COLUMBUS MCKINNON CORPORATION
MONTHLY RETIREMENT BENEFIT PLAN
AMENDMENT NO. 2 OF THE 1998 PLAN RESTATEMENT
IRS TECHNICAL AMENDMENT
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 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.
(1) 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 the mortality table described in Section 1.4(b) and
an interest rate equal to the greater of the rate specified in
Section 1.4(c) or 5 percent.
(2) In the case of the adjustment of a benefit that is subject
to Code Section 417(e)(3), the adjustment shall be made using
the mortality table described in Section 1.4(b) and an
interest rate equal to the greater of the rate specified in
Section 1.4(b) or Section 1.4(c)."
2. Section 11.2, entitled "Maximum Annual Benefit" is amended effective
April 1, 1998 by changing Section 11.2(b)(2) to read as follows:
"(2) BENEFITS COMMENCING BEFORE SOCIAL SECURITY RETIREMENT
AGE. If the Annual Benefit begins before the Participant's
Social Security Retirement Age, then the Dollar Limit shall be
reduced as provided in this Section 11.2(b)(2) or in such
other manner as the Secretary of the Treasury shall prescribe
as consistent with the reduction for old-age insurance
COLUMBUS McKINNON CORPORATION MONTHLY RETIREMENT BENEFIT PLAN
Page 2 of Amendment No. 2 of 1998 Plan Restatement
benefits commencing before the Social Security Retirement Age
under the Social Security Act:
(A) If the benefit begins after the
Participant has attained age 62, the Dollar Limit
shall be reduced 5/9 of 1% for each month by which
the Annuity Starting Date precedes the Participant's
Social Security retirement age for the first 36
months and shall be reduced 5/12 of 1% for each
additional month by which the Annuity Starting Date
precedes his Social Security retirement age.
(B) If the benefit begins before the
Participant has attained age 62, the Dollar Limit
shall be reduced as provided in Section 11.2(b)(2)(A)
in order to determine the Dollar Limit in effect at
age 62. The Dollar Limit in effect on the Annuity
Starting Date shall be the Actuarial Equivalent of
the Dollar Limit in effect at age 62. For the purpose
of determining Actuarial Equivalence, the interest
rate shall be the greater of 5 percent or the rate
set forth in Section 1.4(c) and the mortality table
shall be the table described in Section 1.4(b)
provided, however, that the mortality decrement shall
be ignored to the extent that a forfeiture does not
occur at death."
3. Section 11.2, entitled "Maximum Annual Benefit" is amended effective
April 1, 1998 by changing Section 11.2(b)(3) to read as follows:
"(3) BENEFITS COMMENCING AFTER SOCIAL SECURITY RETIREMENT AGE.
If the Annual Benefit begins after the Participant's Social
Security Retirement Age, then the Dollar Limit shall be
increased so that the Dollar Limit in effect on the Annuity
Starting Date shall be the Actuarial Equivalent of the Dollar
Limit as of the Participant's Social Security Retirement Age.
For the purpose of determining Actuarial Equivalence, the
interest rate shall be the lesser of 5 percent or the rate set
forth in Section 1.4(c) and the mortality table shall be the
table described in Section 1.4(b) provided, however, that the
mortality decrement shall be ignored to the extent that a
forfeiture does not occur at death."
IN WITNESS WHEREOF, this instrument of amendment has been
executed by a duly authorized officer of the Corporation this 26th day of May,
1999, 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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