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EXHIBIT 4 (d)
ADM
EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
(As Amended and Restated Effective April 1, 1998)
ARTICLE I
INTRODUCTION
1.1 Plan; Purpose. The ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES is sponsored by the Company
primarily to provide Eligible Employees with a means to
acquire an ownership interest in the Company, and also
to provide Eligible Employees with a means to save for
their retirement.
1.2 Qualified Stock Bonus and Employee Stock Ownership
Plan.
The Plan is a defined contribution plan that is
intended to qualify under Code 401(a). The portion of
the Plan that consists of the ESOP Subaccounts is a
stock bonus and employee stock ownership plan (within
the meaning of Code
4975(3)(7)) that was established effective April 1,
1998,
and is designed to invest in Company Stock; the portion
of the Plan that consists of the Non-ESOP Subaccounts
(other than Predecessor Plan Subaccounts) is a stock
bonus plan to which contributions were discontinued
effective April 1, 1988, and which is also designed to
invest in Company Stock; and the portion of the Plan
that consists of the Predecessor Plan Subaccounts
reflect account balances transferred from other plans
(as a result of a merger or account transfer) which
will retain the status of the Predecessor Plan.
The employee stock ownership portion of the Plan
includes a cash or deferred arrangement that is
intended to qualify under Code 401(k).
1.3 Plan Document. The Plan document consists of this
document, the various appendices to this document, the
List of Participating Employers for the Plan, the List
of Participating Locations for the Plan, the List of
Predecessor Employers for the Plan, the List of
Predecessor Plan Subaccounts for the Plan and any
document that is expressly incorporated by reference
into the Plan.
1.4 Effective Date of Document. The Plan (as amended and
restated in this document) is effective April 1, 1998.
ARTICLE II
DEFINITIONS AND CONSTRUCTION
2.1 Definitions.
2.1.1 "Account" means the
bookkeeping account maintained to reflect the
Participant's interest in the Trust Fund.
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2.1.2 "Active Participant" means an
Eligible
Employee who has become and remains an Active
Participant under Article III.
2.1.3 "Affiliate" means any
corporation that is
a member of the same controlled group as the
Company as defined in Code 414(b), any business
entity that is under common control with the
Company as defined in Code 414(c), any business
entity that is a member of an affiliated service
group with the Company as defined in Code
414(m), or any other business entity that is
required to be aggregated and treated as one
employer with the Company under Code 414(o).
For purposes of applying the limits of Code
415, Code 414(b) and 414(c) will be applied as
modified by Code 415(h).
2.1.4 "Annual Addition" means any of
the
following amounts credited to the Participant as
of any date within the Plan Year:
(a) Employee after-tax contributions credited under
any
defined contribution plan maintained by the
Company or an Affiliate (but not rollover
contributions);
(b) Employer contributions credited under any
defined contribution plan or simplified
employee pension plan maintained by the
Company or an Affiliate, including Before-
Tax Contributions credited under this Plan
(including excess contributions distributed
under Sec. 6.2, but not including excess
deferrals distributed under Sec. 6.1), and
Matching and Non-Matching Contributions
credited under this Plan (including excess
contributions distributed under Sec. 6.2);
(c) Forfeitures credited under any defined
contribution plan maintained by the Company
or an Affiliate;
(d) Amounts credited to any individual medical
benefit account (as described in Code
415(l)(2)) under any defined benefit plan
maintained by the Company or an Affiliate,
provided that, such amounts will be
disregarded in applying the twenty-five
percent (25%) of compensation limit under
Code 415(c)(1)(B); and
(e) Amounts credited to any separate account
for retiree medical benefits (as described
in Code 419A(d)(2)) on behalf of any Key
Employee under any welfare benefit fund
maintained by the Company or an Affiliate.
Any contrary provision notwithstanding, employer
contributions under this Plan that are applied
to pay interest on an Exempt Loan will not be an
Annual Addition if no more than one-third (1/3)
of the employer contributions under this Plan
that are applied to pay principal or interest on
an Exempt Loan for the Plan Year are allocated
to Participants who are Highly Compensated
Employees.
2.1.5 "Before Tax Contribution"
means a
contribution made pursuant to Sec. 4.1.
2.1.6 "Beneficiary" means a person
or persons
designated as such pursuant to Sec. 12.4.
2.1.7 "Certified Earnings" means the total
compensation paid
to an Active Participant by a Participating
Employer during that portion of the Plan Year in
which he/she is an Active
Participant, subject to the following:
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(a) Specific Inclusions. Certified Earnings
includes:
(1) Before-Tax Contributions to
this Plan (and
any contributions made by pay
reduction to any other qualified cash
or deferred arrangement that forms
part of a Plan maintained by the
Company or an Affiliate), and
contributions made by pay reduction to
the ADM Flexible Spending Plan (or any
other cafeteria plan (as defined in
Code 125) maintained by the Company
or an Affiliate).
(2) Overtime pay, vacation pay,
holiday pay,
pay for jury duty and lump-sum
payments in lieu of pay increases.
(3) Sick pay or short-term
disability payments
paid directly by a Participating
Employer (not including any amounts
paid by an insurance carrier under an
insured disability program).
(b) Specified Exclusions. Certified Earnings does
not
include bonuses, expense allowances or
reimbursements, severance pay, payments or
contributions to or for the benefit of an
individual under any other deferred
compensation, pension, profit sharing,
insurance, or other employee benefit plan
(except as expressly provided above), stock
options, stock appreciation rights or cash
payments in lieu thereof, merchandise or
service discounts, non-cash employee
awards, earnings payable in a form other
than cash, or other fringe benefits.
(c) Special Rule for Foreign Assignments. Certified
Earnings for persons working outside the
United States is limited to base
compensation as so characterized on the
payroll system of the Company and does not
include any extra or added compensation due
to the foreign assignment (such as
relocation allowance, education allowance,
or other reimbursements or allowances) and,
in the case of an Employee who is working
for an eligible foreign affiliate, will not
include any amount paid by the Company that
is the equivalent of the tax imposed under
Code 3101.
(d) Special Rule for Commissions. Certified
Earnings include commissions when paid and
not when earned.
(e) Code Section 401(a)(17) Limit. Certified
Earnings do not include any amounts in
excess of the limit in effect under Code
401(a)(17) for any Plan Year.
2.1.8 "Code" means the Internal
Revenue Code of
1986, as amended.
2.1.9 "Company" means Archer Daniels
Midland
Company.
2.1.10 "Company Stock" means common
stock of the
Company.
2.1.11 "Eligible Employee" means the
following:
(a) General Rule. An Eligible Employee is an
Employee who
satisfies the following criteria:
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(1) The Employee is paid on an hourly wage
basis, or is paid on a regular salary
basis but is classified by the Company
as an hourly wage employee because
he/she is a non-supervisory employee
serving on a barge.
(2) The Employee is employed with a
Participating Employer (while it is a
Participating Employer) at a
Participating Location (while it is a
Participating Location).
(3) The Employee is not excluded under any
one of the following categories:
(A) Any individual who is
compensated on an
hourly wage basis, but is
eligible to participate in the
ADM Employee Stock Ownership
Plan for Salaried Employees.
(B) Any individual who is
classified as a
probationary or temporary
employee by the Company.
(C) Any individual who is
classified as an
independent contractor, or as
having any status other than a
common-law employee, by the
Company (regardless of whether
such individual is
subsequently determined to be
a common-law employee or an
employee for any other
purpose).
(D) Any individual who is a
citizen or
resident of a foreign country
unless the Company expressly
extends eligibility to such
individual, such individual
does not receive
contributions under any
funded plan of deferred
compensation in a foreign
country, and such individual
is on the payroll system of
the Company or an Affiliate
in the United States.
(E) Any individual who is a
Leased Employee
with respect to the Company
or an Affiliate.
(b) Collective Bargaining Employees. An
Employee is not an Eligible Employee during
any period he/she is a member of a unit of
Employees covered by a collective
bargaining agreement unless the agreement
expressly provides that he/she is eligible
to participate in this Plan. For this
purpose, a collective bargaining agreement
will be deemed to continue in effect after
it expires during the pendency of
collective bargaining negotiations until
the parties have negotiated to "impasse" as
determined by the Company, and an Employee
thereafter will be an Eligible Employee if
and only if participation is part of the
impasse proposal of the Company or the
Employee was an Eligible Employee before
the collective bargaining agreement expired
and the Company elects to continue such
status.
(c) Authorized Leaves of Absence. An Employee will
continue as an Eligible Employee during any
authorized
and paid leave of absence if he/she was an
Eligible Employee prior to the start of
such leave until Termination of Employment
or the happening of any event that would
have caused the Employee to cease to be an
Eligible Employee if he/she had not been on
a leave of absence (e.g., if his/her
employer ceases to be a Participating
Employer).
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2.1.12 "Employee" means any common-
law employee
of the Company or an Affiliate (while it is an
Affiliate) and any Leased Employee with respect
to the Company or an Affiliate; provided that, a
Leased Employee will not be an Employee if
Leased Employees do not constitute more than
twenty percent (20%) of the combined workforce
of the Company and Affiliates and the Leased
Employee is covered by a plan of the leasing
organization that is described in Code
414(n)(5).
An individual who is employed by an eligible
foreign affiliate and who is a citizen or
resident of the United States will be treated as
an Employee of the Company for the period of
his/her employment with the eligible foreign
affiliate provided the individual does not
receive contributions under any funded plan of
deferred compensation with respect to
remuneration received from the eligible foreign
affiliate. An "eligible foreign affiliate" is
any foreign entity that satisfies the following
requirements: (i) ten percent (10%) or more of
the voting stock or profits interest of the
foreign entity is owned by the Company or a
domestic Affiliate of the Company, and (ii) the
Company has entered into an agreement under Code
3121(l) that applies to individuals employed by
that foreign entity who are citizens or
residents of the United States.
2.1.13 "ERISA" means the Employee
Retirement
Income Security Act of 1974, as amended.
2.1.14 "Exempt Loan" means a loan or
other
extension of credit to the Plan to enable the
Plan to acquire shares of Company Stock.
2.1.15 "Highly Compensated Employee"
means an
Employee who was a five-percent owner (as
defined in Code 414(q)(2)) at any time during
the prior Plan Year or current Plan Year, or an
Employee who received compensation in excess of
the amount in effect under Code 414(q)(1)(A) for
the prior Plan Year, with "compensation" for
this purpose meaning compensation as defined in
Sec. 6.3.3.
2.1.16 "Hour of Service" means each
of the
following (but in no event will duplicate credit
be given for the same hour under more than one
subsection):
(a) Work Periods. Each hour for which the
individual is paid or entitled to payment
by the Company or an Affiliate (while it is
an Affiliate) for the performance of
services, with overtime hours credited on a
straight-time basis.
(b) Non-Work Periods. Each hour for which the
individual is paid or entitled to payment
by the Company or an Affiliate (while it is
an Affiliate) on account of a period of
time during which no services are performed
(irrespective of whether the employment
relationship has terminated) due to
vacation (but excluding hours
attributable to accrued vacation for which
payment is made in lieu of actual time off
from work), holiday, illness, incapacity
(including disability), layoff, jury duty,
military duty, or leave of absence;
provided that, no more than five hundred
and one (501) hours will be credited under
this subsection for any single continuous
period during which the individual performs
no services. Hours will not be credited
under this subsection with respect to a
payment under a plan maintained to comply
with applicable workers' compensation,
unemployment compensation, or disability
insurance laws, or with respect to a
payment which reimburses the individual for
medical or medicallyrelated expenses.
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(c) Back Pay Awards. Each hour for which back
pay, irrespective of mitigation of damages,
is either awarded or agreed to by the
Company or an Affiliate (while it is an
Affiliate), with such hours to be credited
to the computation period or periods to
which the award or agreement pertains,
rather than to the computation period in
which the award, agreement, or payment is
made.
(d) Credit if No Hour Records Maintained. If
an individual is within a classification
for which a record of hours for the
performance of services is not maintained,
the individual will be credited with one
hundred and ninety (190) hours of service
for each month for which he/she would
otherwise be credited under (a), (b) or (c)
with at least one Hour of Service.
The Company may use any records to determine
hours of service which it considers an accurate
reflection of the actual facts.
2.1.17 "Leased Employee" means an
individual
defined as such under Code 414(n); generally,
any individual who is not a common-law employee
of the Company or an Affiliate but who performs
services for the Company or Affiliate (while it
is an Affiliate) pursuant to an agreement with
any other person, provided such individual has
performed such services for the Company or
Affiliate on a substantially full-time basis for
a period of at least one year and such services
are performed under the primary direction and
control of the Company or Affiliate.
2.1.18 "Matching Contribution" means
a
contribution made pursuant to Sec. 5.1.
2.1.19 "Non-Matching Contribution"
means a
contribution made pursuant to Sec. 5.2.
2.1.20 "Normal Retirement Age" means
age 65.
2.1.21 "Participant" means either an
Active
Participant or an Employee or former Employee
who is no longer an Active Participant but who
still has an Account under the Plan (and also
includes an Employee or former Employee who has
a Rollover Subaccount but who has not become an
Active Participant).
2.1.22 "Participating Employer" means
the Company
and any Affiliate that is included on the List
of Participating Employers maintained for the
Plan during the
effective period specified on such list
(provided that an employer will automatically
cease to be a Participating Employer as of the
date it ceases to be an Affiliate).
2.1.23 "Plan" means the ADM Employee
Stock
Ownership Plan for Hourly Employees, as amended.
2.1.24 "Plan Year" means the calendar
year.
2.1.25 "Predecessor Employer" means
any business
entity from whose employment a group of
Employees has been transferred to employment
with the Company or an Affiliate, or any member
of a controlled group of corporations of which
an Affiliate used to be a member prior to
becoming a member of the controlled group of
corporations that includes the Company.
2.1.26 "Spouse" means a person of the
opposite
sex to whom the Participant is legally married
(including a common-law spouse in any state that
recognizes common-law marriage).
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2.1.27 "Termination of Employment"
means
resignation, discharge, retirement, death or the
happening of any other event or circumstance
that results in the severance of the employer-
employee relationship with the Company and all
Affiliates; provided that, solely to determine
whether a Participant is entitled to a
distribution from the Plan, a Termination of
Employment will not be deemed to have occurred
unless there has been a separation from service
which the Company determines satisfies the
requirements of Code 401(k)(2)(B)(i)(I).
2.1.28 "Trust Fund" means the trust
fund or funds
(or any group annuity contract with an insurance
company) that serves as a funding vehicle for
the Plan.
2.1.29 "Trustee" means a trustee (or
insurance
company) appointed and acting as such with
respect to all or any portion of the Trust Fund.
2.1.30 "Unallocated Reserve" means
the portion of
the Trust Fund that consists of shares of
Company Stock (and dividends attributable
thereto) that were acquired with the proceeds of
an Exempt Loan and that are held in suspense
pending allocation to Accounts.
2.1.31 "Valuation Date" means each
day on which
trading occurs on the New York Stock Exchange.
2.2 Choice of Law. The Plan will be governed by the
laws of the State of Illinois to the extent that
such laws are not preempted by the laws of the
United States. All controversies, disputes, and
claims arising hereunder must be submitted to
the United States District Court for the Central
District of Illinois, except as otherwise
provided in any trust agreement or group annuity
contract governing all or a portion of the Trust
Fund.
ARTICLE III
PARTICIPATION
3.1 Start of Participation.
3.1.1 New Participants. An Employee
will become
an Active Participant on the following date:
(a) The first entry date following the close of
the first eligibility measuring period
during which he/she is credited with one
thousand (1,000) or more hours of service
provided he/she is then an Eligible
Employee; or
(b) The first day of the first calendar month
thereafter on which he/she is an Eligible
Employee.
The "entry dates" for this purpose are each
January 1 and July 1 and, starting October 1,
1998, the first day of each calendar month.
The "eligibility measuring period" for this
purpose means the twelve (12) consecutive month
period beginning on the date an Employee is
first credited with one Hour of Service, and
each Plan Year thereafter starting with the Plan
Year in which falls the first anniversary of the
date the Employee is first credited with one
Hour of Service.
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3.1.2 Former Participants. A former
Active
Participant will again become an Active
Participant on the first day of the calendar
month after he/she again becomes a Eligible
Employee.
3.1.3 Credit for Service with a
Predecessor
Employer. An Employee will receive credit for
service with a Predecessor Employer for purposes
of determining his/her eligibility to
participate in the Plan as required under Code
414(a) or as provided under the List of
Predecessor Employers maintained for the Plan.
3.2 End of Participation. An Active Participant
will continue as such for so long as he/she
remains an Eligible Employee, and a Participant
will continue as such until he/she receives full
payment of the balance of his/her Account.
ARTICLE IV
EMPLOYEE CONTRIBUTIONS
4.1 Before Tax Contributions.
4.1.1 Monthly Before-Tax
Contributions. A
Before-Tax Contribution will be made for each
month on behalf of each Active Participant who
elects to have his/her Certified Earnings
reduced in order to receive a Before-Tax
Contribution for any payroll period ending
within such month. The amount of the Before-Tax
Contribution will equal the amount of the
reduction in Certified Earnings.
An Active Participant may elect to reduce
his/her Certified Earnings for a payroll period
by any whole percent, but not less than one
percent (1%) or more than the maximum percentage
specified in the applicable Appendix. An
election (or the modification or revocation of
an election) may be made with such frequency as
is deemed appropriate by
the Company, and must be made in such manner and
in accordance with such rules as may be
prescribed for this purpose by the Company
(including by means of a voice response or other
electronic system under circumstances authorized
by the Company). An election (or the
modification or revocation of an election) will
be effective as soon as administratively
practicable after the election is made, but in
no event will it be effective retroactive to a
payroll period that begins before the election
is made.
