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HomeMy WebLinkAboutRES 21-01 RESOLUTION NO. 21-01 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, ADOPTING A SUPPLEMENTAL DEFINED CONTRIBUTION PLAN SPONSORED THROUGH NATIONWIDE FOR ALL CITY ELIGIBLE OFFICERS AND EMPLOYEES ADMINISTERED THROUGH THE ARIZONA STATE RETIREMENT SYSTEM. WHEREAS, on December 22, 1993, the mayor and city council ("Council") passed Ordinance No. 884 establishing a policy related to the use of Internal Revenue Code § 457 Retirement Funds and Resolution No. 93-23 establishing a deferred compensation plan for the City of Apache Junction ("City") administered by the United States Conference of Mayors which endorsed the Nationwide 457 plan.; and WHEREAS, on March 6, 1996, Council passed Resolution No . 96--05 establishing a deferred compensation plan offered through the International City Managers Association Retirement Corporation ("ICMA") ; and WHEREAS, can November 4, 2003, Council passed Resolution No 03-05 authorizing establishment of a governmental profit-sharing plan and trust adoption agreement known as a "401 (A) " plan offered. through ICMA; and WHEREAS, on March 15, 2016, Council passed Resolution No. 16-08 authorizing renewal of the 401 (A) plan and trust adoption agreement with ICMA as required under federal law; and WHEREAS, Council desires to make avail-able to its employees other financial retirement planning alternatives, such as the Nationwide Retirement Solutions supplemental salary deferral plan ("SSDP") for eligible City officers and employees to be administered by the Arizona State Retirement System ("ASRS") under Article 2, Chapter 5, Title 38 of the Arizona Revised Statutes (see Exhibit A) . NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA AS FOLLOWS . 1) The City of Apache Junction hereby adopts the Nationwide SSDP established by ASRS pursuant to A.R.S . § 38-781, for eligible City officers and employees, more fully set forth in Exhibit A. RESOLUTION NO. 21-01 PAGE 1 OF 2 2) This SSDP shall be a deferred salary retirement plan in addition to the other available plans currently offered by the City for eligible employees . 3) The city manager and his designees are hereby authorized and directed to take any and all steps, including, without limitation, execution of documents and agreements, necessary to carry out the purpose and intent of this resolution. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF 2021 . SIGNED AND ATTESTED TO THIS DAY OF 2021 . CHIP WILSON Mayor ATTEST: elf P J 4NN F�R P A,1, City Clerk APPROVED AS TO FORM: (41-19-21 RICHARD J. STERN City Attorney RESOLUTION NO. 21-01 PAGE 2 OF 2 EXHIBIT A (Name�/'�mp►at�r, DEFERRED COMPENSATION L LIC EMPLOYEES 457 GOVERNMENTAL PLAN AND TRUST Document provided as a courtesy or. Nationwide' 11-V Retirement :Soluaons On Your ® w de D 057-0211 457 Governmental Plan and Trust 457 GOVERNMENTAL PLAN AND TRUST The Employer adopts this 457 1.06 "Code"means the Internal Revenue Code Governmental Plan and Trust. The Plan is intended of 1986,as amended. to be an "eligible deferred compensation plan" as defined in Code §457(b) of the Internal Revenue 1.07 "Compensation" for purposes of Code of 1986 ("Eligible 457 Plan"). The Plan allocating Deferral Contributions means the consists of the provisions set forth in this plan employee's wages, salaries, fees for professional document and is applicable to the Employer and each services, and other amounts received without regard Employee who elects to participate in the Plan. If the to whether or not an amount is paid in cash for personal services actually rendered in the course of Employer adopts this Plan as a restated Plan in employment with the Employer,to the extent that the substitution for, and in amendment of, an existing amounts are includible in gross income (or to the plan, the provisions of this Plan, as a restated Plan, extent amount would have been received and apply solely to an Employee on or after the execution includible in gross income but for an election under of this Plan. The Plan is effective as to each Code §§ 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), Employee upon the date he/she becomes a Participant 402(k), and 457(b), including an election to defer by entering'into and filing with the Employer or the Compensation under Article 111. See Section 1.16 as Administrative Services Provider a Participation to Compensation for an Independent Contractor, Agreement or an Acknowledgement Form/Card. Compensation also includes any amount that the Internal Revenue Service in published guidance ARTICLE I declares to constitute compensation for purposes of DEFINITIONS an Eligible 457 Plan. 1.01 "Account"means the separate Account(s) (A) Elective Contributions. Compensation under which the Administrative Services Provider or the Section 1.07 includes Elective Contributions. Trustee maintains under the Plan for a Participant's "Elective Contributions" are amounts excludible Deferred Compensation.The Administrative Services from the Employee's gross income under Code Provider or Trustee may establish separate Accounts §§125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), for multiple Beneficiaries of a Participant to facilitate 408(p) or 457, and contributed by the Employer, at required minimum distributions under Section 4.03 the Employee's election, to a cafeteria plan, a based on each Beneficiary's life expectancy. qualified transportation fringe benefit plan, a 401(k) arrangement, a SARSEP, a tax-sheltered annuity, a 1.02 "Accounting Date"means the last day of SIMPLE plan or a Code§457 plan, the Plan Year. (B) Dirferential wage payments. For years 1.03 "Acknowledgement Form/Card" means beginning after December 31,2008, (i)an individual the application to the Administrative Services receiving a differential wage payment,as defined by Provider to participate in the Plan when the Plan is a Code§3401(h)(2),shall be treated as an employee of Social Security replacement plan. the employer making the payment;(il)the differential wage payment shall be treated as compensation; and 1.04 "Administrative Services Provider" (iii)the plan will not be treated as failing to meet the means Nationwide Retirement Solutions, Inc. which requirements of any provision described in Code acts as the third party administrative services §414(u)(1)(C) by reason of any contribution or provider appointed by the Employer to carry out benefit which is based on the differential Wage nondiscretionary administrative functions for the payment, Plan. 1.08 "Deferral Contributions" means Salary 1.05 "Beneficiary" means a person who the Reduction Contributions, Nonelective Contributions Plan or a Participant designates and who is or may and Matching Contributions. The Employer or the become entitled to a Participant's Account upon the Administrative Services Provider (if applicable) in Participant's death. A Beneficiary who becomes applying the Code § 457(b) limit will take into entitled to a benefit under the Plan remains a account Deferral Contributions in the Taxable Year Beneficiary under the Plan until the Beneficiary has in which deferred. The Employer or Administrative received full distribution of his/her Plan benefit. A Services Provider (if applicable) in determining the Beneficiary's right to (and the Administrative amount of a Participant's Deferral Contributions Services Provider's or a Trustee's duty to provide to disregards the net income, gain and loss attributable the Beneficiary) information or data concerning the to Deferral Contributions, Plan does not arise until the Beneficiary first becomes entitled to receive a benefit under the Plan. 1.09 "Deferred Compensation"means as to a Participant the amount of Deferral Contributions, 0 Copyright 2010 SunGord 1/10 1 DC-4057-0211 457 Governmental Plan and Trust Rollover Contributions and Transfers adjusted for 1.19 "Nonelective Contribution" means an allocable net income,gain or loss,in the Participant's Employer fixed or discretionary contribution not Account. made as a result of a Participation Agreement and which is not a Matching Contribution.The Employer LIO "Effective Date" of this Plan is the date may provide for nonelective contributions. indicated on the execution line unless the Code, Treasury regulations, or other applicable guidance 1.20 "Normal Retirement Age" means the provides otherwise. age designated by the Participant unless the Employer designates in writing a Normal Retirement 1,11 "Employee" means an individual who Age. The Normal Retirement Age designated by the provides services for the Employer,as a common law Participant or Employer shall be no earlier than age employee of the Employer. See Section 1.16 65 or the age at which Participants have the right to regarding potential treatment of an Independent retire and receive, under the basic defined benefit Contractor as an Employee. pension plan of the Employer(or a money purchase plan in which the Participant also participates if the 1.12 "Employer" means an employer who Participant is not eligible to participate in a defined adopts this Plan by executing the Plan. benefit plan), immediate retirement benefits without actuarial or similar reduction because of retirement 1.13 "Employer Contribution" means before some later specified age. The Normal Nonelective Contributions or Matching Retirement Age also shall not exceed age 70Yz. Contributions. Special Ride for Eligible Plans of Qualified 1.14 "Excess Deferrals" means Deferral Police at- F-h-efighters. A Participant who is a Contributions to an Eligible 457 Plan for a qualified police officer or firefighter as defined under Participant that exceed the Taxable Year maximum Code §415(b)(2)(H)(ii)(I) may designate a Normal limitation of Code§§457(b)and(c)(18). Retirement Age between age 40 and age 70 Vz. 1.15 "Includible Compensation" means, for 1.21 "Participant" is an Employee who elects the Employee's Taxable Year, the Employee's total to participate in the Plan in accordance with the Compensation within the meaning of Code § provisions of Section 2.01 or an individual who has 415(c)(3) paid to an Employee for services rendered previously deferred Compensation under the Plan by to the Employer. Includible Compensation includes a Participation Agreement and has not received a Deferral Contributions under the Plan, compensation complete distribution of his/her Account. deferred under any other plan described in Code §457, and any amount excludible from the 1.22 "Participation Agreement" means the Employee's gross income under Code §§401(k), agreement to enroll and participate in the Plan that is 403(b), 125 or 132(f)(4) or any other amount completed by the Participant and provided to the excludible from the Employee's gross income for Administrative Services Provider. The Participation Federal income tax purposes. The Employer will Agreement is the agreement, by which the Employer determine Includible Compensation without regard to reduces the Participant's Compensation for community property laws. contribution to the Participant's Account. 1.16 "Independent Contractor" means any 1.23 "Plan"means the 457 plan established or individual who performs service for the Employer continued by the Employer in the form of this Plan and who the Employer does not treat as an Employee and (if applicable) Trust Agreement. All section or a Leased Employee. The Employer may permit references within the Plan are Plan section references Independent Contractors to participate in the Plan.To unless the context clearly indicates otherwise, the extent that the Employer permits Independent Contractor participation, references to Employee in 1.24 "Plan Entry Date" means the date an the Plan include Independent Contractors and which an Employee completes and files a Compensation means the amounts the Employer pays Participation Agreement with the Administrative to the Independent Contractor for services. Services Provider. 1.17 "Leased Employee" means an Employee 1.25 "Plan Year"means the calendar year, within the meaning of Code§414(n). 1.26 "Rollover Contribution" means the 1.18 "Matching Contribution" means an amount of cash or property which an eligible Employer fixed or discretionary contribution made or retirement plan described in Code §402(c)(8)(B) forfeiture allocated on account of Salary Reduction distributes to an eligible Employee or to a Participant Contributions. The Employer may provide for in an eligible rollover distribution under Code matching contributions. §402(c)(4) and which the eligible Employee or Participant transfers directly or Indirectly to an 2 1/10 DC-4057-0211 ............... 