Range Resources Corporation 401(k) Plan Adoption Agreement (Scudder Trust Company Prototype Defined Contribution Plan)
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Summary
This agreement establishes the Range Resources Corporation 401(k) Plan, a defined contribution retirement plan for employees, using the Scudder Trust Company prototype. It outlines eligibility, contribution types (including employee pre-tax, employer matching, and profit sharing), vesting schedules, withdrawal options, and compliance with federal laws. The plan is designed to help employees save for retirement, with both employee and employer contributions, and specifies rules for participation, service requirements, and benefit payments.
EX-10.14 6 d08736exv10w14.txt RANGE RESOURCES CORPORATION 401(K) PLAN EXHIBIT 10.14 PRINTED -- 8/26/03 SCUDDER INVESTMENTS ================================================================================ SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN FULL-FLEX PROFIT SHARING PLAN (With 401(k) Option) Non-Standardized (003) ADOPTION AGREEMENT ================================================================================ AMENDED FOR THE URUGUAY ROUND AGREEMENTS ACT ("GATT"), THE UNIFORM SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT ("USERRA"), THE SMALL BUSINESS JOB PROTECTION ACT OF 1996 ("SBJPA"), THE TAXPAYER RELIEF ACT OF 1997 ("TRA '97"), THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998 AND THE COMMUNITY RENEWAL TAX RELIEF ACT OF 2000 (COLLECTIVELY REFERRED TO AS "GUST"). NATIONAL OFFICE LETTER DATE: __________ SERIAL NUMBER: __________ SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN TABLE OF CONTENTS
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ii SCUDDER INVESTMENTS SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN FULL-FLEX PROFIT SHARING PLAN (With 401(k) Option) Non-Standardized (003) ADOPTION AGREEMENT A. PREAMBLE A.1. BY THIS AGREEMENT, THE LEAD EMPLOYER HEREBY ... [CHECK ONE]:
B. LEAD AND PARTICIPATING EMPLOYER INFORMATION
C. PLAN INFORMATION
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2 D. ELIGIBILITY AND SERVICE REQUIREMENTS
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E. PLAN COMPENSATION [NOTE: PLAN COMPENSATION WILL BE USED FOR NONDISCRIMINATION TESTING UNLESS THE PLAN ADMINISTRATOR EXPRESSLY DIRECTS THAT A DIFFERENT DEFINITION OF COMPENSATION BE USED FOR SUCH TESTING FOR A PARTICULAR PLAN YEAR. TESTING COMPENSATION MAY BE USED TO DETERMINE AN EMPLOYER QUALIFIED PROFIT SHARING CONTRIBUTION IF SO ELECTED IN K.5. NOTWITHSTANDING THE ELECTIONS IN THIS ITEM E.]
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F. EMPLOYEE PRE-TAX COMPONENT
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G. EMPLOYEE AFTER-TAX COMPONENT
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H. EMPLOYER SAFE-HARBOR COMPONENT
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18 I. EMPLOYER REGULAR MATCHING COMPONENT
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K. EMPLOYER QUALIFIED MATCHING AND PROFIT SHARING COMPONENT [NOTE: CONTRIBUTIONS ELECTED UNDER THIS SECTION K. ARE IN ADDITION TO ANY EMPLOYER SAFE-HARBOR MATCHING, REGULAR MATCHING, SAFE-HARBOR PROFIT SHARING OR REGULAR PROFIT SHARING CONTRIBUTIONS.]
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L. EMPLOYEE ROLLOVER COMPONENT
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M. RETIREMENT, DISABILITY AND HARDSHIP
42 N. SPECIAL VESTING RULES [NOTE: DO NOT COMPLETE IF THE PLAN PROVIDES FOR FULL AND IMMEDIATE VESTING OF ALL CONTRIBUTION ACCOUNTS. SKIP TO SECTION O.]
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44 O. EMPLOYER SECURITIES
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P. PAYMENT OF BENEFITS
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Q. TOP-HEAVY PROVISIONS
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R. CODE SECTION 415 COORDINATION
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S. SPECIAL TESTING RULES [NOTE: IF THIS ADOPTION AGREEMENT AMENDS THE PLAN TO RETROACTIVELY COMPLY WITH THE SMALL BUSINESS JOB PROTECTION ACT OF 1996 AND THE TAXPAYER RELIEF ACT OF 1997, COMPLETE AND ATTACH THE "SPECIAL TESTING RULES ADDENDUM".]
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[The remaining portion of the page is intentionally blank] 56 X. RELIANCE ON IRS OPINION LETTER
Y. LEAD EMPLOYER SIGNATURE IN WITNESS WHEREOF, the Lead Employer has caused this Adoption Agreement to be adopted effective as of the Original Effective Date or Amendment Effective Date (in Section A. Preamble). YOU SHOULD CONSULT WITH AN ATTORNEY OR OTHER INDEPENDENT QUALIFIED ADVISOR AS TO THE LEGAL AND TAX EFFECT OF ADOPTING THE PLAN. Date signed: _______________________ Lead Employer: Range Resources Corporation By: ______________________________________ Name [print]: ________________________ Its [title]: ________________________ 57 Z. TRUSTEE OR CUSTODIAN SIGNATURE FOR TRUST AGREEMENT The Trustee(s) hereby accepts appointment as such in accordance with the Prototype Trust Agreement. FOR INDIVIDUAL TRUSTEE(S) SERVING PURSUANT TO THE "TRUST AGREEMENT FOR INDIVIDUAL TRUSTEES" (ATTACH ADDITIONAL SHEETS IF NECESSARY) Date signed:_______________________________ Effective:_________________________________ Trustee (1):______ ___________________________________________ Signature Trustee (2):______ ___________________________________________ Signature Trustee (3):______ ___________________________________________ Signature Trustee (4):______ ___________________________________________ Signature FOR A FINANCIAL ORGANIZATION SERVING PURSUANT TO THE "TRUST AGREEMENT FOR DIRECTED TRUSTEE" OR THE "TRUST AGREEMENT WITH DISCRETIONARY TRUSTEE OPTION" Date signed:_______________________________ Effective:_________________________________ Trustee: Scudder Trust Company By: _______________________________________ Name [print]:__________________________ Its [title]:___________________________ [additional signature is optional] And: ______________________________________ Name [print]:_________________________ Its [title]:__________________________ OR FOR CUSTODIAL AGREEMENT The Custodian hereby accepts its appointment as such in accordance with the Custodial Agreement. Date signed:________________________ Custodian: _________________________ Effective:__________________________ By: ________________________________ Name [print]:___________________ Its [title]:____________________ 58 SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN PREDECESSOR EMPLOYER ADDENDUM The following Predecessor Employers are covered by Section D.13. of the Adoption Agreement (in addition to those listed in Section D.13. of the Adoption Agreement): Employment with the following Predecessor Employer(s) which did not maintain the Plan ... [complete as appropriate]: [NOTE: CODE SECTION 414(a) REQUIRES THAT SERVICE WITH A PREDECESSOR EMPLOYER BE TAKEN INTO ACCOUNT IF A PLAN OF THE PREDECESSOR EMPLOYER IS MAINTAINED BY A CONTROLLED GROUP MEMBER. THE SERVICE CREDIT IS IN ADDITION TO THAT REQUIRED UNDER CODE SECTION 414(a).] Name:_____. Employer Identification Number:. .... counts as Service for ... [check each that applies]: 1. [ ] eligibility purposes, with Service with the Predecessor Employer calculated based on ... [check one]: a. [ ] Hours of Service from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. b. [ ] elapsed time from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. 