Exh 6A Part 2AGENDA ITEM 6A
FEBRUARY 11, 2002
and degree of such impairment shall be supponed by medical evidence. If the Employer maintains a long Berm
disability plan, the definition of Disability shall be the same as the deftnition of disability in the long term disability
plan.
2.09 Earnings.
(a) General Rule. Eaznings, which form the basis for computing Employer Contributions, aze all of each
Participant's W-2 eaznings which aze actually paid to the Participant during the Plan Yeaz, plus any
contributions made pursuant to a salary reduction agreement which aze not includible in the gross
income of the Employee under section 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), 414(h)(2), or
457(b) of the Code.. Unless the Employer elects otherwise in the Adoption Agreement, Eaznings shall
exclude overtime compensation and bonuses.
(b) Limitation on Earnings. Notwithstanding the foregoing, effective as of the first Plan Yeaz beginning on or
after January 1, 1989, and before January 1, 1994, the annual Earnings.of each Participant taken into
account for determining all benefits provided under the Plan for any Plan Year shall not exceed $200,000.
This limitation shall be adjusted by the Secretary of the Treasury ae the same time and in the same man-
net asunder section 415(d) of the Code, except that the dollaz increase in effect on January 1 of any
calendar year is effective for yeazs beginning in such calendaz yeaz and the first adjustment eo the
$200,000 limitation is effective on January 1, 1990.
For Plan Years beginning on or after January 1, 1994, the annual Eaznings of each Participant taken into
account for determining all benefits provided under the Plan for any Plan Yeaz sha1L not exceed $150,000,
as adjusted for increases in the cost-of--living in accordance with section 401(a)(17)(B) of the Code. The
cost-of--living adjustment in effect for a calendar yeaz applies to any determination period beginning in
such calendar yeaz:
If a determination period consists of fewer than twelve (12) months, the annual Earnings limit is an
amount equal to the otiaerwise applicable annual Eaznings limit multiplied by a fraction, the numerator
of which is the number of months in the short determination period, and the denominator of which is
twelve (12).
If Eaznings for any prior determination period aze taken into account in determining a Participant s
aliocarions for the current Plan Year, the Eaznings. for stick prior determination. period aze subject to the
applicable annual Eaznings limit in effect for that prior yeaz. For this purpose, for yeazs beginning on or
after January 1, .1989, the applicable annual Eaznings limit is-$200,000. In addition, in determining
allocations in Plan Years beginning on or after January 1, 1994, the annual Earnings limit in effect for
determination periods beginning before chat date is $150,000.
(c) Limitations for Governmental Plans. In the case of an eligible participant in a governmental plan (within
the meaning of section 414(d) of the Code), the dollaz limitation shall not apply to the extent the Earn-
, ings which are allowed to be taken into account under the Plan would be reduced below eke amount
which was allowed to be taken into account under the Plan as in effect on July 1, 1993. For purposes of
ehis Seetion, an eligible participant is an individual who first became a Pazticipaht in the Plan during a
Plan Yeaz beginning before the first Plan Yeaz beginning. after December 31, 1993.
' 2.10 Effective Date. The first day of the Plan Yeaz during which the Employer adopts the Plan, unless the Employer
elects in the Adoption Agreement an akernace dace as the Effective Date oFthe Plan.
.2.11 Employee. Any individual who has applied for and been hired in an employment position and who is em-
ployed by the Employer as a common law employee; provided, however, chat Employee shall not include any indi-
vidual who is not so recorded on the payroll records of the Employer; including any such person who is subsequently
AGENDA ITEM 6A
FEBRUARY 11, 2002
reclassified by a court of law or regulatory body as a common law employee of the Employer. For purposes of clarifica-
tion only and not to imply chat the preceding sentence would otherwise cover such person, the term Employee does
not include any individual who performs services for the Employer as an independent contractor, or under any other
nonemployee classification.
2.12 Erployer. The unit of state or local government or an agenry or instrumentality of one (1) or more states of
local governments that executes the Adoption Agreement.
2.13 Hour of Service. Each hour for which an Employee is paid or entitled to payment for the performance of
duties for the Employer.
2.14 Nonforfeitable Interest. The interest of the Pazticipant orhis/her Beneficiary (whichever is applicable) in that
percentage of his/her Employer Contribution Account balance which has vested pursuant to Article VII. A Pazticipant
shall, at all times, have a one hundred percent (100%) Nonforfeicable Interest in his/her Pazticipant Contribution,
Portable Benefits, and Voluntary Contribution Accounts.