457 Governmental Plan and Trust Eligible 457 Plan. A Rollover Contribution includes (2) Independent Contractor. An Independent net income, gain or loss attributable to the Rollover Contractor has a Severance from Employment when Contribution. A Rollover Contribution excludes the contract(s) under which the Independent after-tax Employee contributions, as adjusted for net Contractor performs services for the Employer income,gain or loss. expires (or otherwise terminates), unless the Employer anticipates a renewal of the contractual 1.27 "Salary Reduction Contribution"means relationship or the Independent Contractor becoming a contribution the Employer makes to the Plan an Employee.The Employer anticipates renewal if it pursuant to a Participation Agreement. intends to contract for the services provided under the expired contract and neither the Employer nor the 1.28 "Service" means any period of time the Independent Contractor has eliminated the Employee is in the employ of the Employer. In the Independent Contractor as a potential provider of case of an Independent Contractor, Service means such services under the new contract. Further, the any period of time the independent Contractor Employer intends to contract for services conditioned performs services for the Employer on an only upon the Employer's need for the services independent contractor basis. An Employee or provided under the expired contract or the Independent Contractor terminates Service upon Employer's availability of funds. Notwithstanding incurring a Severance from Employment. the preceding provisions of this Section 1.28, the Administrative Services Provider will consider an (A) Qunlified Military Service. Service includes Independent Contractor to have incurred a Severance any qualified military service the Plan must credit for from Employment: (a)if the Administrative Services contributions and benefits in order to satisfy the Provider or Trustee will not pay any Deferred crediting of Service requirements of Code§414(u),A Compensation to an Independent Contractor who is a Participant whose employment is interrupted by Participant before a date which is at least twelve qualified military service under Code§414(u)or who months after the expiration of the Independent is on a leave of absence for qualified military service Contractor's contract (or the last to expire of such under Code §414(u) may elect tomake additional contracts)to render Services to the Employer,and(b) Salary Reduction Contributions upon resumption of if beford the applicable twelve-month payment date, employment with the Employer equal to the the Independent Contractor performs Service as an maximum Deferral Contributions that the Participant Independent Contractor or as an Employee, the could have elected during that period if the Administrative Services Provider or Trustee will not Participant's employment with the Employer had pay to the Independent Contractor his/her Deferred continued (at the same level of Compensation) Compensation on the applicable date. without the interruption of leave, reduced by the Deferral Contributions, if any, actually made for the (3) Uniformed Services, for purposes of Participant during the period of the interruption or distributions to an individual in the uniformed leave.This right applies for five years following the services,such individual will be treated as incurring a resumption of employment(or,if sooner,for a period Severance from Employment during any period the equal to three times the period of the interruption or individual is performing service in the uniformed leave). The Employer shall make appropriate make- services described in Code § 3401(h)(2)(A). up Nonelective Contributions and Matching However, the plan will not distribute the benefit to Contributions for such a Participant as required under such an individual without that individual's consent, Code §414(u). The Plan shall apply limitations of so long as the individual is receiving differential Article III to all Deferral Contributions under this wage payments. paragraph with respect to the year to which the Deferral Contribution relates, If an individual elects to receive a distribution under this provision,the individual may not make an (B) "Continuous Service" means Service with the elective deferral or employee contribution during the Employer during which the Employee does not incur 6-month period beginning on the date of the a Severance from Employment. distribution. (C) "Severance from Employment." 1.29 "State' means(a) one of the 50 states of the United States or the District of Columbia,or(b)a (1) Employee. An Employee has a Severance political subdivision of a State, or any agency or from Employment when the Employee ceases to be instrumentality of a State or its political subdivision. an Employee of the Employer. A Participant does A State does not include the federal government or not incur a Severance from Employment if, in any agency or instrumentality thereof, connection with a change in employment, the Participant's new employer continues or assumes 1.30 "Taxable Year"means the calendar year sponsorship of the Plan or accepts a Transfer of Plan or other taxable year of a Participant. assets as to the Participant. 0 Copyright 2010 SunGard 1/10 3 DC-4057-0211 ------------------ 457 Governmental Plan and Trust 1.31 "Transfer" means a transfer of Eligible the Administrative Services Provider an 457 Plan assets to another Eligible 457 Plan which is Acknowledgement Fon-a/Card and thereby consent to not a Rollover Contribution and which is made in a reduction of salary by the amount of the Deferral accordance with Section 9.03. Contribution specified in the Acknowledgement Form/Card. Allocations to the Participant's Account 1,32 "Trust" means the Trust created under must equal at least 7.5% of the Participant's the adopting Employer's Plan. The Trust created and Compensation or such other minimum amount as established under the adopting Employer's Plan is a shall be required for the Plan to be considered a separate Trust, independent of the trust of any other retirement system under Code §3121(b)(7)(F) and Employer adopting this Eligible 457 Plan and is Treas. Reg. §31.3121(b)(7)-2, and the reduction in subject to Article VIII. the Participant's salary shall begin no earlier than the first pay period commencing during the first month 1.33 "Trustee" means the person or persons after the date on which the Acknowledgement designated by the Employer to serve in the position Form/Card is filed with the Administrative Services of Trustee. Provider. ARTICLE II (C) Takeover Plans,If the Plan is a restated Plan,an PARTICIPATION IN PLAN Employee who participated in the predecessor plan shall become a Participant in the Plan upon the 2.01 ELIGIBILITY. Each Employee becomes Employer's execution of the enabling documents for a Participant in the Plan as soon as he/she completes this Plan. Allocations to each such Participant's and files a Participation Agreement, If this Plan is a Account must equal at least 7.5%of the Participant's restated Plan, each Employee who was a Participant Compensation, or such other minimum amount as in the Plan on the day before the Effective Date shall be required for the Plan to be considered a continues as a Participant in the Plan. retirement system under Code §3121(b)(7)(F) and Treas. Reg. §31,3121(b)(7)-2, and the reduction in 2.02 PARTICIPATION UPON RE- the Participant's salary shall begin immediately L_QYMENT. A Participant who incurs a thereafter. Severance from Employment will re-enter the Plan as a Participant on the date of his/her re-employment, ARTICLE III DEFERRAL CONTRIBUTIONS/LIMITATIONS 2.03 SPECIAL ELIGIBILITY PROVISIONS FOR PARTICIPANTS IN A PLAN USED A A 3.01 AMOUNT SOCIAL SECURITY REPLACE T PLAN. Notwithstanding any provision to the contrary, the (A) Contribution Formula.For each Plan Year,the provisions of this Section 2.03 will apply if the Employer will contribute to the Plan the amount of Employer elects in a written agreement with the Deferral Contributions the Employee elects to defer Administrative Services Provider to use the Plan as a under the Plan. Social Security replacement plan. If the Plan is used as a Social Security replacement plan,the provisions (B) Return of Contributions. The Employer of Sections 4,05(a)and 5.03 will not apply. contributes to this Plan on the condition its contribution is not due to a mistake of fact. If any (A) Eligibility to participate for new Employees, Participant Salary Reduction Contribution is due to a A new Employee shall,as a condition of employment mistake of fact, the Employer or the Trustee upon participate in the Plan sign and file with the written request from the Employer will return the Administrative Services Provider an Participant's contribution, within one year after Acknowledgement Form/Card and thereby payment of the contribution. consenting to a reduction of salary by the amount of the Deferral Contribution specified in the The Trustee may require the Employer to furnish it Acknowledgement Form/Card. Contributions to the whatever evidence the Trustee deems necessary to Participant's Account must equal at least 7.5%of the enable the Trustee to confirm the amount the Participant's Compensation, or such other minimum Employer has requested be returned is properly amount as shall be required for the Plan to be returnable. considered a retirement system under Code §3121(b)(7)(F)and Treas.Reg.31,3121(b)(7)-2, and (C) Time of Payment of Contribution. An the reduction in the Participant's salary shall begin Employer will deposit Salary Reduction immediately thereafter. Contributions to the Trust within a period that is not longer than is reasonable for the administration of (B) Eligibility to participate for current Participant Accounts, Neither the Administrative Employees. An Employee who is newly eligible to Services Provider nor the Trustee is responsible for participate in the Plan shall, prior to becoming the delay of deposits of Salary Reduction eligible to participate in the Plan, sign and file with Contributions caused by the Employer. 4 mo OC-4057-0211 457 Governmental Plan and Trust reason of Qualified Military Service(as described in 3.02 SALARY REDUCTION CONTRIBU- Code§414(u)(1))to the extent those payments do not TION5. The Plan does not apply any limitations on exceed the amounts the individual would have Salary Reduction Contributions other than the received if the individual had continued to perform limitations applicable under the Code. services for the Employer rather than entering (A) Deferral from Sick, Vacation and Back Pay. Qualified Military Service. Participants may make Salary Reduction Limitation on Post-Severance Compensation. Any Contributions from accumulated sick pay, from payment of Compensation paid after Severance of accumulated vacation pay or from back pay. Employment that is not described in Section 3.02(C)(1) or 3.02(C)(2) is not Post-Severance (B) Application to Leave of Absence and Compensation, even if payment is made by the later Disability. The Participation Agreement will of 2% months after Severance from Employment or continue to apply during the Participant's leave of by the end of the calendar year that includes the date absence or the Participant's disability (as the of such Severance of Employment. Employer shall establish), if the Participant has Compensation other than imputed compensation or 3.03 NORMAL LIMITATION. Except as disability benefits. provided in Sections 3,04 and 3.05, a Participant's maximum Deferral Contributions (excluding (C) Post-severance deferrals limited to Post- Rollover Contributions and Transfers)under this Plan Severance Compensation. Deferral Contributions for a Taxable Year may not exceed the lesser of. are permitted from an amount received following Severance from Employment only if the amount is (a) The applicable dollar amount as Post-Severance Compensation. specified under Code §457(e)(15) (or, beginning January 1, 2006) such larger amount as the Post-Severance Compensation defined. Post- Commissioner of the Internal Revenue may Severance Compensation includes the amounts prescribe),or described in (1) and (2) below, paid after a Participant's Severance from Employment with the (b) 100% of the Participant's Includible Employer, but only to the extent such amounts are Compensation for the Taxable Year, paid by the later of 2%months after Severance from Employment or the end of the calendar year that 3.04 NORMAL RETIREMENT AGE includes the date of such Severance from CATCH-UP CONTRIBUTION. For one or more of Employment. the Participant's last three Taxable Years ending before the Taxable Year in which the Participant (1) Regular pay.Post-Severance Compensation attains Normal Retirement Age, the Participant's includes regular pay after Severance of Employment maximum Deferral Contributions may not exceed the if: (1) the payment is regular compensation for lesser of- services during the Participant's regular working hours, or compensation for services outside the (a) Twice the dollar amount under Section 3.03 Participant's regular working hours(such as overtime normal limitation,or(b)the underutilized limitation. or shift differential), commissions, bonuses, or other similar payments; and (il) the payment would have (A) Underutilized Limitation, A Participant's been paid to the Participant prior to a Severance from underutilized limitation is equal to the sum of(i)the Employment if the Participant had continued in normal limitation for the Taxable Year, and (ii) the employment with the Employer. normal limitation for each of the prior Taxable Years of the Participant commencing after 1978 during (2) Leave cashouts. Post-Severance which the Participant was eligible toparticipate in the Compensation inch(des leave cashouts if those Plan and the Participant's Deferral Contributions amounts would have been included in the definition were subject to the normal limitation or any other of Compensation if they were paid prior to the Code § 457(b) limit, less the amount of Deferral Participant's Severance from Employment, and the Contributions for each such prior Taxable Year, amounts are payment for unused accrued bona fide excluding age 50 catch-up contributions, sick, vacation, or other leave, but only if the Participant would have been able to use the leave if (B) Multiple 457 Plans. If the Employer maintains employment had continued, more than one Eligible 457 Plan, the Plans may not permit any Participant to have more than one Normal (3)Salary continuation payments for military Retirement Age under the Plans. service Participants. Post-Severance Compensation (C) Pre-2002 Coordination. In determining a includes payments to an individual who does not Participant's underutilized limitation, the currently perform services for the Employer by Q Copyright 2010 SunGord 1/10 5 OC-4057-0211 457 Governmental Plan and Trust coordination rule in effect under now repealed Code the Administrative Services Provider and Trustee §457(c)(2) applies. Additionally, the normal must treat the Employee as a limited Participant (as limitation for pre-2002 Taxable Years is applied in described in Rev. Rul, 96-48 or in any successor accordance with Code§457(b)(2)as then in effect. ruling). If a limited Participant has a Severance from Employment prior to becoming a Participant in the 3.05 AGE 50 CATCH-UP Plan, the Trustee will distribute his/her Rollover CONTRIBUTION. All Employees who are eligible Contributions Account to the limited Participant in to make Salary Reduction Contributions under this accordance with Article TV. Plan and who have attained age 50 before the close of the Taxable Year are eligible tomake age 50 catch- (C) Separate Accounting. If an Employer permits up contributions for that Taxable Year in accordance Rollover Contributions, the Administrative Services with,and subject to the limitations of,Code§414(v). Provider must account separately for: (1) amounts Such catch-up contributions are not taken into railed into this Plan from an eligible retirement plan account for purposes of the provisions of the plan (other than from another Eligible 457 plan); and (2) implementing the required limitations of Code§457. amounts rolled into this Plan from another Eligible If, for a Taxable Year, an Employee makes a catch- 457 Plan. The Administrative Services Provider for up contribution under Section 3.04, the Employee is purposes of ordering any subsequent distribution not eligible to make age 50 catch-up contributions from this Plan may designate a distribution from a under this Section 3.05, A catch-up eligible Participant's Rollover Contributions as coming first Participant in each Taxable Year is entitled to the from either of(1)or(2) above if the Participant has greater of the amount determined under Section 3.04 both types of Rollover Contribution Accounts. or Section 3.05 catch-up amount plus the Section 3.03 normal limitation, 3.09 DISTRIBUTION OF EXCESS DEFERRALS, In the event that a Participant has 3.06 CONTRIBUTION ALLOCATION. The Excess Deferrals, the Plan will distribute to the Administrative Services Provider will allocate to Participant the Excess Deferrals and allocable net each Participant's Account histher Deferral income,gain or loss, in accordance with this Section Contributions. 3.09. 3.07 ALLOCATION CONDITIQN_S.The Plan The Administrative Services Provider will distribute does not impose any allocation conditions, Excess Deferrals from an Eligible 457 Plan as soon as is reasonably practicable following the 3.08 ROLLOVER CONTRIBUTIONS, The Administrative Services Provider's or Employer's Plan permits Rollover Contributions, determination of the amount of the Excess Deferral. (A) Operational Administration. The Employer, (A) Plan Aggregation. If the Employer maintains operationally and an a nondiscriminatory basis, may more than one Eligible 457 Plan,the Employer must elect to permit or not to permit Rollover aggregate all such Plans in determining whether any Contributions to this Plan or may elect to limit an Participant has Excess Deferrals. eligible Employee's right or a Participant's right to make a Rollover Contribution. If the Employer (13) Individual Limitation. If a Participant permits Rollover Contributions,any Participant(or as participates in another Eligible 457 Plan maintained applicable, any eligible Employee), with the by a different employer, and the Participant has Employer's written consent and after filing with the Excess Deferrals, the Administrative Services Trustee the form prescribed by the Administrative Provider may, but is not required, to correct the Services Provider,may make a Rollover Contribution Excess Deferrals by making a corrective distribution to the Trust. Before accepting a Rollover from this Plan. Contribution, the Trustee may require a Participant (or eligible Employee) to furnish satisfactory 3.10 DOLLAR LIMITS, The table below evidence the proposed transfer is in fact a"Rollover shows the applicable dollar amounts described in Contribution" which the Code permits an employee paragraph 3.03(a)and limitations on age 50 catch-up to make to an eligible retirement plan,The Trustee,in contributions described in Section 3.05. These its sole discretion, may decline to accept a Rollover amounts are adjusted after 2006 for changes in the Contribution of property which could: (1) generate cost-of-living to the extent permitted in Code § unrelated business taxable income; (2) create 415(d). difficulty or undue expense in storage,safekeeping or valuation; or (3) create other practical problems for the Trust. (B) Pre-Participation Rollover. If an eligible Employee makes a Rollover Contribution to the Trust prior to satisfying the Plan's eligibility conditions, 6 ino DC-4057-0211 457 Governmental Plan and Trust 30 days before the date the Participant first would be Applicable Age 50+Catch-up eligible to commence payment of the Participant's Year Dollar Contribution Account, The Administrative Services Provider must — Amount Limitation furnish to the Participant a form for the Participant to 2002 $11,000 $1,000 elect the time and a method of payment. 2003 $12,000 $2,000 2004 $13,000 $3,000 4.03 REQUIRED MINIMUM DISTRIBU- 2005 1 $14,000 4 000 TIONS. The Administrative Services Provider may 206 15,000 $5,000 not distribute nor direct the Trustee to distribute the Participant's Account, nor may the Participant elect any distribution his/her Account, under a method of ARTICLE TV payment which, as of the required beginning date, TIME AND METHOD OF does not satisfy the minimum distribution PAYMENT OF BENEFITS requirements of Code § 401(a)(9) or which is not consistent with applicable Treasury regulations. 4.01 DISTRIBUTION (A) General Rules. RESTRICTIONS. Except as the Plan provides otherwise, the Administrative Services Provider or (1) Precedence. The requirements of this Trustee may not distribute to a Participant his/her Section 4.03 will take precedence over any Account prior to the Participant's Severance from inconsistent provisions of the Plan. Employment, the calendar year in which the Participant attains age 70YS, or such other event for (2) Requirements of Treasury Regulations which federal legislation is enacted or regulatory Incorporated. All distributions required under this relief granted permitting the Plan to make Section 4.03 will be determined and made in distributions to qualifying Participants. accordance with the Treasury regulations under Code §401(a)(9). (A) Distribution of Rollover Contributions.To the extent the Employer permits Rollover Contributions (B)Time and Manner of Distribution (but not Transfers) to this Plan, a Participant may receive a distribution of such Rollover Contributions (1) Required Beginning Date. The without regard to the restrictions found in this Participant's entire interest will be distributed, or Section 4.01. begin to be distributed,to the Participant no later than the Participant's required beginning date. 4.02 Tl AND METHQD OF PAYMENT OF ACCOUNT' The Administrative Services (2) Death of Participant Before Distribution Provider, or Trustee at the direction of the Begins. If the Participant dies before distributions Administrative Services Provider, will distribute to a begin, the Participant's entire interest will be Participant who has incurred a Severance from distributed,or begin to be distributed,no later than as Employment the Participant's Account under one or follows: any combination of payment methods elected by the Participant. The Participant may elect one of the (a) Spouse Designated Beneficiary. If the following methods of payment: (1) lump sum Participant's surviving spouse is the Participant's payment, (2) partial lump sum payment, (3) sole designated Beneficiary, distributions to the installment, or (4) an annuity. In no event will the surviving spouse will begin by December 31 of the Administrative Services Provider direct(or direct the calendar year immediately following the calendar Trustee to commence) distribution, nor will the year in which the Participant dies,or by December 31 Participant elect to have distribution commence,later of the calendar year in which the Participant would than the Participant's required beginning date, or have attained age 70%,if later. under a method that does not satisfy Section 4.03, (b) Non-Spouse Designated Beneficiary. If Subject to any restrictions imposed by the the Participant's surviving spouse is not the Participant's investment providers and the Participant's sole designated Beneficiary, then, Administrative Services Provider,the Participant: (1) distributions to the designated Beneficiary will begin may elect to commence distribution no earlier than is by December 31 of the calendar year immediately administratively practical following Severance from following the calendar year in which the Participant Employment; (2) may elect to postpone distribution died. of his/her Account to any fixed or determinable date (c) No Designated Beneficiary. If there is including, but not beyond, the Participant's required no designated Beneficiary as of September 30 of the beginning date; and (3) may elect the method of year following the year of the Participant's death,the payment. A Participant may elect the timing and Participant's entire interest will be distributed by method of payment of his/her Account no later than 0 Copyright 20l0Sun0ard wo 7 OC-4057-0211 457 Governmental Plan and Trust December 31 of the calendar year containing the fifth Participant's and spouse's birthdays in the anniversary of the Participant's death, distribution