Document:

EX-4.4

 Exhibit 4.4 
  

 
 TIMKENSTEEL CORPORATION SAVINGS PLAN 

FOR CERTAIN BARGAINING EMPLOYEES 
  

(Effective June 30, 2014) 

 TIMKENSTEEL CORPORATION SAVINGS PLAN 

FOR CERTAIN BARGAINING EMPLOYEES 

PREAMBLE 
 TimkenSteel
Corporation (the “Company”) established the TimkenSteel Corporation Savings Plan for Certain Bargaining Employees (the “Plan”) effective as of June 30, 2014. 

Prior to June 30, 2014, the Company was a wholly owned subsidiary of The Timken Company (“Timken”). On June 30, 2014,
Timken distributed to its shareholders all of the outstanding common shares, without par value, of the Company (the “Spinoff”), and as a result the Company ceased to be a subsidiary of Timken. 

Prior to the Spinoff, Timken sponsored The Timken Company Savings Plan for Certain Bargaining Associates (the “Prior Plan”). In
connection with the Spinoff, the assets and liabilities of the Prior Plan attributable to the Transferred Participants, as defined below, were spun off from the Prior Plan to this Plan, effective as of June 30, 2014, and such Transferred
Participants ceased participation in the Prior Plan and became Participants in this Plan. For the purposes of the Plan, “Transferred Participants” means individuals who were participants in the Prior Plan immediately prior to the Spinoff
and who: (a) are employed by the Company or one of its subsidiaries as of the close of business on June 30, 2014; or (b) terminated employment with Timken and its subsidiaries prior to the Spinoff and have been designated by Timken
prior to the Spinoff as eligible to participate in the Plan. For the purposes of the Plan, “Transferred Employees” means individuals who are Transferred Participants, and individuals who would otherwise be considered Transferred
Participants under (a) or (b) of the previous sentence, except that they were not yet participants in the Prior Plan. 
 The
benefits, rights and features of the Plan for any Transferred Employees whose employment with Timken terminated prior to June 30, 2014 shall be governed by the terms and provisions of the Prior Plan as in effect on the date of such termination.

 Effective as of June 30, 2014, the Plan is hereby amended in its entirety to reflect the merger of the TimkenSteel Corporation
Latrobe Voluntary Investment Program with and into the Plan and the designation of the portion of the Plan invested in Company Stock as an employee stock ownership plan. 

The Plan is a profit-sharing plan intended to meet the requirements of Section 401(a) of the Internal Revenue Code of 1986 and the
Employee Retirement Income Security Act of 1974 and subsequent legislation, and the Plan and contributions are expressly conditioned upon qualification thereunder. The portion of the Plan invested in Company Stock is intended to be a stock bonus
plan, as defined in Treasury Regulation section 1.401-1(b)(1)(iii), and an employee stock ownership plan, satisfying the requirements of Section 4975(e)(7) of the Internal Revenue Code of 1986. 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page 	 
			
	SECTION 1	    	 DEFINITIONS
	  	 	1	  
			
	 1.1
	    	“Actual Contribution Percentage”	  	 	1 	  
			
	 1.2
	    	“Affiliated Company”	  	 	1 	  
			
	 1.3
	    	“Alternate Payee”	  	 	1 	  
			
	 1.4
	    	“Before-Tax Contribution”	  	 	1 	  
			
	 1.5
	    	“Beneficiary”	  	 	2 	  
			
	 1.6
	    	“Benefit Commencement Date”	  	 	2 	  
			
	 1.7
	    	“Board”	  	 	2 	  
			
	 1.8
	    	“Code”	  	 	2 	  
			
	 1.9
	    	“Company”	  	 	2 	  
			
	 1.10
	    	“Company Matching Contributions”	  	 	2 	  
			
	 1.11
	    	“Company Stock”	  	 	2 	  
			
	 1.12
	    	“Compensation”	  	 	2 	  
			
	 1.13
	    	“Compensation Deferral Limit”	  	 	3 	  
			
	 1.14
	    	“Deferral Percentage”	  	 	3 	  
			
	 1.15
	    	“Determination Year”	  	 	4 	  
			
	 1.16
	    	“Disability”	  	 	4 	  
			
	 1.17
	    	“Effective Date”	  	 	4 	  
			
	 1.18
	    	“Eligibility Computation Period”	  	 	4 	  
			
	 1.19
	    	“Eligible Employee”	  	 	5 	  
			
	 1.20
	    	“Employee”	  	 	5 	  
			
	 1.21
	    	“Employment Commencement Date”	  	 	5 	  
			
	 1.22
	    	“ERISA”	  	 	5 	  
			
	 1.23
	    	“ESOP”	  	 	5 	  
			
	 1.24
	    	“ESOP Account”	  	 	5 	  
			
	 1.25
	    	“ESOP Subaccount”	  	 	5 	  
			
	 1.26
	    	“Forfeiture”	  	 	5 	  
			
	 1.27
	    	“Highly Compensated Employee”	  	 	6 	  
			
	 1.28
	    	“Hour of Service”	  	 	6 	  
			
	 1.29
	    	“Investment Committee”	  	 	7 	  
			
	 1.30
	    	“Latrobe Rollover Contributions”	  	 	7 	  
			
	 1.31
	    	“Latrobe Transferred Participant”	  	 	7 	  

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 	 
			
	 1.32
	    	“Latrobe Wage Reduction Contributions”	  	 	7 	  
			
	 1.33
	    	“Leased Employee”	  	 	7 	  
			
	 1.34
	    	“Leave of Absence”	  	 	7 	  
			
	 1.35
	    	“Limitation Year”	  	 	7 	  
			
	 1.36
	    	“Look-Back Year”	  	 	7 	  
			
	 1.37
	    	“Non-ESOP Account”	  	 	7 	  
			
	 1.38
	    	“Non-ESOP Subaccount”	  	 	8 	  
			
	 1.39
	    	“Nonhighly Compensated Employee”	  	 	8 	  
			
	 1.40
	    	“Normal Retirement Date”	  	 	8 	  
			
	 1.41
	    	“Participant”	  	 	8 	  
			
	 1.42
	    	“Participant Contribution”	  	 	8 	  
			
	 1.43
	    	“Participating Subsidiary”	  	 	8 	  
			
	 1.44
	    	“Period of Severance”	  	 	8 	  
			
	 1.45
	    	“Plan”	  	 	8 	  
			
	 1.46
	    	“Plan Administrator”	  	 	8 	  
			
	 1.47
	    	“Plan Year”	  	 	8 	  
			
	 1.48
	    	“Prior Plan”	  	 	9 	  
			
	 1.49
	    	“Qualified Domestic Relations Order”	  	 	9 	  
			
	 1.50
	    	“Retirement Date”	  	 	9 	  
			
	 1.51
	    	“Rollover Contribution”	  	 	9 	  
			
	 1.52
	    	“Salary Deferral Agreement”	  	 	9 	  
			
	 1.53
	    	“Separation Date”	  	 	9 	  
			
	 1.54
	    	“Service”	  	 	10 	  
			
	 1.55
	    	“Spinoff”	  	 	11 	  
			
	 1.56
	    	“Spouse”	  	 	11 	  
			
	 1.57
	    	“Timken”	  	 	11 	  
			
	 1.58
	    	“Timken Stock”	  	 	11 	  
			
	 1.59
	    	“Total Account”	  	 	11 	  
			
	 1.60
	    	“Transferred Employees”	  	 	12 	  
			
	 1.61
	    	“Transferred Participants”	  	 	12 	  
			
	 1.62
	    	“Trustee”	  	 	12 	  
			
	 1.63
	    	“Trust Fund”	  	 	12 	  

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 	 
			
	 1.64
	    	“Valuation Date”	  	 	12 	  
			
	 1.65
	    	“Vested”	  	 	12 	  
			
	 1.66
	    	“Year of Service”	  	 	12 	  
			
	SECTION 2	    	 PARTICIPATION
	  	 	14	  
			
	 2.1
	    	PARTICIPATION REQUIREMENTS	  	 	14 	  
			
	 2.2
	    	APPLICATION TO PARTICIPATE	  	 	14 	  
			
	 2.3
	    	EFFECTIVE DATE OF ELECTIONS	  	 	14 	  
			
	 2.4
	    	PARTICIPATION UPON REEMPLOYMENT	  	 	15 	  
			
	 2.5
	    	TERMINATION OF PARTICIPATION	  	 	15 	  
			
	 2.6
	    	VETERAN’S RIGHTS	  	 	15 	  
			
	SECTION 3	    	 PARTICIPANT CONTRIBUTIONS
	  	 	16	  
			
	 3.1
	    	PARTICIPANT CONTRIBUTIONS	  	 	16 	  
			
	 3.2
	    	INCREASE OR DECREASE IN RATE OF CONTRIBUTIONS	  	 	17 	  
			
	 3.3
	    	SUSPENSION AND RESUMPTION OF CONTRIBUTIONS	  	 	17 	  
			
	 3.4
	    	EFFECTIVE DATE OF ELECTIONS	  	 	17 	  
			
	 3.5
	    	ROLLOVER CONTRIBUTIONS	  	 	17 	  
			
	 3.6
	    	MAXIMUM AMOUNT OF SALARY DEFERRAL	  	 	18 	  
			
	SECTION 4	    	 COMPANY MATCHING CONTRIBUTIONS
	  	 	20	  
			
	 4.1
	    	COMPANY MATCHING CONTRIBUTIONS	  	 	20 	  
			
	 4.2
	    	FORM OF COMPANY MATCHING CONTRIBUTION	  	 	20 	  
			
	 4.3
	    	COMPANY MATCHING CONTRIBUTIONS REDUCED BY FORFEITURES	  	 	20 	  
			
	 4.4
	    	ESTABLISHMENT OF PARTICIPANT ACCOUNTS	  	 	20 	  
			
	 4.5
	    	FORFEITURES	  	 	21 	  
			
	 4.6
	    	NONDISCRIMINATION REQUIREMENTS	  	 	21 	  
			
	 4.7
	    	ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE	  	 	23 	  
			
	 4.8
	    	ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE	  	 	25 	  
			
	 4.9
	    	TESTING PROCEDURES	  	 	26 	  
			
	 4.10
	    	AGGREGATION OF PLANS	  	 	26 	  
			
	 4.11
	    	DISAGGREGATION OF PLAN	  	 	26 	  
			
	 4.12
	    	CODE SECTION 415 LIMITS	  	 	27 	  

  
 -iii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 	 
			
	SECTION 5	    	 INVESTMENT PROVISIONS
	  	 	28	  
			
	 5.1
	    	DESCRIPTION OF FUNDS	  	 	28 	  
			
	 5.2
	    	INVESTMENT ELECTION	  	 	29 	  
			
	 5.3
	    	CHANGE IN INVESTMENT ELECTION	  	 	29 	  
			
	 5.4
	    	RESPONSIBILITY OF PARTICIPANT IN MAKING INVESTMENT ELECTIONS	  	 	30 	  
			
	 5.5
	    	TRANSFER OF FUNDS	  	 	30 	  
			
	 5.6
	    	STOCK RIGHTS, STOCK DIVIDENDS AND STOCK SPLITS	  	 	30 	  
			
	 5.7
	    	TRADING RESTRICTIONS	  	 	31 	  
			
	 5.8
	    	RECOVERY OF ERRONEOUS PAYMENTS	  	 	32 	  
			
	SECTION 6	    	 VESTING
	  	 	33	  
			
	 6.1
	    	VESTING OF PARTICIPANT CONTRIBUTIONS	  	 	33 	  
			
	 6.2
	    	VESTING OF COMPANY MATCHING CONTRIBUTIONS	  	 	33 	  
			
	 6.3
	    	VESTING OF REINVESTED DIVIDENDS	  	 	33 	  
			
	SECTION 7	    	 DISTRIBUTIONS
	  	 	34	  
			
	 7.1
	    	DISTRIBUTION ON RETIREMENT, DISABILITY OR OTHER TERMINATION OF SERVICE	  	 	34 	  
			
	 7.2
	    	LUMP SUM DISTRIBUTIONS	  	 	35 	  
			
	 7.3
	    	DISTRIBUTIONS ON DEATH	  	 	35 	  
			
	 7.4
	    	INVESTMENT OF DEFERRED DISTRIBUTIONS	  	 	37 	  
			
	 7.5
	    	PROOF OF DEATH	  	 	37 	  
			
	 7.6
	    	LOAN AS A DISTRIBUTION	  	 	37 	  
			
	 7.7
	    	DISTRIBUTION TO ALTERNATE PAYEES	  	 	38 	  
			
	 7.8
	    	NOTICE TO PAYEES	  	 	38 	  
			
	 7.9
	    	RESTRICTIONS ON DISTRIBUTIONS	  	 	38 	  
			
	 7.10
	    	ELIGIBLE ROLLOVER DISTRIBUTIONS	  	 	39 	  
			
	 7.11
	    	REQUIRED MINIMUM DISTRIBUTIONS	  	 	40 	  
			
	SECTION 8	    	 WITHDRAWALS AND LOANS DURING EMPLOYMENT
	  	 	45	  
			
	 8.1
	    	HARDSHIP WITHDRAWALS	  	 	45 	  
			
	 8.2
	    	RESTORATION OF WITHDRAWALS	  	 	47 	  
			
	 8.3
	    	TIMING OF WITHDRAWALS	  	 	47 	  
			
	 8.4
	    	LOANS	  	 	47 	  
			
	 8.5
	    	TIMING OF LOANS	  	 	49 	  
			
	 8.6
	    	COMPLIANCE WITH LAW	  	 	49 	  

  
 -iv- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 	 
			
	SECTION 9	    	 ADMINISTRATION OF THE PLAN
	  	 	50	  
			
	 9.1
	    	THE PLAN ADMINISTRATOR	  	 	50 	  
			
	 9.2
	    	POWERS OF THE PLAN ADMINISTRATOR	  	 	50 	  
			
	 9.3
	    	PLAN ADMINISTRATION	  	 	51 	  
			
	 9.4
	    	INDEMNIFICATION	  	 	53 	  
			
	 9.5
	    	FIDUCIARY INSURANCE	  	 	53 	  
			
	 9.6
	    	FILINGS WITH THE PLAN ADMINISTRATOR	  	 	54 	  
			
	 9.7
	    	PAYEE UNKNOWN	  	 	54 	  
			
	 9.8
	    	RELIANCE ON STATEMENTS OF PARTICIPANTS AND BENEFICIARIES	  	 	54 	  
			
	 9.9
	    	DISTRIBUTION TO MINORS AND INCAPACITATED PAYEES	  	 	55 	  
			
	 9.10
	    	CLAIMS FOR DISABILITY BENEFITS	  	 	55 	  
			
	SECTION 10	    	 ADMINISTRATION OF THE TRUST
	  	 	59	  
			
	 10.1
	    	TRUST AGREEMENT	  	 	59 	  
			
	 10.2
	    	PROVISIONS OF THE TRUST AGREEMENT	  	 	59 	  
			
	 10.3
	    	EXCLUSIVE BENEFIT OF PARTICIPANTS	  	 	59 	  
			
	 10.4
	    	DIRECTIONS OF THE PLAN ADMINISTRATOR	  	 	59 	  
			
	 10.5
	    	COORDINATION OF PLAN AND TRUST AGREEMENT	  	 	59 	  
			
	 10.6
	    	INVESTMENT COMMITTEE	  	 	60 	  
			
	 10.7
	    	RETURN OF CONTRIBUTIONS	  	 	60 	  
			
	SECTION 11	    	 AMENDMENT, TERMINATION, OR MERGER OF THE PLAN
	  	 	61	  
			
	 11.1
	    	RIGHT TO AMEND	  	 	61 	  
			
	 11.2
	    	RIGHT TO TERMINATE	  	 	61 	  
			
	 11.3
	    	NOTICE OF TERMINATION	  	 	61 	  
			
	 11.4
	    	TERMINATION OF TRUST	  	 	61 	  
			
	 11.5
	    	DISCONTINUANCE OF CONTRIBUTIONS	  	 	62 	  
			
	 11.6
	    	MERGER OF PLANS	  	 	62 	  
			
	SECTION 12	    	 ESOP PROVISIONS
	  	 	63	  
			
	 12.1
	    	ESTABLISHMENT OF ESOP	  	 	63 	  
			
	 12.2
	    	ESOP ACCOUNT	  	 	63 	  
			
	 12.3
	    	INVESTMENT DIRECTION	  	 	63 	  

  
 -v- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 	 
			
	 12.4
	    	PAYMENT OF DIVIDENDS	  	 	63 	  
			
	 12.5
	    	VOTING AND TENDER OF COMPANY STOCK	  	 	64 	  
			
	 12.6
	    	RIGHT TO RECEIVE A DISTRIBUTION OF COMPANY STOCK	  	 	64 	  
			
	 12.7
	    	COMMENCEMENT OF DISTRIBUTIONS	  	 	64 	  
			
	 12.8
	    	PUT OPTION	  	 	64 	  
			
	 12.9
	    	SHARE LEGEND	  	 	66 	  
			
	 12.10
	    	DIVERSIFICATION	  	 	66 	  
			
	 12.11
	    	LIMITATION ON PERIOD OF DISTRIBUTION	  	 	66 	  
			
	 12.12
	    	OTHER PROVISIONS SUPERSEDED	  	 	66 	  
			
	SECTION 13	    	 TIMKEN STOCK FUND
	  	 	67	  
			
	 13.1
	    	GENERAL	  	 	67 	  
			
	 13.2
	    	VOTING AND TENDER OF TIMKEN STOCK	  	 	68 	  
			
	SECTION 14	    	 MISCELLANEOUS PROVISIONS
	  	 	69	  
			
	 14.1
	    	GENDER	  	 	69 	  
			
	 14.2
	    	INVESTMENTS AND EXPENSES	  	 	69 	  
			
	 14.3
	    	VOTING AND TENDER OF COMPANY STOCK	  	 	69 	  
			
	 14.4
	    	STATEMENTS OF ACCOUNTS	  	 	69 	  
			
	 14.5
	    	NONALIENABILlTY OF BENEFITS	  	 	69 	  
			
	 14.6
	    	ACQUISITIONS AND DIVESTITURES	  	 	70 	  
			
	 14.7
	    	CHANGE IN OPERATIONS	  	 	71 	  
			
	 14.8
	    	LIMITATION ON DISTRIBUTIONS	  	 	71 	  
			
	 14.9
	    	LIMITATION ON REVERSION OF CONTRIBUTIONS	  	 	71 	  
			
	 14.10
	    	VOLUNTARY PLAN	  	 	72 	  
			
	 14.11
	    	LIMITATION OF THIRD PARTY RIGHTS	  	 	72 	  
			
	 14.12
	    	INVALID PROVISIONS	  	 	72 	  
			
	 14.13
	    	ONE PLAN	  	 	72 	  
			
	 14.14
	    	GOVERNING LAW	  	 	73 	  
			
	 14.15
	    	TRADE CONTROL POLICY	  	 	73 	  
			
	 14.16
	    	PAYMENTS IN EVENT OF INCOMPETENCE	  	 	74 	  

  
 -vi- 

 SECTION 1 

DEFINITIONS 
  

	 	1.1	 “Actual Contribution Percentage” means, with respect to a specified group of Employees for a Plan Year, the average of the ratios
(calculated separately for each Employee in such group) of: (a) any Company Matching Contributions made on behalf of a Participant for a Plan Year, as well as any Before-Tax Contributions (excluding any Catch-Up Contributions) that are treated
by the Plan Administrator as matching contributions under the Plan, to (b) such Participant’s Compensation (within the meaning of Section 415(c)(3) of the Code) for such Plan Year. 

In calculating the Actual Contribution Percentage, the actual contribution ratio of a Highly Compensated Employee will be
determined by treating all plans subject to Section 401(m) of the Code under which the Highly Compensated Employee is eligible (other than those that may not be permissively aggregated) as a single plan, and in the event that such plans have
different plan years, all Company Matching Contributions made during the Plan Year under all such plans shall be aggregated. 
  

	 	1.2	 “Affiliated Company” means any of the following: 

 

	 	(a)	 Any corporation which is a member of a controlled group of corporations, which includes the Company, determined under the provisions of
Section 414(b) of the Code; 

  

	 	(b)	 Any trade or business (whether or not incorporated) which is under common control (as defined in Section 414(c) of the Code) with the Company;

  

	 	(c)	 Any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code)
which includes the Company; and 

  

	 	(d)	 Any other entity required to be aggregated with the Company pursuant to regulations under Section 414(m) of the Code. 

A corporation, trade, or business, or member of an affiliated service group shall be treated as an Affiliated Company only
while it is a member of the group. 
  

	 	1.3	 “Alternate Payee” means any spouse, former spouse, child, or other dependent of a Participant recognized by a Qualified Domestic
Relations Order as having a right to receive all, or a portion of, the Participant’s nonforfeitable benefits under the Plan. 

  

	 	1.4	 “Before-Tax Contribution” means a contribution to the Trust Fund made on the behalf of a Participant pursuant to a Salary Deferral
Agreement and which is not included in the Participant’s gross income for Federal income tax purposes for the year in which such contribution was made. 

  
 -1- 

	 	1.5	 “Beneficiary” means any person or persons (including a trust established for the benefit of such person or persons) designated by
a Participant or by the terms of the Plan as provided in Section 7.3(a), who is or who may become entitled to receive benefits from the Plan. Any person who is an Alternate Payee shall be considered a Beneficiary for purposes of the Plan.

  

	 	1.6	 “Benefit Commencement Date” means the first Valuation Date following the date on which all events have occurred which entitle the
Participant or Beneficiary to a distribution from the Plan in accordance with the provisions of Section 7. 

  

	 	1.7	 “Board” means the Board of Directors of TimkenSteel Corporation except that any action which may be taken by the Board may also be
taken by a duly authorized officer of TimkenSteel Corporation. 

  

	 	1.8	 “Code” means the Internal Revenue Code of 1986, as amended from time to time. Reference to a specific provision of the Code shall
include such provision, any valid regulation or ruling promulgated thereunder, and any provision of future law that amends, supplements, or supersedes such provision. 

 

	 	1.9	 “Company” means TimkenSteel Corporation and any Participating Subsidiaries. 

 

	 	1.10	 “Company Matching Contributions” means the matching contributions made by the Company on behalf of a Participant pursuant to
Section 4.1. 

  

	 	1.11	 “Company Stock” means a share or shares of the common stock of TimkenSteel Corporation, which is intended to be “employer
securities” within the meaning of Section 409(l) of the Code, and “qualifying employer securities” within the meaning of Section 407(d)(5) of ERISA. 

 

	 	1.12	 “Compensation” means the total amount of pay, commissions, bonuses (whether paid in cash or stock), and wages, including in each
case all overtime pay, shift differential, vacation pay (but excluding wages paid to an Employee for unused vacation), and holiday pay received by the Employee from the Company during the Plan Year, but excluding in each case all severance pay and
termination pay. 

  
 - 2 - 

	 	(a)	 Compensation also includes the following: 

  

	 	(i)	 In the event an Employee transfers from the employ of the Company to the employ of an Affiliated Company, commissions and bonuses paid by the
Company to such former Employee during the Plan Year in which such transfer occurs. 

  

	 	(ii)	 Contribution made on behalf of an Employee by the Company pursuant to a Salary Deferral Agreement and/or a salary reduction agreement pursuant to a
cafeteria plan established under Section 125 of the Code. 

  

	 	(b)	 Compensation does not include other employee benefits, including but not limited to: 

 

	 	(i)	 profit sharing arrangements; 

  

	 	(ii)	 rights under any stock purchase plans, insurance program, or any benefits to any of the Employees thereunder; 

 

	 	(iii)	 any part of payments which may be made by the Company as a result of its share of employment taxes; 

 

	 	(iv)	 the value or estimated value of any welfare, pension or retirement rights or benefits whatsoever. 

In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the
contrary, the annual compensation of each Employee taken into account under the Plan shall not exceed $260,000 or such annual compensation limit specified under Section 401(a)(17) of the Code including adjustments made by the Commissioner of
Internal Revenue for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. 
  

	 	1.13	 “Compensation Deferral Limit” means, for any Plan Year, the maximum percentage (determined in accordance with the provisions of
Section 4.6) of an Employee’s Compensation which may be contributed to the Plan pursuant to a Salary Deferral Agreement. The Plan Administrator shall establish the Compensation Deferral Limit for each Plan Year for the purpose of meeting
the nondiscrimination tests of Section 401(k) of the Code, and shall apply the limit to such Employees as is necessary to ensure compliance with such tests. 

 

	 	1.14	 “Deferral Percentage” means, for each Participant, the ratio of any Before-Tax
Contributions made on behalf of a Participant for a Plan Year, to such Participant’s Compensation (within the meaning of Section 415(c)(3) of the Code) while an Eligible Employee during such Plan Year. If more than one plan providing a
cash or deferred arrangement (within the meaning of Section 401(k) of the Code) is maintained by the 

  
 - 3 - 

	 	 
Company or an Affiliated Company, the Deferral Percentage of any Highly Compensated Employee who participates in more than one such plan or arrangement shall be determined as if all such plans or
arrangements were a single plan or arrangement. Notwithstanding the foregoing, plans or arrangements shall be treated as separate if they are mandatorily disaggregated under Section 401(k) of the Code. 

