COLUMBUS MCKINNON CORPORATION THRIFT 401(K) PLAN
AMENDMENT NO. 12 OF THE 1998 PLAN RESTATEMENT
Columbus McKinnon Corporation (the "Corporation") hereby amends the
Columbus McKinnon Corporation Thrift 401(K) Plan (the "Plan"), as amended and
restated in its entirety effective January 1, 1998, and as further amended by
Amendment Nos. 1through 11, as permitted under Section 14.1 of the Plan, as
follows:
1. New Section 1.13A, entitled "Electronic Administration System," is added
to the Plan effective January 1, 2006 to read as follows:
"1.13A ELECTRONIC ADMINISTRATION SYSTEM MEANS ANY TELEPHONIC OR COMPUTER
OPERATED SYSTEM INCLUDING, BUT NOT LIMITED TO, A VOICE RESPONSE SYSTEM ACCESSED
BY TELEPHONE AND A WEBSITE ACCESSED BY INTERNET, THAT PERMITS A PARTICIPANT TO
COMMUNICATE INSTRUCTIONS REGARDING THE EXERCISE OF A PARTICIPANT RIGHT OR
ELECTION UNDER THE PLAN TO THE COMMITTEE OR ITS DESIGNEE."
2. Section 2.4, entitled "Notice and Enrollment", is amended effective
January 1, 2006 to read as follows:
"2.4 AUTOMATIC ENROLLMENT OF NEW ELIGIBLE EMPLOYEES.
(A) DEEMED ELECTION TO MAKE SALARY REDUCTION CONTRIBUTIONS. AN ELIGIBLE
EMPLOYEE SHALL BE DEEMED TO ELECT TO MAKE SALARY REDUCTION CONTRIBUTIONS AT THE
RATE OF 2 PERCENT OF BASE PAY WHICH ELECTION SHALL BE EFFECTIVE FOR THE FIRST
PAY PERIOD BEGINNING ON OR AFTER THE DATE ON WHICH THE EMPLOYEE BECOMES A
PARTICIPANT UNDER SECTION 2.1(B) SUBJECT TO THE FURTHER PROVISIONS OF THIS
SECTION 2.4. A DEEMED ELECTION UNDER THIS SECTION 2.4 SHALL REMAIN IN EFFECT
FROM YEAR TO YEAR, UNTIL IT IS SUPERSEDED BY AN AFFIRMATIVE ELECTION DESCRIBED
IN SECTION 3.1.
(B) NOTICE REGARDING AFFIRMATIVE ELECTIONS. NO DEEMED ELECTION UNDER
SECTION 2.4(A) SHALL BE GIVEN EFFECT UNLESS THE EMPLOYEE IS GIVEN A NOTICE IN
WRITING OR BE E-MAIL THAT THE EMPLOYEE MAY AFFIRMATIVELY ELECT, DURING A PERIOD
OF NOT LESS THAN 10 DAYS FOLLOWING THE RECEIPT OF SUCH NOTICE (THE "INITIAL
ELECTION PERIOD"), TO MAKE ANY ELECTION PERMITTED UNDER SECTION 3.1, INCLUDING
AN ELECTION TO MAKE NO SALARY REDUCTION CONTRIBUTIONS. THE NOTICE SHALL ADVISE
THE EMPLOYEE THAT HE MAY CHANGE HIS ELECTION (WHETHER IT IS A DEEMED ELECTION OR
AN AFFIRMATIVE ELECTION) AT ANY TIME BY MAKING A NEW ELECTION, AND THAT THE NEW
ELECTION SHALL BE EFFECTIVE AS PROVIDED IN SECTION 3.1(B). THE NOTICE SHALL ALSO
DESCRIBE THE MANNER IN WHICH THE EMPLOYEE MUST MAKE AN AFFIRMATIVE ELECTION.