calendar year. (d) Death of Spouse. If the Participant's (2) Lifetime Required Minimum surviving spouse is the Participant's sole designated Distributions Continue Through Year or Beneficiary and the surviving spouse dies after the Participant's Death, Required minimum Participant but before distributions to the surviving distributions will be determined under this Section spouse begin, this Section 4,03(B)(2) other than 4.03(C)beginning with the first distribution calendar Section 4,03(B)(2)(a), will apply as if the surviving year and up to and including the distribution calendar spouse were the Participant. year that includes the Participant's date of death. For purposes of this Section 4.03(B)and Section (D) Required Minimum Distributions after 4.03(D), unless Section 4.03(B)(2)(d) applies, Participant's Death. distributions are considered to begin on the Participant's required beginning date, If Section (1) Death On or After Distributions Begin, 4.03(B)(2)(d) applies, distributions are considered to begin on the date distributions are required to begin (a) ParticiRant Survived by Designated to the surviving spouse under Section 4.03(B)(2)(a). Ams—ficji—aa.If the Participant dies on or after the date If distributions under an annuity purchased from an distributions begin and there is a designated insurance company irrevocably commence to the Beneficiary, the minimum amount that will be Participant before the Participant's required distributed for the distribution calendar year of the beginning date (or to the Participant's surviving Participant's death is obtained by dividing the spouse before the date distributions are required to Participant's account balance by the remaining life begin to the surviving spouse under Section expectancy of the Participant. The Participant's 4.03(13)(2)(a),the date distributions are considered to remaining life expectancy is calculated using the begin is the date distributions actually commence. attained age of the Participant as of the Participant's birthday in the calendar year of death. For each (3) Forms of Distribution. Unless the distribution calendar year after the year of the Participant's interest is distributed in the form of an Participant's death,the minimum amount that will be annuity purchased from an insurance company or in a distributed is the quotient obtained by dividing the single sum on or before the required beginning date, Participant's account balance by the remaining life as of the first distribution calendar year distributions expectancy of the Participant's designated will be made in accordance with Sections 4.03(C) Beneficiary, and 4.03(D).If the Participant's interest is distributed in the form of an annuity purchased from an (b) No Designated Beneficiary. If the insurance company, distributions thereunder will be Participant dies on or after the date distributions made in accordance with the requirements of Section begin and there is no designated Beneficiary as of 4.01(a)(9)of the Code and the Treasury regulations. September 30 of the calendar year after the calendar year of the Participant's death, the minimum amount (C) Required Minimum Distributions during that will be distributed for each distribution calendar Participant's Lifetime, year after the calendar year of the Participant's death is the quotient obtained by dividing the Panicipant's (1) Amount of Required Minimum account balance by the Participant's remaining life Distribution for Each Distribution Calendar Year, expectancy calculated using the attained age of the During the Participant's lifetime, the minimum Participant as of the Participant's birthday in the amount that will be distributed for each distribution calendar year of death, reduced by one for each calendar year is the lesser of subsequent calendar year, (a) ULT. The quotient obtained by (2) Death before Date Distributions Begin. dividing the Participant's account balance by the number in the Uniform Life Table set forth in Trees. (a) Participant Survived by Designated Reg. §1.401(a)(9)-9, using the Participant's attained Beneficiary. If the Participant dies before the date age as of the Participant's birthday in the distribution distributions begin and there is a designated calendar year;or Beneficiary, the minimum amount that will be distributed for each distribution calendar year after (b) Younger Spouse. If the Participant's the year of the Participant's death is the quotient sole designated Beneficiary for the distribution obtained by dividing the Participant's account calendar year is the Participant's spouse,the quotient balance by the remaining life expectancy of the obtained by dividing the Participant's account Participant's designated Beneficiary, determined as balance by the number in the Joint and Last Survivor provided in Section 4.03(D)(1). Table set forth in Trees. Reg. §1,401(a)(9)-9, using the Participant's and spouse's attained ages as of the 8 1110 OC-4057-0211 --------------------------- 457 Governmental Plan and Trust (b) No Designated Beneficiary. If the the Plan either in the valuation calendar year or in the Participant dies before the date distributions begin distribution calendar year if distributed or transferred and there is no designated Beneficiary as of in the valuation calendar year, September 30 of the year following the year of the Participant's death, distribution of the Participant's (5) Required beginning date. A Participant's entire interest will be completed by December 31 of required beginning date is the April I of the calendar the calendar year containing the fifth anniversary of year following the later of. (1) the calendar year in the Participant's death. which the Participant attains age 7M, or (2) the calendar year in which the Participant retires or such (c) Deat h of Surviving Spouse Before other date under Code§401(a)(9)by which required Distributions to Surviving Spouse Are Required to minimum distributions must commence. Pni:n. If the Participant dies before the date distributions begin,the Participant's surviving spouse (F) General 2009 waiver.The requirements of Code is the Participant's sole designated Beneficiary, and § 401(a)(9) and the provisions of the Plan relating the surviving spouse dies before distributions are thereto, will not apply for the distribution calendar required to begin to the surviving spouse under year 2009. Section 4.03(13)(2)(a), this Section 4.03(D)(2) will apply as if the surviving spouse were the Participant. (1) Special rule regarding waiver period. For purposes of Code § 401(a)(9) and the provisions of (E) Definitions the Plan relating thereto: (a) the required beginning date with respect to any individual will be determined (1) Designated Beneficiary. The individual without regard to this Article IV for purposes of who is designated as the Beneficiary under the Plan applying Code § 401(a)(9) for distribution calendar and is the designated beneficiary under Code years other than 2009; and (b) if the 5-year rule of §401(a)(9)and Treas,Reg.§1.401(a)(9)-I,Q&A-4. Code § 401(a)(9)(B)(ii) applies, the 5-year period described therein shall be determined without regard (2) Distribution calendar year. A distribution to calendar year 2009. calendar year means a calendar year for which a minimum distribution is required. For distributions (2) Eligible rollover distributions.If all or any beginning before the Participant's death, the first portion of a distribution during 2009 is treated as an distribution calendar year is the calendar year eligible rollover distribution but would not be so immediately preceding the calendar year which treated if the minimum distribution requirements contains the Participant's required beginning date. under Code § 401(a)(9) had applied during 2009, For distributions beginning after the Participant's then the Plan will not treat such distribution as an death, the first distribution calendar year is the eligible rollover distribution for purposes of the direct calendar year in which the distributions are required rollover rules of Code § 401(a)(31), the notice to begin under Section 4,03(B)(2). The required requirements of Code §402(f), or the 20% minimum distribution for the Participant's first withholding requirement of Code§3405(c). distribution calendar year will be made on or before the Participant's required beginning date. The (3) Participant may elect.The Plan will permit required minimum distribution for other distribution an affected Participant to elect whether to receive calendar years, including the required minimum his/her RMD distribution for 2009. If the Participant distribution for the distribution calendar year in falls to notify the Administrative Services Provider of which the Participant's required beginning date his/her waiver,the Plan will distribute the 2009 RMD occurs, will be made on or before December 31 of to the Participant. that distribution calendar year. 4.04 DEATH BENEFITS. Upon the death of (3) Life expectancy. Life expectancy as the Participant, the Administrative Services Provider computed by use of the Single Life Table in Treas. must pay or direct the Trustee to pay the Participant's Reg.§1.401(a)(9)-9. Account in accordance with Section 4.03. Subject to Section 4.03,a Beneficiary may elect the timing and (4) Participant's account balance. The method of payment in the same manner as a account balance as of the last valuation date in the Participant may elect under Section 4.02, if such calendar year immediately preceding the distribution elections apply. calendar year(valuation calendar year) increased by the amount of any contributions made and allocated In the case of a death occurring on or after or forfeitures allocated to the account balance as of January 1, 2007, if a participant dies while dates in the valuation calendar year after the performing qualified military service (as defined in valuation date and decreased by distributions made in Code § 414(u)), the survivors of the Participant are the valuation calendar year after the valuation date, entitled to any additional benefits(other than benefit The account balance for the valuation calendar year accruals relating to the period of qualified military includes any Rollover Contributions or Transfers to service)provided under the Plan as if the participant 0 Copyright 2010 SunGard 1/10 9 OC-4057-0211 457 Governmental Plan and Trust had resumed and then terminated employment on not made or received an allocation of any Deferral account of death. Contributions under the Plan during the two-year 4.05 DISTRIBUTIONS PRIOR TO 5EYBIL- period ending on the date of distribution;and(3)the _ Participant has not received a prior distribution under ANC E FROM EMPLOYMENT Notwithstanding this Section 4.05(B), the Section 4.01 distribution restrictions, the Plan permits the following in-service distributions in (C) Distribution of Rollover Contributions. A accordance with this Section, Participant may request and receive distribution of his/her Account attributable to Rollover (A) Unforeseeable Emergency. In the event of a Contributions (but not to Transfers) before the Participant's unforeseeable emergency, the Participant has a distributable event under Section Administrative Services Provider may make a 4.01. distribution to a Participant who has not incurred a Severance from Employment. 