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EXHIBIT 4(e)
LENOX SAVINGS PLAN
FOR COLLECTIVELY BARGAINED EMPLOYEES
PLAN NO.: 017
EIN: 21-0498476
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LENOX CHINA SAVINGS PLAN
FOR COLLECTIVELY BARGAINED EMPLOYEES
By action of the Board of Directors, Lenox, Incorporated, a New Jersey
corporation (Employer), has adopted the following Plan for the benefit of
collectively bargained Employees as set forth herein, effective March 1, 1997
(Effective Date). The Plan is established to recognize and reward said Employees
for their contribution to the Employer's successful operation, and is for the
exclusive benefit of Participants and their Beneficiaries.
The Plan is intended to meet the requirements of Section 401(a) and
501(a), and to qualify as a Cash or Deferred Arrangement under Section 401(k),
of the Internal Revenue Code of 1986, as amended (Code).
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LENOX CHINA SAVINGS PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
TABLE OF CONTENTS
ARTICLE I - DEFINITIONS........................................................................................... 1
1.01 Accounts........................................................................................ 1
1.02 Accounting Date................................................................................. 1
1.03 Affiliated Employer............................................................................. 1
1.04 Beneficiary..................................................................................... 1
1.05 Break in Service................................................................................ 2
1.06 Code............................................................................................ 2
1.07 Collective Bargaining Agreement................................................................. 3
1.08 Compensation.................................................................................... 3
1.09 Elapsed Time.................................................................................... 3
1.10 Employee........................................................................................ 4
1.11 Employer........................................................................................ 4
1.12 Fiscal Year..................................................................................... 4
1.13 Highly Compensated Employee..................................................................... 4
1.14 Hour of Service................................................................................. 4
1.15 Leased Employee................................................................................. 5
1.16 Month of Service................................................................................ 6
1.17 Normal Retirement Age........................................................................... 6
1.18 Period of Severance............................................................................. 6
1.19 Plan Year....................................................................................... 6
1.20 Spouse (Surviving Spouse)....................................................................... 7
1.21 Total and Permanent Disability.................................................................. 7
1.22 Union........................................................................................... 7
1.23 Year of Service................................................................................. 7
ARTICLE II - PARTICIPATION........................................................................................ 9
2.01 Eligibility..................................................................................... 9
2.02 Reemployment of Participant..................................................................... 9
2.03 Reemployment of Non-Participant................................................................. 9
2.04 Transferred Employees........................................................................... 9
2.05 Employment Status Change........................................................................ 9
2.06 Participation Following Normal Retirement Age................................................... 9
ARTICLE III - VESTING ............................................................................................ 10
3.01 Fully Vested and Nonforfeitable Account. ...................................................... 10
3.02 Vesting of Employer Matching Account............................................................ 10
3.03 Period of Service for Vesting Purposes.......................................................... 10
3.04 Vesting Schedule/Employer Matching Contribution Account......................................... 10
3.05 [Reserved]...................................................................................... 10
3.06 Effect of Break in Service on Vesting........................................................... 10
3.07 Date of Termination of Employment............................................................... 11
3.08 Vesting and Nonforfeitability of Account Upon Plan Termination.................................. 11
3.09 Amendment of Vesting Schedule................................................................... 11
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ARTICLE IV - TIME AND MANNER OF PAYMENT.......................................................................... 13
4.01 Time of Initial Payment of Retirement Benefits................................................. 13
4.02 Consent To Payment Of Benefits................................................................. 13
4.03 Manner of Payment of Retirement Benefits....................................................... 14
4.04 Payment Upon Death of Participant.............................................................. 14
4.05 Calculation of Distributions................................................................... 14
4.06 Forfeiture of Non-vested Benefits.............................................................. 15
4.07 Fully Vested Account........................................................................... 17
4.08 Suspension of Benefits......................................................................... 17
4.09 Pre-1984 Election.............................................................................. 17
4.10 Hardship Distribution.......................................................................... 17
4.11 Limitation for Qualified Domestic Relations Order.............................................. 18
ARTICLE V - CONTRIBUTIONS BY THE EMPLOYER........................................................................ 20
5.01 Elective Contribution by Employer.............................................................. 20
5.02 Matching Contribution by Employer.............................................................. 20
5.03 Deduction of Employer Contributions............................................................ 20
5.04 Limits on Elective and Matching Contributions.................................................. 20
5.05 Special Employer Contributions................................................................. 21
5.06 Correction of Excess Elective Contributions.................................................... 22
5.07 Correction of Excess Employer Matching Contributions........................................... 23
5.08 Return of Contribution. ...................................................................... 23
5.09 Plan and Trust Conditioned on Approval and Qualification....................................... 24
5.10 Funding Policy................................................................................. 24
ARTICLE VI - PARTICIPANT CONTRIBUTIONS........................................................................... 25
6.01 Amount of Elective Contribution................................................................ 25
6.02 Election Request............................................................................... 25
6.03 Change of Rate................................................................................. 25
6.04 Distributions from Elective Account............................................................ 25
ARTICLE VII - ALLOCATION TO INDIVIDUAL PARTICIPANTS.............................................................. 27
7.01 Allocation of Elective Contributions........................................................... 27
7.02 Allocation of Matching Contribution............................................................ 27
7.03 Allocation of Forfeitures...................................................................... 27
7.04 Amendment of Allocation Eligibility............................................................ 27
7.05 Maximum Additions to Participant's Account..................................................... 27
7.06 Overall Limit.................................................................................. 29
7.07 Date of Allocation to Accounts................................................................. 30
7.08 Expenses of Plan............................................................................... 30
7.09 Participant Direction of Investment. ......................................................... 31
7.10 Periodic Adjustments to Account................................................................ 31
ARTICLE VIII - TOP HEAVY PROVISIONS.............................................................................. 33
8.01 When Provisions Effective...................................................................... 33
8.02 Determination of Top Heavy..................................................................... 33
8.03 Minimum Benefits............................................................................... 34
8.04 Impact on Maximum Benefits..................................................................... 34
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8.05 Determination of Super Top Heavy............................................................... 35
ARTICLE IX - PORTABILITY OF ACCOUNT.............................................................................. 36
9.01 Transfers to Another Qualified Plan............................................................ 36
9.02 Eligible Rollover Distributions................................................................ 36
9.03 Transfers to this Plan......................................................................... 37
ARTICLE X - PARTICIPATING EMPLOYERS.............................................................................. 38
10.01 Adoption by Other Employers.................................................................... 38
10.02 Withdrawal from the Plan....................................................................... 38
10.03 Action of a Single Employer.................................................................... 38
ARTICLE XI - PLAN ADMINISTRATOR.................................................................................. 39
11.01 Appointment of Plan Administrator.............................................................. 39
11.02 Duties of Plan Administrator................................................................... 39
11.03 Decisions of Plan Administrator and Indemnification............................................ 40
11.04 Instructions to Trustee........................................................................ 40
11.05 Claims Procedure............................................................................... 40
11.06 Delegating Responsibility...................................................................... 40
ARTICLE XII - MISCELLANEOUS...................................................................................... 42
12.01 Right to Terminate............................................................................. 42
12.02 Plan Voluntary on Part of Employer............................................................. 42
12.03 Benefits Not Subject to Creditors' Claim....................................................... 42
12.04 Trust Agreement................................................................................ 42
12.05 Assets for Exclusive Benefits to Participants.................................................. 42
12.06 Nonguarantee of Employment..................................................................... 43
12.07 Amendment...................................................................................... 43
12.08 Acts by Trustee................................................................................ 43
12.09 Laws of Kentucky. ............................................................................ 43
12.10 Distribution to Minor or Incompetent Beneficiary............................................... 43
12.11 Construction................................................................................... 43
12.12 Merger or Consolidation........................................................................ 43
12.13 Discretionary Action........................................................................... 43
12.14 Lost Beneficiaries; Escheat.................................................................... 44
12.15 Action by the Employer......................................................................... 44
ARTICLE XIII - SIGNATURES........................................................................................ 45
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ARTICLE I - DEFINITIONS
As used in this Plan, the following terms have the following meanings
unless the context plainly requires a different meaning:
1.01 Accounts.
(a) Participant Elective Contribution Account. The separate
Account established and maintained on behalf of the Participant to which shall
be credited the Elective Contributions and the Special Employer Contributions
(if any), made by the Employer on behalf of the Participant, and the share of
the net gains or losses of the Trust attributable to such contributions. The
Elective Account shall be fully vested and nonforfeitable at all times.
(b) Employer Matching Contribution Account. The separate Account
established and maintained on behalf of a Participant to which shall be credited
the Participant's share of Employer Matching Contributions and the share of the
net gains or losses of the Trust attributable to such contributions. The
Employer Matching Contribution Account shall be subject to the vesting
provisions of Article III.
1.02 Accounting Date. Any date on which the Trustee calculates the
Participant's Account balance. Unless the Trustee performs the calculations more
frequently, the Accounting Date shall be December 31. The accounts shall be
valued on a daily basis.
1.03 Affiliated Employer. The Employer and any corporation which is a
member of a controlled group of corporations (as defined in Code section 414(b))
which includes the Employer; any trade or business, whether or not incorporated,
which is under common control (as defined in Code section 414(c)) with the
Employer; any organization, whether or not incorporated which is a member of an
affiliated service group (as defined in Code section 414(m)) which includes the
Employer; and any other entity required to be aggregated with the Employer
pursuant to regulations under 414(o).
1.04 Beneficiary. The person or entity designated by the Participant in
a written notice to the Plan Administrator to receive the Participant's death
benefits; provided, however, if no person or entity is named or the person
designated is not surviving when a benefit becomes payable, or if the person or
entity designated is not the Spouse and such designation does not conform to the
spousal consent requirements below, then the Beneficiary shall be the person(s)
in the first of the following classes surviving at the death of the Participant:
(i) widow or widower, or (ii) the Participant's estate.
Any election by a Participant of a designated Beneficiary other than
Participant's Spouse is effective only if the Participant's Spouse consents to
the election in writing, it is witnessed by a Plan representative or a notary
public, and the consent is irrevocable and acknowledges the effect of the
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election and the specific alternate Beneficiary. Any consent by a Spouse (or
establishment that such consent may not be obtained) is effective only with
respect to that Spouse.
Spousal consent is not required, however, if the Participant
establishes to the satisfaction of the Plan representative that such consent may
not be obtained because there is no Spouse, or the Spouse cannot be located. The
Secretary of the Treasury may prescribe regulations specifying other
circumstances under which the Spouse's consent may be waived.
A revocation of a prior Beneficiary designation may be made by a
Participant without spousal consent at any time prior to commencement of
benefits. The number of revocations shall not be limited. Any new Beneficiary
designation will require spousal consent to such change in the manner set forth
above unless the prior consent acknowledged that the Spouse had the right to
limit consent to a specific Beneficiary and the Spouse voluntarily chose to
relinquish that right. A Beneficiary designation may be changed by submitting a
new notice to the Plan Administrator. Such a notice is not effective until the
Plan Administrator actually receives it.
1.05 Break in Service. For purposes of determining eligibility to
participate in the Plan, Break in Service means a twelve consecutive month
computation period during which an Employee does not complete more than five
hundred (500) Hours of Service.
For purposes of determining the vested percentage of an Employee's
account derived from Employer contributions, Break in Service means a Period of
Severance of at least twelve (12) consecutive months.
Solely for purposes of determining whether a Break in Service has
occurred in a computation period, an Employee who is absent from work for
maternity or paternity reasons receives credit for the Hours of Service which
would otherwise have been credited but for the absence. An absence from work for
maternity or paternity reasons means an absence (1) by reason of the pregnancy
of the Employee, (2) by reason of the birth of a child of the Employee, (3) by
reason of the placement of a child with the Employee in connection with the
adoption of a child by the Employee, or (4) for purposes of caring for the child
for a period beginning immediately following the child's birth or placement. The
Hours of Service credited under this paragraph are credited (1) in the
computation period in which the absence begins if the crediting is necessary to
prevent a Break in Service in that period, or (2) in all other cases, in the
following computation period. For purposes of eligibility, in any case in which
hours normally credited cannot be determined, the Employee receives credit for
eight (8) Hours of Service per day of absence, for a maximum of five hundred-one
(501) Hours of Service.
No credit is given pursuant to this Section unless the Employee timely
furnishes the Plan Administrator with information the Plan Administrator may
require to establish (1) that the absence from work is for reasons referred to
in this Section, and (2) the number of days for which there was an absence.
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1.06 Code. The Internal Revenue Code of 1986, as amended.
1.07 Collective Bargaining Agreement. The current and then effective
Collective Bargaining Agreement between the Employer and the Union.
1.08 Compensation. Compensation for any Employee shall mean total
earnings which are subject to withholding for federal income tax purposes, paid
to an Employee by the Employer during the Plan Year ending immediately prior to
the Fiscal Year to which the Employer contribution relates. Amounts contributed
by the Employer under the Plan and any nontaxable fringe benefits shall not be
considered Compensation.
