HomeMy WebLinkAboutRES NO 29-85RESOLUTION NO. 29-85
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD APPROVING AN AMENDED EMPLOYEE'S
DEFERRED COMPENSATION PLAN AND AUTHORIZING
ITS IMPLEMENTATION.
WHEREAS, the federal rules regarding Deferred Compensation
Plans have been modified over a period of years; and
WHEREAS, the City of Bakersfield's Deferred Compensation
Plan has not been modified to reflect the changes in the federal
rules; and
WHEREAS, the City of Bakersfield, having previously
adopted a Deferred Compensation Plan for all employees of the City
is desirous of implementing an amended Deferred Compensation Plan
consistent with federal guidelines.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Bakersfield that the City of Bakersfield Amended
Deferred Compensation Plan attached to this resolution, marked
"Exhibit A," and by reference incorporated herein, is hereby adopted.
BE IT FURTHER RESOLVED that the City Manager is authorized
to implement said plan, and the City of Bakersfield consents to
the plan and assumes the obligations to be performed on its part
as set forth in said plan.
BE IT FURTHER RESOLVED that the plan shall be operative
immediately, but shall apply only to compensation earned by a
participating employee subsequent to the date of filing a written
declaration to participate, such participation to be in accordance
with the "Employee's Participation Agreement."
BE IT FURTHER RESOLVED that this resolution shall not
diminish any rights acquired by participants or their beneficiaries
under the Deferred Compensation Plan adopted pursuant to Resolutions
No. 21-74 and 91-81.
I HEREBY CERTIFY that the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at
regular meeting thereof held on the 27th day of February, 1985,
by the following vote:
C'ITY~ CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED this 27th day o~ ~eDruary, 19~5
MAYOR of the City of /~akersfield
APPROVED as to form:
GR/sh 2.
CITY OF BAKERSFIELD
AMENDED DEFERRED COMPENSATION PLAN
ARTICLE I
General
Section 1.01 Name. The name of this Amended Plan is the City of
Bakersfield Amended Deferred Compensation Plan (hereinafter referred to as the
"Plan"). This Plan amends in its entirety, the City of Bakersfield Deferred
Compensation Plan adopted on March 18, 1974, and amended on December 2, 1981.
All participants in the originally adopted Plan and the subsequent amendment
will be participants in this plan. This Plan shall not diminish any rights
acquired by participants or their beneficiaries in the City of Bakersfield
Deferred Compensation Plan adopted on March 18, 1974, or the amendment on
December 2, 1981.
Section 1.02 Purpose. The purpose of this Plan is to extend to Employees
of the Employer certain benefits which ordinarily accrue from participation in a
Deferred Compensation Plan, and to conform with IRS Code §457. The Plan will
permit Employees to provide for deferring current income until death, disabi-
lity, retirement or other termination of employment with the City of
Bakersfield. The Employer does not and cannot represent or guarantee that any
particular federal or state income, payroll or other tax consequence will occur
by reason of an Employee's participation in this Plan. The Employee wishing to
participate in the Plan should consult his own attorney or other representative
regarding all tax or other consequences of participation in this Plan.
Section 1.03 Definitions.
(a) "Administrator" means Employer or its duly authorized designee
for that purpose who shall exercise the discretion or other functions
given to the Employer under the terms of the Plan.
(b) "Advisory Committee" shall mean a committee consisting of three
(3) members appointed by the City Manager. Such committee shall operate
according to the guidelines specified in Section 2.05 of the Plan docu-
ment.
(c) "Annuity Contracts" referred to in this Plan means any annuity
contracts qualified for sale in the State of California and approved by
the Advisory Committee of the City of Bakersfield. Notwithstanding the
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above definition, annuity contracts actually used in conjunction with the
Plan can be altered, amended, changed or substituted for from time to time
by action of the Advisory Committee, and such altered, amended, changed or
substituted contracts or contract thereafter may be used in the Plan.
(d) "Beneficiary" means any person designated by the Participant to
receive a pension, annuity, death benefit or other benefit under the pro-
visions of this Deferred Compensation Plan.
(el "City" means the City of Bakersfield.
(f) "Compensation" means all wages or salaries or other forms of
income to be paid by Employer to an Employee for services rendered.
(g) "Deferred Compensation" means that portion of an Employee's
Compensation which said Employee has elected to defer in accordance with
the provisions of this Deferred Compensation Plan or which the Employee
and the City mutually agree shall be deferred in accordance with the pro-
visions of this Plan.