4.06 DISTRIBUTIONS UNDER QUALIFIED DOMESTIC RELATIONS ORDERS (QDROs). An unforeseeable emergency is a severe Notwithstanding any other provision of this Plan,the financial hardship of a Participant or Beneficiary QDRO provisions will apply. The Administrative resulting from: (1) illness or accident of the Services Provider (and any Trustee) must comply Participant, the Participant's Beneficiary, or the with the terms of a QDRO, as defined in Code § Participant's spouse or dependent(as defined in Code 414(p),which is issued with respect to the Plan. § 152, and, for taxable years beginning on or after January 1,2005,without regard to Code§ 152(b)(1), (A) Time and Method of Payment. This Plan (b)(2),and (d)(I)(B)); (2) loss of the Participant's or specifically permits distribution to an alternate payee Beneficiary's property due to casualty; (3) the need under a QDRO at any time, notwithstanding any to pay for the funeral expenses of the Participant's contrary Plan provision and irrespective of whether spouse or dependent(as defined in Code§ 152, and, the Participant has attained his/her earliest retirement for taxable years beginning on or after January 1, age(as defined under Code§414(p))under the Plan. 2005,without regard to Code§ 152(b)(1),(b)(2),and Nothing in this Section 4.06 gives a Participant a (d)(1)(11)); or (4) other similar extraordinary and right to receive distribution at a time the Plan unforeseeable circumstances arising from events otherwise does not permit nor authorizes the alternate beyond the Participant's or Beneficiary's control.The payee to receive a form of payment the Plan does not Administrative Services Provider will not pay the permit. Participant or the Beneficiary more than the amount reasonably necessary to satisfy the emergency need, (B) QDRO Procedures. Upon receiving a domestic which may include amounts necessary to pay taxes or relations order, the Administrative Services Provider penalties on the distribution, The Administrative promptly will notify the Participant and any alternate Services Provider will not make payment to the payee named in the order,in writing,of the receipt of extent the Participant or Beneficiary may relieve the the order and the Plan's procedures for determining financial hardship by cessation of deferrals under the the qualified status of the order. Within a reasonable Plan, through insurance or other reimbursement, or period of time after receiving the domestic relations by liquidation of the individual's assets to the extent order, the Administrative Services Provider must such liquidation would not cause severe financial determine the qualified status of the order and must hardship. notify the Participant and each alternate payee, in writing, of the Administrative Services Provider's The Participant's Beneficiary is a person who a determination. The Administrative Services Provider Participant designates as a"primary beneficiary"and must provide notice under this paragraph by mailing who is or may become entitled to a Participant's Plan to the individual's address specified in the domestic account upon the Participant's death. relations order, A Participant's unforeseeable emergency event (C) Accounting, If any portion of the Participant's includes a severe financial hardship of the Account Balance is payable under the domestic participant's primary Beneficiary under the Plan,that relations order during the period the Administrative would constitute an emergency event if it occurred Services Provider is making its determination of the with respect to the participant's spouse or dependent qualified status of the domestic relations order, the as defined under Code§ 152, Administrative Services Provider may maintain a separate accounting of the amounts payable. If the (B) De minimis distribution, A Participant may Administrative Services Provider determines the elect to receive a distribution of his/her Account order is a QDRO within 18 months of the date where: (1) the Participant's Account (disregarding amounts first are payable following receipt of the Rollover Contributions) does not exceed $5,000 (or domestic relations order, the Administrative Services such other amount as does not exceed the Code § Provider will distribute or will direct the Trustee to 411(a)(]1)(A)dollar amount); (2) the Participant has distribute the payable amounts in accordance with the 10 1/10 DC-4057-0211 457 Governmental Plan and Trust QDRO, If the Administrative Services Provider does ("direct rollover"),may roll over all or any portion of not make its determination of the qualified status of his/her distribution to an individual retirement the order within the 1 -month determination period, account the Beneficiary establishes for purposes of the Administrative Services Provider will distribute receiving the distribution. In order to be able to roll or will direct the Trustee to distribute the payable over the distribution, the distribution otherwise must amounts in the manner the Plan would distribute if satisfy the definition of an eligible rollover the order did not exist and will apply the order distribution, prospectively if the Administrative Services Provider later determines the order is a QDRO. (1) Certain requirements not applicable. Although a non-spouse Beneficiary may roll over To the extent it is not inconsistent with the directly a distribution,commencing with distributions provisions of the QDRO,the Administrative Services after December 31, 2009, the distribution will be Provider may segregate or may direct the Trustee to subject to the direct rollover requirements of Code§ segregate the QDRO amount in a segregated 40 1(a)(3 1) (including the automatic rollover investment account. The Administrative Services provisions of Code § 401(a)(31)(13)), the notice Provider or Trustee will make any payments or requirements of Code § 402(f) and the mandatory distributions required under this Section 4.06 by withholding requirements of Code § 3405(c), If a separate benefit checks or other separate distribution non-spouse Beneficiary receives a distribution from to the alternate payee(s). the Plan,the distribution is not eligible for a"60-day" rollover. (D) Permissible QDROs.A domestic relations order that otherwise satisfies the requirements for a (2) Trust Beneficiary, If the participant's qualified domestic relations order(" DO")will not named Beneficiary is a trust, the Plan may make a fail to be a QDRO: (1) solely because the order is direct rollover to an individual retirement account on issued after, or revises, another domestic relations behalf of the trust, provided the trust satisfies the order or QDRO; or(11) solely because of the time at requirements to be a designated beneficiary within which the order is issued,including issuance after the the meaning of Code§401(a)(9)(E). annuity starting date or after the participant's death. (3) Required minimum distributions not 4.07 DIRECT ROLLOVER QF ELIGIBLE eligible for rollover.A non-spouse Beneficiary may ROLLOVER DISTRIBUTIONS — GOVERN- not roll over an amount which is a required minimum MENTAL PLAN. distribution,as determined under applicable Treasury regulations and other Revenue Service guidance. If (A) Participant Election. A Participant (including the participant dies before his/her required beginning for this purpose, a former Employee) may elect, at date and the non-spouse Beneficiary rolls over to an the time and in the manner the Administrative IRA the maximum amount eligible for rollover, the Services Provider prescribes, to have any portion of Beneficiary may elect to use either the 5-year rule or his/her eligible rollover distribution from the Plan the life expectancy rule, pursuant to Treas. Reg. § paid directly to an eligible retirement plan specified 1.401(a)(9)-3, A-4(c), in determining the required by the Participant in a direct rollover election. For minimum distributions from the IRA that receives the purposes of this election, a"Participant" includes as non-spouse Beneficiary's distribution, to their respective interests, a Participant's surviving spouse and the Participant's spouse or former spouse (D) Definitions. The following definitions apply to who is an alternate payee under a QDRO. this Section: (B) Rollover and Withholding Notice. At least 30 (1) Eligible rollover distribution. An eligible days and not more than 180 days prior to the rollover distribution is any distribution of all or any Trustee's distribution of an eligible rollover portion of a Participant's Account,except an eligible distribution, the Administrative Services Provider rollover distribution does not include: (a) any must provide a written notice (including a summary distribution which is one of a series of substantially notice as permitted under applicable Treasury equal periodic payments (not less frequently than regulations)explaining to the distributee the rollover annually)made for the life(or life expectancy)of the option, the applicability of mandatory 20% federal Participant or the joint lives (or joint life withholding to any amount not directly rolled over, expectancies)of the Participant and the Participant's and the recipient's right to roll over within 60 days designated Beneficiary, or for a specified period of after the date of receipt of the distribution("rollover ten years or more;(b)any Code§40 1(a)(9)required notice"). minimum distribution; (c) any unforeseeable emergency distribution; and (d) any distribution (C) Non-spouse Beneficiary rollover right. A non- which otherwise would be an eligible rollover spouse Beneficiary who is a"designated beneficiary" distribution, but where the total distributions to the under Code § 401(a)(9)(E) and the regulations Participant during that calendar year are reasonably thereunder, by a direct trustee-to-trustee transfer expected to be less than$200. 0 Copyright 2010 SunOard 1/10 11 OC-4057-0211 457 Governments]Plan and Trust of normal retirement age, has experienced a (2) Eligible retirement plan. An eligible Severance from Employment as a Public Safety retirement plan is an individual retirement account Officer with the Employer. described in Code§ 408(a),an individual retirement annuity described in Code § 408(b),an annuity plan (2) Public safety officer. A "Public Safety described in Code § 403(a), a qualified plan Officer"has the same meaning as in§ 1204(9)(A)of described in Code § 401(a), an annuity contract(or the Omnibus Crime Control and Safe Streets Act of custodial agreement) described in Code § 403(b),or 1968(42 U.S.C.§3796b(9)(A)). an eligible deferred compensation plan described in Code § 457(b) and maintained by an Employer (3) Qualified health Insurance premiums.The described in Code§ 457(e)(1)(A),which accepts the to "qualified health insurance premiums" means Participant's, the Participant's spouse or alternate premiums for coverage for the Eligible Retired Public payee's eligible rollover distribution. For Safety Officer,his/her spouse,and dependents,by an distributions made after December 31, 2007, a accident or health plan or qualified long-term care Participant or Beneficiary may elect to roll over insurance contract(as defined in Code§7702B(b)). directly an eligible rollover distribution to a Roth IRA described in Code§408A(b). ARTICLE V ADMINISTRATIVE SERVICES PROVIDER- (3) Direct rollover. A direct rollover is a DUTIES payment by the Plan to the eligible retirement plan specified by the distributee. 5.01 TERM/VACANCY.The Administrative Services Provider will serve until his/her successor is (4) Mandatory distribution. The appointed, In case the Employer has not appointed a Administrative Services Provider is directed to make successor Administrative Services Provider, the a mandatory distribution,which is an eligible rollover Employer will exercise any and all duties of the distribution, without the Participant's consent Administrative Services Provider pending the filling provided that the Participant's Account is less than of the vacancy. $1,000. A distribution to a Beneficiary is not a mandatory distribution. 