 

	 	1.15	 “Determination Year” means the Plan Year that is being tested for purposes of determining if the Plan meets the applicable
nondiscrimination requirements of Code Sections 401(k) and 401(m). 

  

	 	1.16	 “Disability” as applied to any Employee means any permanent disability as that term is defined in an any permanent disability
benefit plan or plans maintained by the Company or an Affiliated Company and in which the Employee participates, or in the absence of any such plan in which the Employee participates, Disability means that the Employee: 

 

	 	(i)	 Has been totally incapacitated by bodily injury or disease so as to be prevented thereby from engaging in any occupation or employment for
remuneration or profit, 

  

	 	(ii)	 Such total incapacity shall have continued for a period of six (6) consecutive months, and 

 

	 	(iii)	 Such total incapacity will, in the opinion of a qualified physician, be permanent and continue during the remainder of such Employee’s life.

 Disability shall not mean, however, any incapacity which was contracted, suffered or incurred while the
Employee was engaged in, or resulted from his having engaged in, a criminal enterprise, or which resulted from his habitual drunkenness or addiction to narcotics, a self-inflicted injury, or service in the armed forces of any country. 

 

	 	1.17	 “Effective Date” means June 30, 2014. 

 

	 	1.18	 “Eligibility Computation Period” means a period of twelve consecutive months which is used for purposes of eligibility to
participate in the Plan. An Employee’s initial Eligibility Computation Period will begin on his or her Employment Commencement Date. The second Eligibility Computation Period will begin on the first day of the Plan which begins prior to the
first anniversary of the Employee’s Employment Commencement Date (regardless of whether the Employee is credited with a specific number of Hours of Service during the initial Eligibility Computation Period) and each subsequent Eligibility
Computation Period will consist of each subsequent Plan Year. 

  
 - 4 - 

	 	1.19	 “Eligible Employee” means any person who is employed by the Company and is a member of Workers United Local 10. In no event shall
any “Leased Employee” be eligible to participate in the Plan. 

  

	 	1.20	 “Employee” means any employee currently employed by the Company or an Affiliated Company. The term “Employee” includes
any Leased Employee. 

  

	 	1.21	 “Employment Commencement Date” means the first day that an Employee is credited with an Hour of Service for the Company.

  

	 	1.22	 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. Reference to a specific provision
of ERISA shall include such provision, any valid regulation or ruling promulgated thereunder, and any provision of future law that amends, supplements, or supersedes such provision. 

 

	 	1.23	 “ESOP” means the portion of the Plan that is described in Section 12 and is intended to be a stock bonus plan, as defined in
Treasury Regulation Section 1.401-1(b)(1)(iii), and an employee stock ownership plan satisfying the requirements of Section 4975(e)(7) of the Code. 

 

	 	1.24	 “ESOP Account” means the portion of the Participant’s Total Account that is included in the ESOP, which has been established
pursuant to Section 12, and is comprised of all ESOP Subaccounts. The ESOP Account of each Participant shall represent the portion of the Participant’s Total Account invested in Company Stock and cash, if any, allocated to the Participant
under the ESOP in accordance with Section 12, as adjusted in accordance with the Plan. 

  

	 	1.25	 “ESOP Subaccount” means the portion of the Before-Tax Contribution Account, Matching Contribution Account, Rollover Contribution
Account, Latrobe Rollover Contribution Account, and Latrobe Wage Reduction Contribution Account that is included in the ESOP. 

  

	 	1.26	 “Forfeiture” means Company Matching Contributions that are forfeited as provided in this Plan. 

  
 - 5 - 

	 	1.27	 “Highly Compensated Employee” means an Employee who performs service for the Company during the Determination Year and who:

  

	 	(i)	 was a five percent (5%) owner as defined in Section 416(i)(1)(B)(i) of the Code, at any time during the Determination Year or the
Look-Back Year. 

  

	 	(ii)	 received compensation from the Company in excess of $90,000 (as adjusted pursuant to Code Section 415(d)) during the Look-back Year.

 For purposes of determining an Employee’s compensation under this Section 1.27, compensation
shall mean the Employee’s total compensation reportable on Form W-2, plus all contributions made on behalf of the Employee by the Company or an Affiliated Company pursuant to a Salary Deferral Agreement under this Plan (or a similar agreement
under any other cash or deferred arrangement described in Section 401(k) of the Code) or any salary reduction agreement pursuant to a cafeteria plan established under Section 125 of the Code or pursuant to Section 132(f)(4) of the
Code. 
  

	 	1.28	 “Hour of Service” means: 

  

	 	(a)	 each hour for which an Employee is paid or entitled to payment for the performance of duties for the Company or an Affiliated Company during the
Plan Year; 

  

	 	(b)	 each hour for which an Employee is paid or entitled to payment by the Company or an Affiliated Company on account of a period of time during which
no duties were performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or Leave of Absence, except that no more than 501
Hours of Service will be credited under this subsection (b) for any single continuous period; and 

  

	 	(c)	 each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Company or an Affiliated Company, except
that the same Hours of Service will not be credited both under subsection (a) or (b), as the case may be, and under this subsection (c), and these Hours of Service will be credited to the Employee for the computation period or periods to which
the award or agreement pertains rather than the computation period in which the award, agreement, or payment is made. 

Hours of Service accrued under the Prior Plan shall be included in the computation of any Hours of Service under the Plan for
Transferred Employees. Hours of Service accrued under the TimkenSteel Corporation Latrobe Voluntary Investment Program shall be included in the computation of any Hours of Service under the Plan for Latrobe Transferred Participants. 

  
 - 6 - 

 The determination of Hours of Service shall be in accordance with the rules set
forth in the United States Department of Labor’s Rules and Regulations for Minimum Standards for Employee Pension Benefit Plans, Section 2530.200b-2(b) and (c), which are incorporated herein by this reference. Furthermore, Hours of Service
will be credited for any individual who is considered to be an Employee under Code § 414(n) for purposes of the Plan. 
  

	 	1.29	 “Investment Committee” means the committee described in Section 10.6. 

 

	 	1.30	 “Latrobe Rollover Contributions” means Rollover Contributions as defined in the TimkenSteel Corporation Latrobe Voluntary
Investment Program, transferred to this Plan on or after June 30, 2014. 

  

	 	1.31	 “Latrobe Transferred Participant” means a person who is a “Participant” in the TimkenSteel Corporation Latrobe Voluntary
Investment Program as of the close of business on June 30, 2014. 

  

	 	1.32	 “Latrobe Wage Reduction Contributions” means Wage Reduction Contributions as defined in the TimkenSteel Corporation Latrobe
Voluntary Investment Program, transferred to this Plan on or after June 30, 2014. 

  

	 	1.33	 “Leased Employee” means any person who renders personal services to the Company and who is described in Section 414(n)(2) of
the Code by reason of providing such services, other than a person described in Section 414(n)(5) of the Code. 

  

	 	1.34	 “Leave of Absence” means an absence granted in writing by the Company or an Affiliated Company in accordance with the
Company’s personnel policies or as required by law, uniformly applied to all Employees, including but not limited to absences for reasons of health, education, jury duty, or service in the armed forces of the United States.

  

	 	1.35	 “Limitation Year” means the calendar year. 

 

	 	1.36	 “Look-Back Year” means the period of twelve consecutive months immediately preceding the Determination Year. For purposes of
determining the Average Deferral Percentage of Nonhighly Compensated Employees, the Plan Administrator may elect, in accordance with applicable regulations, that the Look-Back Year shall be the Determination Year. 

 

	 	1.37	 “Non-ESOP Account” means the portion of a Participant’s Total Account that is not included in the ESOP and is comprised of
all Non-ESOP Subaccounts. The Non-ESOP Account of each Participant represents the portion of the Participant’s Total Account invested in investment options other than Company Stock, as adjusted in accordance with the Plan.

  
 - 7 - 

	 	1.38	 “Non-ESOP Subaccount” means the portion of the Before-Tax Contribution Account, Matching Contribution Account, Rollover
Contribution Account, Latrobe Rollover Contribution Account, and Latrobe Wage Reduction Contribution Account that is not include in the ESOP. 

  

	 	1.39	 “Nonhighly Compensated Employee” means an Employee who is not a Highly Compensated Employee. 

 

	 	1.40	 “Normal Retirement Date” means the date on which the Employee shall have attained the age of 65. 

 

	 	1.41	 “Participant” means (a) an Eligible Employee who has elected to participate in the Plan in accordance with the provisions of
Section 2 or (b) effective as of June 30, 2014, a Latrobe Transferred Participant. An Eligible Employee or a Latrobe Transferred Participant shall cease to be a Participant in the Plan in accordance with the provisions of Section 2.5.

  

	 	1.42	 “Participant Contribution” means a contribution made by or on behalf of the Participant pursuant to Section 3.

  

	 	1.43	 “Participating Subsidiary” means any Affiliated Company that has adopted this Plan with the approval of the Board.

  

	 	1.44	 “Period of Severance” means the period beginning on an Employee’s Separation Date and ending on the date such Employee is
again credited with an Hour of Service. 

 A one-year Period of Severance is any period of twelve
consecutive months beginning on a Separation Date and any anniversary thereof, provided that the former Employee has not performed an Hour of Service for the Company or an Affiliated Company at any time during such twelve-month period. 

 

	 	1.45	 “Plan” means the TimkenSteel Corporation Savings Plan for Certain Bargaining Employees, as set forth herein, and as may be amended
from time to time. 

  

	 	1.46	 “Plan Administrator” means TimkenSteel Corporation, unless it appoints a Plan Administrator, as set forth in Section 9.

  

	 	1.47	 “Plan Year” means the calendar year. The initial Plan Year shall commence on June 30, 2014 and shall terminate on
December 31, 2014. 

  
 - 8 - 

	 	1.48	 “Prior Plan” means The Timken Company Savings Plan for Certain Bargaining Associates. 

 

	 	1.49	 “Qualified Domestic Relations Order” means a domestic relations order which meets the requirements of Section 414(p) of the
Code, as determined by the Plan Administrator. 

  

	 	1.50	 “Retirement Date” means Normal Retirement Date, any actual date of retirement subsequent to the Normal Retirement Date, or any
early retirement date under the terms of any qualified retirement plan maintained by the Company by which the Participant is covered. 

  

	 	1.51	 “Rollover Contribution” means a transfer by a Participant to this Plan of all or a portion of a distribution to such Participant
from a qualified plan or individual retirement account, provided the distribution is: 

  

	 	(a)	 an eligible direct rollover distribution within the meaning of the first sentence of Section 7.10(a); 

 

	 	(b)	 rolled over to the Plan within 60 days following the date the Eligible Employee receives the distribution from the qualified plan or individual
retirement account; and 

  

	 	(c)	 not from a designated Roth account (as defined in section 402A of the Code) or from a Roth IRA (as defined in section 408A of the Code).

  

	 	1.52	 “Salary Deferral Agreement” means an agreement in the form provided by the Plan Administrator in which an Eligible Employee agrees
to reduce his Compensation earned after the execution of such agreement and to have the amount of such reduction contributed by the Company to the Trust Fund on his behalf pursuant to Section 401(k) of the Code. An Eligible Employee may execute
a new Salary Deferral Agreement from time to time pursuant to Section 3.2. 

  

	 	1.53	 “Separation Date” means the last day of the month in which occurs the earliest of: 

 

	 	(a)	 The date on which an Employee resigns, is discharged by his employer, retires at his Retirement Date, retires due to Disability, or dies. For this
purpose an Employee shall be deemed to have resigned if he 

  

	 	(i)	 is absent from work for seven (7) or more successive working days without reasonable cause, or 

 

	 	(ii)	 fails, without reasonable cause, to return to work after a Leave of Absence or temporary layoff within seven (7) days after notice to return
has been sent to his last address, as shown by the employer’s employment records; 

  
 - 9 - 

	 	(b)	 The first anniversary of the date on which an Employee begins a layoff from the Company or an Affiliated Company (or, in the case of a Transferred
Employee, from the “Company” or “Affiliated Company,” as defined under the Prior Plan as in effect during the applicable period); or 

  

	 	(c)	 The second anniversary of the date on which an Employee remains absent from service (with or without pay) with the Company or an Affiliated Company
(or, in the case of a Transferred Employee, with the “Company” or “Affiliated Company,” as defined under the Prior Plan as in effect during the applicable period) for any reason other than resignation, retirement, discharge, or
death, such as illness, maternity or paternity leave, or Leave of Absence. 

 Notwithstanding the
foregoing, in the event that the Employee fails to return to active employment upon the expiration of a Leave of Absence (or, in the case of a military leave, during the period in which his reemployment rights are protected by applicable law, or
during the period in which his reemployment rights are protected by the Plan Administrator, whichever is longer), the Employee’s Separation Date shall mean the date on which such absence from service began, unless such failure to return is the
result of retirement, Disability, or death. 
  

	 	1.54	 “Service” means the aggregate of the following: 

 

	 	(a)	 The period commencing with the first day of the month in which an Employee is credited with an Hour of Service, and ending on the Employee’s
Separation Date. 

  

	 	(b)	 If an Employee performs an Hour of Service within twelve months of a Separation Date on account of an event described in Section 1.53(a), the
period from such Separation Date to such Hour of Service. 

  

	 	(c)	 In the case of an Employee who leaves employment with the Company or an Affiliated Company (or, in the case of a Transferred Employee, with the
“Company” or an “Affiliated Company,” as defined under the Prior Plan as in effect during the applicable period) to enter service with the armed forces of the United States, the period of such military service, provided the
individual resumes employment with the Company or an Affiliated Company within the period during which his reemployment rights are protected by Section 414(u) of the Code, or within the period during which his reemployment rights are protected
by the Plan Administrator, whichever is longer. 

  
 - 10 - 

 Continuous Service accrued under the TimkenSteel Corporation Latrobe Voluntary
Investment Program shall be included in the computation of any Service under the Plan for Latrobe Transferred Participants. 
  

	 	1.55	 “Spinoff” means the event described as the “Spinoff” in the Preamble of the Plan. 

 

	 	1.56	 “Spouse” means the person, if any, to whom the Employee is lawfully married at the time of his death prior to retirement or at the
time his benefits are to commence, as the case may be, provided, however, that a former spouse will be treated as the Spouse to the extent provided under a Qualified Domestic Relations Order. 

 

	 	1.57	 “Timken” means The Timken Company. 

  

	 	1.58	 “Timken Stock” means a share or shares of the common stock of The Timken Company, which is not intended to be qualifying employer
securities within the meaning of Section 407(d)(5) of ERISA. 

  

	 	1.59	 “Total Account” means the total amounts held under the Plan for a Participant, consisting of the following subaccounts:

  

	 	(a)	 “Before-Tax Contribution Account” — The portion of the Participant’s Total Account consisting of
Before-Tax Contributions and Catch-Up Contributions made in accordance with Section 3.1 (and, for a Transferred Participant, any “Before-Tax Contributions” or “Catch-Up Contributions,” as such terms are defined under the
Prior Plan, made on behalf of the Participant) plus or minus any investment earnings or losses on such contributions, less any withdrawals or distributions from such Account. There shall be an ESOP Subaccount and a Non-ESOP Subaccount within the
Before-Tax Contribution Account. 

  

	 	(b)	 “Matching Contribution Account” — The portion of the Participant’s Total Account consisting of Company
Matching Contributions (and, for a Transferred Participant, any “Company Matching Contributions,” as defined under the Prior Plan, made on behalf of the Participant) plus or minus any investment earnings or losses on such contributions,
less any withdrawals or distributions from such Account. There shall be an ESOP Subaccount and a Non-ESOP Subaccount within the Matching Contribution Account. 

 

	 	(c)	 “Rollover Contribution Account” — The portion of the Participant’s Total Account consisting of any
Rollover Contribution made on behalf of the Participant in accordance with Section 3.5 (and, for a Transferred Participant, any “Rollover Contribution,” as defined under the Prior Plan, made on behalf of the Participant) plus or minus
any investment 

  
 - 11 - 

	 	 
earnings or losses on such amounts, less any withdrawals or distributions from such Account. There shall be an ESOP Subaccount and a Non-ESOP Subaccount within the Rollover Contribution Account.

  

	 	(d)	 “Latrobe Rollover Contribution Account” — The portion of the Participant’s Total Account that reflects the
Latrobe Rollover Contributions attributable to the Participant, plus or minus any investment earnings or losses on such amounts, less any withdrawals or distributions from such Account. There shall be an ESOP Subaccount and a Non-ESOP Subaccount
within the Latrobe Rollover Contribution Account. 

  

	 	(e)	 “Latrobe Wage Reduction Contribution Account” — The portion of the Participant’s Total Account that
reflects the Latrobe Wage Reduction Contributions attributable to the Participant, plus or minus any investment earnings or losses on such amounts, less any withdrawals or distributions from such Account. There shall be an ESOP Subaccount and a
Non-ESOP Subaccount within the Latrobe Wage Reduction Contribution Account. 

 Each Participant’s
Total Account, in the aggregate, shall be divided into an ESOP Account and a Non-ESOP Account. 
  

	 	1.60	 “Transferred Employees” means the individuals described as “Transferred Employees” in the Preamble of the Plan.

  

	 	1.61	 “Transferred Participants” means the individuals described as “Transferred Participants” in the Preamble of the Plan.

  

	 	1.62	 “Trustee” means the Trustee or Trustees appointed by the Company in accordance with Section 10. 

 

	 	1.63	 “Trust Fund” means the fund established under the terms of the Trust Agreement for the purpose of holding and investing the assets
of the Plan held by the Trustee. 

  

	 	1.64	 “Valuation Date” means each day on which the New York Stock Exchange is open for trading or such other date or dates as the Plan
Administrator deems appropriate. 

  

	 	1.65	 “Vested” means a Participant’s non-forfeitable right to his Total Account. 

 

	 	1.66	 “Year of Service” means an Eligibility Computation Period during which an Employee is credited with at least 1,000 Hours of
Service. If any Eligibility Computation Period is less than 12 consecutive months, the Hours of Service requirement set forth herein will be proportionately reduced (if it is greater than one) in determining whether an Employee is credited with a
Year of Service during such short Eligibility Computation Period. 

  
 - 12 - 

 For the 2013 Plan Year, the computation of a Year of Service for any Participant
in the Plan immediately prior to June 30, 2014 will be made in accordance with Treasury Regulations sections 1.410(a)-7(f) and 1.410(a)-7(g). 

Continuous Service accrued under the TimkenSteel Corporation Latrobe Voluntary Investment Program shall be included in the
computation of any Years of Service under the Plan for Latrobe Transferred Participants. 

  
 - 13 - 

 SECTION 2 

PARTICIPATION 
  

	 	2.1	 PARTICIPATION REQUIREMENTS 

  

	 	(a)	 Any Transferred Participant and any Latrobe Transferred Participant shall immediately participate in the Plan as of the Effective Date.

  

	 	(b)	 Any Eligible Employee who is an Eligible Employee on or after the Effective Date may participate in the Plan as of the first day of the month after
being employed full-time for at least one full calendar month during which the Eligible Employee shall have worked the available business days. Notwithstanding the foregoing, an Eligible Employee who is not classified as full time shall become
eligible to participate in the Plan on the first day of the month after he completes one Year of Service. Notwithstanding any provision in the Plan to the contrary, service with TSB Metal Recycling LLC or its predecessor prior to January 1,
2014 shall be treated in the same manner as service performed on or after the Effective Date for purposes of the participation requirements described in this subsection (b). Also notwithstanding any provision in the Plan to the contrary, service for
Transferred Employees under the Prior Plan and service for Latrobe Transferred Participants under the TimkenSteel Corporation Latrobe Voluntary Investment Program shall be treated as service under the Plan, provided that nothing in this sentence
shall result in the double counting of any period of service for an Employee. 

  

	 	2.2	 APPLICATION TO PARTICIPATE 

An Eligible Employee, or an Employee who will become an Eligible Employee within two months, may enroll to become a
Participant by filing his elections in the form prescribed by the Plan Administrator at least one pay period prior to the date on which he elects to commence participation. All Transferred Participants and Latrobe Transferred Participants shall
automatically become Participants as of the Effective Date. 
  

	 	2.3	 EFFECTIVE DATE OF ELECTIONS 

In order to make contributions or have contributions made on his behalf, an Eligible Employee who becomes a Participant must
make elections as provided under the Plan. The elections shall become effective with respect to the first payroll period commencing on or after the Employee’s date of commencement of participation. For Transferred Participants and Latrobe
Transferred Participants, all such elections made under the Prior Plan or the TimkenSteel Corporation Latrobe Voluntary Investment Program, as the case may be, shall apply to the Plan as of the Effective Date. 

  
 - 14 - 

	 	2.4	 PARTICIPATION UPON REEMPLOYMENT 

An Eligible Employee who reaches a Separation Date prior to becoming a Participant and who is subsequently reemployed shall
have all periods of Service prior to such Separation Date counted in the determination of eligibility regardless of the period of time that may have elapsed between his Separation Date and his subsequent date of reemployment and may participate in
the Plan on the later of: 
  

	 	(a)	 his completion of, in the aggregate, the period of Service applicable to such Eligible Employee pursuant to Section 2.1; or

  

	 	(b)	 the first available payroll period following his date of reemployment; 

or on any subsequent payroll period determined above, provided he is then an Eligible Employee. 

A Participant who: (i) separates from service from the Company (or, in the case of Transferred Employees who terminated
employment prior to the Spinoff, the “Company,” as defined under the Prior Plan on the applicable date); (ii) incurs a Period of Severance; and (iii) is reemployed by the Company as an Eligible Employee, shall immediately resume
participation in the Plan as of the date of his reemployment. 
  

	 	2.5	 TERMINATION OF PARTICIPATION 

A Participant’s participation in the Plan shall continue until the later of: 

 

	 	(a)	 the Participant’s Separation Date; or 

  

	 	(b)	 such time as all nonforfeitable amounts credited to the Participant’s Total Account shall have been distributed in full in accordance with the
terms of the Plan. 

  

	 	2.6	 VETERAN’S RIGHTS 

Notwithstanding any provision of the Plan to the contrary, contributions, benefits and Service credit with respect to
qualified military service shall be provided in accordance with Section 414(u) of the Code. Effective January 1, 2007, notwithstanding any provision of this Plan to the contrary, if a Participant dies during his or her period of service
with the armed forces, the survivors of the Participant will be entitled to any benefits provided under the Plan that such survivors would have been entitled to receive if the Participant had become reemployed by the Company on the day immediately
prior to his or her date of death (entitling such Participant to additional benefit accruals and vesting service relating to periods of qualified military leave under Section 414(u) of the Code) and then terminated employment on his actual date
of death. 

  
 - 15 - 

 SECTION 3 

PARTICIPANT CONTRIBUTIONS 
  

	 	3.1	 PARTICIPANT CONTRIBUTIONS 

Each Eligible Employee may, upon becoming a Participant, elect to have a Before-Tax Contribution made on his behalf at a rate
of between one percent and seventy-five percent of his Compensation. The rate of contribution will be in increments of 1%. Such election shall be in the form of a Salary Deferral Agreement, and shall be subject to the Compensation Deferral Limit, if
any, applicable to such Participant as established by the Plan Administrator from time to time for purposes of meeting the nondiscrimination tests of Section 401(k) of the Code, and, if applicable, satisfying the maximum limits described in
Section 3.6 and Sections 4.6 through 4.12. As provided in Section 2, any elections made under the Prior Plan shall apply to the Plan as of the Effective Date. 

Notwithstanding the foregoing, any Participant who has elected to have Before-Tax Contributions made on his behalf to this
Plan and who has attained age 50 before the end of a particular calendar year shall be permitted to make catch-up contributions for such calendar year (the “Catch-Up Contributions”) in accordance with, and subject to the limitations of,
Section 414(v) of the Code; provided, however, that a Participant will be permitted to make Catch-Up Contributions for a pay period only to the extent that the Participant’s Catch-Up Contributions for such pay period, when added to the
Participant’s other Before-Tax Contributions for such pay period, are equal to or less than 100% of the Participant’s Compensation for such pay period. Catch-Up Contributions shall not be taken into account for purposes of the provisions
of the Plan implementing the required limitations of Sections 401(a)(30) and 415(c) of the Code (i.e., Sections 3.6 and 4.12, respectively). In addition, notwithstanding any provision of the Plan to the contrary, the Plan shall not be treated
as failing to satisfy the requirements of Sections 401(k)(3), 401(k)(11), 410(b), or 416 of the Code, as applicable, by reason of the making of any such Catch-Up Contributions. In furtherance of, but without limiting the foregoing,
(a) contributions made during a Participant’s taxable year on behalf of the Participant under a Salary Deferral Agreement (including Catch-Up Contributions) that exceed the statutory limit described in Section 3.6(a) or
Section 4.12 shall be treated as Catch-Up Contributions, and (b) Catch-Up Contributions shall be permitted to be made on a payroll-by-payroll basis; provided, however, that a contribution made under a Salary Deferral Agreement may only be
characterized as a Catch-Up Contribution on a Plan Year basis. 