4.1.2 Limits. Before-Tax
Contributions will be subject to the applicable
limits set forth in Article VI. The Company may
limit the Before-Tax Contributions of the Highly
Compensated Employees during the Plan Year if an
in such manner as it deems appropriate in order
to comply with such limits for the Plan Year.
4.2 After-Tax Contributions. An Active Participant
is not required or permitted to make after-tax
contributions under the Plan.
4.3 Rollover Contributions. The Company in its sole
discretion may allow individuals who become
Eligible Employees from a Predecessor Employer
and who receive an "eligible rollover
distribution" (as defined in Code 402(c)(4))
from a qualified plan maintained by the
Predecessor Employer to rollover such
distribution to this Plan. A rollover will not
be allowed under any other circumstances. An
Eligible Employee who makes a rollover will not
become an Active Participant merely as a result
of the rollover (and thus will not be eligible
to receive Before-Tax, Matching or NonMatching
Contributions) until he/she has become an Active
Participant in accordance with the normal rules
of the Plan.
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A rollover election must be made in such manner
and in accordance with such rules as may be
prescribed for this purpose by the Company.
4.4 Form of Contribution. Before-Tax Contributions
will be paid to the Trust Fund as soon as
practicable following the close of each month
(or on a more frequent basis if determined
appropriate by the Company) in cash or shares of
Company Stock, as determined at the sole
discretion of the Company. If Before-Tax
Contributions are paid in shares of Company
Stock, such shares will be valued at the closing
price of a share of Company Stock on the New
York Stock Exchange for the business day
immediately preceding the day the Company
directs its transfer agent to issue such shares
to the Trust Fund (as reported the next
following business day in The Wall Street
Journal).
ARTICLE V
EMPLOYER CONTRIBUTIONS
5.1 Matching Contributions.
5.1.1 Monthly Matching Contributions-
Before 1999. Prior to January 1, 1999, a
Matching Contribution will be made for each
month on behalf of each Active Participant who
receives a Before-Tax Contribution for any
payroll period ending within such month. The
amount of the Matching Contribution will be
based on the amount of the
Before-Tax Contributions received by the
Participant as determined under the schedule set
forth in the applicable Appendix.
5.1.2 Matching Contributions-After
1998.
Starting January 1, 1999, a Matching
Contribution will be made for each Plan Year on
behalf of each Active Participant who receives a
Before-Tax Contribution for any payroll period
ending within the Plan Year. The amount of the
Matching Contribution will equal the amount
determined under the schedule set forth in the
applicable Appendix applied by reference to the
Before-Tax Contributions and Certified Earnings
of the Participant for all payroll periods
ending within the Plan Year.
5.1.3 Limits. Matching
Contributions will be
subject to the applicable limits set forth in
Article VI. A Matching Contribution will not be
made with respect to any amount by which Before-
Tax Contributions must be reduced pursuant to
Sec. 6.1, 6.2 or 6.3 and any Matching
Contributions made before the amount of the
reduction is determined will be forfeited by the
Participant and will be applied as a credit
against future Matching Contributions made on
behalf of the Participants.
5.2 Non-Matching Contributions.
5.2.1 Amount of Contribution. A Non-Matching
Contribution
will be made for any Plan Year for which a payment is
due on an Exempt Loan or for any other Plan Year for
which the Company in its sole discretion determines
that such a contribution will be made. The amount of
the Non-Matching Contribution for a Plan Year will be
determined at the sole discretion of the Company, but
will not be less than the minimum amount sufficient
to enable the Trustee to make the payment due on any
Exempt Loan for the Plan Year to the extent that such
payment cannot be satisfied from cash dividends paid
on shares of Company Stock held in the Unallocated
Reserve.
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5.2.2 Allocation of Contribution. A Non-
Matching Contribution first will be applied to make
the
payment due on any outstanding Exempt Loan and
the shares of Company Stock released from the
Unallocated Reserve as a result of such payment
will be allocated as provided in Sec. 7.2.2. A
Non-Matching Contribution (or the portion
thereof) that is not applied to an Exempt Loan
will be allocated among the ESOP Non-Matching
Stock Subaccounts of the eligible Participants
and the portion allocated to each such Subaccount
will be credited to the Subaccount as of the last
Valuation Date in the Plan Year. The portion of
the NonMatching Contribution allocated to the
ESOP Non-Matching Stock Subaccount of each
eligible Participant will equal the total amount
of the Non-Matching Contribution to be so
allocated multiplied by a fraction, the numerator
of which is the Certified Earnings of the
Participant for the Plan Year and the denominator
of which is the aggregate Certified Earnings of
all eligible Participants for the Plan Year.
5.2.3 Eligible Participants. An
eligible
Participant for purposes of this Section is:
(a) Any Employee who is an Active Participant on
the last business day of the Plan Year, and
(b) Any former Employee whose Termination of
Employment
occurred during the Plan Year as a result of
death or disability and who was an Active
Participant immediately prior to his/her
Termination of Employment.
A "disability" for this purpose means any
disability that entitles the Participant to
benefits under any long-term disability plan
maintained by the Company or an Affiliate.
5.2.4 Limits. Non-Matching
Contributions will
be subject to the applicable limits set forth in
Article VI.
5.3 Form of Contribution. Matching Contributions
(calculated based on year-to-date Before-Tax
Contributions and Certified Earnings) will be
paid to the Trust Fund as soon as practicable
following the close of each month (or on a more
frequent basis if determined appropriate by the
Company) in cash or shares of Company Stock, as
determined at the sole discretion of the Company.
Non-Matching Contributions will be paid to the
Trust Fund at such time or times as is deemed
appropriate by the Company in cash or shares of
Company Stock, as determined at the sole
discretion of the Company. If Matching or Non-
Matching Contributions are paid in shares of
Company Stock, such shares will be valued at the
closing price of a share of Company Stock on the
New York Stock Exchange for the business day
immediately preceding the day the Company directs
its transfer agent to issue such shares to the
Trust Fund (as reported the next following
business day in The Wall Street Journal).
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ARTICLE VI
CONTRIBUTION LIMITS
6.1 Code Section 402(g) Limit on Before-Tax
Contributions. The Before-Tax Contributions made
on behalf of a Participant for a Plan Year will
not exceed the limit in effect for such Plan Year
under Code 402(g). If Before-Tax Contributions,
in combination with all other elective deferrals
(as defined in Code 402(g)(3)) of the
Participant for the Plan Year, exceed such limit,
then the Participant may attribute all or any
portion of the excess to this Plan and request
that such portion be distributed from this Plan.
The portion of the excess attributed to this Plan
will first be reduced by the amount of any
reduction in Before-Tax Contributions made under
Sec. 6.2.1. The remaining excess, adjusted for
investment gain or loss, will be distributed as
soon as administratively practicable after a
request for distribution is filed by the
Participant (but not later than the April 15
following the close of the Plan Year). A request
for distribution must be filed by March 1
following the close of the Plan Year in such
manner and in accordance with such rules as will
be prescribed for this purpose by the Company.
The investment gain or loss allocable to an
excess hereunder will be determined in the same
manner generally used for allocating investment
gain or loss to Accounts, and will include only
investment gain or loss for the Plan Year (and
not investment gain or loss for the period from
the close of the Plan Year to the date of the
distribution). For purposes of determining
investment gain or loss, distributions will be
deemed to consist of
contributions made in reverse order of time ("last-in,
firstout"), starting with the last contributions made
for the
Plan Year.
A Participant will forfeit any Matching
Contributions that
were made based on Before-Tax Contributions that
are distributed under this Section. Such
forfeitures will be credited to an unallocated
suspense account within the Trust Fund, and the
balance of the suspense account (including
investment gains thereon) will be applied to
reduce future Matching Contributions made on
behalf of the Participants.
6.2 Code Section 401(k)/401(m) Nondiscrimination
Test.
6.2.1 Code Section 401(k) Test. The
Plan will satisfy the "average deferral
percentage test" of Code
401(k)(3) each Plan Year. If such test is not
satisfied
for a Plan Year, then Before-Tax Contributions
made on behalf of Highly Compensated Employees
for such Plan Year will be reduced to the extent
necessary to satisfy such test, with the amount
of the reduction to be determined and allocated
among the Highly Compensated Employees in the
manner prescribed by Code 401(k). The excess
allocated to each Highly Compensated Employee,
adjusted for investment gain or loss, will be
distributed as soon as administratively
practicable after the close of the Plan Year
(but not later than the close of the next Plan
Year). The investment gain or loss allocable to
an excess hereunder will be determined in the
same manner generally used for allocating
investment gain or loss to Accounts, and will
include only investment gain or loss for the
Plan Year (and not investment gain or loss for
the period from the close of the Plan Year to
the date of the distribution). For purposes of
determining investment gain or loss,
distributions will be deemed to consist of
contributions made in reverse order of time
("last-in, first-out"), starting with the last
contributions made for the Plan Year.
The average deferral percentage test will be
applied using the current year testing method.
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A Participant will forfeit any Matching
Contributions that were made based on Before-Tax
Contributions that are distributed hereunder.
Such forfeitures will be credited to an
unallocated suspense account within the Trust
Fund, and the balance of the suspense account
(including investment gains thereon) will be
applied to reduce future Matching Contributions
made on behalf of the Participants.
6.2.2 Code Section 401(m) Test. The
Plan will satisfy the "aggregate contribution
percentage test" of Code 401(m)(2) each Plan
Year. If such test is not satisfied for a Plan
Year, the Matching Contributions made on behalf
of Highly Compensated Employees for such Plan
Year will be reduced to the extent necessary to
satisfy such test, with the amount of the
reduction to be determined and allocated among
the Highly Compensated Employees in the manner
prescribed by Code 401(m). The excess allocated
to each Highly Compensated Employee, adjusted
for investment gain or loss, will be distributed
as soon as administratively practicable after
the close of the Plan Year (but not later than
the close of the next Plan Year). The
investment gain or loss allocable to an excess
hereunder will be determined in the same manner
generally used for allocating investment gain or
loss to Accounts, and will include only
investment gain or loss for the Plan Year (and
not investment gain or loss for the period from
the close of the Plan Year to the date of the
distribution). For purposes of determining
investment gain or loss, distributions will be
deemed to consist of contributions made in
reverse order of time
("last-in, first-out"), starting with the last
contributions made for the Plan Year.
The aggregate contribution percentage test will
be applied by using the current year testing
method.
6.2.3 Multiple Use of the
Alternative
Limitations. The Plan will satisfy the
"multiple use" test of Code 401(m)(9) each Plan
Year. If such test is not satisfied for any
Plan Year, then the Before-Tax Contributions
made on behalf of Highly Compensated Employees
for such Plan Year will be reduced to the extent
necessary to satisfy such test in accordance
with Sec. 6.2.1.
6.2.4 Incorporation of Guidance.
All
nondiscrimination tests will be applied by
reference to current regulations and subsequent
guidance issued by the IRS.
6.3 Maximum Annual Additions.
6.3.1 Defined Contribution Plan Limit. The
Annual Additions
with respect to a Participant for a Plan Year will
not exceed the lesser of:
(a) The dollar amount in effect for such Plan Year under
Code
415(c)(1)(A)), or
(b) Twenty-five percent (25%) of the Participant's
compensation for the Plan Year.
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If a Participant has Annual Additions under more than
one
defined contribution plan maintained by the Company or
an
Affiliate, the Annual Additions under all such
plans will not exceed the above-specified limit.
To the extent necessary to comply with this
limit: first, a refund will be made of the
employee after-tax contributions made by the
Participant, adjusted for investment gains; and
second, a refund will be made of the Before-Tax
Contributions made by the Participant, adjusted
for investment gains (and, in either case, if
such type of contribution has been made under
more than one plan, then the refunds will be made
prorata from such plans). For purposes of
determining investment gain, refunds will be
deemed to consist of
contributions made in reverse order of time ("last-in,
firstout"), starting with the last contributions made
for the
Plan Year.
A Participant will forfeit any Matching
Contributions that were made based on Before-Tax
Contributions that are distributed hereunder.
Such forfeitures will be credited to an
unallocated suspense account within the Trust
Fund, and the balance of the suspense account
(including investment gains thereon) will be
applied to reduce future Matching Contributions
made on behalf of the Participants.
If an excess remains after the refunds and
forfeitures described above, then the excess
will be allocated prorata among the defined
contribution plans in which the Participant had
Annual Additions (except that, the excess will
be allocated last to an individual medical
benefit account or a separate account for
retiree medical benefits). The excess allocated
to this Plan will be charged against the
Matching and/or Non-Matching Contribution
Account of the Participant and will be credited
to a suspense account
within the Trust Fund, and the balance of the
suspense account (including investment gains
thereon) will be used to reduce future Matching
Contributions made on behalf of the
Participants.
6.3.2 Defined Contribution/Defined
Benefit Plan
Limit. If a Participant also participates in
one or more defined benefit plans maintained by
the Company or an Affiliate, the sum of the
defined benefit plan fraction and defined
contribution plan fraction, determined in
accordance with Code 415(e) for any Plan Year
may not exceed one (1.00). If the sum of a
defined benefit plan fraction and defined
contribution plan fraction would otherwise
exceed one (1.00) for any Plan Year, the pension
benefit otherwise accrued and payable under the
defined benefit plans will be limited to the
extent necessary to reduce the sum of the
fractions to one (1.00). This multiple Plan
limit will not apply to Plan Years beginning
after December 31, 1999.
6.3.3 Compensation. For purposes of
applying
the limits of Code 415, "compensation" means
compensation as defined in Code 415(c)(3), and
includes those items specified in Treas. Reg.
1.415-2(d)(2) and does not include those items
specified in Treas. Reg. 1.415-2(d)(3). For
Plan Years beginning on or after January 1,
1998, "compensation" also includes elective
deferrals (as defined in Code 402(g)(3)), and
any amounts that are contributed or deferred at
the election of the Participant and that are not
includible in gross income by reason of Code
125.
6.4 Deduction Limit. The contributions made for any
Plan Year will not exceed the maximum amount
allowable as a deduction in computing the
taxable income for federal income tax purposes
of the Company and its Affiliates for the
taxable year of the Company that ends with or
within the Plan Year, and each contribution is
expressly conditioned upon its being deductible
under Code 404.
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ARTICLE VII
ACCOUNTS
7.1 Accounts.
7.1.1 Types of Subaccounts. The
following
Subaccounts will be maintained under the Plan as
part of the Account of each Participant:
ESOP Subaccounts.
(a) An "ESOP Before-Tax Stock
Subaccount" to
reflect amounts attributable to Before-Tax
Contributions made with respect to the
period after April 1, 1998, other than such
amounts that have been diversified pursuant
to Sec. 8.3.
(b) An "ESOP Before-Tax Diversified Subaccount"
to reflect amounts attributable to Before-
Tax Contributions made with respect to the
period after April 1, 1998, and that have
been diversified pursuant to Sec. 8.3.
(c) An "ESOP Matching Stock Subaccount" to
reflect amounts attributable to Matching
Contributions made with respect to the
period after April 1, 1998, other than
such amounts that have been diversified
pursuant to Sec. 8.3.
(d) An "ESOP Matching Diversified Subaccount"
to reflect amounts attributable to Matching
Contributions made with respect to the
period after April 1, 1998, and that have
been diversified pursuant to Sec. 8.3.
(e) An "ESOP Non-Matching Stock Subaccount" to
reflect
amounts attributable to Non-Matching
Contributions made after April 1, 1998,
other than such amounts that have been
diversified pursuant to Sec. 8.3.
(f) An "ESOP Non-Matching Diversified
Subaccount" to reflect amounts attributable
to Non-Matching Contributions made after
April 1, 1998, and that have been
diversified pursuant to Sec. 8.3.
Non-ESOP Subaccounts.
(g) A "SIP Before-Tax Stock
Subaccount" to reflect amounts attributable
to Before-Tax Contributions made with
respect to the period before April 1, 1998.
(h) A "SIP Matching Stock Subaccount" to
reflect amounts attributable to Matching
Contributions made with respect to the
period before April 1, 1998.
(i) A "Rollover Subaccount" to
reflect amounts attributable to rollover
contributions.
(j) A "Predecessor Plan Subaccount" to reflect
amounts
attributable to any transfer received from a
Predecessor Plan (and more than one Predecessor Plan
Subaccount may be maintained with respect to a given
merger or transfer as deemed appropriate by the
Company to Account for different contribution
sources).
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Page 15
Additional Subaccounts may also be maintained if
considered appropriate in the administration of the Plan.
7.1.2 Balance of Accounts. A Subaccount
(other
than an ESOP Diversified Subaccount or a Predecessor Plan
Subaccount) will have a stock balance expressed in shares
of Company Stock, and will have a cash balance expressed
in dollars to reflect cash contributions, cash dividends,
cash repayments on a loan made to a Participant and other
cash amounts received by the Trust Fund that are held in
cash or short term investments pending investment in
shares of Company Stock, and also to reflect any
outstanding loan made to a Participant and drawn from the
Subaccount. An ESOP Diversified Subaccount and
Predecessor Plan Subaccount will have a cash balance, but
will not have a stock balance unless a pooled investment
fund that is designed to invest primarily in Company Stock
is established as an available investment option and share
accounting is used for such pooled investment fund or
unless, in the case of a Predecessor Plan Subaccount, such
Subaccount holds shares of Company Stock.
7.1.3 Accounts for Bookkeeping Only. Accounts
and Subaccounts are for bookkeeping purposes only and the
maintenance of Accounts and Subaccounts will not require
any segregation of assets of the Trust Fund.
7.2 Valuation of Accounts.
7.2.1 Daily Adjustments. Subaccounts will be
adjusted as of each Valuation Date as follows:
(a) Contributions. Contributions made with respect to a
Participant will be added to the balance of the
appropriate Subaccount as soon as administratively
practicable after such contributions are paid into
the Trust Fund; provided that, for purposes of
applying the nondiscrimination tests under Code
401(a)(4), 401(k) and 401(m), for purposes of
determining the maximum allocations under Code 415,
for purposes of calculating the deductions under Code
404 and for any other qualification provision of the
Code, a contribution will be treated as having been
made for the Plan Year designated by the Company
provided that the contribution is paid into the Trust
Fund by such deadline as may be prescribed for the
applicable provision of the Code.
