EXHIBIT 10-4
THIRD AMENDMENT TO
SAFEGUARD SCIENTIFICS
MONEY PURCHASE PENSION PLAN
(As Amended and Restated Effective January 1, 1989)
WHEREAS, Safeguard Scientifics, Inc. (the "Company") established the
Safeguard Scientifics Money Purchase Pension Plan (the "Plan") for the benefit
of certain of its employees effective January 1, 1986; and
WHEREAS, the Company most recently amended and restated the Plan generally
effective January 1, 1989, and has amended the Plan on two occasions thereafter;
and
WHERAS, the Company reserved to itself the right to amend the Plan in
Section 11.1 thereof, subject to certain inapplicable limitations; and
WHEREAS, the Company desires to amend the Plan;
NOW, THEREFORE, subject to approval by the District Director of Internal
Revenue, the Plan is hereby amended as follows:
1. Section 1.11 is hereby amended, effective January 1, 1989, to correct
the definition of "Disregarded Prior Service" as follows:
1.11 DISREGARDED PRIOR SERVICE shall mean Years of Service completed
prior to any Break in Service, where
(a) the Participant had either
(1) no vested interest in that portion of his Account under
the Plan attributable to Employer contributions prior to such Break in Service,
or
(2) a vested interest in that portion of his Account under
the Plan attributable to Employer contributions prior to such Break in Service,
received a distribution of the full amount of such vested interest, and failed
to repay the amount of such vested interest prior to the date prescribed in
Section 7.3; and
(b) the number of consecutive one-year-Break in Service
experienced by the Participant (including in such series of consecutive one-year
Breaks in Service, the Break in Service with regard to which a determination is
being made as to whether prior Years of Service are Disregarded Prior Service
hereunder) equals or exceeds both:
(i) five (5), and
(ii) the number of Years of Service, other than Disregarded
Prior Service, completed by the Employee, prior to such Break in Service.
(c) Notwithstanding the foregoing, subsections (a) and (b) of
this Section 1.11 shall not apply to the vested interest of any Participant who
formerly was a participant in the Merged Plan.
2. Effective August 1, 1995, Section 3.5 of the Plan is hereby amended to
read as follows:
3.5 TIMING OF EMPLOYER CONTRIBUTIONS. The Employer may pay one-half
of its contribution with respect to any Plan Year to the Trustee following June
30 of such Plan Year and the remainder following the end of such Plan Year but
in no event shall the contribution for the Plan Year be paid later than the time
required by law for making contributions with respect to the Plan Year.
3. The first paragraph of Section 7.3 is hereby amended, effective
January 1, 1989, to read as follows:
In the case of termination of employment for any other reason (whether
voluntary or by discharge, with or without cause), payment of a Participant's
vested benefits shall commence as soon as practicable after the Valuation Date
coincident with or next following the date that would have been the
Participant's Normal Retirement Date. A Participant may, however, elect to have
payment of his vested benefits commence as of any earlier Valuation Date. Such
election must be made in writing within the 90 day period ending on such
Valuation Date. If such Participant is not fully vested in his Employer
Contribution Subaccount, the cash value of the Participant's Account, to the
extent the same shall not have vested, shall be forfeited upon the earlier of
(i) the occurrence of five consecutive one-year Breaks in Service or (ii) the
date he receives a distribution of his total vested benefit. Forfeitures shall
be applied to reduce Employer contributions otherwise required as provided in
Section 3.8 hereof.
4. Effective January 1, 1989, a paragraph is added at the end of Section
11.1 to read as follows:
No amendment shall change any vesting schedule unless, in the case of
an Employee who is a Participant on -
(i) the date the amendment is adopted; or
(ii) the date the amendment is effective, if later, the
nonforfeitable percentage of such Participant's right to his Account is not less
than his percentage computed under the Plan without regard to such amendment.
Furthermore, no such amendment shall otherwise change any vesting schedule
unless each Participant having three or more Years of Service is permitted to
elect, in accordance with Internal Revenue Code regulations, to have the
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nonforfeitable percentage of his Account determined under the Plan without
regard to such amendment; provided, that no election shall be given to any
Participant whose nonforfeitable percentage under the Plan as amended cannot at
any time be less than such percentage determined without regard to such
amendment.
IN WITNESS WEEREOF, and as evidence of the adoption of this Third
Amendment, the Company has caused the same to be executed by its duly authorized
officers, and its corporate seal to be affixed this 12th day of December, 1995.
Attest: SAFEGUARD SCIENTIFICS, INC.
/s/ James A. Ounsworth By: /s/ Gerald M. Wilk
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Secretary Sr. VP
(Corporate Seal)
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