  
 - 16 - 

	 	3.2	 INCREASE OR DECREASE IN RATE OF CONTRIBUTIONS 

A Participant may elect to change the rate of contributions under his Salary Deferral Agreement as of any payroll period,
provided he files with the Plan Administrator in the form prescribed by the Plan Administrator a new Salary Deferral Agreement within the time frame prescribed by the Plan Administrator. 

 

	 	3.3	 SUSPENSION AND RESUMPTION OF CONTRIBUTIONS 

 

	 	(a)	 A Participant may elect to suspend contributions, effective the next available payroll period, provided that the Participant files with the Plan
Administrator, in the form prescribed by the Plan Administrator, his election to suspend within the time frame prescribed by the Plan Administrator. In the event of an election to suspend contributions, the Participant may have contributions resumed
effective any subsequent payroll period, provided that he files a new Salary Deferral Agreement with the Plan Administrator within the time frame prescribed by the Plan Administrator. 

 

	 	(b)	 A Participant may not make up suspended contributions. 

  

	 	(c)	 During a period of suspension, gains and losses on the Participant’s Total Account will continue to be credited or debited on the balance of
his Total Account. 

 If a Participant ceases to be an Eligible Employee but continues in the employ of
the Company, Before-Tax Contributions made on his behalf shall be immediately suspended. No contributions shall be made for a Participant with respect to the period of such suspension. If the Participant again becomes an Eligible Employee, he may
resume his Before-Tax Contributions by filing the appropriate form with the Plan Administrator. Resumption of contributions shall commence as of the next available payroll period following the date the appropriate form is properly filed with the
Plan Administrator, or as soon as practical thereafter. 
  

	 	3.4	 EFFECTIVE DATE OF ELECTIONS 

The elections referred to in this Section 3 shall become effective with respect to the first available payroll period, in
accordance with the administrative procedures established by the Plan Administrator. 
  

	 	3.5	 ROLLOVER CONTRIBUTIONS 

  

	 	(a)	 The Plan Administrator in accordance with a uniform and nondiscriminatory policy, shall determine whether or not a Rollover Contribution shall be
accepted. Any such request shall state the amount of the Rollover Contribution and include a statement that such 

  
 - 17 - 

	 	 
contribution qualifies as a Rollover Contribution as defined in Section 1.51. The Plan Administrator may require the Employee to submit such other evidence and documentation as the Plan
Administrator determines necessary to ensure that the contribution qualifies as a Rollover Contribution. All Rollover Contributions must be made in cash. 

If a rollover is later deemed to be invalid, such invalid amount plus allowable income shall be distributed to the Participant within a
reasonable time after such determination pursuant to the Code and related regulations. 
  

	 	(b)	 The Employee shall at all times have a nonforfeitable right in 100% of his Rollover Contribution Account. 

 

	 	(c)	 An Employee who makes a Rollover Contribution to the Trust Fund shall be deemed to be a Participant with respect to such amount for all purposes of
the Plan, except for purposes of Sections 2.1 through 2.5, Sections 3.1 through 3.4 and Sections 4.1 through 4.12. 

  

	 	(d)	 At the time the Rollover Contribution is made to the Trust Fund, the Employee must elect to have it invested in accordance with the terms of
Section 5.2. 

  

	 	(e)	 For administration and account purposes, the amounts paid to the Trust Fund in the form of Rollover Contributions and any interest earned on such
amounts shall be credited to the Participant’s Rollover Contribution Account, or to such other account or accounts as may be appropriate under the circumstances. In no event, however, shall any Rollover Contribution be subject to Company
Matching Contributions. 

  

	 	(f)	 Unless specifically indicated to the contrary elsewhere in this Plan, the Plan shall prohibit the transfer of assets to the Plan from any other
plan. 

  

	 	3.6	 MAXIMUM AMOUNT OF SALARY DEFERRAL 

  

	 	(a)	 Subject to the provisions of paragraph (b) below, contributions made during a Participant’s taxable year (which is presumed to be the
calendar year) on behalf of the Participant under a Salary Deferral Agreement shall be limited to $17,500 (or such other limit as may be in effect at the beginning of such taxable year under Section 402(g)(1) of the Code), reduced by the amount
of “elective deferrals” (as defined in Section 402(g)(3) of the Code) made during the taxable year of the Participant under any plans or agreements maintained by the Company or an Affiliated Company other than this Plan

  
 - 18 - 

	 	 
(and, in the sole discretion of the Plan Administrator, any plans or agreements maintained by any other employer, if reported to the Plan Administrator at such time and in such manner as the Plan
Administrator shall prescribe). 

  

	 	(b)	 If contributions made on a Participant’s behalf for the preceding taxable year of the Participant under a Salary Deferral Agreement, and any
other elective deferrals (within the meaning of Section 402(g)(3) of the Code), made on the Participant’s behalf under any other qualified cash or deferred arrangement of the Company for such taxable year exceed $17,500 (or such other
amount as adjusted in accordance with paragraph (a) above), then the Participant shall notify the Plan Administrator in writing by the first March 1 following the close of such taxable year of the amount of such excess. Such notification
shall include a statement that if such amounts are not distributed, the excess deferral amount, when added to amounts deferred under other plans or arrangements described in Section 401(k), 408(k), or 403(b) of the Code, will exceed the limit
imposed on the Participant by Section 402(g) of the Code for the taxable year of the Participant in which the deferral occurred. 

  

	 	(c)	 If the elective deferral limit is exceeded for a Participant for a taxable year, the excess amount, adjusted for the net earnings or losses thereon
through the last day of the Plan Year in which the excess deferral arose, shall be refunded to the Participant in a single payment no later than April 15 of the taxable year following the taxable year in which such excess deferral arose. If the
Participant’s Before-Tax Contribution Account is invested in more than one investment fund, such refund shall be made pro rata, to the extent practicable, from all such investment funds. The amount refunded shall not exceed the
Participant’s Before-Tax Contributions under the Plan for the taxable year. The payment shall be deemed to have been made before the close of the taxable year in which such excess deferral arose. If the Participant fails to notify the Plan
Administrator by the specified March 1, no refund will be made. 

  

	 	(d)	 Notwithstanding the provisions of paragraph (b) above, a Participant’s excess Before-Tax Contributions shall be reduced, but not below
zero, by any distribution of excess contributions made pursuant to Section 4.6 for a Plan Year, provided such excess contributions are distributed on or before March 15 of the Plan Year following the Plan Year in which such excess
contributions arose. 

  
 - 19 - 

 SECTION 4 

COMPANY MATCHING CONTRIBUTIONS 
  

	 	4.1	 COMPANY MATCHING CONTRIBUTIONS 

The first three percent of Compensation deferred hereunder shall be eligible for Company Matching Contributions. Subject to
Section 11.5, each pay period the Company shall contribute to the Matching Contribution Account of each Participant who is employed by the Company, an amount equal to such Participant’s Before-Tax Contributions up to the first three
percent of such Participant’s Compensation; provided, however, that the maximum contribution rate shall be subject to the maximum limits described in the Plan. Such contributions shall be known as Company Matching Contributions. No Company
Matching Contributions shall be made with respect to the Before-Tax Contributions in excess of three percent of Compensation made on behalf of any Participant. 

Unless the collective bargaining agreement covering a Participant’s bargaining unit states otherwise, when the term of
such collective bargaining agreement expires, unless it is extended, the Company shall not be required to make any Company Matching Contributions with respect to such Participant after such date, and such Participant shall become an inactive
Participant for purposes of Company Matching Contributions under the Plan as of such date. 
  

	 	4.2	 FORM OF COMPANY MATCHING CONTRIBUTION 

Company Matching Contributions shall be contributed to the Trust Fund in cash no later than the time prescribed by law
(including extensions thereof) for filing the Company’s Federal income tax return for the taxable year of the Company which includes the last day of the Plan Year for which such contributions are made. 

 

	 	4.3	 COMPANY MATCHING CONTRIBUTIONS REDUCED BY FORFEITURES 

Company Matching Contributions shall be reduced by Forfeitures in accordance with the provisions of Section 4.5. 

 

	 	4.4	 ESTABLISHMENT OF PARTICIPANT ACCOUNTS 

  

	 	(a)	 The Company shall establish and maintain for each Participant a Total Account consisting of the following three accounts, as described in
Section 1.59, and any such other accounts as may be deemed necessary by the Plan Administrator: 

  

	 	(i)	 Before-Tax Contribution Account; 

  

	 	(ii)	 Matching Contribution Account; 

  

	 	(iii)	 Rollover Contribution Account; 

  
 - 20 - 

	 	(iv)	 Latrobe Rollover Contribution Account; and 

  

	 	(v)	 Latrobe Wage Reduction Contribution Account. 

  

	 	(b)	 Within each account described in paragraph (a) above, separate records shall be kept of the portion, if any, of each account invested in the
funds listed in Section 5.1. 

  

	 	4.5	 FORFEITURES 

Forfeitures shall be applied, no later than the end of the Plan Year immediately following the Plan Year in which the
Forfeitures occur, in the following order: 
  

	 	(a)	 to pay Plan fees and expenses; 

  

	 	(b)	 to the extent of any remainder to make restorations pursuant to the last sentence of Section 9.7(b); 

 

	 	(c)	 to the extent of any remainder, to reduce future Company Matching Contributions including any other contributions approved by the Plan
Administrator; and 

  

	 	(d)	 to the extent of any remainder, to provide a Company Matching Contribution to be allocated to Participants no later than the Plan Year immediately
following the Plan Year in which the Forfeitures occurred. 

  

	 	4.6	 NONDISCRIMINATION REQUIREMENTS 

  

	 	(a)	 Actual Deferral Percentage Tests 

  

	 	(i)	 The average Deferral Percentage for the Highly Compensated Employee group shall not exceed the greater of: 

 

	 	(A)	 125 percent (125%) of such percentage for the Nonhighly Compensated Employee group (for the preceding Plan Year if the prior-year testing
method is used); or 

  

	 	(B)	 The lesser of 200 percent (200%) of such percentage for the Nonhighly Compensated Employee group (for the preceding Plan Year if the
prior-year testing method is used), or such percentage for the Nonhighly Compensated Employee group (for the preceding Plan Year if the prior-year testing method is used) plus two (2) percentage points. 

The Plan Administrator may exclude Nonhighly Compensated Employees who have not attained age 21 and do not have at least one Year of Service
from the calculation of the average Deferral Percentage 

  
 - 21 - 

 
for Nonhighly Compensated Employees. This special testing rule may only be used in any Plan Year in which the Plan separately satisfies Section 410(b)(1) of the Code with respect to the
group of Participants who have not attained age 21 or do not have at least one Year of Service. 
  

	 	(ii)	 The Deferral Percentage for each Participant and the average Deferral Percentage for each group shall be calculated to the nearest one-hundredth of one percent. 

  

	 	(iii)	 A Highly Compensated Employee and a Nonhighly Compensated Employee shall include any Employee eligible to make a deferral election pursuant to
Section 3.1, whether or not such deferral election was made or suspended pursuant to Section 3.3. 

Notwithstanding the above, if the prior-year testing method is used to calculate the average Deferral Percentage for the Nonhighly
Compensated Employee group for the first Plan Year of this amendment and restatement, a Nonhighly Compensated Employee shall include any such Employee eligible to make a deferral election, whether or not such deferral election was made or suspended,
pursuant to the provisions of the Plan in effect for the preceding Plan Year. 
 Notwithstanding the above, if two or more plans which
include cash or deferred arrangements are permissively aggregated under Regulation 1.410(b)-7(d), all plans permissively aggregated must use either the current-year testing method or the prior-year testing method for the testing year. 

 

	 	(iv)	 For the purposes of this Section, if a Highly Compensated Employee is a Participant under two or more cash or deferred arrangements of the Company
or an Affiliated Company, all such cash or deferred arrangements shall be treated as one cash or deferred arrangement for the purposes of determining the actual deferral ratio with respect to such participating Highly Compensated Employee. However,
if the cash or deferred arrangements have different plan years, all Before-Tax Contributions made during the Plan Year under all such arrangements shall be aggregated. Notwithstanding the foregoing, cash or deferred arrangements that are not
permitted to be aggregated under Treasury Regulations issued under Section 401(k) of the Code shall be treated as separate arrangements. 

  
 - 22 - 

	 	(v)	 For the purpose of this Section, when calculating the average Deferral Percentage for the Nonhighly Compensated Employee group, the current-year
testing method shall be used. Any change in the testing method shall be made pursuant to Internal Revenue Service Notice 98-1 (or superseding guidance). 

 

	 	(vi)	 The Plan Administrator may amend or revoke the Before-Tax Contributions election of any Participant at any time, if the Plan Administrator
determines that such revocation or amendment is necessary to ensure that the discrimination test described in this Section 4.6(a) is satisfied. 

  

	 	(b)	 Actual Contribution Percentage Tests 

  

	 	(i)	 The Plan Administrator may amend or revoke the Before-Tax Contributions election of any Participant at any time, if the Plan Administrator
determines that such revocation or amendment is necessary to ensure that the discrimination tests of Section 401(m) of the Code are met for such Plan Year. The discrimination tests shall be that the Actual Contribution Percentage for Highly
Compensated Employees for such Plan Year bears a relationship to the Actual Contribution Percentage for all other Eligible Employees for the preceding Plan Year which meets either of the following tests: 

 

	 	(A)	 the Actual Contribution Percentage for the group of Highly Compensated Employees is not more than the Actual Contribution Percentage of all other
Eligible Employees multiplied by 1.25, or 

  

	 	(B)	 the excess of the Actual Contribution Percentage for the group of Highly Compensated Employees over that of all other Eligible Employees is not
more than two percentage points, and the Actual Contribution Percentage for the group of Highly Compensated Employees is not more than the Actual Contribution Percentage of all other Eligible Employees multiplied by two. 

 

	 	(ii)	 The provisions of this Section 4.6(b) are effective for Plan Years beginning on or after January 1, 2013. 

 

	 	4.7	 ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE 

  

	 	(a)	 In the event that Excess Contributions (as such term is hereinafter defined) are made to the Trust Fund for any Plan Year, then, prior to
March 15 of the following Plan Year, such 

  
 - 23 - 

	 	 
Excess Contributions (plus any income and minus any loss allocable thereto through the last day of the Plan Year in which such Excess Contributions were made) shall be distributed to the Highly
Compensated Employees on the basis of the respective portions of the Excess Contributions attributable to each such Highly Compensated Employee in order of the dollar amount of Before-Tax Contributions made by or on behalf of such Highly Compensated
Employees beginning with the Highly Compensated Employee with the highest dollar amount of Before-Tax Contributions. For the purposes of this Section, the term “Excess Contributions” shall mean, for any Plan Year, the excess of
(a) the aggregate amount of Before-Tax Contributions actually paid to the Trust on behalf of Highly Compensated Employees for such Plan Year over (b) the maximum amount of Before-Tax Contributions permitted for such Plan Year under
Section 4.6(a), determined by hypothetically reducing Before-Tax Contributions made on behalf of Highly Compensated Employees in order of their actual deferral percentage (as defined in Section 4.6(a)) beginning with the highest of such
percentages. 

  

	 	(i)	 With respect to the distribution of Excess Contributions pursuant to this Section 4.7(a), such distribution: 

 

	 	(A)	 May be postponed but not later than the close of the Plan Year following the Plan Year to which they are allocable; 

 

	 	(B)	 Shall be made first from unmatched Before-Tax Contributions and, thereafter, proportionately from Before-Tax Contributions which are matched and
Company Matching Contributions which relate to such deferred compensation, if used in the average Deferral Percentage tests pursuant to Section 4.6(a); and 

 

	 	(C)	 Shall be designated by the Company as a distribution of Excess Contributions (and income). 

 

	 	(ii)	 Any distribution of less than the entire amount of Excess Contributions shall be treated as a pro rata distribution of Excess Contributions and
income. 

  

	 	(iii)	 Company Matching Contributions that relate to Excess Contributions shall be forfeited. 

 

	 	(b)	 Within twelve (12) months after the end of the Plan Year, the Company may make a special Qualified Nonelective Contribution on behalf of
Nonhighly Compensated Employees provided such contribution satisfies the requirements of Treasury Regulation 1.401(k)-2(a)(6). 

  
 - 24 - 

	 	4.8	 ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE 

 

	 	(a)	 In the event that the Plan should fail to meet the test set forth in Section 4.6(b)(i), the amount of “excess aggregate
contributions” for a Highly Compensated Employee for a Plan Year is to be determined by the following leveling methods: 

  

	 	(i)	 the total dollar amount of excess aggregate contributions is determined by reducing contributions on behalf of Highly Compensated Employees in the
order of their contribution percentages, beginning with the highest of such percentages and continuing until the actual contribution percentage test is satisfied; 

 

	 	(ii)	 the amount determined in (i) above is reallocated beginning with the Highly Compensated Employee with the highest dollar amount of
contributions taken into account in performing the actual contribution percentage test to equal the dollar amount of the Highly Compensated Employee with the next highest dollar amount of such contributions and continuing in succeeding order of the
Highly Compensated Employees until all excess aggregate contributions are accounted for as determined in (i) above; 

  

	 	(iii)	 each Highly Compensated Employee will receive a distribution of his portion of excess aggregate contributions determined in step (ii) above.

  

	 	(b)	 The amount of excess aggregate contributions with respect to an Employee for a Plan Year shall be determined only after first determining the
excess contributions that are treated as Employee contributions for the Plan Year due to recharacterization. For each Highly Compensated Employee, the amount of excess aggregate contributions is equal to the total Company Matching Contributions,
plus Before-Tax Contributions (excluding any Catch-Up Contributions) treated as matching contributions, on behalf of the Participant. 

  

	 	(c)	 Excess aggregate contributions (and income allocable thereto through the last day of the Plan Year in which such excess contributions were made)
are distributed in accordance with this Section 4.8, only if such excess aggregate contributions (and allocable income) are designated by the Plan Administrator as a distribution of excess aggregate contributions (and income) and are
distributed to appropriate Highly Compensated Employees after the close of the Plan Year in which the excess aggregate contributions occurred and within twelve months after the close of the following Plan Year. 

 

	 	(d)	 The provisions of this Section 4.8 are effective for Plan Years beginning on or after January 1, 2013. 

  
 - 25 - 

	 	4.9	 TESTING PROCEDURES 

In applying the limitations set forth in Section 4.6, the Company may, at its option, utilize such testing procedures as
may be permitted under Sections 401(a)(4), 401(k), 401(m) or 410(b) of the Code, subject to any applicable limitations contained in the regulations, including, without limitation, (1) aggregation of the Plan with one or more other qualified
plans of the Controlled Group, (2) inclusion of qualified matching contributions, qualified non-elective contributions or elective deferrals described in, and meeting the requirements of, Treasury Regulations under Section 401(k) or 401(m)
of the Code made to any other qualified plan of the Controlled Group, (3) exclusion of all Eligible Employees (other than Highly Compensated Employees) who have not met the minimum age and service requirements of section 410(a)(1)(A) of the
Code, or (4) any permissible combination thereof. 
  

	 	4.10	 AGGREGATION OF PLANS 

In the event this Plan is aggregated with any other plan maintained by the Company or an Affiliated Company and treated as a
single plan for purposes of Sections 401(a)(4) and 410(b) of the Code, all Before-Tax Contributions, and Company Matching Contributions made under such plans shall be treated as made under a single plan, and if two or more of such plans are
permissively aggregated for purposes of Sections 401(k) and 401(m) of the Code, such plans shall be treated as a single plan for purposes of satisfying Section 401(a)(4) and 410(b) of the Code. 

 

	 	4.11	 DISAGGREGATION OF PLAN 

Notwithstanding anything contained in the Plan to the contrary, in the event the mandatory disaggregation rules under
applicable Treasury Regulations require that this Plan be treated as two (2) or more separate plans, the provisions of the Plan shall be applied separately with respect to each deemed separate plan, as required by law. 

In the case of a deemed separate plan that covers Eligible Employees employed within a classification with respect to which
retirement benefits have been the subject of collective bargaining, the provisions of Sections 4.6, 4.7, and 4.8 shall apply to such deemed separate plan and the provisions of Sections 4.6, 4.7, and 4.8 shall be deemed satisfied by such
deemed separate plan. 

  
 - 26 - 

	 	4.12	 CODE SECTION 415 LIMITS 

The annual additions made on behalf of a Participant hereunder shall be limited to the extent required by Section 415 of
the Code and rulings, notices and regulations issued thereunder. To the extent applicable, Section 415 of the Code and rulings, notices and regulations issued thereunder are hereby incorporated by reference into this Plan. 

  
 - 27 - 

 SECTION 5 

INVESTMENT PROVISIONS 
  

	 	5.1	 DESCRIPTION OF FUNDS 

The assets of the Plan shall be invested by the Trustee in accordance with the instructions of the Participants pursuant to
Section 5.2 of the Plan and in accordance with the further provisions of this Section 5.1, and the Trust Agreement, in one or more of the following investment options: 

 

	 	(a)	 Money Market Fund — A fund consisting of securities and obligations which produce a fixed rate of
investment return, including, but not limited to, United States government securities, corporate bonds, notes, debentures, convertible securities, preferred stocks, or an investment fund or funds maintained by the Trustee or other banks or other
financial institutions, or any contracts issued by insurance companies or other financial institutions. 

  

	 	(b)	 Company Stock Fund — A fund designed solely to invest in Company Stock. 

 

	 	(c)	 Investment Option — Such other investment options as may be selected from time to time by the
Investment Committee described in Section 10.6. 

 Nothing in this Section 5.1 shall prohibit
the Trustee from maintaining from time to time reasonable amounts in cash or cash equivalents. See Section 13 for a description of the Timken Stock Fund. 

All dividends, interest and other income of each fund, as well as stock splits, stock dividends, and the like, shall be
reinvested in that fund. 
 Notwithstanding any provision of the Plan to the contrary, (1) the Plan Administrator may
establish rules and procedures relating to the investments in one or more of the investment options, which rules and procedures may be changed from time to time by the Plan Administrator, and (2) the investment options shall be subject to, and
governed by, all applicable legal rules and restrictions and the rules specified by the investment option providers in the fund prospectus(es) or other governing documents thereof (to the extent such rules and procedures are imposed and enforced by
the investment fund provider against the Plan or a particular Participant). Such rules, procedures and restrictions may limit the ability of a Participant to make transfers into or out of a particular investment option and/or may result in
additional transaction fees or other costs relating to such transfers. 

  
 - 28 - 

 There will be no investment fees for Latrobe Transferred Participants for the
Company Stock Fund and three other investment options; but investment fees on the additional options will be charged to the Total Account of any Participant electing them. 
  

	 	5.2	 INVESTMENT ELECTION 

At the time an Eligible Employee elects to participate in the Plan, he must elect, in a form prescribed by the Plan
Administrator, to have contributions invested in the following manner; 
  

	 	(a)	 0%, or in increments of 1 % up to a total of 100% in the Money Market Fund. 

 

	 	(b)	 0%, or in increments of 1 % up to a total of 100% in any of the Investment Options. 

 

	 	(c)	 0%, or in increments of 1 % up to a total of 100% in the Company Stock Fund 

A Participant’s investment election must total 100% of such contributions. In the absence of a valid election by any
Participant, 100% of such contributions and loan repayments shall be credited to such investment fund determined by the Investment Committee described in Section 10.6. 

The provisions of this Section 5.2 are subject to the rules, procedures and restrictions described in Section 5.1.
In furtherance of, but without limiting the foregoing, the Trustee, the Plan Administrator, or any investment option provider (or their delegate, as applicable) may decline to implement any investment election or instruction where it deems
appropriate. 
  

	 	5.3	 CHANGE IN INVESTMENT ELECTION 

Each Participant may elect effective on any business day of the year and upon sufficient notice to the recordkeeper appointed
by the Company to have his current and/or future Participant and Company Matching Contributions invested in a proportion different from that previously selected. Such election shall be made in accordance with the percentage specifications provided
in Section 5.2. For purposes of the Plan, a “business day” shall be any day the New York Stock Exchange is open for trading. 

The provisions of this Section 5.3 are subject to the rules, procedures and restrictions described in Section 5.1.
In furtherance of, but without limiting the foregoing, the Trustee, the Plan Administrator, or any investment option provider (or their delegate, as applicable) may decline to implement any investment election or instruction where it deems
appropriate. 

