Acquisition Plan (2000)Full Document 

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                     UNITED RENTALS, INC. ACQUISITION PLAN













                                                 Adopted Effective April 1, 1999
                             UNITED RENTALS, INC.
                               ACQUISITION PLAN

                               Table of Contents
                               -----------------

Page ---- ARTICLE I Establishment of the Plan 1.1 Establishment of Plan........................................... 1 1.2 Establishment of Trust.......................................... 1 1.3 Effective Date.................................................. 1 1.4 Name and Designation............................................ 1 1.5 Withdrawal of Affiliated Companies.............................. 1 1.6 Appendices...................................................... 2 ARTICLE II Definitions 2.1 Account......................................................... 3 2.2 Administrator................................................... 3 2.3 Affiliated Company.............................................. 3 2.4 Beneficiary..................................................... 3 2.5 Board........................................................... 3 2.6 Break in Service................................................ 3 2.7 Code............................................................ 5 2.8 Company......................................................... 5 2.9 Compensation.................................................... 5 2.10 Effective Date.................................................. 7 2.11 Employee........................................................ 7 2.12 Employer........................................................ 7 2.13 Employer Contribution........................................... 7 2.14 Employment Commencement Date.................................... 7 2.15 ERISA........................................................... 7 2.16 Fiduciary....................................................... 7 2.19 Fiscal Year..................................................... 8 2.18 Highly Compensated Employee..................................... 8 2.19 Hour of Service................................................. 9 2.20 Normal Retirement Age........................................... 10
-ii- 2.21 Participant.................................................... 10 2.22 Plan........................................................... 10 2.23 Plan Year...................................................... 10 2.24 Prior Employer................................................. 10 2.25 Prior Employer Plan............................................ 10 2.26 Qualified Military Service..................................... 10 2.27 Rollover Contributions......................................... 11 2.28 Termination of Employment...................................... 11 2.29 Total and Permanent Disability................................. 11 2.30 Transaction Date............................................... 11 2.31 Trust.......................................................... 11 2.32 Trustees....................................................... 11 2.33 Valuation Date................................................. 12 2.34 Vesting Computation Period..................................... 12 2.35 Year of Credited Service....................................... 12 ARTICLE III Eligibility 3.1 Participation.................................................. 12 3.2 Treatment of Qualified Military Service........................ 12 ARTICLE IV Contributions 4.1 Employer Contributions......................................... 12 4.2 Payment........................................................ 12 4.3 Company Determination.......................................... 13 4.4 Rollover Contributions......................................... 13 4.5 Direct Transfers............................................... 13 4.6 Limits for Highly Compensated.................................. 14 4.7 Correction of Excess Contributions............................. 20 4.8 Correction of Excess Deferrals................................. 25 4.9 Correction of Excess Aggregate Contributions................... 28 4.10 Correction of Multiple Use..................................... 32 ARTICLE V Individual Accounts 5.1 Individual Accounts............................................ 33
-iii- 5.2 Allocation of Contributions...................................... 34 5.3 Allocation of Earnings........................................... 34 5.4 Investment Direction............................................. 36 ARTICLE VI Termination of Employment 6.1 Normal Retirement................................................ 38 6.2 Late Retirement.................................................. 38 6.3 Early Retirement................................................. 38 6.4 Disability Retirement............................................ 39 6.5 Termination Due to Death......................................... 39 6.6 Other Termination of Employment.................................. 39 6.7 Qualified Domestic Relations Orders.............................. 39 6.8 Lost Beneficiary................................................. 43 6.9 Offsets.......................................................... 44 ARTICLE VII Payment of Benefits 7.1 General.......................................................... 44 7.2 Form of Payment.................................................. 45 7.3 Direct Rollovers................................................. 45 7.4 Notice and Payment Elections..................................... 48 7.5 Mandatory Distributions.......................................... 49 7.6 Commencement of Benefits......................................... 50 7.7 Payments to Incompetents......................................... 51 7.8 Income Tax Withholding........................................... 51 ARTICLE VIII Distributions to Beneficiaries 8.1 General.......................................................... 51 8.2 Normal Form of Payment........................................... 51 8.3 Beneficiary Designation.......................................... 52 8.4 Qualified Pre-Retirement Survivor Annuity........................ 53 8.5 Qualified Joint and Survivor Annuity............................. 57
