HomeMy WebLinkAbout4.08 ICMA Retirement 457 Plan
CITY CLERK
File # D[7]~[D]-[3J~
X 7000 -50
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 6, 2007
SUBJECT:
Amendment to the ICMA Retirement Corporation 457 Plan and
Trust
Report Prepared by Paul Rankin, Administrative Services Director f~..
ATTACHMENTS:
Resolution
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\V Staff recommends that the City Council adopt the Resolution.
RECOMMENDATlON~
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FINANCIAL STATEMEN"T:
None. The City is not making any contributions on behalf of
employees to this plan. Employee participation is voluntary and
totally funded by employee contributions.
DESCRIPTION: On June 21, 2005 the City Council adopted Resolution No. 116-05,
which amended the City's Benefit Plan. Included in the amendment provisions to the benefit plan was a
provision (Section 9) to allow employees to participate, on a voluntary basis, in additional deferred
compensation programs administered by the International City Management Association Retirement
Corporation ("ICMA-RC"); an additional stipulation was included in the Resolution that any such
program would not require contributions by the City on behalf of employees.
Currently, the City is emolled in an ICMA Section 457 deferred compensation program which allows
employees to defer a portion of their salary for retirement, subject to limitations established by the Internal
Revenue Service (IRS). At the present time, the plan is being updated to comply with legal requirements
and to provide sponsors and participants with additional plan flexibility. The significant new Plan
provision is an expansion of distribution options of all, or a portion of, a vested account balance at any
time after an active and current employee has reached age 70'l2. Simply, a current employee with the City
who has reached the age of 70'l2 may continue employment and receive distributions from his or her 457
account. The model also makes technical changes as to how accounts are administered under the Plan.
In the past there have updates to the Model Plan documents used by ICMA-RC for its retirement plans.
This action will restate the plan in order to assure that we are using the most current document. The
Resolution will allow the City Manager in the future to execute updates to the plan on behalf of the City.
COpy TO:
Page 1 of2
ITEM NO.
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These updates would typically involve technical changes due to new regulatory requirements or changes
in services offered by ICMA-RC.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution.
COPY TO:
Page 2 of2
ITEM NO.
F:\Council\Agenda Statements\as-ICMA 457.doc
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RESOLUTION NO. - 2007
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
AMENDMENT TO THE ICMA RETIREMENT CORPORATION 457 PLAN AND TRUST
WHEREAS, the City has employees rendering valuable services; and
WHEREAS, the City has established a deferred compensation plan for such employees, which
serves the interest ofthe City by enabling it to provide reasonable retirement security for its employees, by
providing increased flexibility in its personnel management system, and by assisting in the attraction and
retention of competent personnel; and
WHEREAS, the City has determined that continuance of the deferred compensation plan will
serve these objectives; and
NOW, THEREFORE, BE IT RESOLVED that the City of Dublin does hereby amend and
restate the deferred compensation plan (the "Plan") in the form of the ICMA Retirement Corporation 457
Deferred Compensation Plan and Trust attached hereto; and
BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the City
serving as trustee ("Trustee"), for the exclusive benefit of Plan participants and their beneficiaries, and the
assets shall not be diverted to any other purpose. The Trustee's beneficial ownership of Plan assets held in
VantageTrust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries;
and
BE IT FURTHER RESOLVED that the City of Dublin agrees to serve as trustee under the Plan;
and
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby appoint
the City Manager, or his or her designee, as the City's Plan Administrator ("Administrator") for the ICMA
Retirement Corporation 457 Plan and Trust; and
BE IT FURTHER RESOLVED that the Administrator is hereby authorized to implement the
Plan, execute the Plan's legal documents on behalf ofthe City, and maintain compliance of any relevant
regulation issued or as may be issued; therefore, the Administrator is authorized to take whatever
additional actions are required to administer the City's ICMA Retirement Corporation 457 Plan and Trust.
PASSED, APPROVED AND ADOPTED this 6th day of March, 2007.
AYES:
NOES:
ABSENT:
ABSTAIN:
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ATTEST:
City Clerk
F: ICouncil\ResolutionsIRESOLUTION-45 7 Account. doc
Mayor
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DEFERRED COMPENSATION PLAN AND TRUST
As Amended and Restated Effective January 1, 2006
Article I. Purpose
The Employer hereby establishes and maintains the Employer's Deferred Compensation Plan and Trust, hereafter referred to as
the "Plan." The Plan consists of the provisions set forth in this document.
The primary purpose of this Plan is to provide retirement income and other deferred benefits to the Employees of the
Employer and the Employees' Beneficiaries in accordance with the provisions of Section 457 of the Internal Revenue Code of
1986, as amended (the "Code").
This Plan shall be an agreement solely between the Employer and participating Employees. The Plan and Trust forming a
part hereof are established and shall be maintained for the exclusive benefit of Participants and their Beneficiaries. No part of
the corpus or income of the Trust shall revert to the Employer or be used for or diverted to purposes other than the exclusive
benefit of Participants and their Beneficiaries.
Article II. Definitions
2.01 Account. The bookkeeping account maintained for each Participant reflecting the cumulative amount of the
Participant's Deferred Compensation, including any income, gains, losses, or increases or decreases in market
value attributable to the Employer's investment of the Participant's Deferred Compensation, and further reflecting
any distributions to the Participant or the Participant's Beneficiary and any fees or expenses charged against such
Participant's Deferred Compensation.
2.02 Accounting Date. Each business day that the New York Stock Exchange is open for trading, as provided in Section
6.06 for valuing the Trust's assets.
2.03 Administrator. The person or persons named in writing to carry out certain nondiscretionary administrative
functions under the Plan, as hereinafter described. The Employer may remove any person as Administrator upon
75 days' advance notice in writing to such person, in which case the Employer shall name another person or persons
to act as Administrator. The Administrator may resign upon 75 days' advance notice in writing to the Employer, in
which case the Employer shall name another person or persons to act as Administrator.
2.04 Automatic Distribution Date. Aprill of the calendar year after the Plan Year the Participant attains age 70-1/2
or, if later, has a Severance Event.
2.05 Beneficiary. The person or persons designated by the Participant in his or her Joinder Agreement who shall receive
any benefits payable hereunder in the event of the Participant's death. In the event that the Participant names two
or more Beneficiaries, each Beneficiary shall be entitled to equal shares of the benefits payable at the Participant's
death, unless otherwise provided in the Participant's Joinder Agreement. If no beneficiary is designated in the Joinder
Agreement, if the Designated Beneficiary predeceases the Participant, or if the designated Beneficiary does not
survive the Participant for a period of fifteen (15) days, then the estate of the Participant shall be the Beneficiary. If a
married Participant resides in a community or marital property state, the Participant shall be responsible for obtaining
appropriate consent of his or her spouse in the event the Participant designates someone other than his or her spouse
as Beneficiary. The preceding sentence shall not apply with respect to a Deemed IRA under Article IX.
2.06 Deemed IRA. A separate account or annuity established under the Plan that complies with the requirements of
Section 408(q) of the Code, the Income Tax Regulations thereunder, and any other IRS guidance.
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2.07 Deferred Compensation. The amount ofIncludible Compensation otherwise payable to the Participant which
the Participant and the Employer mutually agree to defer hereunder, any amount credited to a Participant's Account
by reason of a transfer under Section 6.09 or 6.10, a rollover under Section 6.11, or any other amount which the
Employer agrees to credit to a Participant's Account.
2.08 Dollar Limitation. The applicable dollar amount within the meaning of Section 457(b)(2)(A) of the Code, as
adjusted for the cost-of-living in accordance with Section 457(e)(15) of the Code.
2.09 Employee. Any individual who provides services for the Employer, whether as an employee of the Employer or as an
independent contractor, and who has been designated by the Employer as eligible to participate in the Plan.
2.10 Employer.
of the [State/Commonwealth] of
Code.
, which is a political subdivision, agency or instrumentality
, described in Section 457(e)(1)(A) of the
2.11 457 Catch-Up Dollar Limitation. Twice the Dollar Limitation.
2.12 Includible Compensation. Includible Compensation of a Participant means "compensation," as defined in Section
415 (c) (3) of the Code, for services performed for the Employer. Includible Compensation shall be determined without
regard to any community property laws. For purposes of a Participant's Joinder Agreement only and not for purposes
of the limitations in Article V, Includible Compensation shall include any employer contributions to an integral part
trust of the employer providing retiree health care benefits.
2.13 Joinder Agreement. An agreement entered into between an Employee and the Employer, including any
amendments or modifications thereof. Such agreement shall fix the amount of Deferred Compensation, specify a
preference among the investment alternatives designated by the Employer, designate the Employee's Beneficiary or
Beneficiaries, and incorporate the terms, conditions, and provisions of the Plan by reference.
2.14 Normal Limitation. The maximum amount of Deferred Compensation for any Participant for any taxable year
(other than amounts referred to in Sections 6.09, 6.10, and 6.11).
2.15 Normal Retirement Age. Age 70-1/2, unless the Participant has elected an alternate Normal Retirement Age by
written instrument delivered to the Administrator prior to a Severance Event. A Participant's Normal Retirement Age
determines the period during which a Participant may utilize the 457 Catch-Up Dollar Limitation of Section 5.02(b)
hereunder. Once a Participant has to any extent utilized the catch-up limitation of Section 5.02(b), his Normal
Retirement Age may not be changed.
A Participant's alternate Normal Retirement Age may not be earlier than the earliest date that the Participant will
become eligible to retire and receive immediate, unreduced retirement benefits under the Employer's basic defined
benefit retirement plan covering the Participant (or a money purchase pension plan in which the Participant also
participates if the Participant is not eligible to participate in a defined benefit plan), and may not be later than the
date the Participant will attain age 70-1/2. If the Participant will not become eligible to receive benefits under a basic
defined benefit retirement plan (or money purchase pension plan, if applicable) maintained by the Employer, the
Participant's alternate Normal Retirement Age may not be earlier than 65 and may not be later than age 70-1/2. In
no event may a Participant's normal retirement age be different than the normal retirement age under the Employer's
other 457(b) plans, if any.
