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HomeMy WebLinkAbout951_Amend_OMRF Defined Contribution PlanTulsa County Clerk - EARLENE WILSON Doc # 2009114397 Page(s): 2 Recorded 11/06/2009 at 10:64 AM # 178277 Fee $15.00 V OF OWASSO, OKLAHOMA ORDINANCE NO. 951 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT TO -WIT: Section 1. That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the purpose of encouraging continuity and meritorious service on the part of City employees and thereby promote public efficiency, there is hereby authorized created, established, and approved and adopted, effective as of January 1, 2010, the amended and restated Plan designated "Employee Retirement System of the City of Owasso, Oklahoma, Defined Contribution Plan," (hereinafter called System), an executed counterpart of which is marked Exhibit "A" (Joinder Agreement) and Exhibit "B" (amended and restated plan) and attached hereto as part hereof. Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the persons entitled to benefits under the System. All contributions to such fund shall be paid over to and received in trust for such purpose by the City. Such Fund shall be pooled for purposes of management and investment with similar funds of other incorporated cities, towns, and municipal trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement Fund in accordance with the trust agreement of the Oklahoma Municipal Retirement Fund, a public trust. The City shall hold such contributions in the form received, and from time to time pay over and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in computing any levy when the annual estimate is made to the County Excise Board. AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED CONTRIBUTION PLAN FOR THE CITY OF OWASSO, OKLAHOMA BY ADOPTING A REVISED AND RESTATED RETIREMENT PLAN; PROVIDING RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR ELIGIBILITY AND PARTICIPATION; PROVIDING FOR NON - ALIENATION OF BENEFITS; LOSS OF BENEFITS FOR CAUSE AND LIMITATIONS OF BENEFITS; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLOCATION, AND VALUATION; PROVIDING BENEFITS; PROVIDING FOR REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND PROVIDING FOR POWERS, DUTIES, AND RIGHTS OF RETIREMENT COMMITTEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVIDING FOR VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES TOWNS AND THEIR AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF ADMINISTRATION, MANAGEMENT, AND INVESTMENTS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE OKLAHOMA MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT; PROVIDING FOR REPEALER AND SEVERABILITY; ADOPTING THOSE AMENDMENTS MANDATED BY THE INTERNAL REVENUE CODE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT TO -WIT: Section 1. That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the purpose of encouraging continuity and meritorious service on the part of City employees and thereby promote public efficiency, there is hereby authorized created, established, and approved and adopted, effective as of January 1, 2010, the amended and restated Plan designated "Employee Retirement System of the City of Owasso, Oklahoma, Defined Contribution Plan," (hereinafter called System), an executed counterpart of which is marked Exhibit "A" (Joinder Agreement) and Exhibit "B" (amended and restated plan) and attached hereto as part hereof. Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the persons entitled to benefits under the System. All contributions to such fund shall be paid over to and received in trust for such purpose by the City. Such Fund shall be pooled for purposes of management and investment with similar funds of other incorporated cities, towns, and municipal trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement Fund in accordance with the trust agreement of the Oklahoma Municipal Retirement Fund, a public trust. The City shall hold such contributions in the form received, and from time to time pay over and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in computing any levy when the annual estimate is made to the County Excise Board. section 3. APPROPRIATIONS. The City of Owasso, Oklahoma, is hereby authorized to incur the necessary expenses for the establishment, operation, and administration of the System, and to appropriate and pay the same. In addition, the City of Owasso, Oklahoma, is hereby authorized to appropriate annually such amounts as are required in addition to employee contributions to maintain the System and the Fund in accordance with the provisions of the Defined Contribution Plan. Any appropriation so made to maintain the System and Fund shall be for deferred wages or salaries, and for the payment of necessary expenses of operation and administration to be transferred to the trustees of the Oklahoma Municipal Retirement Fund for such purposes and shall be paid into the Fund when available, to be duly transferred to the Oklahoma Municipal Retirement Fund. Section 4. EXECUTION. The Mayor and City Clerk be and they are each hereby authorized and directed to execute (in counterparts, each of which shall constitute an original) the System instrument, and to do all other acts and things necessary, advisable, and proper to put said System and related trust into full force and effect, and to make such changes therein as may be necessary to qualify the same under Sections 401(a) and 501(a) of the Internal Revenue Code of the United States. The counterpart attached hereto as Exhibit "A" and Exhibit "B ", which has been duly executed as aforesaid simultaneously with the passage of this Ordinance and made a part hereof, is hereby ratified and confirmed in all respects. This Committee is hereby authorized and directed to proceed immediately on behalf of the City of Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal Retirement Fund as a part thereof, with similar funds of such other cities and towns, for purposes of pooled management and investment. Section 5. REPEALER. Any Ordinance inconsistent with the terms and provisions of this Ordinance is hereby repealed, provided, however, that such repeal shall be only to the extent of such inconsistency and in all other respects this Ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this Ordinance. Section 6. SEVERABILITY. If, regardless of cause, any section, subsection, paragraph, sentence or clause of this Ordinance, including the System as set forth in Exhibit "A" and Exhibit "B ", is held invalid or to be unconstitutional, the remaining sections, subsections, paragraphs, sentences, or clauses shall continue in full force and effect and shall be construed thereafter as being the entire provisions of this Ordinance. ** *END * ** APPROVED this 3`d day of November, 2009. ATTEST: 4T14k ''" OF CitY of Owasso, Oklah OFFICIAL Sherry Bishop, Stephen Cataudella, Mayor APPROVED AS TO FOR Julie Lombardi, City Attorney PUBLISHER'S AFFIDAVIT ORD NO. 951 PUBLICATION DATE(S) 11/10/09 CASE NUMBER: ORD NO. 951 AD NO: 00092631 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa I SS I, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a weekly newspaper of general circulation in Tulsa, Oklahoma, a newspaper quali- fied to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISTED DATE(S) Representative Signature Subscribed to and sworn to me this 11th day of November, 2009. Notary Public CAROL MOORE My commission number: 06011684 My commission expires: December 8, 2010 Customer #: 00000779 Customer: CITY OF OWASSO 92631 Published in the Owasso Reporter, Owasso, Tulsa County, Okla- homa, November 10, 2009. AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 951 AN ORDINANCE AMENDING THE EMPLOYEE RETIRE- MENT SYSTEM, DEFINED CONTRIBUTION PLAN FOR THE CITY OF OWASSO, OKLAHOMA BY ADOPTING A RE- VISED AND RESTATED RETIREMENT PLAN; PROVIDING RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINI- TIONS; PROVIDING FOR ELIGIBILITY AND PARTICIPA- TION; PROVIDING FOR NON - ALIENATION OF BENEFITS; LOSS OF BENEFITS FOR CAUSE AND LIMITATIONS OF BENEFITS; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLO- CATION, AND VALUATION; PROVIDING BENEFITS; PRO- VIDING FOR REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND PROVIDING FOR POW- ERS, DUTIES, AND RIGHTS OF RETIREMENT COMMIT- TEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGA- TIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVID- ING FOR VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES TOWNS AND THEIR AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF ADMIN- ISTRATION, MANAGEMENT, AND INVESTMENTS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PRO- VIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE OKLAHOMA MUNICIPAL RETIRE- MENT FUND FOR MANAGEMENT AND INVESTMENT; PROVIDING FOR REPEALER AND SEVERABILITY; ADOPTING THOSE AMENDMENTS MANDATED BY THE INTERNAL REVENUE CODE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT TO -WIT: Section 1. That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the purpose of encouraging continu- ity and meritorious service on the part of City employees and thereby promote public efficiency, there is hereby authorized cre- ated, established, and approved and adopted, effective as of Janu- ary 1, 2010, the amended and restated Plan designated "Employee Retirement System of the City of Owasso, Oklahoma, Defined Con- tribution Plan," (hereinafter called System), an executed counter- part of which is marked Exhibit "A" Joinder Agreement) and Ex- hibit "B" (amended and restated plan) and attached hereto as part hereof. Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the persons entitled to benefits under the Sys- tem. All contributions to such fund shall be paid over to and re- ceived in trust for such purpose by the City. Such Fund shall be pooled for purposes of management and investment with similar funds of other incorporated cities, towns, and municipal trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement I�und in accordance with the trust agreement of the Oklahoma Mu- nicipal Retirement Fund, a public trust. The City shall hold such contributions in the form received, and from time to time pay over and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in computing any levy when the annual estimate is made to the County Excise Board. Section 3. APPROPRIATIONS. The City of Owasso, Oklahoma, is hereby authorized to incur the necessary expenses for the estab- lishment, operation, and administration of the System, and to ap- propriate and pay the same. In addition, the City of Owasso, Okla- homa, is hereby authorized to appropriate annually such amounts as are required in addition to employee contributions to maintain the System and the Fund in accordance with the provisions of the Defined Contribution Plan. Any appropriation so made to maintain the System and Fund shall be for deferred wages or salaries, and for the payment of necessary expenses of operation and admini- stration to be transferred to the trustees of the Oklahoma Municipal Retirement Fund for such purposes and shall be paid into the Fund when available, to be duly transferred to the Oklahoma Municipal Retirement Fund. Section 4. EXECUTION. The Mayor and City Clerk be and they are each hereby authorized and directed to execute (in counter- parts, each of which shall constitute an original) the System instru- ment, and to do all other acts and things necessary, advisable, and proper to put said System and related trust into full force and effect, and to make such changes therein as may be necessary to qualify the same under Sections 401(a) and 501(a) of the Internal Reve- n�� �(�P of jhPIni1a��ai�5.lir� CBd�l�l�olf �ttah�tl h�ialo �s E exhibit "A" and Exhibit "B ", which has been duly executed as afore- said simultaneously with the passage of this Ordinance and made a part hereof, is hereby ratified and confirmed in all respects. This Committee is hereby authorized and directed to proceed i immediately on behalf of the City of Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal Retirement Fund as a part thereof, with similar funds of such other cities and towns, for purposes of pooled management and investment. Section 5. REPEALER. Any Ordinance inconsistent with the terms and provisions of this Ordinance is hereby repealed, pro- vided, however, that such repeal shall be only to the extent of such NANCY CAROL MOORE Publisher's Fee: 189.00 Notary Public -Stale of Oklahoma Tulsa County My Commission Expires December 8, 2010 Commission # 06011664 92631 Published in the Owasso Reporter, Owasso, Tulsa County, Okla- homa, November 10, 2009. AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 951 AN ORDINANCE AMENDING THE EMPLOYEE RETIRE- MENT SYSTEM, DEFINED CONTRIBUTION PLAN FOR THE CITY OF OWASSO, OKLAHOMA BY ADOPTING A RE- VISED AND RESTATED RETIREMENT PLAN; PROVIDING RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINI- TIONS; PROVIDING FOR ELIGIBILITY AND PARTICIPA- TION; PROVIDING FOR NON - ALIENATION OF BENEFITS; LOSS OF BENEFITS FOR CAUSE AND LIMITATIONS OF BENEFITS; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLO- CATION, AND VALUATION; PROVIDING BENEFITS; PRO- VIDING FOR REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND PROVIDING FOR POW- ERS, DUTIES, AND RIGHTS OF RETIREMENT COMMIT- TEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGA- TIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVID- ING FOR VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES TOWNS AND THEIR AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF ADMIN- ISTRATION, MANAGEMENT, AND INVESTMENTS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PRO- VIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE OKLAHOMA MUNICIPAL RETIRE- MENT FUND FOR MANAGEMENT AND INVESTMENT; PROVIDING FOR REPEALER AND SEVERABILITY; ADOPTING THOSE AMENDMENTS MANDATED BY THE INTERNAL REVENUE CODE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT TO -WIT: Section 1. That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the purpose of encouraging continu- ity and meritorious service on the part of City employees and thereby promote public efficiency, there is hereby authorized cre- ated, established, and approved and adopted, effective as of Janu- ary 1, 2010, the amended and restated Plan designated "Employee Retirement System of the City of Owasso, Oklahoma, Defined Con- tribution Plan," (hereinafter called System), an executed counter- part of which is marked Exhibit "A" Joinder Agreement) and Ex- hibit "B" (amended and restated plan) and attached hereto as part hereof. Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the persons entitled to benefits under the Sys- tem. All contributions to such fund shall be paid over to and re- ceived in trust for such purpose by the City. Such Fund shall be pooled for purposes of management and investment with similar funds of other incorporated cities, towns, and municipal trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement I�und in accordance with the trust agreement of the Oklahoma Mu- nicipal Retirement Fund, a public trust. The City shall hold such contributions in the form received, and from time to time pay over and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in computing any levy when the annual estimate is made to the County Excise Board. Section 3. APPROPRIATIONS. The City of Owasso, Oklahoma, is hereby authorized to incur the necessary expenses for the estab- lishment, operation, and administration of the System, and to ap- propriate and pay the same. In addition, the City of Owasso, Okla- homa, is hereby authorized to appropriate annually such amounts as are required in addition to employee contributions to maintain the System and the Fund in accordance with the provisions of the Defined Contribution Plan. Any appropriation so made to maintain the System and Fund shall be for deferred wages or salaries, and for the payment of necessary expenses of operation and admini- stration to be transferred to the trustees of the Oklahoma Municipal Retirement Fund for such purposes and shall be paid into the Fund when available, to be duly transferred to the Oklahoma Municipal Retirement Fund. Section 4. EXECUTION. The Mayor and City Clerk be and they are each hereby authorized and directed to execute (in counter- parts, each of which shall constitute an original) the System instru- ment, and to do all other acts and things necessary, advisable, and proper to put said System and related trust into full force and effect, and to make such changes therein as may be necessary to qualify the same under Sections 401(a) and 501(a) of the Internal Reve- E exhibit "A" and Exhibit "B ", which has been duly executed as afore- said simultaneously with the passage of this Ordinance and made a part hereof, is hereby ratified and confirmed in all respects. This Committee is hereby authorized and directed to proceed i immediately on behalf of the City of Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal Retirement Fund as a part thereof, with similar funds of such other cities and towns, for purposes of pooled management and investment. Section 5. REPEALER. Any Ordinance inconsistent with the terms and provisions of this Ordinance is hereby repealed, pro- vided, however, that such repeal shall be only to the extent of such MEMORANDUM TO: THE HONORABLE MAYOR & CITY COUNCIL CITY OF OWASSO FROM: MICHELE DEMPSTER HUMAN RESOURCE DIRECTOR SUBJECT: OMRF DEFINED CONTRIBUTION PLAN AMENDMENT ORDINANCE #951 DATE: October 27, 2009 BACKGROUND: The Oklahoma Municipal Retirement Fund (OMRF) Defined Contribution Plan (Thrift Plan) is a supplemental retirement option available to all full -time employees. Employees may elect to contribute up to 2% of their base wages, and the City will match the employees' contributions $0.50 on the dollar. Employees may also elect to make additional contributions that are not matched by the City. Investment options are selected by the employee. The City Council is the designated Retirement Committee for the City's OMRF retirement plans. Therefore all plan changes and/or modifications must be approved by the City Council. Staff was notified several months ago that OMRF would be updating the Defined Contribution Master Plan and Joinder agreement for our plan. The updates have been approved by the Internal Revenue Service (IRS) and according to IRS regulations must now be formally adopted by the Retirement Committee. The changes are intended to clarify current plan language; more clearly define "compensation," and update language /definitions as required by Internal Revenue Code. The changes will not affect the city or employee's contributions or plan benefits. RECOMMENDATION: Staff recommends approval of Ordinance #951 amending the OMRF Defined Contribution plan Joinder Agreement and Master Plan document. ATTACHMENTS: 1. Summary of Changes 2. Ordinance #951 3. Joinder Agreement 4. OMRF Master Defined Contribution Plan Oklahoma Municipal Retirement Fund Master Defined Contribution Plan and Joinder Agreement Summary of Changes The following summary compares the current version of the Oklahoma Municipal Retirement Fund Master Defined Contribution Plan and Joinder Agreement with the version recently approved by the IRS: A. Master Defined Contribution Plan Feature Current Version Newly-Approved Version I. Compensation Defined generally as total cash Defined generally as wages for federal remuneration paid for personal income tax withholding purposes, as defined services as reported on the under Internal Revenue Code § 3401(a), plus Participant's Form W -2 or its certain other payments. Allows the subsequent equivalent, excluding Employer to modify the definition of extraordinary severance payments, Compensation via the Joinder Agreement. extraordinary special payments, and (Section 2.1(m)) benefits provided under an employer- SEEATTACHED: PLAN CHANGES TO sponsored benefit program. (Section 2.1(k)) DEFINITION OF COMPENSATION 2. Eligibility Defined as an Employee who has Same definition, but now also provides that satisfied the eligibility requirements in a person classified as an independent the Joinder Agreement. (Section 3.1) contractor who is later reclassified as an employee (other than by the Employer) shall not be eligible to participate. (Section 3.1) 3. Deductible If elected in the Joinder Agreement, Provision removed. Definition amended to Participant allowed a Participant (prior to January further clarify that said contributions were Contributions 1, 1987) to voluntarily contribute only allowed prior to January 1, 1987. certain deductible amounts to the Plan. (Section 2.1(n)) (Section 4.4) 4. Catch -Up Not allowed. After December 31, 2001, allows eligible Contributions employees who are age 50 or older to make catch -up contributions. (Section 4.8(b)) 5. Accounting Required the Committee to provide a Amended to provide minimum reporting statement of Participant Accounts requirements. Statement now required at showing the balances at the beginning least annually. (Section 5.8) of the Plan Year, any changes during the Plan Year, and balances at the end of the Plan Year. (Section 5.8) 6. Default Not specified in the Plan. If a Participant does not designate an Investment Investment Option, or if the Employer does not allow self - directed investments, specifies that all Accounts will be invested in the Balanced Fund or such other Investment Option designated by Trustee. (Section 5.12) 7. Withdrawals Noprovision(s). Generally allows for distributions from a 1. from Rollover No options. Rollover Account to a Participant, even if Account the Participant is still employed. (Section 6.16) 8. Transfers of If Participant transferred to another Transfer no longer treated as termination of Employment category with the Employer, and was employment. No longer allowed a no longer eligible for participation, distribution at the time of transfer. (Section transfer was treated as the termination 9.1(a)) of employment and, if eligible, the Participant was entitled to a distribution. (Section 9.1 (a)) 9. Abandonment Allowed the Committee to determine Amended the section to include additional of Benefits that a missing Beneficiary or provisions, including a provision providing distributee had forfeited his right to a that if a lost Participant or Beneficiary later benefit. (Section 10.4) becomes known to the Committee, and makes a claim for benefits, the Committee will reinstate the previously- forfeited benefit. (Section 10.4) 10. Incompetents No provision(s). Allows the Committee to make payments due a person under age or legal disability to certain other persons. (Section 10.5) B. Joinder Agreement Feature Old Version Newly - Approved Version 1. Compensation No options. Allows the Employer to exclude certain items from the definition of Compensation. (Section 4) 2. Valuation Period Allowed the Employer to select the The Employer is no longer allowed to valuation date (annual, semi - annual, select the valuation date. etc.). (Section 8) Exhibit A OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN JOINDER AGREEMENT City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Contribution Plan to be known as the City of Owasso Plan (the "Plan") in the form of the Oklahoma Municipal Retirement Fund Master Defined Contribution Plan. Except as otherwise provided herein, the definitions in Article II of the Plan apply. 1. Dates. [ ] This instrument is a new Plan effective [ X ] This instrument is an amendment, restatement and continuation of the Previous Plan, which was originally effective July 1, 1992. The effective date of this Joinder Agreement is January 1, 2010, except as otherwise stated in the Plan and the Joinder Agreement 2. Employee. The word "Employee" shall mean: [ X ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular full -time employee in accordance with the Employer's standard personnel policies and practices, and is receiving remuneration for such services rendered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular employee in accordance with the Employer's standard personnel policies and practices (including part-time, seasonal and temporary employees), and is receiving remuneration for such services rendered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person who, on or after the Effective Date, . The word "Employee" shall not include: [ ] Any person who is currently accruing benefits under any other state or local retirement system. [ ] Any person who . 3. Entry Date. Eligible Employees shall commence participation in the Plan: (Select only one) [ ] _ months (any number of months up to twelve) after the later of the Employee's Employment Commencement Date or the date the definition of Employee shown above was met. [ X ] On the Employee's Employment Commencement Date. (If the Employer has opted out of Old Age and Disability Insurance (OADI), this option must be elected). 4. Definition of Compensation. Compensation shall exclude the item(s) listed below: [ ] No exclusions. [ X ] Overtime pay. [ X ] Bonuses. [ X ] Commissions. [XI Severance pay. [ X ] Fringe benefits, expense reimbursements, deferred compensation and welfare benefits. [ ] Other:. 5. Plan Design. The Employer hereby elects the following Plan design: [ ] Pick -up Option. Each Employee shall be required to contribute to the Plan % of his or her Compensation. These contributions shall be picked up and assumed by the Employer and paid to the Fund in lieu of contributions by the Participant. No Participant shall have the option of receiving the contributed amounts directly as Compensation. [ X ] Thrift Plan Option. [ X ] A Participant may elect to contribute to the Plan for each Valuation Period an amount which is at least 1 %, but no more than 2.00% of his Compensation ( "Mandatory Contributions "). Mandatory Contributions shall be made by payroll deductions. A Participant shall authorize such deductions in writing on forms approved by, and filed with the Committee. [ X ] The Employer shall contribute to the Fund an amount equal to 50% of the total Mandatory Contributions contributed by Participants. The Employer contribution together with amounts forfeited, if any, shall be allocated in the proportion which the Mandatory Contributions of each such Participant for such Valuation Period bear to the total Mandatory Contributions contributed by all such Participants for such Valuation Period. [ ] The Employer shall not contribute to the Fund a percentage of the total Mandatory Contributions contributed by Participants. [ ] Fixed Contribution. The Employer shall contribute to the Fund an amount which when added to amounts available from Amounts Forfeited in prior periods, if any, shall equal % of the total covered Compensation of all Participants for the Valuation Period. The Employer contribution together with amounts available from Amounts Forfeited in prior periods shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] Variable Funding Option. [ ] The Employer intends to make a contribution to the Plan for the benefit of the Participants for each Valuation Period. The contribution may be varied from year to year by the Employer. (Select one option below) [ ] Option A: The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion that each such Participant's total points awarded bear to the total points awarded to all Participants with respect to such year. A Participant shall be awarded one point for each Year of Service. [ ] Option B: The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] Option C: A combination of Options A and B in the following ratios: % for Option A, and % for Option B. [ ] 401(k) Funding Option, (This Option available only if elected prior to May 1, 1986) [ ] Participant Deferral Elections shall be allowed under the provisions of Section 4.9 of the Plan. Participants shall be allowed to defer no more than % of their Compensation for each election period. The election period shall be the one month period preceding each [ ] Valuation Period [ ] calendar quarter of the Valuation Period. [ ] Section 4.9(c) of the Plan ("Roth Elective Deferrals ") shall apply to contributions after (enter a date later than January 1, 2006), and the Plan will accept a direct rollover from another Roth elective deferral account under an applicable retirement plan as described in Code Section 402A(e)(1). [ ] No Employer Contribution Option. Exhibit A - Paee 2 6. Other Participant Contribution Options. [ X ] Voluntary Nondeductible Contributions by Participants shall be allowed under the provisions of Section 4.5 of the Plan. [ ] A Participant may not withdraw Voluntary Nondeductible Contributions. [ ] Participants shall not contribute to the Plan. 7. Self- Directed Investments. [ X ] Are permitted. [ ] Are not permitted. 8. Allocation of Forfeitures Available. [ ] Shall be added to Employer contribution. [XI Shall reduce the Employer contribution. 9. Service for Worker's Compensation Period. If a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during such Authorized Leave of Absence, such Participant [ X ] shall be credited with Service for such period for purposes of vesting only and not for purposes of allocations of Employer Contributions. [ ] shall not be credited with Service for such period. 10. Vesting. For purposes of vesting under Section 6.4 of the Plan, the Employer hereby elects the following Option: (] Option A [ ] Option B Vested Forfeited Vested Forfeited Years of Service Percentage Percentage Years of Service Percentage Percentage less than 1 0% 100% Less than 3 0% 1000/0 at least I but less than 2 10% 90% at least 3 but less than 4 20% 80% at least 2 but less than 3 20% 80% at least 4 but less than 5 40% 60% at least 3 but less than 4 30% 70% at least 5 but less than 6 60% 40% at least 4 but less than 5 40% 60% at least 6 but less than 7 80% 20% at least 5 but less than 6 50% 50% 7 or more 100% 0% at least 6 but less than 7 60% 40% at least 7 but less than 8 70% 30% at least 8 but less than 9 80% 20% at least 9 but less than 10 90% 10% 10 or more 100% 0% [ ] Option C [ X ] Option D Vested Forfeited Vested Forfeited Years of Service Percentage Percentage Years of Service Percentage Percentage less than 5 0% 100% less than 1 0% 100% at least 5 but less than 6 50% 50% at least I but less than 2 0% 100% at least 6 but less than 7 60% 40% at least 2 but less than 3 40% 60% at least 7 but less than 8 70% 30% at least 3 but less than 4 60% 40% at least 8 but less than 9 80% 20% at least 4 but less than 5 80% 20% at least 9 but less than 10 90% 10% 5 or more 100% 0% 10 or more 100% 0% (] Option E To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code Section 312 1 (b)(7)(F), Participants who are part-time, seasonal or temporary Employees will have immediate vesting. (If this Option E is elected, one of the other Options above must also be elected for Participants who are not part-time, seasonal or temporary Employees). Exhibit A - Page 3 11. Participant Loans. [ X ] Participant loans shall be offered pursuant to Section 6.14 of the Plan. [ ] Participant loans shall not be offered. 12. The Employer has consulted with and been advised by its attorney concerning the meaning of the provisions of the Plan and the effect of entry into the Plan. IN WITNESS WHEREOF City of Owasso has caused its corporate seal to be affixed hereto and this instrument to be duly executed in its name and behalf by its duly authorized officers this 3rd day of November 20 9 Attest: t OF O9 Citv Clerk 01":� s0 (SEAL) SEAL kI AHOO' City of wasso B: 2 Y 13. The foregoing Joinder Agreement is hereby approved by the Oklahoma Municipal Retirement Fund this day of Attest: Secretary (SEAL) OKLAHOMA MUNICIPAL RETIREMENT FUND Exhibit A - Page 4 Exhibit B OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN TABLE OF CONTENTS Page ARTICLE I. PURPOSE AND ORGANIZATION ............................................ ............................... i 1.1 Purpose ....................................................................................................... ............................... 1 1.2 Parties .......................................................................................................... ..............................1 ARTICLE II. DEFINITIONS AND CONSTRUCTION ............................................. . ........ .. ..... II -1 2.1 Definitions ...................................................... ............................... (a) Account ............................................. ............................... (b) Adjustment Factor ........................... ............................... (c) Amount(s) Forfeited ......................... ............................... (d) Authorized Agent ............................. ............................... (e) Authorized Leave of Absence ......... ............................... (f) Beneficiary ........................................ ............................... (g) Break in Service ............................... ............................... (h) Catch -Up Contributions .................. ............................... (i) Catch -Up Contribution Account .... ............................... U) City Council ...................................... ............................... (k) Code .................................................... ............................... (1) Committee .......................................... ............................... (m) Compensation .................................... ............................... (n) Deductible Participant Contribution ............................. (o) Deferred Compensation Contributions .......................... (p) Effective Date .................................... .....:......................... (4) Employer ............................................ ............................... (r) Employment Commencement Date . ............................... (s) Entry Date ......................................... ............................... (t) Forfeiture ........................................... .........4..................... (u) Fund ................................................... ............................... (v) Investment Manager ......................... ............................... (w) Investment Options ........................... ............................... (x) Joinder Agreement ............................ ............................... (y) Leased Employee ............................... ............................... Y (z) LmntaWn ear ....................................... ............................... (aa) Loan Account .......................................... ............................... (bb) Mandatory Contributions ...................... ............................... (cc) Municipality ............................................ ............................... (dd) Municipality Contribution Account ...... ............................... (ee) Normal Retirement Date ........................ ............................... (fo Oklahoma Municipal Retirement Fund ............................... (gg) Participant ............................................... ............................... (hh) Participant Contribution Accounts ....... ............................... (ii) Participant Deductible Contribution Account ..................... ..... .............................II 1 ... ............................... II 1 ... ............................... II -1 ... ............................... II -1 ... ....I .......................... II -1 ............. I.................... II -I ..... .............................II 1 ..... .............................II 1 ... ............................... II -2 ... ............................... II -2 ... ............................... II -2 ... .I ............................. II -2 .............. I................... II -2 ... ............................... II -2 ... ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... II -3 .. ............................... 11-3 .. ............................... II -4 .. ............................... 11-4 .. ............................... II -4 .. ............................... II -4 .. ............................... II -4 .. ............................... II -4 .. ............................... II -4 .. ............................... II -4 . ............................... II -4 . ..........I .................... II -5 . ............................... II -5 . ............................... 1I -5 . ............................... II -5 5.10 Special Valuation Date .............................................................................. ............................V -2 5.11 Maximum Annual Additions .............................................. ................................................... V -2 5.12 Investment Options ................................................................................. ............................... V -3 ARTICLEVI. BENEFITS ............................................................................. ............................... VI -1 6.1 Retirement or Disability ............................................................................ ...........................VI -1 6.2 Deferred Retirement ..................................... ........................................................................ VI -I 6.3 Death of a Participant ......... .................................................................................................. VI -1 6.4 Termination for Other Reasons - Vested Percentage ................................ ...........................VI -1 6.5 Initial Distribution Date ............................................................................. ...........................Vl -1 6.6 Determination of Amounts Forfeited ........................................................ ...........................VI -I 6.7 Participant Contribution Accounts ............................................................ ...........................VI -1 6.8 Withdrawals From Participant's Contribution Accounts ......................... ............................VIA 6.9 Withdrawals from Participant's Mandatory Contribution Account .......... ...........................VI -2 6.10 Methods of Distribution ............................................................................ ...........................VI -2 6.11 Designation of Beneficiary ........................................................................ ...........................VI -3 6.12 Loss of Benefits for Cause ........................................................................ ...........................VI -3 6.13 Payments Under a Qualified Domestic Relations Order ........................... ...........................VI -3 6.14 Loans to Participants ........... ................................................................................................. VI -5 (a) General: .................................................................................................................... VI-5 (b) Establishment of Loan Account .................................................... ...........................VI -6 (c) Foreclosure of Loan Account ........................................................ ...........................VI -6 (d) Special Restrictions on Foreclosure ................................. ........................................ VI -6 (e) Establishment of Loan Program .................................................... ...........................VI -6 (fl Loan Account ................................................................................ ...........................VI -7 6.15 Required Minimum Distributions ............................................................. ...........................VI -7 (a) Coordination with Minimum Distribution Requirements Previously in Effect....... VI -7 (b) Time and Manner of Distribution: ........................................................................... VI-7 (c) Required Minimum Distributions During Participant's Lifetime: ........................... VI-8 (d) Required Minimum Distributions After Participant's Death: .................................. VI-9 (e) Definitions: ................................................................................ ........................... VI-10 6.16 Withdrawals from Participant Rollover Account ..................................... ..........................VI -10 ARTICLEVII. NOTICES ............................................................................ ............................... VII -1 7.1 Notice to Oklahoma Municipal Retirement Fund ............................... ............................... VII -1 7.2 Subsequent Notices .............................................................................. ............................... VII -1 7.3 Copy of Notice .................................................................................... ............................... VII -I 7.4 Reliance Upon Notice ......................................................................... ............................... VII -1 ARTICLE VIII. AMENDMENT AND TERMINATION ........................ ............................... VIII -1 8.1 Termination of Plan ................................................... ............................... .........................VIII -I 8.2 Suspension and Discontinuance of Contributions .............................. ............................... VIII -1 8.3 Liquidation of Trust Fund .................................................................. ............................... VIII -1 8.4 Amendments ....................................................................................... ............................... VIII -I 8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers............ VIII -2 ARTICLE 1. Purpose and Organization 1.1 Purpose: The purpose of this Plan is to encourage the loyalty and continuity of service of the Participants, to provide retirement benefits for all eligible Employees of the Employer, as hereinafter defined, who complete a period of faithful service and become eligible hereunder, and to qualify the Plan under section 401(a) and 501(a) of the Code. The benefits provided by this Plan will be paid from a Fund established by the Employer and will be in addition to the benefits Employees are entitled to receive under any other programs of the Employer and from the Federal Social Security Act. This Plan and the separate related Fund forming a part hereof are established and shall be maintained for the exclusive benefit of the eligible Employees of the Employer and their beneficiaries. 1.2 Parties: The Oklahoma Municipal Retirement Fund hereby adopts and establishes this Plan for the benefit of Employees of those Employers, as defined herein, formed, chartered or incorporated under the laws of the State of Oklahoma, who wish to adopt it by executing a Joinder Agreement which incorporates this Plan by reference. a forfeiture unless the Participant was covered under a state retirement system or any other program outside the Oklahoma Municipal Retirement Fund System. (h) Catch -Up Contributions: A Participant's contributions described in Section 4.8(b) herein. (i) Catch -Up Contribution Account: The Account maintained for a Participant in which any Catch -Up Contributions are recorded. Q) City Council: The City Council or Board of Trustees of the Employer or other duly qualified and acting governing authority of the Employer. (k) Code: The Internal Revenue Code of 1986, as amended from time to time. (1) Committee: The City Council of the Municipality, which shall act as the Plan Administrator of the Plan as provided for under Article X hereof. (m) Compensation: Compensation means wages for federal income tax withholding purposes, as defined under Code §3401(a), plus all other payments to an Employee in the course of the Employer's trade or business, for which the Employer must famish the Employee a written statement under Code § §6041, 6051 and 6052, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or services performed (such as the exception for agricultural labor in Code §3401(a)(2)). The Employer in its Joinder Agreement may specify modifications to the definition of Compensation, for purposes of contribution allocations under the Plan. For purposes of determining a Participant's compensation, any election by such Participant to reduce his regular cash remuneration under Code Sections 125, 401(k), 414(h), 403(b) or 457 shall be disregarded. (1) Limitations. Notwithstanding anything herein to the contrary, for Plan Years commencing after December 31, 1988 and before January 1, 1994, the annual Compensation of each Participant taken into account wider the Plan for any Plan Year shall not exceed $200,000, as adjusted by the Secretary of the Treasury at the same time and in the same manner as under Section 415(d) of the Code. In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, for Plan Years beginning on or after January 1, 1994, the annual Compensation of each employee taken into account under the Plan shall not exceed the Omnibus Budget Reconciliation Act of 1993 ( "OBRA '93 ") annual compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. The cost -of- living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. The annual compensation of each Participant taken into account in determining allocations for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted for cost -of- living increases in accordance with Section 401(a)(17)(B) of the Code. Annual compensation means compensation during the Plan Year or such other consecutive II -2 (w) Investment Options: Any of those investment options selected by the Committee in accordance with Section 5.12 hereof. (x) Joinder Agreement: The agreement by which the Employer adopts this Plan and Fund as its Plan and Fund. (y) Leased Employee: Any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ( "leasing organization ") has performed services for the recipient (or for the recipient and related persons determined in accordance with Section 414(n)(6) of the Code) on a substantially full time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient. Contributions or benefits provided a leased employee by the leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A leased employee shall not be considered an employee of the recipient if: (I) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least 10% of compensation, as defined in section 415(c)(3) of the Code, but including amounts contributed pursuant to a salary reduction agreement which are excludable from the employee's gross income under section 125, section 402(e)(3), section 402(h)(1)(B) or section 403(b) of the Code, (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than 20% of the recipient's nonhighly compensated work force. (z) Limitation Year: The twelve (12) consecutive month period ending on June 30th of each year. If the Limitation Year is amended to a different twelve (12) consecutive month period, the new Limitation Year must begin on a date within the Limitation Year in which the amendment is made. (aa) Loan Account: A Participant's Separate Account established in the event he desires to make a loan from his applicable Account as provided in Section 6.14 herein. (bb) Mandatory Contributions: Contributions, if elected by the Employer in the Joinder Agreement, which Participants are required to make in order to participate in the Plan. (cc) Municipality: (1) each and every incorporated municipality in the State of Oklahoma; (2) public trusts having municipalities as a beneficiaries; (3) interlocal cooperatives created pursuant to 74 Oklahoma Statutes, Sections 1001, et seq., between municipalities and /or their public trust, and; (4) any other legal entity comprising a municipal authority as that term is used in Chapter 48 of Title 11 Oklahoma statutes, which has adopted the Plan and/or which has become a participant in the related trust according to the terms herein. (dd) Municipality Contribution Account: The account maintained for a Participant in which his share of the contributions of the Employer and the Amounts Forfeited and any adjustments relating thereto are recorded. (ee) Normal Retirement Date: The first day of the month occurring on or next . following the date a Participant attains sixty -five (65) years of age. TT-4 (ii) Service for the Employer does not include employment with any Municipality if that service would not be included under the Municipality's Plan. (2) Concurrent employment with more than one Municipality shall be credited as only one period of service. (3) Any Authorized Leave of Absence shall not be considered as interrupting continuity of employment, provided the Employee returns within the period of authorized absence. Until such time as the City Council shall adopt rules to the contrary, credit for Service with the Employer shall be granted for any period of Authorized Leave of Absence during which the Employee's full Compensation is continued and contributions to the Fund are continued at the same rate and made by or for him, but credit for Service with the Employer shall not be granted for any period of authorized, nonpaid absence due to illness, union leave, military service, or any other reason, unless arrangements are made with the City Council for the Employee's continued participation and for contributions to be continued at the same rate and made by him or on his behalf during such absence. Provided, however, if a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during such Authorized Leave of Absence, and if the Employer so elects in the Joinder Agreement, such Participant shall be credited with Service for such period for purposes of vesting only (and not for purposes of allocation of Employer Contributions). (4) The expiration of the term of office of an elected official shall not be considered as interrupting continuity of employment, provided the official is re- elected for a consecutive term. (5) Any reference in this Plan to the number of years of Service of a Participant shall include fractional portions of a year. (6) With respect to a Participant who was previously 100% vested in any other Municipality's qualified retirement plan prior to becoming a Participant in this Plan, such Participant's "Service" for purposes of determining years of service for vesting under this Plan shall include the Participant's last continuous period during which the Participant was an employee of the other Municipality. (qq) Pick -Up Contributions: The Employer's contributions described in Section 4.7 hereof and credited to his Pick -Up Contribution Account. (rr) Pick -Up Contributions Account: The account maintained for a Participant in which his share of Pick -Up Contributions are recorded. (ss) Plan: The Oklahoma Municipal Retirement Fund Master Defined Contribution Plan set forth herein, and all subsequent amendments. (tt) Plan Administrator: The persons who administer the Plan pursuant to the provisions of Article X hereof. I1-6 ARTICLE III. Eligibility and Participation 3.1 Eligibility: An Employee, as defined in the Joinder Agreement, who has satisfied all the requirements set forth in the Joinder Agreement shall be eligible to participate in the Plan. Any person who has been classified by the Employer as an independent contractor and has had his compensation reported to the Internal Revenue Service on Form 1099 but who has been reclassified as an "employee" (other than by the Employer) shall not be considered as an eligible Employee who can participate under this Plan; provided, if the Employer does reclassify such worker as an "Employee," for purposes of this Plan, such reclassification shall only be prospective from the date that the Employee is notified by the Employer of such reclassification. 3.2 Entry Date: The participation of an Employee eligible to become a Participant shall commence on the earliest date permitted by the Employer in the Joinder Agreement. 3.3 Re- employment of Former Participants: Subject to Section 3.4, if a Participant incurs a Break in Service and is subsequently re- employed by the Employer, the Participant shall not receive any credit for his previous Period of Service with the Employer and such Participant shall be treated in the same manner as a person who has not previously been employed by any Municipality. 3.4 Re- employment of Retired or Fully Vested Participants: If a retired or fully vested Participant is re- employed by the Employer, no distributions shall be made from the Plan during the period of such re- employment. Periods of Service prior to such Participant's retirement or termination of service, as applicable, shall count as Periods of Service for purposes of determining such Participant's vested interest in his Municipality Contribution Account. III -] The Participant must furnish the Committee at the time of any Participant Contribution or payroll deduction authorization an election designating the contribution as a Mandatory Contribution, Deductible Participant Contribution, or a Voluntary Nondeductible Contribution. 4.6 Participant Contributions Nonforfeitable: Each Participant who contributes hereunder shall have a nonforfeitable vested interest in that portion of the value of his own contributions not theretofore previously withdrawn by him. 4.7 Pick -up Contributions: If the Employer elects in the Joinder Agreement, all Participants shall be required as a condition of employment to make the contributions specified in the Joinder Agreement. These contributions shall be picked up and assumed by the Employer and paid to the Fund in lieu of contributions by the Participant. Such contributions shall be designated as Employer contributions for federal income tax purposes. Each Participant's Compensation will be reduced by the amount paid to the Fund by the Employer in lieu of the required contribution by the Participant. These contributions shall be excluded from the Participant's gross income for federal income tax purposes and from wages for purposes of withholding under Sections 3401 through 3404 of the Code in the taxable year in which contributed. No Participant shall have the option of receiving the contributed amounts directly as Compensation. Contributions made by the Employer under this election shall be designated as Participant contributions for purposes of vesting, determining Participant rights and Participant Compensation. (In order for the Employer to have reliance on whether the Pick -Up Contributions comply with Section 414(h)(2) of the Code, the Employer must obtain a private letter ruling from the Internal Revenue Service.] 4.8 Deferred Compensation Contributions: If the Employer elects in the Joinder Agreement and if such Employer adopted a cash or deferred feature before May 7, 1986, the following provisions shall apply: (a) Deferred Compensation Contributions Under Code Section 401(k): A Participant, by written notice to the Plan Administrator during the time period set forth in the Joinder Agreement, may elect to make a Deferred Compensation Contribution to the Plan rather than receive Compensation to which the Participant would otherwise be entitled during the period immediately following such election. Subject to the limitations of this Section 4.8 and Section 5.11, a Participant's Deferred Compensation Contribution may be any whole percentage of his Compensation, but in no case shall a Participant's Deferred Compensation Contribution election exceed the percentage set forth in the Joinder Agreement. Such election shall be binding until the Participant, by written notice to the Plan Administrator, modifies or discontinues his Deferred Compensation Contribution. Such modification or discontinuance shall be effective at the beginning of the Plan Year immediately following the Plan Administrator's receipt of the Participant's written notice of modification or discontinuance. Employer contributions made pursuant to this Section 4.8 shall be credited to the Participant's Participant Deferred Compensation Account. All such Employer contributions shall be paid to the Trustee as soon as practicable following the retention of such amounts by the Employer from the Participant's Compensation. IV -2 (3) Gains, losses, and other credits or charges must be separately allocated on a reasonable and consistent basis to each Participant's Roth elective deferral account and the Participant's other accounts under the Plan. (4) No contributions other than Roth elective deferrals and properly attributable earnings will be credited to each Participant's Roth elective deferral account. (iii) Direct Rollovers. (1) Notwithstanding Section 9.5, a direct rollover of a distribution from a Roth elective deferral account under the Plan will only be made to another Roth elective deferral account under an applicable retirement plan described in § 402A(e)(1) or to a Roth IRA described in Code Section 408A, and only to the extent the rollover is permitted under the rules of Code Section 402(c). (2) Notwithstanding Section 9.5, if elected by the Employer in the Joinder Agreement, the Plan will accept a rollover contribution to a Roth elective deferral account only if it is a direct rollover from another Roth elective deferral account under an applicable retirement plan described in Code Section 402A(e)(1) and only to the extent the rollover is permitted under the riles of Code Section 402(c). (3) The Plan will not provide for a direct rollover (including an automatic rollover) for distributions from a Participant's Roth elective deferral account if the amount of the distributions that are eligible rollover distributions are reasonably expected to total less than $200 during a year. In addition, any distribution from a Participant's Roth elective deferral account is not taken into account in determining whether distributions from a Participant's other accounts are reasonably expected to total less than $200 during a year. However, eligible rollover distributions from a Participant's Roth elective deferral account are taken into account in determining whether the total amount of the Participant's account balances under the Plan exceeds $1,000 for purposes of mandatory distributions from the plan. (iv) Definition. (1) Roth Elective Deferrals. A Roth elective deferral is an elective deferral that is: a. Designated irrevocably by the Participant at the time of the cash or deferred election as a Roth elective deferral that is being made in lieu of all or a portion of the pre -tax elective deferrals the Participant is otherwise eligible to make under the plan; and b. Treated by the Employer as includible in the Participant's income at the time the Participant would have received that amount in cash if the Participant had not made a cash or deferred election. 1V -4 5.7 Accounting for Participants' Contributions: Contributions by or on behalf of each Participant shall be credited to his Participant Nondeductible Contribution Account, Participant Mandatory Contribution Account, Participant Deductible Contribution Account, Catch -Up Contribution Account or Participant Deferred Compensation Contribution Account as deposited with the Trustee. 5.8 Accounting for Statement of Account: As soon as is administratively feasible, the Committee shall present to each Participant a statement of such Participant's Accounts, at least annually, showing the balances at the beginning of the reported period, any changes during the reported period, the balances at the end of the reported period, and such other information as the Committee may determine. However, neither the maintenance of accounts, the allocations to Accounts, nor the statements of account shall operate to vest in any Participant any right or interest in or to the Fund except as the Plan specifically provides herein. 5.9 Time of Adjustment: Each adjustment required by this Article V shall be deemed to have been made at the times specified in this Article V, regardless of the dates of actual entries or receipts by the Trustee of contributions for such Plan Year. 5.10 Special Valuation Date: If the Committee determines that a substantial change in the value of any Investment Fund has occurred since the last Valuation Date, the Committee may, prior to the next Valuation Date, establish one or more Special Valuation Dates and determine the adjustment required to make the total net credit balance in the Accounts of the then Participants equal to the then market value of the total assets of the Fund. Such adjustments shall be made consistent with the procedure specified in section 5.5. Having determined such adjustment, all distributions which are to be made as of or after such special Valuation Date, but prior to the next succeeding Valuation Date or Special Valuation Date, shall be made as if the net credit balances in all Accounts had actually been credited or debited to reflect the adjustment provided by this Section. 5.11 Maximum Annual Additions: This Section shall be effective as of the first day of the first Plan Year beginning after December 31, 2001 unless otherwise stated. Except to the extent permitted under Section 4.8(b) of this Plan and Section 414(v) of the Code, if applicable, the Annual Addition that may be contributed or allocated to a Participant's Account under the Plan for any limitation year shall not exceed the lesser of: (a) $40,000, as adjusted for increases in the cost -of- living under Section 415(d) of the Code, or (b) 100% of the Participant's Compensation, within the meaning of Section 2.1(m) of the Plan and Section 415(c)(3) of the Code, for the limitation year. The compensation limit referred to in (b) shall not apply to any contribution for medical benefits after separation from service (within the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an annual addition. When such Annual Additions, if made, would exceed the limitation, and such excess annual additions were the result from contributions based on estimated annual compensation, the allocation of forfeitures, or a reasonable error in determining the amount of elective deferrals V -2 ARTICLE VI. Benefits 6.1 Retirement or Disability: If a Participant's employment with the Employer is terminated when he attains age sixty -five (65), or if a Participant's employment is terminated at an earlier age as the result of a Total and Permanent Disability, he shall be entitled to receive the entire amount of his Municipality Contribution Account. 6.2 Deferred Retirement: If a Participant, with the consent of the Employer, shall continue in active employment following his Normal Retirement Date, he shall continue to participate under the Plan. Upon actual retirement, such Participant shall be entitled to receive the entire amount of his Municipality Contribution Account as of his actual retirement date. 6.3 Death of a Participant: Upon the death of a Participant, his Beneficiary shall be entitled to receive the entire amount of his Municipality Contribution Account and Participant Contribution Accounts as of the date of his death. 