2. [ ] vesting purposes, with Service with the Predecessor Employer calculated based on ... [check one]: a. [ ] Hours of Service from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. b. [ ] elapsed time from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. However, prior service credit for vesting purposes will be limited to ________ years. [complete if desired.] 3. [ ] determining whether the Participant is entitled to share in the Employer Regular Matching or Regular Profit Sharing Contribution. For such Participant, the compensation paid by the Predecessor Employer ... [check one]: a. [ ] is not b. [ ] is ... counted as Plan Compensation for purposes of determining or allocating the Employer Regular Matching or Regular Profit Sharing Contribution for the first year of participation under this Plan. Name:______. Employer Identification Number:______. .... counts as Service for ... [check each that applies]: 1. [ ] eligibility purposes, with Service with the Predecessor Employer calculated based on ... [check one]: a. [ ] Hours of Service from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. b. [ ] elapsed time from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. 2. [ ] vesting purposes, with Service with the Predecessor Employer calculated based on ... [check one]: a. [ ] Hours of Service from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. b. [ ] elapsed time from ... [check one]: 1. [ ] last date of hire. 2. [ ] original date of hire. 3. [ ] other [specify]:_______. However, prior service credit for vesting purposes will be limited to__________years. [complete if desired.] 3. [ ] determining whether the Participant is entitled to share in the Employer Regular Matching or Regular Profit Sharing Contribution. For such Participant, the compensation paid by the Predecessor Employer ... [check one]: a. [ ] is not b. [ ] is ... counted as Plan Compensation for purposes of determining or allocating the Employer Regular Matching or Regular Profit Sharing Contribution for the first year of participation under this Plan. ATTACH ADDITIONAL SHEETS IF NECESSARY. SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN PARTICIPATING EMPLOYER ADDENDUM The following Controlled Group Members are Participating Employers in the Plan (in addition to those listed in Section B.3. of the Adoption Agreement): Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. Participating Employer: Name: _____. EIN:____. ATTACH ADDITIONAL SHEETS IF NECESSARY. SCUDDER INVESTMENTS SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN SUPPLEMENTAL INFORMATION - LEAD EMPLOYER LEAD EMPLOYER INFORMATION
SCUDDER INVESTMENTS SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN SUPPLEMENTAL INFORMATION - FUNDING VEHICLE FUNDING INFORMATION [INSTRUCTION: COMPLETE THE FOLLOWING IF AN INDIVIDUAL OR A COMMITTEE OF INDIVIDUALS IS A "TRUSTEE" OF ALL OR ANY PORTION OF THE PLAN ASSETS.]
[INSTRUCTION: COMPLETE THE FOLLOWING IF A FINANCIAL ORGANIZATION IS A "TRUSTEE" OF ALL OR ANY PORTION OF THE PLAN ASSETS.]
[INSTRUCTION: COMPLETE THE FOLLOWING IF A FINANCIAL ORGANIZATION IS A "CUSTODIAN" OF ALL OR ANY PORTION OF THE PLAN ASSETS.]
[INSTRUCTION: COMPLETE THE FOLLOWING IF THE PLAN IS FUNDED IN WHOLE OR IN PART THROUGH A GROUP ANNUITY CONTRACT WITH AN INSURANCE COMPANY (OTHER THAN A GROUP ANNUITY CONTRACT HELD AS AN ASSET OF A TRUST).]
SCUDDER INVESTMENTS SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN SUPPLEMENTAL INFORMATION - PLAN FEATURES PLAN FEATURE INFORMATION
SCUDDER TRUST COMPANY PROTOTYPE DEFINED CONTRIBUTION PLAN FROZEN ACCOUNT ADDENDUM The following vesting and withdrawal rules apply to frozen accounts under this Plan. A. FROZEN EMPLOYEE ROLLOVER COMPONENT
B. FROZEN EMPLOYEE AFTER-TAX COMPONENT
C. FROZEN EMPLOYEE DEDUCTIBLE COMPONENT
D. FROZEN EMPLOYER SAFE-HARBOR COMPONENT
E. FROZEN EMPLOYER REGULAR MATCHING COMPONENT
F. FROZEN EMPLOYER REGULAR PROFIT SHARING COMPONENT
G. FROZEN EMPLOYER QUALIFIED MATCHING AND PROFIT SHARING COMPONENT
H. FROZEN EMPLOYER PENSION COMPONENT
SPECIAL TESTING RULES ADDENDUM THIS SPECIAL TESTING RULES ADDENDUM MUST BE COMPLETED IF THIS AMENDMENT TO THE PLAN IS BEING MADE IN ORDER TO RETROACTIVELY DOCUMENT THE ADMINISTRATIVE CHOICES MADE IN RESPONSE TO CHANGES IN THE LAW RESULTING FROM THE URUGUAY ROUND AGREEMENTS ACT ("GATT"), THE UNIFORM SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT ("USERRA"), THE SMALL BUSINESS JOB PROTECTION ACT OF 1996 ("SBJPA"), THE TAXPAYER RELIEF ACT OF 1997 ("TRA '97"), THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998 OR THE COMMUNITY RENEWAL TAX RELIEF ACT OF 2000 (COLLECTIVELY REFERRED TO AS "GUST"). THE ELECTIONS SET FORTH IN THE ADOPTION AGREEMENT WILL CONTROL FOR PLAN YEARS BEGINNING ON AND AFTER THE AMENDMENT EFFECTIVE DATE OF THE ADOPTION AGREEMENT THAT IMPLEMENTS THE CHANGES REQUIRED BY GUST. THE FOLLOWING ELECTIONS RELATE ONLY TO PLAN YEARS BEGINNING PRIOR TO SUCH AMENDMENT EFFECTIVE DATE. HIGHLY COMPENSATED EMPLOYEES EXPLANATION: Code Section 414(q) allows two elections for purposes of determining the Highly Compensated Employees. First, a "top-paid group" election generally allows the Highly Compensated Employees (other than more than five-percent owners) to be limited to the top 20% of employees when ranked by compensation. Second, if the plan year is other than the calendar year, a "calendar year" election generally allows the Highly Compensated Employees to be determined based on calendar year compensation instead of plan year compensation. These elections are first available for plan years beginning on or after January 1, 1997. ELECTION (1): Specify whether the "top-paid group" election did or did not apply for the specified Plan Year ... [complete]:
ELECTION (2): Specify whether the "calendar year" election did or did not apply for the specified Plan Year ... [complete]: [NOTE: DO NOT COMPLETE FOR ANY YEAR FOR WHICH THE CALENDAR YEAR WAS THE PLAN YEAR.]