In the event the Plan has Participants that include qualified police or firefighters (as defined under Section
415 (b )(2) (H) (ii)(I) of the Code), a normal retirement age may be designated for such qualified police or firefighters
that is not earlier than age 40 or later than age 70-1/2. Alternatively, qualified police or firefighters may be permitted
to designate a normal retirement age that is between age 40 and age 70-112.
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2.16 Participant. Any Employee who has joined the Plan pursuant to the requirements of Article IV For purposes of
section 6.11 of the Plan, the term Participant includes an employee or former Employee of the Employer who has not
yet received all of the payments of benefits to which he/she is entitled under the Plan.
2.17 Percentage Limitation. 100 percent of the participant's Includible Compensation available to be contributed as
Deferred Compensation for the taxable year.
2.18 Plan Year. The calendar year.
2.19 Retirement. The first date upon which both of the following shall have occurred with respect to a participant:
Severance Event and attainment of age 65.
2.20 Severance Event. A severance of the Participant's employment with the Employer within the meaning of Section
457(d)(1)(A)(ii) of the Code.
In general, a Participant shall be deemed to have experienced a Severance Event for purposes of this Plan when, in
accordance with the established practices of the Employer, the employment relationship is considered to have actually
terminated. In the case of a Participant who is an independent contractor of the Employer, a Severance Event shall be
deemed to have occurred when the Participant's contract under which services are performed has completely expired
and terminated, there is no foreseeable possibility that the Employer will renew the contract or enter into a new
contract for the Participant's services, and it is not anticipated that the Participant will become an Employee of the
Employer, or such other events as may be permitted under the Code.
2.21 Trust. The Trust created under Article VI of the Plan which shall consist of all compensation deferred under the Plan,
plus any income and gains thereon, less any losses, expenses and distributions to Participants and Beneficiaries.
Article III. Administration
3.01 Duties of the Employer. The Employer shall have the authority to make all discretionary decisions affecting the
rights or benefits of Participants which may be required in the administration of this Plan. The Employer's decisions
shall be afforded the maximum deference permitted by applicable law.
3.02 Duties of Administrator. The Administrator, as agent for the Employer, shall perform nondiscretionary
administrative functions in connection with the Plan, including the maintenance of Participants' Accounts, the
provision of periodic reports of the status of each Account, and the disbursement of benefits on behalf of the Employer
in accordance with the provisions of this Plan.
Article Iv: Participation in the Plan
4.01 Initial Participation. An Employee may become a Participant by entering into a Joinder Agreement prior to the
beginning of the calendar month in which the Joinder Agreement is to become effective to defer compensation not
yet earned, or such other date as may be permitted under the Code. A new employee may defer compensation in the
calendar month during which he or she first becomes an employee if a Joinder Agreement is entered into on or before
the first day on which the employee performs services for the Employer.
4.02 Amendment of Joinder Agreement. A Participant may amend an executed Joinder Agreement to change the
amount of Includible Compensation not yet earned which is to be deferred (including the reduction of such future
deferrals to zero). Such amendment shall become effective as of the beginning of the calendar month commencing
after the date the amendment is executed, or such other date as may be permitted under the Code. A Participant may
at any time amend his or her Joinder Agreement to change the designated Beneficiary, and such amendment shall
become effective immediately.
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Article v: Limitations on Deferrals
5.01 Normal Limitation. Except as provided in Section 5.02, the maximum amount of Deferred Compensation for any
Participant for any taxable year, shall not exceed the lesser of the Dollar Limitation or the Percentage Limitation.
5.02 Catch-Up Limitations.
(a) Catch-up Contributions jOr Participants Age 50 and Over: A Participant who has attained the age of 50 before
the close of the Plan Year, and with respect to whom no other elective deferrals may be made to the Plan for
the Plan Year by reason of the Normal Limitation of Section 5.01, may enter into a Joinder Agreement to
make elective deferrals in addition to those permitted by the Normal Limitation in an amount not to exceed
the lesser of:
(1) The applicable dollar amount as defined in Section 414(v)(2)(B) of the Code, as adjusted for the cost-
of-living in accordance with Section 414(v)(2)(C) of the Code; or
(2) The excess (if any) of
(i) The Participant's Includible Compensation for the year, or
(ii) Any other elective deferrals of the Participant for such year which are made without regard to
this Section 5.02(a).
An additional contribution made pursuant to this Section 5.02(a) shall not, with respect to the year in which
the contribution is made, be subject to any otherwise applicable limitation contained in Section 5.01 above,
or be taken into account in applying such limitation to other contributions or benefits under the Plan or any
other plan. This Section 5.02(a) shall not apply in any year to which a higher limit under Section 5.02(b)
applies.
(b) Last Three Years Catch-up Contribution: For each of the last three (3) taxable years for a Participant ending
before his or her attainment of Normal Retirement Age, the maximum amount of Deferred Compensation
shall be the lesser of:
(1) The 457 Catch-Up Dollar Limitation, or
(2) The sum of
(i) The Normal Limitation for the taxable year, and
(ii) The Normal Limitation for each prior taxable year of the Participant commencing after 1978
less the amount of the Participant's Deferred Compensation for such prior taxable years. A
prior taxable year shall be taken into account under the preceding sentence only if (x) the
Participant was eligible to participate in the Plan for such year, and (y) compensation (if any)
deferred under the Plan (or such other plan) was subject to the Normal Limitation.
5.03 Sick, Vacation and Back Pay. If the Employer so elects, a Participant may defer all or a portion of the value of the
Participant's accumulated sick pay, accumulated vacation pay and/or back pay, provided that such deferral does not
cause total deferrals on behalf of the Participant to exceed the Dollar Limitation or Percentage Limitation (including
any Catch-up Dollar Limitation) for the year of deferral. The election to defer such sick, vacation and/or back pay
must be made in a manner and at a time permitted under Section 1.457 -4(d) of the Income Tax Regulations.
Pursuant to proposed IRS regulations issued under Section 415 of the Code, the Plan may permit deferrals from
compensation, including sick, vacation and back pay, so long as the amounts are paid within 2 1Iz months following
severance from employment and the other requirements of Sections 457(b) and 415 of the Code are met. Additionally,
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the agreement to defer such amounts must be entered into prior to the first day of the month in which the amounts
otherwise would be paid or made available.
5.04 Other Plans. Notwithstanding any provision of the Plan to the contrary, the amount excludible from a Participant's
gross income under this Plan or any other eligible deferred compensation plan under Section 457(b) of the Code shall
not exceed the limits set forth in Sections 457(b) and 414(v) of the Code.
5.05 Excess Deferrals. Any amount that exceeds the maximum Dollar Limitation or Percentage Limitation (including
any applicable Catch-Up Dollar Limitation) for a taxable year, shall constitute an excess deferral for that taxable year.
Any excess deferral shall be distributed in accordance with the requirements for excess deferrals under the Code and
Section 1.457 -4(e) of the Income Tax Regulations or other applicable Internal Revenue Service guidance.
5.06 Protection of Person Who Serves in a Uniformed Service. An Employee whose employment is interrupted by
qualified military service under Section 414(u) of the Code or who is on leave of absence for qualified military service
under Section 414(u) of the Code may elect to contribute additional Deferred Compensation upon resumption of
employment with the Employer equal to the maximum Deferred Compensation that the Employee could have elected
during that period if the Employee's employment with the Employer had continued (at the same level ofIncludible
Compensation) without the interruption or leave, reduced by Deferred Compensation, if any, actually made for the
Employee during the period of the interruption or leave. This right applies for five years following the resumption of
employment (or, if sooner, for a period equal to three times the period of the interruption or leave).
Article VI. Trust and Investment of Accounts
6.01 Investment of Deferred Compensation. A Trust is hereby created to hold all the assets of the Plan (except
Deemed IRA contributions and earnings thereon held pursuant to Article IX) for the exclusive benefit of Participants
and Beneficiaries, except that expenses and taxes may be paid from the Trust as provided in Section 6.03. The trustee
shall be the Employer or such other person that agrees to act in that capacity hereunder.
6.02 Investment Powers. The trustee or the Administrator, acting as agent for the trustee, shall have the powers listed
in this Section with respect to investment of Trust assets, except to the extent that the investment of Trust assets is
directed by Participants, pursuant to Section 6.05 or to the extent that such powers are restricted by applicable law.
(a) To invest and reinvest the Trust without distinction between principal and income in common or preferred
stocks, shares of regulated investment companies and other mutual funds, bonds, loans, notes, debentures,
certificates of deposit, contracts with insurance companies including but not limited to insurance, individual
or group annuity, deposit administration, guaranteed interest contracts, and deposits at reasonable rates of
interest at banking institutions including but not limited to savings accounts and certificates of deposit.
Assets of the Trust may be invested in securities that involve a higher degree of risk than investments that have
demonstrated their investment performance over an extended period of time.
(b) To invest and reinvest all or any part of the assets of the Trust in any common, collective or commingled trust
fund that is maintained by a bank or other institution and that is available to Employee plans described under
Sections 457 or 401 of the Code, or any successor provisions thereto, and during the period of time that an
investment through any such medium shall exist, to the extent of participation of the Plans the declaration of
trust of such commonly collective, or commingled trust fund shall constitute a part of this Plan.