  
 - 29 - 

	 	5.4	 RESPONSIBILITY OF PARTICIPANT IN MAKING INVESTMENT ELECTIONS 

The selection of an investment option in accordance with Sections 5.2 and 5.3 is the sole responsibility of each Participant.
The Plan Administrator, the Trustee, the Company, or any other fiduciary to the Plan are not authorized or permitted to advise a Participant as to the selection of any option or the manner in which such contributions shall be invested. The fact that
a security is available to Participants for investment under the Plan shall not be construed as a recommendation as to the purchase of that security, nor shall the designation of an investment option impose any liability on the Plan Administrator,
the Trustee, the Company, or any fiduciary to the Plan. 
 The Plan is intended to comply with the provisions of
Section 404(c) of ERISA and the regulations thereunder. The Plan Administrator, the Trustee, the Company, and any fiduciary of the Plan shall be relieved of liability for any losses that are the result of investment directions given by a
Participant, Beneficiary, or any other person authorized hereunder to direct the investment of any amount allocated to such Participant’s, Beneficiary’s, or other person’s Total Account. The selection of investment option choices and
the administration of Plan investments are intended to comply with the requirements of Section 404(c)(1) of ERISA and the regulations thereunder. 
  

	 	5.5	 TRANSFER OF FUNDS 

Each Participant may elect upon sufficient notice (or such other form as the Plan Administrator approves) at any time to have
any portion of his Total Account (in dollar amounts or in increments of 1%) in any fund to be transferred to any other fund. 

The provisions of this Section 5.5 are subject to the rules, procedures and restrictions described in Section 5.1.
In furtherance of, but without limiting the foregoing, the Trustee, the Plan Administrator, or any investment option provider (or their delegate, as applicable) may decline to implement any investment election or instruction where it deems
appropriate. 
  

	 	5.6	 STOCK RIGHTS, STOCK DIVIDENDS AND STOCK SPLITS 

The Trustee, unless otherwise directed by the Plan Administrator, shall sell any rights which it receives to purchase shares
of Company Stock. The net proceeds of the sale of such rights, and any cash received by the Trustee in connection with a stock dividend representing fractional interests in shares of Company Stock, shall be applied by the Trustee to purchase shares
of Company Stock. The shares so purchased and any shares received by the Trustee as a result of a stock dividend or stock split shall be allocated by the Plan Administrator to the individual accounts of Participants, in proportion to their
respective interests in Company Stock held by the Trust Fund. 

  
 - 30 - 

	 	5.7	 TRADING RESTRICTIONS 

Subject to Section 13, and notwithstanding any other provision of the Plan to the contrary: 

 

	 	(a)	 The Plan Administrator, in its sole and absolute discretion, may temporarily suspend, in whole or in part, certain Plan transactions, including,
without limitation, the right to change or suspend contributions, and/or the right to receive a distribution, loan or withdrawal from an account in the event of any conversion, change in recordkeeper and/or Plan merger or spinoff.

  

	 	(b)	 The Plan Administrator, in its sole and absolute discretion, may suspend, in whole or in part, temporarily or permanently, Plan transactions
dealing with investments, including without limitation, the right of a Participant to change investment elections or reallocate account balances in the event of any conversion, change in recordkeeper, change in investment options and/or Plan merger
or spinoff. 

  

	 	(c)	 In the event of a change in investment options and/or a Plan merger or spinoff, the Plan Administrator, in its sole and absolute discretion, may
decide to map investments from a Participant’s prior investment fund elections to the then available investment options under the Plan. In the event that investments are mapped in this manner, the Participant shall be permitted to reallocate
funds among the investment options (in accordance with the terms of the Plan and any relevant rules and procedures adopted for this purpose) after the suspension period described in paragraph (a) of this Section 5.7 (if any) is lifted.

  

	 	(d)	 Notwithstanding any provision of the Plan to the contrary, the investment options shall be subject to, and governed by, all applicable legal rules
and restrictions and the rules specified by the investment option providers in the fund prospectus(es) or other governing documents thereof (to the extent such rules and procedures are imposed and enforced by the investment fund provider against the
Plan or a particular Participant). Such rules, procedures and restrictions may limit the ability of a Participant to make transfers into or out of a particular investment option and/or may result in additional transaction fees or other costs
relating to such transfers. In furtherance of, but without limiting the foregoing, Trustee, recordkeeper, Plan Administrator or investment option provider (or their delegate, as applicable) may decline to implement any investment election or
instruction where it deems appropriate. 

  
 - 31 - 

	 	5.8	 RECOVERY OF ERRONEOUS PAYMENTS 

In the event of an erroneous payment or payment amount in excess of the Plan’s obligation, the Plan may reduce future
benefits by the amount of the error or may recover the excess directly from the person to or for whom the payment was made. This right of recovery does not limit the Plan’s right to recover an erroneous payment in any other manner. 

  
 - 32 - 

 SECTION 6 

VESTING 
  

	 	6.1	 VESTING OF PARTICIPANT CONTRIBUTIONS 

A Participant shall be fully Vested in his Before-Tax Contribution Account, Rollover Contribution Account, Latrobe Rollover
Contribution Account, and Latrobe Wage Reduction Contribution Account at all times. 
  

	 	6.2	 VESTING OF COMPANY MATCHING CONTRIBUTIONS 

A Participant shall be fully Vested in his Matching Contribution Account at all times. 

 

	 	6.3	 VESTING OF REINVESTED DIVIDENDS 

Dividends paid on Company Stock held in a Participant’s Total Account, and Company Stock acquired with such dividends,
will at all times be fully vested. 

  
 - 33 - 

 SECTION 7 

DISTRIBUTIONS 
  

	 	7.1	 DISTRIBUTION ON RETIREMENT, DISABILITY OR OTHER TERMINATION OF SERVICE 

 

	 	(a)	 After retirement at his Normal Retirement Date, date of Disability, or after his termination of employment with the Company and all Affiliated
Companies, the Participant’s entire undistributed Vested interest in the Trust Fund shall be available to be distributed to him in a single lump-sum payment as described in Section 7.2. 

 

	 	(b)	 A Participant who has terminated employment with the Company and all Affiliated Companies shall receive payment (or, if clause (i) of this
Section 7.1(b) applies and the Participant so elects, commence to receive payments) of the Vested portion of the undistributed balance in his Total Account as of one of the following dates: 

 

	 	(i)	 If the value of the Participant’s Vested interest in the Trust Fund at his Benefit Commencement Date exceeds $5,000, the date selected by the
Participant, which shall not be later than April 1 of the calendar year following the calendar year in which the Participant attains age 70-1/2 or terminates employment, whichever is later.

  

	 	(ii)	 If the value of the Participant’s Vested interest in the Trust Fund at his Benefit Commencement Date does not exceed $5,000, the Valuation
Date following his termination of employment with the Company and all Affiliated Companies. 

 Distributions shall be
made as soon as practicable after the applicable Valuation Date, provided the Participant has filed a proper distribution election form with the Plan Administrator, except as provided in the last paragraph of this Section 7.1. If the
Participant fails to make proper application for benefits, distribution shall be made no later than 60 days after the close of the Plan Year in which occurs the latest of the Participant’s (A) Normal Retirement Date, (B) tenth
anniversary of Plan participation, or (C) separation from Service with the Company and all Affiliated Companies. 
 If the amount of
distribution available under this Section 7.1 cannot be determined by the date distribution is required to begin, payment will begin no later than 60 days after the date the amount of distribution can be determined, and shall include payments
retroactive to the required beginning date. 

  
 - 34 - 

 Notwithstanding the foregoing, benefits from the Plan shall begin no later than April 1 of
the calendar year following the calendar year in which the Participant attains age 70 1⁄2 or terminates employment, whichever is later. 

The Plan will make an immediate lump sum distribution to a Participant if the value of the Participant’s Vested interest in the Trust
Fund is not more than $5,000, excluding any Rollover Contributions and any earnings allocable to Rollover Contributions. If the value of a Participant’s Vested interest exceeds $1,000 but does not exceed $5,000, and if the Participant does not
elect, pursuant to Section 7.10, to have his lump sum distribution paid directly to an eligible retirement plan in a direct rollover or to receive the distribution directly, the Plan Administrator shall cause the distribution to be paid in a
direct rollover to an individual retirement plan designated by the Plan Administrator. 
  

	 	7.2	 LUMP SUM DISTRIBUTIONS 

Lump sum distributions under Sections 7.1 or 7.3 may, at the election of the Participant (or, in the event of his death at the
election of his designated Beneficiary), be made either in the form of cash equal to the value of the Participant’s interest in his Vested Total Account, or in the form of Company Stock equal to all of the Participant’s whole shares in the
Company Stock Fund combined with a cash lump sum equal to the Participant’s fractional shares in the Company Stock Fund plus the remaining value of the Participant’s interest in the remaining funds. All distributions in Company Stock shall
consist of only full shares with the value of any remaining shares being distributed in cash. The conversion of shares of Company Stock to cash shall be based on the closing price per share on the last day on which the stock was traded coincident
with or next preceding the applicable Valuation Date. 
  

	 	7.3	 DISTRIBUTIONS ON DEATH 

  

	 	(a)	 Upon the death of any Participant whether serving as an active Employee or having terminated his employment for any reason whatsoever and prior to
commencement of, or complete distribution of, his Total Account, his entire remaining Vested interest in the Trust Fund shall be payable to his surviving Spouse as designated Beneficiary, except as provided below. If the Participant does not have a
Spouse as of his date of death, the Participant’s interest shall be paid to his designated Beneficiary. If a Participant’s designated Beneficiary shall have predeceased him, or if the Participant’s designation shall have lapsed or
failed for any reason, payment will be made to the Participant’s estate. 

  
 - 35 - 

 The Participant’s Vested interest may be paid to a designated Beneficiary other than his
Spouse while the Participant’s Spouse is living only with the written consent of the Spouse. A spousal consent under this Section 7.3 must: 
  

	 	(i)	 be in writing on a form provided by the Plan Administrator; 

 

	 	(ii)	 specify the Beneficiary; 

  

	 	(iii)	 acknowledge the effect of such consent; and 

  

	 	(iv)	 be witnessed by a notary public. 

Any such consent will be valid only with respect to the Spouse who signs the consent. A spousal consent is not required, however, if it is
established to the satisfaction of the Plan Administrator that the consent cannot be obtained because (A) there is no Spouse; (B) the Spouse cannot be located; or (C) such other circumstances as the Secretary of the Treasury may
prescribe by regulations. 
 A Participant’s designation of a Beneficiary or Beneficiaries shall not be effective for any purpose
unless and until it has been filed by the Participant with the Plan Administrator, provided, however, that any designation received by the Plan Administrator after the Participant’s death shall take effect upon such receipt, but prospectively
only and without prejudice to any payor or payee on account of any payments made before receipt of such designation by the Plan Administrator. 
  

	 	(b)	 Distribution of the Participant’s Vested interest in the Trust Fund under this Section 7.3 shall be made in a single lump sum payment as
described in Section 7.2. 

  

	 	(c)	 If distribution to the Participant has begun and the Participant dies before his entire interest has been distributed, the remaining portion of the
Participant’s nonforfeitable interest in the Trust Fund shall be distributed at least as rapidly as under the method of payment in effect at the Participant’s date of death. 

 

	 	(d)	 If the Participant dies before commencement of his nonforfeitable interest in the Trust Fund, such interest (reduced by any security interest held
by the Plan by reason of a loan outstanding to the Participant) shall be distributed to the Participant’s designated Beneficiary in a single lump sum cash payment within 90 days after the date the Participant’s death is reported to the
Plan Administrator, or within a reasonable period of time thereafter, and provided the designated Beneficiary has filed a proper distribution election form with the Plan Administrator. 

  
 - 36 - 

 Except as provided in paragraph (e) below, distribution to a designated Beneficiary shall
begin no later than the earlier of (i) December 31 of the calendar year containing the fifth anniversary of the Participant’s date of death, or (ii) December 31 of the calendar year in which the deceased Participant would
have attained age 70-1/2. 
  

	 	(e)	 If the Participant’s designated Beneficiary is his Spouse, such Spouse may elect to defer distribution until December 31 of the calendar
year in which the deceased Participant would have attained age 70-1/2. Such election must be made no later than the date distribution is required to begin under paragraph (d) above. If the Participant’s Spouse dies before any distribution
is made, the provisions of this Section 7.3 shall be applied as though the Spouse was the Participant. 

  

	 	(f)	 If the amount of distribution available under this Section 7.3 cannot be determined by the date distribution is required to begin, payment
will be made no later than 60 days after the date the amount of distribution can be determined, and shall include payments retroactive to the required beginning date. 

 

	 	7.4	 INVESTMENT OF DEFERRED DISTRIBUTIONS 

If a Participant defers receipt of a distribution of his Total Account in accordance with this Section, his Total Account
shall continue to be invested in accordance with the provisions of Section 5 until his Total Account is distributed to him. 
  

	 	7.5	 PROOF OF DEATH 

The Plan Administrator may, as a condition precedent to making payment to any Beneficiary, require that a death certificate,
burial certificate, or other evidence of death acceptable to it be furnished. 
  

	 	7.6	 LOAN AS A DISTRIBUTION 

In the event a Participant is eligible to receive a distribution in accordance with this Section 7, he shall be given the
opportunity to repay his outstanding loan balance, if any. Repayment must be made prior to the date of distribution. If the Participant fails to fully repay his outstanding loan balance at the time a lump-sum distribution is made to him, the
Participant’s loan shall be deemed canceled and the remaining outstanding loan balance shall be treated as part of the Participant’s lump sum distribution. 

If the Participant fails to fully repay his outstanding loan balance at the time the first payment of an installment is made
to him, the Participant’s loan shall be deemed canceled and the remaining 

  
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loan balance shall be treated as though it had been distributed to the Participant on the Valuation Date as of which his first installment payment is made. The outstanding loan balance shall not
be taken into account in determining the amount of installment payments. 
  

	 	7.7	 DISTRIBUTION TO ALTERNATE PAYEES 

The Plan Administrator may authorize the Trustee to make a lump sum distribution to an Alternate Payee pursuant to a Qualified
Domestic Relations Order as soon as administratively practicable after the Valuation Date next following the earlier of: 
  

	 	(a)	 The date the Participant terminates employment; 

  

	 	(b)	 The date the Participant is entitled to a distribution under the Plan; or 

 

	 	(c)	 The date the Alternate Payee elects to receive a distribution from the Plan; provided the Alternate Payee has filed a request for distribution with
the Plan Administrator. 

  

	 	(d)	 The date the Plan Administrator determines that the order is a Qualified Domestic Relations Order, subject to any deferred distribution date
specified in the Qualified Domestic Relations Order, provided the Alternate Payee has filed a request for distribution with the Plan Administrator. 

If the Alternate Payee’s nonforfeitable interest in the Plan does not exceed $5,000, distribution to the Alternate Payee
shall be made at the earliest possible date described above. 
  

	 	7.8	 NOTICE TO PAYEES 

At the time a Participant or Beneficiary makes application for benefits, the Plan Administrator shall furnish the individual
with a written notice of distribution. 
  

	 	7.9	 RESTRICTIONS ON DISTRIBUTIONS 

  

	 	(a)	 Notwithstanding any other provision of the Plan, a Participant’s Before-Tax Contribution Account shall not be distributable prior to his
termination of employment with the Company and all Affiliated Companies, Disability, or death, except: 

  

	 	(i)	 in cases of hardship, as provided in Section 8.1; or 

 

	 	(ii)	 upon termination of the Plan without establishment or maintenance of another defined contribution plan (other than an employee stock ownership plan
as defined in Section 4975(e)(7) of the Code). 

  
 - 38 - 

 No distribution shall be authorized by paragraph (ii) above, unless the
distribution qualifies as a “lump sum distribution” within the meaning of Section 401(k)(10)(B)(ii) of the Code. 
  

	 	(b)	 All distributions made from this Plan shall comply with the requirements of Section 401(a)(9) of the Code notwithstanding any other provisions
of the Plan to the contrary. 

  

	 	7.10	 ELIGIBLE ROLLOVER DISTRIBUTIONS 

Notwithstanding any provisions of the Plan to the contrary that would otherwise limit a Distributee’s election under this
Section 7.10, a Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution equal to at least $500 transferred to an Eligible Retirement Plan specified by
the Distributee in a Direct Rollover. 
 Definitions: 

 

	 	(a)	 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 ten years or more; any distribution to the extent such distribution is required under
Section 401(a)(9) of the Code; any distribution that is made upon the hardship of the employee; 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 securities); any dividend paid on Company Stock as described in Section 12.4; and any other distribution that is reasonably expected to total less than $200 during a year. Notwithstanding the foregoing, 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 includable 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 includable in gross income and the portion of such distribution which is not so includable. 

  
 - 39 - 

	 	(b)	 Eligible 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(a) of the Code, a qualified trust described in Section 401(a) of the Code, an annuity contract described in
Section 403(b) of the Code, 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 that accepts
the Distributee’s Eligible Rollover Distribution and agrees to separately account for amounts rolled into such plan from the Plan, and, effective January 1, 2008, a Roth IRA described in Section 408A(b) of the Code.

  

	 	(c)	 Distributee: A Distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving
Spouse and the Employee’s or former Employee’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. A Distributee also includes an Employee’s designated Beneficiary but only with respect to the following Eligible Retirement Plans: an individual retirement account described in Section 408(a) of the Code and an
individual retirement annuity described in Section 408(b) of the Code. 

  

	 	(d)	 Direct Rollover: A Direct Rollover is the payment by the Plan to the Eligible Retirement Plan specified by the Distributee.

  

	 	7.11	 REQUIRED MINIMUM DISTRIBUTIONS 

  

	 	(a)	 General Rules. 

  

	 	(i)	 The requirements of this Section 7.11 shall apply to any distribution of a Participant’s Account and shall take precedence over any
inconsistent provisions of this Plan, provided that the requirements of this Section 7.11 shall not enlarge the distribution options currently available to Participants and Beneficiaries under the other provisions of Section 7.11 of the
Plan. 

  

	 	(ii)	 All distributions required under this Section shall be determined and made in accordance with the regulations under Section 401(a)(9) of the
Code. 

  

	 	(iii)	 Except as otherwise provided in Section 7.11(m), the Plan will apply the minimum distribution requirements of Section 401(a)(9) of the
Code in accordance with the regulations under Section 401(a)(9) promulgated on April 17, 2002, notwithstanding any provisions of the Plan to the contrary. 

  
 - 40 - 

	 	(b)	 Distributions Commencing During a Participant’s Lifetime. 

 

	 	(i)	 To the extent required by Section 401(a)(9) of the Code and the regulations promulgated thereunder, the entire interest of a Participant must
be distributed to such Participant no later than the Participant’s Required Beginning Date, or must be distributed, beginning not later than the Required Beginning Date, over the life of the Participant or joint lives of the Participant and
designated Beneficiary or over a period not extending beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and the designated Beneficiary. 

 

	 	(ii)	 Required Beginning Date means, for a Participant who is a five percent owner (as defined in Section 416 of the Code), April 1 of the
calendar year following the calendar year in which he attains age 70  1⁄2. 

 

	 	(iii)	 Required Beginning Date means, for any Participant who is not a five percent owner (as defined in Section 416 of the Code), April 1 of
the calendar year following the later of the calendar year in which he attains age 70  1⁄2 or the calendar year of his Retirement. 

 

	 	(iv)	 The applicable distribution period for required minimum distributions for distribution calendar years up to and including the distribution calendar
year that includes the Participant’s death is determined using the Internal Revenue Service’s Uniform Lifetime Table for the Participant’s age as of the Participant’s birthday in the relevant distribution calendar year.

  

	 	(c)	 Distributions Before Required Beginning Date. Lifetime distributions made before the Participant’s Required Beginning Date for calendar
years before the Participant’s first distribution calendar year, need not be made in accordance with this Section 7.11. However, if distributions commence before the Participant’s Required Beginning Date under a particular
distribution option, the distribution option fails to satisfy the provisions of Section 401(a)(9) of the Code at the time distributions commence, if under the terms of the particular distribution option, distributions to be made for the
Participant’s first distribution calendar year or any subsequent distribution calendar year fail to satisfy Section 401(a)(9) of the Code. 

  

	 	(d)	 Death After Distributions Have Begun. If distribution of the Participant’s interest has begun and the Participant dies before his
entire interest has been distributed to him, the remaining 

  
 - 41 - 

	 	 
portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Participant’s death. The applicable distribution
period for distribution calendar years after the distribution calendar year containing the Participant’s death is either the longer of the remaining life expectancy of the Participant’s designated Beneficiary or the remaining life
expectancy of the Participant. If the Beneficiary is not an individual or does not otherwise meet the requirements of Section 401(a)(9) of the Code, the remaining life expectancy of the Participant must be utilized. 

 

	 	(e)	 Death Before Required Beginning Date. If the Participant dies before his Required Beginning Date and distribution of his interest,
distribution of the Participant’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 

 

	 	(f)	 Minimum Distribution Amount. 

If a Participant’s benefit is to be distributed over: 

 

	 	(i)	 a period not extending beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and the
Participant’s designated Beneficiary, or 

  

	 	(ii)	 a period not extending beyond the life expectancy of the designated Beneficiary, 

the amount required to be distributed for each calendar year beginning with the distributions for the first distribution calendar year, must
be at least equal to the quotient obtained by dividing the Participant’s benefit by the applicable distribution period. For distribution calendar years up to and including the distribution calendar year that includes the Participant’s
death, the required minimum distribution amount is determined under the Uniform Lifetime Tables promulgated by the Internal Revenue Service for the Participant’s age as of his birthday in the relevant distribution calendar year. If a
Participant dies on or after the Required Beginning Date, the distribution period available for calculating the amount that must be distributed during the distribution calendar year that includes the Participant’s death is determined as if the
Participant had lived throughout the year. If the sole designated Beneficiary of a Participant is the Participant’s surviving Spouse, for required minimum distributions during the Participant’s lifetime, the applicable distribution period
is the longer of the distribution period determined in accordance with the preceding three sentences or the joint life expectancy of the Participant and Spouse using the Participant’s and Spouse’s attained

  
 - 42 - 

 
ages as of the Participant’s and Spouse’s birthdays in the distribution calendar year. The Spouse is the sole designated Beneficiary for purposes of determining the applicable
distribution period only if the Spouse is the sole Beneficiary of the Participant’s entire interest at all times during the distribution calendar year. 
  

	 	(g)	 Life expectancies for purposes of determining required minimum distributions must be computed using the Single Life Table and the Joint and Last
Survivor Table promulgated by the Internal Revenue Service. 

  

	 	(h)	 If distributions are made in accordance with this Section 7.11, the minimum distribution incidental benefit requirement is satisfied.

  

	 	(i)	 Timing of Distributions. The minimum distribution required for the Participant’s first distribution
calendar year must be made on or before the Participant’s Required Beginning Date. The minimum distribution for other calendar years, including the minimum distribution for the distribution calendar year in which the Participant’s Required
Beginning Date occurs, must be made on or before December 31 of that calendar year. 

  

	 	(j)	 Distribution to a Charitable Organization. If a Participant selects as his Beneficiary a tax-exempt organization qualified under
Section 501(c)(3) of the Code, any interest under the Plan payable to said tax-exempt organization must be distributed no later than September 30 of the calendar year following calendar year in which the Participant dies.

  

	 	(k)	 Multiple Plans. If a Participant is a participant in more than one qualified retirement plan, the plans in which the Participant
participates are not permitted to be aggregated for purposes of testing whether the distribution requirements are met. The distribution of the benefit of the Participant under each plan must separately meet the requirements. 

 

	 	(l)	 Special Accounts. For purposes of this Plan, the ESOP Account and the Non-ESOP Account for each Participant will be aggregated for purposes
of satisfying the minimum distribution rules, unless there are different Beneficiaries for such accounts, in which the case the distribution rules will separately apply. 

 

	 	(m)	 2009 Required Minimum Distributions. 

  

	 	(i)	 2009 RMDs. Notwithstanding the preceding provisions of this Section 7.11, a Participant or Beneficiary who would have been required to
receive required minimum distributions for 2009 but for the enactment of Section 401(a)(9)(H) of the Code (“2009 RMDs”), and who would have satisfied that requirement by

  
 - 43 - 

	 	 
receiving distributions that are equal to the 2009 RMDs, will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants
and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence. In addition, notwithstanding Section 7.10 of the Plan, and solely for purposes of
applying the direct rollover provisions of the Plan, 2009 RMDs will be treated as eligible rollover distributions on or after June 8, 2009. Prior to June 8, 2009, a direct rollover was offered only for distributions that would be eligible
rollover distributions without regard to Section 401(a)(9)(H) of the Code. 

  

	 	(ii)	 Extended 2009 RMDs. Notwithstanding the preceding provisions of this Section 7.11, a Participant or Beneficiary who would have been
required to receive 2009 RMDs but for the enactment of Section 401(a)(9)(H) of the Code, and who would have satisfied that requirement by receiving distributions that are one or more payments in a series of substantially equal distributions
(that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant’s designated Beneficiary, or for a
period of at least 10 years (“Extended 2009 RMDs”), will receive those distributions for 2009 unless the Participant or Beneficiary chooses not to receive such distributions. For purposes of applying the direct rollover provisions of
Section 7.10 of the Plan, Extended 2009 RMDs are not treated as eligible rollover distributions. 