6.4 Termination for Other Reasons - Vested Percentage: If a Participant's employment with the Employer is terminated before his Normal Retirement Date for any reason other than Total and Permanent Disability or death, except as provided in Section 6.12 hereof, he shall be entitled to an amount equal to the vested percentage of his Municipality Contribution Account. Such vested percentage shall be determined as of the date of termination in accordance with the election of the Employer in the Joinder Agreement. 6.5 Initial Distribution Date: The date of initial distribution ( "Initial Distribution Date ") of a Participant whose employment is terminated shall be the first day of the month next following his termination of employment and he shall be entitled to the vested percentage of his Accounts on such Initial Distribution Date payable in accordance with the provisions of Section 6.10. The portion of the Employer's contribution, the Amounts Forfeited or the periodic adjustment which is allocated to a Participant terminated for the reasons specified in this Section 6.5 after such Initial Distribution Date shall be payable in accordance with the method utilized under Section 6.10 as soon as practicable. 6.6 Determination of Amounts Forfeited: Upon a distribution pursuant to Section 6.4 or if the Participant incurs a Break in Service, the forfeited percentage of a Participant's Municipality Contribution Account, if any, shall be deducted from the Participant's Account. Such Amounts Forfeited shall become available for allocation in accordance with Item 8 of the Joinder Agreement as of the end of the calendar quarter following the Valuation Period in which the terminated Participant forfeited such amounts. 6.7 Participant Contribution Accounts: A Participant shall' be fully vested in his Participant Contribution Accounts at all times. A Participant's Contribution Account balances shall be paid to him in connection with the distribution to him of the vested portion of his Municipality Contribution Account on or after his Initial Distribution Date. Such distributions shall be made in accordance with Section 6.10 and Section 6.8. 6.8 Withdrawals From Participant's Contribution Accounts: In accordance with the provisions hereof, a Participant may withdraw all or any part of his Participant Contribution VI -1 (c) an installment distribution consisting of approximately equal installments for a term not extending beyond the joint life expectancy (as calculated in accordance with Income Tax Regulation section 1.72 -9) on the Initial Distribution Date of the Participant and his spouse; or (d) periodic distributions as designated by the Participant or Beneficiary. Commencement of payments under the method of distribution selected shall be as of the initial Distribution Date of the Participant, provided that for administrative convenience, such commencement may be delayed as reasonably necessary but in no event for more than sixty (60) days after a reasonable time for all administrative calculations, allocations and accounting operations necessary to determine the amount of the distribution. The Committee, in its sole discretion, may accelerate the payment of any unpaid installments. If a former Participant receiving installment payments dies prior to the receipt by him of the full amount to be paid to him from his Participant Accounts, the remaining installments shall be paid to his Beneficiary. Under no circumstance may a method of payment be elected that would be expected to cause more than fifty percent (50 %) of the present value of any series of payments to go to a person other than the Participant. 6.11 Designation of Beneficiary: Each Participant shall designate his Beneficiary on a form provided by the Committee and such designation may include primary and contingent Beneficiaries. If Participant designates more than one Beneficiary, each shall share equally unless the Participant specifies a different allocation. The designation may be changed at any time by filing a new form with the Committee. In the absence of such written designation, the surviving spouse, if any, of the Participant shall be deemed to be the designated Beneficiary, and otherwise the estate of such Participant. In all events, the date of determination of a Participant's Beneficiary shall be the date of death of a Participant. Production of a certified copy of the death certificate of any Participant or other persons shall be sufficient evidence of death, and the Committee shall be fully protected in relying thereon. 6.12 Loss of Benefits for Cause: In the event a Participant is discharged because of embezzlement, fraud, dishonesty, or misappropriation of the Employer's property, and the reasons for such discharge are confirmed by resolution of the City Council after such Participant is afforded an opportunity to be heard, neither he, nor his Beneficiary, shall be entitled to receive any benefit hereunder, other than his Participant Contribution Accounts and Participant Rollover Account, as of the date of his discharge, regardless of his age and service on the date of his discharge. Likewise, such benefits to which any retired Participant or his Beneficiary, or the Beneficiary of a deceased Participant would otherwise be entitled under this Plan, shall be forfeited upon discovery, even after termination of employment or death, of any such embezzlement, fraud, dishonesty, or misappropriation of the Employer's property, by the Participant against the Employer. 6.13 Payments Under a Qualified Domestic Relations Order: (a) The Municipality shall follow the terms of any "Qualified Domestic Relations Order" as defined in Subsection (b) below issued with respect to a Participant where such Qualified Domestic Relations Order grants to an "Alternate Payee" rights in the benefit of the Participant. Vl -_ certified order issued by the Court that originally issued said Qualified Domestic Relations Order declaring the remarriage of said Alternate Payee. (i) This Section of the Plan shall not be subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. Section 1001, et seq., as amended from time to time, or rules and regulations promulgated thereunder, and court cases interpreting said Act. (j) The Board of Trustees of the Oklahoma Municipal Retirement Fund shall promulgate such rules as are necessary to implement the provisions of this Section. (k) An Alternate Payee who has acquired beneficiary rights pursuant to a valid Qualified Domestic Relations Order must fully comply with all provisions of the rules promulgated by the Trustees pursuant to this Section in order to continue receiving his or her benefits. p) Nothing in this Section shall grant a spouse or former spouse of a Participant any property rights in the benefits of any Participant except as specifically authorized for Qualified Domestic Relations Orders, and no spousal consent shall be required for a Participant to elect or change elections pertaining to a benefit payable under this Plan. 6.14 Loans to Participants: (a) General: The Committee, in its sole discretion, may direct Trustees to make loans to Participants upon the written direction and application of the Participant who desires to effect such loan, up to 50% of the vested balance of a Participant's Accounts. All such loans (i) shall riot be made available to Highly Compensated Employees (as defined in Section 414(q) of the Code) in an amount greater than the amount made available to other Employees, (ii) shall be available to all Participants on a nondiscriminatory basis, (iii) shall be made available in an amount equal to the lesser of 50% of the borrowing Participant's vested Benefit in his Account or $50,000, (iv) shall bear a reasonable rate of interest which will be established by the Committee, (v) shall be secured by the borrowing Participant's Benefit account balance attributable to his Account, (vi) shall be amortized and repaid in level payments of principal and interest made not less frequently than monthly over the term of the loan, (vii) shall be repaid by payroll reduction while the Participant is employed; (viii) shall accelerate and be due in full on the date a Participant terminates employment with the Employer; (ix) shall not be less than $1,000 in amount each; and (x) shall be made upon such other reasonable terms which the Committee shall designate, such terms being applied in a nondiscriminatory fashion; provided, in no event shall any loan have a term in excess of five years. There shall not be more than one loan outstanding at any time with respect to a Participant. No Participant who has borrowed from the Plan may make another loan until the previous loan has been fully repaid. , Outstanding loans are not subject to refinancing by a new loan. Upon direction by the Committee, and subject to Subsection (c) below, the Trustees may foreclose upon such Participant's interest in his Account in the event of default. A loan to a Participant, when added to the outstanding balance of all other loans to the Participant from the Plan and other plans sponsored by the Employer, cannot exceed $50,000, reduced by the excess of the highest outstanding balance of loans from the Plan (and all other plans sponsored by the Employer) during the one -year period ending on the day before the date the loan is made over the outstanding balance of the loans from VI -5 (1) Loan Account: The words "Loan Account" shall mean a Participant's separate .Account established in the event he desires to make a loan from his applicable Account as provided in this Section 6.14. 6.15 Required Minimum Distributions: The provisions of this Section 6.15 will apply for purposes of determining Required Minimum Distributions for distribution calendar years beginning with the 2003 calendar year, as well as Required Minimum Distributions for the 2002 Distribution Calendar Years that are made on or after August 1, 2002. The requirements of this Section will take precedence over any inconsistent provisions of the Plan. All distributions required under this Section will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code. Notwithstanding the other provisions of this Section, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA. (a) Coordination with Minimum Distribution Requirements Previously in Effect: If this Section specifies an effective date that is earlier than calendar years beginning with the 2003 calendar year, Required Minimum Distributions for 2002 under this Section will be determined as follows. If the total amount of 2002 Required Minimum Distributions under the Plan made to the distributee prior to the effective date of this Section equals or exceeds the Required Minimum Distributions determined under this Section, then no additional distributions will be required to be made for 2002 on or after such date to the distributee. If the total amount of 2002 Required Minimum Distributions under the Plan made to the distributee prior to the effective date of this Section is less than the amount determined under this Section, then Required Minimum Distributions for 2002 on and after such date will be determined so that the total amount of Required Minimum Distributions for 2002 made to the distributee will be the amount determined under this Section. (b) Time and Manner of Distribution: (i) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's Required Beginning Date. For purposes of this Section, the "Required Beginning Date" of a Participant is the April 1 of the calendar year following the calendar year in which the Participant attains age 70%2 or retires. (ii) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (1) If the Participant's surviving spouse is the Participant's sole designated Beneficiary, then, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70'/2, if later. VI -7 (ii) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this Subsection (c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death. (d) Required Minimum Distributions After Participant's Death: (i) Death On or After Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated Beneficiary, determined as follows: a. The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. b. If the Participant's surviving spouse is the Participant's sole designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year. C. If the Participant's surviving spouse is not the Participant's sole designated Beneficiary, the designated Beneficiary's remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (2) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated Beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (ii) Death Before Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the remaining life expectancy of the Participant's designated Beneficiary, determined as provided in Subsection (i). VI-9 ARTICLE VII. Notices 7.1 Notice to Oklahoma Municipal Retirement Fund: As soon as practicable after a Participant ceases to be in the employ of the Employer, the Committee shall give written notice to the Oklahoma Municipal Retirement Fund. The notice shall include such of the following information and directions as are necessary or advisable under circumstances: (a) name and address of the Participant; (b) reason he ceased to be in the Employer's employ; (c) name and address of the Beneficiary or Beneficiaries in case of Participant's death; (d) percentage or amount to which such Participant is entitled in case of termination of employment; (e) time, manner and amount of payments to be made to such Participant; and (f) information required to complete the Trustee's Withholding Election Form. As soon as practicable after the Committee learns of the death of a Participant, it shall give like notice to the Oklahoma Municipal Retirement Fund. 7.2 Subsequent Notices: At any time and from time to time after giving the notice as provided for in Section 7.1, the Committee may modify such original notice or any subsequent notice by means of a further written notice or notices to the Oklahoma Municipal Retirement Fund, but any action taken or payments made by the Oklahoma Municipal Retirement Fund pursuant to a prior notice shall not be affected by a subsequent notice. 7.3 Copy of Notice: A copy of each notice provided for in Sections 7.1 and 7.2 shall be mailed by the Committee to the Participant or to each Beneficiary involved, as the case may be, but if, for any reason, such copy is not sent or received, that fact shall not affect the validity of any notice to the Oklahoma Municipal Retirement Fund nor the validity of any action taken or payment made pursuant thereto. 7.4 Reliance Upon Notice: Upon receipt of any notice as provided in this Article VII, the Oklahoma Municipal Retirement Fund shall promptly take whatever action and make whatever payments are called for therein, it being intended that the Oklahoma Municipal Retirement Fund may rely upon the information and directions in such notice absolutely and without question. However, the Oklahoma Municipal Retirement Fund may call to the attention of the Committee any error or oversight which the Oklahoma Municipal Retirement Fund believes to exist in any notice. V11 -1 Plan in any respect and at any time, subject to the limitations of the Plan, by amendment of or addition to the Joinder Agreement. However, the Oklahoma Municipal Retirement Fund reserves the right to approve all Employer amendments. 8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers: The effective date of this Section is the date of the IRS advisory letter. The Volume Submitter Practitioner (the "Practitioner ") will amend the Plan on behalf of all adopting employers, including those employers who have adopted the Plan prior to this amended and restated Plan, for changes in the Code, regulations, revenue rulings, other statements published by the Internal Revenue Service, including model, sample or other required good faith amendments, but only if their adoption will not cause the Plan to be individually designed, and for corrections of prior approved plans. These amendments will be applied to all employers who have adopted the Plan. The Practitioner will no longer have the authority to amend the plan on behalf of any adopting employer as of either: (1) the date the Internal Revenue Service requires the employer to file Form 5300 as an individually designed plan as a result of an employer amendment to the Plan to incorporate a type of plan not allowable in the Volume Submitter program, as described in Rev. Proc. 2005 -16, or (2) as of the date the Plan is otherwise considered an individually designed plan due to the nature and extent of the amendments. If the Employer is required to obtain a determination letter for any reason in order to maintain reliance on the advisory letter, the Practitioner's authority to amend the Plan on behalf of the adopting employer is conditioned on the Plan receiving a favorable determination letter. The Practitioner will maintain, or have maintained on its behalf, a record of the employers that have adopted the Plan, and the Practitioner will make reasonable and diligent efforts to ensure that adopting employers have actually received and are aware of all Plan amendments and that such employers adopt new documents when necessary. This Section supersedes other provisions of the Plan to the extent those other provisions are inconsistent with this Section. VIII -2 determining years of service for vesting under this Plan shall include the Participant's last continuous period during which the Participant was an employee of the other Municipality. 9.3 Notice of Transfers: Immediately after any transfer of employment referred to in Sections 9.1 or 9.2, the transferred Participant shall give written notice of such transfer to the Authorized Agent on a form furnished by the Authorized Agent. Such Participant shall not be penalized, however, for failure to give such notice. The Authorized Agent shall give immediate notice in writing of such transfers to the Trust Service Provider and the Committee. 9.4 Transfer from Other Qualified Plans: The Employer may cause to be transferred to the Oklahoma Municipal Retirement Fund all or any of the assets held in respect to any plan or trust which satisfied the applicable requirements of the Code relating to qualified plans and trusts, which is maintained by the Employer for the benefit of its Employees. Any such assets so transferred shall be accompanied by written instructions from the Employer, or the trustee or custodian or the individual holding such assets, setting forth the Participants for whose benefit such assets have been transferred and showing separately the respective contributions by the Employer and by the Participants and the current value of the assets attributable thereto. Upon receipt of such assets and instructions the Oklahoma Municipal Retirement Fund shall thereafter proceed in accordance with the provisions of the Fund. 9.5 Rollover Contributions: A Participant who is or was entitled to receive an eligible rollover distribution, as defined in Code Section 402(c)(4) and Treasury Regulations issued thereunder, from a qualified plan described in Section 401(a) or 403(a) of the Code (including after -tax employee contributions), an annuity contract described in Section 403(b) of the Code (including after -tax employee contributions, or an eligible plan under Section 457(b) of the Code 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, or an individual retirement account may elect to contribute all or any portion of such distribution to the Trust directly from such qualified plan, annuity contract or eligible plan, or within 60 days of receipt of such distribution to the Participant. Rollover Contributions shall only be made in the form of cash, or, if and to the extent permitted by the Employer with the consent of the Trustee, promissory notes evidencing a plan loan to the Participant; provided, however, that Rollover Contributions shall only be permitted in the form of promissory notes if the Plan otherwise provides for loans. The Committee shall develop such procedures and require such information from Participants as it deems necessary to ensure that amounts contributed under this Section 9.5 meet the requirements for tax- deferred rollovers established by this Section 9.5 and by Code Section 402(c). No Rollover Contributions may be made to the Plan until approved by the Committee. If a Rollover Contribution made under this Section 9.5 is later determined by the Administrator not to have met the requirements of this Section 9.5 or of the Code or Treasury regulations, then, within a reasonable time after such determination is made, the amounts then held in the Trust attributable to such Rollover Contribution shall be distributed to the Employee. A Participant's Rollover Contributions Account shall be subject to the terms of the Plan except as otherwise provided in this Section 9.5. IX -2 account or individual retirement annuity. With respect to distributions made after December 31, 2001, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code 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. The definition of eligible retirement plan shall also apply 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 relation order, as defined in Section 414(p) of the Code. (iii) "Distributee ": A "Distributee" includes a Participant or former Participant. In addition, the Participant's spouse or former Participant's surviving spouse and the Participant's or former Participant's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. (iv) "Direct Rollover ": A "Direct Rollover" is a payment by the Plan directly to the Eligible Retirement Plan specified by the Distributee. 9.8 Requirements for Rollover by Individuals: An Employee (whether or not a Participant under this Plan), who, as a result of a termination of another plan qualified under Section 401(a) of the Code, a termination of employment, disability or attainment of age 59'/2 years, has had distributed to him his entire interest in a plan which meets the requirements of Section 401(a) of the Code (hereinafter referred to as the "Other Plan") may, in accordance with procedures approved by the Committee, transfer all or any part of the distribution received from the Other Plan to the Trustees under this Plan, provided the following conditions are met: (a) the transfer occurs on or before the 60th day following his receipt of the distribution from the Other Plan, or, if such distribution had previously been deposited in an individual retirement account (as defined in Section 408 of the Code), the transfer occurs on or before the 60th day following his receipt of such distribution, plus earnings thereon from such individual retirement account; (b) the distribution from the Other Plan qualifies as a lump sum distribution within the meaning of Subsection 402(e)(4)(A) of the Code or is a result of a termination of another plan qualified under Section 401(a) of the Code; and (c) the amount transferred shall not exceed the distribution he received from the Other Plan, less the amount, if any, considered contributed by him in accordance with Subsection 402(e)(4)(D)(i) of the Code, phis earnings thereon during the period, if any, in which the amount was held in an individual retirement account. 9.9 Transfers From Another Qualified Plan: (a) With respect to an Employee (whether or not a Participant under this Plan), who has an undistributed account balance in another plan which meets the requirements of Section 401(a) of the Code (hereinafter referred to as the "Other Plan"), the Committee may, in its sole discretion, approve a direct transfer of such account balance from the Other Plan to the Trustees under this Plan. IY -4 ARTICLE X. Administration 10.1 Administration: The Plan shall be administered by the Committee which is hereby created and established and which shall be composed of the members of the City Council of the Employer. The duties of the Committee shall be performed without compensation other than the compensation, if any, which they receive as officers of the Employer unless additional compensation is specifically provided for by action of the City Council. Any usual and reasonable expenses incdrred by the Committee in the administration of this Fund and Plan shall be paid by the Employer. (a) Committee: The Committee shall have such powers as may be necessary to discharge its duties hereunder and under the document creating the Oklahoma Municipal Retirement Fund, and under the contract for the pooling of the Fund with similar funds of other Municipalities. Such powers shall include but not be limited to the following powers and duties: (1) to delegate to, specify, direct, and supervise the performance of duties of the Authorized Agent, as the agent of the Employer and Committee in matters relating to the Plan, the Fund, and the Oklahoma Municipal Retirement Fund, including but not limited to, the duties set forth below in Subsection 10.1(b) and including any duties of the Employer under the Plan, or as set forth in this Subsection 10.1(a); (Z) acting by direction to the Authorized Agent to file a petition for nomination, or otherwise nominate, and cause the ballot for the election of Trustees of the Oklahoma Municipal Retirement Fund; (3) to construe and interpret the Plan and resolve any ambiguities with respect to any of the terms and provisions thereof as written and as applied to the operation of the Plan; (4) to decide all questions of eligibility and determine the amount, manner and time of payment of any benefits hereunder; (5) to prescribe procedures to be followed by Participants in filing applications for benefits; (6) to make a determination as to the right of any person to a benefit and to afford any person dissatisfied with such determination the right to a hearing thereon; (7) to receive from the Employer, the Trustees, the Trust Service Provider and the Authorized Agent, such information as shall be necessary for the proper administration of the Plan; (8) to prepare and distribute, in such manner as it determines to be appropriate, information explaining the Plan; (9) to furnish the Employer, upon request, such annual reports with respect to the administration of the Plan as are reasonable and appropriate; X-1 regulations and decisions shall be uniformly and consistently applied to all Employees in similar circumstances. Any such rule or decision which is not inconsistent with the provisions of the Plan shall be conclusive and binding upon all persons affected by it and there shall be no appeal from any ruling by the Committee which is within its authority. When making a determination or calculation, the Committee shall be entitled to rely upon information furnished by the Trustees, the Trust Service Provider, the Employer, the Authorized Agent, the legal counsel of the Employer, or the actuary for the Plan. (b) Authorized Agent: An Authorized Agent shall be designated in writing by the Committee and shall act as the agent of the Employer (but not the agent of the Trustees or the Trust Service Provider of the Oklahoma Municipal Retirement Fund) in matters pertaining to the Plan, the Fund and the Oklahoma Municipal Retirement Fund, to centralize in one person the local administration and coordination thereof, and to file payroll and contribution information, to file claims, forms and applications for Participants, and to advise Participants, the Employer and the Committee. The Authorized Agent, under the control and direction of the Committee, shall have such general duties as the Employer and the Committee may deem necessary and proper for such purposes, which duties shall include but not be limited to, the following: (1) to coordinate the deduction of Participant contributions and to see that Employer and Participant contributions are properly received and forwarded promptly to the Oklahoma Municipal Retirement Fund for management and investment; (2) to forward any communications directed to Participants and beneficiaries by the Trustees, the Trust Service Provider or the Oklahoma Municipal Retirement Fund; (3) to lend assistance to Participants and beneficiaries in filing applications for benefits, and in communicating with the Employer, the Committee and the Trustees or the Trust Service Provider of the Oklahoma Municipal Retirement Fund and to forward such communications to the addressees; (4) to assist the Committee in determining whether or not Employees are eligible for participation in the Plan; (5) to certify at the direction of the Committee that a Participant is on an authorized leave of absence, paid or unpaid; and (6) to file at the direction of the Committee a petition or nomination, and cast a ballot for election of Trustees of the Oklahoma Municipal Retirement Fund. (c) Plan Counselor: The Committee of the Employer shall appoint the legal advisor of the Employer and the Committee, and such legal advisor shall represent them in any legal matters, proceedings, or litigation. 10.2 Bonds: No bond to secure the performance of administrative duties in the operation of the Plan and Fund, shall be required of any persons or organizations unless required by law, or X -3 Committee shall not be required to see to the application of any such payment, and the payee's receipt shall be a full and final discharge of all responsibility hereunder of the Employer, the Committee and the Trustees. X -5 shall be held to violate a rule or law against restraints on alienation or remote vesting, the Plan shall not be vitiated thereby, but the Plan, or the portion of the Plan thus affected, shall immediately be distributed to those entitled as their interest shall then appear. 11.8 Number and Gender: Pronouns and other similar words used herein in the masculine gender shall be read as the feminine gender where appropriate; pronouns and other similar words used herein in the neuter gender shall be read as the masculine or feminine gender where appropriate; and the singular form of words shall be read as the plural where appropriate. 