Profit Sharing and Retirement Plan [Amended and Restated 2001] (255K)
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PROFIT SHARING AND RETIREMENT PLAN
OF CENTEX CORPORATION
(As Amended and Restated Effective January 1, 2001)
INDEX
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ARTICLE I DEFINITIONS............................................................................................2
ARTICLE II ADMINISTRATION OF THE PLAN...........................................................................10
2.1 Allocation of Responsibility Among Fiduciaries for Plan and Trust Administration............10
2.2 Appointment of Committee....................................................................10
2.3 Records and Reports.........................................................................11
2.4 Other Committee Powers and Duties...........................................................11
2.5 Rules and Decisions.........................................................................12
2.6 Committee Procedure.........................................................................12
2.7 Authorization of Benefit Payments...........................................................12
2.8 Payment of Expenses.........................................................................12
2.9 Application and Forms for Benefits..........................................................12
2.10 Committee Liability.........................................................................13
2.11 Quarterly Statements........................................................................13
2.12 Annual Audit................................................................................13
2.13 Investment Policy...........................................................................14
2.14 Allocation and Delegation of Committee Responsibilities.....................................14
ARTICLE III PARTICIPATION AND SERVICE...........................................................................15
3.1 Eligibility for Participation...............................................................15
3.2 Notification of Eligible Employees..........................................................15
3.3 Applications by Employees...................................................................15
3.4 Years of Service for Participation..........................................................15
3.5 Years of Vesting Service....................................................................16
3.6 Transferred Participants....................................................................16
3.7 Beneficiary Upon Death......................................................................17
3.8 Qualified Election..........................................................................18
3.9 Qualified Military Service..................................................................18
ARTICLE IV CONTRIBUTIONS AND FORFEITURES........................................................................19
4.1 Pre-Tax Contributions.......................................................................19
4.2 Employer Matching Contributions.............................................................20
4.3 Employer Profit Sharing Contributions.......................................................20
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4.4 After-Tax Contributions.....................................................................21
4.5 Payment and Deductions of Pre-Tax and After-Tax Contributions...............................21
4.6 Employer Matching Contributions, Employer Profit Sharing Contributions, and Pre-Tax
Contributions to be Tax Deductible...................................................21
4.7 Change of Elections and Suspension of Allotments............................................21
4.8 Application of Funds........................................................................21
4.9 Disposition of Forfeitures..................................................................21
4.10 Rollover Accounts...........................................................................22
4.11 Refunds to Employer.........................................................................23
ARTICLE V PARTICIPANT ACCOUNTS..................................................................................24
5.1 Individual Accounts.........................................................................24
5.2 Account Allocations and Adjustments.........................................................24
5.3 Limitations on Contributions................................................................25
5.4 Valuation of Trust Fund.....................................................................29
5.5 Recognition of Different Investment Funds...................................................29
ARTICLE VI VOLUNTARY WITHDRAWALS................................................................................30
6.1 Withdrawal from After-Tax Contribution......................................................30
6.2 Withdrawal from Pre-Tax Contribution Account................................................30
6.3 Withdrawal from Employer Profit Sharing Account and Employer Matching Contribution Account..30
6.4 Hardship Withdrawals........................................................................31
6.5 Rollover Account............................................................................32
6.6 In-Service Withdrawal of Vested Account Balance.............................................32
6.7 Loans to Participants.......................................................................33
ARTICLE VII PARTICIPANTS' BENEFITS..............................................................................34
7.1 Normal Retirement Date......................................................................34
7.2 Disability of Participants..................................................................34
7.3 Early Retirement Date.......................................................................34
7.4 Death of Participants.......................................................................34
7.5 Other Termination of Service................................................................34
7.6 Valuation Dates Determinative of Participant's Rights.......................................36
7.7 In-Service Distributions....................................................................37
ARTICLE VIII PAYMENT OF BENEFITS................................................................................38
8.1 Time of Payment.............................................................................38
8.2 Method of Payment...........................................................................39
8.3 Deferral of Payments in the Case of Non-Employee and Non-Eligible Employee Participants.....41
8.4 Cash Out of Vested Account Balance..........................................................41
8.5 Direct Rollovers............................................................................41
8.6 Required Minimum Distributions..............................................................42
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8.7 Election to Commence Benefits...............................................................42