(h) "Employee" means any full-time, probationary or permanent
employee or elected official of the Employer.
(i) "Employer" means the City of Bakersfield.
(j) "Normal Retirement Age" means any range of ages ending no later
than age 70~ and beginning no earlier than the earliest age at which the
participant has the right to retire under the State's basic pension plan
without consent of the State, and to receive immediate retirement benefits
without actuarial or similar reduction because of retirement before some
later specified age in the State's basic pension plan.
(k) "Participant" means any Employee who voluntarily elects to par-
ticipate in this Deferred Compensation Plan by filing a duly executed
Participation Agreement with the Employer or who previously participated
in the City of Bakersfield Deferred Compensation Plan adopted on March 18,
1974.
(1) "Participation Account" means the book account to which there
are credited the Participant's Deferred Compensation, together with any
interest, dividends, gains, losses or the like thereon.
(m) "Participation Agreement" means the contract by which the
Employee and the Employer agree that some of the Employee's Compensation
will be deferred pursuant to the Plan.
(n) "Plan Year" means the calendar year in which the Plan becomes
effective, and each succeeding year during the existence of this Plan.
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ARTICLE 2
Operation of Plan
Section 2.01 Participation. Any Employee may elect to become a
Participant of the Plan and to defer payment of part of his Compensation by exe-
cuting a written Participation Agreement and filing it in the manner set forth
in Article 3 hereof, or by having participated in the City of Bakersfield
Deferred Compensation Plan adopted on March 18, 1974. The dollar amount
deferred must be at least Twelve Dollars ($12.00) per pay period or such larger
amount as may be designated by the Employer from time to time. The maximum
amount that may be deferred under the Plan for the taxable year of a Participant
shall not exceed the lesser of (a) Seven Thousand Five Hundred Dollars
($7,500.00), or (b) Thirty-three and one-third per cent (33-1/3%) of the
Participant's includible Compensation (compensation for service performed for
Employer); provided, however, that in one or more of a Participant's last three
(3) taxable years ending before a Participant attains Normal Retirement Age
under the Plan, the maximum amount that may be deferred under the Plan shall be
lesser of (a) Fifteen Thousand Dollars ($15,000.00) or (b) the maximum amount
set forth above for each taxable year of a Participant, plus so much of the
maximum deferral amount as has not been utilized in any Plan Year commencing
after January 1, 1979.
Section 2.02 Deferral of Compensation. Employer and Participant mutually
acknowledge that the Compensation of each Employee is set forth in the annual
salary resolution or ordinance of the Employer and that said Compensation inclu-
des the amount of funds deferred under the terms of this Plan. Employee
Compensation shall be paid bi-weekly or as otherwise provided, except that
during each employment year in which the Employee is a Participant in the Plan,
that portion of his said Compensation which is specified by the Employee in that
Participation Agreement shall be deferred and paid in accordance with the provi-
sions of the Plan.
Section 2.03 Investment of the Deferred Amount. The deferred amount may
be held by the Employer to be paid to the Employee pursuant to Article 4, and
Employee accounts shall be valued as if such amounts were invested in:
(a) A fixed annuity contract; or
(b) A variable annuity contract; or
(c) A deferred savings account at a savings and
loan or similar banking institution; or
(d) Mutual Fund; or
(el Certificate of Deposits; or
(f) Life insurance; or
(g) Any combination of (a), (b), (c), (d), (el,
and (fl.
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The Employee's statement of investment preference shall only require the
Employer to use such preference as an index for determining the benefits to be
paid pursuant to Article 4. The Employer shall be under no obligation to invest
the deferred amount in the manner requested.
Section 2.04 Employer Responsibility. The Employer may, but is not
required to, invest Deferred Compensation held pursuant to agreements between
Participants and the Employer in accordance with the requests made by each
Participant at the time of enrollment or change in enrollment. The Employer
retains the right to approve or disapprove requests for a specific investment
preference. Any investment action by the Employer, or approving of any invest-
ment preference, shall not be considered to be an endorsement or guarantee of
any investment preference, nor shall it be considered to attest in the financial
soundness or the suitability of any investment preference for the purpose of
meeting future obligations as provided in Article 4 of this Plan. Further, the
Employer shall not be held responsible for any investment results, either gains
or losses, from any investment preference used to meet future obligations under
the Plan.