5.02 DUTIES The Administrative Services Provider will have the following duties: (5) 401(a)(31)(B) Effective Date. The § 401(a)(31)(B) Effective Date is the date of the close (a) To create administrative forms necessary of the first regular legislative session of the for the proper and efficient administration of legislative body with the authority to amend the Plan the Plan provided the forms are not that begins on or after January 1,2006. inconsistent with the terms of the Plan; 4.08 QEQjlj2`N TO DEDUCT FROM (b) To enforce the terms of the Plan and its DISTRIBUTION. For distributions in taxable years procedures, including this document and such beginning after December 31, 2006, an Eligible other documents related to the Plan's Retired Public Safety Officer may elect annually for operation; that taxable year to have the Plan deduct an amount from a distribution which the Eligible Retired Public (c) To make, at the direction of the Safety Officer otherwise would receive and include Participant or Beneficiary or pursuant to in income.The plan will pay such deducted amounts Section 4,07(D)(4), distributions of an directly to the provider as described in Section Account; 4.08(A). (d) To review in accordance with the Plan's (A) Direct payment, The Plan will pay directly to procedures respecting a claim for(or denial of the provider of the accident or health insurance plan a claim for)a benefit under the Plan; or qualified long-term care insurance contract the amounts the Eligible Retired Public Safety Officer (e) To fumish the Employer with information has elected to have deducted from the distribution. which the Employer may require fort or Such amounts may not exceed the lesser of$3,000 or other purposes; the amount the Participant paid for such taxable year for qualified healthcare premiums, and which (f) To make distributions 'on account of otherwise complies with Code§402(1), unforeseeable emergency in accordance with the Plan's procedures; (B) Definitions. (g) To accept Deferral Contributions, (1) Eligible retired public safety officer, An Employer Contributions, and Rollover "Eligible Retired Public Safety Officer" is an Contributions; individual who, by reason of disability or attainment 12 1/10 DC4057-0211 457 Governmental Plan and Trust (h) To accept Transfers; The Administrative Services Provider will continue to allocate net income,gain and loss to a Participant's (i) To accept Participant or, in the case of a Account subject to an installment distribution, until deceased Participant, Beneficiary direction of the Account is fully distributed. investment; 5.07 AQQQUNT CHARGED The To comply with any reporting and Administrative Services Provider will charge all disclosure rules applicable to the Plan; distributions made to a Participant or to his/her Beneficiary, or transferred under Section 9.03 from (k) To make loans to Participants if elected by his/her Account, against the Account of the the Employer; Participant when made, (1) To appoint agents to act for and in 5.08 PARTICIPANT DIRECTION OF performing its third party administrative INVESTMENT. Subject to the terms and conditions services to the Plan;and required by the Administrative Services Provider and the Trustee,if any,a Participant will have the right to (m) To undertake any other action the direct the investment or re-investment of the assets Administrative Services Provider deems comprising the Participant's Account. The reasonable or necessary to provide third party Administrative Services Provider will account administrative services to the Plan, separately for the Participant-directed Accounts.The Participant's right to direct investment does not give 5,03 LOANS TO PARTICIPANTS. The the Participant any vested interest or secured or Employer may elect to permit the Administrative preferred position with respect to assets over which Services Provider and/or Trustee to make Plan loans he/she has investment responsibility. to Participants by executing a participant to program document with the Administrative Services 5.09 VESTING / SUBSTANTIAL RISK OF Provider. Any loan by the Plan to a Participant shall FORFEITUM. Each Participant's Account will be be made in compliance with Code § 72(p). If Plan immediately 100%vested, loans are permitted, the Administrative Services Provider, with the approval and direction of the 5.10 PRESERVATION OF ELIGIBLE PLAN Employer, may establish, amend or terminate from STATUS. The Employer may take any such time to time, nondiscriminatory administrative necessary and appropriate action to preserve the procedures for administering loans. Such loan status of the Plan as an Eligible 457 Plan, procedures must be a written document and must include: (1)the procedure for applying for a loan;(2) 5.11 LIMITED LIABILITY. The Employer the criteria for approving or denying a loan; (3) the will not be liable to pay plan benefits to a Participant limitations, if any,on the types and amounts of loans in excess of the value of the Participant's Account as available; and (4)the events constituting default and the Administrative Services Provider determines in the steps the Plan will take to preserve Plan assets in accordance with the Plan terms. The Employer, the the event of default. Any administrative procedures Administrative Services Provider,or the Trustee will adopted under this Section 5.03 shall be construed as not be liable for losses arising from depreciation or part of the Plan. shrinkage in the value of any investments acquired under this Plan. 5.04 INDIVIDUAL ACQOUNT� / RECORDS. The Administrative Services Provider will maintain a 5.12 LOST PARTICIPANTS, If the separate Account in the name of each Participant to Administrative Services Provider is unable to locate reflect the value of the Participant's Deferred any Participant or Beneficiary whose Account Compensation under the Plan. becomes distributable (a "lost Participant"), the Administrative Services Provider will apply the 5.05 VALUE OF PARTICIPANT'S provisions of this Section 5.12. ACCOUNT.'Me value of each Participant's Account consists of his/her accumulated Deferred (A) Attempt to Locate.The Administrative Services Compensation, as of the most recent Accounting Provider will attempt to locate a lost Participant and Date or any later date as the Administrative Services may use one or more of the following methods: (1) Provider may determine. provide a distribution notice to the lost Participant at his/her last known address by certified or registered 5.06 ALLOCATION OF hMT INCOME.GAIN mail;(2)use the IRS letter forwarding program under OR LOSS As of each Accounting Date (and each Rev. Proc. 94-22, (3) use a commercial locator other valuation date determined under Section 5,04), service, the internet or other general search method; the Administrative Services Provider will adjust (4) use the Social Security Administration or PBGC Accounts to reflect net income, gain or loss, if any, search program;or(5)use such other methods as the since the last Accounting Date or Account valuation. Administrative Services Provider believes prudent. 0 Copyright 2010 SunGard wo 13 DC-4057-0211 457 Governmental Plan and Trust designation of Beneficiary and,upon the Participant's (B) Failure to Locate. If a lost Participant is not filing the form with the Administrative Services located after 6 months following the date the Provider,the form revokes all designations filed prior Administrative Services Provider first attempts to to that date by the same Participant. Provided the locate the lost Participant using one or more of the Administrative Services Provider has been provided methods described in Section 5.12(A), the reasonable notice thereof, a divorce decree, or a Administrative Services Provider may employ the decree of legal separation, revokes the Participant's unclaimed property processes of the state of the lost designation, if any, of his/her spouse as his/her Participant's last known address. Neither the Beneficiary under the Plan unless:(a)the decree or a Administrative Services Provider nor the Trustee QDRO provides otherwise;or(b)the Participant has shall be responsible for restoring the Account re-designated his/her former spouse as Beneficiary (including potential gains) if a lost Participant whose following the date of the divorce decree, or other Account was deposited with a state later makes a decree of legal separation. The foregoing revocation claim for his/her Account. provision (if applicable) applies only with respect to a Participant whose divorce or legal separation (C) Nonexclusivity and Uniformity.The provisions becomes effective on or following the date the of this Section 5.12 are intended to provide Employer executes the Plan. permissible but not exclusive means for the Administrative Services Provider to administer the 6.02 NO BENEFICIARY DESIGNATION Accounts of lost Participants, The Administrative If a Participant falls to name a Beneficiary in Services Provider may utilize any other reasonable accordance with Section 6.01, or if the Beneficiary method to locate lost Participants and to administer named by a Participant predeceases the Participant, the Accounts of lost Participants, including such then the Administrative Services Provider will pay methods as the Revenue Service or other regulatory the Participant's remaining Account to the agency may in the future specify.The Administrative Participant's estate. Services Provider will apply Section 5.12 in a reasonable manner,but may in determining a specific If the Beneficiary survives the Participant, but course of action as to a particular Account, dies prior to distribution of the Participant's entire reasonably take into account differing circumstances Account,the Trustee will pay the remaining Account such as the amount of a lost Participant's Account, to the Beneficiary's estate unless: (1) the the expense in attempting to locate a lost Participant, Participant's Beneficiary designation provides the Administrative Services Provider's ability to otherwise; or (2) the Beneficiary has properly establish and the expense of establishing a rollover designated a Beneficiary. A Beneficiary only may IRA,and other factors. The Administrative Services designate a Beneficiary for the Participant's Account Provider may charge to the Account of a lost Balance remaining at the Beneficiary's death,and the Participant the reasonable expenses incurred under Beneficiary's designation otherwise complies with this Section 5.12 and which are associated with the the Plan terms. The Administrative Services lost Participant's Account. Provider will direct a Trustee if applicable as to the method and to whom the Trustee will make payment 5.13 PLAN CORRECTION. The under this Section 6.02. Administrative Services Provider, as directed by the Employer, may undertake such correction of Plan 6.03 PARTICIPATION AQREEMENT. errors as the Employer deems necessary, including but not limited to correction to maintain the Plan's (A) General. A Participant must elect to make status as an "eligible deferred compensation plan" Salary Reduction Contributions on a Participation under the Code. Agreement form the Administrative Services Provider provides for this purpose, The Participation ARTICLE VI Agreement must be consistent with the procedures of PARTICIPANT ADMINISTRATIVE the Administrative Services Provider, The PROVISIONS Participation Agreement may impose such other terms and limitations as the Employer or 6.01 BENEFICIARY DESIGNATION. A Administrative Services Provider may determine. Participant from time to time may designate, in writing, any person(s) (including a trust or other (B) Election Timing. A Participation Agreement entity), contingently or successively, to whom the may not take effect earlier than the first day of the Administrative Services Provider or Trustee will pay calendar month following the date the Participant the Participant's Account (including any life executes the Participation Agreement and as to insurance proceeds payable to the Participant's Compensation paid or made available in such Account) in the event of death. A Participant also calendar month.However, if an Employee is eligible may designate the method of payment of his/her to become a Participant during the Employee's Account, The Administrative Services Provider will calendar month of hire,the Employee may execute a prescribe the form for the Participant's written Participation Agreement on or before the date he/she 14 ino DC-4057-0211 457 Governmental Plan and Trust becomes an Employee, effective for the month in Plan distribution is not able to care for his/her affairs which he/she becomes an Employee, because of a mental condition, a physical condition, or by reason of age, the Administrative Services (C) Sick,Vacation and Back Pay. If the Employer Provider or the Trustee may make the distribution to adopts a policy that permits Participants to make the Participant's or- Beneficiary's guardian, Salary Reduction Contributions from accumulated conservator, trustee, custodian (including under a sick pay, from accumulated vacation pay or from Uniform Transfers or Gifts to Minors Act) or to back pay, a Participant who will incur a Severance his/her attorney-in-fact or to other legal from Employment may execute a Participation representative upon furnishing evidence of such Agreement before such amounts are paid or made status satisfactory to the Administrative Services available provided:(i)such amounts are paid or made Provider and to the Trustee. The Administrative available before the Participant incurs the Severance; Services Provider and the Trustee do not have any and(ii)the Participant is an Employee in that month. liability with respect to payments so made and neither the Administrative Services Provider nor the (D) Modification of Participation Agreement, A Trustee has any duty tomake inquiry