Compensation shall include amounts contributed by the Employer under a
salary reduction agreement which are not includible in gross income under
Sections 125, 402(a)(8), 402(h), or 403(b) of the Code. However, Compensation
shall not include the following:
(a) moving expenses, the imputed value of life insurance,
and similar fringe benefits;
(b) long-term bonuses and special bonuses;
(c) any payments under a nonqualified deferred compensation
plan.
Compensation in excess of $150,000 is disregarded. Such amount shall be
adjusted for cost-of-living at the same time and in the same manner as permitted
under Code section 415(d).
1.09 Elapsed Time. For vesting purposes (except for periods of service
which may be disregarded on account of the "rule of parity" described in Section
3.07) a Participant will receive credit for the aggregate of all time period(s)
commencing with the Participant's first day of employment or reemployment and
ending on the date a break in service begins. The first day of employment or
reemployment is the first day the Participant performs an hour of service. A
Participant will also receive credit for any Period of Severance of less than
twelve (12) consecutive months. Fractional periods of a year will be expressed
in terms of days.
Subject to Article II, for contribution purposes, a Participant is
entitled to have service taken into account from the date the Participant begins
to participate in the Plan, until the Participant is no longer an Employee.
Periods of Severance are not required to be taken into account under any
circumstances.
For purposes of this Section, hour of service shall mean each hour for
which a Participant is paid or entitled to payment for the performance of duties
for the Employer.
For purposes of this Section, a break in service is a Period of
Severance of at least twelve (12) consecutive months.
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1.10 Employee. An hourly person actually engaged in the conduct of the
business of the Employer who is required to be and is included in a unit of
employees covered by a Collective Bargaining Agreement between the Union and the
Employer.
1.11 Employer. Lenox, Incorporated or its successor(s) and any
Affiliated Employer which elects to become a party to the Plan, with the
approval of the Executive Committee of the Board of Directors of Brown-Forman
Corporation, by adopting the Plan for the benefit of its eligible Employees.
Notwithstanding any other provisions of this Section, any business
entity (including but not limited to new entrepreneurial ventures, new
divisions, or Affiliated Employers) created or acquired by the Employer or its
Affiliated Employers that was not participating in the plan on March 1, 1997,
may adopt this Plan for its employees and become an adopting Employer only after
the Executive Committee of the Board of Directors of Brown-Forman Corporation
approves its participation and the conditions set out in Section 10.01 are met.
Until the requirements of the preceding sentence are satisfied, none of such
entity's employees are eligible to participate in this Plan.
1.12 Fiscal Year. May 1 to April 30, the tax and accounting year of the
Employer.
1.13 Highly Compensated Employee. A highly compensated employee is
determined in accordance with Code section 414(q) and includes highly
compensated active employees and former employees. In making such determination,
the "determination year" shall be the Plan Year, and the "look-back year" shall
be the immediately preceding 12-month period.
A Highly Compensated active employee includes any employee who performs
service for the Employer during the determination year and who, during the
look-back year received Compensation from the Employer in excess of $80,000 (as
adjusted pursuant to section 415(d) of the Code) and, if the Employer so elects,
was a member of the top-paid group for such year. The term highly compensated
employee also includes employees who are 5 percent owners at any time during the
look-back year or determination year.
A highly compensated former employee included any employee who
separated from service (or was deemed to have separated) prior to the
determination year, and was a highly compensated active employee for either the
separation year or any determination year ending on or after the employee's 55th
birthday.
1.14 Hour of Service. Each hour: (i) for which an Employee is paid, or
entitled to payment, for the performance of duties for the Employer during the
applicable computation period; (ii) for which an Employee is paid, or entitled
to payment, by the Employer on account of a period of time during which no
duties are performed (irrespective of whether the employment relationship has
termi nated) due to vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, military duty, or leave of absence authorized in
writing by the Employer; (iii) for which back pay, irrespective of mitigation of
damages, is either awarded or agreed to by the Employer. The same
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Hour of Service is credited no more than once to a single Employee, even though
it may fall within more than one of categories (i), (ii) and (iii) of the
preceding sentence.
Notwithstanding the above provisions, for eligibility purposes (i) no
more than five hundred one (501) Hours of Service will be credited to an
Employee for any single continuous period during which the Employee performs no
duties (whether or not such period occurs in a single computation period); (ii)
Hours of Service are not credited for hours for which an Employee is directly or
indirectly paid, or entitled to payment, for a period during which no duties are
performed if such payment is made or due under a plan maintained solely to
comply with applicable worker's compensation, or unemployment compensation or
disability insurance laws; (iii) Hours of Service are not credited for a payment
which solely reimburses an Employee for medical or medically related expenses
incurred by the Employee; and (iv) Hours of Service are not credited to an
Employee for payments made by this Plan or any other pension or profit sharing
plan maintained by the Employer.
To the extent they may be applicable to any Employee, the provisions of
the Department of Labor regulations section 2530.200b-2 are incorporated into
this Section by reference. Hours of Service are credited for employment with any
Affiliated Employer. If the Employer maintains the plan of a predecessor
employer, Hours of Service with the predecessor will count as service with this
Employer.
If the Employer maintains records which accurately reflect actual Hours
of Service credited to a particular Employee, the Hours of Service to be
credited to the Employee are determined from such records. Alternatively, if the
Employer has not maintained such records, the Employee is credited with Hours
Worked, as defined in Labor Regulation Section 2530.200b-3(d)(3)(i) in which 870
Hours Worked are equivalent to 1,000 Hours of Service, and 435 Hours Worked are
equivalent to 500 Hours of Service.
An Employee on leave of absence for service on active duty in the Armed
Forces of the United States shall receive upon return to the service of the
Employer, in addition to credit for Hours of Service to which the Employee is
entitled under this Section, such other credit as may be prescribed by Federal
laws relating to military and veterans' reemployment rights.
For purposes of this Section, any reference to "Employer" shall be
deemed to include not only the Employer defined in Section 1.10, but also any
Affiliated Employer (as defined in Section 1.03) of which group the Employer is
a member.
1.15 Leased Employee. Any person (other than an employee of the
recipient) who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the recipient (or for
the recipient and related persons determined in accordance with section
414(n)(6) of the Code) on a substantially full time basis for a period of at
least one year, and such services are of a type historically performed by
employees in the business field of the recipient employer. Contributions or
benefits provided a leased employee by the leasing
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organization which are attributable to services performed for the recipient
employer shall be treated as provided by the recipient.
A leased employee shall not be considered an employee of the recipient
if: (i) such employee is covered by a money purchase pension plan providing: (1)
a non-integrated employer contribution rate of at least 10 percent of
compensation, as defined in section 415(c)(3) of the Code, but including amounts
contributed pursuant to a salary reduction agreement which are excludable from
the employee's gross income under section 125, 402(a)(8), 402(h) or 403(b) of
the Code. (2) immediate participation, and (3) full and immediate vesting; and
(ii) leased employees do not constitute more than 20 percent of the recipient's
non-highly compensated workforce.
1.16 Month of Service. For vesting and contribution purposes, a
calendar month during any part of which an Employee completes an Hour of
Service. However, an Employee is credited with a Month of Service for each month
during the twelve-month computation period in which the Employee does not incur
a Period of Severance.
1.17 Normal Retirement Age. A Participant's 65th birthday.
1.18 Period of Severance. For vesting purposes, a continuous period of
time during which the individual is not employed by the Employer. Such period
begins on the "Severance from Service Date", which is the date the individual
retires, quits, or is discharged, or if earlier, the twelve (12) month
anniversary of the date on which the individual was otherwise first absent from
work for any reason other than quit, retirement, discharge, or death, such as
vacation, holiday, sickness, disability, authorized leave of absence, or layoff.
The Period of Severance ends on the date the individual again performs an Hour
of Service for the Employer. A Period of Severance of less than 12 consecutive
months shall not be taken into account.
In the case of an individual who is absent from work for maternity or
paternity reasons, the twelve (12) consecutive month period beginning on the
first anniversary of the first date of the absence does not constitute a Period
of Severance. For such individual, the Period of Severance begins on the second
(2nd) twelve (12) month anniversary of the first day the individual was absent
from work. The period between the first and second (2nd) anniversaries of the
first (1st) day of absence from work is neither a period of service nor a Period
of Severance. For purposes of this paragraph, an absence from work for maternity
or paternity reasons means an absence (1) by reason of the pregnancy of the
individual, (2) by reason of the birth of a child of the individual, (3) by
reason of the placement of a child with the individual in connection with the
adoption of a child by the individual, or (4) for purposes of caring for a child
for a period beginning immediately following the child's birth or placement.
1.19 Plan Year. January 1 to December 31, the accounting year of the
Plan; provided, however, there shall be a short plan year for the period March
1, 1997 to December 31, 1997.
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1.20 Spouse (Surviving Spouse). The spouse or surviving spouse of the
Participant on the date of determination, provided that a former spouse is
treated as the Spouse or Surviving Spouse to the extent provided under a
Qualified Domestic Relations Order.
1.21 Total and Permanent Disability. A personal disablement resulting
from bodily or mental injury or disease which presumably will permanently,
continuously, and wholly prevent the Participant during the remainder of the
Participant's life from engaging in any regular occupation or performing any
regular work for wage or profit. The Plan Administrator shall determine the
existence of Total and Permanent Disability and may have the Participant
examined by and may rely on advice from a licensed physician chosen by the Plan
Administrator. The determination shall be applied uniformly to all Participants.
A Participant may not qualify for Total and Permanent Disability if the
disability is caused by any of the following:
(a) Disability suffered or incurred while the Participant was engaged
in, or which resulted form the Participant engaging in, a criminal enterprise;
(b) Disability resulting from self-inflicted injury;
(c) Disability which results from abuse of alcohol or narcotics; or
(d) Disability resulting exclusively from military service in the
armed forces of any country for which the Participant receives a government
pension.
1.22 Union. The following bargaining unit: Glass, Molders, Pottery,
Plastics and Allied Workers International Union and its Local Union 236A.
1.23 Year of Service. For purposes of determining eligibility to
participate, a Year of Service is a 12 consecutive month period (computation
period) during which an Employee completes at least 1000 Hours of Service. To
determine Years of Service and Breaks in Service the computation period shall
begin on the date the Employee first performs an Hour of Service for the
Employer (employment commencement date) and anniversaries thereof.
For purposes of determining vesting and contributions, a Year of
Service is equal to twelve (12) Months of Service, beginning on the date the
Employee first performs an Hour of Service, whether or not the Months of Service
are completed consecutively. To determine the number of whole years of an
individual's period of service, nonsuccessive periods of service are aggregated
and less than whole year periods of service (whether or not consecutive) are
aggregated on the basis that twelve (12) Months of Service (thirty days are
deemed to be a month in the case of the aggregation of fractional months) or
three hundred sixty-five (365) days of service equal a whole Year of Service.
For purposes of vesting, after calculating the Participant's period of service
as provided in this section, the Plan may disregard any remaining less than
whole year, twelve (12) month, or three
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hundred sixty-five (365) day period of service. An Employee will receive credit
for the aggregate of all Years of Service commencing with the Employee's first
day of employment and ending on the date a Break in Service begins.
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ARTICLE II - PARTICIPATION
2.01 Eligibility. An Employee becomes a Participant as of the first day
of the month coinciding with or next following the date the Employee completes a
Year of Service with the Employer.
2.02 Reemployment of Participant. A Participant who terminates
employment with the Employer and who is subsequently reemployed by the Employer
resumes participation under the Plan immediately upon reemployment.
2.03 Reemployment of Non-Participant. If an Employee who is not a
Participant has a Break in Service before satisfying the Plan's eligibility
requirements, the Employee receives no credit for pre-break service and must
satisfy current Plan eligibility requirements.
If an Employee terminates employment after meeting the Plan's
requirement for eligibility but before becoming a Participant, and does not
incur a Break in Service, the Employee shall commence participation under the
Plan immediately upon reemployment.
2.04 Transferred Employees. An Employee transferred to the Employer who
becomes a Participant in this Plan is credited with service for eligibility and
vesting purposes for the Participant's Years of Service with the Employer and
nonparticipating Affiliated Employers. Such Employee is credited with service
for contribution purposes only for Years of Service with the Employer. A
transferred Employee is permitted to make Elective Contributions to this Plan
only while participating in accordance with Section 2.01. This section, however,
is subject to and limited by the provisions of Sections 1.11 and 10.01.
2.05 Employment Status Change. A Participant who is no longer a member
of an eligible class of Employees but is still employed by the Employer is not
eligible for contributions under the Plan, but for all other purposes is treated
as a Participant during any such periods of employment. The employee's interest
in the Plan continues to vest for each Year of Service completed while an
employee, until the account is forfeited or distributed pursuant to the terms of
the Plan. Additionally, the employee's account balance in the Plan continues to
share in the earnings or losses of the Trust.
Such employee will participate immediately upon returning to the class
of Employees.
Should an employee who was not a member of the eligible class of
Employees become an Employee, the employee becomes a Participant immediately if
the employee satisfies the eligibility requirements of the Plan and would
otherwise have become a Participant.