(c) Cash Dividends. The cash dividends paid on shares of
Company Stock held by the Trust Fund as of the record date of
such dividend (other than cash dividends paid on shares held in
the Unallocated Reserve) will be allocated among the
Subaccounts and the portion allocated to each Subaccount will
be added to balance of the Subaccount as soon as
administratively practicable after such dividends are paid into
the Trust Fund. The portion of such cash dividends allocated
to each Participant Subaccount will be determined by
multiplying the total cash dividends (other than cash dividends
paid on shares held in the Unallocated Reserve) by a fraction,
the numerator of which is the number of shares of Company Stock
credited to the Subaccount as of the date the dividends are
paid into the Trust Fund (or as of such other date as may be
established by the Company) and the denominator of which is the
total number of shares of Company Stock held in all Participant
Subaccounts as of the date the dividends are paid into the
Trust Fund (or as of such other date as may be established by
the Company).
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The cash dividends paid on shares of Company Stock held
in the Unallocated Reserve as of the record date of
such dividend will be credited to the
Unallocated Reserve and will thereafter be
applied to any payment due for the Plan Year
on the Exempt Loan.
(c) Stock Dividends and Splits. The stock
dividends paid on shares of Company Stock
credited to any Subaccount of a Participant
as of the record date of such dividend, and
stock splits or reverse stock splits with
respect to shares of Company Stock credited
to any Subaccount of a Participant as of the
record date of such split, will be added to
the balance of the Subaccount as soon as
administratively practicable after the
additional shares resulting from such stock
dividend, stock split or reverse stock split
are paid into the Trust Fund.
The stock dividends paid on shares of
Company Stock held in the Unallocated
Reserve as of the record date of such
dividend, and stock splits or reverse stock
splits with respect to shares of Company
Stock held in the Unallocated Reserve as of
the record date of such dividend, will be
credited to the Unallocated Reserve.
(d) Gain or Loss on Investment Funds. The gain
or loss on the mutual funds or other
investment options in which ESOP Diversified
Subaccounts and Predecessor Plan Subaccounts
are invested will be reflected in such
Subaccounts as provided in Sec. 8.2.2.
(e) Loan Interest Payments. The interest
payments received on a loan made to a
Participant will be added to the balance of
the appropriate Subaccount as soon as
administratively practicable after such
interest payments are paid into the Trust
Fund. Interest accrued but unpaid on a loan
on the date of any distribution from a
Subaccount against which the loan is to be
offset will be added to the balance of the
Subaccount prior to such offset (or as of
such earlier date as may be specified in the
loan procedures for the participant loan
program).
(f) Withdrawals and Distributions. The
withdrawals and distributions made from a
Subaccount will be subtracted from the
balance of the Subaccount as of the date the
withdrawal or distribution is made from the
Trust Fund.
Any items of income, gain or loss, or expense not
provided for under the above provisions and not
applied to pay expenses of the Plan will be
allocated among the Subaccounts in accordance
with rules prescribed for this purpose by the
Company and the portion allocated to each will be
added to or subtracted from the Subaccount as of
the date established by the Company.
7.2.2 Annual Adjustments for Non-
Matching
Contributions/Shares Released from Unallocated
Reserve. The shares of Company Stock released
from the Unallocated
Reserve for a Plan Year will be allocated among the
ESOP NonMatching Stock Subaccounts of the eligible
Participants (as defined in Sec. 5.2.3) and the shares
allocated to each such Subaccount will be added to the
balance of the Subaccount as of the last Valuation
Date in the Plan Year. The number of shares of Company
Stock allocated to the ESOP Non-Matching Stock
Subaccount of each eligible Participant will be
determined by multiplying the number of shares of
Company Stock released from the Unallocated Reserve by
a fraction, the numerator of which is the Certified
Earnings of the eligible Participant for the Plan Year
and the denominator
of which is the Certified Earnings of all eligible
Participants for the Plan Year.
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Any Non-Matching Contribution that is allocated to a
Participant under Sec. 5.2.2 (and not applied to an
Exempt Loan) will be added to the balance of the
ESOP Non-Matching Stock Subaccount of the
Participant as of the last Valuation Date in the
Plan Year.
7.2.3 Processing Transactions Involving
Accounts. Accounts shall be adjusted to reflect
contributions, distributions and other transactions
as provided in Sec. 7.2.1. However, all information
necessary to properly reflect a given transaction in
the Subaccounts may not be immediately available, in
which case the transaction will be reflected in the
Subaccounts when such information is received and
processed. Further, subject to express limits that
may be imposed under the Code, the Company reserves
the right to delay the processing of any
contribution, distribution or other transaction for
any
legitimate business reason (including, but not
limited to, failure of systems or computer programs,
failure of the means of the transmission of data,
force majeure, the failure of a service provider to
timely receive net asset values or prices, or to
correct for its errors or omissions or the errors or
omissions of any service provider). With respect to
any contribution, distribution or other transaction,
the processing date of the transaction will be
considered the applicable Valuation Date for that
transaction and will be binding for all purposes of
the Plan.
7.3 Statements. The Company may cause benefit
statements to be issued from time to time advising
Participants of the status of their Accounts, but it
is not required to issue benefit statements and the
issuance of such benefit statements (and any errors
that may be reflected on benefit statements) will
not in any way alter or affect the rights of
Participants with respect to the Trust Fund.
7.4 Voting Rights on Company Stock.
7.4.1 Voting of Allocated Shares. A
Participant (or Beneficiary of a deceased
Participant) may instruct the Trustee as to how to
vote shares of Company Stock credited to his/her
Account on any matter submitted for a vote to
shareholders of the Company. The number of shares
with respect to which a Participant may provide
voting instructions will equal the number of full
and fractional shares credited to his/her Account as
of the record date for determining the shareholders
entitled to vote at the shareholder meeting. The
Company will cause the proxy materials that are sent
to shareholders to be sent to Participants prior to
the shareholders meeting at which the vote is to be
cast. The Company or Trustee will establish a
deadline by which instructions must be received from
Participants; the Trustee will tabulate the
instructions received by that deadline, will
determine the number of votes for and against each
proposal, and will vote the allocated shares in
accordance with the directions received.
A Participant (or Beneficiary) will be a "named
fiduciary" to the extent of the voting control
granted to the Participant under this Section.
7.4.2 Voting of Unallocated Shares/Shares for Which
Directions Not Received. The Trustee will vote all
shares of Company Stock held in the Unallocated Reserve
(if any) and all shares of Company Stock credited to
Accounts for which instructions from the Participants (or
Beneficiaries) have not been received by the established
deadline in the same proportion as the vote cast pursuant
to Sec. 7.4.1.
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7.4.3 Effective Date. The voting
procedures specified above will apply with respect
to the vote cast on
any matter where the record date established for
determining the shareholders entitled to vote
falls on or after October 1, 1998. The voting
procedure in effect under this Plan (then called
the Savings and Investment Plan) immediately
prior to April 1, 1998, will apply with respect
to any other vote.
7.5 Tender or Exchange Offers Regarding Company
Stock.
7.5.1 Tender of Allocated Shares. A
Participant
(or Beneficiary of a deceased Participant) may
instruct the Trustee as to whether or not to
tender or exchange shares of Company Stock
credited to his/her Account in any tender or
exchange offer for shares of Company Stock. The
number of shares with respect to which a
Participant may provide instructions will equal
the number of full and fractional shares
credited to his/her Account as of a date
established by the Company that precedes the
date on which a response is required to the
offer (with appropriate adjustments to reflect
subsequent transactions with respect to the
Account). The Company will use reasonable
efforts to cause each Participant to be sent a
notice of the terms of any tender or exchange
offer, and to be provided with forms by which
the Participant may instruct the Trustee to
tender shares of Company Stock credited to
his/her Account, to the extent permitted under
the terms of such offer. The Company or Trustee
will establish a deadline by which instructions
must be received from Participants; the Trustee
will tabulate the instructions received by that
deadline, will determine the number of shares to
tender and retain, and will tender or retain the
allocated shares in accordance with the
directions received.
A Participant (or Beneficiary ) may not instruct
the Trustee to tender or exchange some but less
than all of the shares of Company Stock credited
to his/her Account, and an instruction to tender
or exchange less than all will be deemed to be
an instruction not to tender or exchange any
shares of Company Stock credited to his/her
Account.
A Participant (or Beneficiary) will be a "named
fiduciary" to the extent of the investment
control granted to the Participant under this
Section.
7.5.2 Tender of Unallocated
Shares/Shares for Which No Directions Received.
The Trustee will tender or exchange or retain,
shares of Company Stock held in the Unallocated
Reserve (if any) and shares of Company Stock
credited to Participant Accounts for which
instructions from the Participant (or
Beneficiary) have not been received by the
established deadline, in the same proportion as
the decision made in Sec. 7.5.1.
ARTICLE VIII
INVESTMENT OF ACCOUNTS
8.1 Investment in Company Stock. The Subaccounts
(other than an ESOP Diversified Subaccount or a
Predecessor Plan Subaccount) will be invested in
shares of Company Stock; except that, such
Subaccounts may be invested in cash or other
short-term investments pending investment in
Company Stock and may be invested in a loan made
pursuant to any participant loan program adopted
by the Company. All shares of Company Stock
held under the Plan will be held in the name of
the Trustee or the nominee of the Trustee.
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The portion of the Plan consisting of the ESOP
Subaccounts is intended to qualify as an
employee stock ownership plan and thus is
designed to invest in Company Stock except to
the extent otherwise provided under this Plan.
8.2 Investment in Other Investment Options.
8.2.1 Investment Options. A
Participant (or
Beneficiary following the death of the
Participant) will be allowed to direct the
investment of his/her ESOP Diversified
Subaccounts and Predecessor Plan Subaccounts
among the mutual funds or other investment
options available under the Plan. The Company
will determine the mutual funds or other
investment options that will be made available
under the Plan for such investment (which may
include a pooled investment fund that is
designed to invest primarily in Company Stock if
deemed appropriate by the Company), and may at
any time add to or remove from the mutual funds
or other investment options; provided that, at
least three (3) mutual funds or other investment
options will be available at all times.
8.2.2 Investment Gains or Losses.
Investment
gains or losses of the Trust Fund with respect
to an investment option will be allocated as
follows:
(a) In the case of any mutual fund, the value of
that
portion of a Subaccount invested in the
mutual fund as of any date will equal the
value of a share in such fund multiplied by
the number of shares credited to the
Subaccount.
(b) In the case of any pooled investment fund, gains
or
losses on the pooled investment fund will
be allocated among the Subaccounts in
proportion to the value of that portion of
each Subaccount invested in such fund
immediately prior to the allocation, and
the gain or loss allocated to each will be
credited to or charged against the
Subaccount. Alternatively, unit values may
be established for a pooled investment fund
in accordance with investment rules
prescribed for this purpose by the Company,
and the value of that portion of a
Subaccount invested in a pooled investment
fund will equal the value of a unit in such
fund multiplied by the number of units
credited to the Subaccount.
(c) In the case of any investment that is held
specifically for a Subaccount, any gain or
loss on such investment will be credited to
or charged against the Subaccount.
Any investment gain or loss of the Trust Fund
that is not directly attributable to the
investment of the Account of any Participant
(including, for example, any "float" earned on
the disbursement account established for the
Plan and not treated as part of the compensation
of the Trustee or paying agent for the Plan, and
any 12b-1 or similar fees paid to the Plan) will
be applied to pay administrative expenses of the
Plan, with any excess remaining at the close of
the Plan Year being allocated among the Accounts
in accordance with rules established for this
purpose by the Company.
8.2.3 Investment Direction
Procedures.
Investment directions may be given with such
frequency as is deemed appropriate by the
Company, and must be made in such percentage or
dollar increments, in such manner and in
accordance with such rules as may be prescribed
for this purpose by the Company (including by
means of a voice response or other electronic
system under circumstances so authorized by the
Company). All investment directions will be
complete as to the terms of the investment
transaction
and will remain in effect until a new investment
direction is filed by the Participant.
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8.2.4 Processing Investment
Transactions. Investment directions will be
processed as soon as administratively
practicable after proper investment directions
are received from the Participant. Neither the
Plan nor the Company provides a guarantee that
investment directions will be processed on a
daily basis, or provides a guarantee in any
respect as to the processing time of an
investment direction. Notwithstanding the
general provisions of Sec. 7.2.1, the Company
reserves the right to not value an investment
option or a Subaccount on any given Valuation
Date for any reason deemed appropriate by the
Company. The Company further reserves the right
to delay the processing of any investment
transaction for any legitimate business reason
(including, but not limited to, failure of
systems or computer programs, failure of the
means of the transmission of data, force
majeure, the failure of a service provider to
timely receive values or prices, to correct for
its errors or omissions or the errors or
omissions of any service provider). With
respect to any investment transaction, the
processing date of the transaction will be
considered the applicable Valuation Date for
that transaction and will be binding for all
purposes of the Plan.
8.3 Reinvestments to Satisfy Diversification Rules.
Starting January 1, 1999, a Participant who has
both attained age fifty-five (55) and completed
ten (10) years of service with the Company or an
Affiliate (while it is an Affiliate) may elect
to convert all or any number of his/her
reinvestment eligible shares to cash and have
such cash credited to the appropriate ESOP
Diversified Subaccount to be invested in the
mutual funds or other investment options then
available under the Plan. For this purpose,
service will include the last period of
uninterrupted service with a Predecessor
Employer if a defined contribution plan of the
Predecessor Employer is merged into this Plan or
if the account balance of the Participant under
a defined contribution plan of the Predecessor
Employer is transferred to this Plan.
The "reinvestment eligible shares" for this
purpose are all shares of Company Stock held in
the ESOP Subaccounts of the Participant.
A diversification election under this Section
will be drawn from the ESOP Subaccounts in the
following order: ESOP Before-Tax Stock
Subaccount, ESOP Matching Stock Subaccount, and
ESOP Non-Matching Stock Subaccount.
8.4 Source of Payments on an Exempt Loan. If an
Exempt Loan is outstanding, a Non-Matching
Contribution will be made for the Plan Year in
an amount at least sufficient to make the
payment due on the Exempt Loan to the extent
that such payment cannot be made from cash
dividends paid on shares of Company Stock held
in the Unallocated Reserve. Before-Tax
Contributions, Matching Contributions, and
dividends paid on shares allocated to
Participant Accounts will not be used to make
payments on an Exempt Loan.
8.5 Participant Loan Program. The Company may
establish a participant loan program in
accordance with ERISA
408(b)(1), the terms and conditions of which
will be determined by the Company and set
forth in written loan
procedures that will be deemed to form part of
the Plan. The rules and regulations will apply
on a uniform basis to all Participants, and
will not allow for an offset against the
balance of an Account upon default of a loan
prior to the date distributions are permitted
under the Code (regardless of whether a prior
taxable event occurs in connection with the
loan under Code 72(p)).
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8.6 Valuation of Non-Traded Shares. If shares of
Company Stock cease to be readily tradable on
an established securities market, all
valuations of such shares for purposes of the
Plan will be performed by an independent
appraiser as provided in Code 401(a)(28)(C).
ARTICLE IX
VESTING
A Participant will have a fully vested and
nonforfeitable interest at all times in his/her
Account under this Plan.
ARTICLE X
WITHDRAWALS WHILE EMPLOYED
10.1 Withdrawals for Hardship.
10.1.1 Withdrawal. A Participant may
make a
withdrawal from an available Subaccount prior to
the date he/she attains age fifty-nine and one-
half (59 1/2) if the withdrawal is on account of an
immediate and heavy financial need and the
withdrawal is needed to alleviate the financial
need; provided that, a withdrawal will not be
allowed of a cash amount less than one thousand
dollars ($1,000) or of a number of shares of
Company Stock with a fair market value less than
one thousand dollars ($1,000) (or the total
amount available for withdrawal if less than
such amount); provided further that, no more
than one withdrawal will be allowed in any Plan
Year.
10.1.2 Available
Subaccounts/Ordering. A
withdrawal under this Section will be made from
the following Subaccounts and in the following
order: ESOP Before-Tax Stock Subaccount, SIP
Before-Tax Stock Subaccount, and Rollover
Subaccount.
Any contrary provision notwithstanding, a
withdrawal from the ESOP or SIP Before-Tax Stock
Subaccount may not exceed an amount equal to the
amount of the Before-Tax Contributions credited
to such Subaccount, reduced by the amount
previously withdrawn on account of hardship from
such Subaccount.
10.1.3 Immediate and Heavy Financial
Need. A
withdrawal will be deemed to be on account of an
immediate and heavy financial need only if the
withdrawal is for one of the following reasons:
(a) Expenses for medical care (as defined in
Code 213(d)) incurred by the Participant,
the Spouse of the Participant, or any
dependent (as defined in Code 152) of the
Participant, or expenses necessary for any
of such persons to obtain such medical
care.
(b) Costs directly related to the purchase of the
principal residence of the Participant
(excluding mortgage payments).
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(c) Payment of tuition, related educational fees and
room
and board expenses for the next semester or
quarter of post-secondary education for the
Participant or the
Spouse, child, or dependent (as defined in
Code 152) of the Participant.
(d) To prevent the eviction of the Participant
from his/her principal residence or
foreclosure on the mortgage of the
principal residence of the Participant.
10.1.4 Needed to Alleviate Need. A
withdrawal
will be deemed to be needed to alleviate an immediate
and
heavy financial need only if:
(a) The withdrawal amount does not exceed the
amount of the immediate and heavy financial
need (plus the amount necessary to pay any
federal, state or local income taxes or
penalties reasonably expected to result
from the withdrawal as determined by the
Company).