2.1$ Normal Retirement Age. The age which the Employer specifies in the Adoption Agreement. If the Employer .
enforces a mandatory retirement age, the Normal Retirement Age is the lesser of that mandatory age of the age speci-
feed in the Adoption Agreement.
2.16 Participant. An Employee or former Employee for whom contribudons have been made under the Plan and
who has not yet received all of the payments of benefits to which he/she is entitled under the Plan. A Pazticipant is
treated as benefiting under the Plan for any Play Year during which the Pazticipant received or is deemed to receive an
allocation in accordance. with Treas. Reg. section 1.410(b)-(3)(a).
.2.17 Period of Service. For purposes of determining an Employee's initial or continued eligibility to pazticipate in
the Plan or the Nonforfeitable Interest in the Participants Account balance derived from Employer Contributions, an
Employee will receive credit for the aggregate of all time period(s) commencing with the Employee's first day of
employment or reemployment and ending on the date a Break in Service begins. The first day of employment or
reemployment is the first day the Employee performs an Hour of Service. An Employee will also receive credit for any
Period of Severance of less than twelve (12) consecutive months. Fractional periods of a yeaz will be expressed in terms
of days.
Notwithstanding anything to the contrary herein, if the Plan is an amendment and restatement of a plan that previ-
ously calculated service under the hours of service method, service shall be credited in a manner that is at least as
generous as that provided under Treas. Regs. section 1.410(a)-7(g).
2.18 Period of Severance. A continuous period of time during which the Employee is not employed by the Em-
ployer. Such period begins on the date the Employee retires, quiu or is discharged, or if eazlier, the twelve (12) month
anniversary of the date on which the Employee was otherwise first absent from service.
2.19 Plan. This Plan, as established by the Employer, including any elected provisions,pursuant to the Adoption
Agreement.
2.20 Plan Administrator The ICMA Retirement Corporation or any successor Plan Administrator.
2.21 Plan Yeaz. The twelve (12) consecutive month period designated by the Employer in the Adoption Agreement.
2.22 Trust. The Trust created under Article VI of the Plan which shall consist of all of the assets of the Plan derived
from Employer and Participant contributions under the Plan, plus any income and gains thereon, less any losses,
expenses and distributions co Participantsand Beneficiazies.
III. ELIGIBILITY
3.01 Service. Except as provided in Sections 3.02 and 3.03 of the Plan, an Employee within the Covered Employ-
. meat Classification who has completed a twelve (12) month Period of Service shaIl be eligible to participate in the
Plan at the beginning of the payroll period next commencing thereafter. The Employer may elect in the Adoption
Agreement to waive or reduce the twelve (12) month Period of Service.
If the Employer maintains the plan of a predecessor employer, service with such employer shall be treated a Service for
the Employer.
3.02. Age. The Employer may designate a minimum age requirement, nor to exceed age twenty-one (21), for panici-
pation. Such age, if any, shall be declared in the Adoption Agreement.
3.03 Return to Covered Employment Classification. In the event a Participant is no longer a member of Covered
Employment Classification and becomes. ineligible to make. contributions and/or have contributions made on his/her
behalf, such Employee will become eligible for contributions immediately upon returning to a Covered Employment
Classification. If such Participant incurs a Break in Service, eligibility will be determined under the Break in Service a
rules of the Plan.
In the event an Employee who is not a member of a Covered Employment Classification becomes a member, such
Employee will be eligible to panicipate immediately if such Employee has satisfied the minimum age and service
requirements and would have otherwise previously become a Participant. ;I
3.04 Service Before a Break in Service. All Periods of Service with the Employer aze counted towazd eligibility,
' including Periods of Service before a Break in Service.
IV. CONTRIBUTIONS _
4.01 Employer Contributions. For each Plan Yeaz, the Employer will contribute to the Trust an amount as specified
in the Adoption Agreement. The Employer s full contribution for any Plan Yeaz shall be due and paid not later than
thirty (30) working days after the close of the Plan Year. Each Paaicipaht will shaze in Employer Contributions for the
period beginning on the date the Pazticipant commences participation under the Plan and ending on the date on
which such Employee severs employment with the Employer or is no longer a member of a Covered Employmenx
Classification, and such contributions shall be accounted for sepazately in his/her Employer Contribution Account.