8.8 Claims for Benefits.........................................................................42
8.9 Claims Review Procedure.....................................................................43
8.10 Disputed Benefits...........................................................................44
8.11 Optional Forms of Benefits..................................................................44
ARTICLE IX TRUST AGREEMENT; INVESTMENT FUNDS; INVESTMENT DIRECTIONS.............................................45
9.1 Trust Agreement.............................................................................45
9.2 Investment Funds............................................................................45
9.3 Investment Directions of Participants.......................................................45
9.4 Change of Investment Directions.............................................................45
9.5 Benefits Paid Solely from Trust Fund........................................................45
9.6 Committee Directions to Trustee.............................................................45
9.7 Authority to Designate Investment Manager...................................................46
9.8 Voting of Company Stock.....................................................................46
ARTICLE X ADOPTION OF PLAN BY OTHER ORGANIZATIONS; SEPARATION OF THE TRUST FUND; AMENDMENT AND TERMINATION OF
THE PLAN; DISCONTINUANCE OF CONTRIBUTIONS TO THE TRUST FUND.....................................................47
10.1 Adoptive Instrument.........................................................................47
10.2 Separation of the Trust Fund................................................................47
10.3 Voluntary Separation........................................................................48
10.4 Amendment of the Plan.......................................................................48
10.5 Acceptance of Amendment by Employers........................................................49
10.6 Termination of the Plan.....................................................................49
10.7 Liquidation and Distribution of Trust Fund Upon Termination.................................50
10.8 Effect of Termination or Discontinuance of Contributions....................................50
10.9 Merger of Plan with Another Plan............................................................51
10.10 Consolidation or Merger with Another Employer...............................................51
ARTICLE XI MISCELLANEOUS PROVISIONS.............................................................................52
11.1 Terms of Employment.........................................................................52
11.2 Controlling Law.............................................................................52
11.3 Invalidity of Particular Provisions.........................................................52
11.4 Non-Alienation of Benefits..................................................................52
11.5 Payments in Satisfaction of Claims of Participants..........................................52
11.6 Payments Due Minors and Incompetents........................................................53
11.7 Impossibility of Diversion of Trust Fund....................................................53
11.8 Litigation Against the Trust................................................................53
11.9 Evidence Furnished Conclusive...............................................................53
11.10 Copy Available to Participants..............................................................53
11.11 Unclaimed Benefits..........................................................................54
11.12 Headings for Convenience Only...............................................................54
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11.13 Successors and Assigns......................................................................54
ARTICLE XII TOP-HEAVY PLAN REQUIREMENTS.........................................................................55
12.1 General Rule................................................................................55
12.2 Vesting Provisions..........................................................................55
12.3 Minimum Contribution Percentage.............................................................55
12.4 Limitation on Compensation..................................................................56
12.5 Coordination With Other Plans...............................................................56
12.6 Distributions to Certain Key Employees......................................................56
12.7 Determination of Top-Heavy Status...........................................................57
12.8 Modification of Top-Heavy Rules.............................................................60
ARTICLE XIII TESTING OF CONTRIBUTIONS...........................................................................62
13.1 Definitions.................................................................................62
13.2 Actual Deferral Percentage..................................................................63
13.3 Actual Deferral Percentage Limits...........................................................63
13.4 Reduction of Pre-Tax Contribution Rates by Leveling Method..................................64
13.5 Increase in Pre-Tax Contribution Rates......................................................64
13.6 Excess Pre-Tax Contributions................................................................65
13.7 Contribution Percentage.....................................................................66
13.8 Contribution Percentage Limits..............................................................67
13.9 Treatment of Excess Aggregate Contributions.................................................67
13.10 Multiple Use of Alternative Limitation......................................................69
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APPENDIX A
APPENDIX B
APPENDIX C
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PROFIT SHARING AND RETIREMENT PLAN
OF CENTEX CORPORATION
(As Amended and Restated Effective January 1, 2001)
RECITALS
Centex Corporation (the "Company"), to aid eligible employees
accumulate capital for their future economic security, previously established on
March 1, 1954, the Profit Sharing and Retirement Plan of Centex Corporation (the
"Savings Plan"), as amended and restated effective March 1, 1976, and
subsequently amended thereafter. The Savings Plan was intended to constitute a
qualified cash or deferred profit sharing plan, within the meaning of sections
401(a) and 401(k) of the Internal Revenue Code. The Savings Plan was thereafter
amended and restated in its entirety to incorporate the provisions of the Tax
and Equity Fiscal Responsibility Act of 1982, the Tax Reform Act of 1984, and
the Retirement Equity Act of 1984. Effective April 1, 1989, the Company amended
and restated the Savings Plan to comply with the provisions of the Tax Reform
Act of 1986 and subsequent legislation (the "Prior Plan").