(b) The Participant has obtained all
distributions (other than hardship
distributions) and all nontaxable loans
currently available under all plans
maintained by the Company or an Affiliate.
(c) The Participant agrees that the Before-Tax
Contributions to this Plan, and the
elective and employee contributions under
all other qualified and nonqualified plans
of deferred compensation (including stock
option, stock purchase or similar plan)
maintained by the Company or an Affiliate,
will be suspended for at least twelve (12)
months after the receipt of the hardship
distribution.
(d) For the calendar year immediately following the
calendar year of the withdrawal, the
Participant may not make contributions
under all plans maintained by the Company
or any Affiliate in excess of the
applicable limit under Code 402(g) for
such next calendar year less the amount of
his/her elective contributions for the
calendar year of the hardship distribution.
10.1.5 Medium of Withdrawal. A
withdrawal will be
made in the following medium at the election of
the Participant:
(a) Fully in cash; or
(b) Fully in whole shares of
Company Stock (with any fractional
share in cash).
10.2 Withdrawals After Age 59 1/2.
10.2.1 Withdrawals. A Participant
may make a
withdrawal from an available Subaccount for any
reason after he/she attains age fifty-nine and
one-half (59 1/2); provided that, a withdrawal will
not be allowed of a cash amount less
than one thousand dollars ($1,000) or of a
number of shares of Company Stock with a fair
market value less than onethousand dollars
($1,000) (or the total amount available for
withdrawal if less than such amount); provided
further that, no more than one withdrawal will
be allowed in any Plan Year.
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10.2.2 Available
Subaccounts/Ordering. A
withdrawal under this Section will be made from
the Subaccounts in the following order: ESOP
Before-Tax Diversified Subaccount, ESOP Matching
Diversified Subaccount, ESOP Non-Matching
Diversified Subaccount, ESOP Before-Tax Stock
Subaccount, ESOP Matching Stock Subaccount, ESOP
Non-Matching Stock Subaccount, SIP Before-Tax
Stock Subaccount, SIP Matching Stock Subaccount,
and Rollover Subaccount.
10.2.3 Medium of Withdrawal. A
withdrawal will
be made in the following medium at the election
of the Participant:
(a) Fully in cash; or
(b) Fully in whole shares of
Company Stock (with any fractional
share in cash).
10.3 Withdrawals from Predecessor Plan Accounts. A
Participant may make a withdrawal from a
Predecessor Plan Subaccount as provided on the
List of Predecessor Plan Accounts for the Plan.
10.4 Withdrawal Procedures. A withdrawal request
must be made in such manner and in accordance
with such rules as may be prescribed for this
purpose by the Company (including by means of a
voice response or other electronic system under
circumstances authorized by the Company).
ARTICLE XI
DISTRIBUTIONS AFTER TERMINATION
11.1 Benefit on Termination of Employment. A
Participant will be eligible to receive a
distribution of the balance of his/her Account
following his/her Termination of Employment in
accordance with the terms of this Article.
11.2 Time, Form and Medium of Distribution.
11.2.1 Time of Distribution. A
distribution will
be made (or distributions will commence) as soon
as administratively practicable after the
Participant files a request for distribution
following his/her Termination of Employment, but
not later than sixty (60) days after the close
of the Plan Year in which he/she attains Normal
Retirement Age (or in which his/her Termination
of Employment occurs, if later).
11.2.2 Form of Distribution. A distribution will
be made in
the following form:
(a) Retirements. If the
Termination of Employment is a normal
retirement or an early retirement under the
ADM Pension Plan for Hourly
Employees, or if the Participant is
receiving disability payments under any
long-term disability plan maintained by the
Company or an Affiliate, payment will be
made in either of the following forms at
the election of the Participant:
(1) A single-sum
distribution of the full balance
of his/her Account; or
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(2) Two or more partial
distributions each of which (other
than the final distribution) is not
less than one-thousand dollars
($1,000) or a number of shares of
Company Stock with a fair market value
of not less than one-thousand dollars
($1,000); provided that, no more than
one distribution may be made in any
calendar year.
(b) Vested Terminations. In all
other cases,
the distribution will be in the form of a
single-sum distribution of the full balance
of his/her Account (partial distributions
are not permitted).
11.2.3 Medium of Distribution. A
distribution
(other than from a Predecessor Plan Account)
will be made in the following medium at the
election of the Participant:
(a) Fully in cash;
(b) Fully in whole shares of
Company Stock
(with any fractional share in cash);
or
(c) Partly in cash and partly in
whole shares
of Company Stock.
A distribution from a Predecessor Plan Subaccount
will be
made in cash unless otherwise specified in the List
of
Predecessor Plan Accounts for the Plan.
11.2.4 Default Upon Failure to
Request
Distribution. If the Participant fails to file
a distribution request, a distribution will be
made as soon as administratively practicable
after the Participant attains Normal Retirement
Age (or after his/her Termination of Employment
occurs, if later) in the form of a single-sum
distribution in whole shares of Company Stock to
the extent the Account is then invested in
shares of Company Stock (with the balance in
cash).
11.2.5 Ordering. A partial
distribution will be
drawn from the Subaccounts in the following
order: ESOP Before-Tax Diversified Subaccount,
ESOP Matching Diversified Subaccount, ESOP Non-
Matching Diversified Subaccount, ESOP Before-Tax
Stock Subaccount, ESOP Matching Stock
Subaccount, ESOP Non-Matching Stock Subaccount,
SIP Before-Tax Stock Subaccount, SIP Matching
Stock Subaccount, and Rollover Subaccount.
11.3 Cash-Out of Small Accounts. Any contrary
provision notwithstanding, if the value of a
Participant's Account does not exceed the cash-
out amount (as defined below), and the value of
the Account did not exceed the cash-out amount
immediately prior to any previous distribution
to the Participant, a single-sum distribution of
the full balance of the Account will be made to
the Participant as soon as
administratively practicable after his/her
Termination of Employment. If the Participant
fails to file an election as to the medium of
distribution, the distribution will be made in
whole shares of Company Stock to the extent the
Account is invested in Company Stock (with the
balance in cash).
The "cash-out amount" is $3,500 prior to, and is
$5,000 on and after, January 1, 1998.
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11.4 Minimum Distribution Rules. Any contrary
provision notwithstanding, distributions will be
made as necessary to comply with the minimum
distribution rules of Code 401(a)(9) (including
the incidental death benefit rules of Code
401(a)(9)(G)). To calculate the minimum
distribution for the first year, the initial
life expectancy (or joint life and last survivor
expectancy) will be determined based on the age
of the Participant and his/her Beneficiary on
the birthday in the calendar year in which the
Participant attains 70 1/2 (or retires, if later)
using the expected return multiples in Tables V
and VI of Treas. Reg. 1.72-9 or, if applicable,
the appropriate minimum distribution incidental
benefit table in Prop. Treas. Reg. 1.401(a)(9)-
2. To calculate the minimum distribution for
each succeeding year, the initial life
expectancy (or joint life and last survivor
expectancy) will be reduced by one for each
succeeding year (and life expectancies will not
be redetermined each year). A minimum
distribution will be drawn from the Subaccounts
in the order specified in Sec. 11.2.5.
11.5 Distribution Procedures. A
distribution
request must be made in such manner and in
accordance with such rules as may be prescribed
for this purpose by the Company (including by
means of a voice response or other electronic
system under circumstances authorized by the
Company).
ARTICLE XII
DISTRIBUTIONS AFTER DEATH
12.1 Benefit on Death. The Beneficiary of a
Participant will be eligible to receive a
distribution of that portion of the balance (or
remaining balance) of the Participant's Account
allocated to such Beneficiary following the
Participant's death in accordance with the terms
of this Article.
12.2 Time, Form and Medium of Distribution.
12.2.1 Time of Payment. A
distribution will be
made as soon as administratively practicable
after the death of the Participant and the
entitlement of the Beneficiary has been
determined by the Company.
12.2.2 Form of Distribution. A
distribution will
be made in the form of a single-sum distribution
of the full balance payable to the Beneficiary.
12.2.3 Medium of Distribution. A
distribution
(other than from a Predecessor Plan Subaccount)
will be made in the following medium, at the
election of the Beneficiary:
(a) Fully in cash;
(b) Fully in whole shares of
Company Stock
(with any fractional share paid in cash); or
(c) Partly in cash and partly in
whole shares of Company Stock;
A distribution from a Predecessor Plan Subaccount
will be
made in cash unless otherwise specified in the List
of
Predecessor Plan Accounts for the Plan.
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12.2.4 Default Upon Failure to
Request
Distribution. If the Beneficiary fails to file
an election as to the medium of distribution, a
distribution will be made in whole shares of
Company Stock to the extent the Account is then
invested in Company Stock (with the balance in
cash).
12.3 Beneficiary Designation.
12.3.1 General Rule. A Participant
may designate
any person (natural or otherwise, including a
trust or estate) as his/her Beneficiary to
receive any balance remaining in his/her Account
when he/she dies, and may change or revoke a
Beneficiary designation previously made without
the consent of any Beneficiary named therein.
12.3.2 Special Requirements for
Married
Participants. If a Participant has a Spouse at
the time of death, such Spouse will be his/her
Beneficiary unless:
(a) The Spouse has consented in writing to the
designation of a different Beneficiary;
(b) The Spouse's consent acknowledges the effect of
such
designation; and
(c) The Spouse's consent is witnessed by a
notary public or an authorized
representative of the Plan.
Consent of a Spouse will be deemed to have been
obtained if it is established to the
satisfaction of the Company that such consent
cannot be obtained because the Spouse cannot be
located, or because of such other circumstances
as may be prescribed by the Secretary of
Treasury. A consent by a Spouse will be
effective only with respect to such Spouse, and
cannot be revoked. A Beneficiary designation
that has received spousal consent cannot be
changed without spousal consent.
12.3.3 Form and Method of
Designation. A
Beneficiary designation must be made on such
form and in accordance with such rules as may be
prescribed for this purpose by the Company. A
Beneficiary designation will be effective (and
will revoke all prior designations) only if it
is received by the Company (or if sent by mail,
the postmark of the mailing is) prior to the
date of death of the Participant. The Company
may rely on the latest Beneficiary designation
on file with it (or may direct that payment be
made pursuant to the default provision of the
Plan if an effective designation is not on file)
and will not be liable to any person making
claim for such payment under a subsequently
filed Beneficiary designation or for any other
reason.
12.3.4 Default Designation. If a
Beneficiary
designation is not on file with the Company, or if no
designated Beneficiary survives the Participant,
the Beneficiary will be the person or persons
surviving the Participant in the first of the
following classes in which there is a survivor,
share and share alike:
(a) The Participant's Spouse.
(b) The Participant's children,
except that if any of the Participant's
children predecease the Participant but
leave issue surviving the Participant, such
issue will take by right of representation
the share their parent would have taken if
living.
(c) The Participant's parents.
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(d) The Participant's brothers and
sisters.
(e) The Participant's estate.
The identity of the Beneficiary in each case will be
determined by the Company.
12.3.5 Successor Beneficiary. If a
Beneficiary
survives the Participant but dies before
receiving the full balance to which he/she is
entitled, the remaining balance will be payable
to the surviving contingent Beneficiary
designated by the Participant or otherwise to
the estate of the deceased Beneficiary.
12.3.6 Special Rule for Predecessor
Plan
Accounts. A Beneficiary designation in effect
under a predecessor plan immediately prior to
its merger into this Plan or transfer of account
balances to this Plan will be deemed to be valid
under this Plan with respect to the resulting
Predecessor Plan Subaccount (and only such
subaccount) unless and until changed or revoked
by the Participant.
12.4 Multiple Beneficiaries. If more than one
Beneficiary is entitled to benefits following
the death of a Participant, the interest of each
will be segregated for purposes of applying this
Article.
12.5 Minimum Distribution Rules. Any contrary
provision notwithstanding, distributions after
the death of the Participant will be made as
necessary to comply with the minimum
distribution rules of Code 401(a)(9) (including
the incidental death benefit rules of Code
401(a)(9)(G)). To comply with such minimum
distribution rules, distribution of the full
balance payable to all Beneficiaries will be
made not later than the last day of the calendar
year in which falls the fifth (5th) anniversary
of the date the Participant dies.
ARTICLE XIII
MISCELLANEOUS BENEFIT PROVISIONS
13.1 Valuation of Accounts
Following
Termination of Employment.
13.1.1 Continued Adjustment of Accounts. If a
distribution of
all or any portion of an Account is deferred or
delayed for any reason, the Account will continue to
be adjusted to reflect
increases or decreases in the value of Company Stock,
dividends, and other investment gains or losses in
accordance with the terms of the Plan.
13.1.2 Segregation of Accounts/Disbursement Accounts.
If
shares of Company Stock or other investments of an
Account are liquidated to allow for a distribution,
the resulting proceeds may be credited to a
segregated account maintained under the Plan for the
benefit of the person to whom the distribution is to
be made, and any investment gains or losses on such
segregated account will be allocated solely to such
segregated account (and the Accounts of other
Participants or Beneficiaries will not be affected by
such investment gains or losses). Any such
segregated account may be held uninvested in cash, or
invested in an interest-bearing account or other
short-term investment as directed by the Company
pending distribution from the Plan.
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A disbursement account also will be established for the
Plan
(either with the Trustee, any affiliate of the
Trustee, or
any third party bank selected by the Company) to
allow for any distributions from the Plan. Such
disbursement account is separate and distinct
from any segregated account established under
the prior paragraph, and any interest or other
income earned on such disbursement account will
inure to the benefit of the Plan and not the
Participant. Such interest or other income will
be applied to pay administrative expenses of the
Plan or, pursuant to agreement with the Trustee
or paying agent for the Plan, will be treated as
part of the compensation of the Trustee or
paying agent for the Plan. In any event, a
Participant will have no claim to any income on
any disbursement account established for the
Plan.
13.2 Direct Rollover Option. A distribution to a
Participant, the surviving Spouse of a
Participant, or an alternate payee under a
qualified domestic relations order who is the
Spouse or former Spouse of a Participant may be
made in the form of a direct rollover to an
individual retirement account or annuity
described in Code 408 or to another qualified
plan described in Code 401(a); except that, a
qualified plan is not available as a rollover
alternative in the case of the surviving Spouse
of the Participant. A direct rollover will be
allowed only to the extent that the distribution
is an "eligible rollover distribution" (as
defined in Code 402(f)) (e.g., an eligible
rollover distribution does not include a
hardship distribution, a distribution that is
part of a series of installments payable over a
period of ten (10) years or more or a
distribution that is required under Code
401(a)(9)). The recipient of an eligible
rollover distribution must provide the Company
with the information necessary to accomplish the
direct rollover in such manner and in accordance
with such rules as may be prescribed for this
purpose by the Company (including by means of a
voice response or other electronic system under
circumstances authorized by the Company).
13.3 Missing Participants or
Beneficiaries. A Participant or Beneficiary
must maintain his/her most recent post office
address on file with the Company. Any
communication addressed to the Participant or
Beneficiary at the post office address on file
with the Company will be binding on the
Participant or Beneficiary for all purposes of
the Plan, and the Company is not obligated to
search for any Participant or Beneficiary. If a
Participant or
Beneficiary fails to claim any amount payable
under the Plan (or fails to cash any check drawn
on the disbursement account established for the
Plan), such amount will be forfeited by the
Participant or Beneficiary at such time as is
deemed appropriate by the Company (or, in the
case of any amount outstanding from the
disbursement account, such amount will escheat
to the state in accordance with applicable law,
and the Participant or Beneficiary thereafter
will have no further claim for such amount
against the Plan), or may be disposed of in such
other equitable manner as is deemed appropriate
by the Company. Any forfeited amounts shall be
applied to reduce Matching Contributions made to
the Plan. If a Participant or Beneficiary
claims a forfeited amount prior to termination
of the Plan, the value forfeited (measured as of
the date of the forfeiture) shall be restored to
the Participant or Beneficiary (without
adjustment for subsequent income or
appreciation). The Company shall make an
additional contribution to the Plan as necessary
to provide for the restoration.
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13.4 Distribution in Event of Certain Corporate
Transactions.
The Company or an Affiliate may from time to
time sell an interest in a subsidiary. The
Company or an Affiliate also may from time to
time sell a facility, division or service line
and, in connection with such sale, a Participant
may terminate his/her employment with the
Company and become an employee of the purchaser
of such facility, division or service line. In
either event, the Company will determine whether
a separation from service has occurred that
satisfies the requirements of Code
401(k)(2)(B)(i)(I) and thus whether there has
been a Termination of Employment that allows a
distribution from the Plan. If the Company
determines that there has not been a separation
from service, the Company, in its sole
discretion may nonetheless allow affected
Participants to receive a distribution of their
Account if it determines that either of the
following events has occurred:
(a) There has been a sale by the Company or an
Affiliate (provided it is a corporation) of
substantially all of the assets (within the
meaning of Code 409(d)(2)) used in a trade
or business to another corporation.
(b) There has been a sale by the Company or an
Affiliate (provided it is a corporation) of
an interest in a subsidiary (within the
meaning of Code 409(d)(3)).
A distribution under this provision will be
allowed only in the form of a single-sum payment
to be made as of the date established by the
Company that is not later than the last day of
the Plan Year following this event.
13.5 Distribution to Alternate Payee. An alternate
payee under a qualified domestic relations order
(each as defined in Code 414(p)) may elect to
receive a lump-sum distribution of the amount
assigned to such individual under the order as
soon as administratively practicable after the
Company has determined that the order is a
qualified domestic relations order (and all time
for appeal of such decision has expired), or as
of such later date as may be specified in the
order, without regard to whether such
distribution is made prior to the earliest
retirement age (as defined in Code 414(p)). If
the amount assigned to the alternate payee under
a qualified domestic relations order does not
exceed five thousand dollars ($5,000), such
amount will be paid to the alternate payee in a
lump-sum distribution as soon as
administratively practicable after the date
specified above and a delayed distribution
option will not be available to the alternate
payee.