(C) EFFECT OF AN AFFIRMATIVE ELECTION. AN AFFIRMATIVE ELECTION MADE WITHIN
THE INITIAL ELECTION PERIOD UNDER SECTION 2.4(B) SHALL SUPERSEDE THE DEEMED
ELECTION UNDER SECTION 2.4(A) BEGINNING ON THE DATE THE DEEMED ELECTION WOULD
OTHERWISE HAVE BEEN EFFECTIVE. AN AFFIRMATIVE ELECTION MADE BY AN EMPLOYEE AFTER
THE INITIAL ELECTION PERIOD UNDER SECTION 2.4(B) SHALL BE GIVEN EFFECT AS
PROVIDED IN SECTION 3.1(B)."
3. Section 3.1, entitled "Salary Reduction Contributions", is amended
effective January 1, 2006 by changing subsections (a) and (b) thereof to read as
follows:
"(A) ELECTION OF SALARY REDUCTION CONTRIBUTIONS.
(1) IN GENERAL. AN ELIGIBLE EMPLOYEE MAY ELECT THAT HIS BASE PAY BE
REDUCED BY A SPECIFIED FULL PERCENTAGE OF AT LEAST 1 PERCENT AND NOT MORE
THAN 30 PERCENT AND TO HAVE SUCH AMOUNT CONTRIBUTED BY HIS EMPLOYER TO THE
PLAN ON HIS BEHALF. SUCH ELECTION SHALL BE EFFECTIVE COMMENCING AS SOON AS
PRACTICABLE AFTER THE ELECTION IS MADE AND SHALL CONTINUE IN EFFECT UNTIL
CHANGED OR DISCONTINUED.
(2) DEEMED ELECTION OF NEW ELIGIBLE EMPLOYEE. AN ELIGIBLE EMPLOYEE WHO
IS DEEMED TO ELECT A SALARY REDUCTION CONTRIBUTION OF 2 PERCENT UNDER
SECTION 2.4 MAY IN LIEU OF SUCH DEEMED ELECTION MAKE AN ELECTION UNDER THIS
SECTION 3.1 TO MAKE A CONTRIBUTION OF A DIFFERENT PERCENTAGE (BETWEEN 1 AND
30 PERCENT) OR TO MAKE NO CONTRIBUTION AND SUCH ELECTION SHALL BE EFFECTIVE
AS OF THE TIME THE DEEMED ELECTION WOULD HAVE BEEN EFFECTIVE.
(3) HIGHLY COMPENSATED EMPLOYEES. THE PERCENTAGE ELECTED BY ANY
ELIGIBLE EMPLOYEE WHO IS A HIGHLY COMPENSATED EMPLOYEE IS SUBJECT TO
REDUCTION BY THE COMMITTEE TO THE EXTENT IT DEEMS ADVISABLE IN ORDER TO
INSURE COMPLIANCE WITH SECTION 4.2
(B) CHANGE OR DISCONTINUANCE OF ELECTION.
(1) IN GENERAL. A PARTICIPANT MAY DISCONTINUE HIS SALARY REDUCTION OR
CHANGE HIS RATE OF SALARY REDUCTION (WITHIN THE LIMITS OF SECTION 3.1 AND
SUBJECT TO ARTICLE 4 AND ARTICLE 5) BY MAKING A NEW ELECTION UNDER SECTION
3.1(A) AT SUCH TIME AND IN SUCH MANNER AS THE COMMITTEE MAY PRESCRIBE. SUCH
DISCONTINUANCE OR CHANGE SHALL BE EFFECTIVE COMMENCING AS SOON AS
PRACTICABLE AFTER THE NEW ELECTION IS MADE, AND SHALL CONTINUE IN EFFECT
UNTIL CHANGED OR DISCONTINUED BY A SUBSEQUENT ELECTION.