(c) To invest and reinvest all or any part of the assets of the Trust in any group annuity, deposit administration or
guaranteed interest contract issued by an insurance company or other financial institution on a commingled
or collective basis with the assets of any other 457 plan or trust qualified under Section 401 (a) of the Code or
any other plan described in Section 401 (a) (24) of the Code, and such contract may be held or issued in the
name of the Administrator, or such custodian as the Administrator may appoint, as agent and nominee for
the Employer. During the period that an investment through any such contract shall exist, to the extent of
participation of the Plan, the terms and conditions of such contract shall constitute a part of the PIan.
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(d) To hold cash awaiting investment and to keep such portion of the Trust in cash or cash balances, without
liability for interest, in such amounts as may from time to time be deemed to be reasonable and necessary to
meet obligations under the Plan or otherwise to be in the best interests of the Plan.
(e) To hold, to authorize the holding of, and to register any investment to the Trust in the name of the Plan,
the Employer, or any nominee or agent of any of the foregoing, including the Administrator, or in bearer
form, to deposit or arrange for the deposit of securities in a qualified central depository even though, when
so deposited, such securities may be merged and held in bulk in the name of the nominee of such depository
with other securities deposited therein by any other person, and to organize corporations or trusts under the
laws of any jurisdiction for the purpose of acquiring or holding title to any property for the Trust, all with or
without the addition of words or other action to indicate that property is held in a fiduciary or representative
capacity but the books and records of the Plan shall at all times show that all such investments are part of the
Trust.
(f) Upon such terms as may be deemed advisable by the Employer or the Administrator, as the case may be, for
the protection of the interests of the Plan or for the preservation of the value of an investment, to exercise
and enforce by suit for legal or equitable remedies or by other action, or to waive any right or claim on behalf
of the Plan or any default in any obligation owing to the Plan, to renew, extend the time for payment of,
agree to a reduction in the rate of interest on, or agree to any other modification or change in the terms of
any obligation owing to the Plan, to settle, compromise, adjust, or submit to arbitration any claim or right
in favor of or against the Plans to exercise and enforce any and all rights of foreclosure, bid for property in
foreclosure, and take a deed in lieu of foreclosure with or without paying consideration therefor, to commence
or defend suits or other legal proceedings whenever any interest of the Plan requires it, and to represent the
Plan in all suits or legal proceedings in any court oflaw or equity or before any body or tribunal.
(g) To employ suitable consultants, depositories, agents, and legal counsel on behalf of the Plan.
(h) To open and maintain any bank account or accounts in the name of the Plan, the Employer, or any nominee
or agent of the foregoing, including the Administrator, in any bank or banks.
(i) To do any and all other acts that may be deemed necessary to carry out any of the powers set forth herein.
6.03 Taxes and Expenses. All taxes of any and all kinds whatsoever that may be levied or assessed under existing or
future laws upon the Plan, or in respect to the Trust, or the income thereof, and all commissions or acquisitions or
dispositions of securities and similar expenses of investment and reinvestment of the Trust, shall be paid from the
Trust. Such reasonable compensation of the Administrator, as may be agreed upon from time to time by the Employer
and the Administrator, and reimbursement for reasonable expenses incurred by the Administrator in performance of
its duties hereunder (including but not limited to fees for legal, accounting, investment and custodial services) shall
also be paid from the Trust.
6.04 Payment of Benefits. The payment of benefits from the Trust in accordance with the terms of the Plan may
be made by the Administrator, or by any custodian or other person so authorized by the Employer to make such
disbursement. The Administrator, custodian or other person shall not be liable with respect to any distribution of
Trust assets made at the direction of the Employer.
6.05 Investment Funds. In accordance with uniform and nondiscriminatory rules established by the Employer and
the Administrator, the Participant may direct his or her Accounts to be invested in one (I) or more investment
funds available under the Plan; provided, however, that the Participant's investment directions shall not violate any
investment restrictions established by the Employer. Neither the Employer, the Administrator, nor any other person
shall be liable for any losses incurred by virtue of following such directions or with any reasonable administrative delay
in implementing such directions.
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6.06 Valuation of Accounts. As of each Accounting Date, the Plan assets held in each investment fund offered shall be
valued at fair market value and the investment income and gains or losses for each fund shall be determined. Such
investment income and gains or losses shall be allocated proportionately among all Account balances on a fund-by-
fund basis. The allocation shall be in the proportion that each such Account balance as of the immediately preceding
Accounting Date bears to the total of all such Account balances as of that Accounting Date. For purposes of this
Article, all Account balances include the Account balances of all Participants and Beneficiaries.
6.07 Participant Loan Accounts. Participant loan accounts shall be invested in accordance with Section 8.03 of the
Plan. Such Accounts shall not share in any investment income and gains or losses of the investment funds described in
Sections 6.05 and 6.06.
6.08 Crediting of Accounts. The Participant's Account shall reflect the amount and value of the investments or other
property obtained by the Employer through the investment of the Participant's Deferred Compensation pursuant to
Sections 6.05 and 6.06. It is anticipated that the Employer's investments with respect to a Participant will conform to
the investment preference specified in the Participant's Joinder Agreement, but nothing herein shall be construed to
require the Employer to make any particular investment of a Participant's Deferred Compensation. Each Participant
shall receive periodic reports, not less frequently than annually, showing the then current value of his or her Account.
6.09 Post-Severance Transfers Among Eligible Deferred Compensation Plans.
(a) Incoming Transfers: A transfer may be accepted from an eligible deferred compensation plan maintained by
another employer and credited to a Participant's or Beneficiary's Account under the Plan if:
(1) In the case of a transfer for a Participant, the Participant has had a Severance Event with that
employer and become an Employee of the Employer;
(2) The other employer's plan provides that such transfer will be made; and
(3) The Participant or Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately before the transfer.
The Employer may require such documentation from the predecessor plan as it deems necessary to effectuate
the transfer in accordance with Section 457(e)(10) of the Code, to confirm that such plan is an eligible
deferred compensation plan within the meaning of Section 457(b) of the Code, and to assure that transfers are
provided for under such plan. The Employer may refuse to accept a transfer in the form of assets other than
cash, unless the Employer and the Administrator agree to hold such other assets under the Plan.
(b) Outgoing Transfers: An amount may be transferred to an eligible deferred compensation plan maintained by
another employer, and charged to a Participant's or Beneficiary's Account under this Plan, if:
(1) In the case of a transfer for a Participant, the Participant has a Severance Event with the Employer
and becomes an employee of the other employer;
(2) The other employer's plan provides that such transfer will be accepted;
(3) The Participant or Beneficiary and the employers have signed such agreements as are necessary to
assure that the Employer's liability to pay benefits to the Participant has been discharged and assumed
by the other employer; and
(4) The Participant or Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately before the transfer.
The Employer may require such documentation from the other plan as it deems necessary to effectuate the
transfer, to confirm that such plan is an eligible deferred compensation plan within the meaning of Section
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457(b) of the Code, and to assure that transfers are provided for under such plan. Such transfers shall be
made only under such circumstances as are permitted under Section 457 of the Code and the regulations
thereunder.
6.10 Transfers Among Eligible Deferred Compensation Plans of the Employer.
(a) Incoming Transfers. A transfer may be accepted from another eligible deferred compensation plan maintained
by the Employer and credited to a Participant's or Beneficiary's Account under the Plan if:
(1) The Employer's other plan provides that such transfer will be made;
(2) The Participant or Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately before the transfer;
and
(3) The Participant or Beneficiary whose deferred amounts are being transferred is not eligible for
additional annual deferrals in the Plan unless the Participant or Beneficiary is performing services for
the Employer.
(b) Outgoing Transfers. A transfer may be accepted from another eligible deferred compensation plan maintained
by the Employer and credited to a Participant's or Beneficiary's Account under the Plan if:
(1) The Employer's other plan provides that such transfer will be accepted;
(2) The Participant or Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately before the transfer;
and
(3) The Participant or Beneficiary whose deferred amounts are being transferred is not eligible for
additional annual deferrals in the Employer's other eligible deferred compensation plan unless the
Participant or Beneficiary is performing services for the Employer.
6.11 Eligible Rollover Distributions.
(a) Incoming Rollovers: An eligible rollover distribution may be accepted from an eligible retirement plan and
credited to a Participant's Account under the Plan. The Employer may require such documentation from the
distributing plan as it deems necessary to effectuate the rollover in accordance with Section 402 of the Code
and to confirm that such plan is an eligible retirement plan within the meaning of Section 402(c)(8)(B) of the
Code. The Plan shall separately account (in one or more separate accounts) for eligible rollover distributions
from any eligible retirement plan.
(b) Outgoing Rollovers: Notwithstanding any provision of the Plan to the contrary that would otherwise limit
a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed
by the Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
(c) Definitions:
(1) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion
of the balance to the credit of the distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or
joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified
period of ten years or more; any distribution to the extent such distribution is required under Sections
8
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401 (a) (9) and 457(d)(2) of the Code; and any distribution made as a result of an unforeseeable
emergency of the employee. For purposes of distributions from other eligible retirement plans
rolled over into this Plan, the term eligible rollover distribution shall not include the portion of any
distribution that is not includible in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities).
(2) Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described
in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the
Code, an annuity plan described in Sections 403(a) or 403(b) of the Code, a qualified trust described
in Section 401 (a) of the Code, or an eligible deferred compensation plan described in Section
457(b) of the Code which is maintained by an eligible governmental employer described in Section
457(e)(1)(A) of the Code, that accepts the distributee's eligible rollover distribution.
(3) Distributee: A distributee includes an employee or former employee. In addition, the employee's or
former employee's surviving spouse and the employee's or former employee's spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of
the Code, are distributees with regard to the interest of the spouse or former spouse.
(4) Direct Rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by
the distributee.