13.6 Brokerage Fees. Any brokerage fees incurred to
accommodate any distribution in cash that
requires that shares of Company Stock be sold to
allow for such distribution (other than a
distribution of cash in lieu of a fractional
share) will be reduced to reflect any broker
fees incurred on the sale of Company Stock.
13.7 Put Option; Other Restrictions on Company Stock.
13.7.1 Put Option. If shares of
Company Stock
are either not readily tradable on an
established securities market or are subject to
a trading limitation when such shares are
distributed, such shares will be subject to a
"put option" as follows:
(a) The put option will be to the Company; provided
that, the Trustee may at its discretion cause the
Plan to voluntarily assume the rights and
obligations of the Company with respect to the put
option.
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(b) The put option may be exercised only by the
distributee
(whether the Participant, Beneficiary or
alternate payee), any person to whom the
shares have passed by gift from the
distributee or any person (including an
estate or distributee of an estate) to whom
the shares have passed on the death of the
distributee.
(c) The put option may be exercised only during
the fifteen (15) month period beginning on
the date the shares are distributed from
the Plan; provided that, the exercise
period will be extended by the number of
days during such period that the holder is
unable to exercise the put option because
the Company is prohibited from honoring the
put option by federal or state law.
(d) The put option may be exercised by written
notice of exercise to the Company made on
such form and in accordance with such rules
as may be prescribed for this purpose by
the Company.
(e) The Company will honor a put option by
paying to the holder the fair market value
either in a single lump sum or
substantially equal installments (bearing a
reasonable rate of interest and providing
adequate security to the holder) over a
period beginning within thirty (30) days
following the date the put option is
exercised and ending not more than five (5)
years after the date the put option is
exercised.
A "trading limitation" means a restriction under
any federal or state securities law or under any
agreement affecting the shares that would make
the shares not as freely tradable as shares not
subject to such restriction.
13.7.2 Other Restrictions. No other
options, buy-
sell arrangements, puts, call, rights of first
refusal or other restrictions on alienability
will attach to any shares of Company Stock
acquired with the proceeds of an Exempt
Loan and held in the Trust Fund or distributed
from the
Plan, whether or not this Plan continues to be an
employee stock ownership plan.
13.8 No Other Benefits. No benefits other than those
specifically provided for in the Plan document
will be provided under the Plan.
13.9 Source of Benefits. All benefits to which any
person becomes entitled under the Plan will be
provided only out of the Trust Fund and only to
the extent that the Trust Fund is adequate
therefor. The Participants and Beneficiaries
assume all risk connected with any decrease in
the market value of shares of Company Stock or
any other assets held under the Plan, and the
Company and its Affiliate do not in any way
guarantee the Trust Fund against any loss or
depreciation, or the payment of any amount, that
may be or become due to any person from the Trust
Fund.
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13.10 Incompetent Payee. If a person
entitled to payments hereunder is in the opinion
of the Company unable to care for his/her affairs
because of a mental or physical condition, any
payment due such person may be made to such
person's guardian, conservator, or other legal
personal representative upon furnishing the
Company with evidence satisfactory to the Company
of such status. Prior to the furnishing of such
evidence, the Company may cause payments due the
person to be made, for such person's use and
benefit, to any person or institution then in the
opinion of the Company caring for or maintaining
the person. The Company will have no liability
with respect to payments so made and will have no
duty to make inquiry as to the competence of any
person entitled to receive payments hereunder.
13.11 No Assignment or Alienation of
Benefits. The interests of any person who is
entitled to benefits under the Plan may not in
any manner whatsoever be assigned or alienated,
whether voluntarily or involuntarily, directly or
indirectly, except as expressly permitted under
Code 401(a)(13).
13.12 Payment of Taxes. The Trustee
may pay any estate, inheritance, income, or other
tax, charge, or assessment attributable to any
benefit payable hereunder which in the Trustee's
opinion it will be or may be required to pay out
of such benefit. The Trustee may require, before
making any payment, such release or other
document from any taxing authority and such
indemnity from the intended payee as the Trustee
will deem necessary for its protection.
13.13 Conditions Precedent. No
person will be entitled to a benefit until
his/her right to such benefit has been finally
determined by the Company nor until he/she has
submitted to the Company relevant data reasonably
requested by the Company, including, but not
limited to, proof of birth or death.
13.14 Delay of Distribution in Event
of Stock Dividend or Split. The Company may
direct that, no
distribution will be made between the record date and
the exdate of any stock dividend, stock split or
reverse stock split if the ex-date is after the record
date.
ARTICLE XIV
TRANSFER OR REEMPLOYMENT
14.1 Transfer of Employment.
14.1.1 Transfers To Salaried Plan. If a Participant in
this
Plan becomes a participant in the ADM Employee Stock
Ownership Plan for Salaried Employees, the Company
may arrange for transfer of his/her Account under
this Plan to a comparable account under the ADM
Employee Stock Ownership Plan for Salaried Employees.
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14.1.2 Transfers From Salaried Plan. If a
participant in the ADM Employee Stock Ownership Plan
for
Salaried Employees becomes an Eligible Employee,
he/she will become an Active Participant in this
Plan (and will cease to be a participant in the
ADM Employee Stock Ownership Plan for Salaried
Employees) effective for the first payroll
period that begins in the calendar month after
the date he/she becomes an Eligible Employee.
All elections and designations made under the
ADM Employee Stock Ownership Plan for Salaried
Employees (including contribution elections and
Beneficiary designations) will continue in
effect under this Plan until modified or revoked
in accordance with the terms of this Plan. The
Company also may arrange for transfer of his/her
account balance under such Plan to the
comparable Accounts under this Plan.
14.2 Effect of Reemployment. If a Participant is
reemployed by the Company or an Affiliate (while
it is an Affiliate) before he/she has received
full distribution of the balance of his/her
Account, entitlement to a distribution will
cease upon such reemployment, and will
recommence in accordance with the terms of the
Plan upon subsequent Termination of Employment.
ARTICLE XV
TRUST FUND
15.1 Composition. The assets of the Plan will be
held in trust by one or more Trustees appointed
by the Company under one or more trust
agreements. The Company may cause the assets
held under any trust agreement to be divided
into any number of parts for investment purposes
or any other purpose deemed necessary or
advisable for the proper administration of the
Plan.
15.2 No Diversion. The Trust Fund will be maintained
for the exclusive purpose of providing benefits
to Participants and their Beneficiaries and
defraying reasonable expenses of administering
the Plan. No part of the corpus or income of
the Trust Fund may be used for, or diverted to,
purposes other than for the exclusive benefit of
Employees or their Beneficiaries.
Notwithstanding the foregoing:
(a) If all or any portion of a contribution is
made as a result of a mistake of fact, the
Trustee will, upon written request of the
Company, return such portion of the
contribution to the Company within one year
after its payment to the Trust Fund.
Earnings attributable to such portion of
the contribution (or portion thereof) will
not be returned but will remain in the
Trust Fund, and the amount returned will be
reduced by any losses attributable to such
portion of the
contribution.
(b) Each contribution is conditioned upon the
deductibility of the contribution under
Code 404. To the extent the deduction is
disallowed, the Trustee will return such
contribution to the Company within one year
after the disallowance of the deduction;
however, earnings attributable to such
contribution (or disallowed portion
thereof) will not be returned but will
remain in the Trust Fund, and the amount
returned will be reduced by any losses
attributable to such contribution (or
disallowed portion thereof).
In the case of any such return of contribution,
the Company will cause such adjustments to be
made to the Accounts of Participants as it
considers fair and equitable under the
circumstances resulting in the return of such
contribution.
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15.3 Borrowing to Purchase Company Stock. The Plan
may engage in an Exempt Loan that satisfies the
following requirements:
(a) Lender. The Exempt Loan may be made by the
Company or any lender acceptable to the
Company, and may be made or guaranteed by a
party in interest (as defined in ERISA
3(14)) or a disqualified person (as defined
in Code 4975).
(b) Use of Loan Proceeds. The Exempt Loan must
be used within a reasonable time after
receipt to acquire shares of Company Stock
for the Unallocated Reserve, or to repay a
prior Exempt Loan, or for any combination
of the foregoing purposes.
(c) No Recourse Against Trust Fund. The Exempt
Loan must be without recourse against the
Trust Fund except that:
(1) The Company Stock acquired with the
proceeds of the Exempt Loan may be
pledged or otherwise used to secure
repayment of the Exempt Loan, and
(2) The Company Stock acquired with the
proceeds of a prior Exempt Loan which
is repaid with the proceeds of the
Exempt Loan may be pledged or
otherwise used to secure repayment of
the Exempt Loan, and
(3) Any cash contributions to the Plan
that are made for the purpose of
satisfying the obligations under the
Exempt Loan (and earnings thereon) may
be pledged or otherwise used to secure
repayment of the Exempt Loan, and
(4) The earnings attributable to shares of
Company Stock acquired with the
proceeds of an Exempt Loan may be used
to repay that Exempt Loan or any
renewal or extension thereof, and
(5) The earnings attributable to
unallocated shares of Company Stock
that were acquired with the proceeds
of an Exempt Loan may be pledged or
otherwise used as security for another
Exempt Loan.
(d) Term of Loan. The Exempt Loan must provide for
principal and interest to be paid over a
specific term.
(d) Release of Shares from Unallocated Reserve. Payments on
an
Exempt Loan will result in release of shares from the
Unallocated Reserve, with the number of shares
released each Plan Year being determined in
accordance with one of the following methods as
directed by the Company:
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(1) Principal and Interest Method. The number of
shares released from the Unallocated Reserve
will
equal the number of shares held in the
Unallocated Reserve immediately before
the release, multiplied by a fraction,
the numerator of which is equal to the
principal and interest payments made
on the Exempt Loan for the Plan Year
and the denominator of which is equal
to the total principal and interest
paid on the Exempt Loan for the
current Plan Year and scheduled to be
paid for all subsequent Plan Years.
The number of future years for which
principal and interest are payable
under the Exempt Loan must be
definitely ascertainable and must be
determined without taking into Account
any possible extensions or renewal
periods. If the interest rate under
the loan is variable, the amount of
future interest payable will be
calculated by using the interest rate
in effect on the last day of the
current Plan Year.
(2) Principal Only Method. The number of
shares of Company Stock released from
the Unallocated Reserve will be equal
to the number of shares held in the
Unallocated Reserve immediately before
the release multiplied by a fraction,
the numerator of which is equal to the
principal payments made on the Exempt
Loan for the Plan Year and the
denominator of which is equal to the
total principal outstanding on the
Exempt Loan. This method may be used
only if:
(A) The Exempt Loan provides for
principal and interest payments
at a cumulative rate that is not
less rapid at any time than level
annual payments of such amounts
for ten (10) years.
(B) If the Exempt Loan constitutes a
renewal, extension or refinancing
of a prior Exempt Loan, the sum
of the expired duration of the
prior Exempt Loan, the renewal
period, the extension period, and
the duration of the new Exempt
Loan does not exceed ten years.
(C) For purposes of this subsection,
the amount of interest included
in any payment is disregarded
only to the extent that it would
be determined to be interest
under standard loan amortization
tables.
(f) Interest Rate. The Exempt Loan must bear
interest at a fixed or variable rate that
is not in excess of a reasonable rate of
interest considering all relevant factors
(including, but not limited to, the amount
and duration of the loan, the security
given, the guarantees involved, the credit
standing of the Plan, the Company, and the
guarantors, and the generally prevailing
rates of interest).
(g) Default. The Exempt Loan must provide
that, in the event of default, the fair
market value of Company Stock and other
assets which can be transferred in
satisfaction of the loan must not exceed
the amount of the loan. If the lender is a
party in interest or disqualified person,
the loan must provide for a transfer of
Plan assets upon default only upon and to
the extent of the failure of the Plan to
satisfy the payment schedule of the Exempt
Loan.
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15.4 Funding Policy. The Company will adopt a
procedure, and revise it from time to time as it
considers advisable, for establishing and
carrying out a funding policy and method
consistent with the objectives of the Plan and
the requirements of ERISA.
15.5 Share Registration. Any shares of Company Stock
contributed by or purchased from the Company
will be registered in accordance with
requirements prescribed by the Securities and
Exchange Commission. The number of shares so
registered will be appropriately adjusted to
reflect any stock dividends, stock splits, or
other similar changes.
15.6 Purchase/Sale of Company Stock.
15.6.1 Purchases of Company Stock.
If it is
necessary to purchase Company Stock for the
Trust Fund, such purchase may be on the open
market or from the Company. If shares are
purchased from the Company, the purchase will be
made at the closing price of a share of Company
Stock on the New York Stock Exchange for the
business day immediately preceding the
transaction (as reported the next following
business day in The Wall Street Journal), and no
commission will be paid on any purchase from the
Company.
15.6.2 Sales of Company Stock. If it
is
necessary to convert shares of Company Stock
held in the Trust Fund to cash to provide for a
distribution or loan, or for any other reason
required under the Plan, conversion may be made
by exchanging such shares for cash (if any) then
held in the Trust Fund and credited to Accounts
(other than ESOP Diversified Subaccounts and
Predecessor Plan Subaccounts), or by selling
such shares on the open market or to the
Company. If shares are exchanged for cash then
held in the Trust Fund or sold to the Company,
the exchange or sale will be made at the closing
price of a share of Company Stock on the New
York Stock Exchange for the business day
immediately preceding the transaction (as
reported the next following business day in The
Wall Street Journal), and no commission will be
paid on any sale to the Company.
ARTICLE XVI
ADMINISTRATION
16.1 Administration.
16.1.1 Administrator. The Company is
the
"administrator" of the Plan, with authority to
control and manage the operation and
administration of the Plan and make all
decisions and determinations incident thereto.
Action
on behalf of the Company as administrator may be taken by
any of the following:
(a) Its Board of Directors (or a committee
thereof).
(b) Its Chief Executive Officer.
(c) Its Benefit Plans Committee.
(e) Any individual, committee, or entity to whom
responsibility
for the operation and administration of the Plan is
allocated to by action of one of the above.
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16.1.2 Third-Party Service Providers. The
Company may from time to time contract with or appoint a
recordkeeper or other third-party service
provider for the Plan. Any such recordkeeper or
other third-party service provider will serve in
a nondiscretionary capacity and will act in
accordance with directions given and/or
procedures established by the Company.
16.2 Certain Fiduciary Provisions. The Company is a
"named fiduciary" of the Plan with authority to
appoint additional named fiduciaries and to
allocate responsibilities among them, and the
power to appoint one or more investment managers
(as defined in ERISA 3(38)) to manage any assets
of the Plan (including the power to acquire and
dispose of such assets). If so permitted by the
Company in the appointment of a named fiduciary,
such named fiduciary may designate another
person to carry out any or all of the fiduciary
responsibilities of the named fiduciary; except
that, a named fiduciary may not designate
another person to carry out any responsibilities
relating to the management or control of Plan
assets other than in exercise of a power granted
under the trust agreement to appoint an
investment manager.
16.3 Payment of Expenses. The compensation and
expense reimbursements payable to any fiduciary,
or to any recordkeeper or other non-
discretionary service provider, any other fees
and expenses incurred in the operation or
administration of the Plan may be paid out of
the Trust Fund if not prohibited by ERISA. Such
other fees and expenses include, but are not
limited to, fees and expenses for investment,
education or advice services, premiums on bonds
required under ERISA and direct cost incurred by
the Company or any Affiliate to the extent that
the payment of such amounts out of the Trust
Fund is not prohibited by ERISA.
16.4 Evidence. Evidence required of anyone under the
Plan may be by certificate, affidavit, document,
or other instrument which the person acting in
reliance thereon considers to be pertinent and
reliable and to be signed, made, or presented by
the proper party.
16.5 Correction of Errors. Errors may occur in the
operation and administration of the Plan. The
Company reserves the power to cause such
equitable adjustments to be made to correct for
such errors as it considers appropriate. Such
adjustments will be final and binding on all
persons
16.6 Claims Procedure. The Company will establish a
claims procedure which must be followed by any
claimant as a condition to the receipt of
benefits or as a condition to
receipt of any other relief under or with
respect to the Plan. The claims procedure will
be set forth in written procedures (which may be
in the summary plan description) that will be
deemed to form a part of the Plan and are
incorporated by reference into the Plan.
16.7 Waiver of Notice. Any notice required hereunder
may be waived by the person entitled thereto.
16.8 Agent For Legal Process. The Company will be
the agent for service of legal process with
respect to any matter concerning the Plan
(unless it designates some other entity or
person as such agent).
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16.9 Indemnification. The Company and its Affiliates
jointly and severally agree to indemnify and
hold harmless, to the extent permitted by law,
each director, officer, and Employee against any
and all liabilities, losses, costs, or expenses
(including legal fees) of whatsoever kind and
nature that may be imposed on, incurred by, or
asserted against such person at any time by
reason of such person's services in the
administration of the Plan, but only if such
person did not act dishonestly, or in bad faith,
or in willful violation of the law or
regulations under which such liability, loss,
cost, or expense arises.
16.10 Exercise of Authority. The
Company and any person who has authority with
respect to the management, administration or
investment of the Plan may exercise that
authority in its/his/her full discretion,
subject only to the duties imposed under ERISA.
This discretionary authority includes, but is
not limited to, the authority to make any and
all factual determinations and interpret all
terms and provisions of this document (or any
other document established for use in the
administration of the Plan) relevant to the
issue under consideration. The exercise of
authority will be binding upon all persons; and
it is intended that the exercise of authority be
given deference in all courts of law to the
greatest extent allowed under law, and that it
not be overturned or set aside by any court of
law unless found to be arbitrary and capricious,
or made in bad faith.