2.06 Participation Following Normal Retirement Age. A Participant who
continues to be employed beyond Normal Retirement Age continues to be a
Participant under the Plan.
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ARTICLE III - VESTING
3.01 Fully Vested and Nonforfeitable Account. A Participant's Elective
Contribution Account is fully vested at all times.
3.02 Vesting of Employer Matching Account. A Participant's Employer
Matching Contribution Account is fully vested upon the first of the following
events to occur:
(a) The Participant's attaining Normal Retirement Age.
(b) The Participant's Total and Permanent Disability;
(c) The Participant's death.
3.03 Period of Service for Vesting Purposes. Service for vesting
purposes is taken into account on the basis of Elapsed Time. For purposes of
this Section, whether service with a business entity (including but not limited
to new entrepreneurial ventures, new divisions, or Affiliated Employers) created
or acquired by the Employer or its Affiliated Employers that was not a
participant in the Plan on March 1, 1997, shall be deemed to be service with the
Employer will be determined by the Executive Committee of the Board of Directors
of Brown-Forman Corporation.
3.04 Vesting Schedule/Employer Matching Contribution Account. The
vested portion of a Participant's Employer Matching Contribution Account prior
to the occurrence of an event stated in Section 3.02 is a percentage of such
Account determined on the basis of Years of Service according to the following
schedule:
Vested Percentage
Years of Service of Account
---------------- -----------------
Less than 1 year 0%
1 year but less than 2 25%
2 years but less than 3 50%
3 years but less than 4 75%
4 years or more 100%
3.05 [Reserved].
3.06 Effect of Break in Service on Vesting.
(a) Reemployment Before Five Consecutive Breaks in Service.
If a terminated Participant is reemployed by the Employer before
incurring five consecutive Breaks in
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Service, both pre-break and post-break Years of Service will count in
vesting the Participant's Account balance.
(b) Reemployment of Vested Participant After Five Consecutive
Breaks in Service. If a Participant terminates employment with any
vested benefit and is reemployed after incurring five consecutive
Breaks in Service, all post-break service will be disregarded in
determining the vested percentage of such Participant's Account which
accrued prior to the break. However, all Years of Service (both
pre-break and post-break) will count for purposes of vesting the
Participant's Account which accrues after the break.
(c) Reemployment of Non-Vested Participant After Five Consecutive
Breaks in Service. If a Participant terminates employment with no
vested benefit whatsoever and is reemployed after incurring five
consecutive Breaks in Service, all service after the break is
disregarded in determining the vested percentage of the Participant's
Account that accrued prior to the break. Further, such Participant's
pre-break service counts for purposes of determining the vested
percentage of the Participant's Account which accrues after the break
only if upon reemployment the number of consecutive Breaks in Service
is less than the aggregate number of pre-break Years of Service.
For purposes of this subsection (c), in computing a Participant's
aggregate Years of Service completed prior to any Break in Service,
Years of Service which were disregarded by reason of any prior Break in
Service shall likewise be disregarded.
(d) Separate Accounts. If necessary, separate Accounts will be
maintained for amounts derived from Employer contributions made before
and after a Break in Service. Both Accounts will be adjusted by
earnings and losses of the Trust.
3.07 Date of Termination of Employment. The date a Participant
terminates employment other than by attaining Normal Retirement Age, Total and
Permanent Disability or death shall be the actual date of termination; provided,
however, if a Participant fails to resume employment with the Employer within
the terms of an authorized leave of absence, that Participant shall be deemed to
have terminated employment as of the date that Participant's authorized leave of
absence commenced.
3.08 Vesting and Nonforfeitability of Account Upon Plan Termination.
Upon termination, partial termination or complete discontinuance of Employer
contributions under the Plan, the rights of all affected Participants to
benefits accrued to the date of such termination, partial termination, or
discontinuance, to the extent funded as of such date, or the amounts credited to
the Participants' Accounts, are nonforfeitable. The Plan Administrator shall
compute and direct the Trustee to segregate such Accounts and the Accounts of
any other persons having an interest in the Trust.
3.09 Amendment of Vesting Schedule. No amendment to the Plan shall be
effective to the extent that, in the case of an Employee who is a Participant on
the later of the effective date or
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the adoption date of such amendment, it has the effect of reducing such
Participant's vested accrued benefit as calculated without regard to the
amendment. If the Plan's vesting schedule is amended or the Plan is amended in
any way that directly or indirectly affects the computation of a Participant's
vested percentage, or if the Plan is deemed amended by an automatic change to or
from a Top Heavy vesting schedule, each Participant with at least 3 Years of
Service as of the end of the election period may elect to have such
Participant's vested percentage computed under the Plan without regard to such
amendment or change.
The election period shall commence with the date the amendment is
adopted or deemed to be made and shall end on the latest of:
(a) 60 days after the amendment is adopted;
(b) 60 days after the amendment becomes effective; or
(c) 60 days after the Participant receives written notice
of the amendment from the Employer or Plan Administrator.
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ARTICLE IV - TIME AND MANNER OF PAYMENT
4.01 Time of Initial Payment of Retirement Benefits.
(a) In the event of termination of employment for any reason,
and upon Participant's filing of the necessary forms, documentation,
and application for benefits, initial payment of Participant's benefits
will begin as soon as administratively feasible;
However, unless the Participant elects in writing a later
commencement date, the pay ment of benefits shall begin not later than
the sixtieth (60th) day after the close of the Plan Year in which the
latest of the following occurs: (1) the Participant reaches age
sixty-five (65) or Normal Retirement Age, (2) the tenth (10th)
anniversary of commencing participation in the Plan, or (3) termination
of employment with the Employer.
(b) Under no circumstances will distribution of benefits begin
later than April 1 of the calendar year following the year in which a
Participant who is a 5% owner or a Participant who has terminated
employment attains age 70-1/2 (the "required beginning date").
4.02 Consent To Payment Of Benefits. Notwithstanding Section 4.01, if
the value of the Participant's vested benefit derived from Employer and Employee
contributions has ever exceeded $3,500, and the benefit is immediately
distributable, the Participant must consent to the distribution of benefits. The
consent must be obtained in writing within the 90 day period ending on the first
day on which the Participant is entitled to such benefits.
If a distribution is one to which Sections 401(a)(11) and 417 of the
Code do not apply, such distribution may commence less than 30 days after the
notice required under Section 1.411-(a)-11(c) of the Income Tax Code Regulations
is given, provided that:
(1) The Plan Administrator clearly informs the participant
that the participant has a right to a period of at least 30 days after receiving
the notice to consider the decision of whether or not to elect a distribution
(and, if applicable, a particular distribution option), and
(2) The participant, after receiving the notice, affirmatively
elects a distribution.
No consent shall be required if a distribution is required to satisfy
Code section 401(a)(9) or 415. In addition, upon termination of the Plan if the
Plan does not offer the option of a commercial annuity, the Participant's
account balance may, without the Participant's consent, be distributed to the
Participant or transferred to another defined contribution plan (other than an
employee stock ownership plan under Code section 4975(e)(7)) within the same
controlled group.
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An account balance is immediately distributable if any part of it could
be distributed to the Participant (or Surviving Spouse) before the Participant
attains (or would have attained) the later of Normal Retirement Age or age 62.
Absent such Participant's consent to receive benefits in excess of $3,500,
distribution of benefits shall begin no sooner than the later of age 62 or
Normal Retirement Age.
If the value of the Participant's vested benefit derived from Employer
and Employee contributions has never exceeded $3,500, the Plan Administrator
shall distribute the value of the entire vested portion of such account balance
in accordance with Section 4.01 without the need for consent of the Participant.
For purposes of this Section, if the value of a Participant's vested account
balance is zero, the Participant shall be deemed to have received a distribution
of such vested account balance.
4.03 Manner of Payment of Retirement Benefits. Distribution of a
Participant's benefits will be made to the Participant or Beneficiary by one of
the following methods as elected by the Participant:
(a) Single Payment. Payment may be in one lump-sum payment in
cash in the year in which distribution is to be made.
(b) Lifetime Payments. Payments may be made over a period not
extending beyond the life expectancy of the Participant or the joint
life expectancies of the Participant and the Participant's Beneficiary.
4.04 Payment Upon Death of Participant. If a Participant dies before
having received the entire vested balance of that Participant's benefits, such
remaining vested balance, plus the proceeds of any insurance on the life of the
Participant held in the Participant's Accounts, shall be paid to or for the
benefit of the Participant's Beneficiary in a lump sum payment in cash.
4.05 Calculation of Distributions.
(a) Minimum Amounts to be Distributed. Notwithstanding any
provisions to the contrary, all distributions required under this
Article IV shall comply with Code section 401(a)(9) and the proposed
regulations thereunder, including the minimum distribution incidental
benefit requirement of regulation 1.401(a)(9)-2.
(b) Determination Of Amount To Be Distributed Each Year. If
the Participant's interest is to be distributed in other than a single
sum, the following minimum distribution rules shall apply on or after
the required beginning date:
(i) If a Participant's benefit is to be distributed over (1) a
period not extending beyond the life expectancy of the Participant or
the joint life and last survivor expectancy of the Participant and the
Participant's designated Beneficiary
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or (2) a period not extending beyond the life expectancy of the
designated Beneficiary, the amount required to be distributed for each
calendar year, beginning with distributions for the first distribution
calendar year, must at least equal the quotient obtained by dividing
the Participant's benefit by the applicable life expectancy.
(ii) The amount to be distributed each year shall not be less
than the quotient obtained by dividing the Participant's benefit by the
lesser of (1) the applicable life expectancy or (2) if the
Participant's Spouse is not the designated Beneficiary, the applicable
divisor determined from the table set forth in Q&A-4 of section
1.401(a)(9)-2 of the proposed regulations. Distributions after the
death of the Participant shall be distributed using the applicable life
expectancy in subsection (i) above as the relevant divisor without
regard to proposed regulations section 1.401(a)(9)-2.
(iii) The minimum distribution required for the Participant's
first distribution calendar year must be made on or before the
Participant's required beginning date. The minimum distribution for
other calendar years, including the minimum distribution for the
distribution calendar year in which the employee's required beginning
date occurs, must be made on or before December 31 of that distribution
calendar year.
(iv) If the participant's benefit is distributed in the form
of an annuity purchased from an insurance company, distributions
thereunder shall be made in accordance with the requirements of section
401(a)(9) of the Code and the proposed regulations thereunder.
(c) Calculation of Life Expectancy. A determination of life expectancy
and joint and last survivor life expectancy will be made by use of the expected
return multiples in Section 1.72-9 of the regulations under the Code. Unless
otherwise elected by the Participant or Spouse by the time distributions are
required to begin, life expectancies will be recalculated annually. Such
election shall be irrevocable. The life expectancy of a non-Spouse Beneficiary
may not be recalculated.
4.06 Forfeiture of Non-vested Benefits.
(a) Forfeiture Upon Five Year Break in Service. Upon termination of a
Participant whose benefits are at least partially vested, the non-vested portion
of such benefits shall be transferred to an account holding potential
forfeitures. This account shall continue to be adjusted by earnings and losses
of the Trust; provided, however, in the case of any Participant who has incurred
five (5) or more consecutive Breaks in Service (Five Year Break in Service)
prior to the resumption of employment with the Employer, the non-vested portion
of such terminated Participant's benefits, and all regular periodic adjustments
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thereto, shall be deemed forfeited and shall be used to reduce the Employer's
contribution for the Plan Year within which the fifth Break in Service occurs.
Upon such forfeiture, such terminated Partici pant's Account shall be closed and
if the vested Account balance has not been paid to the Participant, the vested
portion of such Account shall be transferred to a separate Fully Vested Account
for such terminated Participant's benefit; provided, however, at such time as
the terminated Participant resumes employment with the Employer, an additional
separate Account shall be established for the Participant's benefit as if the
Participant were a new Participant, which Account shall be maintained separate
and distinct from the Participant's Fully Vested Account, until such Account
becomes fully vested at which time the Accounts may be merged.
(b) Forfeiture Prior to Five Year Break in Service. Upon termination of
employment of a non-vested Participant, or upon distribution of the vested
portion of a terminated Participant's benefits before the Accounting Date of the
second Plan Year following termination of employment, the non-vested portion of
such terminated Participant's benefits shall be deemed forfeited and shall be
allocated as of the Accounting Date of the Plan Year of termination of a
non-vested Participant, or the Plan Year in which distribution to a vested
Participant is made, in accordance with subsection (a) as though a Five Year
Break in Service had occurred. If less than the entire vested portion of the
account balance derived from Employer contributions is distributed, the part of
the nonvested portion that will be treated as a forfeiture is the total
nonvested portion multiplied by a fraction, the numerator of which is the amount
of the distribution attributable to Employer contributions and the denominator
of which is the total value of the vested Employer derived account balance.
(c) Restoration of Accounts.