(2) AUTOMATIC CONTRIBUTION INCREASE. A PARTICIPANT MAY ELECT TO HAVE
HIS RATE OF SALARY REDUCTION CONTRIBUTION AUTOMATICALLY INCREASED BY SUCH
AMOUNTS AND AT SUCH TIMES AS THE PARTICIPANT MAY DETERMINE (SUBJECT TO ANY
LIMITS IMPOSED BY THE COMMITTEE) BY MAKING AN ELECTION BY AT SUCH TIME AND
IN SUCH MANNER AS THE COMMITTEE MAY PRESCRIBE. THE ELECTION SHALL BE
EFFECTIVE COMMENCING AS SOON AS PRACTICABLE AFTER IT IS MADE, AND SHALL
CONTINUE IN EFFECT UNTIL CHANGED OR DISCONTINUED BY A SUBSEQUENT ELECTION."
4. Section 6.4, entitled "Notice to Participants," is amended effective
January 1, 2006 to read as follows:
"6.4 NOTICE TO PARTICIPANTS. THE COMMITTEE SHALL NOTIFY EACH PARTICIPANT (AND
EACH ALTERNATE PAYEE UNDER A QDRO AND EACH BENEFICIARY OF A DECEASED
PARTICIPANT) OF THE BALANCE IN SUCH PERSON'S ACCOUNT AS OF THE LAST DAY OF EACH
PLAN YEAR. THE COMMITTEE MAY IN ITS DISCRETION NOTIFY SUCH PERSONS OF THE
BALANCES IN THEIR ACCOUNTS AT MORE FREQUENT INTERVALS AND MAKE SUCH INFORMATION
AVAILABLE TO PARTICIPANTS BY MEANS OF AN ELECTRONIC ADMINISTRATION SYSTEM."
5. Article 7, entitled "Funding and Investments," is amended effective
January 1, 2006 to read as follows:
"ARTICLE 7
FUNDING AND INVESTMENTS
7.1 FUNDING METHOD AND POLICY.
(A) IN GENERAL. THE FUNDING METHOD AND POLICY OF THE PLAN IS THE PAYMENT OF
ALL CONTRIBUTIONS TO THE TRUSTEE, WITH THE CONTRIBUTIONS TO BE HELD BY THE
TRUSTEE IN ACCORDANCE WITH THE TERMS OF THE TRUST AGREEMENT, AND THE INVESTMENT
OF CONTRIBUTIONS AND OTHER AMOUNTS ALLOCATED TO THE ACCOUNT OF EACH PARTICIPANT
IN THE INVESTMENT FUND OR FUNDS DESIGNATED BY THE PARTICIPANT IN ACCORDANCE WITH
THIS ARTICLE 7.
(B) COMMITTEE TO MAKE INVESTMENT FUNDS AVAILABLE. THE COMMITTEE SHALL MAKE
AVAILABLE THREE OR MORE INVESTMENT FUNDS FOR THE INVESTMENT OF PLAN ASSETS. EACH
OF THE INVESTMENT FUNDS SHALL HAVE SUCH INVESTMENT OBJECTIVES AS THE COMMITTEE
SHALL APPROVE, IT BEING INTENDED THAT EACH PARTICIPANT SHALL BE OFFERED A NUMBER
OF INVESTMENT CHOICES, AT LEAST SOME OF WHICH HAVE MATERIALLY DIFFERENT RISK AND
RETURN CHARACTERISTICS, WHICH WILL PERMIT THE SELECTION BY THE PARTICIPANT OF AN
INVESTMENT PORTFOLIO SUITABLE TO HIS INVESTMENT OBJECTIVES. EACH OF THE
INVESTMENT FUNDS SHALL CONSIST OF ONE OR MORE INVESTMENT VEHICLES SELECTED BY
THE COMMITTEE, INCLUDING WITHOUT LIMITATION, POOLED FUNDS AND/OR MUTUAL FUNDS.
ASSETS OF ANY INVESTMENT FUND MAY BE TEMPORARILY HELD IN CASH OR INVESTED IN
SHORT-TERM FIXED INCOME OBLIGATIONS ISSUED BY GOVERNMENTS, GOVERNMENT AGENCIES,
OR CORPORATIONS, INCLUDING BANK DEPOSITS.