16.11 Telephonic or Electronic
Notices and Transactions. Any notice that is
required to be given under the Plan to a
Participant or Beneficiary, and any action that
can be taken under the Plan by a Participant or
Beneficiary (including enrollments, changes in
deferral percentages, loans, withdrawals,
distributions, investment changes, consents,
etc.), may be by means of voice response or
other electronic system to the extent so
authorized by the Company and permitted under
the Code.
ARTICLE XVII
AMENDMENT, TERMINATION, MERGER
17.1 Amendment.
17.1.1 Amendment. The Company
expressly reserves the right to amend the Plan
in whole or in part at any time and from time to
time. An amendment may be adopted:
(a) By resolution of the Board of Directors.
(b) By signed writing of the Chief Executive
Officer.
(c) By signed writing of the Benefit Plans
Committee to the extent amendment authority
has been delegated by the Board of
Directors.
(d) By signed writing of any person to whom
amendment authority has been delegated by
action of one of the above.
No action by any person or body with amendment
authority
will constitute an amendment to the Plan unless
it is expressly designated as an amendment to
the Plan.
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17.1.2 Effect on Prior Operation of
Plan. An
amendment will not affect the operation of the
Plan or the rights of any Participant
retroactive to a date prior to the effective
date of the amendment. The Account of a
Participant (and all payment options and other
rights with respect thereto) will be determined
and paid in accordance with the terms of the
Plan in effect as of his/her Termination of
Employment, without regard to any subsequent
amendment to the Plan (including an amendment
with an effective date retroactive to a date
prior to Termination of Employment) unless such
amendment is required by law to be applied to
the Participant or the amendment expressly
provides that it will apply to Participants who
have already had a Termination of Employment.
The Company reserves the right to adopt an
amendment with a retroactive effective date to
the extent that retroactive application of the
amendment is required by law or for any other
reason deemed appropriate by the Company.
17.1.3 Effect on Vesting. An
amendment will not
reduce the vested percentage of a Participant
determined as of the later of the effective or
adoption date of the amendment. Further, if the
Company amends the vesting schedule under the
Plan, with respect to any Participant who has
three (3) or more years of vesting service
(determined using the elapsed time methodology
set forth in ERISA Reg. 2530.200b-9), the
Company either will permit such Participant to
elect to have his/her vested percentage computed
without regard to such amendment or will amend
the Plan to provide that the vested interest of
such Participant will be the greater of his/her
vested interest with regard to such amendment or
his/her vested interest without regard to such
amendment.
17.1.4 Effect on Protected Benefits.
An
amendment will not reduce any Account balance or
eliminate any optional form of benefit to the
extent to prohibited under Code 411(d)(6).
17.2 Permanent Discontinuance of Contributions. The
Company may completely discontinue contributions
under the Plan. No Employee will become a
Participant after such discontinuance and each
Participant will be fully vested in his/her
Account balance. Subject to the foregoing, all
of the provisions of the Plan will continue in
effect, and upon entitlement thereto
distributions will be made in accordance with
the terms of the Plan.
17.3 Termination. The Company may terminate the Plan
at any time and for any reason by action of its
Board of Directors.
After the Plan is terminated no further
contributions will be made. Distributions will
be made to Participants and Beneficiaries
promptly after the termination of the Plan, but
not before the earliest date permitted under the
Code and applicable regulations, and the Plan
and any related trust agreement or group annuity
contract will continue in force for the purpose
of making such distributions.
17.4 Partial Termination. If the Company determines
that there has been a partial termination of the
Plan, any Participant affected by such partial
termination will become vested in his/her
Account.
17.5 Merger, Consolidation, or Transfer of Plan
Assets. If the Plan is merged or consolidated
with any other plan, or if assets or liabilities
of the Plan are transferred to any other plan,
provision will be made so that each Participant
and Beneficiary would (if such other plan then
terminated) receive a benefit immediately after
the merger, consolidation, or transfer that is
equal to or greater than the benefit he/she
would have been entitled to receive immediately
before the merger, consolidation, or transfer
(if the Plan had then terminated).
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17.6 Deferral of Distributions. In the case of a
complete discontinuance of contributions to the
Plan or of a complete or partial termination of
the Plan, the Company or the Trustee may defer
any distribution of benefits to Participants and
Beneficiaries with respect to which such
discontinuance or termination applies (except
for distributions which are required to be made
under Code
401(a)(9)) until appropriate adjustment of
Accounts to
reflect taxes, costs, and expenses, if any,
incident to such discontinuance or termination.
ARTICLE XVIII
PREDECESSOR PLAN ACCOUNTS
18.1 Transfers from Other Plans. The Company may
from time to time arrange for the merger of
another qualified defined contribution plan into
this Plan, or may accept the transfer of account
balances from a qualified plan maintained by a
Predecessor Employer to this Plan. A
Predecessor Plan Subaccount will be maintained
to reflect amounts attributable to any merger or
transfer (and more than one Predecessor Plan
Subaccount may be maintained with respect to a
given merger or transfer as deemed appropriate
by the Company to Account for different
contribution sources or for any other reason).
18.2 Optional Forms of Payment. All optional forms
of payment available under the Predecessor Plan
will be available under this Plan for a
Predecessor Plan Subaccount; except that, any
hardship standards on withdrawals will be as
specified in this Plan, and optional forms of
payment may be modified or eliminated to the
extent so permitted under Code
411(d)(6).
18.3 Special Rules if Survivor Annuity Requirements
Apply.
18.3.1 To Whom this Section Applies.
This Section applies with respect to a
Participant if:
(a) The Predecessor Plan was a
money purchase pension plan and after the
transfer of the Predecessor Plan Account to
this Plan the Predecessor Plan Subaccount
remains subject to the survivor annuity
requirements of Code 417; or
(b) A life annuity is an available
optional form of payment with respect to a
Predecessor Plan Subaccount, the
Participant elects to receive a life
annuity and the Participant has a Spouse on
the pension commencement date.
18.3.2 Payment Form. A Participant to whom this
Section
applies will have his/her Predecessor Plan Subaccount
applied to purchase a life annuity if the Participant
does not have a Spouse on his/her pension
commencement date, or a qualified joint and survivor
annuity if the Participant does have a Spouse on
his/her pension commencement date, unless the
Participant elects an optional form of payment. A
Participant may elect to waive the life annuity or
qualified joint and survivor annuity and instead
elect to receive have his/her Predecessor Plan
Subaccount paid in any optional form of payment
available with respect to such Subaccount.
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For purposes of this Section, a "life annuity" is a
an
annuity providing equal periodic payments to the
Participant with the last such payment due for
the period in which the Participant dies; and a
"qualified joint and survivor annuity" is an
annuity providing equal periodic payments to the
Participant with the last such payment due for
the period in which the Participant dies, but
with the provision that if the Participant is
survived by his/her Spouse on the pension
commencement date, fifty percent (50%) of the
period payment will be continued to such Spouse
with the last such period payment due for the
period in which the Spouse dies.
18.3.3 Spousal Consent Requirement.
If a
Participant elects to waive the qualified joint
and survivor annuity and elects to have his/her
Account balance paid in an optional form of
payment, the election will not take effect
unless:
(a) The election specifically designates a specific
optional payment form and a specific joint
annuitant or Beneficiary, if applicable,
with respect thereto (these designations
cannot be changed without further consent
of the Spouse).
(b) The Spouse consents in writing to the election.
(c) The Spouse's consent acknowledges the effect of
the
election.
(d) The Spouse's consent is witnessed by a
notary public or an authorized
representative of the Plan.
Consent of the Spouse will be deemed to have
been obtained if it is established to the
satisfaction of the Company that such consent
cannot be obtained because the Spouse cannot be
located or because of such other circumstances
as may be prescribed by the Secretary of the
Treasury. A consent by a Spouse will be
effective only with respect to such Spouse, and
cannot be revoked.
18.3.4 Conditions Relating to
Election of
Options. A Participant will be provided with a
written explanation of the terms and conditions
of the life annuity or qualified joint and
survivor annuity. The written explanation will
include an explanation of the Participant's
right to waive the life annuity or qualified
joint and survivor annuity and the effect of
such waiver, the Participant's right to have at
least thirty (30) days to consider such waiver,
the Participant's right to revoke a waiver and
the effect of such revocation, and the rights of
the Participant's Spouse with respect thereto.
The waiver of a life annuity or qualified joint
and survivor annuity and the election of an
optional payment form must be made on such form
and in accordance with such rules as may be
prescribed for this purpose by the Company
(including by means of voice response or other
electronic system under circumstances authorized
by the Company). The Participant must designate
on such form the specific optional payment form
and, if applicable, the specific joint annuitant
or Beneficiary with respect thereto. The waiver
and election may be revoked by the Participant
prior to the pension commencement date or, if
later, prior to the end of the seven (7) day
period that begins the day after the written
explanation is provided to the Participant.
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18.3.5 Qualified Preretirement
Survivor Annuity.
If a Participant to whom this Section applies
dies before commencement of the life annuity or
qualified joint and survivor annuity, and if the
Participant has a Spouse on the date of death,
the Account balance of the Participant will be
applied to purchase an annuity for the life of
the Spouse unless the Spouse files a written
election of some other form of payment after the
Participant's death and prior to the due date of
the first benefit payment to the Spouse.
ARTICLE XIX
MISCELLANEOUS PROVISIONS
19.1 Special Top-Heavy Rules. The following
provisions apply in any Plan Year in which the
Plan is top-heavy.
19.1.1 Minimum Contribution. If the
Plan is top-
heavy for a Plan Year, a minimum contribution
will be made for such Plan Year on behalf of
each Active Participant who is not a Key
Employee and who is employed with the Company or
an Affiliate on the last day of such Plan Year.
The minimum contribution will equal that
percentage of the Participant's compensation for
the Plan Year which is the smaller of:
(a) Three percent (3%).
(b) The percentage which is the largest
percentage of compensation allocated to any
Key Employee from employer contributions
for such Plan Year.
The Before-Tax and Matching Contributions made
on behalf of non-key Employees will not be
counted toward the minimum contribution required
under this Section (however, such contributions
made on behalf of Key Employees will be counted
for purposes of determining the percentage in
(b)).
19.1.2 Participation under Defined
Benefit Plan
and Defined Contribution Plan. If the Plan is
top-heavy for a Plan Year, Code 415(e) will be
modified for such Plan Year by substituting
"1.0" for "1.25" in paragraphs (2)(B) and (3)(B)
thereof and by substituting "$41,500" for
"$51,875" in Code 415(e)(6)(B)(i). However,
this Section will not apply with respect to any
Plan Year beginning after December 31, 1999.
19.1.3 Definitions. The following
terms have the
following meanings in this Section:
(a) "Compensation" means compensation as
defined in Sec. 6.3.3, but disregarding any
amounts in excess of the limit in effect
under Code 401(a)(17).
(b) "Determination Date" means the
last day of
the preceding Plan Year.
(c) "Determination Period" means
the Plan Year
in which the applicable Determination Date
occurs and the four preceding Plan Years.
(c) "Key Employee" means any Employee or former
Employee of the Company or an Affiliate who is
defined as such under Code 416(i).
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(e) "Required Aggregation Group" means
each
qualified plan of the Company or an Affiliate
in which
at least one Key Employee participates in
the Plan Year that contains the
Determination Date or any of the four
preceding Plan Years, and any other
qualified plan of the Company or an
Affiliate that enables such a Plan to meet
the requirements of Code 401(a)(4) and
410.
(f) "Permissive Aggregation Group"
means the
Required Aggregation Group plus any other
qualified plan of the Company or an
Affiliate which, when consolidated as a
group with the Required Aggregation Group,
would continue to satisfy the requirements
of Code 401(a)(4) and 410.
(g) "Present Value" for purposes
of
determining whether a defined benefit plan
is TopHeavy, will be calculated using the
actuarial assumptions specified in the
defined benefit plan for this purpose.
(h) "Top-Heavy" means the condition of the Plan
(or of all within the required aggregation
group or permissive aggregation group) that
would exist if, as of the Determination
Date for the Plan Year, the Account
balances plus the present value of the
accrued benefits of the Key Employees
exceeded sixty percent (60%) of the Account
balances plus the present value of the
accrued benefits of all Employees. For
purposes of making this calculation:
(1) The Account balances
and the present value of accrued
benefits will be determined as of the
most recent Valuation Date that falls
within the 12-month period ending on
the Determination Date.
(2) The Account balances and accrued
benefits of a Participant who is not a
Key Employee but who was
a Key Employee in a prior year will be
disregarded.
(3) The Account balances of any Employees
who has not been credited with at
least one Hour of Service with the
Company or an Affiliate at any time
during the five (5)-year period ending
on the Determination Date will be
disregarded.
(4) For purposes of
determining if a defined benefit plan
included in a Required Aggregation
Group of which this Plan is a part is
Top-Heavy, the accrued benefit to any
Employee (other than a Key Employee)
will be determined under the method
that is used for accrual purposes
under all defined benefit plans
maintained by the Company or an
Affiliate or, if there is no such
method, as if such benefit accrued not
more rapidly than the lowest accrual
rate permitted under Code
411(b)(1)(C).
(i) If an individual has not
performed
services for the employer at any time
during the five-year period ending on the
determination date with respect to a Plan
Year, any Account balance or accrued
benefit for such individual will not be
taken into Account for such Plan Year.
19.1.4 Exception For Collective
Bargaining Unit.
The minimum contribution requirement described
above will not apply to any Employee covered by
the provisions of a collective bargaining
agreement.
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19.2 Qualified Military Service. The Plan will
comply with the requirements of Code 414(u)
with respect to each Participant who is absent
from service because of "qualified military
service" (as defined in Code 414(u)(5))
provided that he/she returns to employment
within such period after the end of the
qualified military service as is prescribed
under Code 414(u) (or other federal law cited
therein). Accordingly, any such Participant will
be permitted to make additional Before-Tax
Contributions after his/her reemployment, will
receive Matching Contributions on such Before-
Tax Contributions, and will receive service
credit for the period of qualified military
service as required under Code 414(u).
19.3 Insurance Company Not Responsible for Validity
of Plan. Any insurance company that issues a
contract under the Plan will not have any
responsibility for the validity of the Plan.
An insurance company to which an application may be
submitted hereunder may accept such application
and will have no duty to make any investigation
or inquiry regarding the authority of the
applicant to make such application or any
amendment thereto or to inquire as to whether a
person on whose life any contract is to be
issued is entitled to such contract under the
Plan.
19.4 No Guarantee of Employment. The Plan is not an
employment agreement, and participation herein
does not constitute a guarantee of employment
with the Company or any Affiliate.
19.5 Use of Compounds of Word "Here". Use of the
words "hereof", "herein", "hereunder", or
similar compounds of the word
"here" will mean and refer to the entire Plan unless
the
context clearly indicates to the contrary.
19.6 Construed as a Whole. The Plan is to be
construed as a whole in such manner as to carry
out its purpose and a given provision is not to
be construed separately without relation to the
context.
19.7 Headings. Headings at the beginning of Articles
and Sections are for convenience of reference,
are not considered a part of the text of the
Plan, and will not influence its construction.
43
PAGE 44
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX A
The participating location(s) hereunder and the
coverage date of such location(s) are as specified on
the List of Participating Locations for the Plan.
The following sets forth the terms that apply to each
participating location hereunder.
Before-Tax An Active Participant under
this
Contributions: Appendix may elect to
reduce his/her
Certified Earnings for a
payroll
period by not more than
ten percent (10%) in order
to receive a Before-Tax
Contribution.
Matching Schedule: An Active Participant
under this
Appendix will receive the
following Matching
Contributions:
Prior to January 1, 1999:
Matching Contributions
will be made on a monthly
(or more frequent) basis,
with the amount of the
Matching Contributions for
each month determined
under the following
schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
month
ending within the
month
The first 4%
The next 2% 100%
Above 6% 50%
None
Starting January 1,
1999: Matching
Contributions will be
made on a
monthly (or more frequent)
basis, with the amount of
the Matching Contributions
for each Plan Year
determined under the
following schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
Plan Year
ending within the
Plan
Year
The first 4%
The next 2% 100%
Above 6% 50%
None
44
PAGE 45
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX B
The participating location(s) hereunder and the
coverage date of such location(s) are as specified
on the List of Participating Locations for the Plan.
The following sets forth the terms that apply to
each participating location hereunder.
Before-Tax An Active Participant
under this
Contributions: Appendix may elect to
reduce his/her
Certified Earnings for a
payroll period by not more
than four percent (4%) in
order to receive a Before-
Tax Contribution.
Matching Schedule: An Active Participant
under this
Appendix will receive the
following Matching
Contributions:
Prior to January 1, 1999:
Matching Contributions
will be made on a monthly
(or more frequent) basis,
with the amount of the
Matching Contributions for
each month determined
under the following
schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
month
ending within the
month The first 2%
Above 2% 100%
None
Starting January 1, 1999:
Matching Contributions
will be made on a monthly
(or more frequent) basis,
with the amount of the
Matching Contributions for
each Plan Year determined
under the following
schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
Plan Year
ending within the
Plan
Year
The first 2%
Above 2% 100%
None
45
PAGE 46
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX C
The participating location(s) hereunder and the
coverage date of such location(s) are as specified
on the List of Participating Locations for the Plan.
The following sets forth the terms that apply to
each participating location hereunder.
Before-Tax An Active Participant
under this
Contributions: Appendix may elect to
reduce his/her
Certified Earnings for a
payroll period by not more
than six percent (6%) in
order to receive a Before-
Tax Contribution.