(i) Partially Vested Participant. If a terminated Participant, who
has received a distribution of the entire vested portion of such
Participant's benefits is reemployed by the Employer prior to a Five
Year Break in Service, and repays to the Plan (in cash and/or kind, as
initially distributed) an amount equal to the full amount of such
distribution (repayment), then that portion of such terminated
Participant's benefits which was forfeited at the time of distribution
shall be reinstated by the Employer (in cash and/or kind as initially
forfeited) and added to such repayment to constitute the opening
balance of such Participant's Account upon the Participant's
reemployment; provided, however, reinstatement of such Participant's
forfeiture shall occur only where repayment by the Participant is
completed by the earlier of: (1) the last day of the Plan Year within
which the Participant has five consecutive Breaks in Service or (2)
five years after the Participant is reemployed by the Employer. If a
terminated Participant incurs five consecutive Breaks in Service,
repayment will not be permitted.
(ii) Non-Vested Participant. If a terminated Participant who had
no vested interest in his benefits is reemployed by the Employer before
the Participant's
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consecutive Breaks in Service equal or exceed the greater of (1) five,
or (2) the aggregate number of pre-break Years of Service, that
terminated Participant's benefits, if previously forfeited shall be
reinstated (in cash or in kind as initially forfeited) to constitute
the opening balance of such Participant's Account.
(d) Source of Restoration. Restoration pursuant to subsection (c) of
this Section shall be made from the following sources in the order described:
(1) From the forfeiture of such terminated Participant's Account
which has not yet been applied pursuant to subsection (a) above (the
account of potential forfeitures); or if insufficient,
(2) From forfeitures applicable as of the Accounting Date of the
Plan Year within which repayment is completed; or if insufficient,
(3) From the Employer contributions for the Plan Year within which
such repayment is completed; and if necessary, for the Plan Year next
following.
(e) Make-Up Contribution and Time of Restoration. Restoration of a
forfeiture pursuant to this subsection (e) shall in all events be completed by
the Accounting Date of the Plan Year next following the Plan Year within which
the repayment is completed.
4.07 Fully Vested Account. The Fully Vested Account is the account
established for the benefit of a Participant to hold the vested portion of a
Participant's benefits upon forfeiture of the non-vested portion of the
Participant's benefits. Where a Fully Vested Account is not distributed
coincident with the application of the Participant's forfeiture, it shall
continue to be adjusted by earnings and losses of the Trust; provided, however,
it shall no longer be increased by contributions or forfeitures. A Fully Vested
Account shall be subject to the time and manner of payment provisions of Article
IV of the Plan.
4.08 Suspension of Benefits. Payment of benefits attributable to
Employer contributions may be suspended for any period during which a terminated
Participant is reemployed by the Employer.
4.09 Pre-1984 Election. [Reserved].
4.10 Hadship Distribution.
(a) The Plan Administrator, at the election of the Participant,
shall permit a distribution from the Participant's Account(s) (except
for any Special Employer Contributions and earnings credited to the
Participant's Elective Account) of an amount necessary to satisfy the
Participant's immediate and heavy financial need where the Participant
lacks other available resources on account of:
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(i) accident or illness involving the Participant or a
membe of the Participant's immediate family or household or other
dependant,
(ii) tuition and related educational fees for the next twelve
(12) months for post-secondary education of a member of the
Participant's immediate family or other dependent,
(iii) the cost of buying the principal residence of
the Participant, not including making mortgage payments,
(iv) the cost of preventing an eviction or mortgage
foreclosure on the Participant's principal residence, or
(v) another circumstance which the Plan Administrator
determines constitutes an immediate and heavy financial need.
No hardship distribution shall exceed the vested portion of a
Participant's applicable Account determined as of the most recent Accounting
Date. Such a distribution is deemed made as of the first day of the Plan Year,
or if later, the most recent Accounting Date, and the Participant's Account(s)
shall be reduced accordingly. Any distribution shall be made in a manner
consistent with the requirements of this Article IV, including all notice and
consent requirements.
(b) Rules for Hardship Distributions. Distributions shall be
carried out under the following rules:
(i) The Participant is limited to two (2) hardship
distributions per Plan Year.
(ii) The Participant shall apply for the distribution under
procedures fixed by the Plan Administrator.
(iii) The application shall include a signed statement
of the facts causing financial hardship and any other facts
required by the Plan Administrator.
(iv) The distribution shall not exceed the amount of
the financial need.
(v) The Participant shall obtain all distributions and
nontaxable loans available under all plans of the Employer.
(vi) The Participant's Elective Contributions under all plans
of the Employer for the year immediately following the year of the
hardship distribution shall not exceed $7,979 (adjusted pursuant
to the method provided in Code section
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415(d)) less the amount of the Participant's Elective
Contributions for the year of the hardship distribution.
4.11 Limitation for Qualified Domestic Relations Order. All rights and
benefits, including elections, provided to a Participant in this Plan shall be
subject to the rights afforded to any Alternate Payee under a Qualified Domestic
Relations Order as those terms are defined in Code section 414(p). Upon receipt
of a Qualified Domestic Relations Order which orders plan benefits for a
Participant's Spouse, the Trustee may immediately pay such benefits in
accordance with the Qualified Domestic Relations Order regardless of the fact
that the Participant may not have reached "the earliest retirement age" as
defined in Code section 414(p). Attorneys fees and expenses directly related to
the determination of qualification of a domestic relations order and the
preparation and administration of such Qualified Domestic Relations Order may be
charged against and paid from the Accounts of the Participant named in the
order.
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ARTICLE V - CONTRIBUTIONS BY THE EMPLOYER
5.01 Elective Contribution by Employer. Each Plan Year the Employer
shall contribute to the Trust the amount of the total salary reduction Election
Requests of all Participants made pursuant to Article VI (Elective
Contribution). The contributions made pursuant to this Section shall be credited
to each Participant's Elective Account in accordance with Section 7.01.
5.02 Matching Contribution by Employer. Each Plan Year the Employer
shall contribute to the Trust a Matching Contribution on behalf of each
Participant receiving an Elective Contribution for the Plan Year. The amount of
the Matching Contribution shall be equal to 25% of the Participant's Elective
Contributions. However, in applying the foregoing matching percentages,
effective from March 1, 1997 to October 3, 1999, only Participant Elective
Contributions up to the first 2% of Compensation deferred for the Plan Year
shall be considered. Effective October 4, 1999, only the first 4% of
Compensation deferred for the Plan Year shall be considered. The Matching
Contribution shall be credited to the Employer Matching Contribution Account of
eligible Participants in accordance with Section 7.02.
5.03 Deduction of Employer Contributions. Notwithstanding the foregoing
Sections of Article V, to the extent that any deduction for an Employer
contribution is disallowed, such contribution (to the extent disallowed) may at
the option of the Employer be returned to the Employer provided the return is
accomplished within one (1) year after the disallowance of the deduction.
5.04 Limits on Elective and Matching Contributions. For each Plan Year,
the Plan shall satisfy the nondiscrimination tests of Code sections 401(a)(4),
401(k)(3) and 401(m) in accordance with Regulation 1.401(k)-1 and proposed
Regulation 1.401(m)-1 and -2. The Code and Regulation sections are incorporated
by this reference.
Neither the Actual Deferral Percentage ("ADP") nor the Actual
Contribution Percentage ("ACP") of the Highly Compensated Employees may exceed
the greater of the following:
(a) 1.25 times the ADP or ACP of all other eligible Employees, or
(b) 2 percentage points higher than the ADP or ACP of all
other eligible Employees, up to 2 times such ADP or ACP.
To prevent the multiple use of the tests in this subsection (b), if a
Highly Compensated Participant is eligible to make elective deferrals pursuant
to any cash or deferred arrangement maintained by the Employer or an Affiliated
Employer, or to make Employee contributions or receive matching contributions
under this or any other plan maintained by the Employer or an Affiliated
Employer, such Participant's Actual Contribution Percentage shall be reduced
pursuant
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to Treasury regulation 1.401(m)-2. The provisions of regulations 1.401(m)-1(b)
and 1.401(m)-2 are incorporated by reference.
The Actual Deferral Percentage for each Participant is calculated by
dividing the Participant's Elective Contributions for a Plan Year used in
performing the calculations by the Participant's Compensation for such Plan
Year. The ADP for each group ((i) Highly Compensated Employees and (ii)
non-Highly Compensated Employees) is the average of the ADPs of each eligible
Participant in the group, calculated to the nearest one-hundredth of one
percent. Elective Contributions allocated to non-Highly Compensated Participants
shall not include Excess Deferrals (determined pursuant to Section 6.01.)
The Actual Contribution Percentage for each Participant is calculated
by dividing the Participant's Matching Contributions for the Plan Year used in
performing the calculations by the Participant's Compensation for such Plan
Year. The ACP for each group ((i) Highly Compensated Employees and (ii)
non-Highly Compensated Employees) is the average of the ACPs of each eligible
Participant in the group calculated to the nearest one-hundredth of one percent.
For purposes of this Section, Compensation shall include salary
reduction contributions made under this Plan or to a cafeteria plan.
If a Highly Compensated Participant is a Participant under two or more
plans of the Employer or an Affiliated Employer (other than an employee stock
ownership plan as defined in Code section 4975(e)(7)) to which Elective
Contributions or Matching Contributions are made, such contributions on behalf
of such Highly Compensated Participant shall be aggregated in determining the
ADP and ACP of such Participant. If the plans have different plan years, all
plans ending within the same calendar year shall be treated as a single plan.
If this Plan satisfies the requirements of Code sections 401(k),
401(m), 401(a)(4), or 410(b) only if aggregated with one or more other plans, or
if one or more other plans satisfy such requirements only if aggregated with
this Plan, then the ADP and ACP of employees shall be determined as if all such
plans were a single plan. Plans may be aggregated to satisfy Code section 401(k)
and 401(m) only if they have the same Plan Year.
5.05 Special Employer Contributions. Within 12 months after the end of
the Plan Year, the Employer may make a discretionary Special Employer
Contribution to the Trust which shall be allocated to the Elective Accounts of
eligible Participants to the extent necessary to satisfy one of the
nondiscrimination tests specified in the Section 5.04.
The Employer may, in its discretion, allocate Special Employer
Contributions under one of the following methods:
(a) To each eligible Participant or group of eligible
Participants in the ratio each such eligible Participant's Compensation bears to
the Compensation of all such eligible Participants.
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(b) As a level dollar amount to each eligible Participant or
group of eligible Participants.
(c) To the lowest paid eligible Participant or group of
eligible Participants, up to the lesser of the amount permitted by law or the
amount necessary to pass the nondiscrimination test. If this amount is not
sufficient to pass the nondiscrimination test, a similar Special Employer
Contribution may be made for the next lowest paid eligible Participant or group
of eligible Participants. This process may be repeated until the
nondiscrimination test is satisfied.
(d) To the highest paid eligible Participant or group of
eligible Participants, up to the lesser of the amount permitted by law or the
amount necessary to pass the nondiscrimination test. If this amount is not
sufficient to pass the nondiscrimination test, a similar Special Employer
Contribution may be made for the next highest paid eligible Participant or group
of eligible Participants. This process may be repeated until the
nondiscrimination test is satisfied.
Special Employer Contributions made pursuant to this Section are fully
vested and treated like Elective Contributions, except for purposes of matching
under Section 5.02. If Special Employer Contributions are made for purposes of
satisfying one of the nondiscrimination tests outlined in Section 5.04, a
separate accounting shall be maintained within the applicable Elective
Contribution Accounts to prevent such Special Employer Contributions from being
taken into consideration for purposes of determining whether any other
contributions satisfy the remaining nondiscrimination tests. Further, the
contributions shall satisfy the nondiscrimination requirements in accordance
with Regulation 1.401(k)-1(b)(5) and Regulation 1.401(m)-1(b)(5), incorporated
herein by reference.
5.06 Correction of Excess Elective Contributions. If the amount of
Elective Contributions allocated to the group of Highly Compensated Participants
exceeds the nondiscrimination tests specified in Section 5.04, the Plan
Administrator shall distribute to the Highly Compensated Participant having the
highest dollar amount of elective deferrals such Participant's excess amounts
("Excess Contributions") and income allocable thereto (determined under
applicable regulations) until the excess amounts have been distributed, or until
such Participant's dollar amount of elective deferrals equals the dollar amount
of elective deferrals of the Highly Compensated Participant having the second
highest dollar amount of elective deferrals. This process shall continue until
the excess amounts have been distributed. The amount of Excess Contributions for
a Highly Compensated Participant is then equal to the total of elective and
other contributions taken into account for the ADP test, minus the product of
the employee's ADP (as determined after application of this Section) and the
employee's compensation used in determining that ratio. The amount of Excess
Contributions to be distributed shall be reduced by any previous distribution of
Excess Deferrals (pursuant to Section 6.01) for the employee's taxable year
ending in the same Plan Year.
Excess Contributions shall within two and one-half months after the
Plan Year end be distributed to the Participant. Distribution may be postponed
but not later than the close of the Plan Year following the Plan Year in which
the Excess Contribution was allocable; however, if the
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Excess Contributions are not corrected within two and one-half months after the
Plan Year end, a 10% excise tax will be imposed on the Employer on such amounts.
