required Aggregation Group, and the top-heavy ratio for the Required Aggregation Group and for the Permissive Aggregation Group, if any, each exceeds 60%. The Plan
Administrator will calculate the top-heavy ratio in the same manner as required by the first two paragraphs of this Section 12.01, taking into account all plans within the
Aggregation Group. To the extent the Plan Administrator must take into account distributions to a Participant, the Plan Administrator must include distributions from a terminated plan which would have
been part of the Required Aggregation Group if it were in existence on the Determination Date. The Plan Administrator will calculate the present value of accrued benefits under defined benefit plans
or the account balances under simplified employee pension plans included within the group in accordance with the terms of those plans, Code §416 and the regulations under that Code
section. 

        If
a Participant in a defined benefit plan is a Non-Key Employee, the Plan Administrator will determine his/her accrued benefit under the accrual method, if any, which is
applicable uniformly to all defined benefit plans maintained by the Employer or, if there is no uniform method, in accordance with the slowest accrual rate permitted under the fractional rule accrual
method described in Code §411(b)(1)(C). If the Employer maintains a defined benefit plan, the Plan Administrator will use the actuarial assumptions (interest and mortality only)
stated in that plan to calculate the present value of benefits from that defined benefit plan. If an aggregated plan does not have a valuation date coinciding with the Determination Date, the Plan
Administrator must value the Account Balance in the aggregated plan as of the most recent valuation date falling within the twelve-month period ending on the Determination Date, except as
Code §416 and applicable Treasury regulations require for the first and for the second plan year of a defined benefit plan. The Plan Administrator will calculate the
top-heavy ratio with reference to the Determination Dates that fall within the same calendar year. The top-heavy provisions of the Plan apply only for Plan Years in which
Code §416 requires application of the top-heavy rules. 

        12.02    DEFINITIONS.    For purposes of applying the top-heavy provisions of the Plan: 

        (a)  "Compensation"
means Compensation as determined under Section 3.18(b) for Code §415 purposes and includes Compensation for the entire Plan
Year. 

65

 

        (b)  "Determination
Date" means for any Plan Year, the Accounting Date of the preceding Plan Year or, in the case of the first Plan Year of the Plan, the Accounting Date of
that Plan Year. 

        (c)  "Determination
Period" means the 5-year period ending on the Determination Date. 

        (d)  "Employer"
means the Employer that adopts this Plan and any Related Employer. 

        (e)  "Key
Employee" means, as of any Determination Date, any Employee or former Employee (or Beneficiary of such Employee) who, at any time during the Determination Period:
(i) has Compensation in excess of 50% of the dollar amount prescribed in Code §415(b)(1)(A) (relating to defined benefit plans) and is an officer of the Employer;
(ii) has Compensation in excess of the dollar amount prescribed in Code §415(c)(1)(A) (relating to defined contribution plans), owns a more than 1/2% interest
in the Employer and is one of the Employees owning the ten largest interests in the Employer; (iii) is a more than 5% owner of the Employer; or (iv) is a more than 1% owner of the
Employer and has Compensation of more than $150,000. The constructive ownership rules of Code §318 (or the principles of that Code section, in the case of an unincorporated
Employer,) will apply to determine ownership in the Employer. The number of officers taken into account under clause (i) will not exceed the greater of
3 or 10% of the total number (after application of the Code §414(q) exclusions) of Employees, but no more than 50 officers. The Plan Administrator will make the determination of who
is a Key Employee in accordance with Code §416(i)(1) and the regulations under that Code section. 

        (f)    "Non-Key
Employee" means an Employee who does not meet the definition of Key Employee. 

        (g)  "Participant"
means any Employee otherwise eligible to participate in the Plan but who is not entitled to receive any allocation under the Plan (or would have received a
lesser allocation) for the Plan Year because of his/her Compensation level or because of his/her failure: (i) to make elective deferrals under a 401(k) arrangement; (ii) to make
Employee contributions; or (iii) to complete 1,000 Hours of Service or any other service requirement the Employer specifies in its Adoption Agreement as a condition to receive an allocation
except for employment on the last day of the Plan Year. 

        (h)  "Permissive
Aggregation Group" means the Required Aggregation Group plus any other qualified plans maintained by the Employer, but only if such group would satisfy in
the aggregate the nondiscrimination requirements of Code §401(a)(4) and the coverage requirements of Code §410. The Plan Administrator will determine the
Permissive Aggregation Group. 

        (i)    "Required
Aggregation Group" means: (i) each qualified plan of the Employer in which at least one Key Employee participates or participated at any time during the
Determination Period (including terminated plans); and (ii) any other qualified plan of the Employer which enables a plan described in clause (i) to meet the requirements of
Code §401(a)(4) or of Code §410. 

        12.03    TOP-HEAVY MINIMUM ALLOCATION.    The top-heavy minimum allocation requirement applies
to the Plan only in a Plan Year for which the Plan is top-heavy. If the Plan is top-heavy in any Plan Year: 

        (a)  Each
Non-Key Employee who is a Participant (as described in Section 12.02(g)) and employed by the Employer on the last day of the Plan Year will
receive a top-heavy minimum allocation for that Plan Year. 

        (b)  The
top-heavy minimum allocation is equal to the lesser of 3% of the Non-Key Employee's Compensation for the Plan Year or the highest
contribution rate for the Plan Year made on behalf of any Key Employee. However, if a defined benefit plan maintained by the Employer which benefits a Key Employee depends on this Plan to satisfy the
nondiscrimination 

66

 

rules of Code §401(a)(4) or the coverage rules of Code §410 (or another plan benefiting the Key Employee so depends on such defined benefit plan), the
top-heavy minimum allocation is 3% of the Non-Key Employee's Compensation regardless of the contribution rate for the Key Employees. 

        (c)  If,
for a Plan Year, there are no allocations of Employer contributions or of forfeitures for any Key Employee, the Plan does not require any top-heavy
minimum allocation for the Plan Year, unless a top-heavy minimum allocation applies because of the maintenance by the Employer of more than one plan. 

        12.04    DETERMINING TOP-HEAVY CONTRIBUTION RATES.    In determining under Section 12.03(b) the
highest contribution rate for any Key Employee, the Plan Administrator takes into account all Employer contributions (including deferral contributions and including matching contributions but not
including Employer contributions to Social Security) and forfeitures allocated to the Participant's Account for the Plan Year, divided by his/her Compensation for the entire Plan Year. For purposes of
satisfying the Employer's top-heavy minimum allocation requirement, the Plan Administrator disregards the elective deferrals and matching contributions allocated to a Non-Key
Employee's Account in determining the Non-Key Employee's contribution rate. However, the Plan Administrator operationally may include in the contribution rate of a Non-Key
Employee any matching contributions not necessary to satisfy the nondiscrimination requirements of Code §401(k) or of Code §401(m). 

        To
determine a Participant's contribution rate, the Plan Administrator must treat all qualified top-heavy defined contribution plans maintained by the Employer (or by any
Related Employer) as a single plan. 

        12.05    PLAN WHICH WILL SATISFY TOP-HEAVY.    The Plan will satisfy the top-heavy minimum
allocation requirement in accordance with the following requirements: 

        (a)  If
the Employer makes the top-heavy minimum allocation to this Plan, the Employer will make any necessary additional contribution to this Plan. The Plan
Administrator first will allocate the Employer contributions (and Participant forfeitures, if any) for the Plan Year in accordance with the provisions of Adoption Agreement Section 3.04. The
Employer then will contribute an additional amount for the Account of any Participant entitled under Section 12.03 to a top-heavy minimum allocation and whose contribution rate for
the Plan Year, under this Plan and any other plan aggregated under Section 12.02, is less than the top-heavy minimum allocation. The additional amount is the amount necessary to
increase the Participant's contribution rate to the top-heavy minimum allocation. The Plan Administrator will allocate the additional contribution to the Account of the Participant on
whose behalf the Employer makes the contribution. 

        (b)  If
the Employer makes the top-heavy minimum allocation under another plan, this Plan does not provide the top-heavy minimum allocation and the
Plan Administrator will allocate the annual Employer contributions (and Participant forfeitures) under the Plan solely in accordance with the allocation method selected under Adoption Agreement
Section 3.04. 

        12.06    TOP-HEAVY VESTING.    If the Plan is top-heavy and the Employer in its Adoption
Agreement does not elect immediate vesting, the Employer must elect a top-heavy (or modified top-heavy) vesting
schedule. The specified top-heavy vesting schedule applies to the Plan's first top-heavy Plan Year and to all subsequent Plan Years, except as the Employer otherwise elects in
its Adoption Agreement. If the Employer elects in its Adoption Agreement to apply the specified top-heavy vesting schedule only in Plan Years in which the Plan is top-heavy,
any change in the Plan's vesting schedule resulting from this election is subject to Section 5.11. 

67

 
 
 

ARTICLE XIII
  EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION    
  

        13.01    EXCLUSIVE BENEFIT.    Except as provided under Article III, the Employer does not have any beneficial
interest in any asset of the Trust Fund and no part of any asset in the Trust Fund may ever revert to or be repaid to the Employer, either directly or indirectly; nor, prior to the satisfaction of all
liabilities with respect to the Participants and their Beneficiaries under the Plan, may any part of the corpus or income of the Trust Fund, or any asset of the Trust Fund, be (at any time) used for,
or diverted to, purposes other than the exclusive benefit of the Participants or their Beneficiaries and for defraying reasonable expenses of administering the Plan. 

        However,
if the Commissioner of Internal Revenue, upon the Employer's application for initial approval of this Plan, determines the Trust created under the Plan is not a qualified trust
exempt from Federal income tax, then (and only then) the Trustee, upon written notice from the Employer, will return the Employer's contributions (and the earnings thereon) to the Employer. The
immediately preceding sentence applies only if the Employer makes the application for the determination by the time prescribed by law for filing the Employer's tax return for the taxable year in which
the Employer adopted the Plan, or by such later date as the Internal Revenue Service may prescribe. The Trustee must make the return of the Employer contribution under this Section 13.01 within
one year of a final disposition of the Employer's request for initial approval of the Plan. The Employer's Plan and Trust will terminate upon the Trustee's return of the Employer's contributions. 

        13.02    AMENDMENT BY EMPLOYER.    The Employer, consistent with this Section 13.02 and other applicable Plan
provisions, has the right, at any time: 

        (a)  To
amend the elective provisions of the Adoption Agreement in any manner it deems necessary or advisable; 

        (b)  To
add overriding language in the Adoption Agreement to satisfy Code §§415 or 416 because of the required aggregation of multiple plans;
and 

        (c)  To
add model amendments published by the Revenue Service (the adoption of which the Revenue Service provides will not cause the Plan to be individually designed). 

        (A)    Amendment Formalities.    The Employer must make all Plan amendments in writing by means of substituted
Adoption Agreement pages or by restatement of the Adoption Agreement. The Employer (and Trustee if the Trustee's written consent to the amendment is required under Section 10.03(G)), must
execute a new Adoption Agreement Execution Page each time the Employer amends the Plan. Each amendment must specify the date as of which the amendment is either retroactively or prospectively
effective. See Section 7.12 for the effect of certain amendments adopted by the Employer which will result in the Employer's Plan losing Prototype Plan status. 

        (B)    Impermissible Amendment/Protected Benefits.    An amendment may not authorize or permit any of the Trust Fund
(other than the part required to pay taxes and reasonable administration expenses) to be used for or diverted to purposes other than for the exclusive benefit of the Participants or their
Beneficiaries or estates. An amendment may not cause or permit any portion of the Trust Fund to revert to or become a property of the Employer. Furthermore, the Employer may not make any amendment
which affects the rights, duties or responsibilities of the Trustee or of the Plan Administrator without the written consent of the affected Trustee or the Plan Administrator. 

        An
amendment (including the adoption of this Plan as a restatement of an existing plan) may not decrease a Participant's Account Balance, except to the extent permitted under
Code §412(c)(8), and except as provided in Treasury regulations, may not reduce or eliminate Protected Benefits determined immediately prior to the adoption date (or, if later, the
effective date) of the amendment. An amendment reduces or eliminates Protected Benefits if the amendment has the effect of either 

68

 

(1) eliminating or reducing an early retirement benefit or a retirement-type subsidy (as defined in Treasury regulations), or (2) except as provided by Treasury regulations,
eliminating an optional form of benefit. 

        The
Plan Administrator must disregard an amendment to the extent application of the amendment would fail to satisfy this Section 13.02(B). If the Plan Administrator must disregard
an amendment because the amendment would violate clause (1) or clause (2), the Plan Administrator must maintain a schedule of the early retirement option or other optional forms of
benefit the Plan must continue for the affected Participants. 

        13.03    AMENDMENT BY PROTOTYPE PLAN SPONSOR.    The Prototype Plan Sponsor (or the mass submitter, as agent of the
Prototype Plan Sponsor), without the Employer's consent, may amend the
Plan and Trust, from time to time, in order to conform the Plan and Trust to any requirement for qualification of the Plan and Trust under the Internal Revenue Code. The Prototype Plan Sponsor may not
amend the Plan in any manner which would modify any election made by the Employer under the Plan without the Employer's written consent. Furthermore, the Prototype Plan Sponsor may not amend the Plan
in any manner which would violate the proscriptions of Section 13.02(B). If the Prototype Plan Sponsor does not adopt the amendments made by the mass submitter, it will no longer be the sponsor
of an identical or minor modifier Prototype Plan of the mass submitter. 

        13.04    PLAN TERMINATION OR SUSPENSION.    The Employer subject to Section 13.02(B) and by proper Employer
action has the right, at any time, to suspend or discontinue its contributions under the Plan and thereafter to continue to maintain the Plan (subject to such suspension or discontinuance) until the
Employer terminates the Plan. The Employer subject to Section 13.02(B) and by proper Employer action has the right, at any time, to terminate this Plan and the Trust created and maintained
under the Plan. The Plan will terminate upon the first to occur of the following: 

        (a)  The
date terminated by proper action of the Employer; or 

        (b)  The
dissolution or merger of the Employer, unless a successor makes provision to continue the Plan, in which event the successor must substitute itself as the Employer
under this Plan. Any termination of the Plan resulting from this Paragraph (b) is not effective until compliance with any applicable notice requirements under ERISA. 

        13.05    FULL VESTING ON TERMINATION.    Upon either full or partial termination of the Plan, or, if applicable, upon
complete discontinuance of profit sharing plan contributions to the Plan, an affected Participant's right to his/her Account Balance is 100% Vested, irrespective of the Vested percentage which
otherwise would apply under Article V. 

        13.06    POST TERMINATION PROCEDURE AND DISTRIBUTION.    

        (A)    General Procedure.    Upon termination of the Plan, the distribution provisions of Article VI remain
operative, with the following exceptions: 

        (1)  if
the Participant's Vested Account Balance does not exceed $5,000 (or exceeds $5,000 but is not "immediately distributable" in accordance with
Section 6.01(A)(5)), the Plan Administrator will direct the Trustee to distribute in cash (subject to Section 10.08) the Participant's Vested Account Balance to him/her in lump sum as
soon as administratively practicable after the Plan terminates; and 

        (2)  if
the present value of the Participant's Vested Account Balance exceeds $5,000 and is immediately distributable, the Participant or the Beneficiary, may elect to have
the Trustee commence distribution in cash (subject to Section 10.08) of his/her Vested Account Balance in a lump sum as soon as administratively practicable after the Plan terminates. If a
Participant with consent rights under this paragraph (2) does not elect an immediate lump sum distribution with spousal consent if required, to liquidate the Trust, the Plan Administrator will
purchase a deferred 

69

 

annuity contract for each Participant which protects the Participant's distribution rights under the Plan. 

        (B)    Profit Sharing Plan.    If the Plan is a profit sharing plan, in lieu of applying Section 13.06(A) and
the distribution provisions of Article VI, the Plan Administrator will direct the Trustee to distribute in cash (subject to Section 10.08) each Participant's Vested Account Balance, in
lump sum, as soon as administratively practicable after the termination of the Plan, irrespective of the Participant's Vested Account Balance, the Participant's age and whether the Participant
consents to that distribution. This paragraph does not apply if: (1) the Plan at termination provides an annuity option which is a Protected Benefit and which the Employer may not eliminate by
Plan amendment; or (2) as of the period between the Plan termination date and the final distribution of assets, the Employer maintains any other defined contribution plan (other than an ESOP).
The Employer, in an Addendum to its Adoption Agreement, may elect not to have this paragraph apply. 

        (C)    Distribution restrictions under Code §401(k).    If the Plan includes a 401(k) arrangement
or if the Plan holds transferred assets described in Section 13.07 such that in either case, the distribution restrictions of Sections 14.03(d) and 14.11 apply, a Participant's
restricted balances are distributable on account of Plan termination, as described in this Section 13.06, only if: (a) the Employer does not maintain a successor plan and the Plan
Administrator distributes the Participant's entire Vested Account Balance in a lump sum; or (b) the Participant otherwise is entitled under the Plan to a distribution of his/her Vested Account
Balance. 

        A
successor plan under clause (b) is a defined contribution plan (other than an ESOP) maintained by the Employer (or by a Related Employer) at the time of the termination of the
Plan or within the period ending twelve months after the final distribution of assets. However, a plan is not a successor plan if less than 2% of the Employees eligible to participate in the
terminating Plan are eligible to participate (beginning 12 months prior to and ending 12 months after the Plan's termination date) in the potential successor plan. 

        (D)    "Lost Participants."    If the Plan Administrator is unable to locate any Participant or Beneficiary whose
Account becomes distributable upon Plan termination, the Plan Administrator will apply Section 9.11 except Section 9.11(B) does not apply. 

        (E)    Continuing Trust Provisions.    The Trust will continue until the Trustee in accordance with the direction of
the Plan Administrator has distributed all of the benefits under the Plan. On each valuation date, the Plan Administrator will credit any part of a Participant's Account Balance retained
in the Trust with its share of the Trust net income, gains or losses. Upon termination of the Plan, the amount, if any, in a suspense account under Article III will revert to the Employer,
subject to the conditions of the Treasury regulations permitting such a reversion. A resolution or an amendment to discontinue all future benefit accrual but otherwise to continue maintenance of this
Plan, is not a termination for purposes of this Section 13.06. 

        13.07    MERGER/DIRECT TRANSFER.    The Trustee possesses the specific authority to enter into merger agreements or
direct transfer of assets agreements with the trustees of other retirement plans described in Code §401(a), including an elective transfer, and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. Except as provided in Section 13.07(A), the Trustee may not consent to, or be a party to, any merger or consolidation with
another plan, or to a transfer of assets or liabilities to another plan (or from the other plan to this Plan), unless immediately after the merger, consolidation or transfer, the surviving plan
provides each Participant a benefit equal to or greater than the benefit each Participant would have received had the transferring plan terminated immediately before the merger or the consolidation or
the transfer. The Trustee will hold, administer and distribute the transferred assets as a part of the Trust Fund and the 

70

 

Trustee must maintain a separate Employer contribution Account for the benefit of the Employee on whose behalf the Trustee accepted the transfer in order to reflect the value of the transferred
assets. 

        The
Trustee may accept a direct transfer of plan assets on behalf of an Employee prior to the date the Employee satisfies the Plan's eligibility conditions. If the Trustee accepts such a
direct transfer of plan assets, the Plan Administrator and the Trustee must treat the Employee as a limited Participant as described in Section 4.04. 

        Sections 13.07(A)
and (B) are effective for elective transfers made on or following September 6, 2000. Under an elective transfer which is made pursuant to
Section 13.07(A) or (B), the Protected Benefits in the transferring plan are not required to be preserved under Section 13.02(B), except as provided in Section 13.07(B). 

        (A)    Distributable Event Elective Transfer.    The Trustee may consent to, or be a party to, a merger, consolidation
or transfer of assets with another qualified plan in accordance with this Section 13.07(A). 

        A
transfer between qualified plans is a distributable event elective transfer if: (1) the Participant has a right to immediate distribution from the transferor plan;
(2) the transfer is voluntary, under a fully informed election by the Participant; (3) the Participant has an alternative that retains his/her Protected Benefits (including an option to
leave his/her benefit in the transferor plan, if that plan is not terminating); (4) the transferor plan satisfies applicable consent and joint and survivor annuity requirements of the Code;
(5) the amount transferred, together with the amount of any contemporaneous direct rollover of the Participant's remaining Vested Account Balance, constitutes the Participant's entire Vested
Account Balance; (6) the Participant has a 100% Vested interest in the transferred benefit in the transferee plan; and (7) if the transfer is from this Plan to a defined benefit
plan, the transferee plan provides a benefit for the affected Participant equal to the benefit (expressed as an annuity payable at normal retirement age) derived solely with respect to the transferred
assets. 

        An
elective transfer under this Section 13.07(A) may occur between qualified plans of any type. Any direct transfer of assets from a defined benefit plan to this Plan which does
not satisfy the requirements of this Section 13.07(A) renders the Plan individually-designed. See Section 7.12. 

        Commencing
January 1, 2002, the Trustee may not undertake an elective transfer of a Participant's Account under this Section 13.07(A) if the Participant is eligible to
receive an immediate distribution of his/her entire Vested Account Balance which would consist entirely of an eligible rollover distribution as described in Section 6.10(D). 

        (B)    Transaction/Employment Change Elective Transfer.    The Trustee may consent to, or be a party to, a merger,
consolidation or transfer of assets with another qualified defined contribution plan in accordance with this Section 13.07(B). 