6.12 Trustee-to- Trustee Transfers to Purchase Permissive Service Credit. AIlor a portion of a Participant's
Account may be transferred directly to the trustee of a defined benefit governmental plan (as defined in Section 414(d)
of the Code) if such rransfer is (a) for the purchase of permissive service credit (as defined in Section 415(n)(3)(A)
of the Code) under such plan, or (b) a repayment to which Section 415 of the Code does not apply by reason of
subsection (k)(3) thereof, within the meaning of Section 457(e)(l7) of the Code.
6.13 Treatment of Distributions of Amounts Previously Rolled Over From 401 (a) and 403 (b) Plans and
IRAs. For purposes of Section 72(t) of the Code, a distribution from this Plan shall be treated as a distribution
from a qualified retirement plan described in Section 497 4(c) (1) of the Code to the extent that such distribution is
attributable to an amount transferred to an eligible deferred compensation plan from a qualified retirement plan (as
defined in Section 4974(c) of the Code).
6.14 Employer Liability. In no event shall the Employer's liability to pay benefits to a Participant under this Plan exceed
the value of the amounts credited to the Participant's Account; neither the Employer nor the Administrator shall be
liable for losses arising from depreciation or shrinkage in the value of any investments acquired under this Plan.
Article VII. Benefits
7.01 Retirement Benefits and Election on Severance Event.
(a) General Rule: Except as otherwise provided in this Article VII, the distribution of a Participant's Account
shall commence as of a Participant's Automatic Distribution Date, and the distribution of such benefits shall
be made in accordance with one of the payment options described in Section 7.02. Notwithstanding the
foregoing, but subject to the following paragraphs of this Section 7.01, the Participant may elect following a
Severance Event to have the distribution of benefits commence on a fixed determinable date other than that
described in the preceding sentence, but not later than April I of the year following the year of the Participant's
Retirement or attainment of age 70-1/2, whichever is later. The Participant's right to change his or her
election with respect to commencement of the distribution of benefits shall not be restrained by this Section
7.01. Notwithstanding the foregoing, the Administrator, in order to ensure the orderly administration of this
provision, may establish a deadline after which such election to defer the commencement of distribution of
benefits shall not be allowed.
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(b) Loans: Notwithstanding the foregoing provisions of this Section 7.01, no election to defer the
commencement of benefits after a Severance Event shall operate to defer the distribution of any amount in the
Participant's loan account in the event of a default of the Participant's loan.
7.02 Payment Options. As provided in Sections 7.01, 7.04 and 7.05, a Participant may elect to have value of the
Participant's Account distributed in accordance with one of the following payment options, provided that such option
is consistent with the limitations set forth in Section 7.03:
(a) Equal monthly, quarterly, semi-annual or annual payments in an amount chosen by the Participant,
continuing until his or her Account is exhausted;
(b) One lump-sum payment;
(c) Approximately equal monthly, quarterly, semi-annual or annual payments, calculated to continue for a period
certain chosen by the Participant;
(d) Annual Payments equal to the minimum distributions required under Section 401 (a)(9) of the Code,
including the incidental death benefit requirements of Section 401 (a) (9) (G), over the life expectancy of the
Participant or over the life expectancies of the Participant and his or her Beneficiary;
(e) Payments equal to payments made by the issuer of a retirement annuity policy acquired by the Employer;
(f) A split distribution under which payments under options (a), (b), (c) or (e) commence or are made at the
same time, as elected by the Participant under Section 7.01, provided that all payments commence (or are
made) by the latest benefit commencement date permitted under Section 7.01;
(g) Any other payment option elected by the Participant and agreed to by the Employer and Administrator.
A Participant's selection of a payment option under Subsections (a), (c), or (g) above may include the selection of an
automatic annual cost-ofliving increase. Such increase will be based on the rise in the Consumer Price Index for All
Urban Consumers (CPI-U) from the third quarter of the last year in which a cost-of-living increase was provided to
the third quarter of the current year. Any increase will be made in periodic payment checks beginning the following
J an uary.
7.03 Limitation on Options. No payment option may be selected by a Participant under subsections 7.02(a) or (c)
unless the amount of any installment is not less than $100. No payment option may be selected by a Participant
under Sections 7.02, 7.04, or 7.05 unless it satisfies the requirements of Sections 401 (a) (9) and 457(d)(2) of the Code,
including that payments commencing before the death of the Participant shall satisfY the incidental death benefit
requirements under Section 401 (a) (9) (G) of the Code.
7.04 Minimum Required Distributions. Notwithstanding any provision of the Plan to the contrary, the Plan shall
comply with the minimum required distribution rules set forth in Sections 457(d)(2) and 401 (a) (9) of the Code,
including the incidental death benefit requirements of Section 401 (a) (9)(G) of the Code.
7.05 Post-Retirement Death Benefits.
(a) Should the Participant die after he or she has begun to receive benefits under a payment option, the remaining
payments, if any, under the payment option shall continue until the Administrator receives notice of the
Participant's death. Upon notification of the Participant's death, benefits shall be payable to the Participant's
Beneficiary commencing not later than December 31 of the year following the year of the Participant's death,
provided that the Beneficiary may elect to begin benefits earlier than that date.
(b) In the event that the Beneficiary dies before the payment of death benefits has commenced or been completed,
the remaining benefits payable under the payment option applicable to the Beneficiary shall, subject to the
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requirements set forth in Section 7.04, be paid to an additional beneficiary designated by the Beneficiary. If
no additional beneficiary is named, payment shall be made to the Beneficiary's estate in a lump sum.
(c) In the event that the Participant's estate is the Beneficiary, payment shall be made to the estate in a lump sum.
7.06 Pre-Retirement Death Benefits.
(a) Should the Participant die before he or she has begun to receive the benefits provided by Section 7.01, the
value of the Participant's Account shall be payable to the Beneficiary commencing not later than December
31 of the year following the year of the Participant's death, provided that the Beneficiary may elect to begin
benefits earlier than that date.
(b) In the event that the Beneficiary dies before the payment of death benefits has commenced or been completed,
the remaining value of the Participant's Account shall be paid to the estate of the Beneficiary in a lump sum.
In the event that the Participant's estate is the Beneficiary, payment shall be made to the estate in a lump sum.
7.07 Unforeseeable Emergencies.
(a) In the event an unforeseeable emergency occurs, a Participant or Beneficiary may apply to the Employer to
receive that part of the value of his or her Account that is reasonably needed to satisfy the emergency need.
If such an application is approved by the Employer, the Participant or Beneficiary shall be paid only such
amount as the Employer deems necessary to meet the emergency need, but payment shall not be made to the
extent that the financial hardship may be relieved through cessation of deferral under the Plan, insurance or
other reimbursement, or liquidation of other assets to the extent such liquidation would not itself cause severe
financial hardship.
(b) An unforeseeable emergency shall be deemed to involve only circumstances of severe financial hardship
of a Participant or Beneficiary resulting from an illness or accident of the participant or beneficiary, the
Participant's or Beneficiary's spouse, or the Participant's or Beneficiary's dependent (as defined in Section
152 of the Code, and, for taxable years beginning on or after January 1, 2005, without regard to Sections
152(b)(1), (b)(2), and (d)(1)(B) of the Code); loss of the Participant's or Beneficiary's property due to
casualty (including the need to rebuild a home following damage to a home not otherwise covered by
homeowner's insurance, e.g., as a result of a natural disaster); or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant or the Beneficiary. For
example, the imminent foreclosure of or eviction from the Participant's or Beneficiary's primary residence
may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses; including
non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an
unforeseeable emergency. Finally, the need to pay for the funeral expenses of a spouse or a dependent (as
defined in section 152 of the Code, and, for taxable years beginning on or after January 1, 2005, without
regard to Sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code) may also constitute an unforeseeable
emergency. Except as otherwise specifically provided in this Section 7.07(b), the purchase of a home and the
payment of college tuition are not unforeseeable emergencies.
7.08 In-Service Distribution of Rollover Contributions. Effective January 1, 2006, the Employer may elect to
allow Participants to receive an in-service distribution of amounts attributable to rollover contributions to the Plan. If
the Employer has elected to make such distributions available, a Participant that has a separate account attributable
to rollover contributions to the Plan, may at any time request a distribution of all or any portion of the amount
attributable to his or her rollover contribution.
11
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7.09 In-Service Distribution to Participants Age 70-112 or Older. A Participant who has reached age 70112 and
has not yet had a Severance Event, may, at any time, request a distribution of all or a part of his or her Account. A
Participant may only receive two (2) such distributions pursuant to this Section 7.09 in any calendar year.
7.10 Distribution De Minimis Accounts. Notwithstanding the foregoing provisions of this Article VII:
(a) Mandatory Distribution. If the value of a Participant's Account is less than $1,000, the Participant's Account
shall be paid to the Participant in a single lump sum distribution, provided that:
(1) No amount has been deferred under the Plan with respect to the Participant during the 2-year period
ending on the date of the distribution; and
(2) There has been no prior distribution under the Plan to the Participant pursuant to this Section 7.10.
(b) Voluntary Distribution. If the value of the Participant's Account is at least $1,000 but not more than the dollar
limit under Section 411 (a) (11) (A) of the Code, the Participant may elect to receive his or her entire Account
in a lump sum payment if:
(1) No amount has been deferred under the Plan with respect to the Participant during the 2-year period
ending on the date of the distribution; and
(2) There has been no prior distribution under the Plan to the Participant pursuant to this Section 7.10.
Article VIII. Loans to Participants
8.01 Availability of Loans to Participants.
(a) The Employer may elect to make loans available to Participants in this Plan. If the Employer has elected
to make loans available to Participants, a Participant may apply for a loan from the Plan subject to the
limitations and other provisions of this Article. However, no loans are available from Deemed IRAs.