The Employer shall designate the distribution as Excess Contributions.
The income allocable to Excess Contributions includes income for the
Plan Year for which the Excess Contributions were made.
Distribution shall be made first from unmatched Elective Contributions,
and then simultaneously from matched Elective Contributions and Matching
Contributions which relate to such Elective Contributions. However, any such
Matching Contributions which are not vested shall be forfeited in lieu of
distribution.
5.07 Correction of Excess Employer Matching Contributions. If the
amount of Matching Contributions allocated to the group of Highly Compensated
Participants exceeds the nondiscrimination tests specified in Section 5.04, the
Plan Administrator shall distribute (or forfeit, if applicable) to the Highly
Compensated Participant having the highest dollar amount of matching
contributions such Participant's excess amounts ("Excess Aggregate
Contributions") and income allocable thereto (determined under applicable
regulations) until the excess amounts are distributed/forfeited, or until such
Participant's dollar amount of matching contributions equals the dollar amount
of matching contributions of the Highly Compensated Participant having the
second highest dollar amount of matching contributions. This process shall
continue until the excess amounts are distributed/forfeited. The amount of
Excess Aggregate Contributions for a Highly Compensated Employee is then equal
to the total of voluntary, matching and other contributions taken into account
for the ACP test, minus the product of the Employee's ACP (as determined after
application of this Section) and the Employee's Compensation used in determining
that ratio.
Excess Aggregate Contributions shall be forfeited or distributed within
two and one-half months after the Plan Year end. Forfeiture/distribution may be
postponed but not later than the close of the Plan Year following the Plan Year
in which the excess amount was allocable; however, if the Excess Aggregate
Contributions are not corrected within two and one-half months after the Plan
Year end, a 10% excise tax will be imposed on the Employer on such amounts. The
Employer shall designate the forfeiture/distribution as Excess Aggregate
Contributions. The order of forfeiture/distribution shall be as follows:
(a) Matching Contributions distributed and/or forfeited
pursuant to Section 5.07.
(b) Voluntary Contributions, if any, including
recharacterized amounts;
(c) remaining Matching Contributions.
The income allocable to Excess Aggregate Contributions includes income
for the Plan Year for which the Excess Aggregate Contributions were made.
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5.08 Return of Contribution. In the case of a contribution which is
made by the Employer by a mistake of fact, such contribution may be returned to
the Employer within one (1) year after the payment of the contribution. In the
case of a contribution for which a deduction is disallowed under Internal
Revenue Code Section 404, such contribution may be returned to the Employer
within one (1) year following the disallowance or as permitted or required by
the Code or by ERISA.
5.09 Plan and Trust Conditioned on Approval and Qualification. The
Employer has established the Plan and Trust conditioned on their being qualified
by the Internal Revenue Service pursuant to Code sections 401 and 501 and other
applicable sections. If the Internal Revenue Service rules that such Plan is not
qualified, the Employer reserves the right to recover contributions which were
made prior to a final ruling from the Internal Revenue Service with respect to
the initial determination as to qualification of the Plan and Trust. Any
contribution of the Employer shall be returned to the Employer within one (1)
year after the date of the final ruling with respect to the denial of initial
qualification of the Plan and Trust.
5.10 Funding Policy. The Employer shall establish a funding policy for
the Plan and a method to carry out Plan objectives which shall satisfy the
requirements of Title I of the Employee Retirement Income Security Act of 1974.
All actions taken with respect to such funding policy and method and the reasons
therefore shall be recorded by the Employer and communicated to the Trustee.
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ARTICLE VI - PARTICIPANT CONTRIBUTIONS
6.01 Amount of Elective Contribution. Each Participant may elect to
defer his or her Compensation and have the Employer make an Elective
Contribution to the Trust on behalf of the Participant. Elective Contributions
may be an amount between two (2%) percent and fifteen (15%) percent (in 1%
increments) of the Participant's Compensation, but a Participant's Elective
Contribution for a calendar year under the Plan and all other plans, contracts
and arrangements of an employer, shall not exceed the 402(g) limitation, which
is a dollar amount as adjusted pursuant to the method provided in Code section
415(d) for the Participant's taxable year. The Plan Administrator may fix lower
maximums for Highly Compensated Employees to satisfy the nondiscrimination tests
of Section 5.04.
If the dollar limitation provided above is exceeded, the excess amount
("Excess Deferral"), plus any income and minus any loss attributable to such
amount, shall be distributed to the Participant by April 15 of the year
following the year in which the excess amount was contributed, and in no event
later than the last day of the Plan Year following the Plan Year in which the
excess arose. The amount distributed shall not exceed the Participant's salary
reduction contribution under the Plan for the year. A Participant's Excess
Deferral shall be reduced (but not below zero) by any previous distribution or
recharacterization of Excess Contributions pursuant to Section 5.06 for the Plan
Year beginning within the Participant's taxable year.
6.02 Election Request. Elective Contributions for Participants shall be
such amounts as the Participant elects to have contributed on the Participant's
behalf pursuant to a salary reduction Election Request completed by the
Participant and filed with the Employer. Under no circumstances may an Election
Request be adopted retroactively.
6.03 Change of Rate. Participants may change the rate of the Elective
Contribution (in accordance with the Election Request form) by notifying the
Employer and the Plan Administrator at least fifteen (15) days prior to the date
such changes in contribution are to take effect, or at any other time mutually
agreeable between the Employer and the Participant, provided that all
Participants under similar circumstances are treated alike. The Participant is
limited to three (3) such changes for the Plan Year.
6.04 Distributions from Elective Account. Amounts held in a
Participant's Elective Contribution Account may be distributed only upon:
(i) the Participant's retirement, death, Total and Permanent
Disability, or separation from service;
(ii) the termination of the Plan without the existence or
establishment of another defined contribution plan (other than an
employee stock ownership plan);
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(iii) the sale by the Employer to an unrelated entity of
substantially all of the assets (within the meaning of Code section
409(d)(2)) used in a trade or business of such corporation if the
Participant continues employment with the corporation acquiring such
assets;
(iv) the sale by the Employer to an unrelated entity of its
interest in a subsidiary (within the meaning of Code section
409(d)(3)), with respect to a Participant who continues employment with
such subsidiary;
(v) the Participant's financial hardship, pursuant to Section
4.10; or
(vi) pursuant to Sections 6.01 and 5.06.
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ARTICLE VII - ALLOCATION TO INDIVIDUAL PARTICIPANTS
7.01 Allocation of Elective Contributions. Each Plan Year the Employer
shall allocate the Elective Contribution made on behalf of a Participant subject
to such Participant's Election Request to the Elective Contribution Account of
such Participant in the same manner as the contribution is determined pursuant
to Section 6.01.
7.02 Allocation of Matching Contribution. Each Plan Year Employer
Matching Contributions shall be allocated to the Employer Matching Contribution
Account of each eligible Participant receiving an Elective Contribution in the
same manner as the Matching Contribution is determined pursuant to Section 5.02.
Participants shall be eligible to receive a Matching Contribution only
if they are active Participants on the last day of the calendar quarter to which
the contribution relates.
7.03 Allocation of Forfeitures. As of each Accounting Date, any amounts
which became forfeitures shall first be made available to reinstate previously
forfeited account balances of reemployed Participants, if any. The remaining
forfeitures shall be used to reduce the Employer's matching contribution for the
current Plan Year.
7.04 Amendment of Allocation Eligibility. [Reserved.]
7.05 Maximum Additions to Participant's Account. Notwithstanding any
Plan provisions to the contrary, the maximum "Annual Additions" credited to any
Participant's Accounts and the "Annual Additions" to the account of the same
Employee as a Participant in any other defined contribution plan of the Employer
shall equal the lesser of: (1) thirty thousand dollars ($30,000), or, if
greater, one-fourth of the dollar limitation in effect under Code section
415(b)(1)(A)), or (2) twenty-five percent (25%) of the Participant's
compensation.
"Annual Additions" with respect to any Participant shall mean the sum
credited to a Participant's Accounts for any Limitation Year of: (1) Employer
contributions; (2) Employee contributions; (3) forfeitures; (4) amounts
allocated, after March 31, 1984, to an individual medical account (as defined in
Code section 415(1)(2)) which is part of a pension or annuity plan maintained by
the Employer, and (5) amounts derived from contributions paid or accrued after
December 31, 1985, in taxable years ending after such date, which are
attributable to post-retirement medical benefits allocated to the account of a
key employee (as defined in Code section 419(A)(d)(3)) under a welfare benefit
plan of the Employer. Annual Additions shall not include the transfer of funds
from one qualified plan to another, rollover contributions, repayment of a loan
made from the plan, repayment of distributions after cash-outs, and Employee
contributions to a SEP which are excludible from gross income.
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The "Limitation Year" is the Plan Year, or such other twelve (12)
consecutive month period as designated by resolution of the Employer; however,
in the absence of such resolution, the Limitation Year shall be the Plan Year.
If as a result of the allocation of forfeitures, a reasonable error in
estimating a Participant's Compensation, or other facts and circumstances which
the Commissioner finds justify the availability of the rules of this Section,
the Annual Additions to a Participant under this Plan would cause the maximum
Annual Additions to such Participant's Accounts to be exceeded, the Plan
Administrator shall:
(a) Return any elective contributions credited for the
Limitation Year to the extent the return would reduce the excess amount
in the Participant's Accounts;
(b) Hold any remaining excess after the return of elective
contributions in the Participant's Account to be used to reduce
Employer contributions in the next Limitation Year and succeeding years
if necessary;
(c) If an excess amount still exists and the Participant
is not covered by the Plan at the end of a Limitation Year, the excess
amount will be held in a suspense account and applied to reduce
Employer contributions for all remaining Participant's in the next
Limitation Year (and succeeding years if necessary) before any Employer
or Employee contributions may be made to the Plan for that Limitation
Year; or
(d) Reduce Employer Matching Contributions to the Plan for
such Limitation Year by the amount of the suspense account allocated
and reallocated during such Limitation Year.
Such suspense account may or may not be adjusted by investment gains or
losses. Upon termination of the Trust any amounts held in such suspense account
shall not be distributed but shall be returned to the Employer to the extent
they cannot be allocated to Participants because of the limitations under Code
section 415.
For purposes of this Section, "compensation" for any Employee shall
mean a Participant's earned income, wages, salaries, fees for professional
services and other amounts for personal services rendered in the course of
employment with the Employer (including, but not limited to, commissions paid
salespersons, compensation for services based on a percentage of profits,
commissions on insurance premiums, tips and bonuses) paid during the Limitation
Year, but excluding the following:
(a) Employer contributions to a plan of deferred
compensation which are not includible in the Participant's gross income
in the year in which contributed;
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(b) any distributions from a plan of deferred compensation
(except from an unfunded nonqualified plan when includible in gross
income);
(c) Employer contributions under a simplified employee
pension plan to the extent such contributions are deductible by the
employee;
(d) amounts realized from the exercise of a non-qualified
stock option, or when restricted stock (or property) held by the
employee either becomes freely transferrable or is no longer subject to
a substantial risk of forfeiture;
(e) amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock option;
(f) other amounts which receive special tax benefits, or
contributions made by the Employer (whether or not under a salary
reduction agreement) towards the purchase of an annuity described in
Code section 403(b) (whether or not the amounts are actually excludible
from the employee's gross income.)
Compensation shall be limited to $150,000 as adjusted in the same
manner as permitted under Code section 415(d).
7.06 Overall Limit. In addition to the foregoing if any Participant is
(or has been) a Par ticipant under any defined benefit plan of the Employer, the
sum of the Defined Benefit and Defined Contribution Fractions (defined below)
for any Limitation Year shall not exceed 1.0.
(a) Defined Benefit Fraction. The Defined Benefit Fraction
for any Limitation Year is a fraction, the numerator of which is the
Participant's projected annual benefit under the Plan at Normal
Retirement Age (determined at the close of the Limitation Year), and
the denominator of which is the lesser of (a) 1.25 multiplied by the
dollar limitation provided under Code section 415(b)(1)(A) for such
Limitation Year, as adjusted, or (b) 1.4 multiplied by the amount which
may be taken into account under Code section 415(b)(1)(B) for such
Limitation Year.
Notwithstanding the above, if the Participant was a
Participant as of the first day of the first Limitation Year beginning
after December 31, 1986, in one or more defined benefit plans
maintained by the employer which were in existence on May 6, 1986, the
denominator of this fraction will not be less than 125 percent of the
sum of the annual benefits under such plans which the Participant had
accrued as of the close of the last Limitation Year beginning before
January 1, 1987, disregarding any changes in the terms and conditions
of the plan after May 5, 1986. The preceding sentence applies only if
the defined benefit plans individually and in the aggregate satisfied
the requirements of Code section 415 for all Limitation Years beginning
before January 1, 1987.