  

	 	(iii)	 Rollover Contributions. Subject to the timing requirements outlined in applicable rules and regulations, a Participant may contribute to the
Trust as a Rollover Contribution any 2009 RMDs and Extended 2009 RMDs distributed from the Plan to the Participant. 

  
 - 44 - 

 SECTION 8 

WITHDRAWALS AND LOANS DURING EMPLOYMENT 
  

	 	8.1	 HARDSHIP WITHDRAWALS 

  

	 	(a)	 A Participant may request a hardship withdrawal, subject to the approval of the Plan Administrator, in an amount which does not exceed the amount
required to meet the immediate and heavy financial need created by the hardship and provided the Participant has obtained all distributions (including distributions of ESOP dividends under section 404(k) of the Code but not hardship distributions)
and all nontaxable loans available under all qualified plans maintained by the Company or an Affiliated Company (including, without limitation, any qualified and non-qualified deferred compensation plan and any cash or deferred arrangement that is
part of a cafeteria plan (other than mandatory employee contributions under a welfare plan or pension plan)). 

The Plan Administrator will not approve a hardship withdrawal for less than $200. The Plan Administrator shall promptly
review the hardship withdrawal request and notify the Participant that the request has been approved or disapproved. The Plan Administrator shall approve requests for hardship withdrawals using the objective criteria set forth in paragraph
(b) below as well as documentary evidence submitted by the Participant to substantiate the reason for and the amount of the need. The only discretion to be exercised by the Plan Administrator is that which is reasonably necessary to determine
whether the objective conditions have been met. 
 In the event amounts are withdrawn from the Participant’s
Before-Tax Contributions Account in accordance with this Section 8.1, Participant Contributions made under Section 3.1 (or any comparable contributions to any other plan maintained by the Controlled Group, including, without limitation,
any non-qualified deferred compensation plan, any cash or deferred arrangement that is part of a cafeteria plan (other than mandatory employee contributions under a welfare plan or pension plan) and any stock option, stock purchase or similar plan)
shall be suspended for a period of six consecutive months commencing the next available pay period following the date of withdrawal. 
  

	 	(b)	 For purposes of this Section, a withdrawal shall be deemed to be made on account of an immediate and heavy financial need of the Participant if the
withdrawal is on account of: 

  

	 	(i)	 expenses for (or necessary to obtain) medical care that would be deductible under Section 213(d) of the Code (determined without regard to
whether the expenses exceed 7.5% of adjusted gross income); 

  
 - 45 - 

	 	(ii)	 costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant; 

 

	 	(iii)	 payment of tuition, related educational fees, and room and board expenses for up to the next twelve months of post-secondary education for the
Participant, the Participant’s Spouse, children or dependents (as defined in Code Section 152, and, for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(b)(1), (b)(2), or (d)(1)(B));

  

	 	(iv)	 payments necessary to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage of
that principal residence; 

  

	 	(v)	 payment for burial or funeral expenses for the Participant’s deceased parent, Spouse, children or dependents (as defined in Section 152
of the Code, and, for taxable years beginning on or after January 1, 2005, without regard to Section 152(d)(1)(B) of the Code); or 

  

	 	(vi)	 expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under
Section 165 of the Code (determined without regard to whether the loss exceeds 10% of adjusted gross income). 

  

	 	(c)	 A hardship withdrawal made by a Participant under this Section 8.1 shall be withdrawn from the Participant’s Total Account:

  

	 	(i)	 First, from the Vested balance in his Matching Contribution Account; 

 

	 	(ii)	 Next, from the balance in his Before-Tax Contribution Account; 

 

	 	(iii)	 Next, from the balance in his Latrobe Rollover Contribution Account; 

 

	 	(iv)	 Next, from the balance in his Latrobe Wage Reduction Contribution Account. 

 

	 	(d)	 Amounts withdrawn under paragraph (c) above shall be debited from each Fund (except the Loan Fund) in proportion to the balance of each
account from which the withdrawal to be made is invested in such Fund. 

  
 - 46 - 

	 	(e)	 Requests for hardship withdrawals may be made at any time, but not more frequently than once a year for reasons other than payment of
post-secondary education expenses. Requests for hardship withdrawals for payment of post-secondary education expenses may be made as often as every calendar quarter, and may be made in addition to a withdrawal for a non-tuition payment reason. All
withdrawal elections shall be made by a Participant on written forms supplied by the Trustee for that purpose. 

  

	 	8.2	 RESTORATION OF WITHDRAWALS 

A Participant shall not be permitted to restore to the Plan any amounts withdrawn under the provisions of Section 8.1.

  

	 	8.3	 TIMING OF WITHDRAWALS 

All withdrawals shall be made as soon as practicable after the Valuation Date designated by the Participant in his election.
The Plan Administrator in its discretion may authorize an advance payment in an amount equal to all or a portion of the amount of the requested withdrawal, with the balance, if any, to be made as soon as practicable after such Valuation Date. To the
extent that any withdrawals are made from the Company Stock Fund or Timken Stock Fund, such withdrawals shall be made in cash. Withdrawals of shares are not permitted. 
  

	 	8.4	 LOANS 

A Participant or any beneficiary who is a party in interest (as defined in Section 3(14) of ERISA) may obtain a loan from
the Trust for any reason upon proper application to the Trust pursuant to procedures established by the Company. For purposes of this Section 8.4, the term “Participant” shall include an Alternate Payee described in the preceding
sentence. The nature and amount of the loan must conform to the following rules and limits: 
  

	 	(a)	 The Participant may borrow only from such Participant’s Vested interest in his Total Account. 

 

	 	(b)	 The minimum loan amount is $1,000. 

  

	 	(c)	 The maximum loan amount is the lesser of (i) 50 percent (50%) of the Participant’s Vested interest in his Total Account reduced by
any current outstanding loan balance or (ii) $50,000, reduced by the Participant’s highest outstanding loan balance from the Plan during the one-year period ending on the day before the date on which
such loan is made. The Trustee will accept only the Participant’s accrued benefit as collateral for loans. 

  
 - 47 - 

	 	(d)	 The term of the loan cannot exceed five (5) years, except that the term of a loan made for the purpose of purchasing a primary residence
cannot exceed thirty (30) years. The term of a loan that is not for the purchase of a primary residence may be extended beyond five (5) years for a Participant on military leave from the Company with the term of the extension not to exceed
the length of such military leave. 

  

	 	(e)	 A Participant may have only one loan from this Plan in effect at any one time and may apply for a subsequent loan immediately after his previous
loan is paid in full. 

  

	 	(f)	 The Company will establish the rate of interest to be charged on all loan balances. This rate of interest will be one percent (1%) in excess
of the prime rate as published in the Wall Street Journal on the first business day of the month in which the loan is granted. A Participant on a military leave from the Company may be entitled to the interest rate reduction provided in the
Soldiers’ and Sailors’ Civil Relief Act of 1940. 

  

	 	(g)	 The loan shall be repaid by the Participant, if the Participant is an active Employee, through payroll deduction (at least quarterly) as
established by the loan agreement. If the borrower is not an active Employee, the borrower and the Company shall agree to a repayment schedule which shall be incorporated in the loan agreement. 

 

	 	(h)	 The loan may be repaid in full at a date earlier than provided in the loan agreement with no penalty. 

 

	 	(i)	 Any loan fees will be charged to the Participant’s account. 

 

	 	(j)	 Interest paid by the Participant in excess of loan fees, if any, will be credited directly to the Participant’s account.

  

	 	(k)	 The loan amount will be taken on a pro-rata basis from the beneficial loan interest in all investment options at the time of the loan and on a
pro-rata basis from Company, Participant and Rollover Contributions at the time of the loan. Repayments will be redeposited into the Participant’s current investment options and contributions using the current ratio. 

 

	 	(l)	 If a Participant or Beneficiary does not repay a loan which he may have from the Plan, the Trustee will declare such loan to be in default when the
loan is in arrears of repayment for more than 90 days. The Trustee may take steps to preserve Plan assets, if necessary, in the event of such default. Once default has been established, the amount of the loan in default (unpaid principal and the
interest accrued thereon) shall be treated as a distribution from the Plan in the Plan Year in which the default occurs. The amount of the default will not constitute part of subsequent distributions from the Trust. 

  
 - 48 - 

	 	(m)	 The Plan Administrator may agree to a suspension of loan payments for up to twelve (12) months for a Participant who is on a Leave of Absence
without pay. During the suspension period, interest shall continue to accrue on the outstanding loan balance. At the expiration of the suspension period, all outstanding loan payments and accrued interest thereon shall be due unless otherwise agreed
upon by the Plan Administrator. 

  

	 	(n)	 The proceeds of the loan cannot be applied toward the purchase of any securities. 

 

	 	(o)	 Loan repayments will be suspended under this Plan as permitted under Section 414(u) of the Code. 

 

	 	8.5	 TIMING OF LOANS 

Loans may be applied for on any business day. 
  

	 	8.6	 COMPLIANCE WITH LAW 

The rules and limits for this loan provision may be changed from time to time to comply with the Internal Revenue Code and
with regulations issued thereunder. 

  
 - 49 - 

 SECTION 9 

ADMINISTRATION OF THE PLAN 
  

	 	9.1	 THE PLAN ADMINISTRATOR 

TimkenSteel Corporation is the named fiduciary of the Plan and the Plan Administrator, unless it appoints a Plan
Administrator. 
  

	 	9.2	 POWERS OF THE PLAN ADMINISTRATOR 

The Plan Administrator shall have the sole responsibility for the administration of the Plan with all powers necessary to
enable it properly to carry out its duties in that respect, and its decisions upon all matters within the scope of its authority shall be final. Subject to this Section 9 and ERISA, the Plan Administrator shall have and shall exercise complete
discretionary authority to construe, interpret, and apply all of the terms of the Plan, including all matters relating to eligibility for benefits, amount, time or form of benefits, and any disputed or doubtful terms. In exercising such discretion,
the Plan Administrator shall give controlling weight to the intent of the sponsor of the Plan. Specifically, but not in limitation of the broad power herein conferred, the Plan Administrator shall have the power, pursuant to the Plan, to: 

 

	 	(a)	 Determine the following: 

  

	 	(i)	 Whether a person working for the Company is an Eligible Employee within the definition of that term as used in the Plan; 

 

	 	(ii)	 The Service of any such Employee; 

  

	 	(iii)	 All other questions involving construction of the Plan or any of the terms or provisions thereof. 

 

	 	(b)	 Examine the administration by the Trustee of the Trust Fund, to take action where necessary regarding any acts or omissions of the Trustee in the
administration of the Trust Fund and to make any claim against the Trustee for negligence or otherwise with reference to such acts or omissions. The responsibility of the Plan Administrator in this area is limited to administrative actions and
procedures of the Plan Administrator and does not include investment policies, practices or management. 

  

	 	(c)	 Engage an independent qualified public accountant to conduct an examination of any financial statement of the Plan so as to enable him to conduct
an opinion as to any other financial statements necessary for the operation of the Plan. 

  
 - 50 - 

	 	(d)	 Appoint such agents and subcommittees as it may deem necessary for the effective exercise of its powers and duties and to delegate to such agents
and subcommittees any powers and duties, both ministerial and discretionary, as the said Plan Administrator shall deem expedient and appropriate. 

  

	 	(e)	 Authorize the Trustee to incur expenses not provided for in the Trust Agreement and to reimburse the Trustee for any expenses so incurred.

  

	 	(f)	 Adopt such rules of procedure as it shall deem necessary in the administration of the Plan, including, but not limited to, procedures for
presenting claims for benefits under the Plan and for review of claims which are denied in whole or in part, and procedures for complying with the requirements of Section 414(p) of the Code with respect to Qualified Domestic Relations Orders.

  

	 	(g)	 Establish rules and procedures governing investment elections and directions of Participants under the Plan, as specified in Section 5.1.

 The decision of the Plan Administrator made in good faith upon any matter within the scope of its
authority shall be final, but the Plan Administrator at all times in carrying out its decisions shall act in a uniform and nondiscriminatory manner and may from time to time set down uniform rules of interpretation and administration, which rules
may be modified from time to time. 
  

	 	9.3	 PLAN ADMINISTRATION 

The Plan Administrator shall have responsibility for the administration of this Plan, including power to construe this Plan,
to determine all questions that shall arise hereunder, including particularly questions on eligibility and participation of Employees and allocations of Company Matching Contributions to Participants’ Accounts and all matters necessary for it
properly to discharge its duties, powers and obligations and to apply its established policies concerning the employment status of Participants. 
  

	 	(a)	 The Plan Administrator will make all determinations as to the right of any person to benefits under the Plan in accordance with the governing Plan
documents and will ensure that Plan provisions are applied consistently with respect to similarly situated claimants. Any denial by the Plan Administrator of a claim for benefits under the Plan (other than a claim subject to Section 9.10) by a
claimant, who may be a Participant or a Beneficiary, will be stated in writing by the Plan Administrator and delivered or mailed to the claimant within a reasonable period of time, but not later than 90 days after receipt of the claim by the Plan,
unless the Plan Administrator determines that special circumstances 

  
 - 51 - 

	 	 
require an extension of time for processing the claim. Written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. The extension
notice shall indicate the special circumstances requiring an extension of time and the day by which the Plan expects to render the benefit determination, which cannot exceed a period of 90 days from the end of the initial determination period.

  

	 	(b)	 The Plan Administrator shall provide a claimant with written or electronic notification of any adverse benefit determination. The notification
shall set forth in a manner calculated to be understood by the claimant: 

  

	 	(i)	 The specific reason or reasons for the adverse benefit determination; 

 

	 	(ii)	 Reference to the specific plan provisions on which the determination is based; 

 

	 	(iii)	 A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or
information is necessary; 

  

	 	(iv)	 A description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s
right to bring a civil action under Section 502(a) of the Act following an adverse benefit determination on review. 

  

	 	(c)	 In addition, the Plan Administrator will provide an opportunity to any claimant whose claim for benefits has been denied an opportunity for a full
and fair review of the denial. As part of the review, the Plan Administrator will: 

  

	 	(i)	 Provide a claimant at least 60 days following receipt of notification of an adverse benefit determination within which to appeal the determination;

  

	 	(ii)	 Provide a claimant the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

  

	 	(iii)	 Provide that a claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; 

  

	 	(iv)	 Provide for a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the
claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

  
 - 52 - 

	 	(d)	 The Plan Administrator shall provide a claimant with written or electronic notification of the Plan’s benefits determination on review within
60 days after the Plan Administrator receives the request for review. In the case of an adverse benefit determination, the notification shall set forth, in a manner calculated to be understood by the claimant: 

 

	 	(i)	 The specific reason or reasons for the adverse benefit determination; 

 

	 	(ii)	 Reference to the specific plan provisions on which the determination is based; 

 

	 	(iii)	 A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claimant’s claim for benefits; 

  

	 	(iv)	 A statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the information about such
procedures and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA. 

  

	 	9.4	 INDEMNIFICATION 

The Company may indemnify all persons, including Employees, who are or may be determined to be fiduciaries as that term is
defined in ERISA, including independent professional advisors and service organizations which it is contractually obligated to indemnify to the extent permitted by law against any and all claims, loss, damages, expenses and liability from any action
or failure to act except when such action or failure to act is due to the gross negligence, willful misconduct of willful breach of fiduciary duty of such person. 
  

	 	9.5	 FIDUCIARY INSURANCE 

The Company may secure to the extent practicable and maintain in full force and effect insurance on behalf of all persons,
including Employees, who are or may be determined to be fiduciaries, as that term is defined in ERISA, including independent professional advisors and service organizations which it is contractually obligated to indemnify, to cover liability or
losses occurring by reason of the act or omission of each such person, unless such act or omission is due to the gross negligence, willful misconduct or willful breach of fiduciary duty of such person, and may secure and maintain in full force and
effect insurance on behalf of other independent professional advisors and service organizations which are or may be determined to be fiduciaries, as that term is defined in ERISA. 

  
 - 53 - 

	 	9.6	 FILINGS WITH THE PLAN ADMINISTRATOR 

For all purposes of the Plan, any designation or change of Beneficiary, distribution election, or other form or document
required under the Plan shall become effective only upon receipt by the Plan Administrator or its delegate of such written designation, change, or election, or other form or document. 

 

	 	9.7	 PAYEE UNKNOWN 

  

	 	(a)	 If the Plan Administrator is unable after any benefit becomes due hereunder to authorize payment because the whereabouts of a Participant or
Beneficiary cannot be ascertained, the Plan Administrator shall send written notice of such benefit to the Participant or Beneficiary at his last known mailing address as shown by the records of the Company. The Total Account payable to the
Participant or Beneficiary shall continue to be maintained until the earlier of: 

  

	 	(i)	 the date the Participant or Beneficiary entitled to the benefit makes application therefor, or 

 

	 	(ii)	 the fifth anniversary of the Participant’s or Beneficiary’s Benefit Commencement Date. 

 

	 	(b)	 If the Plan Administrator, after making a reasonably diligent effort, cannot locate the Participant or Beneficiary for a period of five years, the
amount payable to such Participant or Beneficiary shall be forfeited on the Valuation Date next following the fifth anniversary of the Participant’s or Beneficiary’s Benefit Commencement Date. Forfeitures arising under this
Section 9.7 shall be applied as provided in Section 4.5. 

 Should the Participant or
Beneficiary subsequently make application for benefits, the amount so forfeited shall be paid to the Participant or Beneficiary, and the Company shall reimburse the Trust Fund for the payment by making a special contribution for such purpose or by
using Forfeitures. 
  

	 	9.8	 RELIANCE ON STATEMENTS OF PARTICIPANTS AND BENEFICIARIES 

The Company, any Affiliated Company, the Plan Administrator, and the Trustee may rely upon any certificate, statement, or
other representation made to them by any Employee, Participant, Spouse, or other Beneficiary with respect to age, length of service, Leave of Absence, date of cessation of employment, marital status, or other fact required to be determined under any
of the provisions of this Plan, and shall not be liable on account of any payment or the performance of any act in reliance upon any such certificate, statement, or other representation. 

  
 - 54 - 

 Any such certificate, statement or other representation made by an Employee or
Participant shall be conclusively binding upon such Employee or Participant and his Spouse or other Beneficiary, and such Employee, Participant, Spouse, or Beneficiary shall thereafter and forever be estopped from disputing the truth and correctness
of such certificate, statement, or other representation. 
  

	 	9.9	 DISTRIBUTION TO MINORS AND INCAPACITATED PAYEES 

In the event a distribution is to be made to a minor or an adult unable to attend to his affairs for any reason (including,
but not limited to, illness, infirmity, or mental incapacity), the Plan Administrator may in its discretion direct that such distribution be made (a) directly to him, or (b) to the parent or other legal guardian, Plan Administrator, or
conservator of such person, or to a custodian for a minor Beneficiary under the Uniform Gifts to Minors Act. Payment to any such person shall fully discharge the Plan Administrator, Trustee, Company, and Plan from further liability on account
thereof. 
  

	 	9.10	 CLAIMS FOR DISABILITY BENEFITS 

  

	 	(a)	 Notwithstanding the foregoing provisions of this Section 9, any denial by the Plan Administrator of a claim for benefits with respect to a
Participant’s Disability will be stated in writing by the Plan Administrator and delivered or mailed to the claimant within a reasonable period of time, but not later than 45 days after receipt of the claim by the Plan, unless the Plan
Administrator determines that special circumstances require an extension of time for processing the claim, due to matters beyond the control of the Plan Administrator. Written notice of the extension shall be furnished to the claimant prior to the
termination of the initial 45-day period. The extension notice shall indicate the special circumstances requiring an extension of time and the day by which the Plan expects to render the benefit determination, which cannot exceed a period of 30 days
from the end of the initial determination period. Additionally, if, prior to the end of the first 30-day extension period, the Plan Administrator determines that special circumstances require an extension of time for processing the claim, due to
matters beyond the control of the Plan Administrator, the period for making the determination may be extended for up to an additional 30 days. Written notice of the second extension shall be furnished to the claimant prior to the termination of the
first 30-day extension period. The second extension notice shall indicate the special circumstances requiring an 

  
 - 55 - 

	 	 
extension of time and the day by which the Plan Administrator expects to render a decision, which cannot exceed a period of 30 days from the end of the first 30-day extension period. Any notice
of extension under this Section 9.10(a) shall also specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve the
issues. The claimant shall be afforded at least 45 days within which to provide the specified information. Additionally, in the event that a period of time is extended due to a claimant’s failure to submit information necessary to decide a
claim, the period for making the benefit determination shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.

  

	 	(b)	 The Plan Administrator shall provide a claimant with written or electronic notification of any adverse benefit determination with respect to a
Participant’s Disability. The notification shall set forth in a manner calculated to be understood by the claimant: 

  

	 	(i)	 The specific reason or reasons for the adverse benefit determination; 

 

	 	(ii)	 Reference to the specific plan provisions on which the determination is based; 

 

	 	(iii)	 A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or
information is necessary; 

  

	 	(iv)	 A description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s
right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review; 

  

	 	(v)	 A specific reference to the internal rule, guideline, protocol or other similar criterion, if any, that was relied upon in making the adverse
determination or a statement that such rule, guideline, protocol, or other similar criterion, if any, was relied upon in making the adverse determination and that a copy of such rule, guideline, protocol, or other similar criterion will be provided
free of charge to the claimant upon request. 

  

	 	(c)	 In addition, the Plan Administrator will provide an opportunity to any claimant whose claim for benefits has been denied under this
Section 9.10 an opportunity for a full and fair review of the denial by a named fiduciary designated by the Plan Administrator that is neither the individual who made the adverse benefit determination that is the subject of the appeal, nor the
subordinate of such individual. As part of the review, the named fiduciary will: 

  

	 	(i)	 Provide a claimant at least 180 days following receipt of notification of an adverse benefit determination within which to appeal the
determination; 

  
 - 56 - 

	 	(ii)	 Provide a claimant the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

  

	 	(iii)	 Provide that a claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; 

  

	 	(iv)	 Provide for a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the
claim, without regard to whether such information was submitted or considered in the initial benefit determination; 

  

	 	(v)	 Provide for a review that does not afford deference to the initial adverse benefit determination; 

 

	 	(vi)	 Provide that, in deciding any appeal of any adverse benefit determination that is based in whole or in part on a medical judgment, the named
fiduciary shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment and who is neither the individual who was consulted in connection with the adverse benefit
determination that is the subject of the appeal, nor the subordinate of any such individual; 

  

	 	(vii)	 Provide for the identification of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the
claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the initial benefit determination. 

  

	 	(d)	 The named fiduciary shall provide a claimant with written or electronic notification of the Plan’s benefits determination on review within 45
days after the Plan receives the request for review, unless the named fiduciary determines that special circumstances require an extension of time for processing the claim. Written notice of the extension shall be furnished to the claimant prior to
the termination of the initial 45-day period. The extension 

  
 - 57 - 

	 	 
notice shall indicate the special circumstances requiring an extension of time and the day by which the named fiduciary expects to render the benefit determination, which cannot exceed a period
of 45 days from the end of the initial determination period. In the case of an adverse benefit determination, the notification shall set forth, in a manner calculated to be understood by the claimant: 

 

	 	(i)	 The specific reason or reasons for the adverse benefit determination; 

 

	 	(ii)	 Reference to the specific plan provisions on which the determination is based; 

 

	 	(iii)	 A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claimant’s claim for benefits; 

  

	 	(iv)	 A statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the information about such
procedures and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA 

  

	 	(v)	 A specific reference to the internal rule, guideline, protocol or other similar criterion, if any, that was relied upon in making the adverse
determination or a statement that such rule, guideline, protocol, or other similar criterion, if any, was relied upon in making the adverse determination and that a copy of such rule, guideline, protocol, or other similar criterion will be provided
free of charge to the claimant upon request. 

 To the extent permitted by applicable law, the
determination on review shall be final and binding on all interested persons. In performing the duties under this Section 9.10, the named fiduciary shall have the same powers to interpret the Plan and make factual findings with respect thereto
as are granted to the Plan Administrator under Section 9.2. 

  
 - 58 - 

 SECTION 10 

ADMINISTRATION OF THE TRUST 
  

	 	10.1	 TRUST AGREEMENT 

The Company has entered into a Trust Agreement, hereinbefore and hereinafter referred to as “the Trust Agreement”.

  

	 	10.2	 PROVISIONS OF THE TRUST AGREEMENT 

Pursuant to the terms and provisions of the Trust Agreement, such Trustees as the Company may appoint, will receive and invest
all contributions made under the Plan by the Company and by the Participants to the Trust Fund held by the Trustees and all income derived therefrom. The Company may remove the Trustee and may appoint successor or additional trustees and may divide
their duties and responsibilities as it sees fit. 
  

	 	10.3	 EXCLUSIVE BENEFIT OF PARTICIPANTS 

All assets of the Trust Fund, whether representing contributions made by the Company or by the Participants, shall be held by
the Trustees as a trust fund for the benefit of Participants and Beneficiaries under the Plan. In no event shall it be possible at any time prior to the satisfaction of all liabilities, fixed or contingent, under the Plan, for any part of the assets
of the Trust Fund whether principal or income, to be used for, or diverted to, purposes other than for the exclusive benefit of such Participants and their Beneficiaries. 
  

