Opinion ID: 217197
Heading Depth: 3
Heading Rank: 1

Heading: The 1995 Amendment and 2002 Restatement

Text: According to the government, Article IV of the Plan, titled Contribution and Allocation, was amended in 1995 to add a 401(k) feature (the 1995 Amendment). The 1995 Amendment replaced contributions made exclusively by the Company with a system whereby Plan investors called Participantscontributed a percentage of their paycheckscalled elective deferralsinto the Plan. Lunde would then match fifty percent of each Participant's elective deferral with an employer contribution. Funds in the Plan Account were pooled and administered by the Eriksens. According to the government, when the Eriksens added the 401(k) feature, they did not redraft the 1991 Plan; instead, only Article IV of the 1991 Plan was amended. As evidence of this change, the government introduced two versions of the 1991 Plan. In the first version, which the government proffered as the original 1991 Plan, Article IV refers only to discretionary Employer's Contribution[s]: For each Plan Year, the Employer shall contribute to the Plan such amount as shall be determined by the Employer. However, in the second document, Article IV sets forth procedures for a Participant's Salary Reduction Election. Article 4.2 of that document provides, inter alia, that [e]ach Participant may elect to defer his Compensation which would have been received in the Plan Year, but for the deferral election, by up to 10 [percent]. In addition to the documentary evidence, the government presented testimony that the Plan was amended in 1995. For instance, the Plan's stockbroker testified that new trust certification papers were filed with the Plan's brokerage firm in 1995. On January 1, 2002, the Plan was restated and a new document titled Lunde Electric Company, Inc. 401(k) Profit Sharing Plan became operative (the 2002 Restatement). Although the date of the Plan's effectiveness was not written in one space provided in the document, several documents signed and dated by Sigmund and Raymond contained information about the 2002 Restatement's effective date. These included a Consent to Corporate Authorization, which RESOLVED that the form amended 401(k) Profit Sharing Plan and Trust effective January 1, 2002, presented to this meeting is hereby approved and adopted. Additionally, the 2002 Restatement included a Supplemental Participation Agreement dated January 1, 2002, and signed by Raymond as Participating Employer and by both Raymond and Sigmund as Trustees. This document also referred to a 401(k) plan.