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(b) Defined Contribution Fraction. The Defined
Contribution Fraction is a fraction, the numerator of which is the sum
of Annual Additions to a Participant's account made under all defined
contribution plans of the Employer (whether or not terminated) for
the current and all prior Limitation Years (including the annual
additions attributable to the participant's nondeductible employee
contributions to the participant's plans, whether or not terminated,
maintained by the employer, and the annual additions attributable to
all welfare benefit funds, as defined in section 419(e) of the Code,
and individual medical accounts, as defined in section 415(1)(2) of the
Code maintained by the employer); and the denominator of which is the
sum of the lesser of the following amounts determined for the current
Limitation Year and all prior years of service with the Employer
(regardless of whether a defined contribution plan was maintained by
the Employer): (a) 1.25 multiplied by the dollar limitation determined
under Code section 415(b) and (d) in effect under Code section
415(c)(1)(A), or (b) 35 percent of the Participant's compensation for
such year.
If the employee was a Participant as of the end of the
first day of the first Limitation Year beginning after December 31,
1986, in one or more defined contribution plans maintained by the
employer which were in existence on May 6, 1986, the numerator of this
fraction will be adjusted if the sum of this fraction and the defined
benefit fraction would otherwise exceed 1.0 under the terms of this
Plan. Under the adjustment, an amount equal to the product of (1) the
excess of the sum of the fractions over 1.0 times (2) the denominator
of this fraction, will be permanently subtracted from the numerator of
this fraction. The adjustment is calculated using the fractions as they
would be computed as of the end of the last Limitation Year beginning
before January 1, 1987, and disregarding any changes in the terms and
conditions of the Plan made after May 5, 1986, but using the section
415 limitation applicable to the first Limitation Year beginning on or
after January 1, 1987. The Annual Addition for any Limitation Year
beginning before January 1, 1987 shall not be recomputed to treat all
Employee contributions as Annual Additions.
For purposes of this Section, all defined benefit plans of the
Employer, whether or not terminated, are to be treated as one defined benefit
plan and all defined contribution plans of the Employer, whether or not
terminated, are to be treated as one defined contribution plan.
The extent to which the contribution made to the Participant's Account
under this Plan shall be reduced as compared with the extent to which the annual
benefit under any other defined benefit plans or defined contribution plans
shall be reduced in order to achieve compliance with the limitations of Internal
Revenue Code Section 415 shall be determined by the Plan Administrator in such a
manner so as to maximize the aggregate benefits payable to such Participant. If
such reduction is under this Plan, the Plan Administrator shall advise affected
Participants of any additional limitation on their annual contribution or
benefits required by this paragraph.
7.07 Date of Allocation to Accounts. For all purposes of this Plan,
allocations to Participants' Accounts shall be deemed to have been made on the
Accounting Date to which they are related, although they may actually be
determined on some later date.
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7.08 Expenses of Plan. All necessary expenses of administering this
Plan, including Trustee's fees, attorney's fees, or consulting fees, and any
other necessary expenses that may arise in connection with this Plan shall be
paid by the Trustee from the income or corpus of the Trust unless they are paid
by the Employer.
7.09 Participant Direction of Investment.
(a) A Participant has the right to direct the Trustee with
respect to the investment or re-investment of the assets comprising the
Participant's individual accounts. The Trustee will accept direction from each
Participant on a written election form (or other written agreement), as a part
of this Plan containing such conditions, limitations and other provisions the
parties deem appropriate. The Trustee or, with the Trustee's consent, the Plan
Administrator, may establish written procedures, incorporated specifically as
part of this Plan, relating to Participant direction of investment under this
Section 7.09.
(b) The Trustee will maintain a segregated investment Account
to the extent a Participant's Account is subject to Participant self-direction.
Each such segregated investment Account shall be adjusted with the earnings,
losses and expenses attributable to said Account.
(c) The Employer and the Trustee intend that this Plan qualify
as an ERISA 404(c) Plan, and as such, the Plan's fiduciaries are relieved of
fiduciary responsibility or liability for any losses resulting from a
Participant's direction of the investment of any part of the Participant's
directed Accounts.
7.10 Periodic Adjustments to Account. The Account(s) held in trust
for the benefit of a Participant shall be adjusted in an equitable and
reasonable manner, generally to be determined as follows unless circumstances
require otherwise in fairness:
(a) Regular Periodic Adjustments. As of each Accounting Date,
before allocation of contributions and forfeitures, any increase or
decrease in the fair market value of the Trust since the immediately
preceding Accounting Date shall be computed by the Trustee, and such
increase or decrease shall be credited to or deducted from the
nonsegregated accounts of all Participants in the proportion that the
balance of each Participant's Accounts bears to the total current
balance of all Participant's Accounts. An equitable adjustment shall be
made to the Account(s) of any Participant receiving distributions
during the Plan Year.
(b) Determination of Increase or Decrease. For the purposes of
subsection (a) of this Section, the increase or decrease in the fair
market value of the Trust shall be the difference between the
following:
(i) The fair market value of the Trust on the current
Accounting Date as of which the calculation is made,
excluding the Employer's contribution and all voluntary
contributions of Participants for the current Accounting Date,
less
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(ii) The fair market value of the Trust on the
immediately preceding Accounting Date, including the
Employer's contribution and all voluntary contributions of
Participants as of such Accounting Date, but not including any
amount falling due and paid from the Trust during such Plan
Year.
(c) Account Valuation for Distribution Purposes. For purposes
of benefit distribution, a Participant's Account shall be valued as of
the Accounting Date coincident with or immediately preceding the date
of distribution; (but in the case of a Participant's Voluntary
Contribution Account shall also include the amount of any voluntary
contributions made by the Participant after such Accounting Date):
provided, however, if the Plan Administrator directs payment of a
Participant's Accounts in any manner other than a single payment to be
made prior to the next regular periodic adjustment of Accounts such
Participant's Accounts shall continue to receive regular periodic
adjustments as aforesaid, but shall no longer be increased by the
allocation of Employer contributions.
(d) Single Payment and Interim Valuation. In the event that,
for whatever reason, distribution of a Participant's Account is to be
made in a single payment, such Account may, at the option of the Plan
Administrator, be adjusted for the purposes of such distribution in
order to account for any substantial changes in the value of the Trust
assets since such Account's most recent regular periodic adjustment. In
such event, the Plan Administrator shall restate the value of the Trust
assets in order to determine the percentage of increase or decrease in
the fair market value of all net Trust assets (deducting any advance
contributions and any voluntary contributions of Participants for the
Plan Year in question) as of the end of the month (hereinafter referred
to as the Interim Valuation Date) next preceding the date of
distribution of the Account. The Participant's Account, as of the
Accounting Date immediately preceding such Interim Valuation Date,
shall, for the purpose of distribution only, be adjusted to reflect
such increase or decrease, as the case may be, by multiplying such
Account by the percentage determined as aforesaid. Such interim
valuation percentage once determined shall be applied to the Accounts
of any other Participants who are to receive a distribution of their
Account in a single payment following such Interim Valuation Date but
prior to the next regular periodic adjustment of Accounts, or the next
Interim Valuation Date, whichever is earlier.
(e) Self-Directed Accounts. Participants segregated accounts
shall be adjusted with their separate increase or decrease.
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ARTICLE VIII - TOP HEAVY PROVISIONS
8.01 When Provisions Effective. The following Top Heavy provisions
shall become effective in any Plan Year in which the Plan is determined to be a
Top Heavy Plan, and will supersede any conflicting Plan provisions.
8.02 Determination of Top Heavy. The Plan will be considered a Top
Heavy Plan for the Plan Year if as of the Determination Date (the last day of
the preceding Plan Year, or in the first Plan Year the last day of the Plan
Year) the sum of the present value of accrued benefits of Key Employees and/or
the total of the account balances of Key Employees under this Plan and all plans
of an "Aggregation Group" (as defined below), exceeds 60% of the sum of the
present value of accrued benefits and the total account balances of all
Participants under this Plan and/or all plans of an Aggregation Group. However,
this Plan shall not be considered Top Heavy if it is part of an Aggregation
Group that is not Top Heavy.
The determination of account balances and/or accrued benefits to be
used in the calculation of the Top Heavy ratio and the extent to which
distributions, rollovers and transfers are taken into account will be made in
accordance with Section 416(g) of the Code and the regulations thereunder.
The accrued benefits and/or account balance of a Participant (1) who is
not a Key Employee but was a Key Employee in a prior year, or (2) has not
performed any services for any Employer maintaining the Plan during the 5-year
period ending on the Determination Date, shall be disregarded.
"Aggregation Group" means either a Required Aggregation Group or a
Permissive Aggregation Group as defined below:
(a) Required Aggregation Group means: (1) each plan of the
Employer in which a Key Employee is a Participant, and (2) each other
plan of the Employer which enables any plan described in (1) above to
meet the requirements of Section 401(a)(4) or 410 of the Code. A
Required Aggregation Group shall include any terminated plan of the
Employer if it was maintained within the last five (5) years ending on
the Determination Date.
(b) Permissive Aggregation Group means any plans of the
Employer not required to be included in a Required Aggregation Group
but which may be combined and treated as part of such group if such
group would continue to meet the requirements of Section 401(a)(4) and
410 of the Code. In the case of a Permissive Aggregation Group, only a
plan that is part of the Required Aggregation Group will be considered
a Top Heavy plan if the Permissive Aggregation Group is Top Heavy.
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Key Employee means an employee as defined in Code section 416(i) and
the regulations thereunder. For purposes of determining who is a Key Employee,
"compensation" shall mean compensation as defined in Code section 415(c)(3), but
including amounts contributed by the Employer pursuant to a salary reduction
agreement which are excludible from the employee's gross income under Code
section 125, 402(a)(8), 402(h) or 403(b).
8.03 Minimum Benefits. The provisions of Article VII notwithstanding, a
minimum contribution must be provided by the Employer contribution and/or
forfeitures to the account of each non-Key Participant equal to the lesser of
(1) 3% of Compensation, or (2) if the Employer has no defined benefit plan which
designates this Plan to satisfy Code section 401(a)(4) or 410, the largest
percentage of Employer contribution and/or forfeitures allocated to the Account
of a Key Employee. Such minimum contribution must be allocated to the account of
all non-Key Participants who are employed by the Employer on the Accounting
Date, regardless of the number of Hours of Service credited during the Plan Year
to which the contribution relates, regardless of whether or not the Participant
makes mandatory contributions for the Plan Year to which the contribution
relates, and regardless of the Participant's level of Compensation.
If the Employer maintains one or more other qualified defined
contribution plans, and if the Plans are a part of the Required or Permissive
Aggregation Group, the minimum benefit for Non-Key Employees may be provided in
any one of the Plans, or the minimum benefit requirement may be satisfied by
aggregating the contributions made in all of the aggregated defined contribution
plans of the Employer.
8.04 Impact on Maximum Benefits. For any Plan Year in which the Plan is
a Top Heavy Plan but not a Super Top Heavy Plan, Section 7.07 shall be read by
substituting the number 1.00 for the number 1.25 wherever it appears therein,
unless the Plan meets the following additional minimum benefit requirements:
(i) If a Key Employee is a Participant in both this Plan and
a defined benefit plan included in a Required Aggregation Group which
is Top Heavy, the minimum allocation shall be provided for each non-Key
Employee who is a Participant only in this Plan by substituting four
percent (4%) for three percent (3%) in Section 8.04;
(ii) If a Key Employee is a Participant in both this Plan and
a defined benefit plan included in a Required Aggregation Group which
is Top Heavy, the minimum allocation shall be provided for each non-Key
Employee who is a Participant in both this Plan and such a defined
benefit plan by substituting seven and one-half percent (7 1/2%) for
three percent (3%) in Section 8.04.
If the Employer maintains one or more other qualified defined
contribution plans, and if the Plans are a part of the Required or Permissive
Aggregation Group the minimum benefit for Non-Key Employees may be provided in
any one of the Plans, or the minimum benefit requirement may be
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satisfied by aggregating the contributions made in all of the aggregated defined
contribution plans of the Employer.
8.05 Determination of Super Top Heavy. The Plan is Super Top Heavy if
as of the Determination Date the sum of the account balances and/or present
value of accrued benefits of Key Employees under this Plan and all Plans of an
Aggregation Group exceeds 90% of the sum of the account balances and/or present
value of accrued benefits of all Participants under this Plan and all Plans of
an Aggregation Group.
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ARTICLE IX - PORTABILITY OF ACCOUNT
9.01 Transfers to Another Qualified Plan. If a Participant shall
be entitled to receive benefits under this Plan, and the Participant shall be
subsequently employed by another Employer which has a plan qualified pursuant
to Internal Revenue Code section 401(a) as now in effect or hereafter amended,
the Trustee, at the direction of the Plan Administrator, may transfer the
Participant's vested interest in that Participant's Account under this Plan
directly to the trustee of the plan of the Participant's new employer if the
following are satisfied: (1) the trustee of the other plan shall be authorized
to accept the benefits under this Plan; (2) the Participant's transferred
Account shall not be forfeitable or reduce in any way the obligation of the new
Employer; and (3) the Participant's transferred Account shall be maintained in
a separate account in the other plan. The Trustee may transfer a Participant's
benefits under this Plan to another plan of the Employer, subject to the above
requirements.