	 	10.4	 DIRECTIONS OF THE PLAN ADMINISTRATOR 

The Trust Agreement also specifically provides, among other things, for the investment or reinvestment of the Trust Fund and
the income derived therefrom, and for the management of such Trust Fund, the responsibilities and immunities of the Trustees, the removal of the Trustees and the appointment of successors, accountings by the Trustees and the disbursement of the
Trust Fund in accordance with the direction of the Plan Administrator. 
  

	 	10.5	 COORDINATION OF PLAN AND TRUST AGREEMENT 

The rights of all persons under the Plan are subject to all the terms and provisions of said Trust Agreement. 

  
 - 59 - 

	 	10.6	 INVESTMENT COMMITTEE 

The “Investment Committee” of TimkenSteel Corporation shall exercise all powers under the Plan which relate to the
investment policy, practice and management of the assets of the Plan, including the selection of the investment funds hereunder, subject to the requirements of the Plan. In furtherance of its duties it may engage investment managers, who may be
authorized to direct the Trustee in the making of investments, and may discharge any investment manager so engaged and engage other investment managers at any time in its sole judgment. The Investment Committee is the named fiduciary for investment
policy of the Trust Fund. 
  

	 	10.7	 RETURN OF CONTRIBUTIONS 

Nothing herein shall prohibit a return to the Company, within one year after payment, of excess sums contributed to the Trust
Fund as a result of a mistake of fact. In the event that the Commissioner of Internal Revenue (or his delegate) determines that the Plan is not initially qualified under the Code, any Company Matching Contributions made to the Plan shall be returned
to the Company within one year after the date the initial qualification is denied, provided application for qualification is made by the time prescribed by law for filing the Company’s return for the taxable year in which the Plan is adopted,
or such later date as the Secretary of the Treasury may prescribe. 
 Each Company Matching Contribution is conditioned on
the deductibility of the contribution under Section 404 of the Code, and to the extent such contribution is disallowed, the contribution shall be returned to the Company within one year after the date of disallowance. 

  
 - 60 - 

 SECTION 11 

AMENDMENT, TERMINATION, OR MERGER OF THE PLAN 
  

	 	11.1	 RIGHT TO AMEND 

The Company expressly reserves the right to amend or discontinue the Plan by action of the Board at any time. 

The Board or the Plan Administrator shall have the authority to waive requirements as to eligibility in the case of those
Participants whose standing has changed so as to otherwise render them ineligible to participate. No amendment may be made which will deprive any Employee of any interest hereunder that has accrued to him. 

 

	 	11.2	 RIGHT TO TERMINATE 

The Plan may be terminated at any time by resolution of the Board provided that no such action shall permit any part of the
assets of the Trust Fund, whether principal or income, to revert to the Company or to be used for or diverted to purposes other than for the exclusive benefit of Participants and their Beneficiaries until all liabilities, fixed or contingent, under
the Plan with respect to such Participants and Beneficiaries shall have been satisfied in full. 
  

	 	11.3	 NOTICE OF TERMINATION 

In the event that the Company determines to amend or discontinue the Plan, in whole or in part, the Company will give the Plan
Administrator and the Trustee at least one month’s prior written notice thereof. 
  

	 	11.4	 TERMINATION OF TRUST 

If the Plan is terminated, all of the Participants’ Total Accounts shall be nonforfeitable. The Trust Fund shall be
revalued as of the date the remaining assets are to be distributed, and the then current value of all Total Accounts shall be distributed in the manner described in Section 7. 

If another defined contribution plan (other than an employee stock ownership plan as defined in Section 4975(e)(7) of the
Code) is established or maintained (within the meaning of Section 401(k)(10)(A)(i) of the Code) distribution shall not be made until a Participant’s actual separation from service (within the meaning of Section 401(k)(2)(B) of the
Code). 
 Until all Total Accounts are fully distributed, any remaining Total Accounts held in the Trust Fund shall continue
to be adjusted in accordance with the provisions of Section 5. 

  
 - 61 - 

	 	11.5	 DISCONTINUANCE OF CONTRIBUTIONS 

The Company may at any time, by written resolution of the Board, completely discontinue its participation in and contributions
under the Plan. If the Company completely discontinues its contributions under the Plan, either by resolution of the Board or for any other reason, and such discontinuance is deemed a partial termination of the Plan within the meaning of
Section 411(d)(3) of the Code, the amounts credited to the Total Accounts of all affected Participants (other than Participants who, in connection with the discontinuance of Company Matching Contributions, transfer employment to a Company which
continues to contribute under the Plan) shall be nonforfeitable. 
  

	 	11.6	 MERGER OF PLANS 

Subject to the provisions of this Section, the Plan may be amended to provide for the merger of the Plan with, or a transfer
of all or part of its assets to, any other qualified plan within the meaning of Section 401(a) of the Code. In the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, each Participant in this Plan
shall be entitled to a benefit immediately after such merger, consolidation, or transfer equal to or greater than the benefit the Participant would have received if the Plan had been terminated immediately prior to the merger, consolidation, or
transfer. 

  
 - 62 - 

 SECTION 12 

ESOP PROVISIONS 
  

	 	12.1	 ESTABLISHMENT OF ESOP 

An employee stock ownership plan (“ESOP”) that is intended to meet the requirements of Section 4975(e)(7) of
the Code shall be established as a component of the Plan. Such component of the Plan is designed to invest primarily in Company Stock and consists of the ESOP Accounts of all Participants. This component of the Plan is segregated as a stock bonus
plan as defined in Treasury Regulation Section 1.401-1(b)(1)(iii). This Section 12 is effective notwithstanding any other provision of the Plan to the contrary or to the extent that the implementation of any such other provision of the
Plan would violate or otherwise limit the effect of this Section 12. 
  

	 	12.2	 ESOP ACCOUNT 

The ESOP Account of each Participant shall be credited and debited periodically during each Plan Year in which the ESOP is
maintained with any additions or reductions in the number of shares of Company Stock held for such Participant in the Plan due to the reallocation of the investment of the Participant’s Total Account, and with any stock and cash dividends paid
on Company Stock held in the Participant’s ESOP Account. The Trustee shall establish an ESOP Account in the name of each Participant and shall thereafter maintain a record thereof. A Participant’s ESOP Account shall initially consist of
amounts that are allocated to the various accounts that are established in the Plan that are invested in Company Stock, and thereafter shall be credited with all contributions that the Participant has elected to invest in Company Stock. 

 

	 	12.3	 INVESTMENT DIRECTION 

To the extent a Participant’s Total Account includes amounts originally allocated to an account subject to the
Participant’s investment direction under Section 5 or a similar provision of the Prior Plan or the TimkenSteel Corporation Latrobe Voluntary Investment Program, the Participant shall retain the right to direct investments subject to the
provisions of that Section of the Plan. 
  

	 	12.4	 PAYMENT OF DIVIDENDS 

  

	 	(a)	 If administratively feasible and approved by the Company, any cash dividends paid with respect to Company Stock in the ESOP as of the record date
shall be paid, at the election of the Participant (or his Beneficiary), to the Participant (or his Beneficiary), or to the Plan and reinvested in Company Stock. Dividends paid to a Participant (or his Beneficiary) in accordance with this election
shall be paid in a manner and in accordance with procedures 

  
 - 63 - 

	 	 
established by the Company (i) in cash directly to the Participant (or his Beneficiary), or (ii) to the Plan and subsequently distributed to the Participant (or his Beneficiary) in cash
no later than 90 days after the close of the Plan Year in which the dividends are paid to the Plan. Dividends described in this Section 12.4 will be paid to the Plan and reinvested in Company Stock with respect to any Participant (or
Beneficiary) who does not affirmatively elect to have such dividends paid to him. 

  

	 	(b)	 For purposes of this Section 12.4, “Participant” includes a Participant who is no longer employed by the Company but still has an
account in the Plan. 

  

	 	(c)	 This Section 12.4 is intended to comply with Section 404(k) of the Code and shall be interpreted accordingly. 

 

	 	12.5	 VOTING AND TENDER OF COMPANY STOCK 

Each Participant shall be entitled to direct the Trustee, in accordance with Section 14.3 of the Plan, as to the exercise
of any and all voting and tender rights attributable to Company Stock then allocated to the Participant’s ESOP Account. 
  

	 	12.6	 RIGHT TO RECEIVE A DISTRIBUTION OF COMPANY STOCK 

In accordance with Section 7.2 of the Plan, distribution of a Participant’s ESOP Account when permitted or required
under Section 7 may, at the option of the Participant, be made in full shares of Company Stock and cash for any fractional interests in shares of Company Stock. 
  

	 	12.7	 COMMENCEMENT OF DISTRIBUTIONS 

If a Participant or Beneficiary elects, distribution of the balance of a Participant’s ESOP Account will be made or will
commence not later than one year after the close of the Plan Year: 
  

	 	(a)	 in which the Participant separates from service by reason of retirement, attainment of age
70  1⁄2, Disability, or death, or 

  

	 	(b)	 which is the fifth Plan Year following the Plan Year in which the Participant otherwise separates from service, unless the Participant is
reemployed by the Company before distribution is required to begin under this clause. 

  

	 	12.8	 PUT OPTION 

  

	 	(a)	 At such times as Company Stock is not readily tradable on an established market at the time of distribution of a Participant’s ESOP Account,
the Company shall issue a put option to each Participant or Beneficiary receiving a distribution of Company Stock from the Plan. 

  
 - 64 - 

	 	 
The put option shall permit the Participant or Beneficiary to sell such Company Stock under a fair valuation formula during the sixty (60) consecutive day period following the date the
Company Stock was distributed to the Participant or Beneficiary, at which time the put option will temporarily lapse. Upon the close of the Plan Year in which such temporary lapse occurs, an independent appraiser (meeting requirements similar to the
requirements of the Treasury Regulations prescribed under Section 170(a)(1) of the Code) shall determine the value of the Company Stock, and the Trustee shall notify each Participant or Beneficiary who received a distribution who did not
exercise the initial put option prior to its temporary lapse in the preceding Plan Year of the revised value of the Company Stock. The time during which the put option may be exercised shall recommence on the date such notice of revaluation is given
and shall permanently terminate sixty (60) days thereafter. 

  

	 	(b)	 The Trustee may, in its discretion and with the consent of the Company, cause the Trust Fund to assume the rights and obligations of the Company at
the time the put option is exercised, insofar as the repurchase of Company Stock is concerned. The period during which the put option is exercisable shall not include any period during which the holder is unable to exercise such put option because
Company Stock is prohibited from honoring it by Federal and State law. The Company or the Trustee, as the case may be, must pay for Company Stock sold pursuant to a put option no less rapidly than under one of the following two methods, as
applicable: 

  

	 	(i)	 If a put option is exercised with respect to Company Stock distributed as part of a total distribution (that is, a distribution of a
Participant’s or Beneficiary’s Total Account balance within one taxable year), then payment shall be made in substantially equal periodic payments (not less frequently than annually) commencing within thirty (30) days for the date of
the exercise of the put option and over a period not exceeding five years, with interest payable at a reasonable rate (as determined by the Company) on any unpaid installment balance, with adequate security provided, and without penalty for any
prepayment of such installments. 

  

	 	(ii)	 If a put option is exercised with respect to Company Stock distributed as part of an installment distribution, then the payment for such Company
Stock shall be made in a lump sum no later than thirty (30) days after such Participant or Beneficiary exercises the put option. 

  
 - 65 - 

	 	12.9	 SHARE LEGEND 

Shares of Company Stock held in ESOP Accounts or distributed by the Trustee from ESOP Accounts may include such legend
restrictions on transferability as the Company may reasonably require in order to assure compliance with applicable Federal and State securities laws. 
  

	 	12.10	 DIVERSIFICATION 

Section 5.3 of the Plan provides that a Participant may elect effective on any business day of the year and upon
sufficient notice to the recordkeeper appointed by the Company to have his contributions (including any contributions held in the Company Stock Fund) invested in a proportion different from that previously selected, subject to the rules, procedures
and restrictions described in Section 5.1. This provision satisfies Section 401(a)(28) of the Code. 
  

	 	12.11	 LIMITATION ON PERIOD OF DISTRIBUTION 

Unless otherwise elected, the distribution of a Participant’s ESOP Account will be in substantially equal periodic
payments (not less frequently than annually) over a period not longer than the greater of (i) five years, or (ii) if the balance of the Participant’s ESOP Account is in excess of $1,015,000 (which amount may be adjusted periodically
by the Internal Revenue Service to reflect cost-of-living increases), five years plus one additional year (but not more than five additional years) for each $200,000 (which amount may be adjusted periodically by the Secretary of the Treasury to
reflect cost-of-living increases) or fraction thereof by which such balance exceeds $1,015,000 (as adjusted). 
  

	 	12.12	 OTHER PROVISIONS SUPERSEDED 

This Section 12 supersedes any other provision of the Plan solely to the extent that such other provision conflicts with
the terms of this Section 12 or is inconsistent with the treatment of the portion of the Plan so designated as an ESOP. 

  
 - 66 - 

 SECTION 13 

TIMKEN STOCK FUND 
  

	 	13.1	 GENERAL 

In addition to the investment options described in Section 5.1, an investment fund consisting primarily of common shares
of Timken (the “Timken Stock Fund”) shall be maintained in the Plan. Except for cash or cash equivalent investments determined by the Investment Committee to be required to facilitate Participant transactions out of the Timken Stock Fund,
the Timken Stock Fund shall be invested exclusively in Timken Stock. Any cash dividends paid with respect to Timken Stock shall be paid to the Plan and reinvested initially in the same investment options the Participant has selected pursuant to
Section 5.2, or, if the Participant has made no such elections, reinvested in any investment option or options, excluding the Timken Stock Fund, selected in a manner determined by the Investment Committee until such time as the Participant
selects investment options. 
 The Timken Stock Fund shall be a “frozen” fund initially holding the shares of
Timken Stock received from the Prior Plan in connection with the Spinoff. No Before-Tax Contributions, Catch-Up Contributions, Company Matching Contributions or Rollover Contributions may be invested in the Timken Stock Fund and a Participant may
not request a fund transfer to the Timken Stock Fund. A Participant may, however, request fund transfers from the Timken Stock Fund to any other investment option pursuant to the rules for fund transfers described in Section 5.5. 

The Timken Stock Fund is maintained in recognition of the fact that Transferred Participants may have a personal and
professional dedication to, and history of investment in, Timken, and that offering the Timken Stock Fund as an investment option provides Transferred Participants with the ability to preserve their personal affiliation with Timken through
investment if they so choose. 
 In light of the historical relationship between the Company and Timken, and the
availability of other investment options under the Plan through which Participants may construct a diversified portfolio of investments consistent with their individual desired level of risk and return, the Company intends that the Timken Stock Fund
be maintained as a design feature of the Plan, without regard to the investment return of the Timken Stock Fund in comparison to any performance measure that might be appropriate for any other investment option. No Plan fiduciary shall have the
authority to direct the sale of Timken Stock or to remove the Timken Stock Fund as an investment option, provided that the Investment Committee may remove the 

  
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Timken Stock Fund as an investment option and sell the remaining Timken Stock if the Investment Committee determines that (i) the level of continued investment by Participants in the Timken
Stock Fund is not sufficient to reasonably justify the administrative and recordkeeping expense of maintaining the fund, or (ii) no prudent investor would choose to invest any assets in Timken Stock, even as part of a diversified portfolio
based on the investor’s individual risk and return preferences and the Plan’s available investment options. 
  

	 	13.2	 VOTING AND TENDER OF TIMKEN STOCK  

Each Participant, each Beneficiary who has succeeded to the interest of a Participant and each Alternate Payee (“Eligible
Participants and Beneficiaries”) in this Plan shall have the authority to direct the exercise of voting rights as to whole shares of Timken Stock for the benefit of the Eligible Participant or Beneficiary as of the most current Valuation Date
available preceding the record date for the shareholders’ meeting. The Trustee shall furnish Timken’s Annual Report, Notice of Annual Meeting, Proxy Statement, Proxy Card and other shareholder information to each Eligible Participant and
Beneficiary and shall solicit each Eligible Participant’s and Beneficiary’s vote; the Company reserves the option to retain the Trustee to perform these services. All other shares of Timken Stock held in the Trust Fund, including shares
not voted by Eligible Participants or Beneficiaries or not yet allocated to Eligible Participants or Beneficiaries, are to be voted by the Trustee in conformity with applicable law, taking into account votes directed by Eligible Participants and
Beneficiaries. 

  
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 SECTION 14 

MISCELLANEOUS PROVISIONS 
  

	 	14.1	 GENDER 

Whenever the word “he” or “his” or “him” is used in the Plan, such word is intended to embrace
within its purview the word “she” or “her”, as may be appropriate. 
  

	 	14.2	 INVESTMENTS AND EXPENSES 

All Trustees’ fees, investment manager’s fees and administrative costs shall be borne by the Company, except for
investment manager fees charged by the Investment Options shall be borne by the Plan. 
  

	 	14.3	 VOTING AND TENDER OF COMPANY STOCK 

Eligible Participants and Beneficiaries (as defined in Section 13.2) in this Plan shall have the authority to direct the
exercise of voting rights as to whole shares of Company Stock for the benefit of the Eligible Participant or Beneficiary as of the most current Valuation Date available preceding the record date for the shareholders’ meeting. The Trustee shall
furnish the Company’s Annual Report, Notice of Annual Meeting, Proxy Statement, Proxy Card and other shareholder information to each Eligible Participant and Beneficiary and shall solicit each Eligible Participant’s and Beneficiary’s
vote; the Company reserves the option to retain the Trustee to perform these services. All other shares of Company Stock held in the Trust Fund, including shares not voted by Eligible Participants or Beneficiaries or not yet allocated to Eligible
Participants or Beneficiaries, are to be voted by the Trustee in conformity with applicable law, taking into account votes directed by Eligible Participants and Beneficiaries. 

 

	 	14.4	 STATEMENTS OF ACCOUNTS 

The Plan Administrator shall cause to be furnished to each Participant on a quarterly basis, but no less frequently than once
in each Plan Year, a statement showing the value of his Total Account invested in each investment Fund and the Vested portion of his Total Account. 
  

	 	14.5	 NONALIENABILlTY OF BENEFITS 

Participants and Beneficiaries are entitled to all the benefits specifically set out under the terms of the Plan, but neither
those benefits nor any of the property rights in the Plan are assignable or distributable to any creditor or other claimant of a Participant or Beneficiary. A Participant will not have the right to anticipate, assign, pledge, accelerate or in any
way dispose of or encumber any of the monies or benefits or other property that may be payable or become payable to such 

  
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Participant or his Beneficiary provided, however, the Plan Administrator shall recognize and comply with a valid Qualified Domestic Relations Order as defined in Section 414(p) of the Code.
The first sentence of this Section 14.5 shall not apply with respect to any offset to a Participant’s benefits expressly provided for in a judgment, order, decree or settlement agreement described in Section 401(a)(13)(C) of the Code.

  

	 	14.6	 ACQUISITIONS AND DIVESTITURES 

  

	 	(a)	 If the Company or a wholly-owned domestic subsidiary of the Company shall acquire either all or substantially all of the assets or shares of stock
of any other company or business in the United States, and if such other company or business becomes a Participating Subsidiary hereunder, the Company, in the discretion of the Board of Directors, or such Plan Administrator as it may appoint, may
authorize that service with such acquired company or business shall be taken into account for any period prior to the date on which such other company or business was acquired. 

 

	 	(b)	 If the Company shall sell either all or substantially all of the assets or shares of stock of any subsidiary, division or unit of the Company, or
if the Company shall sell either all or substantially all of the shares of stock of any joint venture in which the Company is a partner, the Company, in the discretion of the Board, or such Plan Administrator as it may appoint, may direct any or all
of the following actions be taken with respect to Participants employed on the date of sale by such subsidiary, division, unit or joint venture: 

  

	 	(i)	 The Participants’ entire interest in all Funds shall be transferred to the Money Market Fund pending distribution of all or a portion of such
interest to such Participants or to a successor trustee under another qualified plan and trust to which such Participants shall participate; 

  

	 	(ii)	 Any outstanding loan balance shall be repaid in full or shall be deemed a withdrawal under Section 8.4 of the Plan; 

 

	 	(iii)	 Any such other action which the Board, or such officer as it may appoint, deems necessary or advisable under the circumstances, provided that such
action shall be applied in a uniform and nondiscriminatory manner to all Participants of such Participating Subsidiary. 

  
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	 	14.7	 CHANGE IN OPERATIONS 

In the event the operations of any subsidiary, division, unit or plant of the Company changes due to the occurrence of any
event which the Board, or such Plan Administrator as it may appoint, deems to result in a layoff or termination of employment of any Participant employed by such subsidiary, division, unit or plant, the Board, or such Plan Administrator as it may
appoint, may direct any action be taken with respect to those Participants who are laid off or whose employment has been terminated as a result of such change in operations, which the Board, or such Plan Administrator as it may appoint, deems
necessary or advisable under the circumstances, provided that such action shall be applied in a uniform and nondiscriminatory manner to all Participants similarly situated. 
  

	 	14.8	 LIMITATION ON DISTRIBUTIONS 

Notwithstanding any provision of this Plan regarding payment to Participants, Beneficiaries or any other person, the Plan
Administrator may withhold payment to any person if the Plan Administrator determines that such payment may expose the Plan to conflicting claims for payment. As a condition for any payments, the Plan Administrator may require such consent,
representations, releases, waivers or other information, as it deems appropriate. To the extent required by law, the Plan Administrator shall comply with the terms of any judgment or other judicial decree, order, settlement or agreement including,
but not limited to, a Qualified Domestic Relations Order as defined in Section 414(p) of the Code. 
  

	 	14.9	 LIMITATION ON REVERSION OF CONTRIBUTIONS 

Except as provided in subsections (a) through (c) below, Company Matching Contributions made under the Plan will be
held for the exclusive benefit of Participants or Beneficiaries and may not revert to the Company. 
  

	 	(a)	 A contribution made by the Company under a mistake of fact may be returned to the Company within one (1) year after it is contributed to the
Plan. 

  

	 	(b)	 A contribution may be returned to the Company, if the Plan does not initially qualify under Sections 401(a) and 501(a) of the Code, within one
(1) year after the date the Plan is denied qualification. 

  

	 	(c)	 A contribution that is not deductible under Section 404 of the Code shall be returned, to the extent the deduction is disallowed, to the
Company within one (1) year after the disallowance. 

  
 - 71 - 

 The maximum contribution that may be returned to the Company will not exceed the
amount actually contributed to the Plan, or the value of such contribution on the date it is returned to the Company, if less. 
  

	 	14.10	 VOLUNTARY PLAN 

The Plan is purely voluntary on the part of the Company and neither the establishment of the Plan nor any Plan amendment nor
the creation of any fund or account, nor the payment of any benefits will be construed as giving any Employee or any other person a legal or equitable right against the Company, any Affiliate, any trustee, any funding agent or the Plan Administrator
unless specifically provided for in this Plan or conferred by affirmative action of the Plan Administrator or the Company according to the terms and provisions of this Plan. Such actions will not be construed as giving any Employee or Participant
the right to be retained in the service of any Company or Affiliated Company. All Employees and Participants will remain subject to discharge to the same extent as though this Plan had not been established. The Trust Fund shall be the sole source of
all distributions or other benefits provided for in the Plan and the Company shall not be liable or responsible therefor. 
  

	 	14.11	 LIMITATION OF THIRD PARTY RIGHTS 

Nothing expressed or implied in the Plan is intended or will be construed to confer upon or give to any person, firm or
association other than the Company, Participants and Beneficiaries, and their successors in interest, any right, remedy or claim under or by reason of this Plan, except as otherwise provided in Section 14.5. 

 

	 	14.12	 INVALID PROVISIONS 

In case any provision of this Plan is held illegal or invalid for any reason, the illegality or invalidity will not affect the
remaining parts of the Plan. The Plan will be construed and enforced as if the illegal and invalid provisions had never been included. 
  

	 	14.13	 ONE PLAN 

This Plan may be executed in any number of counterparts, each of which will be deemed an original and the counterparts will
constitute one and the same instrument and may be sufficiently evidenced by any one counterpart. 

  
 - 72 - 

	 	14.14	 GOVERNING LAW 

The Plan will be governed by and construed according to the federal laws governing employee benefit plans qualified under the
Code and according to the laws of the state of Ohio where such laws are not in conflict with the federal laws. 
  

	 	14.15	 TRADE CONTROL POLICY 

Commencing with transactions with an effective date of October 1, 2006, Plan Participants who exchange any amount out of
a mutual fund or a similar type of product or fund under the Plan will be prohibited from purchasing shares of the same mutual fund through an exchange transaction for 30 calendar days (the “Trade Control Policy”). 

The Trade Control Policy will not apply to the following: 

 

	 	(a)	 money-market mutual funds. 