Section 2.05 Administration of the Plan. The Plan shall be administered
by an Advisory Committee which shall have the sole authority for the operation
of the Plan in accordance with its terms, and shall rule on all questions
arising out of the administration, interpretation and the application of the
Plan, which determination shall be conclusive and binding on all Participants.
Members of the Advisory Committee may participate in the Plan, but no member of
the Advisory Committee shall be entitled to make decisions solely with respect
to his own participation.
Section 2.06 Ownership of Deferred Amounts. The Employer shall establish
and maintain a fund (hereinafter the "Investment Fund") to provide a convenient
method of setting aside sufficient of its assets to meet its future obligations
under this Plan. The Employer shall at all times, be the legal and beneficial
owner of all assets in the Investment Fund, and neither the existence of the
Plan nor of the Investment Fund shall be deemed to create a trust or limit use
by the Employer of the funds therein for general Employer purposes. The obliga-
tions of the Employer to make payments pursuant to this Plan is contractual
only, and no Participant or Beneficiary shall have a preferred claim or lien on
or to the assets of this Investment Fund, but shall have only the right to
receive the benefits payable under the Plan. Interests of a Participant who
changes employment may, under certain prescribed conditions, be transferred to
the eligible Deferred Compensation Plan of a new Employer.
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ARTICLE 3
Administration and Accounting
Section 3.01 Administration by Employer. This Deferred Compensation Plan
shall be administered by the Employer, who shall appoint an Advisory Committee
which will prescribe such forms and adopt such rules and regulations as
necessary to carry out the purposes of the Plan.
Section 3.02 Election to Participate. An Employee's election to par-
ticipate in this Deferred Compensation Plan shall be made by filing a duly exe-
cuted Participation Agreement with the Employer, and not otherwise.
Section 3.03 Enrollment Periods.
(a) Any person who becomes an Employee after this Plan is first made
available shall have the option, within sixty (60) days after becoming an
Employee, to effect an initial election to participate under this Plan in
the first month after the date on which his Participation Agreement is
filed with the Employer.
(b) Any Employee who does not file an initial election, pursuant to
(a) above, shall have the right to elect participation during enrollment
periods designated by the Deferred Compensation Committee.
Section 3.04 Participation Agreement. The Employer shall establish a
form of Participation Agreement and other enrollment forms which shall contain,
among other provisions, the following:
(a) A provision whereby the Participant specifies the portion of his
Compensation which is to be deferred.
(b) A provision whereby the Participant shall indicate his invest-
ment preference.
(c) A provision whereby the Participant shall designate a
Beneficiary or Beneficiaries, including one or more contingent
Beneficiaries, to receive any benefits which may be payable under this
Plan on death of the Participant.
(d) An acknowledgment by the Participant that his salary, wage or
other compensation is as set forth in any salary ordinance or otherwise,
without deductions for amounts deferred under the provisions of this Plan.
(el A provision whereby the Participant, together with his heirs,
successors and assigns, holds harmless the Employer from any liability
hereunder for all acts performed in good faith, including acts relating to
the investment of deferred amounts and/or the Employee's investment pre-
ference hereunder.
(f) A provision whereby the Participant shall indicate his payment
option and method of payment (monthly, quarterly, semi-annually, annually)
if applicable and which is revocable.
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Section 3.05 Amendment of Participation Agreement. The Participant may
revoke his election to participate at any time by filing with the Employer a
written revocation. He may change the amount of Compensation to be deferred or
his investment preference during a stated enrollment period by signing and
filing with the Employer a written amendment on a form approved by the Employer.
Any such amendment shall be effective prospectively only, beginning with the
first enrollment period commencing on or after the amendment. If a Participant
requests that amounts then held in a Participant's Account also be invested in
accordance with an amended investment preference, the Employer may, if it deems
it in the best interest of the Participant to do so, approve such change. Any
such contracts and other evidence of the investment of all assets under this
Plan shall be registered in the name of the Employer which shall be the owner-
beneficiary thereof.