(C) INFORMATION PROVIDED TO PARTICIPANTS. THE COMMITTEE SHALL PROVIDE
SUFFICIENTLY DETAILED INFORMATION TO THE PARTICIPANTS WITH RESPECT TO THE
INVESTMENT FUNDS TO ENABLE PARTICIPANTS TO EXERCISE CONTROL OVER THE PLAN ASSETS
ALLOCATED TO THEIR ACCOUNTS WITHIN THE MEANING OF SECTION 404(C) OF ERISA.
(D) VOTING OF SHARES. THE TRUSTEE SHALL VOTE ALL SHARES HELD IN ALL
INVESTMENT FUNDS, INCLUDING WITHOUT LIMITATION, SHARES OF A MUTUAL FUND.
7.2 CHANGES IN INVESTMENT FUNDS.
(A) RIGHT TO CHANGE INVESTMENT FUNDS. THE COMMITTEE IS AUTHORIZED TO MAKE
AVAILABLE SUCH ADDITIONAL OR DIFFERENT INVESTMENT FUNDS AS IT MAY DEEM
APPROPRIATE. WITHOUT LIMITING THE FOREGOING, THE COMMITTEE IS AUTHORIZED AT ANY
TIME AND FROM TIME TO TIME TO ADD ADDITIONAL INVESTMENT FUNDS HAVING SUCH
INVESTMENT OBJECTIVES AS IT SHALL DETERMINE, TO MODIFY THE PROVISIONS GOVERNING
ANY EXISTING INVESTMENT FUND, OR TO ELIMINATE ONE OR MORE EXISTING INVESTMENT
FUNDS.
(B) PLAN ASSETS HELD IN DISCONTINUED FUNDS. IN THE EVENT AN EXISTING
INVESTMENT FUND IS ELIMINATED IN ACCORDANCE WITH THIS SECTION 7.2 AND A
PARTICIPANT WITH PLAN ASSETS INVESTED IN THE FUND FAILS TO GIVE TIMELY
INSTRUCTIONS TO THE COMMITTEE TO REINVEST SUCH ASSETS IN A DIFFERENT INVESTMENT
FUND, THE PARTICIPANT'S ASSETS SHALL BE REINVESTED IN THE CONTINUING INVESTMENT
FUND THAT CONTAINS INVESTMENTS MOST SIMILAR TO THOSE THAT WERE DISCONTINUED OR
IN SUCH OTHER DEFAULT INVESTMENT FUND AS THE COMMITTEE MAY SELECT IN ITS
DISCRETION.
7.3 INVESTMENT OF FUTURE CONTRIBUTIONS.
(A) RIGHT TO ELECT INVESTMENTS. AT THE TIME HE BECOMES A PARTICIPANT AND
FROM TIME TO TIME THEREAFTER, EACH PARTICIPANT MAY ELECT THE INVESTMENT FUND OR
FUNDS AND THE PORTION THEREOF IN WHICH HIS FUTURE SALARY REDUCTION
CONTRIBUTIONS, RELATED MATCHING CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS, IF
ANY, ARE TO BE INVESTED. INVESTMENT FUNDS SHALL BE ELECTED IN MULTIPLES OF 5% OF
CONTRIBUTIONS, OR IN SUCH OTHER PERCENTAGES AS THE COMMITTEE SHALL AUTHORIZE.
ALL CONTRIBUTIONS SHALL BE INVESTED IN THE SAME PORTIONS, IN THE SAME INVESTMENT
FUND OR FUNDS.
(B) MANNER OF ELECTING INVESTMENTS. INVESTMENT FUNDS SHALL BE ELECTED BY
THE PARTICIPANT FILING A WRITTEN INVESTMENT SELECTION ON A FORM PRESCRIBED BY
THE COMMITTEE, BY THE PARTICIPANT ENTERING THE APPROPRIATE INFORMATION INTO AN
ELECTRONIC ADMINISTRATION SYSTEM IN A FORM PRESCRIBED BY THE ADMINISTRATIVE
COMMITTEE, OR IN SUCH OTHER MANNER AS MAY BE AUTHORIZED BY THE ADMINISTRATIVE
COMMITTEE.