11.9 Compensation and Expenses of Administration: If a Trustee, a member of Oklahoma Municipal Retirement Fund, or a member of the Committee is an Employee of the Employer, he shall serve without any additional compensation. The Employer may pay all or part of the expenses of administration of the Plan, including the compensation and expenses of the Trustee, and any other expenses incurred at the direction of the Oklahoma Municipal Retirement Fund, including, without limitation, fees of actuaries, accountants, attorneys, investment managers, investment advisors and other specialists, and any other costs of administering the Plan. To the extent that any of such expenses are not paid by the Employer, such expenses shall be paid by the Oklahoma Municipal Retirement Fund out of the Fund. In addition, the Plan or Trustees shall be authorized to charge to a Participant's Account any direct expenses it incurs in connection with such Account, which shall include by example, and not by limitation, expenses resulting from a Participant's QDRO, bankruptcy or default on a Plan loan, and expenses incurred in attempting to locate a Participant. Trustees shall have the power under this Section in their sole discretion to determine the items and amounts thereof which should equitably and reasonably be charged to a particular Account. If such charges exceed the balance in a Participant's Accounts, the excess shall be charged to the general Trust Fund. 11.10 Incorporation of Trust Agreement: The provisions of the Trust Indenture Establishing the Oklahoma Municipal Retirement Fund are incorporated into and made a part of this Plan. 11.11 Mistake of Fact: All contributions to the Plan are made subject to the correctness of the amount. In the event a contribution is made to the Plan and Trust by the Employer under a mistake of fact concerning the correctness of such contribution, then the Oklahoma Municipal Retirement Fund shall return such portion of such contribution which is in excess of the amount that would have been contributed had there not occurred a mistake of fact within one year after the payment of the contribution to the Oklahoma Municipal Retirement Fund. In the case of amounts returned pursuant to this Section 11.11, no earnings attributable to such amounts may be returned to the Employer, but losses attributable thereto shall reduce the amount returned, and no such return shall reduce the balance of any Participant's Municipality Contribution Accounts to less than the balance which would have been credited thereto had such amount not been contributed. XI -2 ADDENDUM NUMBER ONE TO OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN AMENDMENT FOR THE FINAL CODE SECTION 415 REGULATIONS ARTICLE I. PREAMBLE 1.1 Effective date of Amendment. This Amendment is adopted to reflect certain provisions of the final Code Section Regulations. This Amendment is effective for limitation years and plan years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on or after July 1, 2007, except as otherwise provided herein. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment, 1.3 Construction. Except as otherwise provided in this Amendment, any reference to "Section" in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.4 Effect of restatement of Plan. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates the final Code §415 Regulation provisions). ARTICLE II. FINAL SECTION 415 REGULATIONS 2.1 Effective date. The provisions of this Article II shall apply to limitation years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on and after July 1, 2007. 2.2 Actual Compensation paid after severance from employment. Actual Compensation shall be adjusted, as set forth herein, for the following types of compensation paid after a Participant's severance from employment with the Employer maintaining the Plan (or any other entity that is treated as the Employer pursuant to Code § 414(b), (c), (m) or (o)). However, amounts described in subsections (a) and (b) below may only be included in Actual Compensation to the extent such amounts are paid by the later of 2'/, months after severance from employment or by the end of the limitation year that includes the date of such severance from employment. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation is not considered Actual Compensation within the meaning of Code § 415(c)(3), even if payment is made within the time period specified above. (a) Regular pay. Actual Compensation shall include regular pay after severance of employment if., (1) The payment is regular compensation for services during the participant's regular working hours, or compensation for services outside the participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (2) The payment would have been paid to the participant prior to a severance from employment if the participant had continued in employment with the Employer. (b) Leave cashouts and deferred compensation. Leave cashouts shall not be included in Actual Compensation. Further, deferred compensation shall not be included in Actual Compensation. 2.7 Excess Annual Additions. Notwithstanding any provision of the Plan to the contrary, if the annual additions (within the meaning of Code § 415) are exceeded for any participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2006- 27 or any superseding guidance, including, but not limited to, the preamble of the final § 415 regulations. 2.8 Aggregation and Disaggregation of Plans. (a) For purposes of applying the limitations of Code § 415, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the Employer (or a "predecessor Employer ") under which the participant receives annual additions are treated as one defined contribution plan. The "Employer" means the Employer that adopts this Plan and all members of a controlled group or an affiliated service group that includes the Employer (within the meaning of Code §§ 414(b), (c), (m) or (o)), except that for purposes of this Section, the determination shall be made by applying Code § 415(h), and shall take into account tax- exempt organizations under Regulation Section 1.414(c) -5, as modified by Regulation Section 1.415(a)- l(f)(1). For purposes of this Section: (1) A former employer is a "predecessor employer" with respect to a participant in a plan maintained by an employer if the employer maintains a plan under which the participant had accrued a benefit while performing services for the former employer, but only if that benefit is provided under the plan maintained by the employer. For this purpose, the formerly affiliated plan rules in Regulation Section 1.415(0- 1(b)(2) apply as if the employer and predecessor employer constituted a single employer under the rules described in Regulation Section 1.415(a)- I(i)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted two, unrelated employers under the rules described in Regulation Section 1.415(a)- I(f)(I) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the event that gives rise to the predecessor Employer relationship, such as a transfer of benefits or plan sponsorship. (2) With respect to an employer of a participant, a former entity that antedates the employer is a "predecessor Employer" with respect to the participant if, under the facts and circumstances, the Employer constitutes a continuation of all or a portion of the trade or business of the former entity. (b) Break -up of an affiliate employer or an affiliated service group. For purposes of aggregating plans for Code § 415, a "formerly affiliated plan" of an employer is taken into account for purposes of applying the Code § 415 limitations to the employer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the "cessation of affiliation." For purposes of this paragraph, a "formerly affiliated plan" of an employer is a plan that, immediately prior to the cessation of affiliation, was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation Section 1.415(a)- l(f)(1) and (2)), and immediately after the cessation of affiliation, is not actually maintained by any of the entities that constitute the employer (as determined under the,employer affiliation rules described in Regulation Section 1.415(a)- 1(f)(1) and (2)). For purposes of this paragraph, a "cessation of affiliation" means the event that causes an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliation rules described in Regulation Section 1.415(a)- I(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rules of Regulation Section 1.415(a)- 1(f)(I) and (2) (such as a transfer of plan sponsorship outside of a controlled group). (c) Midyear Aggregation. Two or more defined contribution plans that are not required to be aggregated pursuant to Code § 415(f) and the Regulations thereunder as of the first day of a limitation year do not fail to satisfy the requirements of Code § 415 with respect to a participant for the limitation year merely because they are aggregated later in that limitation year, provided that no annual additions are credited to the participant's account after the date on which the plans are required to be aggregated. DC415 Addendum #1 _ .. t sl OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN JOINDER AGREEMENT Exhibit A City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Contribution Plan to be known as the City of Owasso Plan (the "Plan ") in the form of the Oklahoma Municipal Retirement Fund Master Defined Contribution Plan. Except as otherwise provided herein, the definitions in Article II of the Plan apply. 1. Dates. [ ] This instrument is a new Plan effective [ X ] This instrument is an amendment, restatement and continuation of the Previous Plan, which was originally effective July 1. 1992. The effective date of this Joinder Agreement is January 1. 2010, except as otherwise stated in the Plan and the Joinder Agreement 2. Employee. The word "Employee" shall mean: [ X ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular full-time employee in accordance with the Employer's standard personnel policies and practices, and is receiving remuneration for such services rendered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular employee in accordance with the Employer's standard personnel policies and practices (including part-time, seasonal and temporary employees), and is receiving remuneration for such services rendered to the Employer (including any.elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person who, on or after the Effective Date,. The word "Employee" shall not include: [ ] Any person who is currently accruing benefits under any other state or local retirement system. [ ] Any person who . 3. Entry Date. Eligible Employees shall commence participation in the Plan: (Select only one) [ ] _ months (any number of months up to twelve) after the later of the Employee's Employment Commencement Date or the date the definition of Employee shown above was met. [ X ] On the Employee's Employment Commencement Date. (If the Employer has opted out of Old Age and Disability Insurance (OADI), this option must be elected). 4. Definition of Compensation. Compensation shall exclude the item(s) listed below: [ ] No exclusions. [ X ] Overtime pay. [ X ] Bonuses. [ X ] Commissions. [ X ] Severance pay. [ X ] Fringe benefits, expense reimbursements, deferred compensation and welfare benefits. [ ] Other: . 5. Plan Design. The Employer hereby elects the following Plan design: [ ] Pick -up Option. Each Employee shall be required to contribute to the Plan % of his or her Compensation. These contributions shall be picked up and assumed by the Employer and paid to the Fund in lieu of contributions by the Participant. No Participant shall have the option of receiving the contributed amounts directly as Compensation. [ X ] Thrift Plan Option. [ X ] A Participant may elect to contribute to the Plan for each Valuation Period an amount which is at least 1 %, but no more than 2.00% of his Compensation ( "Mandatory Contributions "). Mandatory Contributions shall be made by payroll deductions. A Participant shall authorize such deductions in writing on forms approved by, and filed with the Committee. [ X ] The Employer shall contribute to the Fund an amount equal to 50% of the total Mandatory Contributions contributed by Participants. The Employer contribution together with amounts forfeited, if any, shall be allocated in the proportion which the Mandatory Contributions of each such Participant for such Valuation Period bear to the total Mandatory Contributions contributed by all such Participants for such Valuation Period. [ ] The Employer shall not contribute to the Fund a percentage of the total Mandatory Contributions contributed by Participants. [ ] Fixed Contribution. The Employer shall contribute to the Fund an amount which when added to amounts available from Amounts Forfeited in prior periods, if any, shall equal % of the total covered Compensation of all Participants for the Valuation Period. The Employer contribution together with amounts available from Amounts Forfeited in prior periods shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] Variable Funding Option. [ ] The Employer intends to make a contribution to the Plan for the benefit of the Participants for each Valuation Period. The contribution may be varied from year to year by the Employer. (Select one option below) [ ] Option A: The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion that each such Participant's total points awarded bear to the total points awarded to all Participants with respect to such year. A Participant shall be awarded one point for each Year of Service. [ ] Option B: The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] Option C: A combination of Options A and B in the following ratios: % for Option A, and % for Option B. [ ] 401(k) Funding Option. (This Option available only if elected prior to May 1, 1986) [ ] Participant Deferral Elections shall be allowed under the provisions of Section 4.9 of the Plan. Participants shall be allowed to defer no more than % of their Compensation for each election period. The election period shall be the one month period preceding each [ ] Valuation Period [ ] calendar quarter of the Valuation Period. [ ] Section 4.9(c) of the Plan ("Roth Elective Deferrals ") shall apply to contributions after (enter a date later than January 1, 2006), and the Plan will accept a direct rollover from another Roth elective deferral account under an applicable retirement plan as described in Code Section 402A(e)(1). [ ] No Employer Contribution Option. Exhibit A - Page 2 6. Other Participant Contribution Options. [XI Voluntary Nondeductible Contributions by Participants shall be allowed under the provisions of Section 4.5 of the Plan. [) A Participant may not withdraw Voluntary Nondeductible Contributions. [ ] Participants shall not contribute to the Plan. 7. Self- Directed Investments. [ X ] Are permitted. [ ] Are not permitted. 8. Allocation of Forfeitures Available. [ ] Shall be added to Employer contribution. [ X ] Shall reduce the Employer contribution. 9. Service for Worker's Compensation Period. If a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during such Authorized Leave of Absence, such Participant [ X ] shall be credited with Service for such period for purposes of vesting only and not for purposes of allocations of Employer Contributions. [ ] shall not be credited with Service for such period. 10. Vesting. For purposes of vesting under Section 6.4 of the Plan, the Employer hereby elects the following Option: [ ] Option A [ ] Option B Vested Forfeited Vested Forfeited Years of Service Percentage Percentage Years of Service Percentage Percentage less than 1 0% 100% Less than 3 0% 100% at least I but less than 2 10% 90% at least 3 but less than 4 20% 80% at least 2 but less than 3 20% 80% at least 4 but less than 5 40% 60% at least 3 but less than 4 30% 70% at least 5 but less than 6 60% 40% at least 4 but less than 5 40% 60% at least 6 but less than 7 80% 20% at least 5 but less than 6 50% 50% 7 or more 100% 0% at least 6 but less than 7 60% 40% at least 7 but less than 8 70% 30% at least 8 but less than 9 80% 20% at least 9 but less than 10 90% 10% 10 or more 100% 0% [ ] Option C [ X ] Option D Vested Forfeited Vested Forfeited Years of Service Percentage Percentage Years of Service Percentage Percentage less than 5 0% 100% less than 1 0% 100% at least 5 but less than 6 50% 50% at least I but less than 2 0% 100% at least 6 but less than 7 60% 40% at least 2 but less than 3 40% 60% at least 7 but less than 8 70% 30% at least 3 but less than 4 60% 40% at least 8 but less than 9 80% 20% at least 4 but less than 5 80% 20% at least 9 but less than 10 90% 10% 5 or more 100% 0% 10 or more 100% 0% [ ] Option E To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code Section 3121(b)(7)(F), Participants who are part-time, seasonal or temporary Employees will have immediate vesting. (If this Option E is elected, one of the other Options above must also be elected for Participants who are not part-time, seasonal or temporary Employees). Exhibit A - Page 3 11. Participant Loans. [ X ] Participant loans shall be offered pursuant to Section 6.14 of the Plan. [ ] Participant loans shall not be offered. 12. The Employer has consulted with and been advised by its attorney concerning the meaning of the provisions of the Plan and the effect of entry into the Plan. IN WITNESS WHEREOF City of Owasso has caused its corporate seal to be affixed hereto and this instrument to be duly executed in its name and behalf by its duly authorized officers this 3 rd day of Title: City Clerk (SEAL) City of O o wa By: 2AJ Title: MAVnr 13. The foregoin Joinder Agreement is hereby approved by the Oklahoma Municipal Retirement Fund this 1 q day of ;Iml. Attest: &AUIq* Secretary „punuun.. �f;•'ofFlt/q P SEdY,y • • "iil f1°•V 9d r•dvtaI IP% Ii Title: UY,i i P Anton Exhibit A - Page 4 IT MERIF)i� NOV 1 2 2000 lj l Exhibit B OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN TABLE OF CONTENTS Page ARTICLE I. PURPOSE AND ORGANIZATION ............................................. ..............................1 1.1 Purpose ........................................................................................................ ..............................1 1.2 Parties .......................................................................................................... ..............................1 ARTICLE II. DEFINITIONS AND CONSTRUCTION ..................... . ....................................... II -1 2.1 Definitions .................................................................................................. ...........................II -1 (a) Account ................................................. ................................................................... II -1 (b) Adjustment Factor ....................................................................... ...........................II -1 (c) Amount(s) Forfeited ..................................................................... ...........................II -I (d) Authorized Agent ......................................................................... ...........................II -1 (e) Authorized Leave of Absence ................................................. ............................... II -1 Beneficia II -1 (g) Break in Service ....................................................................... ............................... II 1 (h) Catch -Up Contributions .............................................................. ...........................II -2 (i) Catch -Up Contribution Account ............................................ ............................... fI -2 0) City Council .................................................................................. ...........................II -2 (k) Code ............................................................................................... ...........................II -2 (1) Committee ..................................................................................... ...........................II -2 (m) Compensation ............................................................................... ...........................II -2 (n) Deductible Participant Contribution ..................................... ............................... II -3 (o) Deferred Compensation Contributions ...................................... ...........................II -3 (p) Effective Date .........................................:................................. ............................... II -3 (9) Employer ....................................................................................... ...........................II -3 (r) Employment Commencement Date ............................................ ...........................II -3 (s) Entry Date ................................................................................ ............................... II -3 (t) Forfeiture ...................................................................................... ...........................II -3 (u) Fund .............................................................................................. ...........................II -3 (v) Investment Manager .................................................................... ...........................II -3 (w) Investment Options ...................................................................... ...........................11 -4 (x) Joinder Agreement ................................................................... ............................... II -4 (y) Leased Employee .......................................................................... ...........................II -4 (z) Limitation Year ........................................................................ ............................... r14 (aa) Loan Account ............................................................................... ...........................II -4 (bb) Mandatory Contributions ........................................................... ...........................II -4 (cc) Municipality ................................................................................. ...........................II -4 (dd) Municipality Contribution Account ........................................... ...........................II -4 (ee) Normal Retirement Date ............................................................. ...........................II -4 (fl) Oklahoma Municipal Retirement Fund ................................. ............................... II -5 (gg) Participant ................................. .............................................................................. II -5 (hh) Participant Contribution Accounts ........................................ ............................... II -5 (ii) Participant Deductible Contribution Account ........... .......................................... II -5 6j) Participant Deferred Compensation Contribution Account .... ...........................II -5 (kk) Participant Mandatory Contribution Account ..................... ............................... II -5 (11) Participant Nondeductible Contribution Account .................... ...........................II -5 (mm) Participant Rollover Account ................................................. ............................... II -5 (nn) Participant Roth Contribution Account .................................... ...........................II -5 (oo) Participation ................................................................................. ...........................II -5 (pp) Period(s) of Service or Service .................................................... ...........................II -5 (qq) Pick -Up Contributions ................................................................ ...........................II -6 (rr) Pick -Up Contributions Account ................................................. ...........................II -6 (ss) Plan ................................................................................................ ...........................II -6 (tt) Plan Administrator .................................................................. ............................... II -6 (uu) Plan Year ...................................................................................... ...........................II -7 (vv) Previous Plan ............................................................................ ............................... II -7 (ww) Retirement .................................................................................... ...........................II.7 ARTICLE V. ACCOUNTING, ALLOCATION AND VALUATION ........ ............................... V -1 (xx) Roth Contributions ...................................................................... ...........................II -7 5.2 Total and Permanent Disability 1I -7 (zz) Trust Service Provider .................................... ....................................................... II -7 (aaa) Trustee ..................................................................................... .............................., II -7 (bbb) Valuation Date .............................................................................. ...........................II -7 (ccc) Valuation Period ...................................................................... ............................... II -7 2.2 Construction ............................................................................................... ...........................II -7 ARTICLE M. ELIGIBILITY AND PARTICIPATION .. ............................... ..........................III -1 3.1 Eligibil ity ...................................................................... ............................... .........................III -1 3.2 Entry Date .................................................................... ............................... ..........................III -1 3.3 Re- employment of Former Participants ...................... ............................... ..........................III -1 3.4 Re- employment of Retired or Fully Vested Participants ........................... ..........................III -1 ARTICLEIV. CONTRIBUTIONS ............................................................... ............................... IV -1 4.1 Contributions by Employer ........................................................................ ...........................IV -1 4.2 Required Participant Contribut ions ........................................................... ...........................IV -1 4.3 Mandatory Contributions .......................................................................... ...........................IV -1 4.4 Voluntary Nondeductible Contributions by Participants ............. ............ . .. ............. .. .......... IV- 1 4.5 Change of Rate of Voluntary Nondeductible Contributions by Participant ......................... IV- 1 4.6 Participant Contributions Nonforfeitable .................................................. ...........................IV -2 4.7 Pick -up Contributions .................. ......................................................................................... IV -2 4.8 Deferred Compensation Contributions ...................................................... ...........................IV -2 J ARTICLE V. ACCOUNTING, ALLOCATION AND VALUATION ........ ............................... V -1 5.1 Accounts ................................................................................................. ............................... V -1 5.2 Eligibility for Allocation ........................................................................... ............................V -1 5.3 Allocation of Contribution ........................................................................ ............................V -1 5.4 Allocation of Amounts Forfeited ........................................................... ............................... V -1 5.5 Valuation Date Adjustment .................................................................... ............................... V -1 5.6 Allocation of Investment Earnings and Losses ...................................... ............................... V -1 5.7 Accounting for Participants' Contributions ............................................ ............................... V -2 5.8 Accounting for Statement of Account .................................................... ............................... V -2 5.9 Time of Adjustment ................................................................................... ............................V -2 5.10 Special Valuation Date .............................. ............................... 5.11 Maximum Annual Additions ..................... ............................... 5.12 Investment Options .................................... ............................... ARTICLE VI. BENEFITS 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 Retirement or Disability ....................................... ............................... DeferredRetirement ............................................. ............................... Deathof a Participant ........................................... ............................... Termination for Other Reasons - Vested Percentage .......................... Initial Distribution Date .............................................. ............................... Determination of Amounts Forfeited ......................... ............................... Participant Contribution Accounts ............................. ............................... Withdrawals From Participant's Contribution Accounts .......................... Withdrawals from Participant's Mandatory Contribution Account.......... Methodsof Distribution ............................................. ............................... Designation of Beneficiary ......................................... ............................... Loss of Benefits for Cause ......................................... ............................... Payments Under a Qualified Domestic Relations Order ........................... ...................... V -2 ...................... V -2 ...................... V -3 VI -1 ....................... V I -1 ....................... VI- I ....................... VI- I ....................... VI -1 .................. V I -1 .............. I... VI- I .................. Vi- I ..................VI- I .................. VI -2 .................. VI-2 .................. VI-3 ......VI -3 ......VI -3 Loansto Participants ................................................................................. ...........................VI -5 (a) General: .................................................................................................................... VI-5 (b) Establishment of Loan Account .................................................... ...........................VI -6 (c) Foreclosure of Loan Account ........................................................ ...........................VI -6 (d) Special Restrictions on Foreclosure ................. ........................................................ VI -6 (e) Establishment of Loan Program .................................................... ...........................VI -6 (0 Loan Account ................................................................................ ...........................VI -7 6.15 Required Minimum Distributions ............................................................. ...........................VI -7 (a) Coordination with Minimum Distribution Requirements Previously in Effect....... VI -7 (b) Time and Manner of Distribution: ........................................................................... VI-7 (c) Required Minimum Distributions During Participant's Lifetime: ........................... VI-8 (d) Required Minimum Distributions After Participant's Death: .................................. VI-9 (e) Definitions: ............................................................................................................ VI-10 6.16 Withdrawals from Participant Rollover Account ............ .. ................................................. VI -10 ARTICLEVII. NOTICES .................................................. ............................... .......................... VII -1 7.1 Notice to Oklahoma Municipal Retirement Fund ............................... ............................... VII -1 7.2 Subsequent Notices .............................................................................. ............................... VII -1 7.3 Copy of Notice .................................................................................... ............................... VII -1 7.4 Reliance Upon Notice ......................................................................... ............................... VII -1 ARTICLE VIII. AMENDMENT AND TERMINATION ........................ ............................... VIII-1 8.1 Termination of Plan ................................................... ............................... .........................VIII -I 8.2 Suspension and Discontinuance of Contributions .............................. ............................... VIII -I 8.3 Liquidation of Trust Fund .................................................................. ............................... VIII -1 8.4 Amendments ....................................................................................... ............................... VIII -I 8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers............ VIII -2 ARTICLE IX. EMPLOYMENT TRANSFERS ........................................... ............................... IX -1 9.1 Transfers from This Plan: ..................................................................................................... IX-1 (a) To Another Category with This Employer .................................. ...........................IX -1 (b) To Another Municipality .............................................................. ...........................IX -1 9.2 Transfers to This Plan: ...... .................................................................................................. IX-1 (a) From Another Category with This Employer ............................... ...........................IX -1 (b) From Another Municipality .......................................................... ...........................IX -1 (c) Previously Fully Vested With Another Municipality .............................................. IX- 1 9.3 Notice of Transfers .................................................................................... ...........................IX -2 9.4 Transfer from Other Qualified Plans ............................................................ ........................ IX -2 9.5 Rollover Contributions .............................................................................. ...........................IX -2 9.6 Transfer to Other Qualified Plans ................................................. ....................................... IX -3 9.7 Rollover to Another Plan or IRA .............................................................. ...........................IX -3 (a) Definitions .................................................................................... ...........................IX -3 (i) "Eligible Rollover Distribution" ...... . .............. . .................................... . ................... IX -3 (ii) "Eligible Retirement Plan" ........................................................... ...........................IX -3 (iii) " Distributee" ................................................................................. ...........................IX -4 (iv) "Direct Rollover" .......................................................................... ...........................IX -4 9.8 Requirements for Rollover by Individuals ........................... ................................................ D{ -4 9.9 Transfers From Another Qualified Plan ............................... ...... , ...... . ............. . .................... IX -4 9.10 Procedures .............................................................. .............................................................. D{ -5 ARTICLEX. ADMINISTRATION ................................................................... ............................X -1 10.1 Administration ................................... ....... ................................ ............................................. X -1 (a) Committee ..................................................................................... ........................•...X -1 (b) Authorized Agent ...................................................................... ............................... X -3 (c) Plan Counselor .............................................................................. ............................X -3 10.2 Bonds ......................................................................................................... ............................X -3 10.3 Benefit Payments ....................................................................................... ............................X -4 10.4 Abandonment of Benefits .......................................................................... ............................X -4 10.5 Benefits Payable to Incompetents ............................................................. ............................X -4 ARTICLEX1. GENERAL ............................................................................. ............................... XI -1 11.1 Not Contract Between Employer and Participant ..................................... ...........................XI -1 11.2 Payment of Fees ........................................................................................ ...........................XI -1 11.3 Governing Law .......................................................................................... ...........................XI -I 11.4 Counterpart Execution ............................................................................... ...........................XI -1 11.5 Severability ................................................................................................ ...........................XI -1 11.6 Spendthrift Provisions ............................................................................... ...........................XI -1 11.7 Maximum Duration ................................................................................... ...........................XI -1 11.8 Number and Gender .................................................................................. ...........................XI -2 11.9 Compensation and Expenses of Administration ....................................... ...........................XI -2 11.10 Incorporation of Trust Agreement ............................................................. ...........................XI -2 11.11 Mistake of Fact .......................................................................................... ...........................XI -2 ADDENDUM NUMBER ONE: Final Code Section 415 Regulations ARTICLE I. Purpose and Organization 1.1 Purpose: The purpose of this Plan is to encourage the loyalty and continuity of service of the Participants, to provide retirement benefits for all eligible Employees of the Employer, as hereinafter defined, who complete a period of faithful service and become eligible hereunder, and to qualify the Plan under section 401(a) and 501(a) of the Code. The benefits provided by this Plan will be paid from a Fund established by the Employer and will be in addition to the benefits Employees are entitled to receive under any other programs of the Employer and from the Federal Social Security Act. This Plan and the separate related Fund forming a part hereof are established and shall be maintained for the exclusive benefit of the eligible Employees of the Employer and their beneficiaries. 1.2 Parties: The Oklahoma Municipal Retirement Fund hereby adopts and establishes this Plan for the benefit of Employees of those Employers, as defined herein, formed, chartered or incorporated under the laws of the State of Oklahoma, who wish to adopt it by executing a Joinder Agreement which incorporates this Plan by reference. ARTICLE II. Definitions and Construction 2.1 Definitions: Where the following words and phrases appear in this Plan, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary: (a) Account: One or more of several records maintained to record the interest in the Plan of each Participant and Beneficiary, and shall include any or all, where appropriate, of the following: (i) Municipality Contribution Account, (ii) Participant Deductible Contribution Account, (iii) Participant Deferred Compensation Contribution Account, (iv) Participant Mandatory Contribution Account, (v) Participant Nondeductible Contribution Account, (vi) Participant Roth Contribution Account, (vii) Pick -Up Contribution Account, (viii) Participant Rollover Account, (ix) Catch -Up Contribution Account, and (x) Loan Account. (b) Adjustment Factor: The cost of living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code for years beginning after December 31, 1987, as applied to such items and in such manner as the Secretary shall provide. (c) Amounts) Forfeited: That portion of a terminated Participant's Municipality Contribution Account to which such Participant is not entitled because of insufficient Service. (d) Authorized Agent: The City Clerk of the Employer or such other person designated by the Employer to carry out the efficient operation of the Plan at the local level. (e) Authorized Leave of Absence: Any absence authorized by the Employer under the Employer's standard personnel practices applied to all persons under similar circumstances in a uniform manner, including any required military service during which a Participant's re- employment rights are protected by law; provided that he resumes employment with the Employer within the applicable time period established by the Employer or by law. Notwithstanding any provision of this Plan to the contrary, effective December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code. (f) Beneficiary: Any person or entity designated or deemed designated by a Participant as provided in Section 6.11 hereof. (g) Break in Service: The expiration of ninety (90) days from the date the Participant last performed Service for the Employer for which such Participant was entitled to wages as defined in Section 3121(a) of the Code unless the Participant is on Authorized Leave of Absence. If a Participant does not resume employment with the Employer upon the expiration of an Authorized Leave of Absence, the Participant will be deemed to be absent from work on the first day of his Authorized Leave of Absence for purposes of determining if the Participant has a Break in Service. For determining the amounts to be forfeited from a Participant's account under Section 6.6, any periods of employment with the Employer during which the Participant was not considered an Employee under the Plan shall not be considered as a Break in Service that causes II -1 a forfeiture unless the Participant was covered under a state retirement system or any other program outside the Oklahoma Municipal Retirement Fund System. (h) Catch -Up Contributions: A Participant's contributions described in Section 4.8(b) herein. (i) Catch -Up Contribution Account: The Account maintained for a Participant in which any Catch -Up Contributions are recorded. 0) City Council: The City Council or Board of Trustees of the Employer or other duly qualified and acting governing authority of the Employer. (k) Code: The Internal Revenue Code of 1986, as amended from time to time. (1) Committee: The City Council of the Municipality, which shall act as the Plan Administrator of the Plan as provided for under Article X hereof. (m) Compensation: Compensation means wages for federal income tax withholding purposes, as defined under Code §3401(a), plus all other payments to an Employee in the course of the Employer's trade or business, for which the Employer must furnish the Employee a written statement under Code § §6041, 6051 and 6052, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or services performed (such as the exception for agricultural labor in Code §3401(a)(2)). The Employer in its Joinder Agreement may specify modifications to the definition of Compensation, for purposes of contribution allocations under the Plan. For purposes of determining a Participant's compensation, any election by such Participant to reduce his regular cash remuneration under Code Sections 125, 401(k), 414(h), 403(b) or 457 shall be disregarded. (1) Limitations. Notwithstanding anything herein to the contrary, for Plan Years commencing after December 31, 1988 and before January 1, 1994, the annual Compensation of each Participant taken into account tinder the Plan for any Plan Year shall not exceed $200,000, as adjusted by the Secretary of the Treasury at the same time and in the same manner as under Section 415(d) of the Code. In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, for Plan Years beginning on or after January 1, 1994, the annual Compensation of each employee taken into account tinder the Plan shall not exceed the Omnibus Budget Reconciliation Act of 1993 ( "OBRA '93 ") annual compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. The cost -of- living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. The annual compensation of each Participant taken into account in determining allocations for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as adjusted for cost -of- living increases in accordance with Section 401(a)(17)(B) of the Code. Annual compensation means compensation during the Plan Year or such other consecutive II -2 12 -month period over which compensation is otherwise determined under the Plan (the determination period). The cost -of- living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. If Compensation for any prior determination period is taken into account in detemiining an employee's benefits accruing in the current Plan Year, the Compensation for that prior determination period is subject to applicable annual compensation limit in effect for that prior determination period. For limitation years beginning on and after January 1, 2001, for purposes of applying the limitations described in this Subsection 2.1(m), Compensation paid or made available during such limitation years shall include elective amounts that are not includible in the gross income of the Employee by reason of Section 132(f)(4) of the Code. (n) Deductible Participant Contribution: Prior to January 1, 1987, the amount a Participant may voluntarily contribute to the Plan which could not exceed the lesser of $2,000 (or such higher limit as allowed by the Code), or 100% of Compensation, and is deductible from gross income by the Participant pursuant to the Code. No Deductible Participant Contributions may be made after January 1, 1987. (o) Deferred Compensation Contributions: A Participant's contributions described in Section 4.8 herein and credited to his Participant Deferred Compensation Contribution Account. (p) Effective Date: The later of. (a) the date specified in the Joinder Agreement; or (b) the first day on which the Plan has a Participant. (q) Employer: A Municipality chartered, incorporated or formed under the laws of the State of Oklahoma which executes the Joinder Agreement. (r) Employment Commencement Date: The first day of the first pay period during which the Participant receives wages as defined in Section 3121(a) of the Code from the Employer. (s) Entry Date: The date an Employee becomes a Participant. (t) Forfeiture: The portion of a Participant's Accounts which becomes forfeitable pursuant to Section 6.6 hereof. (u) Fund: The fiord established to provide the benefits under the Plan for the exclusive benefit of the Participants included in the Plan, and which will be pooled with similar funds of other incorporated cities and towns of Oklahoma as a part of the Oklahoma Municipal Retirement Fund, for purposes of pooled management and investment. (v) Investment Manager: A person who is either (i) registered as an investment adviser under the Investment Advisers Act of 1940, (ii) a bank, as defined in the Investment Advisers Act of 1940, or (iii) an insurance company qualified to perform investment management services under the laws of more than one state. II -3 (w) Investment Options: Any of those investment options selected by the Committee in accordance with Section 5.12 hereof. (x) Joinder Agreement: The agreement by which the Employer adopts this Plan and Fund as its Plan and Fund. (y) Leased Employee: Any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing organization ") has performed services for the recipient (or for the recipient and related persons determined in accordance with Section 414(n)(6) of the Code) on a substantially full time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient. Contributions or benefits provided a leased employee by the leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A leased employee shall not be considered an employee of the recipient if. (I) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least 10% of compensation, as defined in section 415(c)(3) of the Code, but including amounts contributed pursuant to a salary reduction agreement which are excludable from the employee's gross income under section 125, section 402(e)(3), section 402(h)(1)(B) or section 403(b) of the Code, (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than 20% of the recipient's nonhighly compensated work force. (z) Limitation Year: The twelve (12) consecutive month period ending on June 30th of each year. If the Limitation Year is amended to a different twelve (12) consecutive month period, the new Limitation Year must begin on a date within the Limitation Year in which the amendment is made. (aa) Loan Account: A Participant's Separate Account established in the event he desires to make a loan from his applicable Account as provided in Section 6.14 herein. (bb) Mandatory Contributions: Contributions, if elected by the Employer in the Joinder Agreement, which Participants are required to make in order to participate in the Plan. (cc) Municipality: (1) each and every incorporated municipality in the State of Oklahoma; (2) public trusts having municipalities as a beneficiaries; (3) interlocal cooperatives created pursuant to 74 Oklahoma Statutes, Sections 1001, et seq., between municipalities and /or their public trust, and; (4) any other legal entity comprising a municipal authority as that term is used in Chapter 48 of Title 11 Oklahoma statutes, which has adopted the Plan and/or which has become a participant in the related trust according to the terms herein. (dd) Municipality Contribution Account: The account maintained for a Participant in which his share of the contributions of the Employer and the Amounts Forfeited and any adjustments relating thereto are recorded. (ee) Normal Retirement Date: The first day of the month occurring on or next following the date a Participant attains sixty -five (65) years of age. II -4 (ff) Oklahoma Municipal Retirement Fund: The trust created in accordance with Sections 48 -101 et seq., of Title 11, Oklahoma Statutes 1981, to combine pension and retirement funds in incorporated cities and towns of Oklahoma for purposes of management and investment, represented by and acting through its Board of Trustees. (gg) Participant: Any Employee or former Employee who meets the eligibility requirements and is covered under the Plan. (hh) Participant Contribution Accounts: All of the following Accounts: (i) Participant Deductible Contribution Account, (ii) Participant Deferred Compensation Contribution Account, (iii) Participant Nondeductible Contribution Account, (iv) Catch -Up Contribution Account, (v) Pick -Up Contributions Account, (vi) Participant Mandatory Contributions Account, (vii) Participant Rollover Account, and (viii) Participant Roth Contribution Account. (ii) Participant Deductible Contribution Account: The Account maintained for a Participant in which his Deductible Participant Contributions and adjustments relating thereto are recorded. (jj) Participant Deferred Compensation Contribution Account: The Account maintained for a Participant in which his Deferred Compensation Contributions resulting from the Participant's election under Section 4.8 of the Plan and adjustments thereto are recorded. (kk) Participant Mandatory Contribution Account: The Account maintained for a Participant in which his Mandatory Contributions and adjustments relating thereto are recorded. (11) Participant Nondeductible Contribution Account: The Account maintained for a Participant in which his voluntary nondeductible contributions and adjustments relating thereto are recorded. (mm) Participant Rollover Account: The Account maintained for a Participant in which any Rollover Contributions are recorded. (nn) Participant Roth Contribution Account: The Account maintained for a Participant in which any Roth Contributions are recorded. (oo) Participation: The period commencing as of the date an Employee became a Participant and ending on the date the final distributions of all the Account balances are made. (pp) Period(s) of Service or Service: (1) A Participant's last continuous period during which the Participant was an Employee of the Employer and /or any other Municipality prior to the earlier of his Retirement or Break in Service. (i) Service includes employment with a Municipality other than the Employer prior to the time that the other Municipality adopted the Plan if the other Municipality credits a participant's past service under its retirement plan; and II -5 (ii) Service for the Employer does not include employment with any Municipality if that service would not be included under the Municipality's Plan. (2) Concurrent employment with more than one Municipality shall be credited as only one period of service. (3) Any Authorized Leave of Absence shall not be considered as interrupting continuity of employment, provided the Employee returns within the period of authorized absence. Until such time as the City Council shall adopt rules to the contrary, credit for Service with the Employer shall be granted for any period of Authorized Leave of Absence during which the Employee's full Compensation is continued and contributions to the Fund are continued at the same rate and made by or for him, but credit for Service with the Employer shall not be granted for any period of authorized, nonpaid absence due to illness, union leave, military service, or any other reason, unless arrangements are made with the City Council for the Employee's continued participation and for contributions to be continued at the same rate and made by him or on his behalf during such absence. Provided, however, if a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during such Authorized Leave of Absence, and if the Employer so elects in the Joinder Agreement, such Participant shall be credited with Service for such period for purposes of vesting only (and not for purposes of allocation of Employer Contributions). (4) The expiration of the term of office of an elected official shall not be considered as interrupting continuity of employment, provided the official is re- elected for a consecutive term. (5) Any reference in this Plan to the number of years of Service of a Participant shall include fractional portions of a year. (6) With respect to a Participant who was previously 100% vested in any other Municipality's qualified retirement plan prior to becoming a Participant in this Plan, such Participant's "Service" for purposes of determining years of service for vesting under this Plan shall include the Participant's last continuous period during which the Participant was an employee of the other Municipality. (qq) Pick -Up Contributions: The Employer's contributions described in Section 4.7 hereof and credited to his Pick -Up Contribution Account. (rr) Pick -Up Contributions Account: The account maintained for a Participant in which his share of Pick -Up Contributions are recorded. (ss) Plan: The Oklahoma Municipal Retirement Fund Master Defined Contribution Plan set forth herein, and all subsequent amendments. (ft) Plan Administrator: The persons who administer the Plan pursuant to the provisions of Article X hereof. 11 -6 (uu) Plan Year: Means the twelve (12) consecutive month period ending June 30th of each year. The initial or final Plan Year may be less than a twelve (12) consecutive month period. (vv) Previous Plan: The terms and provisions in the prior instruments governing the Employer's qualified defined contribution retirement plan and related trust, and applying before the Effective Date hereof, or any other date expressly specified herein if different from the Effective Date, which prior instruments are amended, restated and superseded by this instrument. (ww) Retirement: Termination of employment upon a Participant's attaining age 65. (xx) Roth Contributions: A Participant's contributions described in Section 4.8(c) herein and credited to his Participant Roth Contribution Account. (yy) Total and Permanent Disability: A physical or mental condition which, in the judgment of the Committee, totally and presumably permanently prevents a Participant from engaging in any substantial gainful employment with the Employer. A determination of such disability shall be based upon competent medical evidence. (zz) Trust Service Provider: The person appointed by the Trustee to supervise operation of the Oklahoma Municipal Retirement Fund and to assist participating Municipalities in the adoption and operation of the Plan. (aaa) Trustee: The Trustees appointed pursuant to the Trust Indenture establishing the Oklahoma Municipal Retirement Fund. (bbb) Valuation Date: Midnight on the last work day of the calendar month and any Special Valuation Dates determined in accordance with Section 5.10. (ccc) Valuation Period: The period of time between two successive Valuation Dates. 2.2 Construction: The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender, unless the context clearly indicates to the contrary. The words "hereof," "herein," "hereunder" and other similar compounds of the word "herein" shall mean and refer to the entire Plan, not to any particular provision or section. I1 -7 ARTICLE III. Eligibility and Participation 3.1 Eligibility: An Employee, as defined in the Joinder Agreement, who has satisfied all the requirements set forth in the Joinder Agreement shall be eligible to participate in the Plan. Any person who has been classified by the Employer as an independent contractor and has had his compensation reported to the Internal Revenue Service on Form 1099 but who has been reclassified as an "employee" (other than by the Employer) shall not be considered as an eligible Employee who can participate under this Plan; provided, if the Employer does reclassify such worker as an "Employee," for purposes of this Plan, such reclassification shall only be prospective from the date that the Employee is notified by the Employer of such reclassification. 3.2 Entry Date: The participation of an Employee eligible to become a Participant shall commence on the earliest date permitted by the Employer in the Joinder Agreement. 3.3 Re- employment of Former Participants: Subject to Section 3.4, if a Participant incurs a Break in Service and is subsequently re- employed by the Employer, the Participant shall not receive any credit for his previous Period of Service with the Employer and such Participant shall be treated in the same manner as a person who has not previously been employed by any Municipality. 3.4 Re- employment of Retired or Fully Vested Participants: If a retired or fiilly vested Participant is re- employed by the Employer, no distributions shall be made from the Plan during the period of such re- employment.. Periods of Service prior to such Participant's retirement or termination of service, as applicable, shall count as Periods of Service for purposes of determining such Participant's vested interest in his Municipality Contribution Account. ARTICLE IV. Contributions 4.1 Contributions by Employer: The Employer shall make such contributions as set forth in the Joinder Agreement. Such contributions shall be made from the operating revenue of the current taxable year or from accumulated revenue or surplus, as appropriate. The contribution shall be determined by written action of the Employer stating the amount of such contribution, and by the payment of such stated amount to the Trustee monthly. Upon execution of the Joinder Agreement, the Employer will contribute one Dollar ($1.00) to establish the Fund. Any Participant who received Compensation from the Employer during the Valuation Period shall share in the Employer's contribution for the Valuation Period, even if not employed on the last day of the Valuation Period. All Participant contributions shall be transmitted monthly to the Trustee after being withheld by the Employer. The Trustee shall hold all such contributions, subject to the provisions of the Plan and Fund, and no part of these contributions shall be used for, or diverted to, any other purpose. 4.2 Required Participant Contributions: If the Employer so elects in the Joinder Agreement, Participants shall not be required to contribute to the Plan. 4.3 Mandatory Contributions: If the Employer so elects in the Joinder Agreement, a Participant shall contribute to the Plan for each Plan Year the percentage of his Compensation set forth in the Joinder Agreement. Mandatory Contributions shall be made by payroll deductions. The Participant shall authorize such deductions in writing on forms approved by, and filed with, the Committee. 4.4 Voluntary Nondeductible Contributions by Participants: Subject to the limitations of Sections 5.11 and to such riles of uniform application as the Committee may adopt, each Participant who is legally domiciled in the State of Oklahoma may elect to make nondeductible contributions to the Plan. The contributions of such Participant after the Effective Date may be by payroll deduction, which the Participant shall authorize the Employer to make on written authorization forms designated by and filed with the Committee, or by cash payments by such Participant to the Trustee. The authorization to make contributions by payroll deductions shall be effective on the first day following the Committee's receipt of the payroll deduction authorization. In addition, a Participant may make Rollover Contributions notwithstanding the percentage limitations in the first sentence of this Section or the cash payment requirement of the second sentence of this Section. 4.5 Change of Rate of Voluntary Nondeductible Contributions by Participant: The Participant may change his rate of payroll deduction at any time between the minimum and maximum rates specified in Section 4.4, or he may discontinue his payroll deductions at any time. Any change of rate or discontinuance of payroll deductions shall be effective on the first payday following the receipt of written notice thereof by the Committee; provided, however, that not more than one change or discontinuance shall be made within a Plan Year unless otherwise stated by the Committee. IV-] The Participant must furnish the Committee at the time of any Participant Contribution or payroll deduction authorization an election designating the contribution as a Mandatory Contribution, Deductible Participant Contribution, or a Voluntary Nondeductible Contribution. 