as to the Participation Agreement remains in effect until a competence of any person entitled to receive Participant modifies it or ceases to be eligible to payments under the Plan. participate in the Plan. A Participant may modify his/her Participation Agreement by executing a new ARTICLE Vill Participation Agreement. Any modification will MISCELLANEOUS become effective no earlier than the beginning of the calendar month commencing after the date the 7.01 h!O ASSIGNMENT QR ALIENATION.A Participant executes the new Participation Participant or Beneficiary does not have the right to Agreement. Filing a new Participation Agreement commute, sell, assign, pledge, transfer or otherwise will revoke all Participation Agreements filed prior to convey or encumber the right to receive any that date. The Employer or Administrative Services payments under the Plan or Trust and the Provider may restrict the Participant's right to modify Administrative Services Provider and the Trustee will his/her Participation Agreement in any Taxable Year, not recognize any such anticipation, assignment, or alienation. The payments and the rights under this 6.04 PERSONAL DATA !Q ADMTN- Plan are non-assignable and nontransferable,Subject ISTRATIVE SERVICES PROVIDER. Each to Section 8.15, a Participant's or Beneficiary's Participant and each Beneficiary of a deceased interest in the Trust is not subject to attachment, Participant must furnish to the Administrative garnishment, levy, execution or other legal or Services Provider such evidence,data or information equitable process. as the Administrative Services Provider considers necessary or desirable for the purpose of 7.02 EFFECT ON OTHER PLANS.This Plan administering the Plan. The provisions of this Plan does not affect benefits under any other retirement, are effective for the benefit of each Participant upon pension,or benefit plan or system established for the the condition precedent that each Participant will benefit of the Employer's Employees, and furnish promptly full, true and complete evidence, participation under this Plan does not affect benefits data and information when requested by the receivable under any such plan or system, except to Administrative Services Provider, provided the the extent provided in such plan or system. Administrative Services Provider advises each Participant of the effect of his failure to comply with 7.03 WORD USAGE. Words used in the its request. masculine will apply to the feminine where applicable, and wherever the context of the Plan 6.05 ADDRESS FOR NOTIFICATION. Each dictates,the plural will be read as the singular and the Participant and each Beneficiary of a deceased singular as the plural. Participant must file with the Administrative Services Provider from time to time, in writing, his/her 7.04 STATE LAW.The laws of the state of the address and any change of address. Any Employer's principal place of business will communication, statement or notice addressed to a determine all questions arising with respect to the Participant, or Beneficiary, at his/her last address provisions of this Prototype Plan,except to the extent filed with the Administrative Services Provider,or as Federal law supersedes State law. shown on the records of the Employer, binds the Participant, or Beneficiary, for all purposes of this 7.05 EMPLOYMENT NOT gIJA TF,131). Plan. Nothing contained in this Plan, or any modification or amendment to the Plan, or in the 6.06 PARTICIPANT OR BENEFICIARY IN- creation of any Account, or the payment of any CAPACITATED. If evidence is submitted to the benefit, gives any Employee, Participant or Administrative Services Provider which supports an Beneficiary any right to continue employment, any opinion that a Participant or Beneficiary entitled to a legal or equitable right against the Employer, the 0 Copyright 2010 SunGard 1/10 15 DC-4057-0211 457 Governmental Plan and Trust Administrative Services Provider, the Trustee, any other Employee of the Employer, or any agents 8.02 ACCEPTANCE The thereof except as expressly provided by the Plan. Trustee accepts the Trust created under the Plan and agrees to perform the duties and obligations imposed, 7.06 NOTICE, DESIGNAT19N, ELECTION, The Trustee must hold in trust under this Article VIII, CONSENT AND WAIVER. All notices under the all Deferred Compensation until paid in accordance Plan and all Participant or Beneficiary designations, with the Plan terms. elections,consents or waivers must be in writing and made in a form acceptable to the Administrative 8.03 RECEIPT OF CONTRIBUTIONS. The Services Provider. To the extent permitted by Trustee is accountable to the Employer for the funds Treasury regulations or other applicable guidance, contributed to it by the Employer or the any Plan notice, election, consent or waiver may be Administrative Services Provider, but the Trustee transmitted electronically. Any person entitled to does not have any duty to see that the contributions notice under the Plan may waive the notice or shorten received comply with the provisions of the Plan. the notice period except as otherwise required by the Code. 8.04 FULL MEST POWERS. 'Me Trustee is authorized and empowered,but not by way 7.07 LIMITATIONS ON TRANSFERS AND of limitation, to exercise and perform the following EXCHANGES, The Employer and the duties: Administrative Services Provider may adopt procedures to govern Participant elections and (a) To invest any part or all of the Trust in directions concerning a Participant's, Beneficiary's, any common or preferred stocks,open-end or closed- or Alternate Payee's investment specifications and end mutual funds, put and call options traded on a may impose limitations on transfers and exchanges national exchange, United States retirement plan from one investment option with the Plan to another, bonds, corporate bonds, debentures, convertible These procedures shall be in addition to any debentures, commercial paper, U. S. Treasury bills, established by investment providers to the Plan. The U. S. Treasury notes and other direct or indirect Employer and the Administrative Services Provider obligations of the United States Government or its may decline to implement any investment agencies,improved or unimproved real estate situated instructions for a Participant, Beneficiary, or in the United States, limited partnerships, insurance Alternate Payee where either deems appropriate. contracts of any type, mortgages, notes or other property of any kind, real or personal, and to buy or 7.08 EMPLOYER RESPONSIBILIEL—ffiR sell options on common stock on a nationally DISTRIBUTION OF PLAN R11LATED recognized options exchange with or without holding INFORMATION, The Employer will distribute all the underlying common stock, as a prudent person Plan related amendments, restated plan documents, would do under like circumstances. Any investment and deferred compensation plan tax related made or retained by the Trustee in good faith will be documentation to the Administrative Service proper but must be of a kind constituting a Providers when there are multiple Administrative diversification considered by law suitable for trust Service Providers of the Plan. investments; 7.09 USE OF PLAN ASSETS THAT ARE (b) To retain in cash so much of the Trust as NOT ATTRIBUTABLE TO AN ACCOUNT. If the it may deem advisable to satisfy liquidity needs of the Plan receives money that is not attributable to an Plan and to deposit any cash held in the Trust in a Account, then the Employer will direct the bank account at reasonable interest; Administrative Services Provider as to the use of these amounts. Examples include,but are not limited (c) To invest, if the Trustee is a bank or to, money received by the Plan as part of a similar financial institution supervised by the United settlement, litigation award or fee reimbursement. States or by a State, in any type of deposit of the The Employer may use these amounts to offset Plan Trustee (or a bank related to the Trustee within the expenses or may allocate these amounts to meaning of Code §414(b)) at a reasonable rate of Participants or as it deems appropriate interest or in a common trust fund as described in Code §584, or in a collective investment fund, the provisions of which the Trust incorporates by this ARTICLE Vill reference, which the Trustee (or its affiliate, as TRUST PROVISIONS defined in Code§1504)maintains exclusively for the collective investment of money contributed by the 8.01 APPLICATION.The provisions of bank (or its affiliate) in its capacity as Trustee and this Article Vill apply only if the Employer has not which conforms to the rules of the Comptroller of the elected to substitute another trust, custodial accounts Currency; or annuity contracts in lieu of the Trust established under this Article Vill. 16 1/10 DC-4057-0211 457 Governmental Plan and Trust (d) To manage, sell, contract to sell, grant options to purchase, convey, exchange, transfer, (n) To furnish to the Employer and the abandon, improve, repair, insure, lease for any to Administrative Services Provider an annual statement even though commencing in the future or extending of account showing the condition of the Trust and all beyond the term of the Trust,and otherwise deal with investments, receipts, disbursements and other all property, real or personal, in such manner, for transactions effected by the Trustee during the Plan such considerations and on such terms and conditions Year covered by the statement and also stating the as the Trustee decides; assets of the Trust held at the end of the Plan Year, which accounts will be conclusive on all persons, (e) To credit and distribute the Trust as including the Employer and the Administrative directed by the Administrative Services Provider of Services Provider,except as to any act or transaction the Plan.The Trustee will not be obliged to inquire as conceming which the Employer or the to whether any payee or distributee is entitled to any Administrative Services Provider files with the payment or whether the distribution is proper or Trustee written exceptions or objections within 90 within the terms of the Plan, or as to the manner of days after the receipt of the accounts;and making any payment or distribution.The Trustee will be accountable only to the Administrative Services (o) To begin, maintain or defend any Provider for any payment or distribution made by it litigation necessary in connection with the in good faith on the order or direction of the administration of the Trust, except that the Trustee Administrative Services Provider; will not be obliged or required to do so unless (f) To borrow money, to assume 8.05 RECORDS AND STATEMENTS. The indebtedness, extend mortgages and encumber by records of the Trustee pertaining to the Trust will be mortgage or pledge; open to the inspection of the Employer at all reasonable times and may be audited from time to (g) To compromise, contest, arbitrate or time by any person or persons as the Employer may abandon claims and demands; specify in writing. The Trustee will furnish the Administrative Services Provider whatever (h) To have with respect to the Trust all of information relating to the Trust the Administrative the rights of an individual owner,including the power Services Provider considers necessary, to exercise any and all voting rights associated with Trust assets, to give proxies, to participate in any 8.06 FEES AND EXPENSES FROM FUND voting trusts,mergers, consolidations or liquidations, The Trustee will receive reasonable annual to tender shares and to exercise or sell stock compensation in accordance with its fee schedule as subscriptions or conversion rights; published from time to time, The Trustee will pay from the Trust all fees and expenses the Trustee (i) To lease for oil, gas and other mineral reasonably incurs in its administration of the Trust, purposes and to create mineral severances by grant or unless the Employer pays the fees and expenses. reservation; to pool or unitize interest in oil,gas and other minerals; and to enter into operating 8.07 PROFESSIONAL AGENTS.The Trustee agreements and to execute division and transfer may employ and pay from the Trust reasonable orders; compensation to agents, attorneys, accountants and other persons to advise the Trustee as in its opinion 0) To hold any securities or other property may be necessary. The Trustee may delegate to any in the