[NOTE: DEPENDING ON YOUR ADOPTION AGREEMENT, THE "CALENDAR YEAR" ELECTION MAY NOT BE AVAILABLE FOR PLAN YEARS BEGINNING ON OR AFTER THE AMENDMENT EFFECTIVE DATE OF YOUR NEW ADOPTION AGREEMENT.] ACTUAL DEFERRAL/CONTRIBUTION PERCENTAGE TEST EXPLANATION: Code Section 401(k) requires that elective deferrals annually satisfy an Actual Deferral Percentage (ADP) Test. Further, Code Section 401(m) requires that after-tax contributions and matching contributions annually satisfy an Actual Contribution Percentage (ACP) Test. Starting for the first plan year beginning on or after January 1, 1997, the ADP and ACP Tests must either be applied using a "prior year" or "current year" testing methodology. ELECTION (1): For each specified Plan Year in which the Plan was subject to the ADP Test, specify whether the "prior year" or "current year" testing methodology applied for purposes of the ADP Test ... [complete]: [NOTE: IF THE PLAN WAS A SAFE-HARBOR PLAN UNDER CODE SECTION 401(k)(12) FOR ANY PLAN YEAR BEGINNING ON OR AFTER JANUARY 1, 1999, THE "CURRENT YEAR" METHOD MUST BE SPECIFIED FOR THAT PLAN YEAR.]
ELECTION (2): For each specified Plan Year in which the Plan was subject to the ACP Test, specify whether the "prior year" or "current year" testing methodology applied for purposes of the ACP Test ... [complete]: [NOTE: IF THE PLAN WAS A SAFE-HARBOR PLAN UNDER CODE SECTION 401(m)(11) FOR ANY PLAN YEAR BEGINNING ON OR AFTER JANUARY 1, 1999, THE "CURRENT YEAR" METHOD MUST BE SPECIFIED FOR THAT PLAN YEAR.]
FAMILY AGGREGATION RULES EXPLANATION: Code Section 401(a)(17) previously applied certain "family aggregation rules" to determine the annual compensation limit of A participant. Those family aggregation rules were repealed effective as of the first plan year beginning on or after January 1, 1997. However, the Plan voluntarily may have continued to apply the family aggregation rules for this purpose until it is amended for GUST. ELECTION: The Plan discontinued the family aggregation rules as of the Plan Year beginning on or after ... [check one]: a. [X] January 1, 1997. b. [ ] the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. c. [ ] ________ [a date between the dates specified in a. and b.] CASH-OUT AMOUNT EXPLANATION: Code Section 411(a)(11) previously allowed involuntary "cash-out" of amounts not in excess of $3,500. This limit was raiseD to $5,000 effective as of the first plan year beginning after August 5, 1997. However, the Plan voluntarily may have continued the $3,500 (or a lower) cash-out amount. ELECTION: The Plan implemented the higher cash-out amount now specified in the Adoption Agreement as of...[check one]: a. [X] the first day of the first Plan Year beginning after August 5, 1997. b. [ ] the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. c. [ ] [a date between the dates specified in a. and b.] d. [ ] N/A - the cash-out amount has not been increased by the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. REQUIRED BEGINNING DATE EXPLANATION: Code Section 401(a)(9) previously required that minimum distributions commence to any participant as of the April 1 of the calendar year after the calendar year in which he/she attained age 70 1/2 (even if he/she remained employed with the employer sponsoriNg the plan). This "required beginning date" was changed for participants who are still employed after age 70 1/2 (but not for more thAn five percent owners) effective January 1, 1997. However, the Plan voluntarily may have continued to determine the required beginning date based on the definition in effect prior to January 1, 1997. ELECTION (1): The Plan implemented the new required beginning date as of ... [check one]: a. [X] January 1, 1997. b. [ ] the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. c. [ ]_____ [a date between the dates specified in a. and b.] d. [ ] N/A - the new required beginning date has not been implemented by the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. [NOTE: THIS OPTION IS NOT APPROPRIATE FOR PLANS ADOPTED OR ORIGINALLY EFFECTIVE ON OR AFTER JANUARY 1, 1997.] ELECTION (2): A Participant who attained age 70 1/2 prior to the date specified above and who has not had a Termination of Service ... [check one]: [NOTE: DO NOT COMPLETE IF d. IS SELECTED ABOVE.] a. [X] may not elect to stop minimum distributions. b. [ ] may elect to stop minimum distributions and recommence such distributions by the April 1 of the calendar year after the calendar year of his/her Termination of Service, and the new commencement date ... [check one]: 1. [ ] will 2. [ ] will not ... be treated as a new Benefit Starting Date for purposes of the Plan. [NOTE: THE OPTION TO STOP MINIMUM DISTRIBUTIONS DOES NOT APPLY TO A PARTICIPANT WHO IS A MORE THAN FIVE-PERCENT OWNER IN THE PLAN YEAR ENDING IN THE CALENDAR YEAR IN WHICH HE/SHE ATTAINS AGE 70 1/2.] COMBINED PLAN LIMIT EXPLANATION: Code Section 415(e) previously imposed a "combined plan limit" if an employer maintained both a defined contribution plan anD a defined benefit plan. This limit was repealed effective for Limitation Years beginning on or after January 1, 2000. However, the Plan voluntarily may have continued to apply the limit until it is amended for GUST. ELECTION: The Plan eliminated the combined plan limit effective as of the first Limitation Year beginning on or after ... [check one]: a. [X] January 1, 2000. b. [ ] the Amendment Effective Date of the Adoption Agreement that implements the changes required by GUST. c. [ ] ______ [a date between the dates specified in a. and b.] d. [ ] N/A - no Controlled Group Member has maintained a defined benefit plan after January 1, 2000, covering any Participant in this Plan. ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 PLAN ADDENDUM THE ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 ("EGTRRA") MADE A NUMBER OF CHANGES TO THE PLAN - SOME MANDATORY AND SOME OPTIONAL. THIS EGTRRA ADDENDUM INCLUDES BOTH THE REQUIRED CHANGES TO THE PLAN AND THE ELECTIVE PROVISIONS. USE OF THIS ADDENDUM: For a Plan with an Original Effective Date prior to January 1, 2002, use this Addendum to amend the Plan for the provisions of EGTRRA. This Addendum must be adopted by the Lead Employer by the end of the Plan Year beginning in 2002. For a Plan with an Original Effective Date on or after January 1, 2002, use this Addendum to supplement the Adoption Agreement for plan options which are not reflected on the Adoption Agreement. This Addendum should be adopted with the Adoption Agreement. PREAMBLE 1. ADOPTION AND EFFECTIVE DATE OF AMENDMENT. Except as otherwise provided, this Addendum shall be effective as of the first day of the first Plan Year beginning after December 31, 2001 (or the Plan's Original Effective Date, if later). This Addendum is intended as good faith compliance with the requirements of EGTRRA and is to be construed in accordance with EGTRRA and guidance issued thereunder. 2. INCONSISTENT PROVISIONS. This Addendum shall supersede the provisions of the Basic Plan Document and the Adoption Agreement to the extent those provisions are inconsistent with the provisions of this Addendum. LEAD EMPLOYER OPTIONS THE FOLLOWING AMENDMENTS REFLECT PROVISIONS OF EGTRRA ON WHICH CHOICES ARE AVAILABLE TO LEAD EMPLOYERS. LEAD EMPLOYERS MUST COMPLETE THE FOLLOWING ELECTIONS AND SIGN THIS ADDENDUM ON THE FINAL PAGE. IF YOU DO NOT COMPLETE THIS ADDENDUM, THE DEFAULT PROVISIONS OF THE BASIC PLAN DOCUMENT WILL CONTINUE TO APPLY. PLAN COMPENSATION EXPLANATION: Tax law limits the amount of a Participant's earnings that can be considered for purposes of Plan contributions. For the 2001 Plan Year, the limit was $170,000. Under EGTRRA, this limit was increased to $200,000 in 2002, and will be adjusted for inflation in future years. This increase is not mandatory and a Plan on a non-standardized adoption agreement may elect to remain at the $170,000 limit indefinitely, with no adjustments for inflation. However, a Plan must use $200,000 (or the applicable yearly limit) for the purposes of calculating Employer Safe-Harbor Matching or Safe-Harbor Profit Sharing Contributions for Plan Years beginning on or after January 1, 2002. Please note that if the Lead Employer has otherwise limited Plan Compensation to a specific dollar amount under Section E.2. of the Adoption Agreement, it may be unnecessary to complete this election. ELECTION: PLAN COMPENSATION. Will the Plan limit Plan Compensation to $170,000 for Plan Years beginning on or after January 1, 2002? ... [check if applicable]: a. [ ] Yes. [NOTE: NOT A VALID OPTION FOR A PLAN ON A STANDARDIZED ADOPTION AGREEMENT. THIS LIMIT WILL NOT APPLY FOR THE PURPOSES OF EMPLOYER SAFE-HARBOR MATCHING OR SAFE-HARBOR PROFIT SHARING CONTRIBUTIONS.] [NOTE: UNLESS a. IS CHECKED ABOVE, THE PLAN COMPENSATION LIMIT WILL BE $200,000 FOR THE 2002 PLAN YEAR AND WILL CONTINUE TO BE ADJUSTED FOR COST OF LIVING INCREASES IN FUTURE YEARS. HOWEVER, IF THE LEAD EMPLOYER HAS LIMITED PLAN COMPENSATION UNDER SECTION E.2.d. OF THE ADOPTION AGREEMENT, THAT LIMITATION WILL CONTINUE TO APPLY, REGARDLESS OF THE ELECTION MADE ABOVE.] ROLLOVERS DISREGARDED IN CASH-OUTS EXPLANATION: Effective January 1, 2002, a Plan may opt to calculate an involuntary cash-out amount by disregarding the balance of the Participant's Employee Rollover Account. If this election is made, the balance of the Participant's Employee Rollover Account will not be considered when determining if the Participant is subject to the cash-out. For example, a Participant with an Employee Rollover Account balance of $10,000 may be cashed-out of the Plan, provided the balance of his/her other Plan Accounts is under the cash-out amount then in effect for the Plan. ELECTION: TREATMENT OF EMPLOYEE ROLLOVER CONTRIBUTIONS IN THE APPLICATION OF THE CASH-OUT PROVISION. Does the Plan exclude Employee Rollover Contributions (and earnings allocable thereto) in determining whether the Participant's Benefit is subject to involuntary cash-out?...[check if applicable]: a. [ ] Yes. This rule applies to all...[complete if applicable]: 1. [ ] distributions made after ________ [enter a date no earlier than December 31, 2001] 2. [ ] Participants who separated from service after ________ [enter a date; date may be earlier than December 31, 2001] [NOTE: EMPLOYEE ROLLOVER ACCOUNT BALANCES WILL BE CONSIDERED IN DETERMINING CASH-OUTS UNLESS a. IS CHECKED ABOVE. IF a. IS CHECKED, BUT NEITHER 1. NOR 2. IS COMPLETED, THE NEW RULE WILL APPLY AS OF THE FIRST DAY OF THE PLAN YEAR IN WHICH THIS ADDENDUM IS SIGNED.] ROLLOVERS EXPLANATION: A Plan that accepts rollover contributions will accept rollovers from qualified plans and conduit IRAs. Starting with the first Plan Year beginning after December 31, 2001, a Plan may accept rollover contributions and direct rollovers from additional retirement savings vehicles - 403(b) plans, certain 457 plans, non-conduit IRAs (but only those amounts attributable to pre-tax or deductible contributions to the IRA), and rollovers of after-tax contributions to a retirement plan. If the Plan elects to receive after-tax contributions, the Plan must separately account for such amounts in order to track basis. In addition, the basis rules are different for certain after-tax contributions, depending when made. ELECTION: ADDITIONAL ROLLOVER SOURCES. Specify the additional sources from which the Plan will accept rollovers ... [check each of a. through d. that applies]: a. [ ] Annuity contracts described in Code Section 403(b). b. [ ] Code Section 457(b) plans maintained by a state, political subdivision of a state, or any agency or instrumentality of A state or political subdivision of a state. c. [ ] IRAs described in Code Section 408(a) or (b) (to the extent the distribution that is