(b) The Employer shall establish written guidelines governing the granting ofloans, provided that such guidelines
are approved by the Administrator and are not inconsistent with the provisions of this Article, and that loans
are made available to all Participants on a reasonably equivalent basis.
8.02 Terms and Conditions of Loans to Participants. Any loan by the Plan to a Participant under Section 8.01 of
the Plan shall satisfY the following requirements:
(a) Availability. Loans shall be made available to all Participants on a reasonably equivalent basis.
(b) Interest Rate. Loans must be adequately secured and bear a reasonable interest rate.
(c) Loan Limit. No Participant loan shall exceed the present value of the Participant's Account.
(d) Foreclosure. In the event of default on any installment payment, the outstanding balance of the loan shall be a
deemed distribution. In such event, an actual distribution of a plan loan offset amount will not occur until a
distributable event occurs in the Plan.
(e) Reduction of Account. Notwithstanding any other provision of this Plan, the portion of the Participant's
Account balance used as a security interest held by the Plan by reason of a loan outstanding to the Participant
shall be taken into account for purposes of determining the amount of the Account balance payable at the
time of death or distribution, but only if the reduction is used as repayment of the loan.
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(f) Amount of Loan. At the time the loan is made, the principal amount of the loan plus the outstanding balance
(principal plus accrued interest) due on any other outstanding loans to the Participant from the Plan and
from all other plans of the Employer that are either eligible deferred compensation plans described in section
457(b) of the Code or qualified employer plans under Section 72(p) (4) of the Code shall not exceed the lesser
of:
(1) $50,000, reduced by the excess (if any) of
(i) The highest outstanding balance ofloans from the Plan during the one (1) year period
ending on the day before the date on which the loan is made; or
(ii) The outstanding balance of loans from the Plan on the date on which such loan is made; or
(2) One-half of the value of the Participant's interest in all of his or her Accounts under this Plan.
(g) Application fOr Loan. The Participant must give the Employer adequate written notice, as determined by the
Employer, of the amount and desired time for receiving a loan. No more than one (1) loan may be made by
the Plan to a Participant's in any calendar year. No loan shall be approved if an existing loan from the Plan to
the Participant is in default to any extent.
(h) Length of Loan. Any loan issued shall require the Participant to repay the loan in substantially equal
installments of principal and interest, at least monthly, over a period that does not exceed five (5) years from
the date of the loan; provided, however, that if the proceeds of the loan are applied by the Participant to
acquire any dwelling unit that is to be used within a reasonable time (determined at the time of the loan is
made) after the loan is made as the principal residence of the Participant, the five (5) year limit shall not apply.
In this event, the period of repayment shall not exceed a reasonable period determined by the Employer.
Principal installments and interest payments otherwise due may be suspended for up to one (1) year during
an authorized leave of absence, if the promissory note so provides, but not beyond the original term permitted
under this subsection (h), with a revised payment schedule (within such term) instituted at the end of such
period of suspension.
(i) Prepayment. The Participant shall be permitted to repay the loan in whole or in part at any time prior to
maturity, without penalty.
(j) Promissory Note. The loan shall be evidenced by a promissory note executed by the Participant and delivered
to the Employer, and shall bear interest at a reasonable rate determined by the Employer.
(k) Security. The loan shall be secured by an assignment of the participant's right, title and interest in and to his
or her Account.
(I) Assignment or Pledge. For the purposes of paragraphs (f) and (g), assignment or pledge of any portion of the
Participant's interest in the Plan and a loan, pledge, or assignment with respect to any insurance contract
purchased under the Plan, will be treated as a loan.
(m) Other Terms and Conditions. The Employer shall fix such other terms and conditions of the loan as it deems
necessary to comply with legal requirements, to maintain the qualification of the Plan and Trust under Section
457 of the Code, or to prevent the treatment of the loan for tax purposes as a distribution to the Participant.
The Employer, in its discretion for any reason, may also fix other terms and conditions of the loan, including,
but not limited to, the provision of grace periods following an event of default, not inconsistent with the
provisions of this Article and Section 72(p) of the Code, and any applicable regulations thereunder.
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8.03 Participant Loan Accounts.
(a) Upon approval of a loan to a Participant by the Employer, an amount not in excess of the loan shall be
transferred from the Participant's other investment fund(s), described in Section 6.05 of the Plan, to the
Participant's loan account as of the Accounting Date immediately preceding the agreed upon date on which
the loan is to be made.
(b) The assets of a Participant's loan account may be invested and reinvested only in promissory notes received
by the Plan from the Participant as consideration for a loan permitted by Section 8.01 of the Plan or in cash.
Uninvested cash balances in a Participant's loan account shall not bear interest. Neither the Employer, the
Administrator, nor any other person shall be liable for any loss, or by reason of any breach, that results from
the Participant's exercise of such control.
(c) Repayment of principal and payment of interest shall be made by payroll deduction or, where repayment
cannot be made by payroll deduction, by check, and shall be invested in one (1) or more other investment
funds, in accordance with Section 6.05 of the Plan, as of the next Accounting Date after payment thereof to
the Trust. The amount so invested shall be deducted from the Participant's loan account.
(d) The Employer shall have the authority to establish other reasonable rules, not inconsistent with the provisions
of the Plan, governing the establishment and maintenance of Participant loan accounts.
Article IX. Deemed IRAs
9.01 General. This Article IX of the Plan reflects section 602 of the Economic Growth and Tax Relief Reconciliation Act
of 200 1 ("EGTRRA"), as amended by the Job Creation and Worker Assistance Act of 2002. This Article is intended
as good faith compliance with the requirements of EGTRRA and is to be construed in accordance with EGTRRA
and guidance issued thereunder. This Article IX shall supersede the provisions of the Plan to the extent that those
provisions are inconsistent with the provisions of this Article IX.
Effective for Plan Years beginning after December 31, 2002, the Employer may elect to allow Employees to make
voluntary employee contributions to a separate account or annuity established under the Plan that complies with
the requirements of Section 408(q) of the Code and any regulations promulgated thereunder (a "Deemed IRA").
The Plan shall establish a separate account for the designated Deemed IRA contributions of each Employee and
any earnings properly allocable to the contributions, and maintain separate recordkeeping with respect to each such
Deemed IRA.
9.02 Voluntary Employee Contributions. For purposes of this Article, a voluntary employee contribution means any
contribution (other than a mandatory contribution within the meaning of Section 411 (c)(2) of the Code) that is made
by the Employee and which the Employee has designated, at or prior to the time of making the contribution, as a
contribution to which this Article applies.
9.03 Deemed IRA Trust Requirements. This Article shall satisfy the trust requirement under Section 408(q) of the
Code and the regulations thereto. lRAs established pursuant to this Article shall be held in one or more trusts or
custodial accounts (the "Deemed IRA Trusts"), which shall be separate from the Trust established under the Plan
to hold contributions other than Deemed IRA contributions. The Deemed IRA Trusts shall satisfY the applicable
requirements of Sections 408 and 408A of the Code, which requirements are set forth in section 9.05 and 9.06,
respectively, and shall be established with a trustee or custodian meeting the requirements of Section 408(a)(2) of
the Code ("Deemed IRA Trustee"). To the extent that the assets of any Deemed IRAs established pursuant to this
Article are held in a Deemed IRA Trust satisfYing the requirements of this Section 9.03, such Deemed IRA Trust,
and any amendments thereto, is hereby adopted as a trust maintained under this Plan with respect to the assets held
therein, and the provisions of such Deemed IRA Trust shall control so long as any assets of any Deemed IRA are held
thereunder.
14
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9.04 Reporting Duties. The Deemed IRA Trustee shall be subject to the reporting requirements of Section 408(i) of the
Code with respect to all Deemed lRAs that are established and maintained under the Plan.
9.05 Deemed Traditional IRA Requirements. Deemed IRAs established in the form of traditional IRAs shall satisfY
the following requirements:
(a) Exclusil'e Benefit. The Deemed IRA account shall be established for the exclusive benefit of an Employee or
his or her Beneficiaries.
(b) Maximum Annual Contributions.
(1) Except in the case of a rollover contribution (as permitted by Sections 402(c), 402(e)(6), 403(a)(4),
403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16) of the Code), no contributions will be accepted
unless they are in cash, and the total of such contributions shall not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years thereafter.
After 2008, the limit will be adjusted by the Secretary of the Treasury for cost-of-living-increases
under Section 219(b)(5)(C) of the Code. Such adjustments will be in multiples of $500.
(2) In the case of an Employee who is 50 or older, the annual cash contribution limit is increased by:
$500 for any taxable year beginning in 2002 through 2005; and
$1,000 for any taxable year beginning in 2006 and thereafter.
(3) No contributions will be accepted under a SIMPLE IRA plan established by any employer pursuant
to Section 408(p) of the Code. Also, no transfer or rollover of funds attributable to contributions
made by a particular employer under its SIMPLE IRA plan will be accepted from a SIMPLE IRA,
that is an IRA used in conjunction with a SIMPLE IRA plan, prior to the expiration of the 2-year
period beginning on the date the Employee first participated in that employer's SIMPLE IRA plan.
(c) Collectibles. If the Deemed IRA Trust acquires collectibles with within the meaning of Section 408(m) of the
Code after December 31, 1981, Deemed IRA Trust assets will be treated as a distribution in an amount equal
to the cost of such collectibles.
(d) Life Insurance Contracts. No part of the Deemed IRA Trust funds will be invested in life insurance contracts.
(e) Minimum Required Distributions.