9.02 Eligible Rollover Distributions. Notwithstanding any
provision of the Plan to the contrary that would otherwise limit a
distributee's election under this section, a distributee may elect, at the time
and in the manner prescribed by the plan administrator, to have any portion of
an eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover. The following definitions
are applicable under this section:
(a) Eligible Rollover Distribution. An eligible rollover
distribution is any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover
distribution does not include: any distribution that is one of a
series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the
distributee and the distributee's designated beneficiary, or for a
specified period of ten years or more; any distribution to the extent
such distribution is required under section 401(a)(9) of the Code; and
the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities).
(b) Eligible Retirement Plan. An eligible retirement
plan is an individual retirement account described in section 408(a)
of the Code, an individual retirement annuity described in section
408(b) of the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the Code,
that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the
surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
(c) Distributee. A distributee includes an employee or
former employee. In addition, the employee's or former employee's
surviving spouse and the employee's or former employee's spouse or
former spouse who is the alternate payee under a qualified domestic
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relations order, as defined in section 414(p) of the Code, are
distributees with regard to the interest of the spouse or former
spouse.
(d) Direct Rollover. A direct rollover is a payment by
the plan to the eligible retirement plan specified by the distributee.
9.03 Transfers to this Plan. With the consent of the Plan
Administrator, the Trustee of this Plan is authorized to accept the following
assets upon the terms and conditions set forth above from a trustee of another
qualified plan or from a former Participant of another qualified plan: (i)
amounts transferred directly from a trustee of another qualified plan, or (ii)
lump sum distributions received by a former Participant of another qualified
plan which are eligible for tax free rollover and are rolled into this Plan
within 60 days of receipt by such Participant. The Trustee is not authorized to
receive rollovers from conduit Individual Retirement Accounts.
The Trustee may not accept assets coming directly or indirectly from
(1) any defined benefit plan, (2) any defined contribution plan which is
subject to the funding standards of Section 412 of the Code, or (3) any other
plan which offered an annuity in any form to its Participants, unless the
acceptance of such assets does not require any additional optional form of
benefit to be provided under this Plan. Such transfers from other qualified
plans shall be segregated in a fully vested and nonforfeitable Participant
Rollover Account.
Amounts attributable to elective contributions (as defined in
Regulation 1.401(k)-1(g)(4)), including amounts treated as elective
contributions, which are transferred to this Plan from another plan in a
plan-to-plan transfer shall continue to be subject to the distribution
limitations provided in regulation 1.401(k)-1(d).
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ARTICLE X - PARTICIPATING EMPLOYERS
10.01 Adoption by Other Employers. With the consent of Brown-Forman
Corporation, any Affiliated Employer may adopt this Plan and all of its
provisions, participate in the Plan, and be known as a participating Employer,
by a properly executed document evidencing the intent and will of Brown-Forman
Corporation.
The aforementioned document may contain such specific changes and
variation in Plan terms and provisions applicable to such participant Employer
and its Employees as may be acceptable to the Plan Administrator. However, the
sole, exclusive right of termination of or of any other amendment to the Plan,
of whatever kind or extent, is reserved by Brown-Forman Corporation. The
aforementioned document becomes, as to such participant Employer and its
Employees, a part of this Plan as then amended or thereafter amended. It is not
necessary for the participating Employer to sign or execute the original or
then-amended Plan document. The coverage date for any such participating
Employer is the date stated in the aforementioned document. From and after the
effective date of coverage, the participating Employer shall assume all the
rights, obligations, and liabilities of an Employer under the Plan. The
administrative powers of and control by Brown- Forman Corporation, as provided
in the Plan, including the sole right to terminate or amend, and to appoint and
remove the Plan Administrator, are not diminished by reason of the
participation of any participating Employer in the Plan.
10.02 Withdrawal from the Plan. Any participating Employer, by
action of its governing authority, may withdraw from the Plan after giving 90
days advance notice to the Board of Directors of Brown-Forman Corporation,
provided the Board of Directors consents to such withdrawal.
10.03 Action of a Single Employer. The term "Employer" refers to
all Affiliated Employers that adopt this Plan with the consent of Brown-Forman
Corporation; however, whenever action is taken by an Affiliated Employer to
commence or terminate participation or to alter the Plan terms or provisions as
they apply to its Employees, such action applies only to said Affiliated
Employer and does not affect this Plan document with respect to any other
participating Employer.
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ARTICLE XI - PLAN ADMINISTRATOR
11.01 Appointment of Plan Administrator. The Employer will appoint one
(1) or more persons or the Employer as the Plan Administrator who shall serve
without compensation from the Trust. The Plan Administrator is a named fiduciary
for purposes of the Employee Retirement Income Security Act of 1974. The
Employer shall notify the Trustee of the name or names of the Plan Administrator
and or any changes in Plan Administrator. The Plan Administrator shall serve
until resignation or dismissal by the Employer and vacancies shall be filled in
the same manner as the original appointments. The Board of Directors of the
Employer may dismiss the Plan Administrator at any time with or without cause.
11.02 Duties of Plan Administrator. The Plan Administrator shall have
the duty, full discretionary authority and full discretionary control to manage
the operation and administration of the Plan, including, but not limited to, the
duty and authority to:
(a) Records. Keep records regarding Participants' service with
the Employer and resultant benefits under the Plan;
(b) Reports to Governmental Authorities. Make periodic reports to
the Internal Revenue Service and Department of Labor as required by
law;
(c) Notices. Provide proper notification to Participants as
required by law;
(d) Administration of Benefits. Construe and interpret the Plan,
including supplying any omissions in accordance with the intent of the
Plan, decide all questions of eligibility, determine the amount, manner
and time of payment of any benefits hereunder, authorize the payment of
benefits, and issue directions to the Trustee (and/or insurance
company, if applicable) regarding the payment of such benefits;
(e) Plan Information. Prepare and distribute, in such manner as
the Plan Administrator determines to be appropriate, information
explaining the Plan; and receive from the Employer and from
Participants information necessary for the proper administration of the
Plan;
(f) Reports to Employer. Furnish the Employer upon request, such
annual reports with respect to the administration of the Plan as are
reasonable and appropriate;
(g) Financial Reports. Receive, review and keep on file (as it
may deem convenient or proper) reports of the financial condition, and
of the receipts and disbursements, of the Trust Fund from the Trustee;
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(h) Designation of Agents. Appoint, employ or designate
individuals to assist in the administration of the Plan and any other
agents it deems advisable, including legal and actuarial counsel;
(i) Adjustments. Make equitable and practical
adjustments necessary to correct mistakes of fact or other errors;
(j) Interim Valuations. Direct an interim valuation as
set forth in the Plan; and
(k) Generally. Exercise other powers and duties the
Employer may delegate to it.
11.03 Decisions of Plan Administrator and Indemnification. Every
decision and action of the Plan Administrator shall be valid if concurred in by
a majority of the persons then in office, which concurrence may be had without
a formal meeting. The Plan Administrator shall keep a permanent record of its
meetings and actions. The Plan Administrator shall not be jointly or severally
liable to any person for any actions or omissions of actions in connection with
the duties of the Plan Administrator, except to the extent that the Plan
Administrator does not exercise the care, skill, prudence, and diligence under
the circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims. From the assets of the
Trust, the Trustee or the Employer shall indemnify the Plan Administrator
against any and all claims, losses, damages, expenses and liabilities arising
from any act of commission or omission if the act is judicially determined not
to be a breach of fiduciary responsibility by the Plan Administrator. The
indemnification shall include attorney's fees and all other costs and expenses
reasonably incurred by the Plan Administrator in defense of any action brought
against said Plan Administrator arising from such act of commission or
omission.
11.04 Instructions to Trustee. The Trustee may request instructions
in writing from the Plan Administrator on other matters and may rely and act
upon them.
11.05 Claims Procedure. The Plan Administrator shall establish a
claims procedure for the benefit of Participants and their Beneficiaries which
shall:
(a) provide adequate notice in writing to any
Participant or Beneficiary whose claim for benefits under the Plan has
been denied, setting forth the specific reasons for such denial,
written in a manner calculated to be understood by the Participants,
and
(b) afford any Participant or Beneficiary whose claim
for benefits has been denied a reasonable opportunity for a full and
fair review by the appropriate named fiduciary.
11.06 Delegating Responsibility. The Plan Administrator may
delegate in writing all or any part of its responsibilities under this document
to the Trustee and in the same manner, revoke any
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such delegation of responsibility. Any action of the Trustee in the exercise of
such delegated responsibilities shall have the same force and effect for all
purposes as if such action had been taken by the Plan Administrator. The
Trustee shall have the right, in its sole discretion, by written instru ment
delivered to the Plan Administrator, to reject and to refuse to exercise any
such delegated authority.
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ARTICLE XII - MISCELLANEOUS
12.01 Right to Terminate. This Plan shall be terminated upon the
adoption of an appropriate resolution by the Employer and the delivery of a
copy thereof to the Trustee.
12.02 Plan Voluntary on Part of Employer. It is the intention of
the Employer that this Plan shall be continued and its contributions made in
each year in accordance with the provisions of this Plan. However, this Plan is
entirely voluntary on the part of the Employer. The Employer does not guarantee
or promise to pay, or cause to be paid any of the benefits provided in this
Plan. Each Participant, retired Participant, disabled Participant, terminated
Participant, Beneficiary, or any other person who shall claim the right to any
payment or benefit under this Plan, shall be entitled only to look to the Trust
for such payment or benefit and shall not have any right, claim or demand
therefor against the Employer. The Employer specifically reserves the right, in
its sole and uncontrolled discretion to modify or suspend this Plan from time
to time in whole or in part or to terminate this Plan at any time.
12.03 Benefits Not Subject to Creditors' Claim. To the fullest
extent permitted by law, none of the benefits under the Plan are subject to the
claims of creditors of Participants, or of retired Participants, or of disabled
Participants or their Beneficiaries, and will not be subject to assignment,
alienation, attachment, garnishment or any other legal process, either
voluntarily or involuntarily. Neither a Participant, a retired Participant, a
disabled Participant nor the Participant's Beneficiaries may assign, sell,
borrow on, or otherwise encumber any of such person's beneficial interest in
the Plan and Trust Fund, nor shall any such benefits be in any manner liable
for or subject to the deeds, contracts, liabilities, engagements, or torts of
any Participant, retired Participant, disabled Participant, or Beneficiary.
The preceding sentence shall also apply to the creation, assignment,
or recognition of a right to any benefit payable with respect to a Participant
pursuant to a domestic relations order, unless such order is determined to be a
Qualified Domestic Relations Order, or any domestic relations order entered
before January 1, 1985.
12.04 Trust Agreement. The Employer has entered into a Trust
Agreement and said Trust Agreement is incorporated herein and made a part
hereof. The Trust and any income therefrom received by the Trustee shall be
received, held in trust, and disbursed by the Trustee in accordance with
written instructions from the Plan Administrator.
12.05 Assets for Exclusive Benefits to Participants. Except as
provided in Article V, it shall not be possible (within the taxable year or
thereafter) for any part of the corpus or income to be used for purposes other
than for the exclusive benefit of the Participants or their Beneficiaries at
any time prior to the satisfaction of all liabilities with respect to
Participants and their Beneficiaries under the Trust.
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12.06 Nonguarantee of Employment. The Plan shall not be deemed to
constitute a contract between the Employer and Participant or to be a
consideration or inducement for the employment of any Participant or Employee.
Nothing contained in this Plan shall be deemed to give any Participant or
Employee the right to be retained in the service of the Employer or to
interfere with the right of the Employer to discharge any Participant or
Employee at any time regardless of the effect which such discharge may have
upon that Employee or Participant as a Participant in this Plan.
12.07 Amendment. The Employer shall have the right at any time by
an instrument in writing duly executed, to modify, alter or amend this Plan in
whole or in part, provided that no such amendment shall entitle the Employer to
receive, directly or indirectly, any part of the corpus or income of the Trust,
including any forfeitures thereto. No amendment shall be made which in effect
will take away any rights accrued to any Participant up to the time of such
amendment, or eliminate an optional form of distribution.
12.08 Acts by Trustee. The Employer shall not be responsible for
any of the acts of the Trustee.
12.09 Laws of Kentucky. The provisions of this Plan shall be
construed, administered, and enforced in accordance with the laws of Kentucky,
to the extent such laws are not superseded by Federal law.
12.10 Distribution to Minor or Incompetent Beneficiary. In making
distribution to or for the benefit of any minor or incompetent Beneficiary, the
Plan Administrator shall direct the Trustee to make such distribution to a
legal or natural guardian or other person who shall have full authority and
discretion to expend such distribution for the use and benefit of such minor or
incompetent, and the receipt of such distribution by the guardian, relative or
other person shall be a complete discharge to the Plan Administrator and the
Trustee, without any responsibility on its part to see to the application
thereof.