Matching Schedule: An Active Participant
under this
Appendix will receive the
following Matching
Contributions:
Prior to January 1, 1999:
Matching Contributions
will be made on a monthly
(or more frequent) basis,
with the amount of the
Matching Contributions for
each month determined
under the following
schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
month
ending within the
month
The first 2%
The next 4% 100%
Above 6% 50%
N/A
Starting January 1, 1999:
Matching Contributions
will be made on a monthly
(or more frequent) basis,
with the amount of the
Matching Contributions for
each Plan Year determined
under the following
schedule:
For Before-Tax The
Matching
Contributions
Contribution will
representing the be the
following
following percent
percent of the
of Certified
Participant's
Earnings for
Before-Tax
payroll periods
Contributions for
ending within the
payroll periods
Plan Year
ending within the
Plan
Year
The first 2%
The next 4% 100%
Above 6% 50%
N/A
46
PAGE 47
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX D
The Company hired certain employees on February 1, 1997,
in connection with a joint venture arrangement with
Countrymark Cooperative, Inc.
This Appendix applies to the following Employees:
Hourly-wage employees at the Locust Point Elevator
in Baltimore, Maryland, who are covered by the
collective bargaining agreement in effect at that
location with the International Longshoremen's
Association, Local No. 2004.
Hourly-wage employees at the Beech Grove Grain
Elevator in Beech Grove, Indiana, who are covered by
the collective bargaining agreement in effect at that
location with the Chauffeurs, Teamsters, Warehousemen
and Helpers, Local No. 135.
The terms and conditions of participation of such
employees will
be as set forth in this Appendix to the extent that
such terms and conditions differ from the general
terms and conditions of the Plan.
Eligibility and
Service Credit:
Eligibility: An Employee covered by this
Appendix
will be eligible to
participate in accordance
with Article III; except
that, such an Employee may
not become a Participant
prior to February 1, 1997.
Continued eligibility under
this Plan (and continued
eligibility under this
Appendix) is subject to
negotiation with the
collective bargaining unit;
thus, an Active Participant
covered by this Appendix will
cease to participate upon
expiration of the above-
described collective
bargaining agreement (except
that for this purpose an
agreement will be deemed to
continue after its formal
expiration for so long as
collective bargaining
negotiations continue).
Service Credit: An Employee covered by this
Appendix
will receive credit under
this Plan for his/her service
prior to February 1, 1997, as
follows:
Eligibility. The
Employee will
receive credit from his/her last date of hire with
Countrymark Cooper-ative, Inc. for purposes of
determining his/her eligibility to participate in this
Plan in accordance with the List of Predecessor
Employers for the Plan.
Vesting. The Employee
will
receive credit from
his/her last date of hire
with Countrymark Cooper-
ative, Inc. for purposes
of determining whether
he/she is vested under
this Plan. In the case of
an Employee who is a
former participant in the
Countrymark Bargaining
Unit Employees Savings
Plan, such prior service
credit will not be less
than his/her "Service"
under such plan as of
February 1, 1997.
Contributions:
Employee An Active Participant
covered by this
Contributions: Appendix may elect to
reduce his/her
Certified Earnings for a
payroll
period by any whole
percent, but not less than
one percent (1%) or more
than fifteen percent (15%)
in order to receive a
Before-Tax Contribution.
An Active Participant
covered by this Appendix
also may make an After-Tax
Contribution for a payroll
period by means of payroll
deduction in any whole
percent, but not less than
one percent (1%) or more
than fifteen percent (15%)
of his/her Certified
Earnings for the payroll
period.
Before-Tax and After-Tax
Contributions are subject
to the applicable limits
set forth in Article VI.
Employer Matching Contributions.
Contributions:
A Matching Contribution
will be made for each month
on behalf of each Active
Participant covered by this
Appendix who receives a
Before-Tax Contribution or
makes an After-Tax
Contribution for any
payroll period ending
within such month. The
amount of the Matching
Contribution will equal
fifty cents (50 cents) for each
one
dollar ($1.00) contributed as a BeforeTax or After-
Tax Contribution, but disregarding any such
contributions in excess of six percent (6%) of
Certified Earnings for
payroll periods ending
within the month (thus,
the maximum Matching
Contribution per month is
three percent (3%) of
Certified Earnings for
payroll periods ending
within the month).
Non-Matching
Contributions.
A Participant covered by
this Appendix will not
receive Non-Matching
Contributions under this
Plan.
Subaccounts: Contributions made
pursuant to the
terms of this Appendix
will be credited to a
"Countrymark Predecessor
Plan Subaccount"
established under the
Plan, consisting of a
Countrymark Before-Tax
Subaccount, Countrymark
After-Tax Subaccount and
Countrymark Matching
Subaccount.
Investment of A Participant will be
allowed to
Subaccounts: direct the investment of
his/her
Countrymark Predecessor
Plan Subaccount in the
investment options
selected or established by
the Company for this
purpose in accordance with
Sec. 8.2 (applicable to
Predecessor Plan
Accounts).
A Participant will be
allowed to borrow from
his/her Countrymark
Predecessor Plan
Subaccount in accordance
with the Notice of Loan
Terms and Procedures -
Country-mark Predecessor
Plan Subaccounts.
Vesting: A Participant covered by
this Appendix
will at all times be one
hundred percent (100%)
vested in his/her
Countrymark Before-Tax
Subaccount and Countrymark
After-Tax Subaccount, and
will become one hundred
percent (100%)
vested in his/her Countrymark Matching
Subaccount upon the first to occur of
the following:
Completion of five (5) Years of
Vesting Service.
Attainment of Normal Retirement
Age while employed with the Company or
an Affiliate.
Becoming permanently disabled
while employed with the Company or an
Affiliate (for this purpose an
individual will be considered to be
"permanently disabled" only if a
determination is made by the Social
Security Administration within 12
months after his/her last day of work
that he/she is disabled and that the
disability started on or before the
last day of work).
Death while employed with the
Company or an Affiliate.
Prior to the occurrence of any of the
above, the vested percentage of the
Participant in his/her Countrymark
Matching Subaccount will be determined
under the following schedule:
Completed Years Vested
of Vesting Service Percentage
0 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
The portion of a Countrymark Matching
Subaccount that is not vested will be
forfeited by the Participant and
transferred to a "Forfeiture Subaccount"
as of the earlier of the following:
The last day of the Plan Year in
which the Participant incurs his/her
fifth consecutive One-Year Break in
Service.
The date on which the vested
portion of the Participant's
Countrymark Matching Subaccount is
distributed to the Participant or
his/her Beneficiary (and, for this
purpose, if a Participant is zero
percent (0%) vested in his/her
Countrymark Matching Subaccount,
he/she will be deemed to have received a
distribution at Termination of
Employment).
If a portion of a Countrymark Matching
Subaccount is forfeited and the
Participant is subsequently reemployed
before incurring five consecutive One-
Year Breaks in Service, a Countrymark
Matching Subaccount will be reinstated
for the Participant as of the last day
of the Plan Year in which he/she
completes one year of Vesting Service,
with an initial balance equal to the
amount forfeited (without earnings or
losses). At any time after such
reinstatement, the vested amount in the
Countrymark Matching Subaccount will be
determined by (i) adding back any
amount previously distributed from the
Subaccount, (ii) applying the
applicable vested percentage to the
result, and (iii) subtracting out the
amount previously distributed from the
Subaccount.
The balance of the Forfeiture
Subaccount will be applied to reduce
future contributions made to the Plan
by the Company (not limited to
contributions made under this
Appendix).
A Participant's "Vesting Service" is
equal to his/her total years of service
with the Company measured from date of
hire, and including any period of
absence of less than 12 months (other
an as a result of a Termination of
Employment), subject to the prior
service credit granted above under
"Eligibility and Service Credit".
A "One-Year Break in Service" is a Plan
Year in which a Participant has five
hundred (500) or fewer Hours of
Service.
Withdrawals and
Distributions:
Withdrawals During A Participant will be allowed to make
Employment: withdrawals from his/her Countrymark
Predecessor Plan Subaccount as
follows:
Countrymark After-Tax Subaccount. A
Participant may withdraw amounts from
his/her Countrymark After-Tax
Subaccount at any time and from time
to time. The amount withdrawn may not exceed the total amount of
the AfterTax Contributions made by the Participant minus amounts
previously withdrawn (or the full value of the Countrymark After-
Tax Subaccount, if less).
Countrymark Before-Tax
Subaccount. A Participant may
withdraw amounts from his/her
Countrymark Before-Tax Subaccount in
the event of a hardship prior to age
fifty nine and one-half (59 1/2) in
accordance with Sec. 10.1 and for any
reason after that age in accordance
with Sec. 10.2.
Countrymark Matching Subaccount. A
Participant may withdraw amounts from
his/her Countrymark Matching
Subaccount for any reason after age
fifty nine and one-half (59 1/2) in
accordance with Sec. 10.2; provided
that, amounts may not be withdrawn
unless and until the Participant is one
hundred percent (100%) vested in such
Subaccount. Withdrawals from a
Countrymark Matching Subaccount will not
be allowed prior to age fifty nine and
one-half (59 1/2).
A withdrawal may be allowed no more than
once in any calendar quarter. Withdrawal
requests must be made in accordance with
rules and procedures adopted for this
purpose by the Company (including by
means of voice response or other
electronic system under circumstances so
authorized by the Company).
All withdrawals will be in cash.
Distributions After A Participant will be entitled to a
Termination of distribution of the vested balance of
Employment: his/her Countrymark Predecessor Plan
Subaccount following his/her Termination
of Employment in accordance with Article
XI.
Distribution requests must be made in
accordance with rules and procedures
adopted for this purpose by the Company
(including by means of voice response or
other electronic system under
circumstances so authorized by the
Company).
All distributions will be in cash.
47
PAGE 48
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX E
The Company hired certain employees on February 1, 1997, in
connection with a joint venture arrangement with Countrymark
Cooperative, Inc.
This Appendix applies to the following Employees:
Hourly-wage employees at the Toledo Grain Terminal in
Toledo, Ohio, who are covered by the collective bargaining
agreement in effect at that location with the International
Longshoremen's Association, Local No. 1955.
Hourly-wage employees at the Ottawa Lake Grain Terminal in
Ottawa, Michigan who are covered by the collective bargaining
agreement in effect at that location with the American Federation
of Gain Millers, Local No. 58.
Hourly-wage employees at the Grafton Grain Terminal in
Grafton, North Dakota, who are covered by the collective
bargaining agreement in effect at that location with the American
Federation of Grain Millers International Union.
Hourly-wage employees at the Saginaw Grain Terminal in
Saginaw, Michigan, who are covered by the collective bargaining
agreement in effect at that location with the Teamsters, Local No.
486.
The terms and conditions of participation of such employees will
be as set forth in this Appendix to the extent that such terms and
conditions differ from the general terms and conditions of the
Plan.
Eligibility and
Service Credit:
Eligibility: An Employee covered by this Appendix
will be eligible to participate in
accordance with Article III; except that,
such an Employee may not become a
Participant prior to February 1, 1997.
Continued eligibility under this Plan (and
continued eligibility under this Appendix)
is subject to negotiation with the
collective bargaining unit; thus, an
Active Participant covered by this
Appendix will cease to participate upon
expiration of the above-described
collective bargaining agreement (except
that for this purpose an agreement will be
deemed to continue after its formal
expiration for so long as collective
bargaining negotiations continue).
Service Credit: An Employee covered by this Appendix
will receive credit under this Plan for
his/her service prior to February 1, 1997,
as follows:
Eligibility. The Employee will
receive credit from his/her last date of hire with Countrymark
Cooper-ative, Inc. for purposes of determining his/her eligibility
to participate in this Plan in accordance with the List of
Predecessor Employers for the Plan.
Vesting. The Employee will
receive credit from his/her last date
of hire with Countrymark Cooper-ative,
Inc. for purposes of determining
whether he/she is vested under this
Plan. In the case of an Employee who
is a former participant in the
Countrymark Bargaining Unit Employees
Savings Plan, such prior service credit
will not be less than his/her "Service"
under such plan as of February 1, 1997.
Contributions:
Employee An Active Participant covered by this
Contributions: Appendix may elect to reduce his/her
Certified Earnings for a payroll
period by any whole percent, but not
less than one percent (1%) or more than
fifteen percent (15%) in order to
receive a Before-Tax Contribution. An
Active Participant covered by this
Appendix also may make an After-Tax
Contribution for a payroll period by
means of payroll deduction in any whole
percent, but not less than one percent
(1%) or more than fifteen percent (15%)
of his/her Certified Earnings for the
payroll period.
Before-Tax and After-Tax Contributions
are subject to the applicable limits
set forth in Article VI.
Employer Matching Contributions.
Contributions:
A Participant covered by this Appendix
will not receive Matching Contributions
under the Plan.
Non-Matching Contributions.
A Participant covered by this Appendix
will receive Non-Matching Contributions
under the Plan at such rate as is set
forth in the collective bargaining
agreement covering such Participant.
Subaccounts: Contributions made pursuant to the
terms of this Appendix will be credited
to a "Countrymark Predecessor Plan
Subaccount" established under the Plan,
consisting of a Countrymark Before-Tax
Subaccount, Countrymark After-Tax
Subaccount and Countrymark Non-Matching
Sub-account.
Investment of A Participant will be allowed to
Subaccounts: direct the investment of his/her
Countrymark Predecessor Plan Subaccount
in the investment options selected or
established by the Company for this
purpose in accordance with Sec. 8.2
(applicable to Predecessor Plan
Accounts).
A Participant will be allowed to borrow
from his/her Countrymark Predecessor
Plan Subaccount in accordance with the
Notice of Loan Terms and Procedures -
Country-mark Predecessor Plan
Subaccounts.
Vesting: A Participant covered by this Appendix
will at all times be one hundred
percent (100%) vested in his/her
Countrymark Before-Tax Subaccount and
Countrymark After-Tax Subaccount, and
will become one hundred percent (100%)
vested in his/her Countrymark Non
Matching Subaccount upon the first to
occur of the following:
Completion of five (5) Years of
Vesting Service.
Attainment of Normal Retirement
Age while employed with the Company or
an Affiliate.
Becoming permanently disabled
while employed with the Company or an
Affiliate (for this purpose an
individual will be considered to be
"permanently disabled" only if a
determination is made by the Social
Security Administration within 12
months after his/her last day of work
that he/she is disabled and that the
disability started on or before the
last day of work).
Death while employed with the
Company or an Affiliate.
Prior to the occurrence of any of the
above, the vested percentage of the
Participant in his/her Countrymark Non
Matching Subaccount will be determined
under the following schedule:
Completed Years Vested
of Vesting Service Percentage
0 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
The portion of a Countrymark NonMatching
Subaccount that is not vested will be
forfeited by the Participant and
transferred to a "Forfeiture Subaccount"
as of the earlier of the following:
The last day of the Plan Year in
which the Participant incurs his/her
fifth consecutive One-Year Break in
Service.
The date on which the vested
portion of the Participant's
Countrymark Non-Matching Sub-account is
distributed to the Participant or
his/her Beneficiary (and, for this
purpose, if a Participant is zero
percent (0%) vested in his/her
Countrymark Non-Matching Subaccount,
he/she will be deemed to have received a distribution at
Termination of
Employment).
If a portion of a Countrymark Non
Matching Subaccount is forfeited and
the Participant is subsequently
reemployed before incurring five
consecutive One-Year Breaks in Service,
a Countrymark Non-Matching Subaccount
will be reinstated for the Participant
as of the last day of the Plan Year in
which he/she completes one year of
Vesting Service, with an initial
balance equal to the amount forfeited
(without earnings or losses). At any
time after such reinstatement, the
vested amount in the Countrymark Non-
Matching Subaccount will be determined
by (i) adding back any amount
previously distributed from the
Subaccount, (ii) applying the
applicable vested percentage to the
result, and (iii) subtracting out the
amount previously distributed from the
Subaccount.
The balance of the Forfeiture
Subaccount will be applied to reduce
future contributions made to the Plan
by the Company (not limited to
contributions made under this
Appendix).
A Participant's "Vesting Service" is
equal to his/her total years of service
with the Company measured from date of
hire, and including any period of
absence of less than 12 months (other
an as a result of a Termination of
Employment), subject to the prior
service credit granted above under
"Eligibility and Service Credit".
A "One-Year Break in Service" is a Plan
Year in which a Participant has five
hundred (500) or fewer Hours of
Service.
Withdrawals and
Distributions:
Withdrawals During A Participant will be allowed to make
Employment: withdrawals from his/her Countrymark
Predecessor Plan Subaccount as
follows:
Countrymark After-Tax Subaccount. A
Participant may withdraw amounts from
his/her Countrymark After-Tax
Subaccount at any time and from time
to time. The amount withdrawn may not exceed the total amount of
the AfterTax Contributions made by the Participant minus amounts
previously withdrawn (or the full value of the Countrymark After-
Tax Subaccount, if
less).
Countrymark Before-Tax Subaccount.
A Participant may withdraw amounts
from his/her
Countrymark Before-Tax Subaccount in the event of a hardship prior
to age fifty nine and one-half (59 1/2) in accordance with Sec. 10.1
and for any reason after that age in accordance with Sec. 10.2.
Countrymark Non-Matching Subaccount.
A Participant may withdraw amounts
from his/her Countrymark Non-Matching
Subaccount for any reason after age
fifty nine and one-half (59 1/2) in
accordance with Sec. 10.2; provided
that, amounts may not be withdrawn
unless and until the Participant is
one hundred percent (100%) vested in
such Subaccount. Withdrawals from a
Countrymark NonMatching Subaccount
will not be allowed prior to age fifty
nine and one-half (59 1/2).
A withdrawal may be allowed no more
than once in any calendar quarter.
Withdrawal requests must be made in
accordance with rules and procedures
adopted for this purpose by the
Company (including by means of voice
response or other electronic system
under circumstances so authorized by
the Company).
All withdrawals will be in cash.
Distributions After A Participant will be entitled to a
Termination of distribution of the vested balance of
Employment: his/her Countrymark Predecessor Plan
Sub-account following his/her
Termination of Employment in
accordance with Article XI.