(1) Notwithstanding any provision of this Deemed IRA to the contrary, the distribution of the
Employee's interest in the account shall be made in accordance with the requirements of Section
408(a)(6) of the Code and the Income Tax Regulations thereunder, the provisions of which are
herein incorporated by reference. If distributions are made from an annuity contract purchased
from an insurance company, distributions thereunder must satisfY the requirements of Q&A-4 of
Section 1.401 (a) (9)-6T of the Income Tax Regulations (or Section 1.401 (a) (9)-6 of the Income Tax
Regulations, as applicable), rather than paragraphs (2), (3) and (4) below and Section 9.05(f). The
minimum required distributions calculated for this IRA may be withdrawn from another IRA of the
Employee in accordance with Q&A-9 of Section 1.408-8 of the Income Tax Regulations.
(2) The entire value of the account of the Employee for whose benefit the account is maintained will
commence to be distributed no later than the first day of April following the calendar year in which
15
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such Employee attains age 70-1/2 (the "required beginning date") over the life of such Employee or
the lives of such Employee and his or her Beneficiary.
(3) The amount to be distributed each year, beginning with the calendar year in which the Employee
attains age 70-1/2 and continuing through the year of death shall not be less than the quotient
obtained by dividing the value of the IRA (as determined under section 9.05(f)(3)) as of the end of
the preceding year by the distribution period in the Uniform Lifetime Table in Q&A-2 of Section
401 (a)(9)-9 of the Income Tax Regulations, using the Employee's age of his or her birthday in the
year. However, if the Employee's sole Beneficiary is his or her surviving spouse and such spouse is
more than 10 years younger than the Employee, then the distribution period is determined under
the Joint and Last Survivor Table in Q&A-3 of Section 1.401 (a) (9)-9 of the Income Tax Regulations,
using the ages as of the Employee's and spouse's birthdays in the year.
(4) The required minimum distribution for the year the Employee attains age 70-1/2 can be made as late
as April 1 of the following year. The required minimum distribution for any other year must be made
by the end of such year.
(f) Distribution Upon Death.
(1) Death On or After Required Beginning Date. If the Employee dies on or after the required beginning
date, the remaining portion of his or her interest will be distributed at least as rapidly as follows:
(i) If the Beneficiary is someone other than the Employee's surviving spouse, the remaining
interest will be distributed over the remaining life expectancy of the Beneficiary, with such
life expectancy determined using the Beneficiary's age as of his or her birthday in the year
following the year of the Employee's death, or over the period described in paragraph (1)(iii)
below if longer.
(ii) If the Employee's sole Beneficiary is the Employee's surviving spouse, the remaining interest
will be distributed over such spouse's life or over the period described in paragraph (1)(iii)
below if longer. Any interest remaining after such spouse's death will be distributed over
such spouse's remaining life expectancy determined using the spouse's age as of his or her
birthday in the year of the spouse's death, or, if the distributions are being made over the
period described in paragraph (l)(iii) below, over such period.
(iii) If there is no Beneficiary, or if applicable by operation of paragraph (1)(i) or (1)(ii) above,
the remaining interest will be distributed over the Employee's remaining life expectancy
determined in the year of the Employee's death.
(iv) The amount to be distributed each year under paragraph (1)(i), (ii), or (iii), beginning
with the calendar year following the calendar year of the Employee's death, is the quotient
obtained by dividing the value of the IRA as of the end of the preceding year by the
remaining life expectancy specified in such paragraph. Life expectancy is determined using
the Single Life Table in Q&A-l of Section 1.401 (a) (9)-9 of the Income Tax Regulations.
If distributions are being made to a surviving spouse as the sole Beneficiary, such spouse's
remaining life expectancy for a year is the number in the Single Life Table corresponding to
such spouse's age in the year. In all other cases, remaining life expectancy for a year is the
number in the Single Life Table corresponding to the Beneficiary's or Employee's age in the
year specified in paragraph 1 (i), (ii), or (iii) and reduced by 1 for each subsequent year.
(2) Death Beftre Required Beginning Date. If the Employee dies before the required beginning date, his or
her entire interest will be distributed at least as rapidly as follows:
(i) If the Beneficiary is someone other than the Employee's surviving spouse, the entire interest
will be distributed, starting by the end of the calendar year following the calendar year of
16
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the Employee's death, over the remaining life expectancy of the Beneficiary, with such life
expectancy determined using the age of the Beneficiary as of his or her birthday in the year
following the year of the Employee's death, or, if elected, in accordance with paragraph
(2)(iii) below.
(ii) If the Employee's sole Beneficiary is the Employee's surviving spouse, the entire interest
will be distributed, starting by the end of the calendar year following the calendar year of
the Employee's death (or by the end of the calendar year in which the Employee would
have attained age 70-1/2, iflater), over such spouse's life, or, if elected, in accordance with
paragraph (2)(iii) below. If the surviving spouse dies before distributions are required to
begin, the remaining interest will be distributed, starting by the end of the calendar year
following the calendar year of the spouse's death, over the spouse's Beneficiary's remaining
life expectancy determined using such Beneficiary's age as of his or her birthday in the
year following the death of the spouse, or, if elected, will be distributed in accordance with
paragraph (2)(iii) below. If the surviving spouse dies after distributions are required to
begin, any remaining interest will be distributed over the spouse's remaining life expectancy
determined using the spouse's age as of his or her birthday in the year of the spouse's death.
(iii) If there is no Beneficiary, or if applicable by operation of paragraph (2)(i) or (2)(ii) above,
the entire interest will be distributed by the end of the calendar year containing the fifth
anniversary of the Beneficiary's death (or of the spouse's death in the case of the surviving
spouse's death before distributions are required to begin under paragraph (2) (ii) above).
(iv) The amount to be distributed each year under paragraph (2)(i) or (ii) is the quotient to
be obtained by dividing the value of the IRA as of the end of the preceding year by the
remaining life expectancy specified in such paragraph. Life expectancy is determined using
the Single Life Table in Q&A-1 of Section 1.401 (a)(9)-9 of the Income Tax Regulations.
If distributions are being made to a surviving spouse as the sole Beneficiary, such spouse's
remaining life expectancy for a year is the number in the Single Life Table corresponding to
the Beneficiary's age in the year specified in paragraph (2)(i) or (ii) and reduced by 1 for each
subsequent year.
(v) The "value" of the IRA includes the amount of any outstanding rollover, transfer and
recharacterization under Q&As-7 and -8 of Section 1.408-8 of the Income Tax Regulations.
(vi) If the sole Beneficiary is the Employee's surviving spouse, the spouse may elect to treat
the IRA as his or her own IRA. This election will be deemed to have been made if such
surviving spouse makes a contribution to the IRA or fails to take required distributions as a
Beneficiary.
(g) Nonforfeitable. The interest of an Employee in the balance in his or her Deemed IRA account is
nonforfeitable at all times.
(h) Reporting. The Deemed IRA Trustee of a Deemed Traditional IRA shall furnish annual calendar-year reports
concerning the status of the Deemed IRA account and such information concerning required minimum
distributions as is prescribed by the Commissioner ofInternal Revenue.
(i) Substitution of Deemed IRA Trustee. If the Deemed IRA Trustee is a non-bank trustee or custodian, the non-
bank trustee or custodian shall substitute another trustee or custodian if the non-bank trustee or custodian
receives notice from the Commissioner ofInternal Revenue that such substitution is required because it has
failed to comply with the requirements of Section 1.408-2(e) of the Income Tax Regulations and Section
1.408-2T of the Income Tax Regulations
17
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9.06 Deemed Roth IRA Requirements. Deemed IRAs established in the form of Roth lRAs shall satisfy the following
reqUIrements:
(a) Exclusive Benefit. The Deemed Roth IRA shall be established for the exclusive benefit of an Employee or his
or her Beneficiaries.
(b) Maximum Annual Contributions.
(1) Maximum Permissible Amount. Except in the case of a qualified rollover contribution or
recharacterization (as defined in (6) below), no contribution will be accepted unless it is in cash and
the total of such contributions to all the Employee's Roth IRAs for a taxable year does not exceed
the applicable amount (as defined in (2) below), or the Employee's compensation (as defined in (8)
below) ifless, for that taxable year. The contribution described in the previous sentence that may
not exceed the lesser of the applicable amount or the Employee's compensation is referred to as a
"regular contribution." A "qualified rollover contribution" is a rollover contribution that meets the
requirements of Section 408(d)(3) of the Code, except the one-rollover-per-year rule of Section
408(d)(3)(B) does not apply if the rollover contribution is from another IRA other than a Roth IRA
(a "nonRoth IRA"). Contributions may be limited under (3) through (5) below.
(2) Applicable Amount. The applicable amount is determined under (i) or (ii) below:
(i) If the Employee is under age 50, the applicable amount is:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years thereafter.
(ii) If the Employee is 50 or older, the applicable amount is:
$3,500 for any taxable year beginning in 2002 through 2004;
$4,500 for any taxable year beginning in 2005;
$5,000 for any taxable year beginning in 2006 through 2007; and
$6,000 for any taxable year beginning in 2008 and years thereafter.
After 2008, the limits in paragraph (2)(i) and (ii) above will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Section 219(b)(5)(C) of the Code. Such adjustments will
be in multiples of $500.
(3) If (i) and/or (ii) below apply, the maximum regular contribution that can be made to all the
Employee's Roth IRAs for the taxable year is the smaller amount determined under (i) or (ii).
18
(i) The maximum regular contribution is phased out ratably between certain levels of modified
adjusted gross income ("modified AGI," defined in (7) below) in accordance with the
following table:
Modified AGI
Filing Status
Full
Contribution
Phase-out
Range
No
Contribution
Single or Head
of Household
Joint Return
or Qualifying
Widower
$95,000 or less
Between $95,000
and $110,000
$110,000
or more
$150,000 or less
Between $150,000
and $160,000
$160,000
or more
Married-
Separate Return
$0
Between $0
and $10,000
$10,000
or more
If the Employee's modified AGI for a taxable year is in the phase-out range, the maximum
regular contribution determined under this table for that taxable year is rounded up to the
next multiple of $1 0 and not reduced below $200.
