Document:

EXHIBIT 10.2

 

 

 

 

 

PLEDGE AND SECURITY AGREEMENT

dated and effective as of

March 4, 2022

among

RED ROBIN GOURMET BURGERS, INC.,

as Holdings,

 

RED ROBIN INTERNATIONAL, INC.,

as the Borrower,

 

each Subsidiary Loan Party

party hereto

 

and

FORTRESS CREDIT CORP.,

as Collateral Agent

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

Page

 

	 	ARTICLE I	 
	 	 	 
	 	Definitions	 
	 	 	 
	SECTION 1.01.	Credit Agreement	1
	SECTION 1.02.	Other Defined Terms	1
	 	 	 
	 	ARTICLE II	 
	 	 	 
	 	Pledge of Securities	 
	 	 	 
	SECTION 2.01.	Pledge	4
	SECTION 2.02.	Delivery of the Pledged Collateral	5
	SECTION 2.03.	Representations, Warranties and Covenants	6
	SECTION 2.04.	Certification of Limited Liability Company and Limited Partnership Interests	8
	SECTION 2.05.	Registration in Nominee Name; Denominations	8
	SECTION 2.06.	Voting Rights; Dividends and Interest, Etc.	8
	 	 	 
	 	ARTICLE III	 
	 	 	 
	 	Security Interests in Other Personal Property	 
	 	 	 
	SECTION 3.01.	Security Interest	11
	SECTION 3.02.	Representations and Warranties	13
	SECTION 3.03.	Covenants	16
	SECTION 3.04.	Other Actions	17
	SECTION 3.05.	Covenants Regarding Patent, Trademark and Copyright Collateral	18
	 	 	 
	 	ARTICLE IV	 
	 	 	 
	 	Remedies	 
	 	 	 
	SECTION 4.01.	Remedies Upon Default	20
	SECTION 4.02.	Application of Proceeds	22
	SECTION 4.03.	Securities Act, Etc.	23
	 	 	 
	 	ARTICLE V	 
	 	 	 
	 	Miscellaneous	 
	 	 	 
	SECTION 5.01.	Notices	23
	SECTION 5.02.	Security Interest Absolute	23

 

    	 	 	 

     

    

 

	SECTION 5.03.	Limitation By Law	24
	SECTION 5.04.	Binding Effect; Several Agreements	24
	SECTION 5.05.	Successors and Assigns	24
	SECTION 5.06.	Collateral Agent’s Fees and Expenses; Indemnification	24
	SECTION 5.07.	Collateral Agent Appointed Attorney-in-Fact	25
	SECTION 5.08.	Governing Law	26
	SECTION 5.09.	Waivers; Amendment	26
	SECTION 5.10.	WAIVER OF JURY TRIAL	27
	SECTION 5.11.	Severability	27
	SECTION 5.12.	Counterparts	27
	SECTION 5.13.	Headings	27
	SECTION 5.14.	Jurisdiction; Consent to Service of Process	28
	SECTION 5.15.	Termination or Release	28
	SECTION 5.16.	Additional Subsidiaries	29
	SECTION 5.17.	General Authority of the Collateral Agent	29
	SECTION 5.18.	Subject to Intercreditor Agreements; Conflicts	30

 

    	 	 	 

     

    

 

Schedules

 

	Schedule I	 Subsidiary Loan Parties
	Schedule II	Pledged Stock; Pledged Debt
	Schedule III	Intellectual Property
	Schedule IV	Commercial Tort Claims

 

Exhibits

 

	Exhibit I	Form of Supplement to the Pledge and Security Agreement
	Exhibit II	Form of Notice of Grant of Security Interest in Intellectual Property

 

    	 	 	 

     

    

PLEDGE AND SECURITY AGREEMENT
dated and effective as of March 4, 2022 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”),
is among RED ROBIN GOURMET BURGERS, INC., a Delaware corporation (“Holdings”), RED ROBIN INTERNATIONAL, INC.,
a Nevada corporation (the “Borrower”), the Subsidiary Loan Parties (as defined below) from time to time party
hereto, and FORTRESS CREDIT CORP., as collateral agent for the Secured Parties referred to herein (together with its successors and assigns
in such capacity, the “Collateral Agent”).