The Prior Plan was subsequently amended and restated effective
April 1, 1996, to provide for employer matching contributions and to make
certain other changes; it was again amended and restated effective April 1,
1997, to make certain changes and to comply with the provisions of the
Retirement Protection Act of 1994 under the General Agreement on Tariffs and
Trades, the Uniform Services Employment and Reemployment Rights Act, the Small
Business Job Protection Act of 1996 and the Taxpayer Relief Act of 1997. In
addition, the plan year was changed, effective January 1, 1999, to the calendar
year.
Effective January 1, 2001, the Prior Plan is amended and
restated to comply with applicable provisions of the Internal Revenue Service
Restructuring and Reform Act of 1998 and the Community Renewal Tax Relief Act of
2000, and make certain changes permitted or required under the Economic Growth
and Tax Relief Reconciliation Act of 2001, and to make certain design changes
(the "Plan"). The Plan and underlying trust are intended to meet the
requirements of Internal Revenue Code Sections 401(a), 401(k) and 501(a) and the
Employee Retirement Income Security Act of 1974, as either may be amended from
time to time. The provisions of the Plan shall apply to a Participant who
continues his Service (as hereinafter defined) after January 1, 2001 and, except
as otherwise expressly set forth herein, the rights and benefits, if any, of a
Prior Plan Participant who terminates his Service prior to January 1, 2001,
shall be determined under the provisions of the Plan in effect on the date his
Service terminated.
NOW, THEREFORE, Centex Corporation hereby authorizes the
amendment, restatement and continuation of the Prior Plan in the form of this
Plan, effective January 1, 2001, except as otherwise provided herein, to read as
follows:
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ARTICLE I
DEFINITIONS
As used in this Plan, the following words and phrases shall
have the following meanings unless the context clearly requires a different
meaning:
Account. Any of the accounts maintained for a Participant
pursuant to Section 5.1, or all such accounts collectively, as the context
requires.
Affiliate. A corporation or other trade or business which is
not an Employer under this Plan but which, together with the Company, is "under
common control" within the meaning of Code Section 414(b) or (c); any
organization (whether or not incorporated) which together with the Company, is a
member of an "affiliated service group" within the meaning of Code Section
414(m); and any other entity required to be aggregated with the Company pursuant
to regulations under Code Section 414(o).
After-Tax Contribution Account. The separate account
maintained for a Participant to record his After-Tax Contributions to the Plan
and adjustments relating thereto.
After-Tax Contributions. The amount of after-tax contributions
to the Trust Fund contributed by a Participant pursuant to the provisions of the
Plan in accordance with Section 4.4.
Beneficiary. A Participant's surviving spouse, or if no
surviving spouse exists or if a qualified election has been made pursuant to
Section 3.8, such other natural person or persons, or the trustee of an inter
vivos trust for the benefit of natural persons, entitled to benefits hereunder
following a Participant's death.
Board of Directors. The board of directors of the Company.
Break in Service. Any Plan Year during which an Employee or
Participant does not complete more than 500 Hours of Service with all the
Employers and Affiliates, determined as of the end of the Plan Year.
Code. The Internal Revenue Code of 1986, as amended from time
to time.
Commissioned Sales Employees. Employees who are paid on the
basis of commissions and not in fixed amounts at regular intervals. If an
Employee is paid on the basis of commissions or is in a position designated as
one paid on the basis of commissions, then such Employee shall be considered a
Commissioned Sales Employee under this section even if such Employee is paid a
forgiven draw or otherwise is paid a fixed amount at regular intervals for a
period of 6 months or less, provided, however, that any such Employee who is
reassigned to a position which is not paid, or not designated to be paid, on the
basis of commissions, shall not be considered a Commissioned Sales Employee
while in any such position. An Employee who is paid in fixed amounts at regular
intervals for more than 6 months shall not be considered a Commissioned Sales
Employee for the period following such 6 month period until the Employee
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