        A
transfer is a transaction or employment change transfer irrespective of whether the Participant has a right to an immediate distribution from the transferor plan provided:
(1) the transfer satisfies requirements (2) and (3) of Section 13.07(A); (2) the transfer only may occur as between plans described in applicable Treasury
regulations; (3) the transfer must occur in connection with a merger, asset or stock acquisition, or change in employment resulting in the participant's loss of right to additional allocations
in the transferor plan or in such other circumstances as described in applicable Treasury regulations; (4) the transfer must consist of the Participant's entire Vested and
non-Vested Account Balance within the transferor plan; and (5) the transferee plan must protect the QJSA and QPSA benefits (if any) in the transferor plan. 

        (C)    Other Transfers.    Any transfer which is not an elective transfer under Sections 13.07(A) or 13.07(B)
and which includes Protected Benefits is subject to Section 13.02(B). The trustee of the transferee plan in receipt of assets which are Protected Benefits must preserve the Protected Benefits 

71

 

in accordance with applicable Treasury regulations. If the transferor plan contains a 401(k) arrangement with restricted balances as described in Section 14.11, such balances remain subject in
the transferee plan to the distribution restrictions described in Section 14.03(d). Any transfer under this Section 13.07(C) from a defined benefit plan to this Plan must be in the form
of the transfer of a paid up individual annuity contract which guarantees the payment of benefits in accordance with the transferor plan. Notwithstanding any Plan language to the contrary, if this
Plan is a target benefit or money purchase pension plan, and the Trustee merges or the Employer converts by amendment the Plan into another type of defined contribution plan, the Employer
operationally may elect whether to vest immediately the Participants' Account Balances. 

 
 

ARTICLE XIV
  CODE SECTION 401(k) AND CODE SECTION 401(m) ARRANGEMENTS    
  

        14.01    APPLICATION.    This Article XIV applies to the Plan only if the Employer is maintaining its Plan
under a Code §401(k) Adoption Agreement. 

        14.02    401(k) ARRANGEMENT.    The Employer under Article III of its Adoption Agreement will elect the terms
of the 401(k) arrangement as described in Code §401(k)(2), if any, under the Plan. If the Plan is a Standardized Plan, the 401(k) arrangement must be a salary reduction arrangement.
If the Plan is a Nonstandardized Plan, the 401(k) arrangement may be a salary reduction arrangement or a cash or deferred arrangement, or both. 

        (A)    Salary Reduction Arrangement.    If the Employer in its Adoption Agreement Section 3.01 elects a salary
reduction arrangement, a Participant (or an Employee in anticipation of becoming a Participant) may file a salary reduction agreement with the Plan Administrator. The salary reduction agreement
may not be effective earlier than the following date which occurs last: (1) the Participant's Plan Entry Date (or, in the case of a reemployed Employee, his/her re-participation
date under Article II); (2) the execution date of the Participant's salary reduction agreement; (3) the date the Employer adopts the 401(k) arrangement by executing the Adoption
Agreement; or (4) the effective date of the 401(k) arrangement, as specified in the Adoption Agreement. 

        A
salary reduction agreement must specify the dollar amount of Compensation or percentage of Compensation the Participant wishes to defer. The salary reduction agreement will apply only
to Compensation which becomes currently available to the Participant after the effective date of the salary reduction agreement. The Employer will apply a salary reduction election to the
Participant's Compensation as determined under Section 1.07 (and to increases in such Compensation) unless the Participant elects in his/her salary reduction agreement to limit the reduction to
certain Compensation. The Plan Administrator in the Plan's salary reduction agreement form, subject to the Plan terms and applicable Revenue Service guidance, will specify additional rules and
restrictions applicable to a Participant's salary reduction agreement. 

        (B)    Cash or Deferred Arrangement.    If the Employer in its Adoption Agreement Section 3.02 elects a cash or
deferred arrangement, a Participant may elect to make a cash election against his/her proportionate share of the Employer's cash or deferred contribution, in accordance with the Employer's Adoption
Agreement elections. A Participant's proportionate share of the Employer's cash or deferred contribution is the percentage of the total cash or deferred contribution which bears the same ratio that
the Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for the Plan Year. For purposes of determining each Participant's proportionate share of the cash
or deferred contribution, a Participant's Compensation is his/her Compensation as determined
under Section 1.07, excluding any effect the proportionate share may have on the Participant's Compensation for the Plan Year. The Plan Administrator will determine the proportionate share
prior to the Employer's actual contribution to the Trust, to provide the Participants the opportunity to file 

72

 

cash elections. The Employer will pay directly to the Participant the portion of his/her proportionate share the Participant has elected to receive in cash. 

        (C)    Negative Election.    The Employer in its Adoption Agreement may elect to apply prospectively to its Plan the
negative election provisions of this Section 14.02(C). Under a negative election, the Employer automatically will reduce the Compensation of each Participant who is not deferring an amount at
least equal to the negative election amount, by the required election amount, except those Participants who timely make a contrary election under Section 14.02(C)(1). Participants deferring an
amount equal to or greater than the negative election amount are not subject to the Plan's negative election provisions. Amounts deferred under negative election are treated as elective deferrals for
all purposes under the Plan. An Employer in its Adoption Agreement must elect whether the negative election applies to all Participants as of the effective date of the negative election or only to
Employees whose Plan Entry Date is on or following the effective date of the negative election. 

        (1)  Participant's contrary election. A Participant may at any time elect not to defer any Compensation or to defer an amount
which is less than the negative election amount ("contrary election"). A Participant's contrary election generally is effective as of the first payroll period for the month which follows the
Participant's contrary election. However, a Participant may make a contrary election which is effective: (1) for the first payroll period in which he/she becomes a Participant if the
Participant makes a contrary election within a reasonable period following the Participant's Entry Date and before the Compensation to which the election applies becomes currently available; or
(2) for the first payroll period following the effective date of the Employer's adoption of the negative election, if the Participant makes contrary election not later than the effective date
of the negative election. A Participant's contrary election continues in effect until the Participant subsequently changes his/her Salary Reduction Agreement. 

        (2)  Negative election notice. If the Employer in its Adoption Agreement adopts the negative election provision, the Plan
Administrator must provide a notice to each Eligible Employee which explains the effect of the negative election and a Participant's right to make a contrary election, including the procedure and
timing applicable to the contrary election. The Plan Administrator must provide the notice to an Eligible Employee a reasonable period prior to that Employee's commencement of participation in the
Plan subject to the negative election. A Plan Administrator also must notify annually those Participants then subject to the negative election of the existing negative election deferral percentage and
the Participant's right to make a contrary election, including the procedure and timing applicable to the contrary election. 

        (D)    Safe Harbor 401(k) Plan.    The Employer in its Adoption Agreement may elect to apply to its Plan the safe
harbor provisions of this Section 14.02(D). Except as otherwise provided in this Plan, in the Code or in other applicable guidance, an Employer must elect the safe harbor plan provisions of
this Section 14.02(D) and must satisfy the applicable notice requirements prior to the beginning of the Plan
Year to which the safe harbor provisions apply. In addition, except as otherwise indicated, the electing Employer must apply the safe harbor provisions for the entire safe harbor Plan Year, including
any short Plan Year. The provisions of this Section 14.02(D) apply to an electing Employer notwithstanding any contrary provision of the Plan and all other remaining Plan terms continue to
apply to the Employer's safe harbor plan. An Employer which elects and operationally satisfies the safe harbor provisions of this Section 14.02(D) is not subject to the nondiscrimination
provisions of Section 14.08 (ADP test). An electing Employer which provides additional matching contributions as described in Section 14.02(D)(3) is subject to the nondiscrimination
provisions of Section 14.09 (ACP test), unless the additional matching contributions satisfy the ACP test safe harbor described in Section 14.02(D)(3). 

        (1)  Safe Harbor—Compensation. For purposes of this Section 14.02(D), Compensation is limited as described
in Section 1.07(E) and for purposes of allocating the Employer's safe harbor contribution 

73

 

and safe harbor matching contribution, the Employer must elect under its Adoption Agreement a nondiscriminatory definition of Compensation as described in Section 1.07(F). An Employer in its
Adoption Agreement also may elect to limit the amount of Compensation which is subject to deferral to any reasonable definition which: (a) permits a Participant to receive the maximum matching
contribution, if any, available under the Plan; or (b) limits deferrals under the Plan to a whole percentage or dollar amount. 

        (2)  Safe Harbor Contributions/ADP test safe harbor. An Employer which elects under this Section 14.02(D) to apply the
safe harbor provisions, must make a contribution to the Plan which will satisfy the ADP test safe harbor ("safe harbor contribution"). The Employer in its Adoption Agreement must elect whether the
Employer will make its safe harbor contribution in the form of: (a) a safe harbor nonelective contribution; (b) a basic matching contribution; or (c) an enhanced matching
contribution. A safe harbor nonelective contribution is a fixed nonelective contribution in an amount the Employer elects in its Adoption Agreement and must equal at least 3% of each Participant's
Compensation. A basic matching contribution is a fixed matching contribution equal to 100% of a Participant's elective deferrals which do not exceed 3% of Compensation, plus 50% of elective deferrals
which exceed 3%, but which do not exceed 5% of Compensation. An enhanced matching contribution is a fixed matching contribution made in accordance with any formula the Employer elects in its Adoption
Agreement under which, at any rate of elective deferrals, a Participant receives a matching contribution which is at least equal to the match the Participant would receive under the basic matching
contribution formula and under which the rate of match does not increase as the rate of deferrals increases. Under a basic or enhanced safe harbor match, a Highly Compensated Employee may not receive
a greater rate of match than any Nonhighly Compensated Employee. The Employer in its Adoption Agreement must elect the applicable time period for computing the Employer's safe harbor basic or enhanced
matching contributions. The Plan Administrator must allocate the Employer's safe harbor contribution without regard to the Section 3.06 allocation conditions, but the Plan Administrator will
not allocate a safe harbor contribution where the allocation would exceed a Participant's Code §§415 or 402(g) limitation or where the Participant is suspended from
making deferrals under Section 14.11(A)(1). The Plan Administrator must allocate the safe harbor contribution to all Participants unless the Employer in an Addendum to its Adoption Agreement
elects to limit the safe harbor allocation to Nonhighly Compensated Employees. A Participant's Account Balance attributable to safe harbor contributions at all times 100% Vested and subject to the
distribution restrictions described in Section 14.03(d). An Employer's safe harbor contribution is not subject to nondiscrimination testing under Section 14.08 (ADP test) and if the safe
harbor contribution is in the form of a basic matching contribution, it is not subject to nondiscrimination testing under Section 14.09
(ACP test). The Employer in its Adoption Agreement must elect whether to satisfy the ACP test safe harbor Section 14.02(D)(3)(a) amount limitation with respect to the Employer's enhanced
matching contributions or to test, using current year testing, its enhanced matching contributions under Section 14.09 (ACP test). 

        An
Employer electing Section 14.02(D) which in its Adoption Agreement also elects to apply permitted disparity in allocating the Employer's nonelective contributions, may not
include within the permitted disparity formula allocation, any of the Employer's safe harbor contributions. An Employer in its Adoption Agreement may elect to make the safe harbor contribution to
another defined contribution plan maintained by the Employer provided: (i) the Employer maintains its safe harbor 401(k) Plan using a Nonstandardized 401(k) Adoption Agreement; or
(ii) the Employer makes its safe harbor contribution to another defined contribution plan paired with the Employer's safe harbor 401(k) Plan. 

        (3)  Additional Matching Contributions/ACP test safe harbor. An Employer which satisfies the ADP test safe harbor under
Section 14.02(D)(2), in its Adoption Agreement may elect to make matching contributions to the Plan which are in addition to the Employer's safe harbor contributions 

74

 

and which the Employer does not use to satisfy the ADP test safe harbor ("additional matching contributions"). The Employer in its Adoption Agreement must elect whether to subject the additional
matching contributions to the ACP test safe harbor requirements of this Section 14.02(D)(3), or for the Plan Administrator to test, using current year testing, the additional matching
contributions for nondiscrimination under Section 14.09 (ACP test). Under the ACP test safe harbor: (a) the Employer may not make matching contributions with respect to a Participant's
deferral contributions which exceed 6% of Plan Year Compensation; (b) the amount of any discretionary matching contribution allocated to any Participant in Plan Years commencing after 1999 may
not exceed 4% of the Participant's Plan Year Compensation; (c) the rate of matching contributions may not increase as the rate of deferrals increases; and (d) subject to application of
any Section 3.06 allocation conditions, a Highly Compensated Employee may not receive a greater rate of match than any Nonhighly Compensated Employee. The Employer must elect in its Adoption
Agreement the vesting schedule, allocation conditions and distribution provisions applicable to the Employer's additional matching contributions described in this Section 14.02(D)(3). If the
Employer in its Adoption Agreement has elected to permit Employee contributions under the Plan: (i) any Employee contributions do not satisfy the ACP test safe harbor and the Plan Administrator
must test the Employee contributions under Section 14.09 (ACP test) using current year testing; and (ii) if the Employer in its Adoption Agreement elects to match the Employee
contributions, the Plan Administrator in applying the 6% amount limit in clause (a) must aggregate a Participant's deferral contribution and Employee contributions which are subject to the 6%
limit. 

        (4)  Safe Harbor notice. The Plan Administrator annually must provide a safe harbor notice to each Participant a reasonable
period prior to each Plan Year for which the Employer in its Adoption Agreement has elected to apply the safe harbor provisions. For this purpose, the Plan Administrator is deemed to provide timely
notice if the Plan Administrator provides the safe harbor notice at least 30 days and not more than 90 days prior to the beginning of the safe harbor Plan Year. The safe harbor notice
must provide comprehensive information regarding the Participants' rights and obligations under the Plan and must be written in a manner calculated to be understood by the average Participant. If an
Employee becomes eligible to participate in the Plan after the Plan Administrator has provided the
annual safe harbor notice, the Plan Administrator must provide the safe harbor notice no later than the Employee's Plan Entry Date. A Participant may make or modify a salary reduction agreement under
the Employer's safe harbor 401(k) Plan for 30 days following receipt of the safe harbor notice, or if greater, for the period the Plan Administrator specifies in the salary reduction agreement. 

        (5)  Mid-year changes in safe harbor status. The Employer may amend its 401(k) Plan during any Plan Year to become
a safe harbor plan under this Section 14.02(D) for that Plan Year, provided: (a) the Plan then is using current year testing; (b) the Employer amends the Plan to add the safe
harbor provisions not later than 30 days prior to the end of the Plan Year and to apply the safe harbor provisions for the entire Plan Year; (c) the Employer elects to satisfy the safe
harbor contribution requirement using the safe harbor nonelective contribution; and (d) the Plan Administrator provides a notice to Participants prior to the beginning of the Plan Year for
which the safe harbor amendment may become effective, that the Employer later may amend the Plan to a safe harbor plan for that Plan Year using the safe harbor nonelective contribution and if the
Employer so amends the Plan, the Plan Administrator will provide a supplemental notice to Participants at least 30 days prior to the end of that Plan Year informing Participants of the
amendment. The Plan Administrator then must timely provide any supplemental notice required under this Section 14.02(D)(5). Except as otherwise specified, the Participant notices described in
this Section 14.02(D)(5) also must satisfy the requirements applicable to safe harbor notices under Section 14.02(D)(4). 

        The
Employer may amend its safe harbor 401(k) Plan during a Plan Year to reduce or eliminate prospectively, any safe harbor contribution which is a basic matching or enhanced matching 

75

 

contribution (under Section 14.02(D)(2)) provided: (i) the Plan Administrator provides a notice to the Participants which explains the effect of the amendment, specifies the amendment's
effective date and informs Participants they will have a reasonable opportunity to modify their salary reduction agreements, and if applicable, Employee contributions; (ii) Participants have a
reasonable opportunity and period prior to the effective date of the amendment to modify their salary reduction agreements, and if applicable, Employee contributions; and (iii) the amendment is
not effective earlier than the later of: (a) 30 days after the Plan Administrator gives notice of the amendment; or (b) the date the Employer adopts the amendment. An Employer
which amends its safe harbor Plan to eliminate or reduce the safe harbor matching contribution under this Section 14.02(D)(5), or which terminates the Plan under Section 13.04 effective
during the Plan Year, must continue to apply all of the safe harbor requirements of this Section 14.02(D) until the amendment or termination becomes effective and also must apply for the entire
Plan Year, using current year testing, the nondiscrimination test under Section 14.08 (ADP test), and if applicable, the nondiscrimination test under Section 14.09 (ACP test). 

        An
Employer maintaining a profit sharing plan, stock bonus plan or pre-ERISA money purchase pension plan may during a Plan Year amend prospectively its Plan to become a safe
harbor 401(k) plan provided: (a) the Employer's Plan is not a successor plan as described in Notice 98-1 or any subsequent applicable guidance; (b) the 401(k) arrangement is
in effect for at least 3 months during the Plan Year; (c) the Plan Administrator provides the safe harbor notice described in Section 14.02(D)(4) a reasonable time prior to and
not later than the effective date of the amendment; and (d) the Plan satisfies commencing on the effective date of the amendment, all of the safe harbor requirements of this
Section 14.02(D). 

        (E)    SIMPLE 401(k) Plan.    The Employer in its Standardized Code §401(k) Adoption Agreement may
elect to apply prospectively to its Plan the SIMPLE 401(k) provisions of this Section 14.02(E) if: (1) the Plan Year is the calendar year; (2) the Employer (including Related
Employers under Section 1.26) has no more than 100 Employees who received Compensation of at least $5,000 in the immediately preceding calendar year; and (3) the Employer does not
maintain any other plan as described in Code §219(g)(5), with respect to which contributions were made or benefits were accrued for Service by an eligible Employee in the Plan Year
to which the SIMPLE 401(k) provisions apply. If an electing Employer fails for any subsequent calendar year to satisfy all of the foregoing requirements, including where the Employer is involved in an
acquisition, disposition or similar transaction under which the Employer satisfies Code §410(b)(6)(C)(1), the Employer remains eligible to maintain the SIMPLE 401(k) Plan for two
additional calendar years following the last year in which the Employer satisfied the requirements. The provisions of this Section 14.02(E) apply to an electing Employer notwithstanding any
contrary provision in the Plan. 

        (1)  SIMPLE—Compensation. For purposes of this Section 14.02(E), Compensation is limited as described in
Section 1.07(E) and: (a) in the case of an Employee, means W-2 wages but increased by the Employee's elective deferrals under a 401(k) arrangement, SIMPLE IRA, SARSEP or
403(b) annuity; and (b) in the case of a Self Employed Individual, means Earned Income determined without regard to contributions made to this Plan. 

        (2)  Participant deferral contributions. Each eligible Employee may enter into a salary reduction agreement to make deferral
contributions into the SIMPLE 401(k) Plan in an amount not exceeding $6,000 per calendar year, or such other amount as in effect under Code §408(p)(2)(E). A Participant may elect to
make deferral contributions or modify a salary reduction agreement at any time in accordance with the Plan Administrator's SIMPLE 401(k) salary reduction agreement form, but must be provided at least
60 days prior to the beginning of each SIMPLE Plan Year or commencement of participation for this purpose. A Participant also may at any time terminate prospectively, his/her salary reduction
agreement applicable to the Employer's SIMPLE 401(k) Plan. 

76

 

        (3)  Employer SIMPLE 401(k) contributions. An Employer which elects under this Section 14.02(E) to apply the SIMPLE
401(k) provisions, annually must make a SIMPLE 401(k) contribution to the Plan as described in this Section 14.02(E)(3). The Employer operationally must elect whether the Employer will
contribute: (1) a matching contribution equal to each Participant's deferral contributions but not exceeding 3% of Plan Year Compensation or such lower percentage as the Employer may elect
under Code §408(p)(2)(C)(ii)(II); or (2) a nonelective contribution equal to 2% of Plan Year Compensation for each Participant whose Compensation is at least $5,000. The
Employer in its Adoption Agreement may not elect to apply any Section 3.06 allocation conditions to the Plan Administrator's allocation of Employer SIMPLE contributions. 

        (4)  SIMPLE 401(k) notice. The Plan Administrator must provide notice to each Participant a reasonable period of time before
the 60th day prior to the beginning of each SIMPLE 401(k) Plan Year, describing the Participant's deferral election rights and the Employer's matching or nonelective contributions which the Employer
will make for the Plan Year described in the notice. 

        (5)  Application of remaining Plan provisions. All contributions to the SIMPLE 401(k) Plan are Annual Additions subject to the
limitations set forth in Article III. No contributions other than those described in this Section 14.02(E) or rollover contributions described in Section 4.04 may be made to the
SIMPLE 401(k) Plan. All contributions to the SIMPLE 401(k) Plan are 100% Vested at all times and in the event of a conversion of a non SIMPLE Plan into a SIMPLE 401(k) Plan, all Account Balances in
existence on the first day of the Plan Year to which the SIMPLE 401(k) provisions apply, become 100% Vested. A SIMPLE 401(k) Plan is not subject to nondiscrimination testing under Section 14.08
(ADP test) or Section 14.09 (ACP test) of the Plan and is not subject to the top heavy provisions of Article XII. Except as otherwise described in this Section 14.03(E), if an
Employer has elected in its Adoption Agreement to apply the SIMPLE 401(k) provisions of this Section 14.03(E), the Plan Administrator will apply the remaining Plan provisions to Employer's
Plan. 

        (F)    Election not to participate.    A Participant's or Employee's election not to participate, pursuant to
Section 2.06, includes his/her right to enter into a salary reduction agreement or to share in the allocation of a cash or deferred contribution. 