Section 3.06 Participation Accounts. A separate Participation Account
shall be maintained for each Participant. Each Participation Account shall
reflect the monies deferred, as well as that portion, if any, of monies being
transferred from an eligible Deferred Compensation Plan of a prior employer, the
investment of the monies, and all consequences of the investment. For con-
venience, and to facilitate an orderly administration of the Plan, individual
Participation Accounts for all Participants will be maintained by the Employer
and/or its agent showing the Participant's name with all applicable debit and
credit balances. The Participant's Deferred Account shall be credited each
month with the amount deferred from the preceding month. A written report of
the status of the Participation Account shall be furnished to Participants at
least annually. All interest, dividends, charges for premiums, capital or
market changes applicable to each Participation Account shall be credited or
debited to the account as they occur. Credits to the Participant's Account shall
be subject to the Participant's then effective investment preference. All
reports to the Participant shall be based on the net fair market value of the
assets as of the reporting date as if the deferred amount had been invested
according to the investment preference.
Section 3.07 Transfer of Value of Participant's Participation Accounts.
In the event a Participant terminates employment with the Employer and accepts
employment with a new employer, the Employer may purpose to the new employer
that the funds, assets and accumulations of said Participant's Participation
Account be transferred to the ownership and control of the new employer's eli-
gible deferred compensation plan.
Transfer of any funds under this section will be subject to the following
conditions:
(a) The Employer has no defined current or future need for the
funds, assets and accumulations in the said Participant's Account for the
payment of its general creditors or for any other purpose.
(b) The entities sponsoring the Plan are located within the same
State.
(c) The Plan receiving such amounts provides for the acceptance of
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the amounts; and
(d) The Plan provides that if the Participant separates from ser-
vice in order to accept employment with another such entity, payout will
not commence upon separation from service, regardless of any other provi-
sion of the Plan, and amounts previously deferred will automatically be
transferred.
(el That the Employee will agree, in writing, to release the present
Employer from any and all contractual obligations under the provisions of
this Plan upon completion of the transfer of funds to the new employer.
Section 3.08 Employer Participation. Notwithstanding any other provi-
sions of the Plan, the Employer may make deposits into the Plan as Compensation
for services not yet rendered by a participating Employee during an Employment
period, provided the Employee has agreed in writing to have any such additional
Compensation deferred pursuant to this Plan prior to the employment period in
which the Compensation would be earned. Also, the Employer may make other addi-
tional deposits to the Plan as he may deem advisable, subject, however, to the
limitations on deferrals stated in Article 2.01 hereof.
ARTICLE 4
Benefits
Section 4.01 Benefits Generally. The Participant is entitled to have
paid to him the benefits created by his participating in this Deferred
Compensation Plan in accordance with the provisions of this Article. The bene-
fits payable to the Participant will be equivalent of the total benefits that
would have been created had the deferred amounts been invested as specified by
the Participant from time to time, taking into consideration losses ~nd gains
where applicable and any deductions authorized in Section 3.07 above. Amounts
paid to a Participant pursuant to this Article shall be reported to a
Participant as wages, subject to withholding for Federal and State income taxes
and reportable on Form W-2. In the event of death of a Participant prior to the
commencement of benefits as called for under the Plan, the named Beneficiary of
a Participant shall have the right to designate the payments to such Beneficiary
in accordance with one of the available options provided under the Plan. Such
selections must be made within sixty (60) days of the death of a Participant.
If the Beneficiary fails to make such selection, payments shall be made to the
Beneficiary in accordance with the option previously selected by the
Participant. In the event of death of a Participant either before or after the
commencement of payments, the funds must be passed in accordance with Section
4.01d. All actions and determinations of the Employer under this Article 4
shall be made on a uniform and non-discriminatory basis.
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(a) Normal Retirement. Upon the Participant's attaining Normal
Retirement Age, he may retire and receive the benefits provided under this
Plan. Normal Retirement is defined as retirement at any time, provided
that the Participant is at least age fifty (50) with at least five (5)
years of service. The maximum age at which a Participant may retire under
this definition is age seventy and one-half (70~). Such benefits shall be
p~id in accordance with the payment Option 1, 2, 3, 4 or 5 as selected by
the Participant pursuant to subsection (g) of this section. Any credits
remaining in the deferred account of a Participant receiving benefits
under this paragraph who dies shall be paid in accordance with subsection
(d) of this section.
(b) Disability. If, prior to retiring, the Participant becomes
disabled as defined by the disability income provision in the Employer's
retirement program applicable to the Participant, the Employer shall exer-
cise the nonforfeiture provisions of any contracts and pay any benefits
provided and all other credits, if any, in the Participant's deferred
account in accordance with payment option 1, 2, 3, 4 or 5 as selected by
the Participant pursuant to subsection (d) of this section.