(C) WHEN ELECTIONS BECOME EFFECTIVE. AN INVESTMENT ELECTION UNDER THIS
SECTION 7.3 SHALL BECOME EFFECTIVE AS SOON AS PRACTICABLE AS DETERMINED BY THE
COMMITTEE.
(D) EFFECT OF AN ELECTION. AN INVESTMENT ELECTION UNDER THIS SECTION 7.3
SHALL APPLY TO ALL CONTRIBUTIONS CREDITED TO THE PARTICIPANT'S ACCOUNT ON AND
AFTER THE EFFECTIVE DATE OF THE ELECTION AND SHALL REMAIN EFFECTIVE UNTIL A NEW
ELECTION UNDER THIS SECTION 7.3 BECOMES EFFECTIVE.
(E) FAILURE TO ELECT INVESTMENTS. IF A PARTICIPANT FAILS TO MAKE AN
ELECTION OF INVESTMENT FUND OR FUNDS UNDER THIS SECTION 7.3, HE SHALL BE DEEMED
TO HAVE ELECTED THAT HIS FUTURE CONTRIBUTIONS BE INVESTED 100% IN THE INVESTMENT
FUND OR FUNDS DESIGNATED FROM TIME TO TIME BY THE COMMITTEE.
7.4 REINVESTMENT OF EXISTING ACCOUNT BALANCE.
(A) RIGHT TO REINVEST. A PARTICIPANT MAY AT ANY TIME ELECT THAT THE ENTIRE
BALANCE OF HIS ACCOUNT BE REINVESTED IN SUCH DIFFERENT INVESTMENT FUND OR FUNDS,
OR IN SUCH DIFFERENT PERCENTAGES PERMITTED UNDER SECTION 7.3, AS HE SHALL
DIRECT. EACH SUB-ACCOUNT SHALL BE REINVESTED IN THE SAME PORTIONS, IN THE SAME
INVESTMENT FUND OR FUNDS. ELECTIONS TO REINVEST ACCOUNT BALANCES SHALL BE MADE
IN A MANNER SIMILAR TO ELECTIONS PERMITTED UNDER SECTION 7.3 AND SHALL BECOME
EFFECTIVE AS PROVIDED UNDER SECTION 7.3(C).
(B) RETROSPECTIVE EFFECT. A REINVESTMENT ELECTION UNDER THIS SECTION 7.4
SHALL APPLY ONLY TO AMOUNTS CREDITED TO THE PARTICIPANT'S ACCOUNTS AS OF THE
APPLICABLE VALUATION DATE AND SHALL NOT APPLY TO CONTRIBUTIONS RECEIVED AFTER
THAT DATE.
(C) AUTOMATIC REBALANCING ELECTION. A PARTICIPANT MAY ELECT TO HAVE HIS
INVESTMENT PORTFOLIO UNDER THE PLAN AUTOMATICALLY REINVESTED FROM TIME TO TIME
IN SUCH INVESTMENT FUNDS AND IN SUCH PERCENTAGES AS THE PARTICIPANT MAY
DETERMINE. AN ELECTION UNDER THIS SECTION 7.4(C) SHALL BE MADE IN SUCH MANNER
AND AT SUCH TIME AS THE COMMITTEE SHALL PRESCRIBE AND SHALL REMAIN IN EFFECT
UNTIL SUPERSEDED BY AN ELECTION UNDER THIS SECTION 7.4(C) THAT CHANGES OR
CANCELS THE PREVIOUS ELECTION.