eligible to be rolled over is otherwise includible in gross income). d. [ ] After-tax contributions to Code Section 401(a) or 403(a) plan (excluding after-tax IRA and Roth IRA contributions). [NOTE: PLANS THAT ELECTED TO ACCEPT ROLLOVER CONTRIBUTIONS IN THE ADOPTION AGREEMENT WILL AUTOMATICALLY ACCEPT ROLLOVER CONTRIBUTIONS FROM QUALIFIED PLANS AND CONDUIT IRAs. IF YOU DO NOT COMPLETE THIS ELECTION, ROLLOVER CONTRIBUTIONS WILL NOT BE ACCEPTED FROM THE NEW SOURCES DESCRIBED IN a. THROUGH d. ABOVE.] Special Effective Date [complete if any of a. through d. above are checked]: This provision will be effective as of _____ [month, day, year]. [NOTE: IF THE EFFECTIVE DATE IS NOT SPECIFIED, THIS PROVISION WILL BE EFFECTIVE ON THE FIRST DAY OF THE PLAN YEAR IN WHICH THIS ADDENDUM IS SIGNED.] SUSPENSION PERIOD FOLLOWING HARDSHIP DISTRIBUTION EXPLANATION: Effective January 1, 2002, Plans may impose a 6 month pre-tax and after-tax deferral suspension period following a hardship withdrawal made after December 31, 2001. (Prior to January 1, 2002, the Plan imposed a twelve month suspension period following a hardship.) This change is mandatory for safe-harbor plans within the meaning of Code Section 401(k)(12) and 401(m)(11) (planS that avoid ADP and ACP testing by making 100% vested matching or profit sharing contributions to the Plan under Article H. of the Adoption Agreement). ELECTION 1: Will the Plan impose a 6 month suspension period following a hardship withdrawal made after December 31, 2001? ... [check if applicable]: a. [X] Yes. [NOTE: THE SUSPENSION PERIOD WILL BE 12 MONTHS UNLESS a. IS CHECKED ABOVE. HOWEVER, IF THIS PLAN IS A SAFE-HARBOR PLAN UNDER ARTICLE H. OF THE ADOPTION AGREEMENT, THE SUSPENSION PERIOD WILL BE 6 MONTHS REGARDLESS OF YOUR ELECTION ABOVE.] EXPLANATION: Plans may also limit the suspension period for a hardship withdrawal taken in 2001 to the later of 6 months after receipt of the distribution or January 1, 2002. A Plan with an Original Effective Date on or after January 1, 2002, should not complete this election. ELECTION 2: Will the Plan shorten the suspension period imposed following a hardship withdrawal made in 2001 to the later of 6 months after the receipt of the hardship distribution or January 1, 2002? ...[check if applicable]: a. [ ] Yes. [NOTE: THE SUSPENSION PERIOD FOLLOWING HARDSHIP WITHDRAWALS MADE IN 2001 WILL BE 12 MONTHS UNLESS a. IS CHECKED ABOVE.] VESTING SCHEDULE EXPLANATION: For Plan Years beginning on or after January 1, 2002, Plans are required to vest Participants in their Matching Contributions at least as quickly as a six-year graded schedule or a three-year cliff schedule. This change is required for all Matching Contributions on Elective Deferrals made after January 1, 2002. For a Plan in existence prior to 2002, the vesting schedule elected below (if different) replaces the vesting schedule elected in Section I.11. of the Adoption Agreement for all Matching Contributions made for Plan Years beginning on or after January 1, 2002. For a Plan with an Original Effective Date on or after January 1, 2002, the vesting schedule elected below applies to all Matching Contributions made to the Plan and Section I.11. of the Adoption Agreement does not apply. ELECTION 1: VESTING SCHEDULE FOR EMPLOYER MATCHING CONTRIBUTIONS. A Participant's vested percentage in his/her Employer Regular Matching Contributions made for Plan Years beginning on or after January 1, 2002 will be .... [check one]: a. [ ] 100% at all times. b. [ ] determined under the following schedule ... [complete as desired]:
c. [ ] determined under the following schedule ... [complete as desired]:
d. [ ] vesting schedule in Section I.11. of the Adoption Agreement complies with (a), (b) or (c). [NOTE: NOT A VALID OPTION FOR A PLAN WITH AN ORIGINAL EFFECTIVE DATE ON OR AFTER JANUARY 1, 2002.] [NOTE: IF THE PLAN MATCHES EMPLOYEE CATCH-UP CONTRIBUTIONS, THOSE MATCHING CONTRIBUTIONS WILL ALSO VEST ON THE SCHEDULE LISTED ABOVE. IF THE LEAD EMPLOYER DOES NOT COMPLETE THIS ELECTION AND THE PLAN'S VESTING SCHEDULE DOES NOT SATISFY THE NEW REQUIREMENTS, A GRADED VESTING SCHEDULE WILL BE DEEMED TO BE A SIX YEAR GRADED SCHEDULE (20% PER YEAR, STARTING AT TWO YEARS OF SERVICE) AND A CLIFF VESTING SCHEDULE WILL BE DEEMED TO BE A THREE YEAR CLIFF SCHEDULE (WITH FULL VESTING AT 3 YEARS OF SERVICE).] EXPLANATION: Plans may also apply the vesting schedule elected above to past Employer Regular Matching Contributions and to Employer Regular Profit Sharing Contributions for all Active Participants. Plans with an Original Effective Date on or after January 1, 2002, should not complete Election 2. For a Plan with an Original Effective Date prior to January 1, 2002, the Elections below will replace the applicable elections in the Adoption Agreement, if different, including Sections I.11. and J.9. of the Adoption Agreement. If the revised schedule is not applied to past matching contributions, a separate source will be required to track the vested percentage of the pre-2002 and post-2001 Matching Contributions. ELECTION 2: OTHER CONTRIBUTIONS. Specify the other contributions (which are currently subject to a vesting schedule), if any, to which the revised vesting schedule will apply...