        14.03    DEFINITIONS.    For purposes of this Article XIV: 

        (a)  "Compensation"
means, except as otherwise provided in this Article XIV, Compensation as defined for nondiscrimination purposes in Section 1.07(F). 

        (b)  "Current
year testing" means for purposes of the ADP test described in Section 14.08 and the ACP test described in Section 14.09, the use of data from the
testing year in determining the ADP or ADP for the Nonhighly Compensated Group. 

        (c)  "Deferral
contributions" are salary reduction contributions and cash or deferred contributions the Employer contributes to the Trust on behalf of an eligible Employee,
irrespective of whether, in the case of cash or deferred contributions, the contribution is at the election of the Employee. For salary reduction contributions, the terms "deferral contributions" and
"elective deferrals" have the same meaning. 

        (d)  "Distribution
restrictions" means the Employee may not receive a distribution of the restricted balances described in Section 14.11 (nor earnings on those
contributions) except in the event of: (1) the Participant's death, Disability, Separation from Service (which for purposes of this Section 14.03(d), means as the Plan Administrator
determines under applicable Revenue Service guidance, including the
"same desk" rule and Revenue Ruling 2000-27 with respect to certain asset sale transactions) or attainment of age 591/2, (2) financial hardship satisfying
Section 14.11(A), (3) Plan termination, without establishment of a successor defined contribution plan (other than an ESOP), (4) a sale by a corporate Employer of substantially
all of the assets (within the meaning of Code §409(d)(2)) used in a trade or business of the Employer, to another corporation, but only to 

77

 

an Employee who continues employment with the corporation acquiring those assets, or (5) a sale by a corporate Employer of its interest in a subsidiary (within the meaning of
Code §409(d)(3)), but only to an Employee who continues employment with the subsidiary. A distribution described in clauses (3), (4) or (5) must be a lump sum
distribution, and otherwise must satisfy Code §401(k)(10). 

        (e)  "Elective
deferrals" are all salary reduction contributions and that portion of any cash or deferred contribution which the Employer contributes to the Plan at the
election of an eligible Employee. Any portion of a cash or deferred contribution contributed to the Trust because of the Employee's failure to make a cash election is an elective deferral. However,
any portion of a cash or deferred contribution over which the Employee does not have a cash election is not an elective deferral. Elective deferrals do not include amounts which have become currently
available to the Employee prior to the election nor amounts designated as an Employee contribution at the time of deferral or contribution. Elective deferrals are 100% vested at all times. 

        (f)    "Eligible
Employee" means, for purposes of the ADP test described in Section 14.08, an Employee who is eligible to enter into a salary reduction agreement for all
or any portion of the Plan Year, irrespective of whether he/she actually enters into such an agreement, and a Participant who is eligible for an allocation of the Employer's cash or deferred
contribution for the Plan Year. For purposes of the ACP test described in Section 14.09, an eligible Employee is a Participant who is eligible to receive an allocation of matching contributions
(or would be eligible if he/she made the type of contributions necessary to receive an allocation of matching contributions) and a Participant who is eligible to make Employee contributions,
irrespective of whether he/she actually makes Employee contributions. An Employee continues to be an eligible Employee during a period the Plan suspends the Employee's right to make elective deferrals
or Employee contributions following a hardship distribution. 

        (g)  "Employee
contributions" are nondeductible contributions made by a Participant and designated, at the time of contribution, as an Employee contribution. Elective
deferrals and deferral contributions are not Employee contributions. Employee contributions are subject to Article IV. 

        (h)  "Highly
Compensated Employee" means an eligible Employee who satisfies the definition in Section 1.14 of the Plan. 

        (i)    "Highly
Compensated Group" means the group of eligible Employees who are Highly Compensated Employees for the Plan Year. 

        (j)    "Matching
contributions" are contributions made by the Employer on account of elective deferrals under a 401(k) arrangement or on account of Employee contributions.
Matching contributions also include Participant forfeitures allocated on account of such elective deferrals or Employee contributions. 

        (k)  "Nonelective
contributions" are contributions made by the Employer which are not subject to a deferral election by an Employee and which are not matching contributions. 

        (l)    "Nonhighly
Compensated Employee" means an eligible Employee who is not a Highly Compensated Employee. 

        (m)  "Nonhighly
Compensated Group" means the group of eligible Employees who are Nonhighly Compensated Employees for the Plan Year. 

        (n)  "Prior
year testing" means for purposes of the ADP test described in Section 14.08 and the ACP test described in Section 14.09, the use of data from the
Plan Year immediately prior to the testing year in determining the ADP or ACP for the Nonhighly Compensated Group. 

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        (o)  "Qualified
matching contributions" are matching contributions which are 100% Vested at all times and which are subject to the distribution restrictions described in
Section 14.03(d). Matching contributions are not 100% Vested at all times if the Employee has a 100% Vested interest because of his/her Years of Service taken into account under a vesting
schedule. Any matching contributions allocated to a Participant's qualified matching contributions Account under the Plan automatically satisfy and are subject to the definition of qualified matching
contributions. 

        (p)  "Qualified
nonelective contributions" are nonelective contributions which are 100% Vested at all times and which are subject to the distribution restrictions described
in Section 14.03(d). Nonelective contributions are not 100% Vested at all times if the Employee has a 100% Vested interest because of his/her Years of Service taken into account under a vesting
schedule. Any nonelective contributions allocated to a Participant's qualified nonelective contributions Account under the Plan automatically satisfy and are subject to the definition of qualified
nonelective contributions. 

        (q)  "Regular
matching contributions" are matching contributions which are not qualified matching contributions. 

        (r)  "Safe
harbor contributions" are Employer nonelective or matching contributions which the Plan Administrator applies to satisfy the ADP test safe harbor under
Code §401(k)(12)(B) or (C) and which are 100% Vested at all times and subject to the distribution restrictions described in Section 14.03(d). Safe harbor contributions
are not 100% Vested at all times if the Employee has a 100% Vested interest because of his/her Years of Service taken into account under a vesting schedule. Any nonelective contributions allocated to
a Participant's safe harbor contributions Account, automatically satisfy and are subject to the definition of safe harbor contributions. 

        (s)  "Salary
reduction agreement" is a written election by a Participant to make salary reduction contributions as described in Section 14.02(A). 

        (t)    "Salary
reduction contributions" mean Employer contributions elected by a Participant to be made from the Participant's Compensation pursuant to a salary reduction
agreement and which the Plan Administrator must allocate to the electing Participant's Account. 

        (u)  "Testing
year" means for purposes of the ADP test described in Section 14.08 and the ACP test described in Section 14.09, the Plan Year for which the ADP
or ACP test is being performed. 

79

   
        14.04    MATCHING CONTRIBUTIONS/ EMPLOYEE CONTRIBUTIONS.    The Employer in Adoption Agreement Section 3.01
may
elect to provide matching contributions. The Employer in Adoption Agreement Section 4.02 also may elect to permit a Participant to make Employee contributions. 

        14.05    DEFERRAL DEPOSIT TIMING/EMPLOYER CONTRIBUTION STATUS.    The Employer must make salary reduction
contributions to the Trust after withholding the corresponding Compensation from the Participant at the earliest date on which the contributions can reasonably be segregated from the Employer's
general assets. Furthermore, the Employer must make to the Trust salary reduction contributions, cash or deferred contributions, matching contributions (including qualified matching contributions),
qualified nonelective contributions, safe harbor contributions and SIMPLE contributions no later than the time prescribed by the Code or ERISA. Salary reduction contributions and cash or deferred
contributions are Employer contributions for all purposes under this Plan, except to the extent the Code prohibits the use of these contributions to satisfy the qualification requirements of the Code. 

        14.06    SPECIAL ACCOUNTING AND ALLOCATION PROVISIONS.    To make allocations under the Plan, the Plan Administrator
must establish for each Participant, consistent with the Employer's elections under its Adoption Agreement, a deferral contributions Account, a nonelective contributions Account, a qualified matching
contributions Account, a regular matching contributions Account, a qualified nonelective contributions Account, a safe harbor contributions Account and a SIMPLE contributions account. 

        (A)    Deferral contributions.    The Plan Administrator will allocate to each Participant's deferral contributions
Account the amount of deferral contributions the Employer makes to the Trust on behalf of the Participant. The Plan Administrator will make this allocation as of the last day of each Plan Year or more
frequently as it may determine to be appropriate and consistent with the Plan terms, including those providing for allocation of net income, gain or loss. 

        (B)    Matching contributions.    The Plan Administrator will allocate the Employer's matching contributions as of the
last day of each Plan Year or more frequently as the Plan Administrator may determine to be appropriate and consistent with the Plan terms, including those providing for allocation of net income, gain
or loss. The Plan Administrator may not allocate any fixed or discretionary matching contributions with respect to deferral contributions that are excess deferrals under Section 14.07. For this
purpose: (a) excess deferrals relate first to deferral contributions for the Plan Year not otherwise eligible for a matching contribution; and (b) if the Plan Year is not a calendar
year, the excess deferrals for a Plan Year are the last elective deferrals made for a calendar year. The Plan Administrator may not allocate a matching contribution to a Participant's Account to the
extent the matching contribution exceeds the
Participant's Annual Additions limitation in Part 2 of Article III. The provisions of Section 3.05 govern the treatment of any matching contribution the Plan Administrator
allocates contrary to this Section 14.06(B), and the Plan Administrator will compute a Participant's ACP under Section 14.09 by disregarding the forfeiture. 

        (1)  Fixed match. To the extent the Employer makes matching contributions under a fixed matching contribution formula set
forth in the Employer's Adoption Agreement, the Plan Administrator will allocate the matching contribution to the Account of the Participant on whose behalf the Employer makes that contribution. A
fixed matching contribution formula is a formula under which the Employer contributes a specified percentage or dollar amount on behalf of a Participant based on that Participant's deferral
contributions or Employee contributions eligible for a match. The Employer may contribute on a Participant's behalf under a specific matching contribution formula only if the Participant satisfies the
allocation conditions for matching contributions, if any, the Employer elects in Adoption Agreement Section 3.06. The Employer in 

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its Adoption Agreement may elect whether the Plan Administrator will allocate a fixed matching contribution as a qualified matching contribution or as a regular matching contribution. 

        (2)  Discretionary match. To the extent the Employer makes matching contributions under a discretionary formula, the Plan
Administrator will allocate the discretionary matching contributions to the Account of each Participant who satisfies the allocation conditions, if any, for matching contributions the Employer elects
in Adoption Agreement Section 3.06. The allocation of discretionary matching contributions to a Participant's Account is in the same proportion that each Participant's deferral contributions
bear to the total deferral contributions of all Participants. If the discretionary formula is a tiered formula, the Plan Administrator will make this allocation separately with respect to each tier of
deferral contributions, allocating in such manner the amount of the matching contributions made with respect to that tier. The Employer operationally may direct the Plan Administrator to allocate any
discretionary match as a regular matching contribution or as a qualified matching contribution. 

        (3)  Match on deferrals and Employee contributions. If the matching contribution formula applies both to deferral
contributions and to Employee contributions, the matching contributions apply first to deferral contributions. 

        (C)    Qualified nonelective contributions.    If the Employer operationally designates a nonelective contribution to
be a qualified nonelective contribution for the Plan Year, the Plan Administrator will allocate that qualified nonelective contribution to the qualified nonelective contributions Account of each
Participant eligible for an allocation of that designated contribution, as the Employer elects in Adoption Agreement Section 3.04. 

        (D)    Nonelective contributions.    If the Employer makes a nonelective contribution for the Plan Year which the
Employer does not designate as a qualified nonelective contribution, the Plan Administrator will
allocate the nonelective contribution in accordance with Adoption Agreement Section 3.04. For purposes of the nondiscrimination tests described in Sections 14.08 (ADP test), 14.09 (ACP
test) and 14.10 (multiple use limitation), the Plan Administrator may treat nonelective contributions allocated under this Section 14.06(D) as qualified nonelective contributions, if the
contributions otherwise satisfy the definition of qualified nonelective contributions. The Employer, to facilitate the Plan Administrator's correction of test failures under Sections 14.08,
14.09 and 14.10, also may make qualified nonelective contributions to the Plan irrespective of whether the Employer in its Adoption Agreement has elected to provide nonelective contributions. 

        (E)    Safe harbor contributions.    If the Employer elects under Section 14.02(D) to apply the safe harbor
provisions to the Plan, the Employer will allocate the safe harbor contributions to the safe harbor contributions Account of each Participant unless the Employer in an Addendum to its Adoption
Agreement elects to limit safe harbor allocations to Nonhighly Compensated Employees. 

        (F)    SIMPLE 401(k) Plan contributions.    If the Employer elects under Section 14.02(E) to apply the SIMPLE
401(k) provisions to the Plan, the Employer will allocate the SIMPLE contributions to the SIMPLE contributions Account of Participants eligible to receive an allocation of the Employer's SIMPLE
contribution (including Participants who make deferral contributions), as specified in Section 14.02(E). 

        14.07    ANNUAL ELECTIVE DEFERRAL LIMITATION.    

        (A)    Annual Elective Deferral Limitation.    An Employee's elective deferrals for a calendar year may not exceed the
Code §402(g) limitation ("402(g) limitation"). The 402(g) limitation is the greater of $7,000 or the adjusted amount determined by the Secretary of the Treasury. If, pursuant to a
salary reduction agreement or pursuant to a cash or deferral election, the Employer determines the Employee's elective deferrals to the Plan for a calendar year would exceed the 402(g) limitation, the 

81

 

Employer will suspend the Employee's salary reduction agreement, if any, until the following January 1 and pay in cash the portion of a deferral election which would result in the Employee's
elective deferrals for the calendar year exceeding the 402(g) limitation. If the Plan Administrator determines an Employee's elective deferrals already contributed to the Plan for a calendar year
exceed the 402(g) limitation, the Plan Administrator will distribute the amount in excess of the 402(g) limitation (the "excess deferral"), as adjusted for allocable income under
Section 14.07(C), no later than April 15 of the following calendar year. If the Plan Administrator distributes the excess deferral by the appropriate April 15, the excess deferral
is not an Annual Addition under Article III, and the Plan Administrator may make the distribution irrespective of any other provision under this Plan or under the Code. The Plan Administrator
will reduce the amount of excess deferrals for a calendar year distributable to the Employee by the amount of excess contributions (as determined in Section 14.08), if any, previously
distributed to the Employee for the Plan Year beginning in that calendar year. Elective deferrals distributed to an Employee as excess Annual Additions in accordance with Article III are not
taken into account under the Employee's 402(g) limitation. 

        (B)    More than One Plan.    If an Employee participates in another plan subject to the 402(g) limitation under which
he/she makes elective deferrals pursuant to a 401(k) arrangement, elective deferrals under a SARSEP, elective contributions under a SIMPLE IRA or salary reduction contributions to a
tax-sheltered annuity (irrespective of whether the Employer maintains the other plan), the Employee may provide to the Plan Administrator a written claim for excess deferrals made to the
Plan for a calendar year. The Employee must submit the claim no later than the March 1 following the close of the particular calendar year and the claim must specify the amount of the
Employee's elective deferrals under this Plan which are excess deferrals. If the Plan Administrator receives a timely claim, it will distribute the excess deferral (as adjusted for allocable income)
the Employee has assigned to this Plan, in accordance with the distribution procedure described in Section 14.07(A). 

        (C)    Allocable Income.    For purposes of making a distribution of excess deferrals pursuant to this
Section 14.07, allocable income means net income or net loss allocable to the excess deferrals for the calendar year (but not beyond the calendar year) in which the Employee made the excess
deferral, determined in a manner which is uniform, nondiscriminatory and reasonably reflective of the manner used by the Plan Administrator to allocate income to Participants' Accounts. 

        14.08    ACTUAL DEFERRAL PERCENTAGE (ADP) TEST.    For each Plan Year, the Plan Administrator must determine whether
the Plan's 401(k) arrangement satisfies either of the following ADP tests: 

          (i)  The
ADP for the Highly Compensated Group does not exceed 1.25 times the ADP of the Nonhighly Compensated Group; or 

        (ii)  The
ADP for the Highly Compensated Group does not exceed the ADP for the Nonhighly Compensated Group by more than two percentage points (or the lesser percentage
permitted by the multiple use limitation in Section 14.10) and the ADP for the Highly Compensated Group is not more than twice the ADP for the Nonhighly Compensated Group. 

        (A)    Calculation of ADP.    The ADP for a group is the average of the separate deferral percentages calculated for
each eligible Employee who is a member of that group. An eligible Employee's deferral percentage for a Plan Year is the ratio of the eligible Employee's deferral contributions for the Plan Year to the
Employee's Compensation for the Plan Year. In determining the ADP, the Plan Administrator must include any Highly Compensated Employee's excess deferrals, as described in Section 14.07(A), to
this Plan or to any other Plan of the Employer and the Plan Administrator will disregard any Nonhighly Compensated Employee's excess deferrals. The Plan Administrator operationally may include in the
ADP test, qualified nonelective contributions and 

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qualified matching contributions the Plan Administrator does not use in the ACP test. The Plan Administrator, under prior year testing, may include qualified nonelective contributions or qualified
matching contributions in determining the Nonhighly Compensated Employee ADP only if the Employer makes such contribution to the Plan by the end of the testing year and the Plan
Administrator allocates the contribution to the prior Plan Year. In determining whether the Plan's 401(k) arrangement satisfies either ADP test, the Plan Administrator will use prior year testing,
unless the Employer in Adoption Agreement Appendices A or B elects to use current year testing. An Employer may not change from current year testing to prior year testing except as provided in the
Code or in other applicable guidance. For the first Plan Year the Employer permits elective deferrals and the Plan is not a successor plan (as provided in the Code or in other applicable guidance),
under prior year testing, the prior year ADP for the Nonhighly Compensated Group is 3% unless the Employer in an Addendum to its Adoption Agreement elects to use the actual first year ADP for the
Nonhighly Compensated Group. 

        (B)    Special aggregation rule for Highly Compensated Employees.    To determine the deferral percentage of any
Highly Compensated Employee, the Plan Administrator must take into account any elective deferrals made by the Highly Compensated Employee under any other 401(k) arrangement maintained by the Employer,
unless the elective deferrals are to an ESOP. If the plans containing the 401(k) arrangements have different plan years, the Plan Administrator will determine the combined deferral contributions on
the basis of the plan years ending in the same calendar year. 

        (C)    Aggregation of certain 401(k) arrangements.    If the Employer treats two or more plans as a single plan for
coverage or nondiscrimination purposes, the Employer must combine the 401(k) arrangements under such plans to determine whether the plans satisfy the ADP test. This aggregation rule applies to the ADP
determination for all eligible Employees, irrespective of whether an eligible Employee is a Highly Compensated Employee or a Nonhighly Compensated Employee. An Employer may aggregate 401(k)
arrangements under this Section 14.08(C) only if the plans have the same plan years and use the same testing method. An Employer may not aggregate an ESOP (or the ESOP portion of a plan) with a
non-ESOP plan (or non-ESOP portion of a plan). If the Employer aggregating 401(k) arrangements under this Section 14.08(C) is using prior year testing, the Plan
Administrator must adjust the Nonhighly Compensated Group ADP for the prior year as provided in the Code or in other applicable guidance. 

        (D)    Characterization of excess contributions.    If, pursuant to this Section 14.08, the Plan Administrator
has elected to include qualified matching contributions in the ADP test, the excess contributions are attributable proportionately to deferral contributions and to qualified matching contributions
allocated on the basis of those deferral contributions. The Plan Administrator will reduce the amount of excess contributions for a Plan Year distributable to a Highly Compensated Employee by the
amount of excess deferrals (as determined in Section 14.07), if any, previously distributed to that Employee for the Employee's taxable year ending in that Plan Year. 

        (E)    Distribution of excess contributions.    If the Plan Administrator determines the Plan fails to satisfy the ADP
test for a Plan Year, the Trustee, as directed by the Plan Administrator, must distribute the excess contributions, as adjusted for allocable income under Section 14.08(F), during the next Plan
Year. However, the Employer may incur an excise tax with respect to the amount of excess contributions for a Plan Year not distributed to the appropriate Highly Compensated Employees during the first
21/2 months of that next Plan Year. The excess contributions are the amount of deferral contributions made by the Highly Compensated Employees which causes the Plan to fail the ADP
test. The Plan Administrator will determine the total amount of the excess contributions to the Plan by starting with the Highly Compensated Employee(s) who has the greatest deferral percentage,
reducing his/her
deferral percentage (but not below the next highest deferral percentage), then, if necessary, reducing the deferral percentage of the Highly Compensated Employee(s) at the next highest deferral 

83

 

percentage level, including the deferral percentage of the Highly Compensated Employee(s) whose deferral percentage the Plan Administrator already has reduced (but not below the next highest deferral
percentage), and continuing in this manner until the ADP for the Highly Compensated Group satisfies the ADP test. 

        After
the Plan Administrator has determined the total excess contribution amount, the Trustee, as directed by the Plan Administrator, then will distribute to each Highly Compensated
Employee his/her respective share of the excess contributions. The Plan Administrator will determine each Highly Compensated Employee's share of excess contributions by starting with the Highly
Compensated Employee(s) who has the highest dollar amount of elective deferrals, reducing his/her elective deferrals (but not below the next highest dollar amount of elective deferrals), then, if
necessary, reducing the elective deferrals of the Highly Compensated Employee(s) at the next highest dollar amount of elective deferrals including the elective deferrals of the Highly Compensated
Employee(s) whose elective deferrals the Plan Administrator already has reduced (but not below the next highest dollar amount of elective deferrals), and continuing in this manner until the Trustee
has distributed all excess contributions. 