(ii) If the Employee makes regular contributions to both Roth and nonRoth lRAs for a taxable
year, the maximum regular contribution that can be made to all the Employee's Roth IRAs
for that taxable year is reduced by the regular contributions made to the Employee's nonRoth
lRAs for the taxable year.
(4) Qualified Rollover Contribution Limit. A rollover from a nonRoth IRA cannot be made to this IRA if,
for the year the amount is distributed from the nonRoth IRA,(i) the Employee is married and files a
separate return, (ii) the Employee is not married and has modified AGI in excess of $1 00,000 or (iii)
the Employee is married and together the Employee and the Employee's spouse have modified AGI
in excess of $1 00,000. For purposes of the preceding sentence, a husband and wife are not treated as
married for a taxable year if they have lived apart at all times during that taxable year and file separate
returns for the taxable year.
(5) SIMPLE IRA Limits. No contributions will be accepted under a SIMPLE IRA plan established
by any employer pursuant to Section 408(p) of the Code. Also, no transfer or rollover of funds
attributable to contributions made by a particular employer under its SIMPLE IRA plan will be
accepted from a SIMPLE IRA, that is, an IRA used in conjunction with a SIMPLE IRA plan, prior
to the expiration of the 2-year period beginning on the date the Employee first participated in that
employer's SIMPLE IRA plan.
(6) Recharacterization. A regular contribution to a nonRoth IRA may be recharacterized pursuant to
the rules in Section 1.408A-5 of the Income Tax Regulations as a regular contribution to this IRA,
subject to the limits in (3) above.
(7) ModifiedAGJ. For purposes of (3) and (4) above, an Employee's modified AGI for a taxable year
is defined in Section 408A(c)(3)(C)(i) of the Code and does not include any amount included in
adjusted gross income as a result of a rollover from a nonRoth IRA (a "conversion").
(8) Compensation. For purposes of (1) above, compensation is defined as wages, salaries, professional
fees, or other amounts derived from or received for personal services actually rendered (including, but
not limited to, commissions paid salesmen, compensation for services on the basis of a percentage
of profits, commissions on insurance premiums, tips and bonuses) and includes earned income, as
defined in Section 401 (c) (2) of the Code (reduced by the deduction the self-employed individual
19
takes for contributions made to a self-employed retirement plan). For purposes of this definition,
Section 401 (c)(2) of the Code shall be applied as if the term trade or business for purposes of Section
1402 of the Code included service described in subsection (c)(6). Compensation does not include
amounts derived from or received as earnings or profits from property (including but not limited
to interest and dividends) or amounts not includible in gross income. Compensation also does
not include any amount received as a pension or annuity or as deferred compensation. The term
"compensation" shall include any amount includible in the Employee's gross income under Section
71 of the Code with respect to a divorce or separation instrument described in subparagraph (A)
of Section 71 (b) (2) of the Code In the case of a married Employee filing a joint return, the greater
compensation of his or her spouse is treated as his or her own compensation but only to the extent
that such spouse's compensation is not being used for purposes of the spouse making a contribution
to a Roth IRA or a deductible contribution to a nonRoth IRA.
(c) Collectibles. If the Deemed IRA Trust acquires collectibles within the meaning of Section 408(m) of the Code
after December 31, 1981, Deemed IRA Trust assets will be treated as a distribution in an amount equal to the
cost of such collectibles.
(d) Life Insurance Contracts. No part of the Deemed IRA Trust funds will be invested in life insurance contracts.
(e) Distributions Before Death. No amount is required to be distributed prior to the death of the Employee for
whose benefit the account was originally established.
(f) Minimum Required Distributions.
(1) Notwithstanding any provision of this IRA to the contrary, the distribution of the Employee's interest
in the account shall be made in accordance with the requirements of Section 408(a)(6) of the Code,
as modified by section 408A(c)(5), and the regulations thereunder, the provisions of which are herein
incorporated by reference. If distributions are made from an annuity contract purchased from an
insurance company, distributions thereunder must satisfy the requirements of section 1.401 (a) (9)-6T
of the Temporary Income Tax Regulations (taking into account Section 408A(c)(5) of the Code) (or
Section 1.401 (a) (9)-6 of the Income Tax Regulations, as applicable), rather than the distribution rules
in paragraphs (2), (3) and (4) below.
(2) Upon the death of the Employee, his or her entire interest will be distributed at least as rapidly as
follows:
(i) If the Beneficiary is someone other than the Employee's surviving spouse, the entire
interest will be distributed, starting by the end of the calendar year following the year of
the Employee's death, over the remaining life expectancy of the Beneficiary, with such life
expectancy determined using the age of the beneficiary as of his or her birthday in the year
following the year of the Employee's death, or, if elected, in accordance with paragraph
(2)(iii) below.
(ii) If the Employee's sole Beneficiary is the Employee's surviving spouse, the entire interest
will be distributed starting by the end of the calendar year following the calendar year of
the Employee's death (or by the end of the calendar year in which the Employee would
have attained age 70-1/2, if later), over such spouse's life, or, if elected, in accordance with
paragraph (2)(iii) below. If the surviving spouse dies before distributions are required to
begin, the remaining interest will be distributed, starting by the end of the calendar year
following the calendar year of the spouse's death, over the spouse's Beneficiary's remaining
life expectancy determined using such Beneficiary's age as of his or her birthday in the
year following the death of the spouse, or, if elected, will be distributed in accordance with
paragraph (2)(iii) below. If the surviving spouse dies after distributions are required to
begin, any remaining interest will be distributed over the spouse's remaining life expectancy
determined using the spouse's age as of his or her birthday in the year of the spouse's death.
20
(iii) If there is no Beneficiary, or if applicable by operation of paragraph (2)(i) or (2)(ii) above, the
entire interest will be distributed the end of the calendar year containing the fifth anniversary
of the Employee's death (or of the spouse's death in the case of the surviving spouse's death
before distributions are required to begin under paragraph 2(ii) above).
(iv) The amount to be distributed each year under paragraph (2)(i) or (ii) is the quotient
obtained by dividing the value of the IRA as of the end of the preceding year by the
remaining life expectancy specified in such paragraph. Life expectancy is determined using
the Single Life Table in Q&A-l of Section 1.401 (a)(9)-9 of the Income Tax Regulations.
If distributions are being made to a surviving spouse as the sole Beneficiary, such spouse's
remaining life expectancy for a year is the number in the Single Life Table corresponding to
such spouse's age in the year. In all other cases, remaining life expectancy for a year is the
number in the Single Life Table corresponding to the Beneficiary's age in the year specified in
paragraph (2)(i) or (ii) and reduced by 1 for each subsequent year.
(3) The "value" of the IRA includes the amount of any outstanding rollover, transfer and
recharacterization under Q&As-7 and -8 of Section 1.408-8 of the Income Tax Regulations.
(4) If the sole Beneficiary is the Employee's surviving spouse, the spouse may elect to treat the IRA as his
or her own IRA. This election will be deemed to have been made if such surviving spouse makes a
contribution to the IRA or fails to take required distributions as a Beneficiary.
(g) NonfOrfeitable. The interest of an Employee in the balance in his or her account is nonforfeitable at all times.
(h) Reporting. The Deemed IRA Trustee of a Deemed Roth IRA shall furnish annual calendar-year reports
concerning the status of the Deemed IRA account and such information concerning required minimum
distributions as is prescribed by the Commissioner of Internal Revenue.
(i) Substitution of Deemed IRA Trustee. If the Deemed IRA Trustee is a non-bank trustee or custodian, the non-
bank trustee or custodian shall substitute another trustee or custodian if the non-bank trustee or custodian
receives notice from the Commissioner ofInternal Revenue that such substitution is required because it has
failed to comply with the requirements of Section 1.408-2(e) of the Income Tax Regulations and Section
1.408-2T of the Income Tax Regulations.
Article X. Non-Assignability
10.01 General. Except as provided in Article VIII and Section 10.02, no Participant or Beneficiary shall have any right to
commute, sell, assign, pledge, transfer or otherwise conveyor encumber the right to receive any payments hereunder,
which payments and rights are expressly declared to be non-assignable and non-transferable.
10.02 Domestic Relations Orders.
(a) Allowance ofTransfirs: To the extent required under a final judgment, decree, or order (including approval of a
property settlement agreement) that (1) relates to the provision of child support, alimony payments, or marital
property rights and (2) is made pursuant to a state domestic relations law, and (3) is permitted under Sections
414(p) (11) and (12) of the Code, any portion of a Participant's Account may be paid or set aside for payment
to a spouse, former spouse, child, or other dependent of the Participant (an "Alternate Payee"). Where
necessary to carry out the terms of such an order, a separate Account shall be established with respect to the
Alternate Payee who shall be entitled to make investment selections with respect thereto in the same manner
as the Participant. Any amount so set aside for an Alternate Payee shall be paid in accordance with the form
and timing of payment specified in the order. Nothing in this Section shall be construed to authorize any
amount to be distributed under the Plan at a time or in a form that is not permitted under Section 457(b) of
21
I
l'
the Code and is explicitly permitted under the uniform procedures described in Section 10.2(d) below. Any
payment made to a person pursuant to this Section shall be reduced by any required income tax withholding.
(b) Release from Liability to Participant: The Employer's liability to pay benefits to a Participant shall be reduced
to the extent that amounts have been paid or set aside for payment to an Alternate Payee to paragraph (a) of
this Section and the Participant and his or her Beneficiaries shall be deemed to have released the Employer
and the Plan Administrator from any claim with respect to such amounts.
(c) Participation in Legal Proceedings: The Employer and Administrator shall not be obligated to defend against
or set aside any judgment, decree, or order described in paragraph (a) or any legal order relating to the
garnishment of a Participant's benefits, unless the full expense of such legal action is borne by the Participant.
