First Amendment to the Environmental Power Corporation Retirement Plan

Summary

This amendment updates the Environmental Power Corporation Retirement Plan, originally effective January 1, 1998. The changes clarify the definition of compensation, update how top-heavy plan status is determined, and revise definitions related to plan aggregation and valuation dates. The amendment is intended to help the plan meet IRS qualification requirements. All other terms of the original plan remain unchanged. The amendment was executed by the company's Chief Financial Officer on July 11, 2002.

EX-10.107 10 dex10107.txt FIRST AMENDMENT EXHIBIT 10.107 FIRST AMENDMENT TO THE ENVIRONMENTAL POWER CORPORATION RETIREMENT PLAN _________________________ WHEREAS, Environmental Power Corporation (the "Employer") heretofore adopted the Environmental Power Corporation Retirement Plan (the "Plan"), effective as of January 1, 1998; WHEREAS, Section 13.2 of the Plan reserves to the Employer the right to amend the Plan; WHEREAS, the Employer desires to amend the Plan to secure a favorable determination letter; and NOW, THEREFORE, the Plan is hereby amended as follows: 1. Subsection (a) of Section 2.16, Compensation, shall be amended by adding the following at the conclusion thereof: "Compensation also includes elective amounts that are not includible in the gross income of the Participant under Section 125, 402(e)(3), 402(h), 403(b) or, effective January 1, 2001, 132(f)(4) of the Code." 2. Subsection (a) of Section 16.1, Definitions, shall be amended by adding the following paragraph (iv): "(iv) For the purpose of determining whether a plan is a top-heavy plan under this subsection (a), the value of account balances and the present value of accrued benefits shall be determined as of the valuation date." 3. Subsection (d) of Section 16.1, Definitions, shall be amended in its entirety to read as follows: "(d) (i) "Aggregation Group" means: (A) Each qualified defined benefit and defined contribution retirement plan of the Affiliated Employers in which a key employee is or was a participant within the period of five Plan Years ending on the determination date; (B) Each other Plan of a required aggregation group, which is a qualified defined benefit or defined contribution retirement plan of the Affiliated Employers that enables any plan described in subparagraph (A) to meet the qualification requirements of Sections 410(b) or 401(a)(4) of the Code; and (C) Each other plan of a permissive aggregation group, which is a qualified defined benefit or defined contribution retirement plan of the Affiliated Employers elected by the Administrator that causes the aggregation group to satisfy the qualification requirements of Sections 410(b) and 401(a)(4) of the Code. (ii) For purposes of this subsection, a qualified retirement plan shall include frozen plans and any terminated plans that were maintained within the period of five Plan Years ending on the determination date." 4. Section 16.1, Definitions, shall be further amended by adding the following subsection (f): "(f) "Valuation Date" means the date that coincides with the determination date." 5. Except as hereinabove amended, the provisions of the Plan shall continue in full force and effect. IN WITNESS WHEREOF, the Employer has caused this instrument to be duly executed by its authorized officer this 11 day of July, 2002. ENVIRONMENTAL POWER CORPORATION By: /s/ R. Jeffrey Macartney --------------------------- Title: Chief Financial Officer ATTEST: ___________________ -2-