        (F)    Allocable income.    To determine the amount of the corrective distribution required under this
Section 14.08, the Plan Administrator must calculate the allocable income for the Plan Year (but not beyond the Plan Year) in which the excess contributions arose. "Allocable income" means net
income or net loss. To calculate allocable income for the Plan Year, the Plan Administrator will use a uniform and nondiscriminatory method which reasonably reflects the manner used by the Plan
Administrator to allocate income to Participants' Accounts. 

        14.09    ACTUAL CONTRIBUTION PERCENTAGE (ACP) TEST.    For each Plan Year, the Plan Administrator must determine
whether the annual Employer matching contributions (other than qualified matching contributions used in the ADP test under Section 14.08), if any, and the Employee contributions, if any,
satisfy either of the following ACP tests: 

          (i)  The
ACP for the Highly Compensated Group does not exceed 1.25 times the ACP of the Nonhighly Compensated Group; or 

        (ii)  The
ACP for the Highly Compensated Group does not exceed the ACP for the Nonhighly Compensated Group by more than two percentage points (or the lesser percentage
permitted by the multiple use limitation in Section 14.10) and the ACP for the Highly Compensated Group is not more than twice the ACP for the Nonhighly Compensated Group. 

        (A)    Calculation of ACP.    The ACP for a group is the average of the separate contribution percentages calculated
for each eligible Employee who is a member of that group. An eligible Employee's contribution percentage for a Plan Year is the ratio of the eligible Employee's aggregate contributions for the Plan
Year to the Employee's Compensation for the Plan Year. "Aggregate contributions" are Employer matching contributions (other than qualified matching contributions used in the ADP test under
Section 14.08) and Employee contributions (as defined in Section 14.03). The Plan Administrator operationally may include in the ACP test, qualified nonelective contributions and
elective deferrals not used in the ADP test. The Plan Administrator, under prior year testing, may include qualified nonelective contributions or qualified matching contributions in determining the
Nonhighly Compensated Employee ACP only if the Employer makes such contribution to the Plan by the end of the testing year and the Plan Administrator allocates the contribution to the prior Plan Year.
In determining whether the Plan satisfies either ACP test, the Plan Administrator will use prior year testing, unless the Employer in Appendix A to its Adoption Agreement elects to use the
current year testing. An Employer may not change from current year testing to prior year testing except as provided in the Code or in other applicable guidance. For the first Plan Year the Plan
permits matching contributions or Employee contributions and the Plan is not a successor plan (as defined in the Code or in other applicable guidance), under prior year testing, the prior year ACP for
the 

84

 

Nonhighly Compensated Group is 3% unless the Employer in an Addendum to its Adoption Agreement elects to use the actual first year ACP for the Nonhighly Compensated Group. 

        (B)    Special aggregation rule for Highly Compensated Employees.    To determine the contribution percentage of any
Highly Compensated Employee, the aggregate contributions taken into account must include any matching contributions (other than qualified matching contributions used in the ADP test) and any Employee
contributions made on his/her behalf to any other plan maintained by the Employer, unless the other plan is an ESOP. If the plans have different plan years, the Plan Administrator will determine the
combined aggregate contributions on the basis of the plan years ending in the same calendar year. 

        (C)    Aggregation of certain 401(m) arrangements.    If the Employer treats two or more plans as a single for
coverage or nondiscrimination purposes, the Employer must combine the 401(m) arrangements under such plans to determine whether the plans satisfy the ACP test. This aggregation rule applies to the ACP
determination for all eligible Employees, irrespective of whether an eligible Employee is a Highly Compensated Employee or a Nonhighly Compensated Employee. An Employer may aggregate 401(m)
arrangements under this Section 14.09(C) if where the plans have the same plan year and use the same testing method. An Employer may not aggregate an ESOP (or the ESOP portion of a plan) with a
non-ESOP plan (or non-ESOP portion of a plan). If the Employer aggregating 401(m) arrangements under this Section 14.09(C) is using prior year testing, the Plan
Administrator must adjust the Nonhighly Compensated Group ACP for the prior year as provided in the Code or in other applicable guidance. 

        (D)    Distribution of excess aggregate contributions.    The Plan Administrator will determine excess aggregate
contributions after determining excess deferrals under Section 14.07 and excess contributions under Section 14.08. If the Plan Administrator determines the Plan fails to satisfy the ACP
test for a Plan Year, the Trustee, as directed by the Plan Administrator, must distribute the Vested excess aggregate contributions, as adjusted for allocable income, during the next Plan Year.
However, the
Employer may incur an excise tax with respect to the amount of excess aggregate contributions for a Plan Year not distributed to the appropriate Highly Compensated Employees during the first
21/2 months of that next Plan Year. The excess aggregate contributions are the amount of aggregate contributions allocated on behalf of the Highly Compensated Employees which causes the
Plan to fail the ACP test. The Plan Administrator will determine the total amount of the excess aggregate contributions by starting with the Highly Compensated Employee(s) who has the greatest
contribution percentage, reducing his/her contribution percentage (but not below the next highest contribution percentage), then, if necessary, reducing the contribution percentage of the Highly
Compensated Employee(s) at the next highest contribution percentage level, including the contribution percentage of the Highly Compensated Employee(s) whose contribution percentage the Plan
Administrator already has reduced (but not below the next highest contribution percentage), and continuing in this manner until the ACP for the Highly Compensated Group satisfies the ACP test. 

        After
the Plan Administrator has determined the total excess aggregate contribution amount, the Trustee, as directed by the Plan Administrator, then will distribute (to the extent
Vested) to each Highly Compensated Employee his/her respective share of the excess aggregate contributions. The Plan Administrator will determine each Highly Compensated Employee's share of excess
aggregate contributions by starting with the Highly Compensated Employee(s) who has the highest dollar amount of aggregate contributions, reducing the amount of his/her aggregate contributions (but
not below the next highest dollar amount of the aggregate contributions), then, if necessary, reducing the amount of aggregate contributions of the Highly Compensated Employee(s) at the next highest
dollar amount of aggregate contributions, including the aggregate contributions of the Highly Compensated Employee(s) whose aggregate contributions the Plan Administrator already has reduced (but not
below the next 

85

 

highest dollar amount of aggregate contributions), and continuing in this manner until the Trustee has distributed all excess aggregate contributions. 

        (E)    Allocable income.    To determine the amount of the corrective distribution required under this
Section 14.09, the Plan Administrator must calculate the allocable income for the Plan Year (but not beyond the Plan Year) in which the excess aggregate contributions arose. "Allocable income"
means net income or net loss. The Plan Administrator will determine allocable income in the same manner as described in Section 14.08(F) for excess contributions. 

        (F)    Characterization of excess aggregate contributions.    The Plan Administrator will treat a Highly Compensated
Employee's allocable share of excess aggregate contributions in the following priority: (1) first as attributable to his/her Employee contributions, if any; (2) then as matching
contributions allocable with respect to excess contributions determined under the ADP test described in Section 14.08; (3) then on a pro rata basis to matching contributions and to the
deferral contributions relating to those matching contributions which the Plan Administrator has included in the ACP test; and (4) last to qualified nonelective contributions used in the ACP
test. To the extent the Highly Compensated Employee's excess aggregate contributions are attributable to matching contributions, and he/she is not 100% Vested in his/her Account Balance attributable
to matching contributions, the Plan Administrator will distribute only the Vested portion and forfeit the nonVested portion. The Vested portion of the Highly Compensated Employee's excess aggregate
contributions attributable to Employer matching contributions is the total amount of such excess aggregate contributions (as adjusted for allocable
income) multiplied by his/her Vested percentage (determined as of the last day of the Plan Year for which the Employer made the matching contribution). 

        14.10    MULTIPLE USE LIMITATION.    If at least one Highly Compensated Employee is includible in the ADP test under
Section 14.08 and in the ACP test under Section 14.09, the sum of the Highly Compensated Group's ADP and ACP may not exceed the multiple use limitation. 

        The
multiple use limitation is the sum of (i) and (ii): 

          (i)  125%
of the greater of: (a) the ADP of the Nonhighly Compensated Group for the prior Plan Year; or (b) the ACP of the Nonhighly Compensated Group for the
Plan Year beginning with or within the prior Plan Year of the 401(k) arrangement. 

        (ii)  2%
plus the lesser of (i)(a) or (i)(b), but no more than twice the lesser of (i)(a) or (i)(b). 

        The
Plan Administrator, in lieu of determining the multiple use limitation as the sum of (i) and (ii), may elect to determine the multiple use limitation as the sum of
(iii) and (iv): 

        (iii)  125%
of the lesser of: (a) the ADP of the Nonhighly Compensated Group for the prior Plan Year; or (b) the ACP of the Nonhighly Compensated Group for the
Plan Year beginning with or within the prior Plan Year of the 401(k) arrangement. 

        (iv)  2%
plus the greater of (iii)(a) or (iii)(b), but no more than twice the greater of (iii)(a) or (iii)(b). 

        If
the Employer has elected in its Adoption Agreement to use current year testing, the multiple use limitation is calculated using the Nonhighly Compensated Group's current Plan Year
data. The Plan Administrator will determine whether the Plan satisfies the multiple use limitation after applying the ADP test under Section 14.08 and the ACP test under Section 14.09
and using the deemed maximum corrected ADP and ACP percentages in the event the Plan failed either or both tests. If, after applying this Section 14.10, the Plan Administrator determines the
Plan has failed to satisfy the multiple use limitation, the Plan Administrator will correct the failure by treating the excess amount as excess contributions under Section 14.08 or as excess
aggregate contributions under Section 14.09, as the Plan Administrator determines in its sole discretion. This Section 14.10 does not apply unless, prior 

86

 

to application of the multiple use limitation, the ADP and the ACP of the Highly Compensated Group each exceeds 125% of the respective percentages for the Nonhighly Compensated Group. 

        14.11    DISTRIBUTION RESTRICTIONS.    The Employer in Adoption Agreement Section 6.01 must elect the
distribution events permitted under the Plan. The distribution events applicable to the Participant's deferral contributions Account, qualified nonelective contributions Account, qualified matching
contributions Account and safe harbor contributions Account (collectively, "restricted balances") must satisfy the distribution restrictions described in Section 14.03(d). 

        (A)    Hardship Distributions from Deferral Contributions Account.    The Employer must elect in Adoption Agreement
Section 6.01 whether a Participant may receive hardship distribution (as defined in Section 6.09) from his/her deferral contributions Account prior to the Participant's Separation from
Service. A hardship distribution from the deferral contributions Account also must satisfy the requirements of this Section 14.11(A). A hardship distribution option may not apply to a
Participant's qualified nonelective contributions Account, qualified matching contributions Account, nor to his/her safe harbor contributions Account except as provided in Paragraph (2). 

        (1)  Restrictions. The following restrictions apply to a Participant who receives a hardship distribution from his/her
deferral contributions Account: (a) the Participant may not make elective deferrals or Employee contributions to the Plan for the 12-month period following the date of his/her
hardship distribution; (b) the distribution may not exceed the amount of the Participant's immediate and heavy financial need (including any amounts necessary to pay any federal, state or local
income taxes or penalties reasonably anticipated to result from the distribution); (c) the Participant must have obtained all distributions, other than hardship distributions, and all
nontaxable loans (determined at the time of the loan) currently available under this Plan and all other qualified plans maintained by the Employer; and (d) the Participant must limit elective
deferrals under this Plan and under any other qualified plan maintained by the Employer, for the Participant's taxable year immediately following the taxable year of the hardship distribution, to the
402(g) limitation (as described in Section 14.07), reduced by the amount of the Participant's elective deferrals made in the taxable year of the hardship distribution. The suspension of
elective deferrals and Employee contributions described in clause (a) also must apply to all other qualified plans and to all nonqualified plans of deferred compensation maintained by the
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 or welfare benefit
plans (other than the cash or deferred arrangement portion of a cafeteria plan). The Plan Administrator, absent actual contrary knowledge, may rely on a Participant's written representation that the
distribution is on account of hardship (as defined in Section 6.09) and also satisfies clause (b). In addition, clause (c) regarding loans does not apply if the loan to the
Participant would increase the Participant's hardship need. 

        (2)  Earnings. A hardship distribution may not include earnings on an Employee's elective deferrals credited after
December 31, 1988. Qualified matching contributions and qualified nonelective contributions, and any earnings on such contributions, credited as of December 31, 1988, are subject to
withdrawal for a hardship distribution only if the Employer in an Addendum to its Adoption Agreement elects to permit such withdrawals. The Addendum may modify the December 31, 1988, date for
purposes of determining credited amounts, provided the date is not later than the end of the last Plan Year ending before July 1, 1989. 

        (B)    Distributions after Separation from Service.    Following the Participant's Separation from Service, the
distribution events applicable to the Participant apply equally to all of the Participant's Accounts. 

        14.12    SPECIAL ALLOCATION AND VALUATION RULES.    If the 401(k) arrangement provides for salary reduction
contributions, if the Plan accepts Employee contributions, or if the Plan allocates 

87

 

matching contributions as of any date other than the last day of the Plan Year, the Employer in Adoption Agreement Sections 9.08 and 10.15 must elect the method the Plan Administrator will
apply to allocate net income, gain or loss to such contributions made during the Plan Year and any alternative valuation dates for the different Account types which the Plan Administrator maintains
under the Plan. 

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AMENDMENT TO
  DEFINED CONTRIBUTION PLAN AND TRUST    
  

        Effective with respect to Employers adopting this prototype plan on or after July 1, 2002, Section 10.03(G) of the Plan is amended in its entirety to read
as follows: 

        (G)  Modifications of Trust.    The Employer in its Standardized Adoption Agreement may not amend any provision of
Article X (or any other provision of the Plan related to the Trust) except to specify the Trust year, the names of the Plan, the Employer, the Trustee, the Custodian, the Plan Administrator,
other fiduciaries or the name of any pooled trust in which the Trust will participate. The Employer in its Nonstandardized Adoption Agreement, in addition to the foregoing amendments, may amend or
override the administrative provisions of Article X (or any other provision of the Plan related to the Trust), including provisions relating to Trust investment and Trustee duties. Any such
amendment: (1) must not conflict with any other provisions of the Plan (except as expressly are intended to override an existing Trust provision); (2) must not cause the Plan to violate
Code §401(a); and (3) must be made in accordance with Rev. Proc. 2000-20 or any successor thereto. The Employer using either a Standardized or Nonstandardized Adoption Agreement to
establish its Plan, subject to the conditions (1), (2) and (3) described above, may elect to substitute in place of Article X and the remaining trust provisions of the basic plan
document, any other trust or custodial account agreement that has been approved by the IRS for use with this Plan. All Section 10.03(G) Trust modifications or substitutions are subject to
Section 13.02 and require the written consent or signature of the Trustee. 

        Pursuant
to Section 13.03 of the Plan, the mass submitter of the prototype plan has made this amendment (as evidenced by the submission of the amendment to the Internal Revenue
Service for inclusion with the mass submitter prototype plan) on behalf of minor modifier Prototype Plan Sponsors that received opinion letters prior to March 1, 2002, and all identical
Prototype Plan Sponsors of the mass submitter prototype plan. 

QuickLinks

Exhibit 10.1

PETCO ANIMAL SUPPLIES 401(K) PLAN

ADOPTION AGREEMENT #009 NONSTANDARDIZED 401(k) PROFIT SHARING PLAN

ARTICLE I DEFINITIONS

Execution Page

APPENDIX C Employer Notice And Acknowledgment

EGTRRA AMENDMENT TO THE PETCO ANIMAL SUPPLIES 401(K) PLAN

THE CHICAGO TRUST COMPANY MASTER RETIREMENT PLAN

TABLE OF CONTENTS

THE CHICAGO TRUST COMPANY MASTER RETIREMENT PLAN

DEFINED CONTRIBUTION PROTOTYPE PLAN AND TRUST AGREEMENT BASIC PLAN DOCUMENT # 01

ARTICLE I DEFINITIONS

ARTICLE II ELIGIBILITY AND PARTICIPATION

ARTICLE III EMPLOYER CONTRIBUTIONS AND FORFEITURES

ARTICLE IV PARTICIPANT CONTRIBUTIONS

ARTICLE V VESTING

ARTICLE VI DISTRIBUTIONS

ARTICLE VII EMPLOYER ADMINISTRATIVE PROVISIONS

ARTICLE VIII PARTICIPANT ADMINISTRATIVE PROVISIONS

ARTICLE IX PLAN ADMINISTRATOR

ARTICLE X TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

ARTICLE XI PROVISIONS RELATING TO INSURANCE AND INSURANCE COMPANY

ARTICLE XII TOP-HEAVY PROVISIONS

ARTICLE XIII EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION

ARTICLE XIV CODE SECTION 401(k) AND CODE SECTION 401(m) ARRANGEMENTS

AMENDMENT TO DEFINED CONTRIBUTION PLAN AND TRUSTEXHIBIT 4.1

                                 TRUST AGREEMENT

                                     between

                          UNITED FIDELITY FINANCE, LLC,
                                  as Transferor

                                       and

                            WILMINGTON TRUST COMPANY,
                                as Owner Trustee

                           Dated as of August 1, 2002

 ------------------------------------------------------------------------------

                  UNITED FIDELITY AUTO RECEIVABLES TRUST 2002-A

 ------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
                                                TABLE OF CONTENTS
<S>                                                                                                             <C>
ARTICLE I DEFINITIONS.............................................................................................1
         SECTION 1.1                Capitalized Terms.............................................................1
         SECTION 1.2                Other Definitional Provisions.................................................4

ARTICLE II ORGANIZATION...........................................................................................4
         SECTION 2.1                Declaration of Trust; Name....................................................4
         SECTION 2.2                Office  .......................................................................
         SECTION 2.3                Purposes and Powers...........................................................5
         SECTION 2.4                Appointment of Owner Trustee..................................................8
         SECTION 2.5                Initial Capital Contribution of Trust Estate..................................8
         SECTION 2.6                Status of Trust Under Trust Statute...........................................8
         SECTION 2.7                Expenses9
         SECTION 2.8                Appointment of Trust Collateral Agent; Title to Trust Property................9
         SECTION 2.9                Situs of Trust................................................................9
         SECTION 2.10               Representations and Warranties of the Transferor.............................10
         SECTION 2.11               Federal Income Tax Treatment of the Trust....................................12
         SECTION 2.12               Covenants of the Transferor..................................................12
         SECTION 2.13               Covenants of the Certificateholder...........................................13

ARTICLE III THE CERTIFICATE AND TRANSFER OF INTERESTS............................................................14
         SECTION 3.1                Initial Ownership............................................................14
         SECTION 3.2                The Certificate..............................................................14
         SECTION 3.3                Authentication of Certificate................................................14
         SECTION 3.4                Registration of Transfer and Exchange of the Certificate.....................15
         SECTION 3.5                Mutilated, Destroyed, Lost or Stolen Certificates............................17
         SECTION 3.6                Persons Deemed Certificateholder.............................................17

ARTICLE IV VOTING RIGHTS AND OTHER ACTIONS.......................................................................18
         SECTION 4.1                Prior Notice with Respect to Certain Matters.................................18
         SECTION 4.2                Action with Respect to Certain Matters.......................................19
         SECTION 4.3                Restrictions on Certificateholder's Power....................................19
         SECTION 4.4                Control 20
         SECTION 4.5                Rights of Note Insurer.......................................................20

ARTICLE V CERTAIN DUTIES.........................................................................................20
         SECTION 5.1                Accounting and Records to the Certificateholder, the Internal Revenue
                                    Service and Others...........................................................20
         SECTION 5.2                Signature on Returns; Tax Matters Partner....................................21

ARTICLE VI AUTHORITY AND DUTIES OF OWNER TRUSTEE.................................................................21
         SECTION 6.1                General Authority............................................................21
         SECTION 6.2                General Duties...............................................................21
         SECTION 6.3                Action upon Instruction......................................................22

                                       i
<PAGE>

         SECTION 6.4                No Duties Except as Specified in this Agreement or in Instructions...........23
         SECTION 6.5                No Action Except under Specified Documents or Instructions...................23
         SECTION 6.6                Restrictions.................................................................23

ARTICLE VII CONCERNING THE OWNER TRUSTEE.........................................................................24
         SECTION 7.1                Acceptance of Trusts and Duties..............................................24
         SECTION 7.2                Furnishing of Documents......................................................25
         SECTION 7.3                Representations and Warranties...............................................25
         SECTION 7.4                Reliance; Advice of Counsel..................................................26
         SECTION 7.5                Not Acting in Individual Capacity............................................27
         SECTION 7.6                Owner Trustee Not Liable for the Certificate or Receivables..................27
         SECTION 7.7                Owner Trustee May Own the Certificate and Notes..............................27
         SECTION 7.8                Payments from Trust Property.................................................27
         SECTION 7.9                Doing Business in Other Jurisdictions........................................28

ARTICLE VIII COMPENSATION OF OWNER TRUSTEE.......................................................................28
         SECTION 8.1                Owner Trustee's Fees and Expenses............................................28
         SECTION 8.2                Indemnification..............................................................28
         SECTION 8.3                Payments to the Owner Trustee................................................28
         SECTION 8.4                Non-Recourse Obligations.....................................................29

ARTICLE IX TERMINATION OF TRUST AGREEMENT........................................................................29
         SECTION 9.1                Termination of Trust Agreement...............................................29

ARTICLE X SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES.................................................30
         SECTION 10.1               Eligibility Requirements for Owner Trustee...................................30
         SECTION 10.2               Resignation or Removal of Owner Trustee......................................31
         SECTION 10.3               Successor Owner Trustee......................................................31
         SECTION 10.4               Merger or Consolidation of Owner Trustee.....................................32
         SECTION 10.5               Appointment of Co-Trustee or Separate Trustee................................32

ARTICLE XI MISCELLANEOUS.........................................................................................34
         SECTION 11.1               Supplements and Amendments...................................................34
         SECTION 11.2               Limitations on Rights of Others..............................................35
         SECTION 11.3               Notices 35
         SECTION 11.4               Severability.................................................................36
         SECTION 11.5               Separate Counterparts........................................................36
         SECTION 11.6               Assignments..................................................................36
         SECTION 11.7               Note Insurer.................................................................36
         SECTION 11.8               No Petition..................................................................36
         SECTION 11.9               No Recourse..................................................................37

                                       ii
<PAGE>

         SECTION 11.10              Headings37
         SECTION 11.11              GOVERNING LAW................................................................37
         SECTION 11.12              The Bank37
         SECTION 11.13              No Legal Title to Trust Property in Certificateholder........................37
         SECTION 11.14              Bankruptcy Matters...........................................................38
         SECTION 11.15              Effect of Policy Expiration Date.............................................38

                                    EXHIBITS

EXHIBIT A         FORM OF CERTIFICATE
EXHIBIT B         FORM OF CERTIFICATE OF TRUST
EXHIBIT C         FORM OF ERISA CERTIFICATION
</TABLE>

                                      iii
<PAGE>

                  This TRUST AGREEMENT dated as of August 1, 2002 between UNITED
FIDELITY FINANCE, LLC, a Delaware limited liability company (the "Transferor"),
and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Owner Trustee
(the "Owner Trustee").

