COLUMBUS McKINNON CORPORATION
MONTHLY RETIREMENT BENEFIT PLAN
Amendment No. 1 of the 1998 Plan Restatement
Columbus McKinnon Corporation (the "Company") hereby amends the
Columbus McKinnon Corporation Monthly Retirement Benefit Plan (the "Plan"), as
amended and restated in its entirety effective April 1, 1998, as permitted under
Section 10.1 of the Plan, as follows:
1. Section 1.22, entitled "Highly Compensated Employee", is amended
effective April 1, 1998 to read as follows:
1.22 "Highly Compensated Employee" includes highly compensated active
employees and highly compensated former employees.
(a) A highly compensated active employee means any Employee who:
(1) was a 5-percent owner (as defined in Section 416(i)(1)
of the Code) of the Corporation or an Affiliate at any time
during the current or preceding year, or
(2) for the preceding year--
(A) had compensation from the Corporation and all
Affiliates in excess of $80,000 (as adjusted by the
Secretary of the Treasury pursuant to Section 415(d) of the
Code, except that the base period shall be the calendar
quarter ending September 30, 1996), and
(B) if the Corporation elects the application of
this clause 1.22(a)(2)(B) for the preceding year, was in
the top-paid group of Employees for such preceding year.
For this purpose, an Employee is in the top-paid group of
Employees for any year if the Employee is in a group
consisting of the top 20 percent of the Employees when
ranked on the basis of compensation paid during such year.
(b) A former Employee shall be highly compensated employee if:
(1) the Employee was a Highly Compensated Employee when the
Employee separated from service, or
(2) the Employee was a Highly Compensated Employee at any
time after attaining age 55.
COLUMBUS McKINNON CORPORATION MONTHLY RETIREMENT BENEFIT PLAN
Page 2 of Amendment No. 1 of 1998 Plan Restatement
(c) Meaning of "Compensation". For the purpose of this Section
1.22, the term "compensation" means compensation within the meaning of
Section 415(c)(3) of the Code. For Plan Years beginning before January
1, 1998, the determination of "compensation" shall be made without
regard to Sections 125, 402(e)(3), and 402(h)(1)(B) of the Code and, in
the case of employer contributions made pursuant to a salary reduction
agreement, without regard to Section 403(b) of the Code.
(d) Application of Code and Regulations. The determination of
who is a Highly Compensated Employee, including the determinations of
the number and identity of Employees in the top-paid group, shall be
made in accordance with Section 414(q) of the Code and the regulations
thereunder.
2. Section 4.4, entitled "55/15 Early Retirement Benefit", is amended
effective April 1, 1998 to correct a typographical error by changing the
reference to "62/25 early retirement benefit" to "55/15 early retirement
benefit."
3. Section 11.1, entitled "Definitions and Rules of Interpretation", is
amended effective April 1, 1998 by changing subsection (b) thereof to read as
follows:
(b) "Annual Benefit" means the benefit payable annually in the
form of a straight life annuity under the terms of the Plan (aggregated
with other defined benefit plans as described in (j) below) exclusive
of any benefit not required to be considered for purposes of applying
the limitations of Code Section 415 to the Plan. If the Annual Benefit
is payable in any form other than a straight life annuity or a
qualified joint and survivor annuity within the meaning of Code Section
417, it shall be adjusted to an Actuarial Equivalent benefit in the
form of a straight life annuity. In the case of the adjustment of a
benefit that is not subject to Code Section 417(e)(3), the adjustment
shall be made using an interest rate equal to the greater of the rate
specified in the Plan or 5 percent.
4. Table 3 of Appendix A is amended effective April 1, 1998 to read as
follows:
APPENDIX A
TABLE 3
TABLE OF ACTUARIAL EQUIVALENT FACTORS TO BE USED IN DETERMINING THE AMOUNT OF
LIFE ANNUITY COMMENCING ON AN EARLY RETIREMENT DATE
COLUMBUS McKINNON CORPORATION MONTHLY RETIREMENT BENEFIT PLAN
Page 3 of Amendment No. 1 of 1998 Plan Restatement
Age at Early Actuarial
Retirement Date Equivalent Factor
--------------- -----------------
65 1.000
64 .906
63 .824
62 .750
61 .685
60 .626
59 .574
58 .527
57 .484
56 .446
55 .411
Factors will be determined by interpolation based on the attained age to the
completed month.
5. New Schedule 2, entitled "Pension Plan for Non-Union Hourly Employees
of Columbus McKinnon Corporation, Merger into the MRB Plan, Treatment of Former
Participants" is added to the Plan effective December 31, 1998 in the form
attached to this Amendment No. 1 and incorporated herein by this reference.
6. New Schedule 5, entitled "Duff-Norton Company, Inc. Pension Plan for
Salaried Employees of Yale Hoists, Merger into the MRB Plan, Treatment of Former
Participants" is added to the Plan effective December 31, 1998 in the form
attached to this Amendment No. 1 and incorporated herein by this reference.
7. New Schedule 6, entitled "Duff-Norton Company, Inc. Retirement Plan
for Employees of American Lifts Division, Merger into the MRB Plan, Treatment of
Former Participants" is added to the Plan effective February 28, 1999 in the
form attached to this Amendment No. 1 and incorporated herein by this reference.
COLUMBUS McKINNON CORPORATION MONTHLY RETIREMENT BENEFIT PLAN
Page 4 of Amendment No. 1 of 1998 Plan Restatement
8. Schedule 3, entitled "Retirement Plan for Salaried Employees of the
Duff-Norton Companies, Merger into the MRB Plan, Treatment of Former
Participants" is amended and restated effective June 30, 1998 in the form
attached to this Amendment No. 1 and incorporated herein by this reference.
9. Schedule 4, entitled "Duff-Norton Company, Inc. Retirement Plan for
Wadesboro Hourly Employees, Merger into the MRB Plan, Treatment of Former
Participants" is amended and restated effective June 30, 1998 in the form
attached to this Amendment No. 1 and incorporated herein by this reference.
IN WITNESS WHEREOF, this instrument of amendment has been
executed by a duly authorized officer of the Corporation this 10th day of
December, 1998, to be effective as of the dates recited herein.
COLUMBUS McKINNON CORPORATION
By: /s/ Robert L. Montgomery, Jr.
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Title: Executive Vice President
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