Distribution requests must be made in
accordance with rules and procedures
adopted for this purpose by the
Company (including by means of voice
response or other electronic system
under circumstances so authorized by
the Company).
All distributions will be in cash.
48
PAGE 49
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX F
The Company hired certain employees on February 1, 1997, in
connection with a joint venture arrangement with Countrymark
Cooperative, Inc.
This Appendix applies to houly-wage employees at the Fostoria
Grain Terminal in Fostoria, Ohio, who are covered by the
collective bargaining unit in effect at that location effective
March 1, 1995.
The terms and conditions of participation of such employees will
be as set forth in this Appendix to the extent that such terms
and conditions differ from the general terms and conditions of
the Plan.
Eligibility and
Service Credit:
Eligibility: An Employee covered by this Appendix
will be eligible to participate in
accordance with Article III; except that,
such an Employee may not become a
Participant prior to February 1, 1997.
Continued eligibility under this Plan (and
continued eligibility under this Appendix)
is subject to negotiation with the
collective bargaining unit; thus, an
Active Participant covered by this
Appendix will cease to participate upon
expiration of the above-described
collective bargaining agreement (except
that for this purpose an agreement will be
deemed to continue after its formal
expiration for so long as collective
bargaining negotiations continue).
Service Credit: An Employee covered by this Appendix
will receive credit under this Plan for
his/her service prior to February 1, 1997,
as follows:
Eligibility. The Employee will
receive credit from his/her last date of hire with Countrymark
Cooper-ative, Inc. for purposes of determining his/her eligibility
to participate in this Plan in accordance with the List of
Predecessor Employers for the Plan.
Vesting. The Employee will
receive credit from his/her last date
of hire with Countrymark Cooper-ative,
Inc. for purposes of determining
whether he/she is vested under this
Plan. In the case of an Employee who
is a former participant in the
Countrymark Bargaining Unit Employees
Savings Plan, such prior service credit
will not be less than his/her "Service"
under such plan as of February 1, 1997.
Contributions:
Employee An Active Participant covered by this
Contributions: Appendix may elect to reduce his/her
Certified Earnings for a payroll
period by any whole percent, but not
less than one percent (1%) or more than
ten percent (10%) in order to receive a
Before-Tax Contribution. An Active
Participant covered by this Appendix
also may make an After-Tax Contribution
for a payroll period by means of payroll
deduction in any whole percent, but not
less than one percent (1%) or more than
ten percent (10%) of his/her Certified
Earnings for the payroll period.
Before-Tax and After-Tax Contributions
are subject to the applicable limits set
forth in Article VI.
Employer Matching Contributions.
Contributions:
A Matching Contribution will be made for
each month on behalf of each Active
Participant covered by this Appendix who
receives a Before-Tax Contribution or
makes an After-Tax Contribution for any
payroll period ending within such month.
The amount of the Matching Contribution
will equal one-dollar ($1.00) for each
one
dollar ($1.00) contributed as a BeforeTax or After-Tax
Contribution, but disregarding any such contributions in excess
of three percent (3%) of Certified Earnings for payroll periods
ending within the month (thus, the maximum Matching Contribution
per
month is three percent (3%) of
Certified Earnings for payroll periods
ending within the month).
Non-Matching Contributions.
A Participant covered by this Appendix
will receive a Non-Matching
Contribution each Plan Year of seven
percent (7%) of Certified Earnings for
the Plan Year provided that he/she is
employed with the Company or an
Affiliate on the last business day of
the Plan Year.
Only Certified Earnings received while
an Active Participant under the terms
set forth in this Appendix will count
for purposes of determining NonMatching
Contributions for a Plan Year.
Subaccounts: Contributions made pursuant to the
terms of this Appendix will be credited
to a "Countrymark Predecessor Plan
Subaccount" established under the Plan,
consisting of a Countrymark
Before-Tax Subaccount, Countrymark
After-Tax Subaccount, Countrymark
Matching Subaccount and Countrymark Non-
Matching Subaccount.
Investment of A Participant will be allowed to
Subaccounts: direct the investment of his/her
Countrymark Predecessor Plan Subaccount
in the investment options selected or
established by the Company for this
purpose in accordance with Sec. 8.2
(applicable to Predecessor Plan
Accounts).
A Participant will be allowed to borrow
from his/her Countrymark Predecessor
Plan Subaccount in accordance with the
Notice of Loan Terms and Procedures -
Country-mark Predecessor Plan
Subaccounts.
Vesting: A Participant covered by this Appendix
will at all times be one hundred
percent (100%) vested in his/her
Countrymark Before-Tax Subaccount and
Countrymark After-Tax Subaccount, and
will become one hundred percent (100%)
vested in his/her Countrymark Matching
and Non-Matching Subaccounts upon the
first to occur of the following:
Completion of five (5) Years of
Vesting Service.
Attainment of Normal Retirement
Age while employed with the Company or
an Affiliate.
Becoming permanently disabled
while employed with the Company or an
Affiliate (for this purpose an
individual will be considered to be
"permanently disabled" only if a
determination is made by the Social
Security Administration within 12
months after his/her last day of work
that he/she is disabled and that the
disability started on or before the
last day of work).
Death while employed with the
Company or an Affiliate.
Prior to the occurrence of any of the
above, the vested percentage of the
Participant in his/her Countrymark
Matching and Non-Matching Subaccounts will
be determined under the following
schedule:
Completed Years Vested
of Vesting Service Percentage
0 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
The portion of a Countrymark Matching or
Non-Matching Subaccount that is not vested
will be forfeited by the Participant and
transferred to a "Forfeiture Subaccount"
as of the earlier of the following:
The last day of the Plan Year in
which the Participant incurs his/her
fifth consecutive One-Year Break in
Service.
The date on which the vested portion
of the Participant's Countrymark
Matching or Non-Matching Subaccount is
distributed to the Participant or
his/her Beneficiary (and, for this
purpose, if a Participant is zero
percent (0%)
vested in his/her Countrymark Matching and
Non-Matching Subaccounts, he/she will be
deemed to have received a distribution at
Termination of Employment).
If a portion of a Countrymark Matching
or Non-Matching Subaccount is
forfeited and the Participant is
subsequently reemployed before
incurring five consecutive One-Year
Breaks in Service, a Countrymark
Matching or Non-Matching Subaccount
will be reinstated for the Participant
as of the last day of the Plan Year in
which he/she completes one year of
Vesting Service, with an initial
balance equal to the amount forfeited
(without earnings or losses). At any
time after such reinstatement, the
vested amount in the Countrymark
Matching or Non-Matching Subaccount
will be determined by (i) adding back
any amount previously distributed from
the Subaccount, (ii) applying the
applicable vested percentage to the
result, and (iii) subtracting out the
amount previously distributed from the
Subaccount.
The balance of the Forfeiture
Subaccount will be applied to reduce
future contributions made to the Plan
by the Company (not limited to
contributions made under this
Appendix).
A Participant's "Vesting Service" is
equal to his/her total years of service
with the Company measured from date of
hire, and including any period of
absence of less than 12 months (other
an as a result of a Termination of
Employment), subject to the prior
service credit granted above under
"Eligibility and Service Credit".
A "One-Year Break in Service" is a
Plan Year in which a Participant has
five hundred (500) or fewer Hours of
Service.
Withdrawals and
Distributions:
Withdrawals During A Participant will be allowed to make
Employment: withdrawals from his/her Countrymark
Predecessor Plan Subaccount as
follows:
Countrymark After-Tax Subaccount. A
Participant may withdraw amounts from
his/her Countrymark After-Tax
Subaccount at any time and from time
to time. The amount withdrawn may not exceed the total amount of
the AfterTax Contributions made by the Participant minus amounts
previously withdrawn (or the full value of the Countrymark After-
Tax Subaccount, if less).
Countrymark Before-Tax
Subaccount. A Participant may withdraw
amounts from his/her Countrymark Before-
Tax Subaccount in the event of a
hardship prior to age fifty nine and
one-half (59 1/2) in accordance with Sec.
10.1 and for any reason after that age
in accordance with Sec. 10.2.
Countrymark Matching or
NonMatching Subaccount. A Participant
may withdraw amounts from his/her
Countrymark Matching or Non-Matching
Subaccount for any reason after age
fifty nine and one-half (59 1/2) in
accordance with Sec. 10.2; provided
that, amounts may not be withdrawn
unless and until the Participant is one
hundred percent (100%) vested in such
Subaccount. Withdrawals from a
Countrymark Matching or Non-Matching
Subaccount will not be allowed prior to
age fifty nine and one-half (59 1/2).
A withdrawal may be allowed no more
than once in any calendar quarter.
Withdrawal requests must be made in
accordance with rules and procedures
adopted for this purpose by the
Company (including by means of voice
response or other electronic system
under circumstances so authorized by
the Company).
All withdrawals will be in cash.
Distributions After A Participant will be entitled to a
Termination of distribution of the vested balance of
Employment: his/her Countrymark Predecessor Plan
Subaccount following his/her
Termination of Employment in
accordance with Article XI.
Distribution requests must be made in
accordance with rules and procedures
adopted for this purpose by the
Company (including by means of voice
response or other electronic system
under circumstances so authorized by
the Company).
All distributions will be in cash.
49
PAGE 50
ADM EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
APPENDIX G
The participating location(s) hereunder and the coverage date of
such location(s) are as specified on the List of Participating
Locations for the Plan.
The following sets forth the terms that apply to each
participating location hereunder.
Before-Tax An Active Participant under this
Contributions: Appendix may elect to reduce his/her
Certified Earnings for a payroll period
by not more than six percent (6%) in
order to receive a Before-Tax
Contribution.
Matching Schedule: An Active Participant under this
Appendix will receive the following
Matching Contributions:
Prior to January 1, 1999: Matching
Contributions will be made on a monthly
(or more frequent) basis, with the
amount of the Matching Contributions
for each month determined under the
following schedule:
For Before-Tax The Matching
Contributions Contribution will
representing the be the following
following percent percent of the
of Certified Participant's
Earnings for Before-Tax
payroll periods Contributions for
ending within the payroll periods
month ending within the
month
The first 2%
Above 2% 100%
None
Starting January 1, 1999: Matching
Contributions will be made on a monthly
(or more frequent) basis, with the
amount of the Matching Contributions
for each Plan Year determined under the
following schedule:
For Before-Tax The Matching
Contributions Contribution will
representing the be the following
following percent percent of the
of Certified Participant's
Earnings for Before-Tax
payroll periods Contributions for
ending within the payroll periods
Plan Year ending within the
Plan Year
The first 2%
Above 2% 100%
None
50
Page 51
EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
(As Amended and Restated Effective April 1, 1998)
51
PAGE 52
EMPLOYEE STOCK OWNERSHIP PLAN
FOR HOURLY EMPLOYEES
TABLE OF CONTENTS
ARTICLE I INTRODUCTION 1
1.1 PLAN; PURPOSE 1
1.2 QUALIFIED STOCK BONUS AND EMPLOYEE STOCK OWNERSHIP
PLAN 1
1.3 PLAN DOCUMENT 1
1.4 EFFECTIVE DATE OF DOCUMENT 1
ARTICLE II DEFINITIONS AND CONSTRUCTION 1
2.1 DEFINITIONS 1
2.2 CHOICE OF LAW 10
ARTICLE III PARTICIPATION 11
3.1 START OF PARTICIPATION 11
3.2 END OF PARTICIPATION 11
ARTICLE IV EMPLOYEE CONTRIBUTIONS 11
4.1 BEFORE TAX CONTRIBUTIONS 11
4.2 AFTER-TAX CONTRIBUTIONS 12
4.3 ROLLOVER CONTRIBUTIONS 12
4.4 FORM OF CONTRIBUTION 12
ARTICLE V EMPLOYER CONTRIBUTIONS 13
5.1 MATCHING CONTRIBUTIONS 13
5.2 NON-MATCHING CONTRIBUTIONS 13
5.3 FORM OF CONTRIBUTION 14
ARTICLE VI CONTRIBUTION LIMITS 15
6.1 CODE SECTION 402(G) LIMIT ON BEFORE-TAX CONTRIBUTIONS
15
6.2 CODE SECTION 401(K)/401(M) NONDISCRIMINATION TEST 15
6.3 MAXIMUM ANNUAL ADDITIONS 17
6.4 DEDUCTION LIMIT 19
ARTICLE VII ACCOUNTS 19
7.1 ACCOUNTS 19
7.2 VALUATION OF ACCOUNTS 21
7.3 STATEMENTS. 24
7.4 VOTING RIGHTS ON COMPANY STOCK 24
7.5 TENDER OR EXCHANGE OFFERS REGARDING COMPANY STOCK 26
ARTICLE VIII INVESTMENT OF ACCOUNTS 26
8.1 INVESTMENT IN COMPANY STOCK 27
8.2 INVESTMENT IN OTHER INVESTMENT OPTIONS 27
8.3 REINVESTMENTS TO SATISFY DIVERSIFICATION RULES 28
8.4 SOURCE OF PAYMENTS ON AN EXEMPT LOAN 29
8.5 PARTICIPANT LOAN PROGRAM 29
52
PAGE 53
8.6 VALUATION OF NON-TRADED SHARES 30
ARTICLE IX VESTING 30
ARTICLE X WITHDRAWALS WHILE EMPLOYED 30
10.1 WITHDRAWALS FOR HARDSHIP 30
10.2 WITHDRAWALS AFTER AGE 59 1/2 31
10.3 WITHDRAWALS FROM PREDECESSOR PLAN ACCOUNTS 33
10.4 WITHDRAWAL PROCEDURES 33
ARTICLE XI DISTRIBUTIONS AFTER TERMINATION 33
11.1 BENEFIT ON TERMINATION OF EMPLOYMENT 33
11.2 TIME, FORM AND MEDIUM OF DISTRIBUTION 33
11.3 CASH-OUT OF SMALL ACCOUNTS 35
11.4 MINIMUM DISTRIBUTION RULES 37
11.5 DISTRIBUTION PROCEDURES 37
ARTICLE XII DISTRIBUTIONS AFTER DEATH 37
12.1 BENEFIT ON DEATH 37
12.2 TIME, FORM AND MEDIUM OF DISTRIBUTION 37
12.3 BENEFICIARY DESIGNATION 39
12.4 MULTIPLE BENEFICIARIES 40
12.5 MINIMUM DISTRIBUTION RULES 40
ARTICLE XIII MISCELLANEOUS BENEFIT PROVISIONS 41
13.1 VALUATION OF ACCOUNTS FOLLOWING TERMINATION OF
EMPLOYMENT 41
13.2 DIRECT ROLLOVER OPTION 42
13.3 MISSING PARTICIPANTS OR BENEFICIARIES 42
13.4 DISTRIBUTION IN EVENT OF CERTAIN CORPORATE
TRANSACTIONS 44
13.5 DISTRIBUTION TO ALTERNATE PAYEE 44
13.6 BROKERAGE FEES 44
13.7 PUT OPTION; OTHER RESTRICTIONS ON COMPANY STOCK 44
13.8 NO OTHER BENEFITS 46
13.9 SOURCE OF BENEFITS 46
13.10 INCOMPETENT PAYEE 47
13.11 NO ASSIGNMENT OR ALIENATION OF BENEFITS 47
13.12 PAYMENT OF TAXES 47
13.13 CONDITIONS PRECEDENT 47
13.14 DELAY OF DISTRIBUTION IN EVENT OF STOCK DIVIDEND OR
SPLIT 47
ARTICLE XIV TRANSFER OR REEMPLOYMENT 47
14.1 TRANSFER OF EMPLOYMENT 47
14.2 EFFECT OF REEMPLOYMENT 48
ARTICLE XV TRUST FUND 48
15.1 COMPOSITION 48
15.2 NO DIVERSION 48
15.3 BORROWING TO PURCHASE COMPANY STOCK 49
15.4 FUNDING POLICY 52
15.5 SHARE REGISTRATION 52
15.6 PURCHASE/SALE OF COMPANY STOCK 52
53
PAGE 54
ARTICLE XVI ADMINISTRATION 52
16.1 ADMINISTRATION 52
16.2 CERTAIN FIDUCIARY PROVISIONS 54
16.3 PAYMENT OF EXPENSES 54
16.4 EVIDENCE 54
16.5 CORRECTION OF ERRORS 54
16.6 CLAIMS PROCEDURE 54
16.7 WAIVER OF NOTICE 54
16.8 AGENT FOR LEGAL PROCESS 55
16.9 INDEMNIFICATION 56
16.10 EXERCISE OF AUTHORITY 56
16.11 TELEPHONIC OR ELECTRONIC NOTICES AND TRANSACTIONS 56
ARTICLE XVII AMENDMENT, TERMINATION, MERGER 56
17.1 AMENDMENT 56
17.2 PERMANENT DISCONTINUANCE OF CONTRIBUTIONS 58
17.3 TERMINATION 58
17.4 PARTIAL TERMINATION 58
17.5 MERGER, CONSOLIDATION, OR TRANSFER OF PLAN ASSETS 59
17.6 DEFERRAL OF DISTRIBUTIONS 60
ARTICLE XVIII PREDECESSOR PLAN ACCOUNTS 60
18.1 TRANSFERS FROM OTHER PLANS 60
18.2 OPTIONAL FORMS OF PAYMENT 60
18.3 SPECIAL RULES IF SURVIVOR ANNUITY REQUIREMENTS APPLY60
ARTICLE XIX MISCELLANEOUS PROVISIONS 64
19.1 SPECIAL TOP-HEAVY RULES 64
19.2 QUALIFIED MILITARY SERVICE 67
19.3 INSURANCE COMPANY NOT RESPONSIBLE FOR VALIDITY OF PLAN
67
19.4 NO GUARANTEE OF EMPLOYMENT 67
19.5 USE OF COMPOUNDS OF WORD "HERE" 67
19.6 CONSTRUED AS A WHOLE 67
19.7 HEADINGS 67
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F
APPENDIX G
54