  

	 	(b)	 actively managed separate accounts or lifestyle portfolios – mutual fund companies and other investment managers may impose additional trade
control policies as a requirement for the Plan to include their products in the Plan lineup, or as an underlying security in an actively managed separate account or lifestyle type of portfolio. 

 

	 	(c)	 purchase transactions: 

  

	 	(i)	 contribution processing, including Participant payroll, Company Matching Contributions, loan repayments, and rollovers. 

 

	 	(ii)	 fund dividends or capital gain distributions. 

  

	 	(d)	 redemption transactions: 

  

	 	(i)	 distributions, loans, and in-service withdrawals from the Plan. 

 

	 	(ii)	 Plan termination at the discretion and direction of the Plan sponsor or other fiduciary. 

 

	 	(iii)	 payment of fund or Account fees. 

  

	 	(e)	 conversions of shares from one class to another in the same fund. 

 

	 	(f)	 re-registration of shares. 

The Trade Control Policy will also not apply to Company Stock or Timken Stock because it is not a mutual fund or similar type
of product or fund to which this policy applies. 

  
 - 73 - 

 Transactions initiated by a retirement plan’s service provider or a similar
program will be exempt from the Trade Control Policy. Reallocation and rebalancing transactions initiated by Plan Participants (whether the Participant is acting alone or utilizing an investment advisor, investment advisory service or other Plan
feature) will not be exempt from the Trade Control Policy. 
  

	 	14.16	 PAYMENTS IN EVENT OF INCOMPETENCE 

If the Plan Administrator finds that any Participant or such person’s Beneficiary to whom a benefit is payable under this
Plan is unable to care for his affairs because of physical, mental or legal incompetence, the Plan Administrator, in its discretion, may cause any payment due to such Participant or Beneficiary from the Trust Fund, for which prior claim has not been
made by a duly qualified guardian or other legal representative, to be paid to the person deemed by the Plan Administrator to be maintaining or responsible for the maintenance of such Participant or Beneficiary. Any such payment shall be deemed for
the account of such Participant or Beneficiary and shall constitute a complete discharge of any liability therefor under the Plan. If the Beneficiary contemplated by this Section 14.16 is a minor, the benefit may be paid, at the direction of
the person so determined to be maintaining or responsible for the maintenance of such Beneficiary, to a person or entity acting as a custodian under the applicable state law version of the Uniform Transfer to Minors Act or similar legislation. 

  
 - 74 - 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed
by its duly authorized representative effective as of the 30th day of June, 2014. 
  
  

											
	Date:	 	 June 30, 2014
	 		 	By:	 	 /s/ Donald L. Walker

		 		 		 		 	Name:	 	Donald L. Walker
		 		 		 		 	Title:	 	Executive Vice President –
Human Resources and
Organizational Advancement

  
 - 75 -fccc_ex101.htm

EXHIBIT 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”) dated June 27, 2014 (the “Effective Date”), by and between FCCC, Inc., a Connecticut corporation (the “Company”), and the persons listed on the signature page(s) of this Agreement (the “Purchasers”).

 

INTRODUCTION

 

WHEREAS, the Company wishes to sell and issue to the Purchasers and each of the Purchasers wishes to purchase form the Company, 1,900,000 shares of the Company’s common stock, no par value, subject to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	SECTION 1. SALE OF COMMON STOCK

 

1.1 AUTHORIZATION. The Company has authorized the sale and issuance to the Purchasers in the amounts set forth opposite their respective names on Exhibit A hereto of an aggregate of 1,900,000 shares of Common Stock (the “Securities”).

 

1.2 SALE AND ISSUANCE OF THE SECURITIES. Subject to the terms and conditions set forth in this Agreement, the Company will issue and sell to the Purchasers and the Purchasers will buy from the Company the Securities at a per share purchase price of $0.20.

 

1.3 ESCROW. On or before the Effective Date, the Purchasers shall deposit the aggregate sum of $380,000 (the “Purchase Price”) by wire transfer of immediately available funds into an account designated by First American Title Insurance Company (“Escrow Agent”) to be held and distributed in accordance with the terms of this Agreement and the form of Escrow Agreement attached to this Agreement as Exhibit B (the “Escrow Agreement”).

 

	SECTION 2. CLOSING DATE; DELIVERY.

 

2.1 CLOSING DATE. The Closing, of the purchase and sale of the Securities shall take place at the offices of Faegre Baker Daniels LLP, 2200 Wells Fargo Center, 90 South Seventh Street in the city of Minneapolis, Hennepin County, Minnesota, at 9:00 a.m. local time, on the first business day upon which all of the conditions of Section 5 and Section 6 have been satisfied (or otherwise waived in accordance with this Agreement) or at such other location, date, and time as may be agreed upon between the Purchasers and the Company (such closing being called the “Closing” and such date and time being called the “Closing Date”) but in any event not later than July 15, 2014 so long as all of the conditions of Section 5 and Section 6 have been satisfied (or otherwise waived in accordance with this Agreement).

 

2.2 DELIVERY AND PAYMENT. At the Closing, the Company will deliver, or cause its transfer agent and registrar to deliver, to the Purchasers a certificate or certificates with appropriate restrictive legends, registered in each Purchaser’s name, representing the number of Securities to be purchased by each Purchaser at the Closing, against payment by the Escrow Agent of the Purchase Price , by (i) a certified or official bank check payable to the Company, (ii) by wire transfer per the Company’s instructions, or (iii) by any combination of (i) and (ii) above. The Company shall not be obligated to issue and sell any Securities unless and until it receives the entirety of the Purchase Price.

 

  

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	SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to the Purchasers as follows:

 

3.1 ORGANIZATION AND STANDING; CERTIFICATE OF INCORPORATION AND BYLAWS. The Company is a corporation duly organized and validly existing in good standing under the laws of the State of Connecticut. The Company has requisite corporate power and authority to own its assets and to carry on its business as now conducted and proposed to be conducted and is duly qualified as a foreign corporation in each jurisdiction in which such qualification is necessary. Copies of the Certificate of Incorporation and Bylaws of the Company have been provided to Purchasers. Said copies remain true, correct and complete and reflect all amendments as of the Closing.

 

3.2 CORPORATE POWER. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement.

 

3.3 SUBSIDIARIES. The Company has no subsidiaries or affiliated companies and does not otherwise own or control, directly or indirectly, any equity interest in any corporation, partnership, trust, joint venture, limited liability company, association or other business entity. The Company is not a participant in any joint venture, partnership or similar arrangement.

 

3.4 CAPITALIZATION. The authorized capital stock in the Company consists of 22,000,000 shares of Common Stock, no par value (“Common Stock”), of which 1,561,022 shares are and will be issued and outstanding immediately prior to the Closing. There are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any shares of Common Stock, or any securities convertible into or exchangeable for shares of Common Stock. No person, other than the Purchasers pursuant to this Agreement, has any right to purchase any portion of the Securities covered by this Agreement. All issued and outstanding shares of Common Stock of the Company have been duly authorized and validly issued, are fully paid and nonassessable, and have been offered, issued, sold and delivered by the Company in compliance with applicable federal and state securities laws. The Company holds no Common Stock in its treasury.

 

3.5 AUTHORIZATION. All corporate action on the part of the Company and its board of directors and all action on the part of the officers of the Company necessary for the authorization, execution, delivery and performance of this Agreement by the Company, the authorization, sale, issuance and delivery of the Securities and the performance of the Company’s obligations under this Agreement has been taken or will be taken prior to the Closing. No action of the Company’s stockholders is necessary for any of the foregoing actions. This Agreement constitutes the valid and binding obligation of the Company, enforceable in accordance with its terms.

 

3.6 PRIVATE OFFERING; VALID ISSUANCE.

 

(a) The Securities, when issued in compliance with the provisions of this Agreement, will be validly issued, fully paid and nonassessable and will be free of any liens or encumbrances other than restrictions under pertinent federal and state securities laws, rules and regulations.

 

(b) The Company has taken all necessary action on its part to ensure that, subject to the accuracy of the Purchasers’ representations in Section 4 hereof, the offer, sale and issuance of the Securities will constitute transactions exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”) and the Securities will be issued in compliance with all applicable federal and state securities laws.

 

  

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(c) No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) (a “Disqualification Event”) promulgated under the Securities Act, is applicable to the Company or, to the Company’s knowledge, any person listed in the first paragraph of Rule 506(d)(1), except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.

 

3.7 NO REGISTRATION, VOTING OR LIQUIDATION RIGHTS. The Company is not under any contractual obligation to register under the Securities Act any of its outstanding securities or any of its securities which may hereafter be issued. To the Company’s knowledge, no stockholder of the Company is party to any agreement with any party other than one or more Purchasers relating to the voting of capital shares of the Company. The Company is not under any contractual obligation to wind-up, liquidate or dissolve whether or not conditioned upon the occurrence of certain events, lapse of certain periods, or upon notice or election by one or more persons (other than by its stockholders in accordance with the requirements of applicable law) and any such past obligations.

 

3.8 GOVERNMENTAL CONSENT, ETC. No consent, approval order or authorization of or registration, qualification, designation, declaration or filing with any governmental authority on the part of the Company (except the filing of a Schedule 14f-1 with the U.S. Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules and regulations of the SEC promulgated thereunder) is required in connection with the valid execution and delivery of this Agreement or the offer, sale or issuance of the Securities or other transactions contemplated hereby, except filings pursuant to Regulation D of the Securities Act and applicable state securities laws, which filings, if required, will be accomplished by the Company, at its expense, in a timely manner.

 

3.9 AGREEMENTS; ACTIONS.

 

(a) All material definitive agreements, whether oral or written, to which the Company is a party have been filed as an exhibit to the Company’s filings with the SEC (such material definitive agreements, collectively, the “Company Contracts”).

 

(b) The Company has in all material respects performed all obligations required to be performed by it under the Company Contracts and is not in receipt of any claim of default under any Company Contract. The Company has no present expectation or intention of not fully performing any material obligation pursuant to any Company Contract; and the Company has no knowledge of any breach or anticipated breach by any other party to any Company Contract.

 

(c) Except for (x) $6,500 in fees for professional services payable to accountants with regard to the Company’s audit in connection with the Form 10-K and preparation and filing of tax returns, both for the fiscal year ending March 31, 2014 and (y) fees for professional services due to the Company’s counsel in respect of the transactions contemplated hereunder, there are no agreements, understandings, instruments, contracts or proposed transactions to which the Company is a party or by which it is bound that involve (i) obligations (contingent or otherwise) of, or payments to, the Company in excess of $5,000, (ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company, (iii) the grant of rights to manufacture, produce, assemble, license, market, or sell products to any other person that limit the Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its products, (iv) indemnification by the Company, or (v) any restrictions on competition or solicitation of employees.

 

(d) The Company has not (i) since the distribution declared on July 10, 2009 and paid on August 7, 2009, declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness for money borrowed or incurred any other material liabilities, (iii) made any loans or advances to any person, other than ordinary advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights. For the purposes of (a) and (b) of this Subsection 3.9(d), all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same person (including persons the Company has reason to believe are affiliated with each other) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsection.

 

  

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(e) The Company is not a guarantor or indemnitor of any indebtedness of any other person.

 

3.10 CERTAIN TRANSACTIONS. Except as disclosed in the Company’s filings with the SEC, and other than pursuant to this Agreement, no officer, director or employee of the Company, or any member of the immediate family of any such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the stock of which is beneficially owned by any of such persons) (collectively, the “Company Insiders”), has any agreement with the Company (other than customary at-will employment arrangements) or any interest in any property, real, personal or mixed, tangible or intangible, used in or pertaining to the business of the Company (other than ownership of capital stock of the Company). The Company is not indebted to any Company Insider (except for amounts due as normal salaries and bonuses and in reimbursement of ordinary business expenses) and no Company Insider is indebted to the Company except for cash advances for ordinary business expenses). None of the Company Insiders has any direct or indirect interest in any person from whom or to whom the Company leases any property, or in any other person with whom the Company transacts business of any nature. For purposes of this Section 3.10, the members of the immediate family of an officer, director or employee shall consist of the spouse, parents, children and siblings of such officer, director or employee. Notwithstanding the foregoing, the Purchasers acknowledge that the Company leases its office at 200 Connecticut Avenue, Norwalk, Connecticut, from Lev & Berlin, P.C., which the Company’s Secretary, Duane L. Berlin, controls.

 

3.11 PERMITS. The Company has all franchises, permits, licenses, and any similar authority necessary for the conduct of its business as now being conducted by it. The Company is not in default under any of such franchises, permits, licenses or other similar authority.

 

3.12 COMPLIANCE WITH OTHER INSTRUMENTS. The Company is not in violation of (i) of any provisions of its Certificate of Incorporation or Bylaws, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or mortgage, or (iv) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound, or (v) of any provision of federal or state statute, rule or regulation applicable to the Company. The execution, delivery and performance of and compliance with this Agreement, and the consummation of the transactions contemplated hereby, including the issuance of the Securities, have not resulted and will not result in any violation of, or conflict with, or constitute a default under any such term or provision, or result in the creation of, any mortgage, pledge, lien, encumbrance or charge upon any of the assets of the Company; and there is no such violation or default or event which, with the passage of time or giving of notice or both, would constitute a violation or default which would adversely affect the business of the Company or any of its assets.

 

3.13 SEC REPORTS. The Company’s Common Stock has been registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Company is subject to the periodic reporting requirements of Section 13 of the Exchange Act.

 

(a) Since July 11, 2003, the Company has timely filed all forms, reports and documents required to be filed with the SEC by applicable law including, without limitation, the periodic reporting requirements of Section13 of the Exchange Act. All such required forms, reports and documents (including the financial statements, exhibits and schedules thereto and those documents that the Company may file subsequent to the date hereof) are collectively referred to herein as the “Company SEC Filings.” As of their respective dates, the Company SEC Filings (i) were prepared in accordance with the requirements of the Securities Act or Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such Company SEC Filings in all material respects, and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the Closing, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

  

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(b) Each of the financial statements (including, in each case, any related notes thereto) contained in the Company SEC Filings, as of their respective dates, (i) complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto, (ii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q under the Exchange Act) and (iii) fairly presented the financial position of the Company at the respective dates thereof and the consolidated results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which were not, or are not expected to be, material in amount.

 

3.14 TRADING MATTERS. At the date hereof and immediately prior to the Closing (i) the Company’s Common Stock is and will be traded on the over-the-counter market and quoted on each of the OTC Bulletin Board, as presently administered by FINRA (the “OTCBB”), and the OTCQB marketplace, as presently administered by OTC Markets Group, Inc. (the “OTCQB”), (ii) the Company has and will have not less than three registered market makers with respect to the OTCQB who post publicly active bid and ask prices, (iii) the Company has and shall have performed or satisfied all of its undertakings to, and all of its obligations and requirements with, the SEC in all material respects, (iv) the Company has not taken, and shall not have taken, any action that would preclude, or otherwise impair , the inclusion of the Company’s Common Stock for quotation on the OTCBB and OTCQB, (v) no market maker has communicated to the Company any indication that it will cease activity with respect to the Company’s Common Stock, and (vi) the Company does not have any reasonable basis to believe that the Company’s Common Stock is or will be the subject of trading symbol denotation, termination of quotation or hearings or any similar process related thereto.

 

3.15 NOT AN INVESTMENT COMPANY. The Company is not, and as a result of the sale of the Securities to the Purchasers will not be, required to register under the U.S. Investment Company Act of 1940, as amended.

 

3.16 DWAC ELIGIBLE. The Company’s Common Stock is eligible at the Depository Trust Company (“DTC”) for full services pursuant to DTC’s operational arrangements, including without limitation transfer through DTC’s Deposit Withdrawal at Custodian (“DWAC”) system. The Company has been approved (without revocation) by DTC’s underwriting department. The Company’s transfer agent and registrar is approved as an agent in DTC’s Fast Automated Securities Transfer Program. The Securities are otherwise eligible for delivery via DWAC and the Company’ s transfer agent and registrar does not have a policy prohibiting or limiting delivery of the Securities via DWAC.

 

3.17 LITIGATION. There is neither pending nor threatened any action, suit, proceeding or claim, whether or not purportedly on behalf of the Company, to which the Company or any director, officer or employee of the Company is or may be named as a party or to which the Company’s, or any such person’s property is or may be subject. To the best of the Company’s knowledge, there is no basis for any such action, suit, proceeding or claim, in which an unfavorable outcome, ruling or finding in any such matter or for all such matters, taken as a whole, might have a material adverse effect on the condition, financial or otherwise, operations or prospects of the Company. The Company has no knowledge of any unasserted claim, the assertion of which is likely and which, if asserted, will seek damages, an injunction or other legal, equitable, monetary or nonmonetary relief which if granted would have a material adverse effect on the condition, financial or otherwise, operations or prospects of the Company. The Company has no knowledge of any such action that may question the validity of this Agreement or the right of the Company to enter into it, or to consummate the transactions contemplated by this Agreement. There is no action, suit, proceeding or investigation by the Company pending or which the Company intends to initiate.

 

  

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3.18 ILLEGAL OR UNAUTHORIZED PAYMENTS; POLITICAL CONTRIBUTIONS. Neither the Company nor any of its officers, directors, employees, agents or other representatives, or any other business entity or enterprise with which the Company is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (a) as a kickback or bribe to any person or (b) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the Company.

 

3.19 FINANCIAL STATEMENTS. The Balance Sheets of the Company as of March 31, 2013 audited by Braver, LLP and as of March 31, 2014 audited by Marcum, LLP , and the related statements of operations, stockholders’ equity and cash flows for each of the fiscal years then ended, including related notes and schedules (the “Financial Statements”) are true and complete in all material respects and fairly present in all material respects the financial condition and results of operations of the Company as at said dates and for the periods then ended. The Financial Statements have been prepared in accordance with generally accepted accounting principles, (GAAP), consistently applied. The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with GAAP.

 

3.20 BOOKS AND RECORDS. The books of account, minute books, stock record books, and other records of the Company, have been made available to Purchasers, have been properly kept and contain no inaccuracies except for inaccuracies that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company.

 

3.21 ABSENCE OF UNDISCLOSED LIABILITIES. The Financial Statements make full and adequate provision for all material obligations, liabilities and commitments (fixed and contingent) of the Company as of the dates thereof, and the Company has no material obligations, liabilities or commitments (fixed or contingent) which were required to be set forth or reserved in the Financial Statements or notes thereto in accordance with GAAP and were not so set forth or reserved.

 

3.22 ABSENCE OF CERTAIN CHANGES OR EVENTS. Since the date of the balance sheet included in the most recent Financial Statements filed with the SEC (the “Latest Balance Sheet Date”), the Company has:

 

(a) conducted its business only in the ordinary course;

 

(b) not waived or compromised any valuable right or material debt owed to it;

 

(c) not agreed, initiated or received notice of any material change to any contract or agreement by which the Company or any of its assets is or may be bound or subject;

 

(d) not suffered any material adverse change in its financial condition or results of operations;

 

(e) not incurred any material obligation, liability or commitment (fixed or contingent), except trade obligations in the ordinary course of business;

 

(f) not declared , set aside or paid any distribution in respect of any of the Company’s capital stock, or made any direct or indirect redemption, purchase, or other acquisition of any of such stock; and

 

(g) not sold, transferred or leased any of its assets or entered into any transaction other than in the ordinary course of business, except this Agreement.

 

  

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3.23 TAX MATTERS.

 

(a) To the Company’s knowledge: (i) the Company has timely filed all returns, declarations, reports, estimates, information returns, and statements, including any schedules and amendments to such documents (“Company Returns”), required to be filed or sent by it in respect of any Taxes or required to be filed or sent by it by any taxing authority having jurisdiction; (ii) all such Company Returns are complete and accurate in all material respects; (iii) the Company has timely and properly paid all Taxes required to be paid by it; (iv) the Company has established on the Latest Balance Sheet Date, in accordance with GAAP, reserves that are adequate for the payment of any Taxes not yet due and payable; and (v) the Company has complied with all applicable laws, rules, and regulations relating to the collection or withholding of Taxes from third parties, including without limitation employees, and the payment thereof (including withholding of Taxes under Internal Revenue Code of 1986 (“Code”) Sections 1441 and 1442).

 

(b) For all purposes of this Agreement, the terms “Tax” and “Taxes” shall mean any federal, state, local or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, property or windfall profits taxes, environmental taxes, customs duties, capital stock, franchise, employees’ income withholding, foreign or domestic withholding, social security, unemployment, disability, workers’ compensation, employment-related insurance, real property, personal property, sales, use, transfer, value added, alternative or add-on minimum or other governmental tax, fee, assessment or charge of any kind whatsoever including any interest, penalties or additions to any Tax or additional amounts in respect of the foregoing.

 

(c) There are no liens for Taxes upon any assets of the Company, except liens for Taxes not yet due.

 

(d) No deficiency for any Taxes has been proposed, asserted or assessed against the Company that has not been resolved and paid in full. No waiver, extension or comparable consent given by the Company regarding the application of the statute of limitations or time to file any Tax Return with respect to any Taxes or Returns is outstanding, nor is any request for any such waiver, extension or consent pending. There has been no Tax audit or other administrative proceeding or court proceeding with regard to any Taxes or Company Returns, nor is any such Tax audit or other proceeding pending, nor has there been any notice to the Company by any Taxing authority regarding any such Tax audit or other proceeding, or, to the knowledge of the Company, is any such Tax audit or other proceeding threatened with regard to any Taxes or Company Returns. The Company does not expect the assessment of any additional Taxes of the Company for any period prior to the date hereof and has no knowledge of any unresolved questions, claims or disputes concerning the liability for Taxes of the Company that would exceed the estimated reserves established on its books and records.

 

(e) At the Closing, (i) the Company will not be liable for taxes of any other person nor will it be under any contractual obligation to indemnify any person with respect to taxes, (ii) the Company will not be a party to any tax sharing agreement or any other agreement providing for payments by the Company with respect to taxes (iii) the Company will not be party to any joint venture, partnership or other arrangement or contract that could be treated as a partnership for federal income tax purposes (iv) the Company will not have agreed and will not be required, as a result of a change in method of accounting or otherwise, to include any adjustment under Code Section 481 (or any corresponding provision of state, local or foreign law) in taxable income. The Company is not required to file any tax returns in jurisdictions other than Connecticut and no claim has been made by a tax authority in a jurisdiction where the Company does not currently file tax returns, that the Company is or may be subject to taxation by that jurisdiction, (v) there will be no advance rulings in respect of any tax pending or issued by any tax authority with respect to any taxes of the Company, (v) the Company will not be a party to any gain recognition agreements under Code Section 367 and the Treasury Regulations promulgated thereunder, and (vi) the Company will not be liable with respect to any indebtedness the interest of which is not deductible for applicable federal, foreign, state or local income tax purposes. The Company has not filed or been included in a combined, consolidated or unitary Tax return (or the substantial equivalent thereof) of any person.

 

  

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(f) The Company has neither been a “distributing corporation” nor been a “controlled corporation” (within the meaning of Code Section 355) in a distribution of stock qualifying for tax-free treatment under Code Section 355.

 

(g) The Company has not, for the five (5) year period preceding the Closing, been a United States real property holding corporation within the meaning of Code Section 897(c)(2).

 

(h) There have been made available to the Purchasers true and complete copies of all Company tax returns with respect to taxes based on net income; and any other Company tax returns requested by the Purchasers that may be relevant to the Company or its respective business, assets or operations for any and all taxable periods ending before the date hereof; and for any other taxable years that remain subject to audit or investigation by any tax authority.

 

(i) The Company is a corporation or association taxable as a corporation for federal income tax purposes.

 

3.24 BROKERS OR FINDERS. Neither the Purchasers nor the Company have nor will incur, directly or indirectly, as a result of any action taken by or on behalf of the Company, any liability for brokerage or finders’ fees in connection with the transactions contemplated hereby.

 

3.25 DISCLOSURE. Neither this Agreement, nor any other written statement furnished to the Purchasers or their counsel in connection with the offer and sale of the Securities contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein or herein not misleading in the light of the circumstances under which they were made. There is no fact which the Company has not disclosed to the Purchasers in writing that, to the knowledge of the Company, materially adversely affects, the ability of the Company to perform this Agreement or the other actions contemplated herein.

 

3.26 PROPERTY. The property and assets that the Company owns are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company’s ownership or use of such property or assets. The Company does not lease any personal or real property and does not own any real property, other than the office space that it leases at 200 Connecticut Avenue, Norwalk Connecticut.