[check a., or each of b. and c. that applies]: a. [ ] N/A - the revised vesting schedule only applies to Employer Regular Matching Contributions made for Plan Years beginning on or after January 1, 2002. b. [ ] all Employer Regular Matching Contributions, whenever made. c. [ ] also to Employer Regular Profit Sharing Contributions ... [check one]: 1. [ ] whenever made. 2. [ ] made for Plan Years beginning on or after January 1, 2002. [NOTE: UNLESS b. OR c. IS CHECKED ABOVE, THE REVISED VESTING SCHEDULE WILL ONLY APPLY TO MATCHING CONTRIBUTIONS MADE FOR PLAN YEARS BEGINNING ON OR AFTER JANUARY 1, 2002. IF b. OR c. IS CHECKED ABOVE, THE REVISED VESTING SCHEDULE WILL ONLY APPLY TO THE SPECIFIED ACCOUNTS OF PARTICIPANTS WHO ARE ACTIVE PARTICIPANTS AT SOME TIME DURING THE 2002 PLAN YEAR. IF VESTING OCCURS AT A SLOWER RATE UNDER THE REVISED SCHEDULE, THE ELECTION PROVISIONS OF PLAN SECTION 10.2(k) WILL APPLY.] EMPLOYEE CATCH-UP CONTRIBUTIONS EXPLANATION: Effective January 1, 2002, a Plan may now allow Participants age 50 or over (plus those projected to attain age 50) in the applicable year to make additional pre-tax contributions ("Employee Catch-up Contributions") to the Plan when the Participant's pre-tax contributions are otherwise limited under the Plan or by law. However, if a Plan allows for Employee Catch-up Contributions, all plans in the Controlled Group that allow for pre-tax contributions must generally provide Participants with the same "effective opportunity" to make Employee Catch-up Contributions. ELECTION 1: EMPLOYEE CATCH-UP CONTRIBUTIONS. Will Employee Catch-up Contributions be allowed under this Plan? ... [check one]: a. [ ] No. b. [X] Yes. This provision will be effective as of ... [check one]: 1. [X] January 1, 2002. 2. [ ] The first day of the Plan Year beginning __ [specify date no earlier than January 1, 2002]. 3. [ ] Other __ [specify date no earlier than January 1, 2002]. [NOTE: THE PLAN WILL NOT ACCEPT EMPLOYEE CATCH-UP CONTRIBUTIONS UNLESS b. IS CHECKED ABOVE. EMPLOYEE CATCH-UP CONTRIBUTIONS WILL GENERALLY BE SUBJECT TO THE SAME ADMINISTRATIVE OPTIONS AND REQUIREMENTS THAT APPLY TO EMPLOYEE PRE-TAX CONTRIBUTIONS UNDER THE PLAN (E.G., THE DATES AS OF WHICH A PAY REDUCTION AGREEMENT MAY BE MODIFIED, ETC.).] ELECTION 2: MAXIMUM CONTRIBUTIONS. Employee Catch-up Contributions will be limited to ...[complete if applicable]: a. [ ] A maximum of ______ % of Plan Compensation each payroll period. [NOTE: IN ADDITION TO ANY PERCENTAGE LIMIT ON CONTRIBUTIONS ELECTED ABOVE, EMPLOYEE CATCH-UP CONTRIBUTIONS WILL BE LIMITED TO THE DOLLAR AMOUNT FOR THE APPLICABLE YEAR UNDER THE TAX LAWS.] EMPLOYER CATCH-UP MATCHING CONTRIBUTIONS EXPLANATION: Plans that allow Employee Catch-up Contributions may decide to match those contributions. While Employee Catch-up Contributions are generally exempt from the Plan's testing requirements, including the Actual Deferral Percentage Test, any matching contributions made on these Employee Catch-up Contributions will be considered in the Plan's testing. Employer Catch-up Matching Contributions will be allocated in the same manner and under the same formula as other Employer Regular Matching Contributions (or Employer Safe-Harbor Matching Contributions) made under the Plan. ELECTION: EMPLOYER CATCH-UP MATCHING CONTRIBUTIONS. Will the Plan match Employee Catch-up Contributions?...[check one]: a. [X] No. b. [ ] Yes. This provision will be effective as of ... [check one]: 1. [ ] January 1, 2002. 2. [ ] The first day of the Plan Year beginning ________ [specify date no earlier than January 1, 2002]. 3. [ ] Other ________ [specify date no earlier than January 1, 2002]. [NOTE: EMPLOYER CATCH-UP MATCHING CONTRIBUTIONS WILL NOT BE MADE UNLESS b. IS CHECKED ABOVE. EMPLOYER CATCH-UP MATCHING CONTRIBUTIONS WILL BE DETERMINED UNDER THE SAME FORMULA USED FOR EMPLOYER REGULAR MATCHING CONTRIBUTIONS (OR EMPLOYER SAFE-HARBOR MATCHING CONTRIBUTIONS).] MANDATORY PLAN AMENDMENTS THE FOLLOWING AMENDMENTS ARE MANDATORY CHANGES TO YOUR BASIC PLAN DOCUMENT AS A RESULT OF EGTRRA. ALTHOUGH YOU DO NOT HAVE TO MAKE ANY CHOICES ON THESE PROVISIONS, YOU SHOULD READ THROUGH THE CHANGES TO SEE HOW THEY AFFECT YOUR PLAN. SECTION 2.56(f) - PLAN COMPENSATION Effective January 1, 2002, Plan Section 2.56(f) is amended to add the following sentence at the end of the subsection: If so specified in the Adoption Agreement (or addendum thereto), for Plan Years beginning on or after January 1, 2002, Plan Compensation will be limited to $170,000, the Code Section 401(a)(17) limit in effect for 2001. SECTION 2.70 - TERMINATION OF SERVICE Effective for distributions made after December 31, 2001, Plan Section 2.70 is amended to replace the words "separation from service" with the words "severance from employment". In addition, the following sentence is added to the end of the section: The "severance from employment" standard applies to all distributions made after December 31, 2001, regardless of when the severance from employment occurred. SECTION 4.1 - PRE-TAX CONTRIBUTIONS Effective January 1, 2002, Plan Section 4.1(e) is amended to add the following to the end of the subsection: However, the limit in this subsection does not apply to any contributions permitted by the Plan and specified in the Adoption Agreement (or addendum thereto) which are subject to Code Section 414(v). Effective January 1, 2002, Plan Section 4.1 is amended to add a new subsection (i) to read as follows: (i) Employee Catch-up Contributions. If so specified in the Adoption Agreement (or addendum thereto), an eligible Active Participant may elect to have his/her Plan Compensation further reduced to make additional pre-tax contributions to the Plan, as provided in Code Section 414(v) and regulations thereunder. Such additional contributions are Employee Catch-up Contributions. To be eligible to make Employee Catch-up Contributions, the Active Participant must be otherwise eligible to make Employee Pre-Tax Contributions and must be age 50 or older. For purposes of this rule, a Participant who is projected to attain age 50 before the end of a calendar year is deemed to be age 50 as of January 1 of that year. Except to the extent required by applicable regulations, such Employee Catch-up Contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Code Section 401(a)(30) and 415(c). The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing Code Section 401(k)(3), 401(a)(4), 401(k)(3), 401(k)(11), 410(b) or 416, as applicable, by reason of allowing