(c) Termination of Employment. If the Participant terminates his
employment with the Employer (without being disabled or retiring), bene-
fits shall be paid in accordance with payment option as selected by
Participant pursuant to subsection (g) of this section.
(d) Death.
(1) Before Benefits are Paid for Retirement, Disability or
Termination of Service. In the event of death of a Participant prior
to the commencement of benefits as called for under the Plan, the
named Beneficiary of a Participant's Participation Account shall have
the right to designate that payments to such Beneficiary shall be in
accordance with one of the available options provided under the Plan.
Such selection must be made within sixty (60) days of the death of a
Participant. If the Beneficiary fails to make such selection,
payments shall be made to the Beneficiary in accordance with the
option previously selected by the Participant.
(2) Designated Beneficiary. The Participant has the right to
name and file with the Employer a written Beneficiary or Change of
Beneficiary form, designating the person or persons who shall receive
the benefits payable under this Plan in the event of the
Participant's death before the entire amount deferred is paid to the
Participant. The entire amount deferred {or the remaining part of
such deferrals if payment thereof has commenced) must be paid to a
beneficiary over--
(i) The life of the beneficiary (or any shorter period), if the
beneficiary is the participant's surviving spouse, or
(ii) A period not in excess of 15 years, if the beneficiary is
not the Participant's surviving spouse.
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The form for this purpose shall be provided by the Employer. It is
not binding on the Employer until it is signed, filed with the
Employer by the Participant and accepted by the Employer. If the
Participant dies without having a Beneficiary form on file, the
payment shall be made to the properly appointed fiduciary of the
Participant's probate estate. However, if a fiduciary has not been
appointed and qualified within one hundred twenty (120) days after
the death, the payment may be made first to a surviving spouse,
second to a surviving child or children, and third to a surviving
parent or parents. The Participant accepts and acknowledges that he
has the burden for executing and filing with the Employer a proper
Beneficiary designation form.
(el Commencement of Payment. The payment of benefits to the
Participant shall begin no later than thirty (30) days into the next
calendar year after the occurrence of the event that gives rise to the
beginning of the payment of benefits.
(f) Short-Term or Lump-Sum Settlement. Notwithstanding anything in
this Article to the contrary, if at any time the amounts held under this
Plan in the account maintained for the Participant, or his Beneficiary,
total to a credit of $2,000 or less, and for any reason the Participant
has ceased to be an Employee of the Employer, the Employer is authorized
to deviate from the restrictions imposed by the paragraphs in this Article
and effect a lump sum settlement.
(g) Options. All funds credited to the Participant's book account
shall be distributed by any one or more of the following methods:
A. Payment Options. As provided in subsections (a) through (d)
of this section, Participants may select:
Option 1. Lump-Sum Payment. In a lump sum.
Option 2. Payment for a Specified Period.
(a) In consecutive periodic payments monthly, quarterly,
semi-annudlly or annually over a period of years from the date
distribution began, not to exceed his life expectancy.
(b) In monthly, quarterly, semi-annual or annual
installments over the life expectancy of the Participant, or the
Participant and his spouse. Life expentancy shall be
actuarially determined by the Employer based on the date the
initial distribution shall begin.
Option 3. Life Annuity. An annuity payable during the
lifetime of the Participant.
Option 4. Life Annuity with Period Certain Guaranteed. An
annuity payable during the lifetime of the Participant, or his
Beneficiary, with the guarantee that if at Participant's death
payments have not been made for the guaranteed period as
elected, payments will continue to the Beneficiary or
Beneficiaries until payments have been made for the full
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guaranteed period elected. The guaranteed period to be elected
must be either five (5), ten (10), fifteen (15), or twenty (20)
years.
Option 5. Joint and Survivor Annuity. An annuity payment
during the lifetimes of the Participant and a secondary payee
named by the Participant.
If, at the time of his election to participate in the Plan the
Participant fails to select a payment option for any event which
causes payment of benefits to begin, he shall be deemed to have
elected to have the benefits payable upon occurrence of such event as
if he had elected annual payments for a specified period of ten (10)
years as provided for in Option 2a.