Notwithstanding anythitig to the contrary herein, if so elected by the. Employer in the Adoption Agreement, an
Employee shall be required to make contributions as provided pursuant to Section 4.03 or 4.04 in order to be eligible
for Employer Conaibutions to be made onhis/her behalfzo the Plan.
4.02 Forfeitures. All amounu forfeited by terminated Participants, pursuant to Section 7.06, shall be allocated to a
suspense account and used to reduce dollaz fordollar Employer Contributions otherwise required under the Plan for
the current Plan Year and succeeding Plan. Yeazs, if necessary. Forfeitures may First be used to pay the reasonable
administrative expenses of the Plan, with any remainder being applied to reduce Employer Contributions.
4.03 Mandatory Participant Contributions. If the Employer so elects in the Adoption Agreement, each eligible
Employee shall make contributions at a prescribed rate as a requirement for his/her participation in the Plan.. Once
such an eligible Employee becomes a Pazticipant hereunder, he/she shall not thereafter have the right to discontinue or
vary the rate of such Mandatory Participant Contributions. Such contributions shall be accounted for separately in
the Pazticipant Contribution Account. Such Account shall be at all rimes nonforfeitable by the Participant.
If the Employer so elects in the Adoption Agreement,. the Mandatory Pazticipant Contributions shall be "picked- up" _
by the Employer in accordance with Code section 414(h)(2). Any contribution picked-up under this Section shall be <:
AGENDA ITEM 6A
FEBRUARY 11, 2002
treated as an employer contribution in determining the tax treatment under the Code, and shall not be included as
gross income of the Pazticipant until it is distributed.
4.04 Matched Participant Contributions. If the Employer so elects in the Adoption Agreement, Employer Contri-
butions shall be made on behalf of an eligible Employee For a Plan Yeaz only if the Employee agrees to make Matched
Pazticipant Contributions for chat Plan Yeaz. The rate of Employer Contributions shall, co the extent specified in the
Adoption Agreement, be based upon the race at which Matched Participant Contributions aze made for chat Plan Yeaz.
Matched Participant Contributions shall be accounted for separately in the Pazticipant Contribution Account. Such
Account shall be at all times nonforfeitable by the Participant.
4.05 Yoluatary Participant Contributions. If the Employer so elects in the Adoption Agreement, an eligible
Employee may make voluntary (unmatched) contributions under the Plan for any Plan Yeaz in any amount up co ten
percent (10%) of his/her Eaznings for such Plan Year. Such contributions shall be accounted for separately in the
Participant s Voluntary Contribution Account. Such Account shall be at all times nonforfeitable by the Participant.
4.06 Deductible Employee Contributions. The Plan wIll not accept deductible employee contributions which aze
.made for a taxable year beginning afrer December 31, 1986. Contributions made prior co that date will be main-
tained in a Deductible Employee Contribution Account. The Account will share in the gains and losses under the
Plan in the same manner as described in Section 6.06 of the. Plan. Such Account shall be at all times nonforfeitable by
[he Pazticipant.
4.07 Military Service Contributions. Notwithstanding any provision of the Plan to the contrary, contributions,
benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u)
of the Code.
If the Employer has elected in the Adoption Agreement to make loans available to Participants, loan repayments will
be suspended under the Plan as permitted under section 414(u)(4) of the Code.
4.08 Changes is Participant Election. A Pazticipant may elect to change his/her rate of Matched Participant
Contributions or Voluntary Participant Contributions at anytime or during an election period as designated by the
Employer. A Participant may discontinue such contributions at any time or during an election period as designated by
the Employer.
4.09 Portability of Benefits.
(a) An Employee within the Covered Employment Classification, whether or not he/she has satisfied the
minimum age and service requirements of Article III, may transfer of roll over his/her interest in a plan
qualified under section 40 i (a) or 403(a) of the Code to this Plan, provided:
(1) The distribution is on account of termination or discontinuance of the plan or the distribution
becomes payable on account of the Employee's sepazation from service, death, disability or after
the Employee attains age fifty-nine and one-half (59-Y/2); and the form and nature of the disci-
. button from the ocher plan satisfies the applicable requirements under the Code co make the .
transfer or rollover a nontaxable transaction. to the Employee;
(2) The amount disuibuted from the plan is transferred to this Plan no later than the sixtieth (60th)
day afrer distribution was made from the plan; and
(3) In the case of a rollover, the amount transferred to this Plan does not exceed the amount of the
distribution reduced by the Employee contributions (if any) to the plan (other than accumulated
deductible voluntary contributions).