PRELIMINARY STATEMENT

Reference is made to the
Credit Agreement, dated as of March 4, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Holdings, the Borrower, the lenders from time to time party thereto (the “Lenders”),
the issuing banks from time to time party thereto (the “Issuing Banks”) and Fortress Credit Corp., as administrative
agent for the Lenders and as collateral agent for the Secured Parties.

The Lenders and the Issuing
Banks have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agreement. The obligations
of the Lenders and the Issuing Banks to extend such credit are conditioned upon, among other things, the execution and delivery of this
Agreement by Holdings, the Borrower and the Subsidiary Loan Parties party hereto. Holdings, as the parent of the Borrower and the Subsidiary
Loan Parties, as Subsidiaries and/or affiliates of the Borrower, will derive substantial benefits from the extension of credit to the
Borrower pursuant to the Credit Agreement. Holdings, the Borrower and the Subsidiary Loan Parties party hereto are willing to execute
and deliver this Agreement in order to induce the Lenders and the Issuing Banks to extend such credit under the Credit Agreement. Therefore,
to induce the Lenders and the Issuing Banks to make their respective extensions of credit, the parties hereto agree as follows:

ARTICLE
I

Definitions

SECTION 1.01.       
Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein
have the respective meanings assigned thereto in the Credit Agreement. All terms defined in the New York UCC (as defined herein)
and not defined in this Agreement or the Credit Agreement have the meanings specified therein. The term “instrument” shall
have the meaning specified in Article 9 of the New York UCC.

(b)          The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Agreement.

SECTION 1.02.       
Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

    	 	 	 

     

    

“Account Debtor”
means any person who is or who may become obligated to any Pledgor under, with respect to or on account of an Account, Chattel Paper or
General Intangibles.

“Agreement”
has the meaning assigned to such term in the introductory paragraph of this Agreement.

“Article 9
Collateral” has the meaning assigned to such term in Section 3.01.

“Borrower”
has the meaning assigned to such term in the introductory paragraph of this Agreement.

“Collateral”
means Article 9 Collateral and Pledged Collateral. For the avoidance of doubt, the term Collateral does not include any Excluded
Property or Excluded Securities.

“Collateral Agent”
has the meaning assigned to such term in the introductory paragraph of this Agreement.

“Credit Agreement”
has the meaning assigned to such term in the preliminary statement of this Agreement.

“Credit Agreement
Documents” means (a) the “Loan Documents” as defined in the Credit Agreement and (b) any other related documents
or instruments executed and delivered pursuant to the documents referred to in the foregoing clause (a), in each case, as such documents
or instruments may be amended, restated, supplemented, replaced or otherwise modified from time to time.

“Federal Securities
Laws” has the meaning assigned to such term in Section 4.03.

“General Intangibles”
means all “general intangibles” as defined in the New York UCC, including all choses in action and causes of action and
all other intangible personal property of any Pledgor of every kind and nature (other than Accounts) now owned or hereafter acquired by
any Pledgor, including corporate or other business records, indemnification claims, contract rights (including rights under leases, whether
entered into as lessor or lessee, swap agreements and other agreements), Intellectual Property, goodwill, registrations, franchises, tax
refund claims and any guarantee, claim, security interest or other security held by or granted to any Pledgor to secure payment by an
Account Debtor of any of the Accounts.

“Holdings”
has the meaning assigned to such term in the introductory paragraph of this Agreement.

“Intellectual
Property” shall mean any rights in intellectual property protectable under the intellectual property laws of any worldwide
jurisdiction, including all Copyrights, all Patents and all Trademarks, together with (a) all inventions, proprietary

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know-how and trade secrets (including, to the
extent proprietary, processes, production and manufacturing methods, software, information, customer lists, identification of suppliers,
data, plans, blueprints, specifications, formulations, designs, drawings, recorded knowledge, surveys, engineering reports, test reports,
manuals, materials standards, processing standards, performance standards, catalogs, computer and automatic machinery software and programs);
and (b) all causes of action, claims and warranties now or hereafter owned or acquired by any Pledgor in respect of any of the items listed
above and any proceeds relating to any of the foregoing.