4.6 Participant Contributions Nonforfeitable: Each Participant who contributes hereunder shall have a nonforfeitable vested interest in that portion of the value of his own contributions not theretofore previously withdrawn by him. 4.7 Pick -up Contributions: If the Employer elects in the Joinder Agreement, all Participants shall be required as a condition of employment to make the contributions specified in the Joinder Agreement. These contributions shall be picked up and assumed by the Employer and paid to the Fund in lieu of contributions by the Participant. Such contributions shall be designated as Employer contributions for federal income tax purposes. Each Participant's Compensation will be reduced by the amount paid to the Fund by the Employer in lieu of the required contribution by the Participant. These contributions shall be excluded from the Participant's gross income for federal income tax purposes and from wages for purposes of withholding under Sections 3401 through 3404 of the Code in the taxable year in which contributed. No Participant shall have the option of receiving the contributed amounts directly as Compensation. Contributions made by the Employer under this election shall be designated as Participant contributions for purposes of vesting, determining Participant rights and Participant Compensation. [In order for the Employer to have reliance on whether the Pick -Up Contributions comply with Section 414(h)(2) of the Code, the Employer must obtain a private letter ruling from the Internal Revenue Service.] 4.8 Deferred Compensation Contributions: If the Employer elects in the Joinder Agreement and if such Employer adopted a cash or deferred feature before May 7, 1986, the following provisions shall apply: (a) Deferred Compensation Contributions Under Code Section 401(k): A Participant, by written notice to the Plan Administrator during the time period set forth in the Joinder Agreement, may elect to make a Deferred Compensation Contribution to the Plan rather than receive Compensation to which the Participant would otherwise be entitled during the period immediately following such election. Subject to the limitations of this Section 4.8 and Section 5.11, a Participant's Deferred Compensation Contribution may be any whole percentage of his Compensation, but in no case shall a Participant's Deferred Compensation Contribution election exceed the percentage set forth in the Joinder Agreement. Such election shall be binding until the Participant, by written notice to the Plan Administrator, modifies or discontinues his Deferred Compensation Contribution. Such modification or discontinuance shall be effective at the beginning of the Plan Year immediately following the Plan Administrator's receipt of the Participant's written notice of modification or discontinuance. Employer contributions made pursuant to this Section 4.8 shall be credited to the Participant's Participant Deferred Compensation Account. All such Employer contributions shall be paid to the Trustee as soon as practicable following the retention of such amounts by the Employer from the Participant's Compensation. N -2 Effective as of the first day of the first Plan Year beginning after December 31, 2001, no Participant shall be permitted to have elective deferrals of Deferred Compensation Contributions made Under this Plan, or any other qualified plan maintained by the Employer during any taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect for such taxable year, except to the extent permitted under Section 4.8(b) of this Plan. In the case of a Participant aged 50 or over by the end of the taxable year, the dollar limitation as described in the preceding sentence includes the amount of elective deferrals that can be Catch -Up Contributions. (b) Catch -up Contributions: For Plan Years beginning after December 31, 2001, all employees who are eligible to make Deferred Compensation Contributions under this Plan and who have attained age 50 before the close of the Plan Year shall be eligible to make Catch - Up Contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Catch -Up Contributions are Deferred Compensation Contributions made to the Plan that are in excess of an otherwise applicable Plan limit and that are made by Participants who are age 50 or over by the end of their taxable years. An otherwise applicable Plan limit is a limit in the Plan that applies to Deferred Compensation Contributions without regard to Catch -Up Contributions, such as the limit on Annual Additions and the Code Section 402(g) limit. Such Catch -Up Contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Sections 402(8) and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such Catch -Up Contributions. (c) Roth Elective Deferrals: (i) General Application. (1) If elected by the Employer in the Joinder Agreement, this Subsection (c) will apply to Contributions beginning with the effective date specified in the adoption agreement but in no event before the first day of the first taxable year beginning on or after January 1, 2006. (2) As of the effective date under Subsection (1), the Plan will accept Roth elective deferrals made on behalf of Participants. A Participant's Roth elective deferrals will be allocated to a separate account maintained for such deferrals as described in Subsection (n). (3) Unless specifically stated otherwise, Roth elective deferrals will be treated as elective deferrals for all purposes under the Plan. (ii) Separate Accounting. (1) Contributions and withdrawals of Roth elective deferrals will be credited and debited to the Roth elective deferral account maintained for each Participant. (2) The Plan will maintain a record of the amount of Roth elective deferrals in each Participant's account. TV-3 (3) Gains, losses, and other credits or charges must be separately allocated on a reasonable and consistent basis to each Participant's Roth elective deferral account and the Participant's other accounts under the Plan. (4) No contributions other than Roth elective deferrals and properly attributable earnings will be credited to each Participant's Roth elective deferral account. (iii) Direct Rollovers. (1) Notwithstanding Section 9.5, a direct rollover of a distribution from a Roth elective deferral account under the Plan will only be made to another Roth elective deferral account under an applicable retirement plan described in § 402A(e)(1) or to a Roth IRA described in Code Section 408A, and only to the extent the rollover is permitted under the rules of Code Section 402(c). (2) Notwithstanding Section 9.5, if elected by the Employer in the Joinder Agreement, the Plan will accept a rollover contribution to a Roth elective deferral account only if it is a direct rollover from another Roth elective deferral account under an applicable retirement plan described in Code Section 402A(e)(1) and only to the extent the rollover is permitted under the riles of Code Section 402(c). (3) The Plan will not provide for a direct rollover (including an automatic rollover) for distributions from a Participant's Roth elective deferral account if the amount of the distributions that are eligible rollover distributions are reasonably expected to total less than $200 during a year. In addition, any distribution from a Participant's Roth elective deferral account is not taken into account in determining whether distributions from a Participant's other accounts are reasonably expected to total less than $200 during a year. However, eligible rollover distributions from a Participant's Roth elective deferral account are taken into account in determining whether the total amount of the Participant's account balances under the Plan exceeds $1,000 for purposes of mandatory distributions from the plan. (iv) Definition. (1) Roth Elective Deferrals. A Roth elective deferral is an elective deferral that is: a. Designated irrevocably by the Participant at the time of the cash or deferred election as a Roth elective deferral that is being made in lieu of all or a portion of the pre -tax elective deferrals the Participant is otherwise eligible to make under the plan; and b. Treated by the Employer as includible in the Participant's income at the time the Participant would have received that amount in cash if the Participant had not made a cash or deferred election. T`' -4 ARTICLE V. Accounting, Allocation and Valuation 5.1 Accounts: The Committee shall maintain a separate Municipality Contribution Account, Participant Nondeductible Contribution Account, Participant Mandatory Contribution Account, Participant Deductible Contribution Account, Participant Rollover Account, Participant Deferred Compensation Contribution Account, Catch -Up Contribution Account, Pick -Up Contributions Account and Loan Account as necessary for each Participant. A separate sub- account for each such Account shall be maintained for each Investment Option offered in accordance with Section 5.12. All such Accounts shall be credited or debited as herein provided. 5.2 Eligibility for Allocation: Employer contributions together with Amounts Forfeited as of the Valuation Date shall be allocated to the Municipality Contribution Accounts of Participants. 5.3 Allocation of Contribution: The Employer contributions, together with Amounts Forfeited as of the prior Valuation Date shall be allocated in the manner elected by the Employer in the Joinder Agreement. 5.4 Allocation of Amounts Forfeited: No Amount Forfeited attributable to the contribution of one Employer adopting this Plan may be allocated for the benefit of Participants of the Plan of any other adopting Employer. 5.5 Valuation Date Adjustment: Each Account within each Investment Option of the Trust Fund shall be adjusted during the Valuation Period by decreasing its balance by the amount of any withdrawal, transfer, or forfeiture which is made from it, and by increasing its balance by the amount of any transfer, contribution, or other interim addition which is made to it. On the Valuation Date, the Account balances shall be credited with the appropriate amount of Employer Contributions and Amounts Forfeited. 5.6 Allocation of Investment Earnings and Losses: On the Valuation Date, each Account shall be allocated a proportionate share of the earnings or losses (including unrealized gains and losses) for the Valuation Period, separately for each Investment Option of the Trust Fund, The Administrator shall determine the amount of earnings and losses for the fund of each Investment Option based upon the Trustee's statements of the fair market value of the fund of each Investment Option on the Valuation Dates. On the Valuation Date the earnings and losses shall be allocated to each Account based upon the proportion that its weighted account balance bears to the total of all weighted balances. The weighted balances are calculated by first adjusting the balances as of the prior Valuation Date for transfers between Investment Options. The adjusted balances are then weighted greater with one -half of any partial distribution or partial withdrawal made from them during the Valuation Period and are weighted lesser with one -half of any rollover, or contribution made to them during the Valuation Period. This weighting allows rollovers, contributions, and partial distributions to share in the earnings and losses as if one -half of these amounts were included in the Account balances for the entire period. Total distributions of Account balances never share in the earnings or losses of the Valuation Period in which they are made. V -1 5.7 Accounting for Participants' Contributions: Contributions by or on behalf of each Participant shall be credited to his Participant Nondeductible Contribution Account, Participant Mandatory Contribution Account, Participant Deductible Contribution Account, Catch -Up Contribution Account or Participant Deferred Compensation Contribution Account as deposited with the Trustee. 5.8 Accounting for Statement of Account: As soon as is administratively feasible, the Committee shall present to each Participant a statement of such Participant's Accounts, at least annually, showing the balances at the beginning of the reported period, any changes during the reported period, the balances at the end of the reported period, and such other information as the Committee may determine. However, neither the maintenance of accounts, the allocations to Accounts, nor the statements of account shall operate to vest in any Participant any right or interest in or to the Fund except as the Plan specifically provides herein. 5.9 Time of Adjustment: Each adjustment required by this Article V shall be deemed to have been made at the times specified in this Article V, regardless of the dates of actual entries or receipts by the Trustee of contributions for such Plan Year. 5.10 Special Valuation Date: If the Committee determines that a substantial change in the value of any Investment Fund has occurred since the last Valuation Date, the Committee may, prior to the next Valuation Date, establish one or more Special Valuation Dates and determine the adjustment required to make the total net credit balance in the Accounts of the then Participants equal to the then market value of the total assets of the Fund. Such adjustments shall be made consistent with the procedure specified in section 5.5. Having determined such adjustment, all distributions which are to be made as of or after such special Valuation Date, but prior to the next succeeding Valuation Date or Special Valuation Date, shall be made as if the net credit balances in all Accounts had actually been credited or debited to reflect the adjustment provided by this Section. 5.11 Maximum Annual Additions: This Section shall be effective as of the first day of the first Plan Year beginning after December 31, 2001 unless otherwise stated. Except to the extent permitted under Section 4.8(b) of this Plan and Section 414(v) of the Code, if applicable, the Annual Addition that may be contributed or allocated to a Participant's Account under the Plan for any limitation year shall not exceed the lesser of (a) $40,000, as adjusted for increases in the cost -of- living under Section 415(d) of the Code, or (b) 100% of the Participant's Compensation, within the meaning of Section 2.1(m) of the Plan and Section 415(c)(3) of the Code, for the limitation year. The compensation limit referred to in (b) shall not apply to any contribution for medical benefits after separation from service (within the meaning of Section 401(h) or Section 419A(1)(2) of the Code) which is otherwise treated as an annual addition. - When such Annual Additions, if made, would exceed the limitation, and such excess annual additions were the result from contributions based on estimated annual compensation, the allocation of forfeitures, or a reasonable error in determining the amount of elective deferrals �' -2 under Code Section 402(g)(3), such excess shall be reduced, to the extent possible, by withdrawal by the Participant of voluntary nondeductible contributions and the earnings attributable thereto. If any excess amount remains after the return of the Participant's voluntary nondeductible contributions, such excess shall be reallocated to eligible Participants as an Amount Forfeited for the Plan Year, provided that if any excess remains after such reallocation or reallocations because of the limitation provided herein, such excess shall be held in a separate Account and shall be allocated as an Amount Forfeited in the first Valuation Period the following Plan Year(s) if such allocation would not exceed the limitation provided herein. If the Participant participates in more than one defined contribution plan of the Employer and Annual Additions under all such plans exceed the maximum indicated above, such excess amounts shall be reduced first under this Plan and then to the extent necessary, from the other defined contribution plans. For purposes of this Section 5.11, "Annual Additions" means the sum credited to a Participant's Accounts for any limitation year of (1) Employer contributions, (2) Participant contributions, (3) forfeitures, (4) amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code section 415(1)(2) which is part of a pension or annuity plan maintained by the Employer and (5) amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post- retirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit plan (as defined in Code Section 419(e)) maintained by the Employer. Except, however, the "415 Compensation" percentage limitation referred to in Subsection (b) above shall not apply to (1) any contribution for medical benefits (within the meaning of Code Section 419A(f)(2)) after separation from service which is otherwise treated as an annual addition, or (2) any amount otherwise treated as an annual addition under Code section 415(1)(1). 5.12 Investment Options: (a) Self- Directed: If the Employer elects in the Joinder Agreement, each Participant in the Plan is hereby given the specific authority to direct the investment of all or any portion of his Accounts in one or more Investment Options provided under this Plan in accordance with the procedures established by the Committee. If a Participant does not designate an Investment Option for his Accounts, his Accounts will be invested in the Balanced Fund or such other Investment Option as may be designated by the Trustees. For purposes of this Section, the Participants shall be exercising full investment control, discretion, authority and fiduciary responsibility as provided in this Plan of the investments in such Participants' applicable Accounts. (b) Non - Self - Directed: If the Employer does not elect in the Joinder Agreement to allow self - directed investments, all Accounts will be invested in the Balanced Fund or such other Investment Option as may be designated by the Trustees. ARTICLE VI. Benefits 6.1 Retirement or Disability: If a Participant's employment with the Employer is terminated when he attains age sixty -five (65), or if a Participant's employment is terminated at an earlier age as the result of a Total and Permanent Disability, he shall be entitled to receive the entire amount of his Municipality Contribution Account. 6.2 Deferred Retirement: If a Participant, with the consent of the Employer, shall continue in active employment following his Normal Retirement Date, he shall continue to participate under the Plan. Upon actual retirement, such Participant shall be entitled to receive the entire amount of his Municipality Contribution Account as of his actual retirement date. 6.3 Death of a Participant: Upon the death of a Participant, his Beneficiary shall be entitled to receive the entire amount of his Municipality Contribution Account and Participant Contribution Accounts as of the date of his death. 6.4 Termination for Other Reasons - Vested Percentage: If a Participant's employment with the Employer is terminated before his Normal Retirement Date for any reason other than Total and Permanent Disability or death, except as provided in Section 6.12 hereof, he shall be entitled to an amount equal to the vested percentage of his Municipality Contribution Account. Such vested percentage shall be determined as of the date of termination in accordance with the election of the Employer in the Joinder Agreement. 6.5 Initial Distribution Date: The date of initial distribution ( "Initial Distribution Date ") of a Participant whose employment is terminated shall be the first day of the month next following his termination of employment and he shall be entitled to the vested percentage of his Accounts on such Initial Distribution Date payable in accordance with the provisions of Section 6.10. The portion of the Employer's contribution, the Amounts Forfeited or the periodic adjustment which is allocated to a Participant terminated for the reasons specified in this Section 6.5 after such Initial Distribution Date shall be payable in accordance with the method utilized under Section 6.10 as soon as practicable. 6.6 Determination of Amounts Forfeited: Upon a distribution pursuant to Section 6.4 or if the Participant incurs a Break in Service, the forfeited percentage of a Participant's Municipality Contribution Account, if any, shall be deducted from the Participant's Account. Such Amounts Forfeited shall become available for allocation in accordance with Item 8 of the Joinder Agreement as of the end of the calendar quarter following the Valuation Period in which the terminated Participant forfeited such amounts. 6.7 Participant Contribution Accounts: A Participant shall' be fully vested in his Participant Contribution Accounts at all times. A Participant's Contribution Account balances shall be paid to him in connection with the distribution to him of the vested portion of his Municipality Contribution Account on or after his Initial Distribution Date. Such distributions shall be made in accordance with Section 6.10 and Section 6.8. 6.8 Withdrawals From Participant's Contribution Accounts: In accordance with the provisions hereof, a Participant may withdraw all or any part of his Participant Contribution VIA accounts by filing a written application with the Administrator. Such withdrawal shall be effective no sooner than thirty (30) but not later than ninety (90) days after such written application is filed with the Plan Administrator. A Participant who withdraws all or part of his Participant Contribution Account balances shall not forfeit his proportionate share of net income, gains and profits, if any, for the Valuation Periods previously allocated to his Participant Contribution Accounts, nor any portion of his Municipality Contribution Account but the Participant's Contribution Accounts shall not share (to the extent of any withdrawals) in any net income for the Valuation Period in which the withdrawal occurs. (a) Participant Deductible Contribution Account: If allowed in the Joinder Agreement, a Participant may withdraw all or any part of his Participant Deductible Contribution Account (but not to exceed the amount in his Participant Deductible Contribution Account at the time of withdrawal) by filing a written application with the Plan Administrator. Such withdrawal may be made no more often than once a year. If at the time of the withdrawal the Participant has not attained age 59'/2 or is not Totally and Permanently Disabled, the Participant will be subject to a federal income tax penalty unless such withdrawal is rolled over to a qualified plan or individual retirement account within sixty (60) days of the date of distribution. (b) Participant Nondeductible Contribution Account: A Participant may withdraw all or any part of his Participant Nondeductible Contribution Account by filing a written application with the Plan Administrator. (c) Participant Deferred Compensation Contribution Account: Notwithstanding any other provision of this Plan, no amount in a Participant's Deferred Contribution Account may be distributed to a Participant earlier than such Participant's retirement, death, Total and Permanent Disability, or separation from service. The above distribution requirements shall be strictly interpreted by the Plan Administrator to conform with the requirements of Section 401(k) of the Code and firture amendments or Internal Revenue Service interpretations thereof. If a Participant is allowed to withdraw from his Participant Deferred Compensation Contribution Account, the provisions of this Section 6.8 shall apply to such withdrawals. 6.9 Withdrawals from Participant's Mandatory Contribution Account: A Participant may not withdraw any portion of his Participant Mandatory Contribution Account prior to the termination of his employment. Such account balances will be paid at the same time and in the same manner as such Participant's Municipality Contribution Account. 6.10 Methods of Distribution: On and after each Participant's Initial Distribution Date, after all adjustments to his Accounts required as of such date shall have been made, distribution of his share shall be made to or for the benefit of the Participant or, in case of his death, to or for the benefit of his Beneficiary, by one of the following methods, as determined by the Committee: (a) a hunp sum. distribution; (b) an installment distribution consisting of approximately equal installments for a term not exceeding ten (10) years; VT-? t. (c) an installment distribution consisting of approximately equal installments for a term not extending beyond the joint life expectancy (as calculated in accordance with Income Tax Regulation section 1.72 -9) on the Initial Distribution Date of the Participant and his spouse; or (d) periodic distributions as designated by the Participant or Beneficiary. Commencement of payments under the method of distribution selected shall be as of the initial Distribution Date of the Participant, provided that for administrative convenience, such commencement may be delayed as reasonably necessary but in no event for more than sixty (60) days after a reasonable time for all administrative calculations, allocations and accounting operations necessary to determine the amount of the distribution. The Committee, in its sole discretion, may accelerate the payment of any unpaid installments. If a former Participant receiving installment payments dies prior to the receipt by him of the full amount to be paid to him from his Participant Accounts, the remaining installments shall be paid to his Beneficiary. Under no circumstance may a method of payment be elected that would be expected to cause more than fifty percent (50 %) of the present value of any series of payments to go to a person other than the Participant. 6.11 Designation of Beneficiary: Each Participant shall designate his Beneficiary on a form provided by the Committee and such designation may include primary and contingent Beneficiaries. If Participant designates more than one Beneficiary, each shall share equally unless the Participant specifies a different allocation. The designation may be changed at any time by filing a new form with the Committee. In the absence of such written designation, the surviving spouse, if any, of the Participant shall be deemed to be the designated Beneficiary, and otherwise the estate of such Participant. In all events, the date of determination of a Participant's Beneficiary shall be the date of death of a Participant. Production of a certified copy of the death certificate of any Participant or other persons shall be sufficient evidence of death, and the Committee shall be fully protected in relying thereon. 6.12 Loss of Benefits for Cause: In the event a Participant is discharged because of embezzlement, fraud, dishonesty, or misappropriation of the Employer's property, and the reasons for such discharge are confirmed by resolution of the City Council after such Participant is afforded an opportunity to be heard, neither he, nor his Beneficiary, shall be entitled to receive any benefit hereunder, other than his Participant Contribution Accounts and Participant Rollover Account, as of the date of his discharge, regardless of his age and service on the date of his discharge. Likewise, such benefits to which any retired Participant or his Beneficiary, or the Beneficiary of a deceased Participant would otherwise be entitled under this Plan, shall be forfeited upon discovery, even after termination of employment or death, of any such embezzlement, fraud, dishonesty, or misappropriation of the Employer's property, by the Participant against the Employer. 