(D) AUTOMATIC REBALANCING NOTIFICATION. A PARTICIPANT MAY ELECT TO RECEIVE
A NOTICE FROM THE COMMITTEE WHENEVER THE PERCENTAGES OF THE PARTICIPANT'S
ACCOUNT INVESTED IN VARIOUS INVESTMENT FUNDS INCREASE OR DECREASE BEYOND
SPECIFIED LIMITS. SUCH NOTICES SHALL BE GIVEN WITH SUCH FREQUENCY AND IN SUCH
FORM AS THE COMMITTEE MAY PRESCRIBE FROM TIME TO TIME. AN ELECTION UNDER THIS
SECTION 7.4(D) SHALL BE MADE IN SUCH MANNER AND AT SUCH TIME AS THE COMMITTEE
SHALL PRESCRIBE AND SHALL REMAIN IN EFFECT UNTIL SUPERSEDED BY AN ELECTION UNDER
THIS SECTION 7.4(D) THAT CHANGES OR CANCELS THE PREVIOUS ELECTION.
7.5 ALLOCATION OF WITHDRAWALS, LOANS AND DISTRIBUTIONS. WHERE A PARTICIPANT'S
CONTRIBUTIONS ARE INVESTED IN MORE THAN ONE INVESTMENT FUND, THE AMOUNT OF ANY
WITHDRAWAL, LOAN, OR DISTRIBUTION SHALL BE CHARGED AGAINST EACH SUCH INVESTMENT
FUND IN PROPORTION TO THE PARTICIPANT'S ACCOUNT BALANCE IN EACH, UNLESS THE
COMMITTEE SHALL ESTABLISH PROCEDURES PERMITTING PARTICIPANTS TO DESIGNATE THE
SOURCE OF A LOAN, WITHDRAWAL OR DISTRIBUTION AND THE PARTICIPANT SHALL HAVE MADE
A DESIGNATION.
7.6 MERGED PLAN INVESTMENTS. THE COMMITTEE MAY DIRECT THE TRUSTEE TO RETAIN ANY
INVESTMENT MADE UNDER A TAX-QUALIFIED PLAN THAT IS MERGED INTO THE PLAN FOR SUCH
LENGTH OF TIME AS THE COMMITTEE MAY DEEM APPROPRIATE IN ORDER TO FACILITATE THE
MERGER OF SUCH PLAN INTO THE PLAN, FACILITATE THE ADMINISTRATION OF THE PLAN,
AVOID WITHDRAWAL PENALTIES, OR TO ACCOMPLISH ANY SIMILAR GOAL. THE INVESTMENTS
OF MERGED PLANS THAT ARE RETAINED UNDER THE PLAN MAY INCLUDE, BUT ARE NOT
LIMITED TO, GUARANTEED INVESTMENT CONTRACTS AND INVESTMENTS UNDER GROUP ANNUITY
CONTRACTS ISSUED BY INSURANCE COMPANIES. THE EARNINGS AND LOSSES INCURRED WITH
RESPECT TO SUCH INVESTMENTS SHALL, TO THE EXTENT PRACTICABLE, BE ALLOCATED TO
PARTICIPANTS WHO WERE PARTICIPANTS IN THE RELEVANT MERGED PLANS, IN ACCORDANCE
WITH THEIR RESPECTIVE ACCOUNT BALANCES AND INVESTMENT SELECTIONS UNDER THE
MERGED PLANS."