“Intellectual
Property Collateral” has the meaning assigned to such term in Section 3.02.

“Intercreditor
Agreements” means an Intercreditor Agreement (upon and during the effectiveness thereof) entered into in compliance with
the Credit Agreement Documents.

“Issuing Banks”
has the meaning assigned to such term in the preliminary statement of this Agreement.

“Lenders”
has the meaning assigned to such term in the preliminary statement of this Agreement.

“New York
UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York.

“Notices of Grant
of Security Interest in Intellectual Property” means the notices of grant of security interest substantially in the form
attached hereto as Exhibit II or such other form as shall be reasonably acceptable to the Collateral Agent.

“Perfection Certificate”
means the Perfection Certificate with respect to Holdings, the Borrower and each Subsidiary Loan Party as of the Closing Date delivered
to the Collateral Agent on the Closing Date.

“Pledged Collateral”
has the meaning assigned to such term in Section 2.01.

“Pledged Debt”
has the meaning assigned to such term in Section 2.01.

“Pledged Securities”
means any promissory notes, stock certificates or other certificated securities now or hereafter included in the Pledged Collateral, including
all certificates, instruments or other documents representing or evidencing any Pledged Collateral.

“Pledged Stock”
has the meaning assigned to such term in Section 2.01.

“Pledgor”
means each of Holdings, the Borrower and the Subsidiary Loan Parties party hereto.

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“Proceeds”
means “Proceeds” as defined in Article 9 of the New York UCC and, in any event, also includes all proceeds of, and all other
profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other
disposition of, or other realization upon, any Collateral, including all claims of the relevant Pledgor against third parties for loss
of, damage to or destruction of, or for proceeds payable under, or unearned premiums with respect to, policies of insurance in respect
of, any Collateral, and any condemnation or requisition payments with respect to any Collateral.

“SEC”
has the meaning assigned to such term in Section 2.01.

“Secured Obligations”
means the “Obligations” as defined in the Credit Agreement.

“Security Interest”
has the meaning assigned to such term in Section 3.01.

“Specified Pledged
Debt Instrument” has the meaning assigned to such term in Section 2.02(b).

“Subsidiary Loan
Party” means any Subsidiary of Holdings set forth on Schedule I and any Subsidiary of Holdings that becomes a party
hereto pursuant to Section 5.16 (other than the Borrower).

ARTICLE
II

Pledge of Securities

SECTION 2.01.       
Pledge. As security for the payment or performance when due (whether at the stated maturity, by acceleration
or otherwise), as the case may be, in full of the Secured Obligations, each Pledgor hereby assigns and pledges to the Collateral Agent,
for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security
interest in all of such Pledgor’s right, title and interest in, to and under:

(a)              
the Equity Interests directly owned by it, including (i) those listed on Schedule II, (ii) any other Equity Interests
obtained in the future by such Pledgor, (iii) any certificates representing all such Equity Interests and (iv) all rights, privileges,
authorities, and powers of the applicable Pledgor as an owner or holder of such Equity Interests, including all economic rights, all control
rights, authority, and powers, all status rights of such Pledgor as a member, shareholder, or other owner (as applicable) (including,
in the case of any pledged limited liability company interests, such Pledgor’s “limited liability company interest”
(as such term is defined in Section 18-101 of the Limited Liability Company Act of Delaware) or equivalent, and such Pledgor’s status
as a “member” (as such term is defined in Section 18 101 of the Limited Liability Company Act of Delaware) or equivalent)
and all rights and interests, if any, to participate in the management of the business and affairs of each applicable issuer (collectively,
the “Pledged Stock”); provided that the Pledged Stock shall not include any Excluded Securities or other
Excluded Property;

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(b)          (i) the
debt obligations listed opposite the name of such Pledgor on Schedule II, (ii) any debt obligations in the future
issued to such Pledgor having, in the case of each instance of debt obligations, an aggregate principal amount in excess of $1,000,000,
and (iii) the certificates, promissory notes and any other instruments, if any, evidencing such debt obligations (the property described
in clauses (b)(i), (ii) and (iii) above, the “Pledged Debt”); provided that the Pledged Debt
shall not include any Excluded Securities or other Excluded Property;