6.13 Payments Under a Qualified Domestic Relations Order: (a) The Municipality shall follow the terms of any "Qualified Domestic Relations Order" as defined in Subsection (b) below issued with respect to a Participant where such Qualified Domestic Relations Order grants to an "Alternate Payee" rights in the benefit of the Participant. V1- (b) The term "Qualified Domestic Relations Order" means an order issued by the District Court of the State of Oklahoma pursuant to the domestic relations laws of the State of Oklahoma which relates to the provision of marital property rights to a spouse or former spouse of a Participant and which creates or recognizes the existence of an Alternate Payee's right to, or assigns to an Alternate Payee the right to receive a portion of the benefits payable with respect to a Participant of the Plan. (c) To qualify as an Alternate Payee, a spouse or former spouse must have been married to the Participant for a period of not less than thirty (30) continuous months immediately preceding the commencement of the proceedings from which the Qualified Domestic Relations Order issues. (d) A Qualified Domestic Relations Order is valid and binding on the Trustees and the Participant only if it meets the requirements of this Section. (e) A Qualified Domestic Relations Order shall clearly specify: 1) the name, social secinity number, and last -known mailing address (if any) of the Participant, and the name and mailing address of the alternative payee covered by the order; 2) the amount or percentage of the Participant's benefits to be paid by the Plan to the Alternate Payee; 3) the characterization of the benefit as to marital property rights, and whether the benefit ceases upon the death or remarriage of the Alternate Payee; and, 4) each plan to which such order applies. (f) A Qualified Domestic Relations Order meets the requirements of this Section only if such order: 1) does not require the Plan to provide any type or form of benefit, or any option not otherwise provided Linder the Plan; 2) does not require the Plan to provide increased benefits; and, 3) does not require the payment of benefits to an Alternate Payee which are required to be paid to another Alternate Payee pursuant to another order previously determined to be a Qualified Domestic Relations Order, or an order recognized by the Plan as a valid order prior to the effective date of the Plan. (g) A Qualified Domestic Relations Order shall not require payment of benefits to an Alternate Payee prior to the actual retirement date of the related member. (h) In the event a Qualified Domestic Relations Order requires the benefits payable to an Alternate Payee to terminate upon the remarriage of said Alternate Payee, the Plan shall terminate said benefit only upon the receipt of a certified copy of a marriage license, or a copy of a V1-4 certified order issued by the Court that originally issued said Qualified Domestic Relations Order declaring the remarriage of said Alternate Payee. (i) This Section of the Plan shall not be subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. Section 1001, et seq., as amended from time to time, or rules and regulations promulgated thereunder, and court cases interpreting said Act. (j) The Board of Trustees of the Oklahoma Municipal Retirement Fund shall promulgate such rules as are necessary to implement the provisions of this Section. (k) An Alternate Payee who has acquired beneficiary rights pursuant to a valid Qualified Domestic Relations Order must fully comply with all provisions of the rules promulgated by the Trustees pursuant to this Section in order to continue receiving his or her benefits. (1) Nothing in this Section shall grant a spouse or former spouse of a Participant any property rights in the benefits of any Participant except as specifically authorized for Qualified Domestic Relations Orders, and no spousal consent shall be required for a Participant to elect or change elections pertaining to a benefit payable under this Plan. 6.14 Loans to Participants: (a) General: The Committee, in its sole discretion, may direct Trustees to make loans to Participants upon the written direction and application of the Participant who desires to effect such loan, up to 50% of the vested balance of a Participant's Accounts. All such loans (i) shall not be made available to Highly Compensated Employees (as defined in Section 414(q) of the Code) in an amount greater than the amount made available to other Employees, (ii) shall be available to all Participants on a nondiscriminatory basis, (iii) shall be made available in an amount equal to the lesser of 50% of the borrowing Participant's vested Benefit in his Account or $50,000, (iv) shall bear a reasonable rate of interest which will be established by the Committee, (v) shall be secured by the borrowing Participant's Benefit account balance attributable to his Account, (vi) shall be amortized and repaid in level payments of principal and interest made not less frequently than monthly over the term of the loan, (vii) shall be repaid by payroll reduction while the Participant is employed; (viii) shall accelerate and be due in full on the date a Participant terminates employment with the Employer; (ix) shall not be less than $1,000 in amount each; and (x) shall be made upon such other reasonable terms which the Committee shall designate, such terms being applied in a nondiscriminatory fashion; provided, in no event shall any loan have a term in excess of five years. There shall not be more than one loan outstanding at any time with respect to a Participant. No Participant who has borrowed from the Plan may make another loan until the previous loan has been fully repaid. Outstanding loans are not subject to refinancing by a new loan. Upon direction by the Committee, and subject to Subsection (c) below, the Trustees may foreclose upon such Participant's interest in his Account in the event of default. A loan to a Participant, when added to the outstanding balance of all other loans to the Participant from the Plan and other plans sponsored by the Employer, cannot exceed $50,000, reduced by the excess of the highest outstanding balance of loans from the Plan (and all other plans sponsored by the Employer) during the one -year period ending on the day before the date the loan is made over the outstanding balance of the loans from vf_- the Plan on the date the loan is made. No distribution of a Benefit shall be made to any Participant, Beneficiary or the estate of a Participant unless and until all unpaid loans made by the Plan to such Participant together with accrued interest have been paid in full. In determining if any of the foregoing limitations regarding the making of loans to Participants, loans made under all other plans (i) sponsored by the Employer and (ii) qualified under Sections 401(a) and 501(a) of the Code will be considered. All costs and expenses of any loan will be charged to the applicable Accounts of the Participant. (b) Establishment of Loan Account: At such time as it is determined that a Participant is to receive a loan from the Plan, the loan shall be made from the Participant's applicable Account in the order and precedence indicated hereafter and such amount shall be deemed to be credited to the Participant's Loan Account with a corresponding debit to occur to his Account as of the first day of the month in which such loan occurs: (i) first, an Account holding Employer contributions, including "rollover contributions" (other than Deferred Compensation Contributions, if applicable); (ii) second, an Account holding Deferred Compensation Contributions, if applicable; and (iii) third, an Account holding contributions picked up and assumed by the Employer pursuant to Section 4.7 of this Plan. All interest payments to be made pursuant to the terms and provisions of the loan shall be credited to the applicable Account in such a manner so that the Loan Account will reflect unpaid principal and interest from time to time. The earnings attributable to the Loan Account shall be allocable only to the Loan Account of such Participant and shall not be considered as general earnings of the Trust Fund to be allocated to the other Participants therein as provided herein. Other than for the limited purposes of establishing a separate account for the allocation of the interest thereto, a_ Participant's Loan Account shall, for all other purposes, be considered as part of his applicable Account. (c) Foreclosure of Loan Account: The Trustees may foreclose upon such Participant's interest in his Account in the event of default under the loan made to the Participant under this Section. (d) Special Restrictions on Foreclosure: In the event of default under a loan made under this Section, foreclosure under the promissory note evidencing such loan and attachment of the Participant's interest in his applicable Accounts shall occur within a reasonable time following the event of default; provided, with respect to any portion of a loan secured by amounts governed under Section 401(k) of the Code, if applicable, foreclosure on such 401(k) amounts shall not occur until the occurrence of an event described under Section 401(k) of the Code which would otherwise permit a distribution to be made from the Plan. (e) Establishment of Loan Program: The Trustees are hereby authorized and directed to establish a "loan program" (the "Loan Program ") and the Trustees are further authorized to delegate to the Committee the duties and responsibilities with regard to the implementation of the Loan Program as adopted by the Trustees for and on behalf of the Plan. The Loan Program shall be considered to be a part of this Plan for the purposes stated in the Loan Program. vr_r (1) Loan Account: The words "Loan Account" shall mean a Participant's separate .Account established in the event he desires to make a loan from his applicable Account as provided in this Section 6.14. 6.15 Required Minimum Distributions: The provisions of this Section 6.15 will apply for purposes of determining Required Minimum Distributions for distribution calendar years beginning with the 2003 calendar year, as well as Required Minimum Distributions for the 2002 Distribution Calendar Years that are made on or after August 1, 2002. The requirements of this Section will take precedence over any inconsistent provisions of the Plan. All distributions required under this Section will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code. Notwithstanding the other provisions of this Section, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA. (a) Coordination with Minimum Distribution Requirements Previously in Effect: If this Section specifies an effective date that is earlier than calendar years beginning with the 2003 calendar year, Required Minimum Distributions for 2002 under this Section will be determined as follows. If the total amount of 2002 Required Minimum Distributions under the Plan made to the distributee prior to the effective date of this Section equals or exceeds the Required Minimum Distributions determined under this Section, then no additional distributions will be required to be made for 2002 on or after such date to the distributee. If the total amount of 2002 Required Minimum Distributions under the Plan made to the distributee prior to the effective date of this Section is less than the amount determined under this Section, then Required Minimum Distributions for 2002 on and after such date will be determined so that the total amount of Required Minimum Distributions for 2002 made to the distributee will be the amount determined under this Section. (b) Time and Manner of Distribution: (i) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's Required Beginning Date. For purposes of this Section, the "Required Beginning Date" of a Participant is the April I of the calendar year following the calendar year in which the Participant attains age 70%2 or retires. (ii) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (1) If the Participant's surviving spouse is the Participant's sole designated Beneficiary, then, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70%2, if later. V1 -7 (2) If the Participant's surviving spouse is not the Participant's sole designated Beneficiary, then, distributions to the designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (3) If there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (4) If the Participant's surviving spouse is the Participant's sole designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Subsection (ii), other than Subsection (ii)(1), will apply as if the surviving spouse were the Participant. For purposes of this Subsection (ii) and Subsection (iv), unless Subsection (ii)(4) applies, distributions are considered to begin on the Participant's Required Beginning Date. If Subsection (ii)(4) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Subsection (ii)(4). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's Required Beginning Date (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under Subsection (ii)(4)), the date distributions are considered to begin is the date distributions actually commence. (iii) Forms of Distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first distribution calendar year distributions will be made in accordance with Subsections (c) and (d) of this Section. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations. (c) Required Minimum Distributions During Participant's Lifetime: (i) Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: (1) the quotient obtained by dividing the Participant's Account balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9) -9 of the Treasury regulations, using the Participant's age as of the Participant's birthday in the distribution calendar year; or (2) if the Participant's sole designated Beneficiary for the distribution calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's Account balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9) -9 of the Treasury regulations, using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the distribution calendar year. yr -u (ii) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this Subsection (c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death. (d) Required Minimum Distributions After Participant's Death: (i) Death On or After Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated Beneficiary, determined as follows: a. The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. b. If the Participant's surviving spouse is the Participant's sole designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the ( year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year. C. If the Participant's surviving spouse is not the Participant's sole designated Beneficiary, the designated Beneficiary's remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (2) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated Beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (ii) Death Before Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the remaining life expectancy of the Participant's designated Beneficiary, determined as provided in Subsection (i). Vf -9 (2) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (3) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole designated Beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Subsection (b)(ii)(1), this Section 6.15 will apply as if the surviving spouse were the Participant. (e) Definitions: (i) Designated Beneficiary. The individual who is designated as the Beneficiary under Section 6.11 of the Plan and is the designated Beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9) -4 of the Treasury regulations. (ii) Distribution Calendar Year. A Calendar Year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution Calendar Year is the calendar year immediately preceding the Calendar Year which contains the Participant's Required Beginning Date. For distributions beginning after the Participant's death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Subsection (b)(ii). The Required Minimum Distribution for the Participant's first Distribution Calendar Year will be made on or before the Participant's Required Beginning Date. The Required Minimum Distribution for other Distribution Calendar Years, including the Required Minimum Distribution for the Distribution Calendar Year in which the Participant's Required Beginning Date occurs, will be made on or before December 31 of that distribution calendar year. (iii) Life Expectancy. Life Expectancy as computed by use of the Single Life Table in Section 1.401(a)(9) -9 of the Treasury regulations. (iv) Participant's Account Balance. The Account Balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account Balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The Account Balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. 6.16 Withdrawals from Participant Rollover Account: A Participant may request and receive a distribution from his Participant Rollover Account at any time, even if he or she has not terminated employment, unless the rollover was from a defined benefit retirement plan sponsored by the Employer. VI-in ARTICLE VII. Notices 7.1 Notice to Oklahoma Municipal Retirement Fund: As soon as practicable after a Participant ceases to be in the employ of the Employer, the Committee shall give written notice to the Oklahoma Mumicipal Retirement Fund. The notice shall include such of the following information and directions as are necessary or advisable under circumstances: (a) name and address of the Participant; (b) reason he ceased to be in the Employer's employ; (c) name and address of the Beneficiary or Beneficiaries in case of Participant's death; (d) percentage or amount to which such Participant is entitled in case of termination of employment; (e) time, manner and amount of payments to be made to such Participant; and (f) information required to complete the Trustee's Withholding Election Form. As soon as practicable after the Committee learns of the death of a Participant, it shall give like notice to the Oklahoma Municipal Retirement Fund. 7.2 Subsequent Notices: At any time and from time to time after giving the notice as provided for in Section 7.1, the Committee may modify such original notice or any subsequent notice by means of a further written notice or notices to the Oklahoma Municipal Retirement Fund, but any action taken or payments made by the Oklahoma Municipal Retirement Fund pursuant to a prior notice shall not be affected by a subsequent notice. 7.3 Copy of Notice: A copy of each notice provided for in Sections 7.1 and 7.2 shall be mailed by the Committee to the Participant or to each Beneficiary involved, as the case may be, but if, for any reason, such copy is not sent or received, that fact shall not affect the validity of any notice to the Oklahoma Municipal Retirement Fund nor the validity of any action taken or payment made pursuant thereto. 7.4 Reliance Upon Notice: Upon receipt of any notice as provided in this Article VII, the Oklahoma Municipal Retirement Fund shall promptly take whatever action and make whatever payments are called for therein, it being intended that the Oklahoma Municipal Retirement Fund may rely upon the information and directions in such notice absolutely and without question. However, the Oklahoma Municipal Retirement Fund may call to the attention of the Committee any error or oversight which the Oklahoma Municipal Retirement Fund believes to exist in any notice. I'll -1 ARTICLE VIII. Amendment and Termination 8.1 Termination of Plan: The Employer may at any time, effective as specified, terminate the Plan and may direct and require the Oklahoma Municipal Retirement Fund to liquidate the Fund. In the event the Employer shall for any reason cease to exist, the Plan shall terminate and the Fund shall be liquidated. In the event of the termination, partial termination, or complete discontinuance of contributions hereunder, the Account balances of each Participant will become nonforfeitable. 8.2 Suspension and Discontinuance of Contributions: If the governing body of the Employer decides it is impossible or inadvisable to continue to make contributions to the Plan, it shall have the power by appropriate resolution or decision to: (a) suspend contributions to the Plan; (b) discontinue contributions to the Plan; or (c) terminate the Plan. Suspension shall be a temporary cessation of contributions and shall not constitute or require a termination of the Plan. A discontinuance of contributions shall not constitute a formal termination of the Plan and shall not preclude later contributions but all Municipality Contribution Accounts not theretofore fully vested shall become fully vested in the respective Participants notwithstanding the provisions of Section 6.4. In such event, Employees who become eligible to enter the Plan subsequent to the discontinuance shall receive no benefits. After the date of a discontinuance of contributions, the Trust shall remain in existence as provided in this Section 8.2 and the provisions of the Plan and Trust shall remain in force. A certified copy of such decision or resolution shall be delivered to the Oklahoma Municipal Retirement Fund, and as soon as possible thereafter the Oklahoma Municipal Retirement Fund shall send or deliver to each Participant or Beneficiary concerned a copy thereof 8.3 Liquidation of Trust Fund: Upon a complete termination or upon a partial termination of the Plan, unless the Employer's successor shall elect to continue the Plan, the Accounts of all Participants and Beneficiaries shall thereupon be and become fully vested. Upon a complete termination, the Oklahoma Municipal Retirement Fund shall convert the proportionate interest of such Participants and Beneficiaries in the Trust Fund to cash and, after deducting all charges and expenses, the Oklahoma Municipal Retirement Fund shall adjust the balances of such Accounts as provided in Section 5.5 treating the termination date as the current Valuation Date. Thereafter, the Oklahoma Municipal Retirement Fund shall distribute as soon as administratively feasible the amount to the credit of each such Participant and Beneficiary as the Committee shall direct. 8.4 Amendments: Each Employer agrees to adopt any amendments to this Plan which are necessary for an initial or continued determination that the Plan is a qualified, tax exempt plan tinder Sections 401(x) and 501(a) of the Code. Any such amendments will be an amendment of �. the Employer's separate Plan if approved by the Trustee. The Employer may amend its separate VIII -1 Plan in any respect and at any time, subject to the limitations of the Plan, by amendment of or addition to the Joinder Agreement. However, the Oklahoma Municipal Retirement Fund reserves the right to approve all Employer amendments. 8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers: The effective date of this Section is the date of the IRS advisory letter. The Volume Submitter Practitioner (the "Practitioner ") will amend the Plan on behalf of all adopting employers, including those employers who have adopted the Plan prior to this amended and restated Plan, for changes in the Code, regulations, revenue rulings, other statements published by the Internal Revenue Service, including model, sample or other required good faith amendments, but only if their adoption will not cause the Plan to be individually designed, and for corrections of prior approved plans. These amendments will be applied to all employers who have adopted the Plan. The Practitioner will no longer have the authority to amend the plan on behalf of any adopting employer as of either: (1) the date the Internal Revenue Service requires the employer to file Form 5300 as an individually designed plan as a result of an employer amendment to the Plan to incorporate a type of plan not allowable in the Volume Submitter program, as described in Rev. Proc. 2005 -16, or (2) as of the date the Plan is otherwise considered an individually designed plan due to the nature and extent of the amendments. If the Employer is required to obtain a determination letter for any reason in order to maintain reliance on the advisory letter, the Practitioner's authority to amend the Plan on behalf of the adopting employer is conditioned on the Plan receiving a favorable determination letter. ( The Practitioner will maintain, or have maintained on its behalf, a record of the employers that have adopted the Plan, and the Practitioner will make reasonable and diligent efforts to ensure that adopting employers have actually received and are aware of all Plan amendments and that such employers adopt new documents when necessary. This Section supersedes other provisions of the Plan to the extent those other provisions are inconsistent with this Section. V1II -2 ARTICLE IX. Employment Transfers 9.1 Transfers from This Plan: (a) To Another Category with This Employer: If a Participant is employed by the Employer and is transferred to employment with this Employer but under another department, classification or category, so that he is no longer eligible to participate in this Plan, such participation shall thereupon cease and his Account balance shall remain in the Fund and will continue to accrue interest but he will not continue to accrue Service for the purpose of additional vesting credit for benefits tinder this Plan. (b) To Another Municipality: If a Participant's employment by the Employer is terminated by virtue of his transfer to employment with another Municipality, his membership in this Plan shall thereupon cease and he shall be subject to the following rules and requirements relating to this Plan and his right and benefits hereunder, to -wit: (i) if he is eligible for a distribution under this Plan as of the date of such employment transfer, such transfer shall be treated as his termination of employment and thereupon he shall be entitled to his distribution; or (ii) if he is not eligible for a distribution under this Plan as of the date of such employment transfer, and he is, immediately upon such transfer of employment, covered by the retirement system under which such other Municipality participates in the Oklahoma Municipal t Retirement Fund, his Account balance shall remain in the Fund and will continue to accrue interest, and he will continue to accrue Service for the purpose of additional vesting credit for benefits under this Plan. 9.2 Transfers to This Plan: (a) From Another Category with This Employer: If a person becomes a Participant immediately upon his transfer from full -time, regular employment with this Employer under another department, classification or category where he is ineligible for membership only because of the type of such employment, his Service accrued by virtue of such prior employment shall not be counted in determining his vesting credit for benefits hereunder. (b) From Another Municipality: If a person becomes a Participant immediately upon his transfer from full -time, regular employment with a Municipality other than this Employer, his Service accrued by virtue of such prior employment shall be counted in determining his vesting credit for benefits hereunder, and he shall also be subject to all the other provisions of this Plan. A Participant's eligibility for membership under this Plan will be determined by applying the eligibility requirements in the Joinder Agreement as though the date which his credited Service from the other Municipality began was his date of employment with this Employer. . (c) Previously Fully Vested With Another Municipality: With respect to a Participant who was previously 100% vested in any other Municipality's qualified retirement plan prior to becoming a Participant in this Plan, such Participant's "Service" for purposes of I\_1 determining years of service for vesting under this Plan shall include the Participant's last ( continuous period during which the Participant was an employee of the other Municipality. 9.3 Notice of Transfers: Immediately after any transfer of employment referred to in Sections 9.1 or 9.2, the transferred Participant shall give written notice of such transfer to the Authorized Agent on a form furnished by the Authorized Agent. Such Participant shall not be penalized, however, for failure to give such notice. The Authorized Agent shall give immediate notice in writing of such transfers to the Trust Service Provider and the Committee. 9.4 Transfer from Other Qualified Plans: The Employer may cause to be transferred to the Oklahoma Municipal Retirement Fund all or any of the assets held in respect to any plan or trust which satisfied the applicable requirements of the Code relating to qualified plans and trusts, which is maintained by the Employer for the benefit of its Employees. Any such assets so transferred shall be accompanied by written instructions from the Employer, or the trustee or custodian or the individual holding such assets, setting forth the Participants for whose benefit such assets have been transferred and showing separately the respective contributions by the Employer and by the Participants and the current value of the assets attributable thereto. Upon receipt of such assets and instructions the Oklahoma Municipal Retirement Fund shall thereafter proceed in accordance with the provisions of the Fund. 9.5 Rollover Contributions: A Participant who is or was entitled to receive an eligible rollover distribution, as defined in Code Section 402(c)(4) and Treasury Regulations issued thereunder, from a qualified plan described in Section 401(a) or 403(a) of the Code (including after -tax employee contributions), an annuity contract described in Section 403(b) of the Code (including after -tax employee contributions, or an eligible plan under Section 457(b) of the Code 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, or an individual retirement account may elect to contribute all or any portion of such distribution to the Trust directly from such qualified plan, annuity contract or eligible plan, or within 60 days of receipt of such distribution to the Participant. Rollover Contributions shall only be made in the form of cash, or, if and to the extent permitted by the Employer with the consent of the Trustee, promissory notes evidencing a plan loan to the Participant; provided, however, that Rollover Contributions shall only be permitted in the form of promissory notes if the Plan otherwise provides for loans. The Committee shall develop such procedures and require such information from Participants as it deems necessary to ensure that amounts contributed under this Section 9.5 meet the requirements for tax- deferred rollovers established by this Section 9.5 and by Code Section 402(c). No Rollover Contributions may be made to the Plan until approved by the Committee. If a Rollover Contribution made tinder this Section 9.5 is later determined by the Administrator not to have met the requirements of this Section 9.5 or of the Code or Treasury regulations, then, within a reasonable time after such determination is made, the amounts then held in the Trust attributable to such Rollover Contribution shall be distributed to the Employee. A Participant's Rollover Contributions Account shall be subject to the terms of the Plan except as otherwise provided in this Section 9.5. txa Notwithstanding any other provision of this Section 9.5, the Employer may direct the Trustee not to accept Rollover contributions. 9.6 Transfer to Other Qualified Plans: The Employer, by written direction to the Oklahoma Municipal Retirement Fund, may transfer some or all of the assets held under the Fund to another plan or trust meeting the requirements of the Code relating to qualified plans and trusts. In the case of any merger or consolidation with, or transfer of assets and liabilities to, any other plan, provisions shall be made so that each Participant in the Plan on the date thereof (if the Plan then terminated) would receive a benefit immediately after the merger, consolidation or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately prior to the merger, consolidation or transfer (if the Plan had then terminated). 9.7 Rollover to Another Plan or IRA: Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's election under this Section, a Distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. The Committee shall establish procedures for implementing such Direct Rollover distribution. (a) Definitions. For purposes of this Section 9.7, the following definitions shall apply: (i) "Eligible Rollover Distribution ": An "Eligible Rollover Distribution" is any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated Beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to Employer Stock); and any distributions attributable to a hardship. With respect to distributions made after December 31, 2001, for purposes of the direct rollover provisions in Section 9.7 of the Plan, a 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 Section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Code 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. (ii) " EIigible Retirement Plan ": An "Eligible Retirement Plan" is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(x) of the Code, or a qualified trust described in Section 401(x) of the Code, that accepts the Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual retirement TY_: account or individual retirement annuity. With respect to distributions made after December 31, 2001, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code 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. The definition of eligible retirement plan shall also apply 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 relation order, as defined in Section 414(p) of the Code. (iii) "Distributee ": A "Distributee" includes a Participant or former Participant. In addition, the Participant's spouse or former Participant's surviving spouse and the Participant's or former Participant's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. (iv) "Direct Rollover ": A "Direct Rollover" is a payment by the Plan directly to the Eligible Retirement Plan specified by the Distributee. 9.8 Requirements for Rollover by Individuals: An Employee (whether or not a Participant under this Plan), who, as a result of a termination of another plan qualified under Section 401(a) of the Code, a termination of employment, disability or attainment of age 59%2 years, has had distributed to him his entire interest in a plan which meets the requirements of Section 401(a) of the Code (hereinafter referred to as the "Other Plan") may, in accordance with procedures approved by the Committee, transfer all or any part of the distribution received from the Other Plan to the Trustees under this Plan, provided the following conditions are met: (a) the transfer occurs on or before the 60th day following his receipt of the distribution from the Other Plan, or, if such distribution had previously been deposited in an individual retirement account (as defined in Section 408 of the Code), the transfer occurs on or before the 60th day following his receipt of such distribution, plus earnings thereon from such individual retirement account; (b) the distribution from the Other Plan qualifies as a lump sum distribution within the meaning of Subsection 402(e)(4)(A) of the Code or is a result of a termination of another plan qualified under Section 401(a) of the Code; and (c) the amount transferred shall not exceed the distribution he received from the Other Plan, less the amount, if any, considered contributed by him in accordance with Subsection 402(e)(4)(D)(i) of the Code, phis earnings thereon during the period, if any, in which the amount was held in an individual retirement account. 