Section 4.02 Financial Hardship. Notwithstanding any other provision
herein, for "financial hardship" a Participant may apply to the Advisory
Committee to withdraw, in whole or in part, from the Plan prior to retirement or
any other termination of his employment with the Employer. If the application
for withdrawal is approved by the Advisory Committee, the withdrawal shall be
effected at the time designated by the Advisory Committee. Benefits to be paid
upon any withdrawal shall be limited strictly to that amount necessary to meet
the emergency situation constituting financial hardship. Any remaining benefits
shall be paid upon retirement, termination of employment, disability or death,
in accordance with Section 4.01 above. Withdrawal for "financial hardship"
shall be limited to real emergencies beyond the control of the Participant which
would cause him great hardship if early withdrawal were not permitted.
"Financial hardship" shall include the following: impending personal bankrupt-
cy; unexpected and unreimbursed major expenses resulting from illness or acci-
dent of the Participant or any dependent thereof; major property loss of any
other type of unexpected and unreimbursed personal expense of a major nature
that would not normally be budgetable. Foreseeable personal expenditures nor-
mally budgetable, such as a down payment for a home, the purchase of an automo-
bile, college or other schooling expenses, etc., will not constitute a
"financial hardship". The Advisory Committee will require written request for
the withdraw, stating the nature of the emergency and any applicable circumstan-
ces that will be of benefit to the Committee's decision making process. At its
discretion, the Advisory Committee may require additional financial information.
The decision of the Advisory Committee concerning "financial hardship" shall be
final as to all Participants.
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ARTICLE 5
M i scel 1 aneous
Section 5.01 Leave of Absence. If a Participant is on an approved leave
of absence from the Employer with compensation, participation in this Plan will
continue. If a Participant is on an approved leave of absence without compen-
sation and such leave of absence continues for more than six (6) months, said
Participant will be deemed to have terminated participation in the Plan as of
the end of such six (6) month period. Such termination of participation will
not cause distribution of benefits. Upon return from such leave of absence, the
Participant's full compensation on a non-deferred basis will be thereupon
restored. Such Employee may again become a Participant by meeting the require-
ments for eligibility as herein provided.
Section 5.02 Retirement System Integration. Benefits payable to, and
deductions for Employee contributions to, the retirement system of the Employer
shall be computed based upon gross compensation, including any amounts deferred
pursuant to this Deferred Compensation Plan. Total compensation for the pur-
poses of the retirement system of the Employee shall include all amounts
deducted by the Employee, or paid by the Employer, pursuant to the Deferred
Compensation Plan.
Section 5.03 Amendment. This Plan may be modified, amended or terminated
in whole or in party (including retroactive amendments) by the Employer at any
time. No amendment or termination of the Plan shall reduce or impair the rights
of any Participant or his Beneficiary which have already accrued. Upon ter-
mination of the Plan, the Employer shall distribute all amounts credited to each
Participation Account in accordance with the Participant's payment option
selected pursuant to Section 4.01. All Participants shall be treated in the
same manner.
Section 5.04 Creditors. A Participant may not assign, transfer, sell,
hypothecate, or otherwise dispose of any or all of his investment account or any
right which he may have under the Plan, and any attempt to do so shall be void.
Section 5.05 Employment. Participation in the Plan shall not be
construed as giving any Participant any right to continue his employment with
the Employer.
Section 5.06 Successors and Assigns. The Plan shall be binding upon and
shall inure to the benefit of the Employer, its successors and assigns, all
Participants and Beneficiaries and their heirs and legal representatives.
Section 5.07 Written Notice. Any notice or other communication required
or permitted under the Plan shall be in writing, and if directed to the
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Employer, shall be sent to the designated officer of the Employer, and, if
directed to a Participant or to a Beneficiary, shall be sent to such Participant
or Beneficiary at either his last known address as it appears on the Employer's
record or to his work site, at the Employer's option.
Section 5.08 Facility of Payment. If any Participant terminates his
employment with an unpaid debt owing to the Employer and neglects or refuses to
liquidate the debt by any other means when due and upon demand, the Employer
shall be entitled to collect the amounts due from the deferred compensation owed
to the Participant under the Plan.
Section 5.09 Total Agreement. This Plan and the Participation Agreement,
and any subsequently adopted amendment thereof, shall constitute the total
agreement or contract between the Employer and the Participant regarding the
Plan. No oral statement regarding the Plan may be relied upon by the
Participant.
Section 5.10 Gender. As used herein, the masculine shall include the
neuter and the feminine where appropriate.
Section 5.11 Controlling Law. This Plan is created and shall be
interpreted under the laws of the State of California as the same shall be at
the time any dispute or issue is raised.
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