name of the Trustee or its nominee, with agent, attorney, accountant or other person selected depositories or agent depositories or in another form by it any non-Trustee power or duty vested in it by as it may deem best, with or without disclosing the the Trust, and the Trustee may act or refrain from trust relationship; acting an the advice or opinion of any agent, attorney,accountant or other person so selected. (k) To perform any and all other acts in its judgment necessary or appropriate for the proper and 8.08 DISTRIBUTION QF GASH QR advantageous management, investment and PROPE&TY, The Trustee may make distribution distribution of the Trust; under the Plan in cash or property,or partly in each, at its fair market value as determined by the Trustee. (1) To retain any funds or property subject to any dispute without liability for the payment of 8.09 RESIGNATION AND REMOVAL. The interest,and to decline to make payment or delivery Trustee or the Custodian may resign its position by of the funds or property until a court of competent giving written notice to the Employer and to the jurisdiction makes a final adjudication; Administrative Services Provider. The Trustee's notice must specify the effective date of the Trustee's (in) To file all tax returns required of the resignation, which date must be at least 30 days Trustee; 0 Copyright 2010 SunGord i/io 17 OC-4057-0211 457 Governmental Plan and Trust following the date of the Trustee's notice, unless the impose such conditions, limitations and other Employer consents in writing to shorter notice, provisions as the Trustee may deem appropriate and as are consistent with the Administrative Services The Employer may remove a Trustee or a Provider's policy. The Trustee will report to the Custodian by giving written notice to the affected Administrative Services Provider the net income, party. The Employer's notice must specify the gain or losses incurred by each Participant directed effective date of removal which date must be at least Account separately from the net income, gain or 30 days following the date of the Employer's notice, losses incurred by the general Trust during the Trust except where the Employer reasonably determines a Year, shorter notice period or immediate removal is necessary to protect Plan assets. 8.13 THIRD PARTY RELIANCE No person dealing with the Trustee will be obliged to see to the 8.10 SUCCESSOR TRUSTEE, proper application of any money paid or property delivered to the Trustee, or to inquire whether the (A) Appointment.In the event of the resignation or Trustee has acted pursuant to any of the terms of the the removal of a Trustee, where no other Trustee Trust. Each person dealing with the Trustee may act continues to service, the Employer must appoint a upon any notice, request or representation in writing successor Trustee if it intends to continue the Plan.If by the Trustee, or by the Trustee's duly authorized two or more persons hold the position of Trustee, in agent, and will not be liable to any person the event of the removal of one such person, during whomsoever in so doing. The certificate of the any period the selection of a replacement is pending, Trustee that it is acting in accordance with the Trust or during any period such person is unable to serve will be conclusive in favor of any person relying on for any reason, the remaining person or persons will the certificate. act as the Trustee. If the Employer fails to appoint a successor Trustee as of the effective date of the 8.14 MALIDITY QF ANY TRUST Trustee resignation or removal and no other Trustee PROVISION. If any clause or provision of this remains, the Trustee will treat the Employer as Article Vill proves to be or is adjudged to be invalid having appointed itself as Trustee and as having filed or void for any reason,such void or invalid clause or the Employer's acceptance of appointment as provision will not affect any of the other provisions successor Trustee with the former Trustee. of this Article Vill and the balance of the Trust provisions will remain operative, (B) Automatic Successor. Any corporation which succeeds to the trust business of the Trustee, or 8.15 EXCLUSIVE BENEFIT The Trustee will results from any merger or consolidation to which the hold all the assets of the Trust for the exclusive Trustee is a party,or is the transferee of substantially benefit of the Participants and their Beneficiaries and all the Trustee's assets, will be the successor to the neither the Employer nor the Trustee will use or Trustee under this Trust. The successor Trustee will divert any part of the corpus or income of the Trust possess all rights,duties and powers under this Trust for purposes other than the exclusive benefit of the as if the successor Trustee were the original Trustee. Participants and Beneficiaries of the Plan. The Neither the Trustee nor the successor Trustee need Employer will not have any right to the assets held by provide notice to any interested person of any the Trustee and the Trust assets will not be subject to transaction resulting in a successor Trustee. The the claims of the Employer's creditors or, except as successor Trustee need not file or execute any provided in Section 4.06, of the creditors of any additional instrument or perform any additional act to Participant or Beneficiary, No Participant or become successor Trustee. Beneficiary shall have any right to sell, assign, transfer or otherwise convey his/her Account or any 8.11 VALUATION OF TRUST. The Trustee interest in his/her Deferred Compensation. will value the Trust as of each Accounting Date to Notwithstanding the foregoing, the Administrative determine the fair market value of the Trust assets. Services Provider may pay from a Participant's or The Trustee will value the Trust on such other date(s) Beneficiary's Account the amount the Administrative the Administrative Services Provider may direct. Services Provider finds is lawfully demanded under a levy issued by the Internal Revenue Service with 8.12 PARTICIPANT DIRECTION OF respect to that Participant or Beneficiary or is sought INVESTMENT. Consistent with the Administrative to be collected by the United States Government Services Provider's policy adopted under Section under a judgment resulting from an unpaid tax 5.02(l),the Trustee may consent in writing to permit assessment against the Participant or Beneficiary. Participants in the Plan to direct the investment to the The Trust created under the Employer's Plan is Trust assets. The Administrative Services Provider irrevocable and its assets will not inure to the benefit will advise the Trustee of the portion of the Trust of the Employer. credited to each Participant's Account under the Plan, and subject to such Participant direction, As a 8.16 SUBSTITUTION OF CUSTODIAL condition of Participant direction, the Trustee may ACCOUNT OR _AhEW= CONTRACT. The Is I110 DC-4057-0211 457 Governmental Plan and Trust Employer may elect to use one or more custodial amendments are necessary to continue the Plan as an accounts or annuity contracts in lieu of or in addition Eligible 457 Plan. to the Trust established in this Article V111.Any such custodial account or annuity contract must satisfy the 9.02 TERMINATION I FREEZING OF requirements of Code §457(g)(3) and applicable PLAN. The Employer has the right, at any time, to Treasury regulations. terminate this Plan or to cease (freeze) further Deferral Contributions to the Plan.Upon termination 8.17 GROUP TRUST AUTHORITY. Not- or freezing of the Plan, the provisions of the Plan withstanding any contrary provision in this Plan, the (other than provisions permitting continued Deferral Trustee may, unless restricted in writing by the Contributions) remain operative until distribution of Administrative Services Provider, transfer assets of all Accounts. Upon Plan termination, the the plan to a group trust that is operated or Administrative Services Provider or Trustee shall maintained exclusively for the commingling and distribute to Participants and Beneficiaries all collective investment of monies provided that the Deferred Compensation as soon as is reasonably funds in the group trust consist exclusively of trust practicable following termination. assets held under plans qualified under Code section 401(a), individual retirement accounts that are 9.03 196haF-ERS. The Plan: (a)may accept exempt under Code section 408(e), and eligible a Transfer of a Participant's Account in another governmental plans that meets the requirements of employer's Eligible 457 Plan, or(b) may Transfer a Code section 457(b). For this purpose, a trust Participant's (or Beneficiary's) Account in this Plan includes a custodial account that is treated as a trust to the another employer's Eligible 457 Plan. The under Code section 401(o or under Code section other plan involved in the Transfer must provide for 457(g)(3),For purposes of valuation,the value of the Transfers. The Participant or Beneficiary, after the interest maintained by the Plan in such group trust Transfer will have Deferred Compensation in the shall be the fair market value of the portion of the recipient plan at least equal to his/her Deferred group trust held for Plan, determined in accordance Compensation in the transferring plan immediately with generally recognized valuation procedures. before the Transfer, Any Transfer also must comply with applicable Treasury regulations, and in ARTICLE IX particular Trees. Reg. §§1,457-10(b)(2) as to post- AMENDMENT,TERMINATION,TRANSFERS severance transfers between Eligible 457 Plans; 1.457-10(b)(3) as to transfers of all assets between 9.01 AMENDMENT BY EMPLOYER Eligible 457 Plans;and 1.457-10(b)(4)as to transfers SPONSOR. The Employer has the right at any time between Eligible 457 Plans of the same Employer. and from time to time: The Administrative Services Provider will credit any Transfer accepted under this Section 9.03 to the (a) To amend this Plan and Trust Agreement in Participant's Account and will treat the transferred any manner it deems necessary or advisable in order amount as a Deferral Contribution for all purposes of to continue the status of this Plan as an Eligible 457 this Plan except such Transfer will not be treated as a Plan;and Deferral Contribution subject to the limitations of Article 111. The Plan's Transfer of any Participant's (b) To amend this Plan and Trust Agreement in or Beneficiary's Account under this Section 9.03 any other manner, including deletion, substitution or completely discharges the Employer, the modification of any Plan or Trust. Administrative Services Provider,the Trustee and the Plan from any liability to the Participant or The Employer must make all amendments in Beneficiary for any Plan benefits. writing, The Employer may amend the Plan by addenda, by separate amendment, or by restatement 9.04 PURCHASE OF PERMISSIVE of the Plan. Each amendment must state the date to SERVICE CREDIT A Participant,prior to otherwise which it is either retroactively or prospectively incurring a distributable event under Article IV,may effective. The Employer also may not make any direct the Trustee to transfer(as of January 1,2002, amendment that affects the rights, duties or or later) all or a portion of his/her Account to a responsibilities of the Trustee or the Administrative governmental defined benefit plan (under Code Services Provider without the written consent of the §414(d)) for (a) the purchase of permissive service affected Trustee or the Administrative Services credit (under Code §415(n)(3)(A)) under such plan, Provider. or (b) the repayment of contributions and earnings previously refunded with respect to a forfeiture of The Employer will accept amendments from service credited under the plan (or under another the Administrative Services Provider (including governmental plan within the same State) to which adoption of a substitute Plan and Trust)without being Code §415 does not apply by reason of Code required to re-execute the Plan, provided that the §415(k)(3). 0 Copyright 2010 SunGard 1/10 19 OC-4057-0211 457 GavernmentnI Plan and Trust IN WITNESS WHEREOF,the undersigned has executed this Plan and Trust to become effective the *n— day of 5 CF-P T ZM 6 E'er 20 15for the: n_,)AtL #454S 5UfiPL"GhjENWl`E_ S A%Cy WjC*L ?&AgssA (Plan Name) By: (signature) (printed name) gA7tU-Mvr 1146-Cirvit y q.4,5 a 3 (titictrole) 20 1/10 DC-4057.0211 ...............