AGENDA ITEM 6A
FEBRUARY 11, 2002
Such transfer or rollover may also be through an Individual Retirement Plan qualified under section 408 of the Code
where the Individual Retirement Plan was used as a conduit from the prior plan and the transfer is made in accordance
with the rules provided at (1) through (3) of this paragraph and the transfer does not include any personal contribu-
tions or earnings thereon the Participant may have made, to the Individual Retirement Plan.
The amount transferred shall be deposited in the Trust and shall be credited to a Ponable Benefits Account. Such
Account shall be one hundred percent (100%) vested in the Employee.
The Plan will accept accumulated Deductible Employee Contributions as defined in section 72(0)(5) of the Code that
were distributed from a qualified retirement plan and transferred (rolled over) pursuant to section 402(a)(5),
402(a)(7)> 403{a)(4), or 408(d)(3) of the Code. Notwithstanding the above, this transferred (rolled over) amount shall
be deposited to the Trusrand shall be credited co a Deductible Employee Contribution Account. Such Account shall
be one hundred percent (.100%) vested in the Employee.
(b) An Employee within the. Covered Employment Classification, whether or not he/she has satisfied the
minimum age and service requirement of Article III> may, upon approval by the Employer and the Plan
Administrator, transfer his/her interest in another plan maintained by the Employer that is qualified
under section 401(a) of the Code to this Plan, provided the transfer is effected through aone-time
irrevocable written election made by the Participant. The amount transferred shall be deposited in the
Trust and sha116e credited to sources that maintain the same attributes as the plan from which they aze
transferred, Such transfer shall not reduce the accrued yeazs or service credited to the Pazricipant for
purposes of vesting or eligibility for any Plan benefits or features.
4.10 Return of Employer Contributions. Any contribution made by the Employer because of a mistake of face
must be returned to the Employer within one yeaz of the date of contribution.
~'. LIMITATION ON ALLOCATIONS
5.01 Participants Only in This Plan.
(a) If the Participant does not participate in, and has never pazticipated in another qualified plan or a welfare
benefit fund, as defined in section 419(e) of the Code, maintained by the Employer, or an individual
medical account, as defined by section 415(1)(2) of ehe Code, maintained by the Employer, which pro-
vides anAnnual Addition, the amount of Annual Additions which may be credited to the Participant s
Account for any Limitation Yeaz will not exceed the lesser of the Maximum Permissible Amount or any
other limitation contained in this Plan. If the Employer Contribution that would otherwise be concrib-
uted or allocated to the Participant s Account would cause the Anriual Additions for the Limitation Year
to exceed [he Maximum Permissible Amount, the amount contributed or allocated will be reduced so that
the Annual Additions for the Limitation Yeaz will equal the Maximum Permissible Amount.
(b) Prior to determining the Participants actual Compensation for the Limitation Yeaz, the Employer may
determine the Maximum Permissible Amount for a Pazticipant on the basis of a reasonable estimation of
the Participants Compensation for the Limitation Yeaz, uniformly determined for all Participants Simi-
lazly situated.
(c) As soon as is administratively feasible after the end of the Limitation Yeaz, the Maximum Permissible
Amoune for the Limitation Yeaz will be determined on the basis of the Pazricipant s actual Compensattom,;;
for the Limitation Yeaz.
(d) If, pursuant to Subsection (c) or as a result of the allocation of forfeitures, there is an Excess Amount, the
AGENDA ITEM 6A
FEBRUARY 11, 2002
(1) Any Voluntary Participant Contributions, to the extent they would reduce the Excess Amount,.
will be returned to the Participant
(2) If after the application of pazagraph (1) an Excess Amount still exists, and the Pazticipant is
covered by the Plan ac the end of the Limitation Year, the Excess Amount in the Pazticipants
Account will be used to reduce Employer Contributions (including any allocation of forfeitures)
for such Participant in the next Limitation Year, and each succeeding Limitation Year if necessary;
(3) If after the application of paragraph (1) an Excess Amount still exists, and the Participant is not
covered by the Plan at the end of the Limitation Year, the Excess Amount will be held unallocazed
in a suspense account. The suspense account will be applied to reduce future Employer Contri-
butions (including allocation of any forfeitures) for all remaining Participants in the next Limi~a-
tion Yeaz, and each succeeding Limitation Year if necessary;
(4) If a suspense account is in existence at any time during a pazticulaz Limitation Year, all amounts
in the suspense account must be allocated and reallocated ro Participants' accounts before any
Employer or any Employee contributions may be made to the Plati for that Limitation Year.