12.11 Construction. The masculine pronoun wherever used shall
include the feminine. Whenever words are used herein in the singular, they
shall be construed as though they were used in the plural, in any case where
they would so apply.
12.12 Merger or Consolidation. In the event of a merger,
consolidation or transfer of assets and/or liabilities to any other Plan, each
Participant shall be entitled to a benefit immediately after the merger,
consolidation, or transfer (if the Plan then terminated) which is equal to or
greater than the benefit the Participant would have been entitled to receive
immediately before such transaction if the Plan had then terminated.
12.13 Discretionary Action. The Plan Administrator may exercise
full discretionary authority or discretionary control in connection with the
management of this Plan unless otherwise prohibited by validly promulgated
rules, regulations, and terms of the Internal Revenue Code or the Employee
Retirement Income and Security Act, as amended. The Plan Administrator's
discretionary
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power includes, but is not limited to, construing and interpreting this Plan,
construing disputed or doubtful terms, supplying omissions in accordance with
the intent of the Plan, deciding questions of eligibility for participation,
determining the amount, timing and payment of benefits under the terms of the
Plan, reviewing benefit eligibility determinations, and authorizing the payment
of benefits. Whenever the Administrator acts pursuant to the terms of this
Plan, such action will be taken in a uniform and nondiscriminatory manner. Any
construction of the Plan or Trust adopted by the Administrator in good faith,
and any discretionary action exercised by the Administrator in good faith,
shall be binding upon Employees, Participants, and Beneficiaries.
12.14 Lost Beneficiaries; Escheat. When a benefit is payable to a
terminated Participant, and when the Plan Administrator is unable to find the
Participant or the Beneficiary to whom the payment is due, the benefit shall be
forfeited and shall be treated as any other forfeiture under the Plan. Upon
termination of the Plan or in the event a claim is made by the Participant or
Beneficiary for the forfeited benefit, the Plan Administrator shall direct the
Trustee to establish a savings account in the name of the Participant in the
amount of the forfeiture. Said savings account shall be at a savings and loan
institution or other banking institution in the same geographic location as the
Trustee of the Trust and the establishment of said account shall be a complete
and full discharge of the Trustee and Plan Administrator for any liability to
the Participant for said benefit and the account shall be governed by
applicable state law including, but not by way of limitation, the appropriate
rules of escheat.
12.15 Action by the Employer. Any action by the Employer under this
Plan may be by the Board of Directors of Brown-Forman Corporation, or by any
person or persons duly authorized by such Board to take such action.
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ARTICLE XIII - SIGNATURES
IN WITNESS WHEREOF, the Employer has caused this Plan to be executed
by an officer duly authorized this 28th of February, 1997, effective March 1,
1997.
LENOX, INCORPORATED
By: /s/ Susan Von Hoven
-----------------------------------------
Susan Von Hoven, Assistant Vice President
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FIRST AMENDMENT
LENOX CHINA SAVINGS PLAN
FOR COLLECTIVELY BARGAINED EMPLOYEES
The Lenox China Savings Plan For Collectively Bargained Employees was
adopted by Lenox, Incorporated effective March 1, 1997.
The Plan provides in Article XII that the Plan may be amended by an
instrument in writing duly executed.
It is advisable to amend the Plan in certain respects.
IT IS THEREFORE AGREED:
1. The name of the Plan is changed to "Lenox Savings Plan for
Collectively Bargained Employees."
2. Section 1.22, Union, of Article I is amended in its entirety,
effective July 1, 1998, as follows:
1.22 Union. The following bargaining units: Glass,
Molders, Pottery, Plastics and Allied Workers International Union and
its Local Union 236A, and effective July 1, 1998, United Steelworkers
of America, AFL-CIO, Local 16031.
3. Section 5.02, Matching Contribution by Employer, of Article V
is amended in its entirety, effective July 1, 1998, as follows:
5.02 Matching Contribution by Employer.
(a) Glass, Molders, Pottery, Plastics and
Allied Workers International Union and its Local Union 236A. Each Plan
Year the Employer shall contribute to the Trust a Matching
Contribution on behalf of each Participant who is a member of the
Glass, Molders, Pottery, and Plastics and Allied Workers International
Union and its Local Union 236A receiving an Elective Contribution for
the Plan Year. The amount of the Matching Contribution shall be equal
to 25% of the Participant's Elective Contributions. However, in
applying the foregoing matching percentages, effective from March 1,
1997 to October 3, 1999, only Participant Elective Contributions up to
the first 2% of Compensation deferred for
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the Plan Year shall be considered. Effective October 4, 1999, only the
first 4% of Compensation deferred for the Plan Year shall be
considered. The Matching Contribution shall be credited to the
Employer Matching Contribution Account of eligible Participants in
accordance with Section 7.02.
(b) United Steelworkers of America, AFL-CIO,
Local 16031. The Employer does not intend to make matching
contributions at this time for Participants who are members of the
United Steelworkers of America, AFL-CIO, Local 16031. If the Plan is
amended in the future to provide for matching contributions, any
matching contribution made pursuant to this subsection (b), shall be
credited to the Employer Matching Contribution Account of eligible
Participants in accordance with Section 7.02.
4. The first paragraph of Section 5.06, Correction of Excess
Elective Contributions, of Article V is correctively amended in its entirety,
effective March 1, 1997, as follows:
5.06 Correction of Excess Elective Contributions. If the
amount of Elective Contributions allocated to the group of Highly
Compensated Participants exceeds the nondiscrimination tests specified
in Section 5.04, the Plan Administrator shall distribute such excess
amounts ("Excess Contributions") and income allocable thereto
(determined under applicable regulations). The Excess Contributions
are the amount of Elective Contributions made by the Highly
Compensated Participants which causes the Plan to fail to satisfy the
ADP test. The Plan Administrator will determine the amount of the
Excess Contributions by starting with the Highly Compensated
Participant(s) who has (have) the greatest ADP, reducing his (their)
ADP (but not below the next highest ADP), then, if necessary, reducing
the ADP of the Highly Compensated Participant(s) at the next highest
ADP, including the ADP of the Highly Compensated Participant(s) whose
ADP the Plan Administrator already has reduced (but not below the next
highest ADP), and continuing in this manner until the average ADP for
the Highly Compensated Group satisfies the ADP test. After the Plan
Administrator has determined the Excess Contribution amount, the
Trustee, as directed by the Plan Administrator, then will distribute
to each Highly Compensated Participant his respective share(s) of
Excess Contributions. The Plan Administrator will determine the
respective share(s) of Excess Contributions by starting with the
Highly Compensated Participant(s) who has (have) the highest amount of
Elective Contributions, reducing the amount of his (their) Elective
Contributions (but not below the next highest level of Elective
Contributions), then, if necessary, reducing the amount of the
Elective Contributions of the Highly Compensated Participant(s) at the
next highest level of Elective Contributions including the amount of
Elective Contributions of the Highly Compensated Participant(s) whose
Elective Contributions the Plan Administrator already has reduced (but
not below the next highest level of Elective contributions), and
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continuing in this manner until the Participant has distributed all
Excess Contributions.
5. The first paragraph of Section 5.07, Correction of Excess
Employer Matching Contributions, of Article V is correctively amended in its
entirety, effective March 1, 1997, as follows:
5.07 Correction of Excess Employer Matching
Contributions. If the amount of Matching Contributions allocated to
the group of Highly Compensated Participants exceeds the
nondiscrimination tests specified in Section 5.04, the Plan
Administrator shall distribute (or forfeit, if applicable) such excess
amounts ("Excess Aggregate Contributions") and income allocable
thereto (determined under applicable regulations). The Excess
Aggregate Contributions are the amount of aggregate contributions
allocated on behalf of the Highly Compensated Participants which
causes the Plan to fail to satisfy the ACP test. The Plan
Administrator will determine the amount of the Excess Aggregate
Contributions by starting with the Highly Compensated Participant(s)
who has (have) the greatest contribution percentage, reducing his
(their) contribution percentage (but not below the next highest
contributions percentage), then, if necessary, reducing the
contribution percentage on the Highly Compensated Participant(s) at
the next highest contribution percentage level, including the
contribution percentage of the Highly Compensated Participant(s) whose
contribution percentage the Plan Administrator already has reduced
(but not below the next highest contribution percentage), and
continuing in this manner until the ACP for the Highly Compensated
Group satisfies the ACP test. After the Plan Administrator has
determined the Excess Aggregate Contribution amount, the Trustee, as
directed by the Plan Administrator, then will distribute to each
Highly Compensated Participant his respective share of the Excess
Aggregate Contributions. The Plan Administrator will determine the
respective share(s) of Excess Aggregate Contributions by starting with
the Highly Compensated Participant(s) who has (have) the greatest
amount of aggregate contributions, reducing the amount of his (their)
aggregate contributions (but not below the next highest amount of the
aggregate contributions), then, if necessary reducing the amount of
aggregate contributions of the Highly Compensated Participant(s) at
the next highest level of aggregate contributions, including the
amount of aggregate contributions of the Highly Compensated
Participant(s) whose aggregate contributions the Plan Administrator
already has reduced (but not below the next highest level of aggregate
contributions), and continuing in this manner until the Trustee has
distributed all Excess Aggregate Contributions.
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6. Section 12.09, Laws of Kentucky, of Article XII is
correctively amended in its entirety, effective March 1, 1997, as follows:
12.09 Laws of New Jersey. The provisions of this Plan
shall be construed, administered, and enforced in accordance with the
laws of New Jersey, to the extent such laws are not superseded by
Federal law.
In all other respects, the Lenox China Savings Plan For Collectively
Bargained Employees as initially adopted and subsequently amended shall remain
in full force and effect.
IN WITNESS WHEREOF, the Employer has caused this First Amendment to
the Lenox China Savings Plan For Collectively Bargained Employees to be
executed by its duly authorized officer this 21st day of July, 1998, effective
as set forth herein.
LENOX, INCORPORATED
By:/s/ Susan Von Hoven
----------------------------------------
SUSAN VON HOVEN
Vice President
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SECOND AMENDMENT
LENOX SAVINGS PLAN
FOR COLLECTIVELY BARGAINED EMPLOYEES
The Lenox Savings Plan For Collectively Bargained Employees was
adopted by Lenox, Incorporated effective March 1, 1997.
The Plan provides in Article XII that the Plan may be amended by an
instrument in writing duly executed.
It is advisable to amend the Plan in certain respects.
IT IS THEREFORE AGREED:
1. Effective for Plan Years beginning on or after January 1,
1999, Article IV, Time and Manner of Payment, is amended to increase the
involuntary cashout limit from $3,500 to $5,000. The $3,500 dollar limit is
amended to read $5,000 wherever that $3,500 dollar limit appears in Article IV
of this Plan.
2. Effective April 1, 1999, Sections 4.03 and 4.04 of Article IV
are amended in their entirety as follows:
4.03 Manner of Payment of Retirement Benefits.
Distribution of a Participant's benefits will be made to the
Participant or Beneficiary by one of the following methods as
elected by the Participant:
(a) Single Payment. Payment may be
made in one lump-sum payment in cash in the year in which
distribution is to be made. However, payment of all or any
portion of a Participant's account balance invested in the
Brown-Forman Stock Fund may be made in one lump-sum payment
in cash or in kind, with in-kind distribution in the form of
Brown-Forman Corporation Class B shares.
(b) Lifetime Payments. Payments may be
made in cash over a period not extending beyond the life
expectancy of the Participant or the joint life expectancies
of the Participant and the Participant's Beneficiary.
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4.04 Payment Upon Death of Participant. If a
Participant dies before having received the entire vested
balance of that Participant's benefits, such remaining vested
balance, plus the proceeds of any insurance on the life of
the Participant held in the Participant's Accounts, shall be
paid to or for the benefit of the Participant's Beneficiary
in a lump sum payment in cash; provided, however, that
payment of all or any portion of the Participant's account
balance invested in the Brown-Forman Stock Fund may be made
in one lump-sum payment in cash or in kind, with in kind
distribution in the form of Brown-Forman Corporation Class B
shares.
3. Effective April 1, 1999, Section 7.09, Participant Direction
of Investment, of Article VII is amended by adding subsection (d) as follows:
(d) The Employer and the Trustee have
established the Brown-Forman Stock Fund, composed of employer
securities in the form of Brown-Forman Corporation Class B
shares, as an additional investment option under the Plan. A
Participant may direct the investment of his/her account
balance into said Stock Fund under the terms and conditions
as agreed upon between the Trustee and the Plan
Administrator.
In all other respects, the Lenox Savings Plan For Collectively
Bargained Employees as initially adopted and subsequently amended shall remain
in full force and effect.
IN WITNESS WHEREOF, the Employer has caused this Second Amendment to
the Lenox Savings Plan For Collectively Bargained Employees to be executed by
its duly authorized officer this 25th day of February, 1999, effective as set
forth herein.
LENOX, INCORPORATED
By:/s/ James D. Wilson
----------------------------------------
JAMES D. WILSON
Officer
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