-iv- ARTICLE IX Withdrawals and Loans 9.1 Withdrawals..................................................... 63 9.2 Hardship Withdrawals............................................ 64 9.3 Loans........................................................... 67 ARTICLE X Contribution and Benefit Limitations 10.1 Contribution Limits............................................. 72 10.2 Overall Limits.................................................. 73 10.3 Annual Adjustments to Limits.................................... 73 10.4 Excess Amounts.................................................. 74 10.5 Definitions..................................................... 75 ARTICLE XI Top-Heavy Rules 11.1 General......................................................... 77 11.2 Vesting......................................................... 78 11.3 Minimum Contribution............................................ 78 11.4 Definitions..................................................... 79 11.5 Special Rules................................................... 82 11.6 Adjustment of Limitations....................................... 84 ARTICLE XII Administration of the Plan 12.1 Committee as Administrator...................................... 84 12.2 Procedures...................................................... 85 12.3 Bond and Compensation........................................... 85 12.4 Duties of the Committee......................................... 85 12.5 Allocation and Delegation of Responsibilities................... 86 12.6 Committee Accounts.............................................. 87 12.7 Company to Furnish Information.................................. 87 12.8 Expenses........................................................ 87 12.9 Indemnification................................................. 88 12.10 Reports......................................................... 88
-v- ARTICLE XIII Claims Procedure 13.1 Claims Submission............................................... 88 13.2 Claim Review.................................................... 99 13.3 Right of Appeal................................................. 99 13.4 Review of Appeal................................................ 90 13.5 Designation..................................................... 90 ARTICLE XIV Amendments 14.1 Right to Amend.................................................. 90 14.2 Limitations..................................................... 91 14.3 Amendment to Vesting Schedule................................... 91 ARTICLE XV Termination 15.1 Right to Terminate.............................................. 92 15.2 Full Vesting on Termination..................................... 92 15.3 Partial Termination............................................. 92 15.4 Distribution on Termination..................................... 93 15.5 Affect on Benefits.............................................. 94 ARTICLE XVI Miscellaneous 16.1 IRS Approval.................................................... 94 16.2 No Assignment................................................... 95 16.3 Merger.......................................................... 96 16.4 Governing Law................................................... 96 16.5 Construction.................................................... 96 16.6 Company Determinations.......................................... 96 16.7 Counterpart Originals........................................... 97 16.8 Affect on Employment Rights..................................... 97
-vi- -------------------------------------------------------------------------------- APPENDICES -------------------------------------------------------------------------------- 1 A&A Tool Rentals and Sales -------------------------------------------------------------------------------- 2 Valley Rentals -------------------------------------------------------------------------------- 3 U.S. Rentals -------------------------------------------------------------------------------- 4 West Main Rentals & Sales -------------------------------------------------------------------------------- 5 Rental Tools & Equipment Co. International -------------------------------------------------------------------------------- 6 Power Rental Company -------------------------------------------------------------------------------- 7 Mercer Equipment -------------------------------------------------------------------------------- 8 Access Rentals -------------------------------------------------------------------------------- 9 Gene's Village Rental & Sales, Inc. -------------------------------------------------------------------------------- 10 Space Maker of VA -------------------------------------------------------------------------------- 11 Tool Center of Texas -------------------------------------------------------------------------------- 12 McClinch Equipment Corporation -------------------------------------------------------------------------------- 13 Mission Valley Rentals -------------------------------------------------------------------------------- 14 San Leandro Equipment Rental Service -------------------------------------------------------------------------------- 15 Channel Equipment Company -------------------------------------------------------------------------------- 16 ASC Equipment Company, Inc. -------------------------------------------------------------------------------- 17 EGW Machiners (High Reach) -------------------------------------------------------------------------------- 18 Arrow Equipment -------------------------------------------------------------------------------- 19 Industrial Lift, Inc. -------------------------------------------------------------------------------- 20 Gaedcke Equipment Company -------------------------------------------------------------------------------- 21 Kubota of Grand Rapids -------------------------------------------------------------------------------- 22 Madison Equipment -------------------------------------------------------------------------------- 23 Cave Holdings (Equipment Supply; Rylan and High Reach) -------------------------------------------------------------------------------- 24 Carlson Equipment Company -------------------------------------------------------------------------------- UNITED RENTALS, INC. ACQUISITION PLAN ARTICLE I Establishment of the Plan ------------------------- 1.1 Establishment of Plan. United Rentals, Inc., a Delaware corporation --------------------- (the "Company"), does hereby establish and adopt this Plan to provide retirement benefits for certain Employees and to hold the assets transferred to it by the plans maintained on behalf of certain businesses that have been acquired by the Company. 