such Employee Catch-up Contributions. Employee Catch-up Contributions may not exceed the limit in effect under Code Section 414(v) for such taxable year. All Catch-up Contributions made by the Participant to any qualified plan or Code Section 403(b), 408(k) or 408(p) plan sponsored by a Controlled Group Member will be aggregated for purposes of this limit. Employee Catch-up Contributions under the Plan will be administered in accordance with Code Section 414(v) and any applicable regulations or other IRS guidance thereunder. Employee Catch-up Contributions will be subject to the same administrative options and requirements that apply to Employee Pre-Tax Contributions, as specified in the Adoption Agreement or other Plan procedures. SECTION 4.5 - ROLLOVER CONTRIBUTIONS Effective January 1, 2002, Plan Section 4.5 is amended to replace the second paragraph with the following: An "Employee Rollover Contribution" means a rollover contribution or rollover amount from another qualified plan or "conduit" individual retirement account described in Code Section 401(a)(31), 402(c), 403(a)(4) or 408(d)(3), or an elective transfer described in Treas. Reg. Section 1.411(d)-4(Q&A-3), as allowed under the Code as in effect on December 31, 2001. As of the first day of the Plan Year beginning in 2002, or any later date that may be indicated in the Adoption Agreement (or addendum hereto), "Employee Rollover Contribution" also includes rollover contributions from the sources, if any, specified in the Adoption Agreement (or addendum thereto). SECTION 5.2 - REGULAR MATCHING CONTRIBUTIONS Effective January 1, 2002, Plan Section 5.2 is amended to add a new subsection (h) to read as follows: (h) Matching Employee Catch-up Contributions. If so specified in the Adoption Agreement (or addendum thereto), the Employer will make Employer Catch-up Matching Contributions on the Employee Catch-up Contributions made under the Plan. Employer Catch-up Matching Contributions will be allocated in the same manner as Employer Regular Matching Contributions (or Employer Safe-Harbor Matching Contributions). Any such Employer Catch-up Matching Contributions under the Plan will be administered in accordance with Code Section 414(v) and any applicable regulations or other IRS guidance thereunder. SECTION 10.2 - VESTING SCHEDULE FOR EMPLOYER REGULAR MATCHING CONTRIBUTIONS Effective January 1, 2002, Plan Section 10.2 is amended to add a new subsection (n) to read as follows: (n) Vesting of Employer Matching Contributions. Notwithstanding any provision of the Plan to the contrary, all Employer Regular and Catch-up Matching Contributions made for Plan Years beginning on or after January 1, 2002, shall vest as specified in the Adoption Agreement (or addendum thereto), provided such vesting schedule satisfies the requirements of Code Section 411(a). If the specified vesting schedule does not satisfy the requirements of Code Section 411(a), a graded vesting schedule will be deemed to be a six year graded schedule (20% per year, starting at 2 years of Service) and a cliff vesting schedule will be deemed to be a three year cliff schedule (with full vesting at 3 years of Service). If and to the extent so specified in the Adoption Agreement (or addendum thereto), the vesting schedule required by Code Section 411(a) will be applied to other Contribution Accounts, including Employer Regular Matching Contributions made for Plan Years beginning prior to January 1, 2002, and Employer Regular Profit Sharing Contributions. SECTION 11.2(b) - SUSPENSION PERIOD FOLLOWING HARDSHIP DISTRIBUTION Effective January 1, 2002, Plan Section 11.2(b)(3)(B)(iii) is amended to add the following paragraph: If so specified in the Adoption Agreement (or addendum thereto), for withdrawals made on or after January 1, 2002, the Participant's Pre-Tax and After-Tax Contributions, Elective Deferrals and other voluntary contributions will be suspended for a period of six months after such withdrawal. For Plans that are safe-harbor plans within the meaning of Code Section 401(k)(12) or 401(m)(11), the suspension period is six months after such withdrawal. For withdrawals made in 2001, the suspension period will be the later of 6 months after the receipt of the distribution or January 1, 2002, if so specified in the Adoption Agreement (or addendum thereto). Effective January 1, 2002, Plan Section 11.2(b)(3)(B)(iv) is amended to add the following paragraph: Effective January 1, 2002, this paragraph (iv) shall cease to apply to this Plan. SECTION 11.3(g) - PLAN LOANS FOR OWNER-EMPLOYEES AND SHAREHOLDER EMPLOYEES Plan Section 11.3(g), prohibiting Plan loans to any owner-employee or shareholder-employee, shall cease to apply effective for Plan loans made after December 31, 2001. SECTION 12.4 - CASH-OUT OF SMALL BENEFITS Effective January 1, 2002, Plan Section 12.4 is amended to add the following paragraph: If so specified in the Adoption Agreement (or addendum thereto), Benefits attributable to Employee Rollover Contributions, and earnings thereon, shall be disregarded in determining the cash-out amount. SECTION 12.8 - DIRECT ROLLOVERS Effective for distributions made after December 31, 2001, Plan Section 12.8(c)(1) is amended to replace subsections (C) and (D) as follows: (C) Any distribution to the extent such a distribution is attributable to a Hardship. (D) Any portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Code Section 408(a) or (b), or to a qualified defined contribution plan described in Code Section 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Effective for distributions made after December 31, 2001, Plan Section 12.8(c)(3) is amended to read as follows: (3) "Eligible Retirement Plan" - means an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), a qualified trust described in Code Section 401(a), an annuity contract described in Code Section 