6. New Section 9.7, entitled "Forfeiture of Uncashed Checks," is added to
the Plan effective January 1, 2006 and shall read as follows:
`9.7 FORFEITURE OF UNCASHED CHECKS. IN THE EVENT THAT A DISTRIBUTION PAYMENT IS
MADE BY THE PLAN TO A PARTICIPANT OR BENEFICIARY BY MEANS OF A CHECK, AND THE
CHECK IS NOT CASHED WITHIN ONE YEAR FOLLOWING THE DATE OF ISSUE, AND THE
COMMITTEE DETERMINES THAT THE CHECK IS UNLIKELY TO BE CASHED IN THE FUTURE, THEN
THE COMMITTEE MAY STOP PAYMENT ON THE CHECK, IN WHICH CASE THE AMOUNT OF THE
CHECK SHALL BE FORFEITED TO THE PLAN AND USED TO PAY PLAN EXPENSES. IN SUCH
CASE, THE AMOUNT OF THE CHECK, WITHOUT INTEREST, SHALL BE PAID TO THE
PARTICIPANT OR BENEFICIARY (OR OTHER PERSON ENTITLED TO THE PAYMENT) IF AT ANY
LATER TIME A CLAIM IS MADE BY THE PARTICIPANT OR BENEFICIARY (OR OTHER PERSON
ENTITLED TO THE PAYMENT). NOTHING IN THIS SECTION 9.7 SHALL DIMINISH THE DUTY OF
THE COMMITTEE TO SEARCH FOR LOST PARTICIPANTS AND BENEFICIARIES AND TO TAKE SUCH
ACTIONS AS MAY BE REASONABLE UNDER THE CIRCUMSTANCES TO ENSURE THAT DISTRIBUTION
CHECKS ARE CASHED."
7. Section 10.3, entitled "Hardship Withdrawals," is amended effective
January 1, 2005 by changing Section 10.3(d)(2) to read as follows:
"(2) DEEMED IMMEDIATE AND HEAVY FINANCIAL NEED. A WITHDRAWAL SHALL BE
DEEMED TO BE MADE ON ACCOUNT OF AN IMMEDIATE AND HEAVY FINANCIAL NEED OF
THE PARTICIPANT IF THE WITHDRAWAL IS ON ACCOUNT OF ONE OF THE FOLLOWING:
(A) EXPENSES FOR (OR NECESSARY TO OBTAIN) MEDICAL CARE THAT WOULD
BE DEDUCTIBLE UNDER CODE SECTION 213(D) (DETERMINED WITHOUT REGARD TO
WHETHER THE EXPENSES EXCEED 7.5% OF ADJUSTED GROSS INCOME);
(B) COSTS DIRECTLY RELATED TO THE PURCHASE OF A PRINCIPAL
RESIDENCE FOR THE PARTICIPANT (EXCLUDING MORTGAGE PAYMENTS);
(C) PAYMENT OF TUITION, RELATED EDUCATIONAL FEES, AND ROOM AND
BOARD EXPENSES, FOR UP TO THE NEXT 12 MONTHS OF POST-SECONDARY
EDUCATION FOR THE PARTICIPANT, OR THE PARTICIPANT'S SPOUSE, CHILDREN,
OR DEPENDENTS (AS DEFINED IN CODE SECTION 152, AND, FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY 1, 2005, WITHOUT REGARD TO CODE SECTION
152(B)(1), (B)(2) AND (D)(1)(B)); OR
(D) PAYMENTS NECESSARY TO PREVENT THE EVICTION OF THE PARTICIPANT
FROM THE PARTICIPANT'S PRINCIPAL RESIDENCE OR FORECLOSURE ON THE
MORTGAGE ON THAT RESIDENCE;
(E) PAYMENT FOR BURIAL OR FUNERAL EXPENSES FOR THE PARTICIPANT'S
PARENT, SPOUSE, CHILD OR DEPENDENT; OR
(F) PAYMENT OF EXPENSES FOR THE REPAIR OF DAMAGE TO THE
PARTICIPANT'S PRINCIPAL RESIDENCE PROVIDED SUCH EXPENSES WOULD QUALIFY
FOR A CASUALTY DEDUCTION UNDER CODE SECTION 165 (DETERMINED WITHOUT
REGARD TO WHETHER THE LOSS EXCEEDS 10% OF THE PARTICIPANT'S ADJUSTED
GROSS INCOME."
8. Section 10.5, entitled "Loan Documents and Policy," is amended effective
January 1, 2006 to read as follows:
"10.5 LOAN DOCUMENTS AND POLICY.