Excess Amounts in a suspense account may not be distributed to Participants or former Partici-
pants.
5.02 Participants in Another Defined Contribution Plan.
(a) Unless the Employer provides other limitations in the Adoption Agreement, this Section applies if, in
addition to this Plan, the Participant is covered under another qualified defined contribution plan main-
tained by the Employer, or a welfaze benefit fund, as defined in section 419(e) of the Code, maintained
by the Employer, or an individual medical account, as defined by section 415(1)(2) of the Code,
maintained by the Employer, which provides an Annual Addition,. during any Limitation Year. The
Annual Additions which may be credited to a Pazticipant s Account under this Plan For any such Limita-
rion Year will not exceed the Maximum Permissible Amount reduced by the Annual Additions credited [o
a Pazticipants Account under the other plans and welfare benefit funds for the same Limitation Year. If
the Annual Additions with respect xo the Panicipant under other defined contribution plans and welfare
benefit funds maintained by the Employer aze less than the Maximum Permissible Amount and the
Employer contribution that would otherwise be contributed or allocated to the Participant's Account
under this Plan would cause the Annua] Additions for the Limitation Yeaz to exceed this limitation, the
amount contributed or allocated will be reduced so that the Annual Additions under all such plans and
funds for the Limitation Yeaz will equal the Maximum Permissible Amount. If the Annual Additions
with respect to the Participant under such other defined contribution plans and welfaze benefit funds in
the aggregate aze equal to or greater than the Maximum Permissible Amount, no amount will be contrib-
uted or allocated to the Participant s Account under this Plan for the Limitation Yeaz.
(b) Prior to determining the Participant's actual Compensation for the Limitation Yeaz, the Emplbyermay
determine the Maximum Permissible Amount for a Pazticipant in the manner described in Section
5.01(b).
(c) As soon as is administratively feasible after the end of the Limitation Yeaz, the Maximum Permissible.
Amount for the Limitation Yeaz will be determined on the basis of the Pazticipant s actual Compensation
for the Limitation Yeaz.
(d) If, pursuant to Subsection (c) or as a result of the allocation of forfeitures, a Participant s Annual Addi-
rions under this Plan and such other plans would result in an Excess Amount For a Limitation Yeaz, the
Excess Amount will be deemed to consist of the Annual Additions last allocated, except that Annual
Additions atuibutable to a welfare benefit fund or individual medical account will be deemed to have
AGENDA ITEM 6A
FEBRUARY 11, 2002
been allocated first regardless of the actual allocation dace.
(e) If an Excess Amount was allocated to a Patticipant on an allocation dace of this Plan which coincides with
an allocation date of another plan, the Excess Amount atuibuted to This Plan will be the product of,
(1) The total Excess Amount allocated as of such date, multiplied by
(2) The ratio of (i) the Annual Additions allocated to the Participant for the Limitation Yeaz as of
.such. date under this Plan to (ii) the total Annual Additions allocated to the Patticipant for the
Limitation Year as of such date under this and all the other qualified defined contribution plans.
(f) Any Excess Amount attributed to this Plan will be disposed ih the manner described in Section 5.01(d).
5.03 .Definitions. For the purposes of this Article, the following definitions shall apply:
(a) AnnualAdditionr. The sum of the following amounts credited to a Pazticipan~ s account for the Limita-
tion Year:
(1) Employer Contributions;
(2) Forfeitures;
(3) Employee conuibutions; and
j (4) Allocations under a simplified employee pension.
' Amounts allocated, after Mazch 31, 1984, to an individual medical account, as defined in section
415(1)(2) of the Code, which is pazt of a pension or annuity plan maintained by the Employer, are treated
as Annual Additions to a defined contribution plan.
For this purpose; any Excess Amouni applied under Sections 5.01(4) or5.02(f) in the Limitation Year to
reduce Employer Contributions will be considered Annual Additions for such Limitation Yeaz.