In the event that the Participant's action (or inaction) nonetheless causes the Employer or Administrator to
incur such expense, the amount of the expense may be charged against the Participant's Account and thereby
reduce the Employer's obligation to pay benefits to the Participant. In the course of any proceeding relating
to divorce, separation, or child support, the Employer and Administrator shall be authorized to disclose
information relating to the Participant's Account to the Alternate Payee (including the legal representatives of
the Alternate Payee), or to a court.
(d) Determination o/Validity o/Domestic Relations Orders: The Administrator shall establish uniform procedures
for determining the validity of any domestic relations order. The Administrator's determinations under such
procedures shall be conclusive and binding on all parties and shall be afforded the maximum amount of
deference permitted by law.
10.03 IRS Levy. Notwithstanding Section 10.01, the Administrator may pay from a Participant's or Beneficiary's Account
balance the amount that the Administrator finds is lawfully demanded under a levy issued by the Internal Revenue
Service with respect to that Participant or Beneficiary or is sought to be collected by the United States Government
under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary.
10.04 Mistaken Contribution. To the extent permitted by applicable law, if any contribution (or any portion of
a contribution) is made to the Plan by a good faith mistake of fact, then after the payment of the contribution,
and upon receipt in good order of a proper request approved by the Administrator, the amount of the mistaken
contribution (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the
Participant or, to the extent required or permitted by the Administrator, to the Employer.
10.05 Payments to Minors and Incompetents. If a Participant or Beneficiary entitled to receive any benefits hereunder
is a minor or is adjudged to be legally incapable if giving valid receipt and discharge for such benefits, or is deemed so
by the Administrator, benefits will be paid to such persons as the Administrator may designate for the benefit of such
Participant or Beneficiary. Such payments shall be considered a payment to such Participant or Beneficiary and shall,
to the extent made, be deemed a complete discharge of any liability for such payments under the Plan.
10.06 Procedure When Distributee Cannot Be Located. The Administrator shall make all reasonable attempts to
determine the identity and address of a Participant or a Participant's Beneficiary entitled to benefits under the Plan.
For this purpose, a reasonable attempt means (a) the mailing by certified mail of a notice to the last known address
shown on the Employer or Administrator's records, (b) notification sent to the Social Security Administration or the
Pension Benefit Guarantee Corporation (under their program to identify payees under retirement plans), and (c) the
payee has not responded within 6 months. If the Administrator is unable to locate such a person entitled to benefits
hereunder, or if there has been no claim made for such benefits, the Trust shall continue to hold the benefits due such
person.
Article XI. Relationship to Other Plans and Employment Agreements
This Plan serves in addition to any other retirement, pension, or benefit plan or system presently in existence or hereinafter
established for the benefit of the Employer's employees, and participation hereunder shall not affect benefits receivable under
any such plan or system. Nothing contained in this Plan shall be deemed to constitute an employment contract or agreement
22
.~~
J ,
/.) .J I
between any Participant and the Employer or to give any Participant the right to be retained in the employ of the Employer.
Nor shall anything herein be construed to modify the terms of any employment contract or agreement between a Participant
and the Employer.
Article XII. Amendment or Termination of Plan
The Employer may at any time amend this Plan provided that it transmits such amendment in writing to the Administrator at
least 30 days prior to the effective date of the amendment. The consent of the Administrator shall not be required in order for
such amendment to become effective, but the Administrator shall be under no obligation to continue acting as Administrator
hereunder if it disapproves of such amendment.
The Administrator may at any time propose an amendment to the Plan by an instrument in writing transmitted to the
Employer at least 30 days before the effective date of the amendment. Such amendment shall become effective unless, within
such 30-day period, the Employer notifies the Administrator in writing that it disapproves such amendment, in which case
such amendment shall not become effective. In the event of such disapproval, the Administrator shall be under no obligation
to continue acting as Administrator hereunder.
The Employer may at any time terminate this Plan. In the event of termination, assets of the Plan shall be distributed to
Participants and Beneficiaries as soon as administratively practicable following termination of the Plan. Alternatively, assets of
the Plan may be transferred to an eligible deferred compensation plan maintained by another eligible governmental employer
within the same State if (a) all assets held by the Plan (other than Deemed IRAs) are transferred; (b) the receiving plan provides
for the receipt of transfers; (c) the Participants and Beneficiaries whose deferred amounts are being transferred will have an
amount immediately after the transfer at least equal to the deferred amount immediately before the transfer; and (d) the
Participants or Beneficiaries whose deferred amounts are being transferred is not eligible for additional annual deferrals in the
receiving plan unless the Participants or Beneficiaries are performing services for the employer maintaining the receiving plan.
Except as may be required to maintain the status of the Plan as an eligible deferred compensation plan under Section 457(b) of
the Code or to comply with other applicable laws, no amendment or termination of the Plan shall divest any Participant of any
rights with respect to compensation deferred before the date of the amendment or termination.
Article XIII. Applicable Law
This Plan and Trust shall be construed under the laws of the state where the Employer is located and is established with
the intent that it meet the requirements of an "eligible deferred compensation plan" under Section 457(b) of the Code, as
amended. The provisions of this Plan and Trust shall be interpreted wherever possible in conformity with the requirements of
that Section of the Code. .
In addition, notwithstanding any provision of the Plan to the contrary, the Plan shall be administered in compliance with the
requirements of Section 414(u) of the Code.
Article XIv: Gender and Number
The masculine pronoun, whenever used herein, shall include the feminine pronoun, and the singular shall include the plural,
except where the context requires otherwise.
23
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i
!
DECLARATION OF TRUST
This Declaration of Trust (the "Group Trust Agreement") is made as of the 19th day of May, 2001, by Vantage Trust Company,
which declares itself to be the sole Trustee of the trust hereby created.
WHEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of the assets of governmental plans
and governmental units described in Section SIS (a) (6) of the Internal Revenue Code of 19S6, as amended, pursuant to a
Declaration of Trust dated October 4, 19S2, as subsequently amended, a copy of which is attached hereto and incorporated by
reference as set out below (the "ICMA Declaration"); and
WHEREAS, the trust created hereunder (the "Group Trust") is intended to meet the requirements of Revenue Ruling SI-
100,1981-1 C.B. 326, and is established as a common trust fund within the meaning of Section 391:1 of Title 35 of the New
Hampshire Revised Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred Compensation
and Qualified Plans held by and through the ICMA Retirement Trust.
NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of Trust by the Trustee and is established
with respect to each Deferred Compensation and Qualified Plan by the transfer to the Trustee of such Plan's assets in the
ICMA Retirement Trust, by the Trustees thereof, in accord with the following provisions:
(a) Incorporation of ICMA Declaration by Reference; ICMA By-Laws. Except as otherwise provided in this Group
Trust Agreement, and to the extent not inconsistent herewith, all provisions of the ICMA Declaration are
incorporated herein by reference and made a part hereof, to be read by substituting the Group Trust for the
Retirement Trust and the Trustee for the Board of Trustees referenced therein. In this respect, unless the
context clearly indicates otherwise, all capitalized terms used herein and defined in the ICMA Declaration
have the meanings assigned to them in the ICMA Declaration. In addition, the By-Laws of the ICMA
Retirement Trust, as the same may be amended from time-to-time, are adopted as the By-Laws of the Group
Trust to the extent not inconsistent with the terms of this Group Trust Agreement.
Notwithstanding the foregoing, the terms of the ICMA Declaration and By-Laws are further modified with
respect to the Group Trust created hereunder, as follows:
1. any reporting, distribution, or other obligation of the Group Trust vis-a.-vis any Deferred
Compensation Plan, Qualified Plan, Public Employer, Public Employer Trustee, or Employer Trust
shall be deemed satisfied to the extent that such obligation is undertaken by the ICMA Retirement
Trust (in which case the obligation of the Group Trust shall run to the ICMA Retirement Trust); and
2. all provisions dealing with the number, qualification, election, term and nomination of Trustees shall
not apply, and all other provisions relating to trustees (including, but not limited to, resignation
and removal) shall be interpreted in a manner consistent with the appointment of a single corporate
trustee.
(b) Compliance with Revenue Procedure 81-100. The requirements of Revenue Procedure Sl-100 are applicable to
the Group Trust as follows:
1. Pursuant to the terms of this Group Trust Agreement and Article X of the By-Laws, investment in the
Group Trust is limited to assets of Deferred Compensation and Qualified Plans, investing through the
I CMA Retirement Trust.
2. Pursuant to the By-Laws, the Group Trust is adopted as a part of each Qualified Plan that invests
herein through the ICMA Retirement Trust.
3. In accord with the By-Laws, that part of the Group Trust's corpus or income which equitably belongs
to any Deferred Compensation and Qualified Plan may not be used for or diverted to any purposes
other than for the exclusive benefit of the Plan's employees or their beneficiaries who are entitled to
benefits under such Plan.
i
4. In accord with the By-Laws, no Deferred Compensation Plan or Qualified Plan may assign any or
part of its equity or interest in the Group Trust, and any purported assignment of such equity or
interest shall be void.
(c) Governing Law. Except as otherwise required by federal, state or local law, this Declaration of Trust (including
the ICMA Declaration to the extent incorporated herein) and the Group Trust created hereunder shall be
construed and determined in accordance with applicable laws of the State of New Hampshire.
(d) Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in the appropriate state
or federal courts within or outside the state of New Hampshire for the settlement of its accounts or for the
determination of any question of construction which may arise or for instructions.
IN WITNESS WHEREOF, the Trustee has executed this Declaration of Trust as of the day and year first above written.
VANTAGETRUST COMPANY
By jZ./ 1,J~
, /
Name: Paul F. Gallagher
Title: Secretary
2