403(b), an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan, or any other plan or account allowed under future legislation or regulation that accepts the Eligible Rollover Distribution. The definition of Eligible Retirement Plan also applies in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p). SECTION 12.17 - SPECIAL DISTRIBUTION PROVISIONS Effective January 1, 2002, Plan Section 12.17 is amended to add the following sentence to the end of the section: Effective January 1, 2002, subsections (b) and (c) shall cease to apply to this Plan. ARTICLE XVII - TOP-HEAVY RULES For Plan Years beginning after December 31, 2001, Plan Section 17.1(a) is amended to add the following paragraph: As of the first day of the Plan Year beginning on or after January 1, 2002, Employer Regular and Catch-up Matching Contributions under this Plan (and employer matching contributions under any other plan whose contributions are to be used to satisfy the requirements of this section) may be used to satisfy the minimum amount of employer contributions which must be allocated under this section. Matching Contributions that are used to satisfy the requirements of this section shall be treated as Employer Regular and Catch-up Matching Contributions for purposes of the Actual Contribution Percentage Test and other requirements of Code Section 401(m). For Plan Years beginning after December 31, 2001, Plan Section 17.1(b) is amended to add a new paragraph (7) to read as follows: (7) As of the first day of the Plan Year beginning on or after January 1, 2002, this Article XVII shall not apply in any year in which the Plan consists solely of a cash or deferred arrangement which meets the requirements of Code Section 401(k)(12) and Safe-Harbor Matching Contributions with respect to which the requirements of Code Section 401(m)(11) are met. For Plan Years beginning after December 31, 2001, Plan Section 17.4(b) is amended to read as follows: (b) Key Employee - means any individual defined as such in Code Section 416(i); generally, any Employee or former Employee (including the Beneficiary of a deceased Employee or former Employee) who at any time during the Plan Year that includes the Determination Date was: (1) An officer having Top-Heavy Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002). (2) A five-percent owner. (3) A one-percent owner who has Top-Heavy Compensation of more than $150,000. The determination of who is a Key Employee will be made in accordance with Code Section 416(i)(1) and the applicable regulations and other guidance of general applicability issued thereunder. For Plan Years beginning after December 31, 2001, Plan Section 17.4(l) is amended to add a new paragraph (5) to read as follows: (5) As of the first day of the Plan Year beginning on or after January 1, 2002, any distribution due to severancen from employment, death or disability which was made prior to the one-year period ending on the Determination Date shall be disregarded for purposes of applying the top-heavy rules. Paragraphs (1) and (2) of this subsection shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with this Plan under Code Section 416(a)(2)(A)(i). If an individual has not performed services for the employer at any time during the one-year period ending on the Determination Date, any account balance or accrued benefit for such individual shall not be taken into account. SECTION 18.4(a) - ANNUAL ADDITIONS Effective January 1, 2002, Plan Section 18.4(a) is amended to add the following paragraph: Annual Additions do not include any Employee Rollover Contribution made to this Plan. For Plan Years commencing in 2002 or later, any contributions to the Plan determined to be Employee Catch-up Contributions under Code Section 414(v) are not Annual Additions. SECTION 18.4(j) - MAXIMUM PERMISSIBLE AMOUNT For Limitation Years beginning after December 31, 2001, Plan Section 18.4(j) is amended to read as follows: (j) Maximum Permissible Amount - means the maximum Annual Addition that may be contributed or allocated to a Participant's Contribution Accounts under the Plan for any Limitation Year, which (except to the extent permitted under Code Section 414(v), if applicable) will not exceed the lesser of: (1) $40,000, (as adjusted for increases in the cost-of-living under Code Section 415(d)). If a short Limitation Year is created because of an amendment changing the Limitation Year to a different twelve-consecutive-month period, the dollar limit above will be multiplied by the number of months (full months) in the short Limitation Year and divided by 12. (2) 100% of the Participant's 415 Compensation for the Limitation Year. The limitation referred to in paragraph (2) will not apply to any contribution for medical benefits (within the meaning of Code Section 401(h) or 419A(f)(2)) which is otherwise treated as an Annual Addition under Code Section 415(l)(1) or 419A(d)(2). SECTION 19.4 - MULTIPLE USE TEST Effective January 1, 2002, Plan Section 19.4 is amended to add a new subsection (c) to read as follows: (c) This section will not apply to any Plan Years beginning on or after January 1, 2002. SECTION 19.6(h) - EXCESS DEFERRALS Effective January 1, 2002, Plan Section 19.6(h) is amended to add the following sentence to the end of the subsection: However, in determining Excess Deferrals, any contributions to the Plan subject to Code Section 414(v) shall be disregarded. LEAD EMPLOYER SIGNATURE IN WITNESS WHEREOF, the Lead Employer has caused this EGTRRA Addendum to be adopted effective as of the date specified below. YOU SHOULD CONSULT WITH AN ATTORNEY OR OTHER INDEPENDENT QUALIFIED ADVISOR AS TO THE LEGAL AND TAX EFFECT OF ADOPTING THIS ADDENDUM. Date signed: _______________________________ Lead Employer: Range Resources Corporation. By: ______________________________ Name [print]: _______________ Its [title]: ________________