(b) Comperuation: A Participant's wages, salazies, and fees for professional services and other amounts re-
ceived (without regard co whether an amount is paid in cash) for personal services aciually rendered in the
course of employment with the Employer maintaining the Plan to the extent that the amounts aze
includible in gross income (including,. but not limited to, bonuses, fringe benefits, and reimbursements
or ocher expense allowances under a nonaccouncable plan (as described in Treas. Reg: section 1.G2-2(c)));
excluding the following:
(1) Employer Contributions to a plan of deferred compensation which aze not includible in the -
Employee's gross income for the taxable yeaz in which contributed, or Employer Contributions
under a simplified employee pension plan to the extent such conuibutions aze deductible by the
Employee, or any distributions From a plan of deferred compensation; and
(2) Other amounts which received special tax benefits, or conuibutions made by the Employer
(whether or not under. a salary reduction agreement) towards the purchase of an annuity contract
described in section 403(b) of the Code (whether or not the amounts are actually excludable
from the gross income of the Employee).
(3) Notwithstanding the above, for Limitation Years beginning after December 31, 1997, Compen-
sation shall include:
AGENDA ITEM 6A
FEBRUARY 11, 2002
(a) any elective deferrals (as defined in section 402(8)(3) of the Code), and
(b) any amount which is contributed or deferred by the Employer at the election of the
Employee and which is not includible in the gross income of the Employee by reason of
sections 125 or 457 of the Coda
(4) Notwithstanding the above, for Limitation Years beginning on and aker January 1, 2001, for
purposes of applying the limitations described in this Article V of the Plan, Compensation paid
or made available during such Limitation Years shall include elective amounts that are not
includible in the gross income of the Employee by reason oFsection 132(f)(4) of the Code.
For purposes of applying the limitations of this Article, Compensation for a Limitation Year is the Compensa-
tion actually paid or made available during such year:
(c) Defined Contribution Dollar Limitation: $30,000.
(d) Employer. The Employer that adopts this Plan.
(e) Excess Amount.. The excess of the Participant's Annual Additions for the Limitation Yeaz. over the Maxi-
mum Permissible Amount.
An Excess Amount shall include allocable income. The income allocable to an Excess Amount is equal to
the sum of the allocable gain or loss for the Plan Year and the allocable gain or loss for the period between
.the end of the Plan Year and the date of distributions (the gap period). The Plan may use any reasonable
method for computing the income allocable to an Excess Amount, provided that the method is used
consistently for all Pazticipants and for all corrective distributions under the Plan for the Plan Yeaz, and is
used by the Plan for allocating income to Participants' Accounts.
(f) Highest Average Compensation: The average Compensation for the three (3) consecutive years of service
with the Employer that produce the highest average. A year of service with the Employer is the twelve
(12) consecutive month period defined as the Limitation Yeaz in the Adoption Agreement.
(g) Limitation Year. A calendaz yeaz, or the twelve (12) .consecutive month period elected by the Employer in
the Adoption Agreement. All. qualified plans maintained by the Employer must use the same Limitation
Year. If the Limitation Yeaz is amended to a different twelve (12) consecutive month period, the new
Limitation Yeaz must begin on a date within the Limitation Yeaz in which the amendment is made.
(h) Maximum Permissi6leAmount The maximum Annual Addition that may be contributed or allocated to a
Participant s Account under the Plan for any Limitation Yeaz shall not exceed the lesser of:
(1) The Defined Contribution Dollaz Limitation, or
(2) Twenty-five percent (25%) of the Pazticipan~ s Compensation for the Limitation Yeaz.
If a short Limitation Yeaz is created because of an amendment changing the Limitation Year to a different
twelve (12) consecutive month period, the Maximum Permissible Amount will not exceed the Defined
Contribution Dollaz Limitation multiplied by the following Fraction:
Number of months in the short Limitation Year
_ 12
(i) :Projected Annual Benefit: The annual retirement benefit (adjusted to an actuazially equivalent straight
n,rnn innsrnri
AGENDA ITEM 6A
FEBRUARY 11, 2002
life annuity if such benefit is expressed in a form other than a straight life annuity or qualified joint and
survivor annuity) to which the Participant would be entitled. under the terms of the plan assuming:
(1) The Participant will continue employment until Normal Retirement Age under the plan (or current
age, if later), and
(2) The Participan~ s Compensation for the current Limitation Yeaz and all other relevant Factors used
to determine benefits under the plan will remain constant for all future Limitation Years.