                              PRELIMINARY STATEMENT

                  The Owner Trustee shall execute and cause to be filed with the
Delaware Secretary of State the Certificate of Trust relating to the Trust.

                                   ARTICLE I
                                   DEFINITIONS

SECTION 1.1       Capitalized Terms.
                  -----------------

                  For all purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "Agreement" shall mean this Trust Agreement, as the same may
be amended, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

                  "Back-up Servicer" shall mean Wells Fargo Bank Minnesota,
National Association, in its capacity as Back-up Servicer under the Sale and
Servicing Agreement.

                  "Bank" shall mean United Fidelity Bank, fsb, a federally
chartered savings association.

                   "Certificate" means a certificate issued by the Trust, which
is substantially in the form attached hereto as Exhibit A.

                  "Certificate Distribution Account" shall mean the account
designated as such as established and maintained pursuant to the Sale and
Servicing Agreement.

                  "Certificate of Trust" shall mean the Certificate of Trust in
the form of Exhibit B to be filed for the Trust pursuant to Section 3810(a) of
the Trust Statute.

                  "Certificate Register" and "Certificate Registrar" shall mean
the register mentioned and the registrar appointed pursuant to Section 3.4.

                  "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time, and Treasury Regulations promulgated thereunder.

                  "Collateral Agent" shall mean Wells Fargo Bank Minnesota,
National Association, in its capacity as collateral agent, including its
successors-in-interest, until and unless a successor Person shall become the
Collateral Agent pursuant to the Spread Account Agreement, and thereafter,
"Collateral Agent" shall mean such successor Person.

                                       1
<PAGE>

                  "Corporate Trust Office" shall mean, with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration or at such other address as the Owner
Trustee may designate by notice to the Certificateholder, the Note Insurer, the
Indenture Trustee and the Transferor, or the principal corporate trust office of
any successor Owner Trustee (the address of which the successor owner trustee
will notify the Certificateholder, the Note Insurer, the Indenture Trustee and
the Transferor).

                  "Holder" or "Certificateholder" shall mean the Person in whose
name a Certificate is registered on the Certificate Register.

                  "Indenture" shall mean the Indenture dated as of August 1,
2002, between the Issuer and Wells Fargo Bank Minnesota, National Association,
as the Indenture Trustee, as the same may be amended and supplemented from time
to time in accordance with the provisions thereof.

                  "Insolvency Event" means, with respect to a specified Person,
(a) the filing of a petition against such Person or the entry of a decree or
order for relief by a court having jurisdiction in the premises in respect of
such Person or any substantial part of its property in an involuntary case under
any applicable federal or state bankruptcy, insolvency or other similar law now
or hereafter in effect, or appointing a receiver, conservator, liquidator,
assignee, custodian, trustee, sequestrator, or similar official for such Person
or for any substantial part of its property, or ordering the winding-up or
liquidation of such Person's affairs, and such petition, decree or order
remaining unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person of a voluntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by, a receiver, conservator, liquidator, assignee, custodian,
trustee, sequestrator, or similar official for such Person or for any
substantial part of its property, or the making by such person of any general
assignment for the benefit of creditors, or the failure by such person generally
to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

                  "Instructing Party" has the meaning given such term in Section
4.2.

                  "Issuer" means the Trust.

                  "Master Servicer" shall mean the Bank in its capacity as
Master Servicer under the Sale and Servicing Agreement.

                  "Note Insurer" shall mean Financial Security Assurance Inc., a
monoline insurance company incorporated under the laws of the State of New York,
or its successor in interest as issuer of the Note Policy.

                                       2
<PAGE>

                  "Note Policy" shall have the meaning assigned to such term in
the Insurance Agreement.

                  "Owner Trustee" shall mean Wilmington Trust Company, a
Delaware banking corporation, not in its individual capacity but solely as owner
trustee under this Agreement, and any successor Owner Trustee hereunder.

                  "Record Date" shall mean with respect to a Distribution Date,
the close of business on the last day of the month immediately preceding such
Distribution Date.

                  "Sale and Servicing Agreement" shall mean the Sale and
Servicing Agreement, dated as of August 1, 2002, among the Trust, the
Transferor, the Originator, the Master Servicer, the Trust Collateral Agent and
the Back-up Servicer, as the same may be amended and supplemented from time to
time in accordance with the terms thereof.

                  "Secretary of State" shall mean the Secretary of State of the
State of Delaware.

                  "Securityholders" shall mean the Certificateholders and the
Noteholders.

                  "Transferor" shall mean United Fidelity Finance, LLC, a
Delaware limited liability company, in its capacity as Transferor hereunder.

                  "Treasury Regulations" shall mean regulations, including
proposed or temporary regulations, promulgated under the Code. References herein
to specific provisions of proposed or temporary regulations shall include
analogous provisions of final Treasury Regulations or other successor Treasury
Regulations.

                  "Trust" shall mean the trust established by this Agreement.

                  "Trust Collateral Agent" shall mean, initially, Wells Fargo
Bank Minnesota, National Association, in its capacity as trust collateral agent,
including its successors-in-interest, until and unless a successor Person shall
have become the Trust Collateral Agent pursuant to the Sale and Servicing
Agreement, and thereafter "Trust Collateral Agent" shall mean such successor
Person.

                  "Trust Property" shall mean all right, title and interest of
the Trust in and to the property and rights assigned to the Trust pursuant to
Section 2.01 and Section 2.02(a) of the Sale and Servicing Agreement and
pursuant to each Transfer Agreement and all amounts and property from time to
time held in or credited to the Trust Accounts and the Lock-Box Account (to the
extent such amounts and property in the Lock-Box Account relate to the
Receivables).

                  "Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code Section 3801 et seq., as the same may be amended
from time to time.

                                       3
<PAGE>

                  "United Fidelity" shall mean United Fidelity Finance, LLC, a
Delaware limited liability company.

                  "Wilmington Trust" shall mean Wilmington Trust Company, a
Delaware banking corporation, in its individual capacity and not as Owner
Trustee.

SECTION 1.2       Other Definitional Provisions.
                  -----------------------------

     (a) Capitalized terms used herein and not otherwise defined have the
meanings assigned to them in the Sale and Servicing Agreement or, if not defined
therein, in the Indenture.

     (b) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

     (c) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document to
the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles as in effect on the date of this
Agreement or any such certificate or other document, as applicable. To the
extent that the definitions of accounting terms in this Agreement or in any such
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Agreement or in any such certificate or other document shall control.

     (d) The words "hereof," "herein," "hereunder" and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement; Section and Exhibit references
contained in this Agreement are references to Sections and Exhibits in or to
this Agreement unless otherwise specified; and the term "including" shall mean
"including without limitation."

     (e) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

                                   ARTICLE II
                                  ORGANIZATION

SECTION 2.1       Declaration of Trust; Name.
                  --------------------------

                  There is hereby formed a trust to be known as "United Fidelity
Auto Receivables Trust 2002-A", in which name the Owner Trustee may conduct the
business of the Trust,

                                       4
<PAGE>

make and execute contracts and other instruments on behalf of the Trust and sue
and be sued on behalf of the Trust.

SECTION 2.2       Office.
                  ------

                  The office of the Trust shall be in care of the Owner Trustee
at the Corporate Trust Office or at such other address as the Owner Trustee may
designate by written notice to the Certificateholder, the Note Insurer and the
Transferor.

SECTION 2.3       Purposes and Powers.
                  -------------------

                  The Trust and the parties to this Agreement shall be subject
to the following provisions regarding the purposes, powers and procedures of the
Trust:

     (a) The sole purpose of the Trust is to acquire Trust Property pursuant to
the Sale and Servicing Agreement and each Transfer Agreement and to conserve the
Trust Property and collect and disburse the periodic income therefrom and act
pursuant to the Basic Documents, and, in furtherance thereof, the Trust shall
have the power and authority, to engage in the following activities:

          (i) to issue the Notes pursuant to the Indenture and the Certificate
     pursuant to this Agreement, to sell the Notes, to sell and/or transfer the
     Certificate in accordance with the provisions of this Agreement and to pay
     interest and principal on the Notes and distributions on the Certificate;

          (ii) with the proceeds of the sale of the Notes to fund the
     Pre-Funding Account and the Capitalized Interest Account, at the direction
     of the Certificateholder, to fund the Spread Account Initial Deposit and
     any Spread Account Additional Deposit in the Spread Account, to pay the
     organizational, start-up and transactional expenses of the Trust and to pay
     the balance to the Transferor pursuant to the Sale and Servicing Agreement;

          (iii) to assign, grant, transfer, pledge, mortgage and convey the
     Trust Property to the Indenture Trustee pursuant to the Indenture for the
     benefit of the Noteholders and the Note Insurer and to hold, manage and
     distribute to the Certificateholder pursuant to the terms of the Sale and
     Servicing Agreement and the Spread Account Agreement any portion of the
     Trust Property released from the lien of, and remitted to the Trust
     pursuant to, the Indenture;

          (iv) to enter into and perform its obligations under the Basic
     Documents to which it is a party;

          (v) to engage in those activities, including entering into agreements,
     that are necessary, suitable or convenient to accomplish the foregoing or
     are incidental thereto or connected therewith; and

                                       5
<PAGE>

          (vi) subject to compliance with the Basic Documents, to engage in such
     other activities as may be required in connection with conservation of the
     Trust Property and the making of distributions to the Certificateholder,
     the Note Insurer and the Noteholders.

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Agreement or the Basic
Documents.

     (b) The Trust's only assets shall be the Trust Property. Other than in
connection with the Notes or as otherwise contemplated in the Basic Documents,
the Trust shall not secure any indebtedness with any of the Trust Property.

     (c) Other than with respect to the transfer to the Trust of the Trust
Property or its obligations under the Basic Documents, the Trust will acquire no
obligations of, shall not make loans or advances to, will not borrow funds from,
shall not assume or guarantee the obligations or liabilities of, shall not have
its obligations or liabilities guaranteed by, and shall not hold itself out as
responsible for the debts and obligations of the Owner Trustee, the
Certificateholder, the Bank, the Transferor, the Indenture Trustee, the Trust
Collateral Agent or any other Person or entity.

     (d) The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Trust Property except in accordance with the
specific limitations set forth in this Agreement and the other Basic Documents
to which the Trust is a party.

     (e) Other than for federal income tax purposes, the Trust shall, in all
dealings with the public, identify itself under the name of the Trust and as a
separate and distinct entity from any other Person or entity. All transactions
and agreements between the Trust and third parties shall be conducted in the
name of the Trust as an entity separate and independent from the Owner Trustee,
the Indenture Trustee, the Trust Collateral Agent, the Bank, the Transferor and
the Certificateholder.

     (f) Other than for federal income tax purposes, all transactions and
agreements between the Trust on the one hand, and any of the Owner Trustee,
Wilmington Trust, the Indenture Trustee, the Trust Collateral Agent, the
Transferor, the Bank and the Certificateholder on the other hand, shall reflect
the separate legal existence of each entity and will be formally documented in
writing. The pricing and other material terms of all such transactions and
agreements shall be on terms substantially similar to those that would be
available on an arm's-length basis with unaffiliated third parties.

     (g) The Trust shall not commingle its funds and other assets with those of
any other Person or business entity and shall maintain its assets and
liabilities in such a manner that it shall not be costly or difficult to
segregate, ascertain or identify its individual assets and liabilities from
those of any other Person or entity. The Owner Trustee, the Trust Collateral

                                       6
<PAGE>

Agent or the Indenture Trustee, as contemplated by the Basic Documents, shall
hold the Trust Property on behalf of the Trust.

     (h) The Trust shall pay its liabilities and losses as they become due from
the Trust Property; provided, however, that, except as provided in the Basic
Documents, none of the Trust Property shall be used to pay the liabilities
(including liability in respect of guaranties) and losses of Wilmington Trust,
the Transferor, the Bank, the Indenture Trustee, the Trust Collateral Agent or
the Certificateholder. The Trust has been structured to maintain capital in an
amount reasonably sufficient to meet the anticipated needs of the Trust.

     (i) The Trust shall not share any of the same officers or other employees
with the Master Servicer, the Back-up Servicer, the Transferor, the Bank, the
Indenture Trustee, the Trust Collateral Agent or the Certificateholder;
provided, however, that the Owner Trustee may act in such capacity on behalf of
the Trust and the Certificateholder and the Bank may act as administrator on
behalf of the Trust and the Certificateholder.

     (j) The Trust shall not, jointly with the Master Servicer, the Back-up
Servicer, the Transferor, the Bank, the Indenture Trustee, the Trust Collateral
Agent or the Certificateholder contract or do business with vendors or service
providers or share overhead expenses; provided, however, that the Owner Trustee
may act in such capacity on behalf of the Trust and the Certificateholder and
the Bank may act as administrator on behalf of the Trust and the
Certificateholder.

     (k) The Trust shall maintain any bank accounts, books and records and
annual financial statements prepared in accordance with generally accepted
accounting principles, separate from those of the Owner Trustee, Wilmington
Trust, the Indenture Trustee, the Trust Collateral Agent, the Transferor, the
Bank and the Certificateholder. The foregoing will reflect that the assets and
liabilities of and all transactions and transfers of funds involving the Trust
shall be separate from those of each such other entity, and the Trust shall pay
or bear the cost of the preparation of its own financial statements and shall
not pay or bear the cost of the preparation of the financial statements of any
such other entity. Neither the accounting records nor the financial statements
of the Trust will indicate that the Trust Property is available to pay creditors
of Wilmington Trust, the Indenture Trustee, the Trust Collateral Agent, the
Transferor, the Bank or the Certificateholder or any other Person or entity.

     (l) The Owner Trustee shall not have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior approval of the
Certificateholder and the Transferor and the delivery to the Owner Trustee by
the Certificateholder and the Transferor of a certificate stating that such
entity reasonably believes that the Trust is insolvent.

     (m) The Owner Trustee covenants and agrees that it will not at any time
institute against the Transferor, or join in any institution against the
Transferor of any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceeding under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Transferor or this Agreement. The Owner Trustee covenants and

                                       7
<PAGE>

agrees that it will not, in any capacity, seek the substantive consolidation of
the assets of the Trust with the Transferor.

     (n) The Certificate cannot be transferred other than pursuant to Section
3.4.

     (o) The Certificate shall entitle any Certificateholder only to the
benefits and distributions as are expressly set forth in this Agreement, the
Sale and Servicing Agreement and the Spread Account Agreement.

     (p) The Trust and this Agreement may not be revoked or terminated except in
accordance with Section 9.1 of this Agreement and in no event shall the
Certificateholder have the ability to terminate the Trust unilaterally.

     (q) The Trust shall not consensually merge or consolidate with any Person.

     (r) Neither the Transferor nor the Certificateholder shall request or
instruct the Owner Trustee to take or refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the Owner
Trustee under this Agreement or contrary to the limited purposes of the Trust,
and the Owner Trustee shall be under no obligation to comply with any such
request or instruction if given.

SECTION 2.4       Appointment of Owner Trustee.
                  ----------------------------

                  The Transferor hereby appoints the Owner Trustee as trustee of
the Trust effective as of the date hereof, to have all the rights, powers and
duties set forth herein.

SECTION 2.5       Initial Capital Contribution of Trust Estate.
                  --------------------------------------------

                  The Transferor hereby sells, assigns, transfers, conveys and
sets over to the Owner Trustee, as of the date hereof, the sum of $1. The Owner
Trustee hereby acknowledges receipt in trust from the Transferor, as of the date
hereof, of the foregoing contribution, which shall constitute the initial Trust
Property and shall be deposited with the Trust Collateral Agent for deposit in
the Certificate Distribution Account.

SECTION 2.6       Status of Trust Under Trust Statute.
                  -----------------------------------

                  The Owner Trustee hereby declares that it will hold the Trust
Property in trust upon and subject to the conditions set forth herein for the
sole purpose of conserving the Trust Property and collecting and disbursing the
periodic income therefrom for the use and benefit of the Certificateholder,
subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Trust Statute and that this Agreement constitute the governing
instrument of such statutory trust. Effective as of the date hereof, the Owner
Trustee shall have all rights, powers and duties expressly set forth herein and
to the extent not inconsistent herewith, in the Trust Statute with respect to
accomplishing the purposes of the Trust. The Owner Trustee shall file the
Certificate of Trust with the Secretary of State. The Certificateholder shall
not have any personal liability for any liability or obligation of the Trust.

                                       8
<PAGE>

SECTION 2.7       Expenses.
                  --------

                  The Owner Trustee shall be reimbursed for any organizational
expenses of the Trust paid by the Owner Trustee in accordance with Section
5.12(a) of the Sale and Servicing Agreement.

SECTION 2.8      Appointment of Trust Collateral Agent; Title to Trust Property.
                 --------------------------------------------------------------

     (a) The Transferor, in its capacity as the seller to, creator of, and as
original, sole beneficiary of the Trust does hereby name Wells Fargo Bank
Minnesota, National Association to act as the initial collateral agent (the
"Trust Collateral Agent") to hold the Trust Property pursuant to the Sale and
Servicing Agreement for the benefit of the Note Insurer, the Indenture Trustee
and the Noteholders.

     (b) The specific rights, duties and obligations of the Trust Collateral
Agent shall be as set forth in the Sale and Servicing Agreement. For as long as
any Notes are outstanding, the Trust Collateral Agent shall act solely for the
benefit of the Indenture Trustee, the Note Insurer and the Noteholders. Upon the
issuance of the Notes and the Certificate, the Transferor shall have only such
rights with respect to the Trust Collateral Agent as shall be specified in the
Sale and Servicing Agreement.

     (c) Subject to the Indenture, legal title to all the Trust Property shall
be vested at all times in the Trust as a separate legal entity except where
applicable law in any jurisdiction requires title to any part of the Trust
Property to be vested in a trustee or trustees, in which case title shall be
deemed to be vested in the Owner Trustee or a separate trustee, as the case may
be. The Certificateholder shall not have legal title to any part of the Trust
Property. The Certificateholder shall be entitled to receive distributions with
respect to its beneficial ownership interest therein only in accordance with the
Sale and Servicing Agreement, the Spread Account Agreement and this Agreement.
No transfer, by operation of law or otherwise, of any right, title or interest
by the Certificateholder of its beneficial ownership interest in the Trust
Property shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Property.

     (d) Pursuant to Section 3803 of the Statutory Trust Act, the
Certificateholder shall be entitled to the same limitation of personal liability
extended to stockholders of private corporations organized under the General
Corporation Law of the State of Delaware.

SECTION 2.9       Situs of Trust.
                  --------------

                  The Trust will be located in the State of Delaware. The Trust
shall not have any employees; provided, however, that nothing herein shall
restrict or prohibit the Owner Trustee, the Back-up Servicer, the Master
Servicer or any agent of the Trust from having employees within or without the
State of Delaware. The only office of the Trust will be at the Corporate Trust
Office in Delaware.

                                       9
<PAGE>

SECTION 2.10      Representations and Warranties of the Transferor.
                  ------------------------------------------------

                   The Transferor makes the following representations and
warranties on which the Owner Trustee and the Trust rely in accepting the Trust
Property in trust and issuing the Certificate and on which the Note Insurer
relies in issuing the Note Policy:

     (a) Organization and Good Standing. The Transferor is duly organized and
validly existing as a Delaware limited liability company with power and
authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted and is proposed to
be conducted pursuant to this Agreement and the Basic Documents and has and had
at all relevant times power, authority and legal right to acquire, own and sell
the Receivables.

     (b) Due Qualification. The Transferor is duly qualified to do business as a
limited liability company in good standing, and has obtained all necessary
licenses and approvals, in all jurisdictions in which the ownership or lease of
its property, the conduct of its business and the performance of its obligations
under this Agreement and the Basic Documents requires such qualification.