1.2 Establishment of Trust. To implement the provisions of this Plan, the ---------------------- Trustees do hereby establish and adopt the Trust to receive, invest and distribute contributions, the assets described in section 1.1 above and earnings thereon. The Trust, as established hereunder, shall be the sole source of benefits under the Plan and the Company shall not have any liability for the adequacy of the benefits provided under the Plan. 1.3 Effective Date. This Plan and the accompanying Trust shall be -------------- effective as of April 1, 1999 except as otherwise stated herein. 1.4 Name and Designation. The name of the Plan is the United Rentals, -------------------- Inc. Acquisition Plan. The name of the Trust is the United Rentals, Inc. Acquisition Trust. The Plan is a defined contribution, discretionary profit sharing plan. 1.5 Withdrawal of Affiliated Companies. ---------------------------------- (a) An Affiliated Company's adoption of this Plan may be terminated, voluntarily or involuntarily, at any time, as provided in this section. -2- (b) An Affiliated Company shall withdraw from the Plan and Trust if the Plan and Trust, with respect to that Affiliated Company, fail to qualify under sections 401(a) and 501(a) of the Code (or, in the opinion of the Trustees, they may fail to so qualify) and the continued sponsorship of that Affiliated Company may jeopardize the status, with respect to the Employer, of the Plan and Trust under sections 401 and 501(a) of the Code. An Affiliated Company that no longer qualifies as an Affiliated Company shall withdraw from the Plan and Trust if so directed by the Administrator. The Affiliated Company shall receive at least thirty (30) days prior written notice of a withdrawal under this subsection, unless a shorter period is agreed to. (c) An Affiliated Company may voluntarily withdraw from the Plan and Trust for any reason. Such withdrawal requires at least thirty (30) days written notice to the Administrator and the Trustees, unless a shorter period is agreed to. (d) Upon withdrawal, the Trustees shall segregate the assets attributable to Employees of the withdrawn Affiliated Company, the amount thereof to be determined by the Administrator and the Trustees. The segregated assets shall be held, paid to another trust, distributed or otherwise disposed of as is appropriate under the circumstances; provided, however, that any transfer shall be for the exclusive benefit of Participants and their Beneficiaries. A withdrawal of an Affiliated Company from the Plan is not necessarily a termination under ARTICLE XV. If the withdrawal is a termination then the provisions of ARTICLE XV shall also be applicable. 1.6 Appendices. To the extent the provisions of any Appendix to this Plan ---------- contradict or supplement any other provision of the Plan, then the provisions of such Appendix shall prevail, notwithstanding any provision of the Plan to the contrary. -3- ARTICLE II Definitions ----------- 2.1 Account. The individual bookkeeping account established for each ------- Participant, as provided in section 5.1. 2.2 Administrator. The person, persons, corporation, committee, group or ------------- organization designated to be the Administrator of the Plan and to perform the duties of the Administrator. 2.3 Affiliated Company. Any corporation or other entity that, together ------------------ with the Company, constitutes a member of a controlled group within the meaning of sections 414(b) or (c) of the Code, constitutes a member of an affiliated service group, within the meaning of section 414(m) of the Code, or constitutes any other entity required to be aggregated under section 414(o) of the Code. All such entities, whether or not incorporated, shall be treated as a single employer to the extent required by the Code. 2.4 Beneficiary. The person or persons (including a trust or trusts) who ----------- are entitled to receive benefits from a deceased Participant's Account after such Participant's death (whether or not such person or persons are expressly so designated by the Participant). 2.5 Board. The board of directors of the Company. ----- 2.6 Break in Service. ---------------- (a) A twelve (12) consecutive month period commencing on a Participant's Termination of Employment (and subsequent anniversaries thereof) during which the Participant does not perform any Hours of Service. -4- (b) (1) In computing Hours of Service to determine whether a person has a Break in Service, a person shall be credited with up to five hundred one (501) Hours of Service based on the person's previous customary service with the Employer for any period of absence from work as a result of: (A) the pregnancy of such person; (B) the birth of a child of such person; (C) the placement of a child with such person in connection with the adoption of such child by such person; or (D) the caring for such child for a period beginning immediately following such birth or placement. (2) If the previous customary service cannot be determined, then such credit shall be at the rate of eight (8) Hours of Service per day. (c) The Hours of Service credited under subsection (b) shall be credited in the Vesting Computation Period in which the absence from work begins, if the person would be prevented from having a Break in Service in such Vesting Computation Period solely because of the Hours of Service credited under subsection (b). If the person would not be prevented from having a Break in Service during the period described in the preceding sentence, then such Hours of Service shall be credited in the Vesting Computation Period immediately following those in which such absence from work begins. -5- (d) No credit shall be given under subsection (b) unless such person furnishes the Administrator with information necessary to establish that the absence is for one of the reasons enumerated in subsection (b) and the number of days of such absence. 2.7 Code. The Internal Revenue Code of 1986, as amended. ---- 2.8 Company. United Rentals, Inc., a Delaware corporation. ------- 2.9 Compensation. ------------ (a) All of the wages as defined in section 3401(a) of the Code (for purposes of income tax withholding at the source), but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed. This definition shall
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