VI. TRUST AND INVESTMENT OF ACCOUNTS
6.01 Trust. A Trust is hereby created to hold all of the assets of the Plan for ehe exclusive benefit of Patticipants
and $eneficiazies, 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 ocher person which agrees co act in chat capacity hereunder.
6.02 Investment Powers. The trustee or the Plan Administrator, acting as agent for ehe trustee, shall have the
powerslisted in this Section with xespect to investment of Trust assets; excepe to the extent that the investment of Trust
assets is controlled by Participants, pursuant to Section 13.03.
{a) To invest and reinvest the Trust without distinction between principal and income in common or
preferred stocks; shares of regulated investment companies and ocher 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 induding but not limited to savings ac-
counts 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 pan of the assets of the Trust in any common, collective or commingled
trust fund chat is maintained by a bank or other institution and that is available to Employee plans
qualified under section 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 Plan,
the declaration of trust of such common, collective, or commingled trust fund shall constitute a pazt of
this Plan.
(c) To invest and reinvest all. or any pan of the assets of the Trust in any group annuity, deposit administra- .
tion 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 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 Plan Administrator, or such custodian as the Plan 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 pazt of the Plan.
(d) To hold cash awaiting investment and to keep such. portion of the Trust in cash or cash balances, without
'y liability for interest, in such amounes as may from rime to time be deemed to be reasonable and necessary
~' ~' to meet obligations underthe Plan of otherwise to be in the best interests of the Plan.
j!'
{e) To hold, co authorize the holding of, and co register any investment co the Trust in the name of the Plan,
the Employer, or any nominee or agent of any of the Foregoing, including the Plan Administrator, or in
bearer form, co deposit or azrange fot the deposit of securities in a qualified central depository even
AGENDA ITEM
FEBRUARY 11, 2002
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 corpora-
tions or trusts under the laws of any jurisdiction for the purpose of acquiring or holding title co any
property for the Trust, all with or without the addition of words or ocher action co indicate that property
is held in a fiduciary or representative capacity but the books and records of the Plan shall at all times
show chat all such investments aze pazt of the Trust.
(f) Upon such terms as may be deemed advisable by the Employer or the Plan Administrator, as the case may
be, for the protection o£ 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 of
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 co the Plan, to settle, compromise, adjust, or submit co
arbitration any claim or right in favor of or against the Plan, ro 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, co 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 of law 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 Plan Administrator, in any bank or banks.
(i) To do any and all other acts that maybe deemed necessary to cazry 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,, or in respect to the Trust, or the income thereof, and all commissions or acquisitions or dispositions
of securities and similaz expenses of investment and reinvestment of the Trust, shall be paid from the Trust. Such .
reasonable compensation of the Plan Administrator, as may be agreed upon from time to time by the Employer and
the Plan Administrator, and reimbursement For reasonable expenses incurred by the Plan Administrator in perform-
ance of its duties hereunder (including but not limired to fees for legal, accounting, investment and custodial services)
shall also be paid from the Trust. However, no person who is a fiduciary within the meaning of section 3(21)(A) of
ERISA and regulations promulgated thereunder, and who receives full-time pay from the Employer may receive
compensation from the Trust, except for expenses properly and actually incurred.
6.04 Payment of Benefits. The payment of benefits from the Trust in accordance wick the terms of the Plan may be
made by the Plan Administrator, or by any custodian or other person so authorized by the Employer to make such
disbursement. Benefits under this Plan shall be paid only if the Plan Administrator, custodian or ocher person decides
in his/her discretion that the applicant is entitled co them. The Plan Administrator, custodian or ocher person shall
not be liable wish respect to any distribution of Trust assets made at the direction of the Employee
6.05 Investment Funds. In accordance with uniform and nondiscriminatory rules established by the Employer and
the Plan Administrator, the Pazticipant may direct his/her Accounts to be invested in one (1) or more investment
funds available under the Plan; provided, however, that the Pazticipant s investment directions shall not violate any
investment restrictions established by the Employer and shall not include any investment in collectibles, as defined in
section 408(m) of the Code.
6.0G Valuation of Accounts. As of each Accounting Date> the Plan assets held in each investment fund offered
shall be valued at fair mazket 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 proportionaeely among all Account balanceson a fund-
. by-fund basis. The allocation shall be in the propottion that each such Account balance as of the immediately preced-
ingAccounting Date beazs to the xotal of all such Account balances as of that Accounting Date. For purposes of this
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