     (c) Power and Authority. The Transferor has the power and authority to
execute and deliver this Agreement and the other Basic Documents to which it is
a party and to carry out their respective terms; the Transferor has full power
and authority to sell and assign the property to be sold and assigned to and
deposited with the Trust and the Transferor has duly authorized such sale and
assignment and deposit to the Trust by all necessary action; and the execution,
delivery and performance of this Agreement and the other Basic Documents to
which it is a party have been duly authorized by the Transferor by all necessary
action.

     (d) Enforceability. The Transferor has duly executed and delivered this
Agreement and the other Basic Documents to which it is a party and this
Agreement and the other Basic Documents to which it is a party constitute legal,
valid and binding obligations of the Transferor, enforceable against the
Transferor in accordance with their terms.

     (e) No Consent Required. No consent, license, approval or authorization or
registration or declaration with, any Person or with any governmental authority,
bureau or agency is required in connection with the execution, delivery or
performance by the Transferor of this Agreement or the other Basic Documents to
which its is a party, except for such as have been obtained, effected or made.

     (f) No Violation. The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which it is a party and the
fulfillment of the terms hereof and thereof do not conflict with, result in any
breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time) a default under, the certificate of formation or
limited liability company agreement of the Transferor, or any indenture,
agreement

                                       10
<PAGE>

or other instrument to which the Transferor is a party or by which it is bound;
nor result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Basic Documents); nor violate any law or any order,
rule or regulation applicable to the Transferor of any court or of any federal
or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Transferor or its properties.

     (g) No Proceedings. There are no proceedings or investigations pending or,
to the Transferor's knowledge, threatened against the Transferor before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over it or its properties (A) asserting the
invalidity of this Agreement or any of the Basic Documents, (B) seeking to
prevent the issuance of the Certificate or the Notes or the consummation of any
of the transactions contemplated by this Agreement or any of the Basic
Documents, (C) seeking any determination or ruling that might materially and
adversely affect its performance of its obligations under, or the validity or
enforceability of, this Agreement or any of the Basic Documents, or (D) seeking
to adversely affect the federal income tax or other federal, state or local tax
attributes of the Certificate or the Notes.

     (h) No Liens. Upon the conveyance, assignment or other transfer of any of
the Trust Assets by the Transferor to the Trust pursuant to the Sale and
Servicing Agreement and each Transfer Agreement, as applicable, the Transferor
will have conveyed to the Trust good title, free and clear of any Lien and the
Trust will have the right to Grant and deliver the Trust Property to the
Indenture Trustee in accordance with the Indenture and upon the Grant and
delivery of the Trust Property by the Trust to the Indenture Trustee in the
manner contemplated by the Indenture, and assuming the validity and binding
effect of the Indenture, the Indenture Trustee will have obtained a valid first
priority security interest therein, prior to all Liens.

     (i) Records. Immediately upon the sale or other delivery of any Trust
Property to the Trust pursuant to the Sale and Servicing Agreement and each
Transfer Agreement, as applicable, the Transferor will make any appropriate
notations on its records to indicate that the Trust Property has been
transferred to the Trust pursuant to the Sale and Servicing Agreement and each
Transfer Agreement, as applicable, and, to the extent it constitutes Trust
Property, has been pledged by the Trust to the Indenture Trustee to secure
payment of the Notes. The Transferor's financial statements will indicate that
the Trust Property is not an asset of the Transferor and not available to the
Transferor's creditors.

     (j) Separate Entity. The Transferor will hold itself out to the public
under its own name as a separate and distinct entity and conduct its business so
as not to mislead others as to its identity. Without limiting the generality of
the foregoing, all oral and written communications, including, without
limitation, all letters, invoices, contracts, statements and applications will
be made solely in the name of the Trust if they are made on behalf of the Trust
and solely in the name of the Transferor if they are made on behalf of the
Transferor.

     (k) Bankruptcy Filings. The Transferor has no present intent to cause a
voluntary bankruptcy of the Trust.

                                       11
<PAGE>

SECTION 2.11      Federal Income Tax Treatment of the Trust.
                  -----------------------------------------

     (a) For so long as the Trust has a single owner for federal income tax
purposes, it will, pursuant to Treasury Regulations promulgated under section
7701 of the Code, be disregarded as an entity distinct from the
Certificateholder for all federal income tax purposes. Accordingly, for federal
income tax purposes, the Certificateholder will be treated as (i) owning all
assets owned by the Trust, (ii) having incurred all liabilities incurred by the
Trust, and (iii) all transactions between the Trust and the Certificateholder
will be disregarded.

     (b) In the event that the Trust has two or more equity owners for federal
income tax purposes, the Trust will be treated as a partnership. At any such
time that the Trust has two or more equity owners, this Agreement may need to be
amended, in accordance with Section 11.1 herein, and appropriate provisions may
need to be added so as to provide for treatment of the Trust as a partnership.

     (c) Except as set forth in Article V, the Owner Trustee shall have no
obligation to file tax filings for the Trust.

     (d) Neither the Owner Trustee nor any Certificateholder will, under any
circumstances, file a Form 8832, or any successor form, on behalf of the Trust.

SECTION 2.12      Covenants of the Transferor.
                  ---------------------------

     The Transferor agrees and covenants for the benefit of each Holder, each
Noteholder, the Note Insurer, the Indenture Trustee, the Trust Collateral Agent
and the Owner Trustee, during the term of this Agreement, and to the fullest
extent permitted by applicable law, that:

     (a) it shall not create, incur or suffer to exist any indebtedness or
engage in any business, except, in each case, as permitted by its certificate of
formation, limited liability company agreement and the Basic Documents;

     (b) it shall not, for any reason, institute proceedings for the Trust to be
adjudicated bankrupt or insolvent, or consent to or join in the institution of
bankruptcy or insolvency proceedings against the Trust, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to the bankruptcy of the Trust, or consent to the
appointment of a receiver, conservator, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Trust or a substantial part of
the property of the Trust or cause or permit the Trust to make any assignment
for the benefit of creditors, or admit in writing the inability of the Trust to
pay its debts generally as they become due, or declare or effect a moratorium on
the debt of the Trust or take any action in furtherance of any such action;

     (c) it shall obtain from each counterparty to each Basic Document to which
it or the Trust is a party and each other agreement entered into on or after the
date hereof to which it or the Trust is a party, an agreement by each such
counterparty that prior to one year and one day after the completion of the
event specified in Section 9.1(e) such counterparty shall not

                                       12
<PAGE>

institute against, or join any other Person in instituting against, it or the
Trust, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceedings under the laws of the United States or
any state of the United States; and

     (d) it shall not, for any reason, withdraw or attempt to withdraw from this
Agreement or any other Basic Document to which it is a party, to the full extent
permitted by law dissolve, or, without the consent required by its limited
liability company agreement, institute proceedings for it to be adjudicated a
bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against it, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, conservator,
liquidator, assignee, trustee, sequestrator (or other similar official) of it or
a substantial part of its property, or make any assignment for the benefit of
creditors, or admit in writing its inability to pay its debts generally as they
become due, or declare or effect a moratorium on its debt or take any action in
furtherance of any such action.

SECTION 2.13      Covenants of the Certificateholder.
                  ----------------------------------

     The Certificateholder by becoming a beneficial owner of a Certificate or by
its acceptance of a Certificate agrees:

     (a) to be bound by the terms and conditions of the Certificate of which
such Certificateholder is the beneficial owner and of this Agreement and the
other Basic Documents, including any supplements or amendments hereto and
thereto and to perform the obligations of a Certificateholder as set forth
therein or herein, in all respects as if it were a signatory hereto. This
undertaking is made for the benefit of the Trust, the Owner Trustee, the Note
Insurer, the Indenture Trustee, the Trust Collateral Agent, the Transferor, the
Noteholders and any other Certificateholder, present and future;

     (b) to the appointment of the Owner Trustee as such Certificateholder's
agent and attorney-in-fact to sign any federal income tax information return
filed on behalf of the Trust and, if requested by the Trust, to sign such
federal income tax information return in its capacity as holder of an interest
in the Trust;

     (c) not to take any position in such Certificateholder's tax returns
inconsistent with those taken in any tax returns filed by the Trust;

     (d) if such Certificateholder is other than an individual or other entity
holding its Certificate through a broker who reports securities sales on Form
1099-B, to notify the Owner Trustee in writing of any transfer by it of a
Certificate in a taxable sale or exchange, within 30 days of the date of the
transfer; and

     (e) until one year and one day after the completion of the events specified
in Section 9.1(e), not, for any reason, to institute proceedings for the Trust
or the Transferor (unless the consent required by its limited liability company
agreement is obtained) to be adjudicated a bankrupt or insolvent, or consent to
the institution of bankruptcy or insolvency proceedings

                                       13
<PAGE>

against the Trust or the Transferor, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, conservator,
liquidator, assignee, trustee, sequestrator (or other similar official) of the
Trust or the Transferor or a substantial part of its property, or cause or
permit the Trust or the Transferor to make any assignment for the benefit of its
creditors or to admit in writing its inability to pay its debts generally as
they become due, or declare or effect a moratorium on its debt or take any
action in furtherance of any such action.

                                  ARTICLE III
                    THE CERTIFICATE AND TRANSFER OF INTERESTS

SECTION 3.1       Initial Ownership.
                  -----------------

     Upon the formation of the Trust by the contribution by the Transferor
pursuant to Section 2.5 and until the issuance of the Certificate to the initial
Certificateholder the Transferor shall be the sole beneficiary of the Trust.

SECTION 3.2       The Certificate.
                  ---------------

     The Certificate shall be executed on behalf of the Trust by manual or
facsimile signature of an authorized officer of the Owner Trustee. A Certificate
bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of
the Trust, shall be validly issued and entitled to the benefit of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of such
Certificate or did not hold such offices at the date of authentication and
delivery of such Certificate. A transferee of a Certificate shall become a
Certificateholder, and shall be entitled to the rights and subject to the
obligations of a Certificateholder hereunder, upon due registration of such
Certificate in such transferee's name pursuant to Section 3.4 hereof.

SECTION 3.3       Authentication of Certificate.
                  -----------------------------

     Concurrently with the initial sale of the Receivables and other Trust
Property to the Trust pursuant to Section 2.01 of the Sale and Servicing
Agreement and the issuance of the Notes pursuant to the Indenture, the Owner
Trustee, or the Owner Trustee's authenticating agent, shall cause one
Certificate to be authenticated and delivered to or upon the written order of
the Transferor, signed by its president or any vice president, any assistant
treasurer or any assistant secretary without further company action by the
Transferor. No Certificate shall entitle its holder to any benefit under this
Agreement, or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication substantially in the form set forth
in Exhibit A, executed by the Owner Trustee or the Owner Trustee's
authenticating agent, by manual signature; such authentication shall constitute
conclusive evidence that such Certificate shall have been duly authenticated and
delivered hereunder. Each Certificate shall be dated the date of its
authentication.

                                       14
<PAGE>

SECTION 3.4       Registration of Transfer and Exchange of the Certificate.
                  --------------------------------------------------------

     (a) The Owner Trustee is hereby directed by the Transferor to issue on
behalf of the Trust to United Fidelity, a Certificate, duly executed and
delivered in exchange therefor, evidencing ownership of 100% of the beneficial
ownership in the assets of the Trust.

     (b) To the fullest extent permitted by law, neither the registered nor the
beneficial interest in any Certificate may be transferred, assigned,
hypothecated or pledged in any manner by any direct or indirect owner thereof
(including any transferee thereof subsequent to the date hereof) without the
prior written notice by such owner to each of the Note Insurer and the Owner
Trustee. Any purported transfer, assignment, hypothecation or pledge in any
manner of any such registered or beneficial interest in any Certificate in the
Trust in violation of this Section 3.4(b) shall be null and void and shall not
cause any rights to inure to the benefit of the purported transferee.

     (c) The Certificate Registrar shall keep or cause to be kept, at the
Corporate Trust Office, a Certificate Register in which, subject to such
reasonable regulations as it may prescribe, the Owner Trustee shall provide for
the registration of the Certificate and of transfers and exchanges of the
Certificate as herein provided. The Owner Trustee shall be the initial
Certificate Registrar.

     The Certificate Registrar shall provide the Trust Collateral Agent, the
Collateral Agent and the Note Insurer with the name and address of the
Certificateholder on the Closing Date, to the extent such information has been
provided to the Certificate Registrar and in the form provided to the
Certificate Registrar on such date. Upon any transfers of the Certificate, the
Certificate Registrar shall notify the Trust Collateral Agent, the Collateral
Agent and the Note Insurer of the name and address of the transferee in writing,
by facsimile, on the day of such transfer, or promptly thereafter.

     (d) Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office, the Trust shall execute, and the Owner Trustee, or the
Owner Trustee's authenticating agent, shall authenticate and deliver, in the
name of the designated transferee or transferees, a new Certificate evidencing a
100% beneficial interest in the assets of the Trust dated the date of
authentication by the Owner Trustee or any authenticating agent.

     Each Certificate surrendered for registration of transfer or exchange shall
be canceled and subsequently disposed of by the Owner Trustee in accordance with
its customary practice.

     No service charge shall be made for any registration of transfer or
exchange of the Certificate, but the Owner Trustee or the Certificate Registrar
may require payment of a sum sufficient to cover any expense, tax or
governmental charge that may be imposed in connection with any transfer or
exchange of the Certificate.

     (e) The Certificate has not been registered under the Securities Act or any
state securities law. The Certificate Registrar shall not register the transfer
of any Certificate or

                                       15
<PAGE>

unless it shall have received a representation letter or an Opinion of Counsel
satisfactory to the Transferor and the Note Insurer, to the effect that such
resale or transfer is made to a person who the transferor of the Certificate
reasonably believes is a qualified institutional buyer (within the meaning of
Rule 144A under the Securities Act ("Rule 144A")) that is aware that such resale
or other transfer is being made in reliance upon Rule 144A. The Certificate
shall bear a legend substantially to the effect set forth in the preceding two
sentences. Neither the Transferor, the Indenture Trustee, the Trust nor the
Owner Trustee is obligated to register the Certificate under the Securities Act
or to take any other action not otherwise required under this Agreement to
permit the transfer of the Certificate without registration. Notwithstanding
anything contained herein to the contrary, the Owner Trustee shall not be
responsible for ascertaining whether any transfer complies with the registration
provisions or exemptions from the Securities Act, the Securities Exchange Act of
1934, as amended, applicable state securities law or the Investment Company Act
of 1940, as amended; provided, however, that if a certificate is specifically
required to be delivered to the Owner Trustee by a purchaser or transferee of a
Certificate, the Owner Trustee shall be under a duty to examine the same to
determine whether it conforms to the requirements of this Trust Agreement and
shall promptly notify the party delivering the same if such certificate does not
so conform.

     (f) In furtherance of and in limitation of the foregoing, the
Certificateholder, by acceptance of its Certificate, specifically acknowledges
that it has no right to or interest in any monies at any time held pursuant to
the Spread Account Agreement prior to the release of such monies pursuant to
Section 3.03 of the Spread Account Agreement, such monies being held in trust
for the benefit of the Noteholders and the Note Insurer. Notwithstanding the
foregoing, in the event that it is ever determined that provisions of the Sale
and Servicing Agreement and the Spread Account Agreement shall be considered to
constitute a security agreement, the Transferor and the Certificateholder hereby
grant to the Collateral Agent for the benefit of the Noteholders and the Note
Insurer a first priority perfected security interest in such amounts, to be
applied as set forth in Section 3.03 of the Spread Account Agreement. In
addition, the Certificateholder by acceptance of its Certificate hereby appoints
the Transferor as its agent to pledge a first priority perfected security
interest in the Spread Account, and any amounts held therein from time to time
to the Collateral Agent for the benefit of the Indenture Trustee and the Note
Insurer pursuant to the Spread Account Agreement and agrees to execute and
deliver such instruments of conveyance, assignment, grant and confirmation, as
well as financing statements, in each case as the Note Insurer shall consider
reasonably necessary in order to perfect the Collateral Agent's Security
Interest in the Collateral (as such terms are defined in the Spread Account
Agreement).

     (g) No transfer of a Certificate shall be made to any Person unless the
Owner Trustee has received a certificate (substantially in the form of Exhibit C
hereto) from such transferee to the effect that such transferee is not a Plan,
and is not acting on behalf of or investing the assets of a Plan. The
preparation and delivery of the certificate referred to above shall not be an
expense of the Trust, the Owner Trustee or the Transferor but shall be borne by
the transferee. Each transferee of a beneficial ownership interest in a
book-entry Certificate shall be deemed to represent that it is not a Plan and is
not acting on behalf of or investing the assets of a Plan.

                                       16
<PAGE>

     (h) In order to preserve the exemption for resales and transfers provided
by Rule 144A, the Transferor shall provide to any Holder of a Certificate and
any prospective purchaser designated by such Holder, upon request of such Holder
or such prospective purchaser, such information required by Rule 144A as will
enable the resale of such Certificate to be made pursuant to Rule 144A. The
Owner Trustee shall cooperate with the Transferor in providing the Transferor
such information regarding the Certificate, the Trust Property and other matters
regarding the Trust as the Transferor shall reasonably request to meet its
obligations under the preceding sentence.

     (i) A Certificate may be transferred in whole but not in part. Any
attempted transfer of the Certificate that would divide the beneficial ownership
in the Trust shall be void.

SECTION 3.5       Mutilated, Destroyed, Lost or Stolen Certificates.
                  -------------------------------------------------

     If (a) any mutilated Certificate shall be surrendered to the Certificate
Registrar, or if the Certificate Registrar shall receive evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (b) there
shall be delivered to the Certificate Registrar, the Note Insurer and the Owner
Trustee, such security or indemnity as may be required by them to save each of
them harmless, then in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, the Trust shall execute and the Owner
Trustee, or the Owner Trustee's authenticating agent, shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like class, tenor and denomination. In
connection with the issuance of any new Certificate under this Section, the
Owner Trustee or the Certificate Registrar may require the payment of a sum
sufficient to cover any expense, tax or other governmental charge that may be
imposed in connection therewith. Any duplicate Certificate issued pursuant to
this Section shall constitute conclusive evidence of an ownership interest in
the Trust, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

SECTION 3.6       Persons Deemed Certificateholder.
                  --------------------------------

     Every Person by virtue of becoming a Certificateholder in accordance with
this Agreement shall be deemed to be bound by the terms of this Agreement. Prior
to due presentation of a Certificate for registration of transfer, the Owner
Trustee, the Certificate Registrar, the Note Insurer and any agent of the Owner
Trustee, the Note Insurer and the Certificate Registrar, may treat the Person in
whose name any Certificate shall be registered in the Certificate Register as
the owner of such Certificate for the purpose of receiving distributions
pursuant to the Sale and Servicing Agreement and the Spread Account Agreement
and for all other purposes whatsoever, and none of the Owner Trustee, the Note
Insurer or the Certificate Registrar nor any agent of the Owner Trustee, the
Note Insurer or the Certificate Registrar shall be bound by any notice to the
contrary.

                                       17
<PAGE>

                                   ARTICLE IV
                         VOTING RIGHTS AND OTHER ACTIONS

SECTION 4.1       Prior Notice with Respect to Certain Matters.
                  --------------------------------------------

     The Owner Trustee shall not take any of the actions set forth below unless
the Owner Trustee shall have notified the Certificateholder and the Note Insurer
of the proposed action and the Certificateholder, with the prior written consent
of the Note Insurer, has approved such action in writing, which approval has
been received by the Owner Trustee by the 30th day after such notice has been
given:

          (i) the election by the Trust to file an amendment to the Certificate
     of Trust (unless such amendment is required to be filed under the Trust
     Statute);

          (ii) the amendment of the Indenture by a supplemental indenture in
     circumstances where the consent of any Noteholder or the Note Insurer is
     required;

          (iii) the amendment of the Indenture by a supplemental indenture in
     circumstances where the consent of any Noteholder is not required and such
     amendment materially adversely affects the interest of the
     Certificateholders;

          (iv) except pursuant to Section 12.01 of the Sale and Servicing
     Agreement, the amendment, change or modification of the Sale and Servicing
     Agreement.

          (v) except as provided in Article IX hereof, dissolve, terminate or
     liquidate the Trust in whole or in part;

          (vi) do any act which would make it impossible to carry on the
     ordinary business of the Trust;

          (vii) confess a judgment against the Trust; or

          (viii) possess Trust assets, or assign the Trust's right to property,
     for other than a Trust purpose;

          (ix) cause the Trust to lend any funds to any entity;

          (x) change the Trust's purpose and powers from those set forth in this
     Agreement; or

          (xi) cause the Trust to incur, assume or guaranty any indebtedness
     except as set forth in the Basic Documents.

                                       18
<PAGE>

SECTION 4.2       Action with Respect to Certain Matters.
                  ---------------------------------------

     The Owner Trustee shall not have the power, except upon the written
direction of the Controlling Party, or after the Notes and Reimbursement
Obligations have been paid in full and the expiration of the Note Policy in
accordance with its terms and written notice thereof has been delivered to the
Owner Trustee, the Certificateholder (such directing party, the "Instructing
Party"), and in accordance with the Basic Documents, to (a) remove the Servicer,
the Master Servicer or the Back-up Servicer under the Sale and Servicing
Agreement or (b) except as expressly provided in the Basic Documents, sell the
Receivables after the termination of the Indenture. The Owner Trustee shall take
the actions referred to in the preceding sentence only upon written instructions
signed by the Instructing Party and the furnishing of indemnification
satisfactory to the Owner Trustee by the Certificateholder. Notwithstanding
anything to the contrary set forth in this Agreement, any instruction, direction
or consent to be given by the Controlling Party or Instructing Party under this
Agreement or any other Basic Document to the Owner Trustee shall include a
certification by such Controlling Party or Instructing Party that such Person is
the Controlling Party or Instructing Party in accordance with the provisions of
the Basic Documents, and the Owner Trustee shall have no liability to the extent
it relies in good faith thereon. With respect to instructions to the Owner
Trustee, the Certificateholder agrees to be subordinated to the rights of the
Controlling Party or Instructing Party, as the case may be, as set forth herein
and any fiduciary duties or liabilities of the Owner Trustee to the
Certificateholder in connection therewith shall be deemed waived. However, in no
event shall the Owner Trustee be deemed to owe any fiduciary duties to the
Controlling Party or Instructing Party.