9.9 Transfers From Another Qualified Plan: (a) With respect to an Employee (whether or not a Participant under this Plan), tivho has an undistributed account balance in another plan which meets the requirements of Section 401(a) of the Code (hereinafter referred to as the "Other Plan "), the Committee may, in its sole discretion, approve a direct transfer of such account balance from the Other Plan to the Trustees under this Plan. TX -4 (b) If the Plan receives a direct transfer (by merger or otherwise) of elective contributions (or amounts treated as elective contributions) under a plan with a Section 401(k) arrangement, the distribution restrictions of Sections 401(k)(2) and (10) of the Code continue to apply to those transferred elective contributions. 9.10 Procedures: With respect to transfers under either Section 9.8 or 9.9 herein, the Committee shall develop such procedures, and may require such information from an Employee or the fiduciaries of the Other Plan desiring to make such a transfer, as it deems necessary or desirable to determine that the proposed transfer will meet requirements of this Article and the law. Upon approval by the Committee, the amount transferred shall be deposited in the Trust Fund and shall be credited to a Rollover Account established in the Employee's name. Such Account shall be 100% vested in and nonforfeitable by the Employee, shall share in increases and decreases thereon determined in accordance with the Plan, but shall not share in Employer Contributions or Forfeitures. Upon termination of employment, the total amount of Employee's Participant Rollover Account shall be distributed as part of his Benefit. iX -5 ARTICLE X. Administration 10.1 Administration: The Plan shall be administered by the Committee which is hereby created and established and which shall be composed of the members of the City Council of the Employer. The duties of the Committee shall be performed without compensation other than the compensation, if any, which they receive as officers of the Employer unless additional compensation is specifically provided for by action of the City Council. Any usual and reasonable expenses incurred by the Committee in the administration of this Fund and Plan shall be paid by the Employer. (a) Committee: The Committee shall have such powers as may be necessary to discharge its duties hereunder and under the document creating the Oklahoma Municipal Retirement Fund, and under the contract for the pooling of the Fund with similar funds of other Municipalities. Such powers shall include but not be limited to the following powers and duties: (1) to delegate to, specify, direct, and supervise the performance of duties of the Authorized Agent, as the agent of the Employer and Committee in matters relating to the Plan, the Fund, and the Oklahoma Municipal Retirement Fund, including but not limited to, the duties set forth below in Subsection 10.1(b) and including any duties of the Employer under the Plan, or as set forth in this Subsection 10.1(a); (2) acting by direction to the Authorized Agent to file a petition for ( nomination, or otherwise nominate, and cause the ballot for the election of Trustees of the Oklahoma Municipal Retirement Fund; (3) to construe and interpret the Plan and resolve any ambiguities with respect to any of the terms and provisions thereof as written and as applied to the operation of the Plan; (4) to decide all questions of eligibility and determine the amount, manner and time of payment of any benefits hereunder; (5) to prescribe procedures to be followed by Participants in filing applications for benefits; (6) to make a determination as to the right of any person to a benefit and to afford any person dissatisfied with such determination the right to a hearing thereon; (7) to receive from the Employer, the Trustees, the Trust Service Provider and the Authorized Agent, such information as shall be necessary for the proper administration of the Plan; (8) to prepare and distribute, in such manner as it determines to be appropriate, information explaining the Plan; (9) to furnish the Employer, upon request, such annual reports with respect to the administration of the Plan as are reasonable and appropriate; X -1 (10) to receive and review reports from the auditor appointed by the Trustees, the City Treasurer and City Auditors, of the financial condition of the Fund; (11) to have full power, to manage and control, the Plan and Fund and to authorize in writing, all payments from the Fund by written direction of the Authorized Agent, or otherwise; (12) to sue in any court of competent jurisdiction for the enforcement of any contract, claim or other right, and to defend against or to compromise, settle or otherwise dispose of any claim or suit against the Employer, the Plan, or the City Treasurer, as Treasurer of the Plan; and (13) to appoint such person or persons as necessary to perform the following: a. to receive and separately account for, payments, appropriations, apportionments, allocations, payroll deductions, and any other assets, which are for, or consist of contributions or assets under the Plan for the Fund, which are made by the Employer, the Participants, or from any other source; b. to transfer, remit, pay over and deliver, upon the written direction of the Authorized Agent, as soon as practicable after his receipt thereof, all such contributions and assets, to the Oklahoma Mimicipal Retirement Fund for management and investment; c. to keep as evidence and permanent records, all such written directions ' of the Authorized Agent for such transfers and disbursements, maintain accurate accounts and records of such receipts, transfers and disbursements, and keep such other records and furnish such information and advice to the Employer, the City Council, the Committee and the Authorized Agent as may be necessary and proper for the performance of such duties in coordinating the administration and operation of the Plan; d. maintain such records including vital statistics on health, age, sex, birth, death, Compensation and length of Service of all the Participants of the Employer or their beneficiaries who are included in the Plan or who are, or may become eligible for such inclusion, as are necessary for the proper administration of the Plan, and furnish such information as is requested by the Authorized Agent, or is requested by the Administrator; e. notify the Authorized Agent when any Participant is eligible for Retirement under the Plan; and f. attend meetings of the Committee while matters pertaining to the Plan, the Employees or their beneficiaries are under consideration. The Committee shall have no power to waive or fail to apply any requirements of eligibility for a Benefit under the Plan. The Committee may adopt such rules, regulations and actuarial tables as it deems necessary or desirable to administer the Plan. All such rules, X-2 regulations and decisions shall be uniformly and consistently applied to all Employees in similar circumstances. Any such rule or decision which is not inconsistent with the provisions of the Plan shall be conclusive and binding upon all persons affected by it and there shall be no appeal from any ruling by the Committee which is within its authority. When making a determination or calculation, the Committee shall be entitled to rely upon information furnished by the Trustees, the Trust Service Provider, the Employer, the Authorized Agent, the legal counsel of the Employer, or the actuary for the Plan. (b) Authorized Agent: An Authorized Agent shall be designated in writing by the Committee and shall act as the agent of the Employer (but not the agent of the Trustees or the Trust Service Provider of the Oklahoma Municipal Retirement Fund) in matters pertaining to the Plan, the Fund and the Oklahoma Municipal Retirement Fund, to centralize in one person the local administration and coordination thereof, and to file payroll and contribution information, to file claims, forms and applications for Participants, and to advise Participants, the Employer and the Committee. The Authorized Agent, under the control and direction of the Committee, shall have such general duties as the Employer and the Committee may deem necessary and proper for such purposes, which duties shall include but not be limited to, the following: (1) to coordinate the deduction of Participant contributions and to see that Employer and Participant contributions are properly received and forwarded promptly to the Oklahoma Municipal Retirement Fund for management and investment; (2) to forward any communications directed to Participants and beneficiaries by the Trustees, the Trust Service Provider or the Oklahoma Municipal Retirement Fund; (3) to lend assistance to Participants and beneficiaries in filing applications for benefits, and in communicating with the Employer, the Committee and the Trustees or the Trust Service Provider of the Oklahoma Municipal Retirement Fund and to forward such communications to the addressees; (4) to assist the Committee in determining whether or not Employees are eligible for participation in the Plan; (5) to certify at the direction of the Committee that a Participant is on an authorized leave of absence, paid or unpaid; and (6) to file at the direction of the Committee a petition or nomination, and cast a ballot for election of Trustees of the Oklahoma Municipal Retirement Fund. (c) Plan Counselor: The Committee of the Employer shall appoint the legal advisor of the Employer and the Committee, and such legal advisor shall represent them in any legal matters, proceedings, or litigation. 10.2 Bonds: No bond to secure the performance of administrative duties in the operation of the Plan and Fund, shall be required of any persons or organizations unless required by law, or unless required by the Trust Indenture establishing The Oklahoma Municipal Retirement Fund, or unless required by the Employer for any persons or organizations engaged in the administration of the Plan. If such a bond is required by law, the Trustees or the Employer, the premiums therefor shall be paid as expenses of the Oklahoma Municipal Retirement Fund as to its members, agents, employees, Municipal Retirement Fund, or as expenses of the Employer as to the administration of the Plan. Any agents, officials or Employees of the Employer engaged in the administration of the Plan shall be covered as to the performance of such administrative duties, by any official or other bond covering their regular duties otherwise. 10.3 Benefit Payments: All benefits which are to be paid pursuant to the provisions of the Plan, shall be paid under the direction of the Committee out of the applicable portion of the Oklahoma Municipal Retirement Fund, upon written directions of the Committee acting through the Authorized Agent. 10.4 Abandonment of Benefits: (a) If, anytime following the date either of a Participant or Beneficiary of a deceased Participant becomes entitled to receive any non - deferred benefits under the Plan, then, if the whereabouts of such Participant or Beneficiary is unknown, the benefits may be forfeited in certain limited circumstances as provided hereafter. If the Committee has mailed to the Participant or Beneficiary notice of the present right to receive benefits, and the Committee mails such notice again after one year, then, if no claim has been received by the second anniversary of the first mailing of the notice, the Accounts representing unclaimed Benefits (including those holding Employee contributions) can be forfeited pursuant to Section 5.4 herein. (b) Each Participant and Beneficiary shall file with the Committee, from time to time in writing, their post office address and each change of post office address, if any, and the Committee shall not be obliged to search for or ascertain the whereabouts of any Participant or Beneficiary. Any communication addressed to a Participant or Beneficiary at their last post office address filed with the Committee, or if no such address was filed, then at their last post office address as shown on the Employer's records, shall be binding on the Participant and the Beneficiary for all purposes of the Plan and Trust. (c) In the event that the whereabouts of a lost Participant, or lost Beneficiary of a deceased Participant, ever becomes known to the Committee, and either of such parties makes a claim for benefits, the Committee shall, if the Plan is in existence, reinstate any Benefits which have been previously forfeited to satisfy such claim; provided, the amount reinstated shall, in any event, be equal to the amount of the forfeited benefit unadjusted by any increases or decreases under Section 5.6 herein occurring after such forfeitures were allocated. Reinstated Forfeitures shall be satisfied from the following sources in the priority indicated: (i) unallocated Forfeitures, (ii) unallocated Fund increases, or (iii) Employer contributions which the Employer shall make if necessary to satisfy such reinstatement. For purposes of this Subsection (c), the limitations under Section 415 of the Code shall not apply. 10.5 Benefits Payable to Incompetents: Any payments due hereunder to a minor or other person under legal disability may be made, at the discretion of the Committee, (i) to a parent, spouse, relative by blood or marriage, or (ii) the legal representative of the said person. The x -a Committee shall not be required to see to the application of any such payment, and the payee's receipt shall be a full and final discharge of all responsibility hereunder of the Employer, the Committee and the Trustees. X -j ARTICLE XI. General 11.1 Not Contract Between Employer and Participant: Neither the creation of this Plan, nor any amendment to it, nor the creation of any fiord, nor the payment of benefits hereunder shall be construed as giving any legal or equitable right to any Participant against the Employer or against the Oklahoma Municipal Retirement Fund, except as provided herein, and all liabilities under this Plan shall be satisfied, if at all, only out of the Fund held by the Oklahoma Municipal Retirement Fund. Participation in the Plan shall not give any Participant any right to be retained in the employ of the Employer, and the Employer hereby expressly retains the right to hire and discharge any Participant at any time with or without cause, as if this Plan had not been adopted, and any such discharged Participant shall have only such rights or interests in the Fund as may be specified herein. 11.2 Payment of Fees: The Employer shall pay a fee in an amount determined and revised from time to time by the Oklahoma Municipal Retirement Fund. 11.3 Governing Law: The validity, construction and administration of this Plan shall be determined under the laws of the State of Oklahoma. 11.4 Counterpart Execution: This Plan may be executed in two or more counterparts, as may be all amendments thereto be executed, and any one of the executed copies shall be deemed an original. 11.5 Severability: Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Plan. 11.6 Spendthrift Provisions: Benefits payable under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, including any such liability which is for alimony or other payments for the support of a spouse or former spouse, or for any other support of a spouse or former spouse, or for any other relative of the Employee, prior to actually being received by the person entitled to the benefit under the terms of the Plan; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any right to benefits payable hereunder, shall be void. The Fund shall not in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to benefits hereunder. The preceding provisions shall not apply to the creation, assignment or recognition of a right to any benefit payable with respect to a Participant pursuant to a domestic relations order, and does not preclude the Oklahoma Municipal Retirement Fund from complying with a court order requiring deduction from the benefits of a Participant in pay status for alimony and support payments. 11.7 Maximum Duration: Nothing herein shall be construed to suspend the power of alienation or prevent the vesting of the interest of any person in the Plan for a longer period than the duration of the lives of the designated Beneficiaries of a particular interest therein in being at the time such designation becomes irrevocable, plus twenty -one (21) years; if any provisions XI -1 shall be held to violate a rule or law against restraints on alienation or remote vesting, the Plan shall not be vitiated thereby, but the Plan, or the portion of the Plan thus affected, shall immediately be distributed to those entitled as their interest shall then appear. 11.8 Number and Gender: Pronouns and other similar words used herein in the masculine gender shall be read as the feminine gender where appropriate; pronouns and other similar words used herein in the neuter gender shall be read as the masculine or feminine gender where appropriate; and the singular form of words shall be read as the plural where appropriate. 11.9 Compensation and Expenses of Administration: If a Trustee, a member of Oklahoma Municipal Retirement Fund, or a member of the Committee is an Employee of the Employer, he shall serve without any additional compensation. The Employer may pay all or part of the expenses of administration of the Plan, including the compensation and expenses of the Trustee, and any other expenses incurred at the direction of the Oklahoma Municipal Retirement Fund, including, without limitation, fees of actuaries, accountants, attorneys, investment managers, investment advisors and other specialists, and any other costs of administering the Plan. To the extent that any of such expenses are not paid by the Employer, such expenses shall be paid by the Oklahoma Municipal Retirement Fund out of the Fund. In addition, the Plan or Trustees shall be authorized to charge to a Participant's Account any direct expenses it incurs in connection with such Account, which shall include by example, and not by limitation, expenses resulting from a Participant's QDRO, bankruptcy or default on a Plan loan, and expenses incurred in attempting to locate a Participant. Trustees shall have the power under this Section in their sole discretion to determine the items and amounts thereof which should equitably and reasonably be charged to a particular Account. If such charges exceed the balance in a Participant's Accounts, the excess shall be charged to the general Trust Fund. 11.10 Incorporation of Trust Agreement: The provisions of the Trust Indenture Establishing the Oklahoma Municipal Retirement Fund are incorporated into and made a part of this Plan. 11.11 Mistake of Fact: All contributions to the Plan are made subject to the correctness of the amount. In the event a contribution is made to the Plan and Trust by the Employer under a mistake of fact concerning the correctness of such contribution, then the Oklahoma Municipal Retirement Fund shall return such portion of such contribution which is in excess of the amount that would have been contributed had there not occurred a mistake of fact within one year after the payment of the contribution to the Oklahoma Municipal Retirement Fund. In the case of amounts returned pursuant to this Section 11. 11, no earnings attributable to such amounts may be returned to the Employer, but losses attributable thereto shall reduce the amount returned, and no such return shall reduce the balance of any Participant's Municipality Contribution Accounts to less than the balance which would have been credited thereto bad such amount not been contributed. XI -2 IN WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing instrument comprising the Plan, the Oklahoma Municipal Retirement Fund, has caused its corporate seal to be affixed hereto and these presents to be duly executed in its name and behalf by its proper officers thereunto authorized this 30 fh day of M " , 2oo6.' OKLAHOMA MUNICIPAL RETIREMENT FUND B 1,111 ATTEST: By (CORPORATE SEAL) STATE OF OKLAHOMA ) ) ss. COUNTY OF OKLAHOMA ) BEFORE ME, the undersigned a Notary Public in and for said County and State, on this 3oA day of M&,j Zeob , personally appeared GPory e tome known to be the identical person who subscribed the name of the Oklahoma Municipal Retirement Fund, a municipal corporation, to the foregoing instrument as its Chairperson and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set forth. GIVEN UNDER MY HAND AND SEAL OF OFFICE, the day and year last above written. Z. Notary Public My Commission Expires: sdf.,., 6 , ;too 8 My Commission No.: 000 /a 8'2a (NOTARY SEAL) pOTA,q ICARI M. BASER OKLAHOMA COUNTY Notary Public In and for State of Oklahoma ' UBLto Commission # 00012872 Expires 09105/06 V41M ADDENDUM NUMBER ONE TO OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN AMENDMENT FOR THE FINAL CODE SECTION 415 REGULATIONS ARTICLE 1. PREAMBLE 1.1 Effective date of Amendment. This Amendment is adopted to reflect certain provisions of the final Code Section Regulations. This Amendment is effective for limitation years and plan years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on or after July 1, 2007, except as otherwise provided herein. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. 1.3 Construction. Except as otherwise provided in this Amendment, any reference to "Section" in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.4 Effect of restatement of Plan. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates the final Code §415 Regulation provisions). ARTICLE II. FINAL SECTION 415 REGULATIONS 2.1 Effective date. The provisions of this Article II shall apply to limitation years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on and after July 1, 2007. 2.2 Actual Compensation paid after severance from employment. Actual Compensation shall be adjusted, as set forth herein, for the following types of compensation paid after a Participant's severance from employment with the Employer maintaining the Plan (or any other entity that is treated as the Employer pursuant to Code § 414(b), (c), (m) or (o)). However, amounts described in subsections (a) and (b) below may only be included in Actual Compensation to the extent such amounts are paid by the later of 2%z months after severance from employment or by the end of the limitation year that includes the date of such severance from employment. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation is not considered Actual Compensation within the meaning of Code § 415(c)(3), even if payment is made within the time period specified above. (a) Regular pay. Actual Compensation shall include regular pay after severance of employment if: (1) The payment is regular compensation for services during the participant's regular working hours, or compensation for services outside the participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (2) The payment would have been paid to the participant prior to a severance from employment if the participant had continued in employment with the Employer. (b) Leave cashouts and deferred compensation. Leave cashouts shall not be included in Actual Compensation. Further, deferred compensation shall not be included in Actual Compensation. (c) Salary continuation payments for military service participants. Actual Compensation does not include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code § 414(u)(1)). (d) Salary continuation payments for disabled Participants. Actual Compensation does not include compensation paid to a participant who is permanently and totally disabled (as defined in Code § 22(e)(3)). 2.3 Administrative delay ( "the first few weeks ") rule. Actual Compensation for a limitation year shall not include amounts earned but not paid during the limitation year solely because of the timing of pay periods and pay dates. 2.4 Inclusion of certain nonqualified deferred compensation amounts. If the Plan's definition of Compensation for purposes of Code § 415 is the definition in Regulation Section 1.415(c) -2(b) (Regulation Section 1.415- 2(d)(2) under the Regulations in effect for limitation years beginning prior to July 1, 2007) and the simplified compensation definition of Regulation 1.415(c)- 2(d)(2) (Regulation Section 1.415- 2(d)(10) under the Regulations in effect for limitation years prior to July 1, 2007) is not used, then Actual Compensation shall include amounts that are includible in the gross income of a Participant under the rules of Code § 409A or Code § 457(f)(1)(A) or because the amounts are constructively received by the Participant. 2.5 Definition of annual additions. The Plan's definition of "annual additions" is modified as follows: (a) Restorative payments. Annual additions for purposes of Code § 415 shall not include restorative payments. A restorative payment is a payment made to restore losses to a Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under federal or state law, where participants who are similarly situated are treated similarly with respect to the payments. Generally, payments are restorative payments only if the payments are made in order to restore some or all of the plan's losses due to an action (or a failure to act) that creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). This includes payments to a plan made pursuant to a court- approved settlement, to restore losses to a qualified defined contribution plan on account of the breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). Payments made to the Plan to make up for losses due merely to market fluctuations and other payments that are not made on account of a reasonable risk of liability for breach of a fiduciary duty are not restorative payments and generally constitute contributions that are considered annual additions. (ti) Other Amounts. Annual additions for purposes of Code § 415 shall not include: (1) The direct transfer of a benefit or employee contributions from a qualified plan to this Plan; (2) Rollover contributions (as described in Code §§ 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)); (3) Repayments of loans made to a participant from the Plan; and (4) Repayments of amounts described in Code § 411(a)(7)(B) (in accordance with Code § 411(a)(7)(C)) and Code § 411(a)(3)(D) or repayment of contributions to a governmental plan (as defined in Code § 414(d)) as described in Code § 415(k)(3), as well as Employer restorations of benefits that are required pursuant to such repayments. (c) Date of tax - exempt Employer contributions. Notwithstanding anything in the Plan to the contrary, Employer contributions are treated as credited to a participant's account for a particular limitation year only if the contributions are actually made to the plan no later than the 15th day of the tenth calendar month following the end of the calendar year or fiscal year (as applicable, depending on the basis on which the Employer keeps its books) with or within which the particular limitation year ends. 2.6 Change of limitation year. The limitation year may only be changed by a Plan amendment. Furthermore, if the Plan is terminated effective as of a date other than the last day of the Plan's limitation year, then the Plan is treated as if the Plan had been amended to change its limitation year. DC 4 IS Addendum #I 2.7 Excess Annual Additions. Notwithstanding any provision of the Plan to the contrary, if the annual additions (within the meaning of Code § 415) are exceeded for any participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2006- 27 or any superseding guidance, including, but not limited to, the preamble of the final § 415 regulations. 2.8 Aggregation and Disaggregation of Plans. (a) For purposes of applying the limitations of Code § 415, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the Employer (or a "predecessor Employer ") under which the participant receives annual additions are treated as one defined contribution plan. The "Employer" means the Employer that adopts this Plan and all members of a controlled group or an affiliated service group that includes the Employer (within the meaning of Code §§ 414(b), (c), (m) or (o)), except that for purposes of this Section, the determination shall be made by applying Code § 415(h), and shall take into account tax- exempt organizations under Regulation Section 1. 414( c) -5, as modified by Regulation Section 1.415(a)- 1(1)(1). For purposes of this Section: (1) A former employer is a "predecessor employer" with respect to a participant in a plan maintained by an employer if the employer maintains a plan under which the participant had accrued a benefit while performing services for the former employer, but only if that benefit is provided under the plan maintained by the employer. For this purpose, the formerly affiliated plan rules in Regulation Section 1.415(1)- 1(b)(2) apply as if the employer and predecessor employer constituted a single employer under the rules described in Regulation Section 1.415(a)- 1(1)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted two, unrelated employers under the rules described in Regulation Section 1.415(a)- 1(1)(1) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the event that gives rise to the predecessor Employer relationship, such as a transfer of benefits or plan sponsorship. (2) With respect to an employer of a participant, a former entity that antedates the employer is a "predecessor Employer" with respect to the participant if, under the facts and circumstances, the Employer constitutes a continuation of all or a portion of the trade or business of the former entity. (b) Break -up of an affiliate employer or an affiliated service group. For purposes of aggregating plans for Code § 415, a "formerly affiliated plan" of an employer is taken into account for purposes of applying the Code § 415 limitations to the employer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the "cessation of affiliation." For purposes of this paragraph, a "formerly affiliated plan" of an employer is a plan that, immediately prior to the cessation of affiliation, was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation Section 1.415(a)- 1(1)(1) and (2)), and immediately after the cessation of affiliation, is not actually maintained by any of the entities that constitute the employer (as determined under the.employer affiliation rules described in Regulation Section 1.415(a)- 1(1)(1) and (2)). For purposes of this paragraph, a "cessation of affiliation" means the event that causes an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliation rules described in Regulation Section 1.415(a)- 1(1)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rules of Regulation Section 1.415(a)- 1(1)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group). (c) Midyear Aggregation. Two or more defined contribution plans that are not required to be aggregated pursuant to Code § 415(1) and the Regulations thereunder as of the first day of a limitation year do not fail to satisfy the requirements of Code § 415 with respect to a participant for the limitation year merely because they are aggregated later in that limitation year, provided that no annual additions are credited to the participant's account after the date on which the plans are required to be aggregated. DC 415 Addendum NI ARTICLE III. PLAN COMPENSATION 3.1 Compensation paid after severance from employment. Compensation for purposes of allocations (hereinafter referred to as Plan Compensation) shall be adjusted in the same manner as Actual Compensation pursuant to Article II of this Amendment, except in applying Article U, the term "limitation year' shall be replaced with the term "plan year" and the term "Actual Compensation' shall be replaced with the term "Plan Compensation." DC 415 Addendum 01