 

3.27 INTELLECTUAL PROPERTY. The Company neither owns nor licenses any material intellectual property.

 

3.28 ENVIRONMENTAL MATTERS. The Company is and has been in compliance with all laws, regulations, or other applicable requirements relating to (a) releases or threatened release of a any pollutant, contaminant or toxic or hazardous material, substance or waste or petroleum or any fraction thereof (each a “Hazardous Substance”); (b) pollution or protection of employee health or safety, public health or the environment; or (c) the manufacture, handling, transport, use, treatment, storage, or disposal of Hazardous Substances (collectively, “Environmental Laws”). There has been no release or threatened release of Hazardous Substances, on, upon, into or from any site previously owned, leased or otherwise used by the Company. There have been no Hazardous Substances generated by the Company that have been disposed of or come to rest at any site that has been included in any published U.S. federal, state or local “superfund” site list or any other similar list of hazardous or toxic waste sites published by any governmental authority in the United States. There not been any underground storage tanks located on, no polychlorinated biphenyls (“PCBs”) or PCB-containing equipment have been used or stored on, and no hazardous waste as defined by the Resource Conservation and Recovery Act, as amended, has been stored on, any site previously owned or operated by the Company, except for the storage of hazardous waste in compliance with Environmental Laws.

 

  

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	SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS.

 

The Purchasers hereby severally represent and warrant to the Company as follows:

 

4.1 BUSINESS AND FINANCIAL EXPERIENCE. Each Purchaser is an accredited investor within the meaning of Rule 501 of Regulation D promulgated under the Securities Act and has such knowledge and experience in financial and business matters that each Purchaser is capable of evaluating the merits and risks of the Purchaser’s purchase of Securities as contemplated by this Agreement. Each Purchaser’s financial situation is such that he or it can afford to bear the economic risk of holding the Securities for an indefinite period of time and suffer complete loss of such Purchaser’s investment.

 

4.2 INVESTMENT INTENT; BLUE SKY. Each Purchaser is acquiring the Securities for investment for such Purchaser’s own account, not as a nominee or agent, and not with a view to or for resale in connection with any distribution thereof. Each Purchaser understands that the issuance of the Securities has not been, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the Purchaser’s true and correct state of domicile, upon which the Company may rely for the purpose of complying with applicable Blue Sky laws.

 

4.3 RULE 144. Each Purchaser acknowledges that the Securities must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from such registration is available. Each Purchaser is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including, among other things, cessation of status as a “shell company” as defined pursuant to the Securities Act, the existence of a public market for the shares, the availability of certain current public information about the Company, required holding periods, the sale being effected through a “broker’s transaction” or in a transaction directly with a “market maker”, and applicable volume limitations. The Company makes no representation as to the future availability of any exemption from such registration requirements.

 

4.4 RESTRICTIONS ON TRANSFER; RESTRICTIVE LEGENDS. Each Purchaser understands that the transfer of the Securities, if applicable, is restricted by applicable state and federal securities laws, and that the certificates representing the Securities will be imprinted with legends restricting transfer except in compliance therewith.

 

4.5 ACCESS TO COMPANY INFORMATION. Each Purchaser has had an opportunity to review and discuss the Company’s business, management and financial affairs with the Company’s management. Each Purchaser understands that such discussions, as well as any written information issued by the Company, were intended to describe the material aspects of the Company’s business. Each Purchaser has also had an opportunity to review all materials provided to them by the Company in connection with this Agreement and to ask questions of the officers of the Company.

 

4.6 AUTHORIZATION. All action on the part of each Purchaser, the Purchaser’s Board of Directors and stockholders or Trustees, as applicable, necessary for the authorization, execution, delivery and performance of this Agreement by the Purchaser, the purchase of and payment for the Securities, if applicable, and the performance of all of such Purchaser’s obligations under this Agreement has been taken or will be taken prior to the Closing. This Agreement, when executed and delivered by each Purchaser, shall constitute the valid and binding obligation of each Purchaser, enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies. The execution of this Agreement and consummation by Purchasers of the transactions on their part contemplated herein will not breach or violate any order or judgment of any court or governmental agency or any contract or agreement to which any of the Purchasers is a party or may be bound.

 

  

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4.7 BROKERS OR FINDERS. The Company has not and will not incur, directly or indirectly, as a result of any action taken by any Purchaser, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement or the transactions contemplated hereby. Without limiting generality of the foregoing, the Purchasers shall pay and be solely responsible for, and shall indemnify and hold the Company harmless firm and against any claim relating to, any fees, compensation or remuneration due or owing to the Breckenridge Group and/or Robert G. Oliver.

 

4.8 NO VIOLATIONS, ETC. None of the Purchasers has had a criminal conviction; been the subject of any regulatory enforcement action or any civil order or judgment involving financial fraud or wrongdoing; or been denied or had revoked any license or permit involving securities or any financial business.

 

	SECTION 5. CONDITIONS TO CLOSING OF THE PURCHASERS.

 

The Purchasers obligation to purchase the Securities is, unless waived in writing by the Purchasers, subject to the fulfillment as of the Closing Date of the following conditions:

 

5.1 REPRESENTATIONS AND WARRANTIES CORRECT. The representations and warranties made by the Company in Section 3 hereof shall be true and correct in all material respects as of the Closing Date.

 

5.2 COVENANTS. All covenants, agreements and conditions contained in this Agreement to be performed or complied with by the Company have been performed or complied with in all material respects.

 

5.3 CLOSING WORKING CAPITAL. The Negative Closing Working Capital of the Company shall not exceed $15,000. “Negative Closing Working Capital” means, as of the Closing, the amount Current Liabilities of the Company exceed the Current Assets of the Company. “Current Assets” means cash and cash equivalents, accounts receivable, inventory and prepaid expenses, but excluding (a) the portion of any prepaid expense of which the Company will not receive the benefit following the Closing, (b) deferred tax assets and (c) receivables from any of the Company’s affiliates, directors, employees, officers or stockholders and any of their respective affiliates, determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Financial Statements for the most recent fiscal year end as if such accounts were being prepared and audited as of a fiscal year end. “Current Liabilities” means accounts payable (including, but not limited to fees for professional services payable to accountants), accrued taxes and accrued expenses, but excluding payables to any of the Company’s affiliates, directors, employees, officers or stockholders and any of their respective affiliates, deferred tax liabilities and the current portion of long term debt, determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Financial Statements for the most recent fiscal year end as if such accounts were being prepared and audited as of a fiscal year end.

 

  

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5.4 BLUE SKY. The Company shall have obtained all necessary Blue Sky law permits and qualifications, or have the availability of exemptions therefrom, required by any state to have been obtained prior to Closing for the offer and sale of the Securities.

 

5.5 COMPLIANCE CERTIFICATE. The Company shall have delivered to the Purchasers a certificate of the Company executed by the President and Chief Executive Officer of the Company, dated as of the Closing Date certifying to the fulfillment of the conditions specified in Sections 5.1and 5.2 of this Agreement.

 

5.6 BOARD OF DIRECTORS. The number of directors constituting the Board of Directors of the Company shall have become three (3) and the Board of Directors of the Company shall have irrevocably appointed and elected each of Frederick L. Farrar, Daniel R. Loftus and Fred J. Merritt (the “Continuing Directors”) to serve as directors of the company effective as of the Closing.

 

5.7 EMPLOYMENT AGREEMENTS. All of the Company’s employment agreements or relationships, written or oral, shall have been cancelled as of the Closing Date and the Company shall have no liability or obligation for severance, accrued vacation, bonus or other payment of any kind to any current or past employee of the Company.

 

5.8 REQUIRED NOTICE. The Company shall have properly prepared, filed with the SEC and dispatched to stockholders the Form 14f-1 and the 10-day period required by Rule 14f-1 shall have elapsed. Notwithstanding the foregoing, the Purchasers shall bear the costs and expenses of drafting, printing, mailing and filing the Form 14f-1.

 

5.9 RESIGNATIONS AND TERMINATIONS. Each of the Company’s officers and employees shall have resigned or been terminated in writing (and provided a full release of any and all liabilities against the Company) by the Company effective as of the Closing, and all members of the Board of Directors shall have delivered their written resignations from the Board of Directors, effective as of the Closing.

 

5.10 LEGAL OPINION. The Purchasers shall have received an opinion of Lev & Berlin, P.C., counsel to the Company covering such matters as Purchasers reasonably may request.

 

5.11 SHARE AND WARRANT CERTIFICATES. The Company (or its authorized transfer agent and registrar) shall have issued and delivered to the Purchasers certificates representing the Securities in accordance with this Agreement.

 

5.12 INVESTIGATION SATISFACTORY. The Purchasers shall be satisfied in all respects with the results of their investigation of the Company.

 

5.13 PROCEEDINGS. On or before the Closing Date, all actions, proceedings, instruments and documents required by, or on behalf of, the Company to execute, deliver and carry out this Agreement, and all agreements incidental hereto, and all other related legal matters, shall be reasonably satisfactory to the Purchasers and their counsel.

 

5.14 NO MATERIAL EVENT. The Purchasers shall not have discovered any material error in, misstatement of or omission to disclose any material fact relating to the Company.

 

5.15 REPORTS AND RETURNS. The Company shall have filed its Form 10-K Annual Report for the fiscal year ended March 31, 2014 and such other periodic reports as may be required and shall have filed federal and state tax returns for such fiscal year to the extent required to be filed prior to the Closing.

 

  

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	SECTION 6. CONDITIONS TO CLOSING OF THE COMPANY.

 

The Company’s obligation to issue and sell and issue the Securities is, unless waived in writing by the Company, subject to the fulfillment as of the Closing Date of the following conditions:

 

6.1 REPRESENTATIONS AND WARRANTIES CORRECT. The representations and warranties made by the Purchasers in Section 4 hereof shall be true and correct in all material respects as of the Closing Date.

 

6.2 COVENANTS. All covenants, agreements, and conditions contained in this Agreement to be performed or complied with by the Purchasers on or prior to the Closing Date shall have been performed or complied with in all material respects.

 

6.3 ZIMMERMAN CONSULTING ARRANGEMENT. The Company and Bernard Zimmerman & Co., Inc., a Connecticut corporation, shall have executed and delivered a Consulting Agreement in form and content reasonably satisfactory to the Company, the Purchasers and Bernard Zimmerman & Co., Inc.

 

6.4 INVESTMENT. The Escrow Agent shall have tendered, in the aggregate, at the Closing, the Purchase Price.

 

6.5 PROCEEDINGS. On or before the Closing Date, all actions, proceedings, instruments and documents, by or on behalf of the Purchasers to execute, deliver and carry out this Agreement and all agreements incidental hereto, and all other related legal matters, shall be reasonably satisfactory to the Company and its counsel.

 

6.6 COMPLIANCE CERTIFICATE. The Purchasers shall have delivered to the Company a certificate executed by each of the Purchasers dated as of the Closing Date certifying to the fulfillment of the conditions specified in Sections 6.1 and 6.2.

 

6.7 REQUIRED NOTICE. The Company shall have properly prepared, filed with the SEC and dispatched to stockholders the Form 14f-1 and the 10-day period required by Rule 14f-1 shall have elapsed.

 

	SECTION 7. COVENANTS OF THE COMPANY.

 

The Company hereby covenants and agrees for the benefit of the Purchasers as follows:

 

7.1 OTHER OFFERS. Pending consummation of the transactions contemplated herein, the Company shall not seek or solicit other purchasers of the Company or any equity interest in the Company or otherwise entertain any proposal therefor, subject, however, to the fiduciary responsibility of the Company’s Board of Directors.

 

  

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7.2 REGULATORY REPORTS. As soon as practicable on or after the Effective Date, the Company shall file with the SEC and dispatch to its stockholders an information statement (the ”Form 14f-1”) satisfying all of the requirements of Section 14(f) of the Exchange Act and Rule 14f-1 promulgated thereunder with respect to this Agreement and the transactions contemplated hereby. The Company shall prepare and file timely with the SEC, state securities departments and other applicable regulatory authorities, including FINRA, such other reports or other filings as may be required in connection with the transactions contemplated herein.

 

7.3 DISCLOSURE REVIEW. The Company will furnish to the Purchasers copies of all documents disclosing this Agreement, the transactions contemplated herein and other of the matters discussed herein that the Company proposes to file with the SEC, including all amendments, supplements or exhibits thereto. All such copies must be provided sufficiently in advance to provide a reasonable opportunity to review such document and comment thereon. The Company agrees not to file any document described in this Section 7.3 if a Purchaser has expressed its objection to such filing or the substance thereof. Notwithstanding this Section 7.3, if (i) no Purchaser has communicated an objection and (ii) three business days have elapsed since the date on which all Purchasers received a copy of a proposed filing, then the Company may file such document with the SEC.

 

	SECTION 8. COVENANTS OF THE PURCHASERS.

 

The Purchasers hereby covenant and agree for the benefit of the Company as follows:

 

8.1 INVESTMENT REPRESENTATION. Each of the Purchasers represents and agrees that he or it is acquiring the Securities for investment for his or its sole account and not with a view towards the public distribution or resale thereof and shall not offer, sell, transfer or assign any of the Securities except in compliance with pertinent federal and state securities laws, rules and regulations. Each Purchaser acknowledges that an appropriate restrictive legend will be imprinted on the certificates for the Securities and the Company’s stock transfer agent shall be instructed to make appropriate notation on the Company’s stock transfer ledger.

 

8.2 COOPERATION. The Purchasers shall cooperate reasonably with the Company and provide such information as the Company or its counsel reasonably may request to prepare regulatory reports or other filings.

 

	SECTION 9. REGISTRATION RIGHTS.

 

9.1 CHANGE IN CONTROL. If, at any time after the Closing but on before the four-year anniversary of the Closing Date, the Company either (i) enters into an agreement to complete a Change in Control (as defined below) or (ii) otherwise experiences a Change in Control, then, at any time thereafter, any Purchaser may request that the Company file a registration statement on Form S-1 or, if available, Form S-3, with respect to all of the Securities then outstanding. Each request for a registration from a Purchaser must specify the approximate number of Securities requested to be registered. Upon receipt of any such request, the Company will promptly (but in no event later than 10 days following receipt thereof) deliver notice of such request to all other Purchasers who shall then have 10 days from the date such separate notice is given to notify the Company in writing of their desire to be included in such registration. The Company will then cause a registration statement on the applicable form to be filed within 60 days after the date on which the initial request is given and will use its reasonable best efforts to cause such registration statement to be declared effective by the Commission as soon as practicable thereafter. A Change in Control” includes (i) any person or group (other than a group composed exclusively of Purchasers) becoming the beneficial owner(s) of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding voting securities, or (ii) the consummation of a reorganization, merger or consolidation of the Company, or a sale or other disposition (in one or more transactions) of all or substantially all of the assets of the Company.

 

  

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9.2 PIGGYBACK REGISTRATION.

 

(a) Whenever the Company proposes to register any shares of its Common Stock under the Securities Act (other than a registration effected solely to implement an employee benefit plan or a transaction to which Rule 145 of the Securities Act is applicable, or a registration statement on Form S-4, S-8 or any successor form thereto or another form not available for registering the Securities for sale to the public), whether for its own account or for the account of one or more stockholders of the Company and the form of registration statement to be used may be used for any registration of Securities (a “Piggyback Registration”), the Company will give prompt written notice (in any event no later than 60 days prior to the filing of such registration statement) to the Purchasers of its intention to effect such a registration and, subject to Section 9.2(b), shall include in such registration all Securities with respect to which the Company has received written requests for inclusion from the Purchasers within 30 days after the Company’s notice has been given to each such Purchaser.

 

(b) If a Piggyback Registration is initiated as an underwritten offering and the managing underwriter advises the Company and the Purchasers (if any Purchasers have elected to include Securities in such registration) in writing that in its opinion the number of shares of Common Stock proposed to be included in such registration, including all Securities and all other shares of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock which can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration would adversely affect the price per share of the Common Stock to be sold in such offering, the Company shall include in such registration (i) first, the number of shares of Common Stock that the Company proposes to sell; (ii) second, the number of shares of Common Stock requested to be included therein by Purchasers, allocated pro rata among all such Purchasers on the basis of the number of Securities owned by each such Purchaser or in such manner as they may otherwise agree; and (iii) third, the number of shares of Common Stock requested to be included therein by holders of Common Stock (other than holders of Securities), allocated among such holders in such manner as they may agree.

 

9.3 REGISTRATION PROCEDURE. If and whenever any Securities are registered pursuant to the provisions of this Section 9, the Company will use its best efforts to effect the registration and the sale of such Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company will as soon as practicable:

 

(a) subject to Section 9.1, prepare and file with the Commission a Registration Statement with respect to such Securities and use its reasonable best efforts to cause such registration statement to become effective;

 

(b) prepare and file with the Commission such amendments, post-effective amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective until all of such Securities have been disposed of and to comply with the provisions of the Securities Act with respect to the disposition of such Securities in accordance with the intended methods of disposition set forth in such registration statement;

 

(c) furnish to each Purchaser such number of copies of the Prospectus included in such registration statement (including each preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents incorporated by reference therein) and such other documents as such seller may reasonably request in order to facilitate the disposition of the Securities owned by such seller;

 

(d) use its reasonable best efforts to register or qualify such Securities under such other securities or “blue sky” laws of such jurisdictions as any Purchaser reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable the disposition in such jurisdictions of the Securities owned by such Purchaser; provided, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this Section 9.3(c);

 

  

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(e) advise the Purchasers, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the Commission suspending the effectiveness of such registration statement or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued;

 

(f) otherwise use its reasonable best efforts to take all other steps necessary to effect the registration of such Securities contemplated hereby.

 

9.4 REGISTRATION EXPENSES. All expenses (other than selling expenses) incurred by the Company in complying with its obligations pursuant to this Section 9 and in connection with the registration and disposition of Securities, including, without limitation, all registration and filing fees, underwriting expenses (other than fees, commissions or discounts), expenses of any audits incident to or required by any such registration, fees and expenses of complying with securities and “blue sky” laws, printing expenses, fees and expenses of the Company’s counsel and accountants and reasonable fees and expenses of one counsel for the Purchasers participating in such registration as a group shall be paid by the Company. All selling expenses relating to Securities registered pursuant to this Agreement shall be borne and paid by the Purchasers, in proportion to the number of Securities registered for each such Purchaser.

 

9.5 INDEMNIFICATION.

 

(a) The Company will indemnify and hold harmless, to the fullest extent permitted by law, each Purchaser, including such Purchaser’s officers, directors, managers, members, partners, stockholders and affiliates, each underwriter, broker or any other person acting on behalf of such Purchaser and each other person, if any, who controls any of the foregoing persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against all losses, claims, actions, damages, liabilities and expenses, joint or several, to which any of the foregoing persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any registration statement, prospectus, preliminary prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance; and shall reimburse such persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage or liability, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such Purchaser expressly for use therein or by such Purchaser’s failure to deliver a copy of the registration statement, prospectus, free-writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Purchaser with a sufficient number of copies of the same prior to any written confirmation of the sale of Securities.

 

(b) In connection with any registration in which a Purchaser participates, each such Purchaser will furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify and hold harmless, the Company, each director of the Company, each officer of the Company who shall sign such registration statement, each underwriter, broker or other person acting on behalf of the Purchasers and each person who controls any of the foregoing persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the registration statement, prospectus, preliminary prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such Purchaser; provided, that the obligation to indemnify shall be several, not joint and several, for each Purchaser and shall be limited to the net proceeds (after underwriting fees, commissions or discounts) actually received by such Purchaser from the sale of Securities pursuant to such registration statement.

 

  

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	SECTION 10. MISCELLANEOUS.

 

10.1 GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Connecticut without giving effect to conflict of laws provisions.

 

10.2 ENTIRE AGREEMENT; AMENDMENT. This Agreement, and any other documents delivered pursuant hereto, including exhibits or schedules hereto constitute the full and entire understanding and agreement among the parties with regard to the subject hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought.

 

10.3 SPECIFIC PERFORMANCE. Unless proceeding with the Closing would violate the fiduciary responsibilities of its Board of Directors, if, at any point on or before July 15, 2014, the conditions specified in Section 6 of this Agreement have been satisfied and the Company fails or refuses to proceed with a Closing, then the Purchasers may seek specific performance of the Company’s obligations under this Agreement (in addition to any other remedies available under this Agreement), including but not limited to issuance and delivery of the Securities in accordance with Section 1; provided, however, that such action must be commenced the Purchasers within four months after such right of action arises.

 

10.4 NOTICES, ETC. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by facsimile transmission, by hand or by messenger or overnight express, addressed:

 

(a) if to the Purchasers to the address listed after such Purchaser’s name on Exhibit A or at such other address as such Purchaser shall have furnished to the Company with a copy to (which copy shall not constitute notice):

 

Faegre Baker Daniels LLP

90 South Seventh Street

2200 Wells Fargo Center

Minneapolis, MN 55402

Fax: 612-766-1600

Attention: Jonathan R. Zimmerman

 

  

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(b) if to the Company, to:

 

Bernard Zimmerman, President

FCCC, Inc.

c/o Lev & Berlin, P.C.

200 Connecticut Avenue, 5th Floor

Norwalk, CT 06854

Fax: 203-854-1652

 

or at such other address as the Company shall have furnished to the Purchasers with a copy to (which copy shall not constitute notice):

 

Duane L. Berlin, Esq.

Lev & Berlin, P.C.

200 Connecticut Avenue, 5th Floor

Norwalk, CT 06854

Fax: 203-854-1652

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when received if delivered personally, if sent by facsimile, the first business day after the date of confirmation that the facsimile has been successfully transmitted to the facsimile number for the party notified, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid.

 

10.5 DELAYS OR OMISSIONS. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party, upon any breach or default of another party under this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall nay waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

10.6 EXPENSES. Subject to Section 5.8 above, each party will pay all of their expenses , including without limitation counsel or other professional fees and disbursements but excluding any brokerage or finders’ fees or agents’ commissions or any similar charges, reasonably incurred in connection with the negotiation and preparation of this Agreement and the transactions contemplated herein (the “Expenses”).

 

10.7 COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which together shall constitute one instrument.

 

  

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10.8 SEVERABILITY. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision, which shall be replaced with an enforceable provision closest in intent and economic effect as the severed provision; provided that no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party.

 

10.9 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

10.10 KNOWLEDGE CONVENTION. For all purposes of this Agreement, the term “knowledge” means, with respect to an individual, that such individual is actually aware of a particular fact or other matter, with no obligation to conduct any inquiry or other investigation to determine the accuracy of such fact or other matter. A person other than an individual shall be deemed to have knowledge of a particular fact or other matter if the officers, directors or other management personnel of such person had knowledge of such fact or other matter.

 

10.11 SURVIVAL OF WARRANTIES. The representations and warranties of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive execution and delivery of this Agreement and the Closing for a period of two years and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of the Purchasers or the Company.

 

10.12 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto, as the case may be.

 

10.13 FURTHER ASSURANCES. Each party hereto agrees to do all acts and things, and to make, execute and delivery such written instruments, as shall from time to time be reasonably required to carry out the terms and provisions of this Agreement.

 

[Signatures on Following Page]

 

  

18

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement as of the day and year first above written.

 

	 	The Company:	 
	 	 	 	 
	 	FCCC, INC.	 
	 	 	 	 
	 	
By:

	
/s/ Bernard Zimmerman

	 
	 	 	Bernard Zimmerman	 
	 	 	
President and Chief Executive Officer

	 
	 	 	 	 
	 	
Purchasers:

	 
	 	 	 	 
	 	
By:

	
/s/ Frederick L. Farrar

	 
	 	 	
Frederick L. Farrar

	 
	 	 	 
	 	
LFM Investments, Inc.

	 
	 	 	 
	 	
By:

	/s/ Fred J. Merritt	 
	 	
Name:

	
Fred J. Merritt

	 
	 	
Its:

	
President

	 
	 	 	 	 
	 	
CHAFRE, LLC

	 
	 	 	 
	 	By:	
/s/ Frederick L. Farrar

	 
	 	
Name:

	
Frederick L. Farrar

	 
	 	
Its:

	
Managing Member

	 
	 	 	 	 
	 	 
By:

	 
/s/ Charles E. Lanham

	 
	 	 	 
Charles E. Lanham

	 
	 	 	 	 
	 	
By:

	 
/s/ Daniel R. Loftus

	 
	 	 	 
Daniel R. Loftus

	 

 

[Signature Page to Securities Purchase Agreement]

 

  

19

  

 

Exhibit A

to Securities Purchase Agreement

 

Schedule of Purchasers

 

	
Purchaser

	 	
Shares

	 
	 	 	 	 	 
	
Frederick L. Farrar

3502 Woodview Trace, Suite 200

Indianapolis, IN 46268

	 	 	525,000	 
	 	 	 	 	 
	
LFM Investments, Inc.

1650 W. 106thSt.

Indianapolis, IN 46032

	 	 	500,000	 
	 	 	 	 	 
	
Chafre, LLC

3502 Woodview Trace, Suite 200

Indianapolis, IN 46268

	 	 	400,000	 
	 	 	 	 	 
	
Charles E. Lanham

7564 Silver Pine Court

Indianapolis, IN 46250

	 	 	290,000	 
	 	 	 	 	 
	
Daniel R. Loftus

5210 Heathrow Hill Drive

Brentwood, TN 37027

	 	 	185,000	 
	 	 	 	 	 
	
Total:

	 	 	1,900,00	 

 

[Signature Page to Securities Purchase Agreement]

 

 

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