SECTION 4.3       Restrictions on Certificateholder's Power.
                  -----------------------------------------

     (a) The Instructing Party shall not direct the Owner Trustee to take or
refrain from taking any action if such action or inaction would be contrary to
any obligation of the Trust or the Owner Trustee under this Agreement or any of
the Basic Documents or would be contrary to Section 2.3 nor shall the Owner
Trustee follow any direction to the extent the Owner Trustee has actual
knowledge that such direction is in violation hereof.

     (b) No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action, or
proceeding in equity or at law upon or under or with respect to this Agreement
or any Basic Document, unless the Certificateholder is the Instructing Party
pursuant to Section 6.3 and unless the Certificateholder previously shall have
given to the Owner Trustee a written notice of default and of the continuance
thereof, as provided in this Agreement, and also unless the Certificateholder
shall have made written request upon the Owner Trustee to institute such action,
suit or proceeding in its own name as Owner Trustee under this Agreement and
shall have offered to the Owner Trustee such reasonable indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Owner Trustee, for 30 days after its receipt of such notice,
request, and offer of indemnity, shall have neglected or refused to institute
any such action, suit, or proceeding, and during such 30-day period no request
or waiver inconsistent with such written request has been given to the Owner
Trustee pursuant to and in compliance with this Section or Section 6.3. For the
protection and enforcement of the provisions of this Section, the Owner Trustee
shall be entitled to such relief as can be given either at law or in equity.

                                       19
<PAGE>

SECTION 4.4       Control.
                  -------

     No Certificateholder shall have any right to vote or in any manner
otherwise control the operation and management of the Trust except as expressly
provided in this Agreement.

SECTION 4.5       Rights of Note Insurer.
                  ----------------------

     Notwithstanding anything to the contrary in the Basic Documents, subject to
Section 11.15, without the prior written consent of the Note Insurer (so long as
the Owner Trustee has not received written notice that an Insurer Default shall
have occurred and be continuing), the Owner Trustee shall not (i) remove the
Servicer, the Master Servicer or the Back-up Servicer, (ii) initiate any claim,
suit or proceeding by the Trust or compromise any claim, suit or proceeding
brought by or against the Trust, other than with respect to the enforcement of
any Receivable or any rights of the Trust thereunder, (iii) authorize the merger
or consolidation of the Trust with or into any other statutory trust or other
entity (other than in accordance with Section 3.10 of the Indenture) or (iv)
amend the Certificate of Trust (except as may be required by the Trust Statute).

                                   ARTICLE V
                                 CERTAIN DUTIES

SECTION 5.1       Accounting and Records to the Certificateholder, the Internal
                  Revenue Service and Others.
                  ---------------------------

     The Originator shall (a) maintain (or cause to be maintained) the books of
the Trust on a calendar year basis, (b) deliver (or cause to be delivered) to
each Certificateholder, as may be required by the Code and applicable Treasury
Regulations, such information as may be requested to enable each
Certificateholder to prepare its federal and state income tax returns, and (c)
file or cause to be filed such tax returns relating to the Trust provided to it
in execution form, and pursuant to direction of the Bank make such elections,
except as prohibited by Section 2.11(d), as may from time to time be requested
in connection with any applicable state or federal statute or rule or regulation
thereunder. The Originator shall make all elections pursuant to this Section as
directed in writing by the Bank. The Owner Trustee shall sign all tax
information returns provided to it in execution form pursuant to this Section
and any other returns as may be requested by the Bank, and in doing so shall
rely entirely upon, and shall have no liability for information provided by, or
calculations provided by, the Bank. The Trust shall elect under Section 1278 of
the Code to include in income currently any market discount that accrues with
respect to the Receivables. The Trust shall not make the election provided under
Section 754 of the Code. The Owner Trustee shall not take any action that, to
its actual knowledge, would cause the Trust to be treated as an association
taxable as a corporation under Treasury Regulations Section 301.7701-3(a) for
federal income tax purposes.

                                       20
<PAGE>

SECTION 5.2       Signature on Returns; Tax Matters Partner.
                  -----------------------------------------

     (a) The Owner Trustee shall sign on behalf of the Trust the tax returns of
the Trust, if any, unless applicable law requires a Certificateholder to sign
such documents, in which case, as provided in Section 5.1 such documents shall
be signed by the Bank as "tax matter partner".

     (b) The Certificateholder hereby elects the Bank as the "tax matters
partner" of the Trust pursuant to Section 6231 of the Code and the Treasury
Regulations promulgated thereunder.

                                   ARTICLE VI
                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

SECTION 6.1       General Authority.
                  -----------------

     The Owner Trustee is authorized and directed to execute and deliver on
behalf of the Trust the Basic Documents to which the Trust is named as a party
and each certificate or other document attached as an exhibit to or contemplated
by or incidental to the Basic Documents to which the Trust is named as a party
and any amendment thereto, in each case, in such form as the Transferor shall
approve as evidenced conclusively by the Owner Trustee's execution thereof, and
on behalf of the Trust, to direct the Indenture Trustee to authenticate and
deliver the Notes in the aggregate principal amount of $49,500,000. In addition
to the foregoing, the Owner Trustee is authorized, but shall not be obligated to
the extent the Originator is otherwise obligated pursuant to Section 11.01 of
the Sale and Servicing Agreement, to take all actions required of the Trust
pursuant to the Basic Documents. The Owner Trustee is further authorized from
time to time to take such action as the Instructing Party shall direct in
writing with respect to the Basic Documents so long as such activities are not
in violation of the terms of the Basic Documents. The Instructing Party hereby
agrees not to instruct the Owner Trustee to take any action which is
inconsistent with or in violation of the terms of the Basic Documents.

SECTION 6.2       General Duties.
                  --------------

     It shall be the duty of the Owner Trustee to discharge (or cause to be
discharged) all of its express responsibilities pursuant to the terms of this
Agreement and to administer the Trust in the interest of the registered
Certificateholder, subject to the Basic Documents and in accordance with the
provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee
shall be deemed to have discharged its duties and responsibilities hereunder and
under the Basic Documents (i) to the extent the Servicer has agreed in the Sale
and Servicing Agreement and/or Section 11.12 hereof to perform any act or to
discharge any duty of the Owner Trustee or the Trust hereunder or under any
Basic Document, and the Owner Trustee shall not be liable for the default or
failure of the Servicer to carry out its obligations under the Sale and
Servicing Agreement and/or Section 11.12 hereof or (ii) to the extent that Owner
Trustee has contracted with a third party acceptable to the Note Insurer to
discharge such duties and responsibilities. The Back-up Servicer, the Master
Servicer, the Trust Collateral Agent and the Transferor shall all be deemed
acceptable to the Note Insurer.

                                       21
<PAGE>

     It shall also be the duty of the Owner Trustee to cooperate with the Bank
in obtaining and preserving the Trust's qualification to do business in each
jurisdiction in which, based upon the advice of the Bank, such qualification is
or shall be necessary to protect the validity and enforceability of the Basic
Documents and related instruments and agreements, the Notes and the Trust
Property.

SECTION 6.3       Action upon Instruction.
                  -----------------------

     (a) Subject to Article IV and the terms of the Spread Account Agreement,
the Instructing Party shall have the exclusive right to direct the actions of
the Owner Trustee in the management of the Trust, so long as such instructions
are not in violation of the express terms set forth herein or in any Basic
Document. The Instructing Party shall not instruct the Owner Trustee in a manner
inconsistent with this Agreement or the Basic Documents.

     (b) The Owner Trustee shall not be required to take any action hereunder or
under any Basic Document if the Owner Trustee shall have reasonably determined,
or shall have been advised by counsel, that such action is likely to result in
liability or unreimbursed expenses on the part of the Owner Trustee or is
contrary to the terms hereof or of any Basic Document or is otherwise contrary
to law.

     (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or any
Basic Document, the Owner Trustee shall promptly give notice (in such form as
shall be appropriate under the circumstances) to the Instructing Party
requesting instruction from it as to the course of action to be adopted, and to
the extent the Owner Trustee acts in good faith in accordance with any written
instruction of the Instructing Party received, the Owner Trustee shall not be
liable on account of such action to any Person. If the Owner Trustee shall not
have received appropriate instruction within ten days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action, not inconsistent with this Agreement or
the Basic Documents, as it shall deem to be in the best interests of the
Certificateholder and shall have no liability to any Person for such action or
inaction except as otherwise expressly provided in this Agreement.

     (d) In the event that the Owner Trustee is unsure as to the application of
any provision of this Agreement or any Basic Document or any such provision is
ambiguous as to its application, or is, or appears to be, in conflict with any
other applicable provision, or in the event that this Agreement permits any
determination by the Owner Trustee or is silent or is incomplete as to the
course of action that the Owner Trustee is required to take with respect to a
particular set of facts, the Owner Trustee may give notice (in such form as
shall be appropriate under the circumstances) to the Instructing Party
requesting instruction from it and, to the extent that the Owner Trustee acts or
refrains from acting in good faith in accordance with any such instruction

                                       22
<PAGE>

received, the Owner Trustee shall not be liable, on account of such action or
inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Basic
Documents, as it shall deem to be in the best interests of the Certificateholder
and shall have no liability to any Person for such action or inaction except as
otherwise expressly provided in this Agreement.

SECTION 6.4       No Duties Except as Specified in this Agreement or in
                  Instructions.
                  -------------

     The Owner Trustee shall not have any duty or obligation to manage, make any
payment with respect to, register, record, sell, dispose of, or otherwise deal
with the Trust Property or act on behalf of the Issuer, or to otherwise take or
refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Owner Trustee or the Issuer is a party, except
as expressly provided by the terms of this Agreement or in any document or
written instruction received by the Owner Trustee pursuant to Section 6.3
hereunder; and no implied duties or obligations shall be read into this
Agreement or any Basic Document against the Owner Trustee. The Owner Trustee
shall have no responsibility for officer's certificates or certificates of
compliance to be executed by the Issuer or for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to prepare or file any filing for the Trust with the Securities and
Exchange Commission or to record this Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any Liens on any part of the
Trust Property that result from actions by, or claims against, the Owner Trustee
(solely in its individual capacity) and that are not related to the ownership or
the administration of the Trust Property.

SECTION 6.5       No Action Except under Specified Documents or Instructions.
                  ----------------------------------------------------------

     The Owner Trustee shall not manage, control, use, sell, dispose of or
otherwise deal with any part of the Trust Property except (i) in accordance with
the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (ii) in accordance with the Basic Documents, or
(iii) in accordance with any document or instruction delivered by the
Instructing Party to the Owner Trustee pursuant to Section 6.3 hereunder.

SECTION 6.6       Restrictions.
                  ------------

     The Owner Trustee shall not take any action (a) that violates the purposes
of the Trust set forth in Section 2.3 or (b) that, to the actual knowledge of
the Owner Trustee, would result in the Trust's becoming taxable as a corporation
for federal income tax purposes. The Instructing Party shall not direct the
Owner Trustee to take action that would violate the provisions of this Section.

                                       23
<PAGE>

                                  ARTICLE VII
                          CONCERNING THE OWNER TRUSTEE

SECTION 7.1       Acceptance of Trusts and Duties.
                  -------------------------------

     The Owner Trustee accepts the trusts hereby created and agrees to perform
its duties hereunder with respect to such trusts but only upon the terms of this
Agreement. The Owner Trustee also agrees to disburse all moneys actually
received by it constituting part of the Trust Property upon the terms of this
Agreement. The Owner Trustee shall not be answerable or accountable in its
individual capacity hereunder or under any Basic Document under any
circumstances, except (i) for its own willful misconduct, bad faith or gross
negligence, (ii) in the case of the inaccuracy of any representation or warranty
contained in Section 7.3 expressly made by the Owner Trustee, (iii) for
liabilities arising from the failure of the Owner Trustee to perform obligations
expressly undertaken by it in the last sentence of Section 6.4 hereof, (iv) for
any profits on investments issued by the Owner Trustee or any branch or
affiliate thereof in its commercial capacity or (v) for taxes, fees or other
charges on, based on or measured by, any fees, commissions or compensation
received by the Owner Trustee, and every provision of this Trust Agreement
relating to the conduct or affecting the liability of or affording protection to
the Owner Trustee shall be subject to this Section. In particular, but not by
way of limitation (and subject to the exceptions set forth in the preceding
sentence):

     (a) the Owner Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer of the Owner Trustee or for any information
contained in the Prospectus and the Private Placement Memorandum;

     (b) the Owner Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the instructions
of the Instructing Party, the Servicer or any Certificateholder in accordance
with the terms of this Agreement and the Basic Documents;

     (c) no provision of this Agreement or any Basic Document shall require the
Owner Trustee to expend or risk funds or otherwise incur any financial liability
in the performance of any of its rights or powers hereunder or under any Basic
Document if the Owner Trustee shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured or provided to it;

     (d) under no circumstances shall the Owner Trustee be liable for
indebtedness of the Trust evidenced by or arising under any of the Basic
Documents, including the principal of and interest on the Notes;

     (e) the Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by the
Transferor or for the form, character, genuineness, sufficiency, value or
validity of any of the Trust Property or for or in respect of the validity or
sufficiency of the Basic Documents, other than the certificate of authentication
on the Certificate, and the Owner Trustee shall in no event assume or incur any
liability, duty or obligation to the Indenture Trustee, the Trust Collateral
Agent, the Note Insurer, any Noteholder or to any Certificateholder, other than
as expressly provided for herein;

                                       24
<PAGE>

     (f) the Owner Trustee shall not be liable for the default or misconduct of
the Issuer, the Bank, the Transferor, the Indenture Trustee, the Trust
Collateral Agent, the Note Insurer or the Servicer under any of the Basic
Documents or otherwise and the Owner Trustee shall have no obligation or
liability to perform, oversee or otherwise monitor the obligations under this
Agreement or the Basic Documents that are required to be performed by the
Transferor under this Agreement, by the Indenture Trustee under the Indenture,
by the Trust Collateral Agent or the Servicer under the Sale and Servicing
Agreement, or by the Issuer under the Basic Documents, except as expressly set
forth in this Agreement; and

     (g) the Owner Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement, or to institute, conduct or
defend any litigation under this Agreement or otherwise or in relation to this
Agreement or any Basic Document, at the request, order or direction of the
Instructing Party of the Certificateholder, unless such Instructing Party or
Certificateholder has offered to the Owner Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner
Trustee to perform any discretionary act enumerated in this Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its gross negligence, bad faith or willful
misconduct in the performance of any such act.

SECTION 7.2       Furnishing of Documents.
                  -----------------------

     The Owner Trustee shall furnish to the Certificateholder, the Note Insurer
and the Rating Agencies promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Basic Documents.

SECTION 7.3       Representations and Warranties.
                  ------------------------------

     Each of the Owner Trustee and Wilmington Trust hereby represents and
warrants to the Transferor, the Note Insurer (which shall have relied on such
representations and warranties in issuing the Note Policy) and the Holders,
that:

     (a) It is a Delaware banking corporation, duly organized and validly
existing in good standing under the laws of the State of Delaware and it holds
all grants, authorizations, consents, orders and approvals from all governmental
authorities of the State of Delaware and under the laws of the State of Delaware
to carry on its trustee business as presently conducted. It has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement.

     (b) It has taken all corporate action necessary to authorize the execution
and delivery by it of this Agreement, and this Agreement has been executed and
delivered by one of its authorized signatories who is duly authorized to execute
and deliver this Agreement on its behalf.

                                       25
<PAGE>

     (c) Neither the execution nor the delivery by it of this Agreement, nor the
consummation by it of the transactions contemplated hereby nor compliance by it
with any of the terms or provisions hereof will contravene any federal or
Delaware state law, governmental rule or regulation governing the banking or
trust powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound or result in the creation or imposition of
any lien, charge or encumbrance on the Trust Property resulting from action by
or claims against Wilmington Trust, except as expressly contemplated by this
Agreement or the Indenture.

     (d) The Owner Trustee has no present intent to cause a voluntary bankruptcy
of the Trust.

SECTION 7.4       Reliance; Advice of Counsel.
                  ---------------------------

     (a) In the absence of bad faith, willful misconduct or gross negligence,
the Owner Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper reasonably believed by it to be
genuine and to be signed by the proper party or parties; however, the Owner
Trustee shall examine the same to determine whether or not they conform on their
face to the requirements of this Agreement. The Owner Trustee may accept a
certified copy of a resolution of the board of directors or other governing body
of any corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of the determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer,
secretary or other authorized officers of the relevant party, as to such fact or
matter, and such certificate shall constitute full protection to the Owner
Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

     (b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the Basic
Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled persons to be selected with reasonable care and employed by it.
The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such persons and according to such opinion not
contrary to this Agreement or any Basic Document.

                                       26
<PAGE>

SECTION 7.5       Not Acting in Individual Capacity.
                  ---------------------------------

     Except as provided in this Article VII, in accepting the trusts hereby
created, Wilmington Trust acts solely as Owner Trustee hereunder and not in its
individual capacity and all Persons having any claim against the Owner Trustee
by reason of the transactions contemplated by this Agreement or any Basic
Document shall look only to the Trust Property for payment or satisfaction
thereof.

SECTION 7.6       Owner Trustee Not Liable for the Certificate or Receivables.
                  -----------------------------------------------------------

     The recitals contained herein and in the Certificate (other than the
signature and countersignature of the Owner Trustee on the Certificate) shall be
taken as the statements of the Transferor and the Owner Trustee assumes no
responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificate (other than the signature and
countersignature of the Owner Trustee on the Certificate) or the Notes, or of
any Receivable or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Receivable, or the perfection and priority of any security
interest created by any Receivable in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Trust Property or its ability to generate the payments to be distributed to
the Certificateholder under this Agreement or the Noteholders under the
Indenture, including, without limitation: the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Receivable on any computer or other
record thereof; the validity of the assignment of any Receivable to the Trust or
of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Transferor,
the Servicer or any other Person with any warranty or representation made under
any Basic Document or in any related document or the accuracy of any such
warranty or representation or any action of the Trust Collateral Agent or the
Servicer, or any subservicer taken in the name of the Owner Trustee.

SECTION 7.7       Owner Trustee May Own the Certificate and Notes.
                  -----------------------------------------------

     The Owner Trustee in its individual or any other capacity may become the
owner or pledgee of the Certificate or Notes and may deal with the Transferor,
the Trust Collateral Agent and the Servicer in banking transactions with the
same rights as it would have if it were not Owner Trustee.

SECTION 7.8       Payments from Trust Property.
                  ----------------------------

     All payments to be made by the Trust Collateral Agent on behalf of the
Trust under this Agreement or any of the Basic Documents to which the Trust or
the Owner Trustee is a party shall be made only from the income and proceeds of
the Trust Property and only to the extent that the Trust Collateral Agent shall
have received income or proceeds from the Trust

                                       27
<PAGE>

Property to make such payments in accordance with the terms hereof. Wilmington
Trust, or any successor thereto, in its individual capacity, shall not be liable
for any amounts payable on behalf of the Trust under this Agreement or any of
the Basic Documents to which the Trust or the Owner Trustee is a party.

SECTION 7.9       Doing Business in Other Jurisdictions.
                  -------------------------------------

     Notwithstanding anything contained herein to the contrary, neither
Wilmington Trust or any successor thereto, nor the Owner Trustee shall be
required to take any action in any jurisdiction other than in the State of
Delaware if the taking of such action will, even after the appointment of a
co-trustee or separate trustee in accordance with Section 10.5 hereof, (i)
require the consent or approval or authorization or order of or the giving of
notice to, or the registration with or the taking of any other action in respect
of, any state or other governmental authority or agency of any jurisdiction
other than the State of Delaware; (ii) result in any fee, tax or other
governmental charge under the laws of the State of Delaware becoming payable by
Wilmington Trust (or any successor thereto); or (iii) subject Wilmington Trust
(or any successor thereto) to personal jurisdiction in any jurisdiction other
than the State of Delaware for causes of action arising from acts unrelated to
the consummation of the transactions by Wilmington Trust (or any successor
thereto) or the Owner Trustee, as the case may be, contemplated hereby.

                                  ARTICLE VIII
                          COMPENSATION OF OWNER TRUSTEE

SECTION 8.1       Owner Trustee's Fees and Expenses.
                  ---------------------------------

     In accordance with the priorities set forth in Section 5.12(a) of the Sale
and Servicing Agreement, the Owner Trustee shall receive as compensation for its
services hereunder the Owner Trustee Fee, and the Owner Trustee shall be
entitled to be reimbursed in accordance with such priorities for its other
reasonable expenses incurred hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as the Owner Trustee may employ in connection with the exercise and performance
of its rights and its duties hereunder and under the Basic Documents.