(A) LOAN DOCUMENTS. THE COMMITTEE SHALL PREPARE THE FOLLOWING LOAN
DOCUMENTS, WHICH SHALL BE EXECUTED BY THE PARTICIPANT AND DELIVERED TO THE
COMMITTEE PRIOR TO THE DISBURSEMENT OF ANY LOAN PROCEEDS: [1] A PROMISSORY NOTE
PAYABLE TO THE TRUSTEE AND CONTAINING SUCH TERMS AND CONDITIONS AS THE COMMITTEE
SHALL DETERMINE; [2] A SECURITY AGREEMENT GRANTING TO THE TRUSTEE A LIEN ON
ONE-HALF THE VALUE OF THE PARTICIPANT'S ACCOUNT; AND [3] AN AGREEMENT
AUTHORIZING THE EMPLOYER TO DEDUCT INSTALLMENTS OF PRINCIPAL AND INTEREST FROM
HIS WAGES DURING THE PERIOD THAT THE LOAN REMAINS OUTSTANDING. ALTERNATIVELY,
THE COMMITTEE MAY ESTABLISH PROCEDURES WHERE APPLICATIONS FOR LOANS ARE MADE VIA
AN ELECTRONIC ADMINISTRATION SYSTEM AND THE ONLY DOCUMENTATION OF THE LOAN,
INCLUDING THE PARTICIPANT'S AGREEMENT TO THE TERMS AND CONDITIONS OF THE LOAN,
ARE [1] RESPONSES GIVEN BY THE PARTICIPANT VIA THE ELECTRONIC ADMINISTRATION
SYSTEM AND [2] THE NEGOTIATION OF A DRAFT ISSUED TO THE PARTICIPANT IN THE
AMOUNT OF THE LOAN PROCEEDS, AND/OR [3] SUCH ADDITIONAL DOCUMENTATION AS THE
COMMITTEE DEEMS APPROPRIATE.
(B) WRITTEN LOAN POLICY. THE COMMITTEE IS AUTHORIZED TO IMPOSE TERMS AND
CONDITIONS ON LOANS THAT ARE IN ADDITION TO AND/OR DIFFERENT FROM THE TERMS AND
CONDITIONS SET FORTH IN SECTION 10.4, AND TO CHANGE SUCH TERMS AND CONDITIONS
FROM TIME TO TIME, AS IT DEEMS APPROPRIATE. SUCH ADDITIONAL AND/OR DIFFERENT
TERMS AND CONDITIONS SHALL BE SET FORTH IN A WRITTEN LOAN POLICY WHICH MAY
CONSIST IN WHOLE OR PART IN THE LANGUAGE INCORPORATED IN ADMINISTRATIVE FORMS
AND/OR THE PROGRAMMING IN AN ELECTRONIC ADMINISTRATION SYSTEM."
9. Section 11.3, entitled "Authority of Committee," is amended effective
January 1, 2006 by adding new subsection (e) thereto, to read as follows:
"(E) PLAN ADMINISTRATION PROCEDURES. BY WAY OF ADDITIONAL EXPLANATION, AND
WITHOUT MEANING TO IMPLY ANY LIMITATION ON THE AUTHORITY GRANTED TO THE
COMMITTEE UNDER SECTION 11.3(A), THE COMMITTEE MAY DETERMINE THE METHODS BY
WHICH COMMITTEE DECISIONS, PARTICIPANT ELECTIONS AND OTHER MATTERS ARE
COMMUNICATED UNDER THE PLAN. TO THE EXTENT PERMITTED BY APPLICABLE LAW AND
REGULATIONS, AND NOTWITHSTANDING REFERENCES ELSEWHERE IN THE PLAN DOCUMENT TO
"FORMS" AND "WRITING," SUCH ITEMS MAY BE COMMUNICATED BY MEANS OF ELECTRONIC
ADMINISTRATION SYSTEMS IN ADDITION TO OR IN LIEU OF WRITTEN COMMUNICATIONS."
WITNESS WHEREOF, this instrument of amendment has been executed by a duly
authorized officer of the Corporation this 27th day of December, 2005.
COLUMBUS McKINNON CORPORATION
By Timothy R. Harvey
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Title: General Counsel and Secretary
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