SECTION 8.2       Indemnification.
                  ---------------

     Each of the Owner Trustee and Wilmington Trust and its officers, directors,
successors, assigns, agents and servants shall be indemnified by the Bank as and
to the extent set forth in Section 7.03(c) of the Sale and Servicing Agreement.

SECTION 8.3       Payments to the Owner Trustee.
                  -----------------------------

     Any amounts paid to the Owner Trustee pursuant to this Article VIII shall
be deemed not to be a part of the Trust Property immediately after such payment.

                                       28
<PAGE>

SECTION 8.4       Non-Recourse Obligations.
                  ------------------------

     Notwithstanding anything in this Agreement or any Basic Document, the Owner
Trustee agrees in its individual capacity and in its capacity as Owner Trustee
for the Trust that all obligations of the Trust to the Owner Trustee
individually or as Owner Trustee for the Trust shall be recourse to the Trust
Property only, shall be paid in accordance with the priorities set forth in
Section 5.12(a) of the Sale and Servicing Agreement and specifically shall not
be recourse to the assets of any Holder (except as otherwise provided herein).

                                   ARTICLE IX
                         TERMINATION OF TRUST AGREEMENT

SECTION 9.1       Termination of Trust Agreement.
                  ------------------------------

     (a) This Agreement shall terminate and the Trust shall wind up and dissolve
upon the latest of (i) the maturity or other liquidation of the last Receivable
(including the purchase by the Servicer at its option of the corpus of the Trust
as described in Section 10.01 of the Sale and Servicing Agreement) and the
subsequent distribution of amounts in respect of such Receivables as provided in
the Basic Documents and the satisfaction and discharge of the Indenture and the
termination of the Sale and Servicing Agreement, (ii) the payment to the
Certificateholder of all amounts required to be paid to the Certificateholder
pursuant to this Agreement, (iii) the expiration of the Note Policy in
accordance with its terms, and (iv) the payment to each of the Noteholders and
the Note Insurer of all amounts payable to it under the Basic Documents;
provided, however, that the rights to indemnification under Section 8.2 and the
rights of the Owner Trustee under Section 8.1 shall survive the termination of
the Trust and that the winding up of the Trust shall be conducted in accordance
with Section 3808(e) of the Trust Statute. The Transferor or the Servicer shall
promptly notify the Owner Trustee and the Note Insurer in writing of any
prospective termination pursuant to this Section 9.1. The bankruptcy,
liquidation, dissolution, death or incapacity of the Certificateholder shall not
(x) operate to terminate this Agreement or the Trust, nor (y) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or Trust Property nor (z) otherwise affect the rights,
obligations and liabilities of the parties hereto.

     (b) Neither the Transferor nor any Certificateholder shall be entitled to
revoke or terminate the Trust.

     (c) Notice of any termination of the Trust, specifying the Distribution
Date upon which the Certificateholder shall surrender its Certificate to the
Trust Collateral Agent, as paying agent who shall then surrender such
Certificate to the Owner Trustee for cancellation, shall be given by the Owner
Trustee by letter to the Certificateholder mailed within five Business Days of
receipt of notice of such termination from the Servicer given pursuant to
Section 10.01 of the Sale and Servicing Agreement, stating (i) the Distribution
Date upon or with respect to which final payment of the Certificate shall be
made upon presentation and surrender of the Certificate at the office of the
Trust Collateral Agent therein designated, (ii) the amount of any

                                       29
<PAGE>

such final payment and (iii) that the Record Date otherwise applicable to such
Distribution Date is not applicable, payments being made only upon presentation
and surrender of the Certificate at the office of the Owner Trustee therein
specified. The Owner Trustee shall give such notice to the Certificate Registrar
(if other than the Owner Trustee), the Note Insurer and the Trust Collateral
Agent at the time such notice is given to the Certificateholder. Upon
presentation and surrender of the Certificate to the Owner Trustee, the Trust
Collateral Agent shall cause to be distributed to the Certificateholder amounts
distributable on such Distribution Date pursuant to Section 5.12(a) of the Sale
and Servicing Agreement.

     In the event that the Certificateholder shall not surrender its Certificate
for cancellation within six months after the date specified in the
above-mentioned written notice, the Owner Trustee shall give a second written
notice to the Certificateholder to surrender its Certificate for cancellation
and receive the final distribution with respect thereto. If within one year
after the second notice the Certificate shall not have been surrendered for
cancellation, any funds remaining in the Trust after exhaustion of such remedies
shall be distributed, subject to applicable escheat laws, by the Trust
Collateral Agent to the Transferor and the Certificateholder shall look solely
to the Transferor for payment.

     (d) Any funds remaining in the Trust after funds for final distribution
have been distributed or set aside for distribution and reasonable provision has
been made for known claims and obligations of the Trust shall be distributed to
the Certificateholder.

     (e) Upon dissolution and the winding up of the Trust pursuant to Section
9.1(a), the Owner Trustee shall cause the Certificate of Trust to be canceled by
filing a certificate of cancellation with the Secretary of State in accordance
with the provisions of Section 3810 of the Trust Statute.

                                   ARTICLE X
             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

SECTION 10.1      Eligibility Requirements for Owner Trustee.
                  ------------------------------------------

     The Owner Trustee shall at all times be a corporation or other institution
(i) satisfying the provisions of Section 3807(a) of the Trust Statute; (ii)
authorized to exercise corporate trust powers; (iii) having a combined capital
and surplus of at least $50,000,000 and subject to supervision or examination by
federal or state authorities and (iv) acceptable to the Note Insurer in its sole
discretion, so long as an Insurer Default shall not have occurred and be
continuing. If such corporation or other institution shall publish reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation or other
institution shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section, the Owner Trustee shall resign immediately in the manner and with
the effect specified in Section 10.2.

                                       30
<PAGE>

SECTION 10.2      Resignation or Removal of Owner Trustee.
                  ---------------------------------------

     (a) The Owner Trustee may at any time resign and be discharged from the
trusts hereby created by giving 60 days' written notice thereof to the
Transferor, the Note Insurer, the Certificateholder and the Servicer. Upon
receiving such notice of resignation, the Certificateholder shall with the prior
written consent of the Note Insurer use its best efforts promptly to appoint a
successor Owner Trustee in the manner and meeting the qualifications hereinafter
provided by written instrument or instruments delivered pursuant to Section 11.3
to such resigning Owner Trustee and the successor Owner Trustee. Except as
provided in subsection (b) of this Section 10.2, the appointment of any
successor Owner Trustee is subject to the consent and approval of the
Certificateholder. The Certificateholder may remove the Owner Trustee for any
reason and appoint a successor Owner Trustee by written instrument or
instruments delivered to the Owner Trustee so removed and the successor Owner
Trustee. If no successor Owner Trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Owner Trustee may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

     (b) If at any time, the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Certificateholder or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Certificateholder, with the prior written
consent of the Note Insurer, so long as an Insurer Default shall not have
occurred and be continuing, may remove the Owner Trustee. If the Owner Trustee
shall be removed under the authority of the immediately preceding sentence, the
removing party shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed, one copy to the Note Insurer, one copy to the
successor Owner Trustee and payment of all fees owed to the outgoing Owner
Trustee.

     (c) Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.3 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Transferor shall provide notice of such
resignation or removal of the Owner Trustee to the Rating Agencies.

SECTION 10.3      Successor Owner Trustee.
                  -----------------------

     Any successor Owner Trustee appointed pursuant to Section 10.2 shall
execute, acknowledge and deliver to the Transferor, the Note Insurer, the
Servicer and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of
the predecessor Owner Trustee shall become effective and such successor Owner
Trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor under
this Agreement, with

                                       31
<PAGE>

like effect as if originally named as Owner Trustee. The predecessor Owner
Trustee shall upon payment of its fees and expenses deliver to the successor
Owner Trustee all documents and statements and monies held by it under this
Agreement; and the Transferor and the predecessor Owner Trustee shall execute
and deliver such instruments and do such other things as may reasonably be
required for fully and certainly vesting and confirming in the successor Owner
Trustee all such rights, powers, duties and obligations.

     No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.1.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Servicer shall mail notice of the successor of such Owner
Trustee to all Certificateholders, the Indenture Trustee, the Trust Collateral
Agent, the Note Insurer, the Noteholders and the Rating Agencies. If the
Servicer shall fail to mail such notice within 10 days after acceptance of
appointment by the successor Owner Trustee, the successor Owner Trustee shall
cause such notice to be mailed at the expense of the Servicer. Upon acceptance
of appointment by a successor Owner Trustee pursuant to this Section, such
successor Owner Trustee shall file or cause to be filed an amendment to the
Certificate of Trust of the Secretary of State in the State of Delaware,
identifying its name and place of business in Delaware (the cost of which shall
be borne by the Bank).

SECTION 10.4      Merger or Consolidation of Owner Trustee.
                  ----------------------------------------

     Any corporation into which the Owner Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 10.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding;
provided further that the Owner Trustee shall (i) mail notice of such merger or
consolidation to the Note Insurer and the Rating Agencies and (ii) file an
amendment to the Certificate of Trust as required under Section 10.3 above.

SECTION 10.5      Appointment of Co-Trustee or Separate Trustee.
                  ---------------------------------------------

     Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Property or any Financed Vehicle may at the time be located,
the Servicer and the Owner Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Owner Trustee and the Note Insurer to act as co-trustee, jointly with the
Owner Trustee, or separate trustee or separate trustees, of all or any part of
the Trust Property, and to vest in such Person, in such capacity, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and

                                       32
<PAGE>

trusts as the Servicer and the Owner Trustee may consider necessary or
desirable. If the Servicer shall not have joined in such appointment within 15
days after the receipt by it of a request so to do, the Owner Trustee shall have
the power to make such appointment with the consent of the Note Insurer. No
co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor trustee pursuant to Section 10.1 and no
notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 10.3.

     Each separate trustee and co-trustee shall, to the extent permitted by law,
be appointed and act subject to the following provisions and conditions:

          (i) all rights, powers, duties and obligations conferred or imposed
     upon the Owner Trustee shall be conferred upon and exercised or performed
     by the Owner Trustee and such separate trustee or co-trustee jointly (it
     being understood that such separate trustee or co-trustee is not authorized
     to act separately without the Owner Trustee joining in such act), except to
     the extent that under any law of any jurisdiction in which any particular
     act or acts are to be performed, the Owner Trustee shall be incompetent or
     unqualified to perform such act or acts, in which event such rights,
     powers, duties and obligations (including the holding of title to the Trust
     or any portion thereof in any such jurisdiction) shall be exercised and
     performed singly by such separate trustee or co-trustee, but solely at the
     direction of the Owner Trustee;

          (ii) no trustee under this Agreement shall be personally liable by
     reason of any act or omission of any other trustee under this Agreement;
     and

          (iii) the Servicer and the Owner Trustee acting jointly may at any
     time accept the resignation of or remove any separate trustee or
     co-trustee.

     Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Owner Trustee or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a
copy thereof given to the Servicer and a copy to the Note Insurer.

     Any separate trustee or co-trustee may at any time appoint the Owner
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

                                       33
<PAGE>

                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.1      Supplements and Amendments.
                  --------------------------

     (a) This Agreement may be amended by the Transferor and the Owner Trustee,
with the prior written consent of the Note Insurer and with prior written notice
to the Rating Agencies, without the consent of any of the Noteholders or the
Certificateholder, (i) to cure any ambiguity or defect or (ii) to add any other
provisions with respect to matters or questions arising under this Agreement
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that any such action set forth in clause (ii) above shall not, as
evidenced by an Opinion of Counsel delivered to the Owner Trustee, the Rating
Agencies and the Note Insurer, which may be based upon a certificate of the
Servicer, affect in any respect the interests of any Noteholder or
Certificateholder.

     (b) This Agreement may also be amended from time to time, with the prior
written consent of the Note Insurer, by the Transferor and the Owner Trustee,
with prior written notice to the Rating Agencies, to the extent such amendment
affects the interest of the Noteholders, with the consent of the Noteholders
holding not less than 51% of the outstanding Note Balance, and the consent of
the Certificateholder (which consent of any Holder of a Certificate or Note
given pursuant to this Section or pursuant to any other provision of this
Agreement shall be conclusive and binding on such Holder and on all future
Holders of such Certificate or Note and of any Certificate or Note issued upon
the transfer thereof or in exchange thereof or in lieu thereof whether or not
notation of such consent is made upon the Certificate or Note) for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement other than under (a) above or of modifying in any
manner the rights of the Noteholders or the Certificateholder; provided,
however, that, subject to the express rights of the Note Insurer under the Basic
Documents no such amendment shall (a) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that shall be required to be made for the benefit
of the Noteholders or the Certificateholders or (b) reduce the aforesaid
percentage of the outstanding Note Balance required to consent to any such
amendment, without the consent of the Holders of all the outstanding Notes.

     Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Note Insurer, the Indenture Trustee, the
Trust Collateral Agent, the Collateral Agent and each of the Rating Agencies.

     It shall not be necessary for the consent of the Certificateholder or the
Noteholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents (and any
other consents of the Certificateholder provided for in this Agreement or in any
other Basic Document) and of evidencing the authorization of the execution
thereof by the Certificateholder shall be subject to such reasonable
requirements as the

                                       34
<PAGE>

Owner Trustee may prescribe. Promptly after the execution of any amendment to
the Certificate of Trust, the Owner Trustee shall cause the filing of such
amendment with the Secretary of State.

     Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee and the Note Insurer shall be entitled
to receive and rely upon an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by this Agreement, that all conditions
precedent to the execution and delivery of such amendment have been satisfied
and that any such amendment would not result in the Trust becoming taxable as a
corporation for federal income tax purposes. The Owner Trustee may, but shall
not be obligated to, enter into any such amendment which affects the Owner
Trustee's own rights, duties or immunities under this Agreement or otherwise.

SECTION 11.2      Limitations on Rights of Others.
                  -------------------------------

     The provisions of this Agreement are solely for the benefit of the Owner
Trustee, the Transferor, the Certificateholders, the Servicer, the Note Insurer
and, to the extent expressly provided herein, the Indenture Trustee, the Trust
Collateral Agent, the Collateral Agent and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Property or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

SECTION 11.3      Notices.
                  -------

     (a) Unless otherwise expressly specified or permitted by the terms hereof,
all notices shall be in writing and shall be deemed given upon receipt
personally delivered, delivered by overnight courier or mailed first class mail
or certified mail, in each case return receipt requested, and shall be deemed to
have been duly given upon receipt, if to the Owner Trustee, addressed to the
Corporate Trust Office; if to the Transferor, addressed to United Fidelity
Finance, LLC Attention: President, if to the Note Insurer, addressed to
Financial Security Assurance Inc., 350 Park Avenue, New York, NY 10022,
Attention: Transaction Oversight, Re: United Fidelity Auto Receivables Trust
2002-A (in each case in which notice or other communication to Financial
Security Assurance, Inc. refers to an Event of Default, a claim on the Note
Policy or with respect to which failure on the part of Financial Security
Assurance, Inc. to respond shall be deemed to constitute consent or acceptance,
then a copy of such notice or other communication should also be sent to the
attention of the General Counsel and the Head of the Financial Guaranty Group,
marked "URGENT MATERIAL ENCLOSED"); if to the Rating Agencies, addressed to
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007 or
Standard & Poor's, a division of The McGraw-Hill Companies, 55 Water Street, New
York, New York 10041 respectively, if to the Indenture Trustee, the Trust
Collateral Agent, the Collateral Agent, the Servicer, the Back-up Servicer or
the Master Servicer, addressed to each respective entity as set forth in the
notice provisions of the Basic Documents, or, as to each party, at such other
address as shall be designated by such party in a written notice to each other
party.

                                       35
<PAGE>

     (b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Certificateholder receives such notice.

SECTION 11.4      Severability.
                  ------------

     Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

SECTION 11.5      Separate Counterparts.
                  ---------------------

     This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same
instrument.

SECTION 11.6      Assignments.
                  -----------

     This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.

SECTION 11.7      Note Insurer.
                  ------------

     Without limiting the generality of the foregoing, all covenants and
agreements in this Agreement which confer rights upon the Note Insurer shall be
for the benefit of and run directly to the Note Insurer, and the Note Insurer
shall be entitled to rely on and enforce such covenants and agreements, subject,
however, to the limitations on such rights provided in this Agreement and the
Basic Documents. The Note Insurer may disclaim any of its respective rights and
powers under this Agreement (but not its duties and obligations under the Note
Policy), upon delivery of a written notice to the Owner Trustee.

SECTION 11.8      No Petition.
                  -----------

     The Owner Trustee (in its individual capacity and as Owner Trustee), by
entering into this Agreement, each Certificateholder, by accepting a
Certificate, and the Indenture Trustee and each Noteholder by accepting the
benefits of this Agreement, hereby covenants and agrees that they will not at
any time institute against the Transferor or the Trust, or join in any
institution against the Transferor or the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy or similar law in connection
with any obligations relating to the Certificate, the Notes, this Agreement or
any of the Basic Documents.

                                       36
<PAGE>

SECTION 11.9      No Recourse.
                  -----------

     Each Certificateholder, by accepting a Certificate, acknowledges that such
Certificateholder's Certificate represents a 100% beneficial interest in the
assets of the Trust only and does not represent an interest in or obligation of
the Transferor, the Servicer, the Back-up Servicer, the Master Servicer, the
Originator, the Owner Trustee, the Indenture Trustee, the Note Insurer, the
Collateral Agent, the Trust Collateral Agent or any Affiliate thereof and no
recourse may be had against such parties or their assets, except as may be
expressly set forth or contemplated in this Agreement, the Certificate or the
Basic Documents.

SECTION 11.10     Headings.
                  --------

     The headings of the various Articles and Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

SECTION 11.11     GOVERNING LAW.
                  -------------

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

SECTION 11.12     The Bank.
                  --------

     The Bank, as administrator of the Trust, is authorized to prepare, or cause
to be prepared, execute and deliver on behalf of the Trust all such documents,
reports, filings, instruments, certificates, tax returns and opinions and take
such action as it shall be the duty of the Trust or Owner Trustee to prepare,
file, deliver or take pursuant to the Basic Documents. Upon written request, the
Owner Trustee shall execute and deliver to the Bank a limited power of attorney
appointing the Bank the Trust's agent and attorney-in-fact to prepare, or cause
to be prepared, execute and deliver all such documents, reports, filings,
instruments, certificates and opinions. It is acknowledged that the Owner
Trustee's role is that of a passive trustee and that the fees being charged by
the Owner Trustee are not intended to compensate the Owner Trustee for
performing the duties described in the first sentence of this paragraph, it
being understood that such duties are not the responsibility of the Owner
Trustee.

SECTION 11.13     No Legal Title to Trust Property in Certificateholder.
                  -----------------------------------------------------

     The Certificateholder shall not have legal title to any part of the Trust
Property. The Certificateholder shall be entitled to receive distributions only
in accordance with the Sale and Servicing Agreement, the Spread Account
Agreement and this Agreement. No transfer, by operation of law or otherwise, of
any right, title or interest of the Certificateholder to and in its ownership
interest in the Trust Property shall operate to terminate this Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer
to it of legal title to any part of the Trust Property.

                                       37
<PAGE>

SECTION 11.14     Bankruptcy Matters.
                  ------------------

     Neither the Certificateholder nor any party to this Agreement shall not (i)
take any action to cause the Trust to dissolve in whole or in part; (ii)
institute the filing of a bankruptcy petition based upon any claim in its favor
arising hereunder or under the Basic Documents; (iii) file a petition or consent
to a petition seeking relief on behalf of the Trust under bankruptcy laws; (iv)
consent to the appointment of any trustee, receiver, conservator, assignee,
sequestrator, custodian, liquidator (or other similar official) of the Trust or
a substantial portion of the property of the Trust; or (v) cause the Trust to
make any general assignment for the benefit of creditors of the Trust or take
any action in furtherance of any of the above actions unless the
Certificateholder and the Indenture Trustee shall have provided their written
consent.

SECTION 11.15     Effect of Policy Expiration Date.

     Notwithstanding anything to the contrary set forth herein, all references
to any right of the Note Insurer to direct, appoint, consent to, accept, approve
of, take or omit to take any action under this Agreement or any other Basic
Document shall be inapplicable at all times after the Policy Expiration Date,
and (i) if such reference provides for another party or parties to take or omit
to take any such action following an Insurer Default, such party or parties
shall also be entitled to take or omit to take such action following the Policy
Expiration Date and (ii) if such reference does not provide for another party or
parties to take or omit to take any such action following an Insurer Default,
then the Indenture Trustee acting at the direction of the Majority Noteholders
shall have the right to take or omit to take any such action following the
Policy Expiration Date. In addition, any other provision of this Agreement or
any other Basic Document which is operative based in whole or in part on whether
an Insurer Default has or has not occurred shall, at all times on or after the
Policy Expiration Date, be deemed to refer to whether or not the Policy
Expiration Date has occurred.

                                       38
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to
be duly executed by their respective officers hereunto duly authorized as of the
day and year first above written.

                                        WILMINGTON TRUST COMPANY,
                                        as Owner Trustee

                                        By: /s/ Donald G. MacKelcan
                                            ----------------------------
                                        Name:  Donald G. MacKelcan
                                               -------------------------
                                        Title: Vice President
                                               -------------------------

                                        UNITED FIDELITY FINANCE, LLC,
                                        as Transferor

                                        By: /s/ Donald R. Neel
                                            ----------------------------
                                        Name:  Donald R. Neel
                                               -------------------------
                                        Title: President
                                               -------------------------

                     [Signature Page to the Trust Agreement]

                                       39

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