(c)          subject to Section 2.06, all payments of principal or interest, dividends, cash, instruments and other property from time
to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds
received in respect of the Pledged Stock and the Pledged Debt;

(d)          subject to Section 2.06, all rights and privileges of such Pledgor with respect to the Pledged Stock, Pledged Debt and other
property referred to in clause (c) above; and

(e)          all Proceeds of any of the foregoing (the Pledged Stock, Pledged Debt and other property referred to in this clause (e) and in
clauses (c) through (d) above being collectively referred to as the “Pledged Collateral”); provided
that the Pledged Collateral shall not include any Excluded Securities or other Excluded Property.

TO HAVE AND TO HOLD the Pledged
Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Collateral
Agent, its successors and permitted assigns, for the benefit of the Secured Parties, forever; subject, however, to the terms, covenants
and conditions hereinafter set forth.

SECTION 2.02.       
Delivery of the Pledged Collateral. (a) With respect to Pledged Securities in existence on the Closing Date,
each Pledgor agrees to deliver or cause to be delivered to the Collateral Agent, for the benefit of the Secured Parties, any and all
Pledged Securities to the extent such Pledged Securities are Equity Interests in Subsidiaries directly owned by such Pledgor no later
than fifteen (15) days following the Closing Date (or such longer period as the Administrative Agent may agree in its reasonable discretion).
With respect to any Pledged Securities hereafter owned or acquired, each Pledgor agrees to deliver or cause to be delivered to the Collateral
Agent, for the benefit of the Secured Parties, as promptly as possible, of such Pledgor acquiring rights therein, any and all Pledged
Securities to the extent such Pledged Securities are Equity Interests in Subsidiaries directly owned by such Pledgor that are Loan Parties.

(b)          To the extent any Indebtedness for borrowed money constituting Pledged Collateral (other than (i) intercompany current liabilities
incurred in the ordinary course of business in connection with the cash management operations of Holdings and its Subsidiaries or (ii) to
the extent that a pledge of such promissory note or instrument would violate applicable law) owed to any Pledgor is evidenced by a promissory
note in an amount in excess of $1,000,000 (a “Specified Pledged Debt Instrument”), such Pledgor shall cause
such promissory note to be pledged and delivered to the Collateral Agent, for

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the benefit of the Secured Parties, pursuant
to the terms hereof and in accordance with the timing requirements set forth in paragraph (c) of this Section 2.02.

(c)          With respect to any Specified Pledged Debt Instrument in existence on the Closing Date, each Pledgor agrees to deliver or cause
to be delivered to the Collateral Agent, for the benefit of the Secured Parties, within fifteen (15) days following the Closing Date (or
such longer period as the Administrative Agent may agree in its reasonable discretion), such Specified Pledged Debt Instrument. With respect
to any Specified Pledged Debt Instrument hereafter owned or acquired, each Pledgor agrees to deliver or cause to be delivered to the Collateral
Agent, for the benefit of the Secured Parties, as promptly as possible, of such Pledgor acquiring rights therein, such Specified Pledged
Debt Instruments.

(d)          Upon delivery to the Collateral Agent, (i) any Pledged Securities required to be delivered pursuant to the foregoing paragraphs
(a), (b) and (c) of this Section 2.02 shall be accompanied by stock powers or note powers, as applicable, duly executed in blank
or other instruments of transfer reasonably satisfactory to the Collateral Agent, and by such other instruments and documents as the Collateral
Agent may reasonably request and (ii) all other property comprising part of the Pledged Collateral delivered pursuant to the terms
of this Agreement shall be accompanied to the extent necessary to perfect the security interest in or allow realization on the Pledged
Collateral by proper instruments of assignment duly executed by the applicable Pledgor and such other instruments or documents as the
Collateral Agent may reasonably request. Each delivery of Pledged Securities shall be accompanied by a schedule describing the securities,
which schedule shall be attached hereto as Schedule II (or a supplement or amendment to Schedule II, as applicable) and
made a part hereof; provided that failure to attach any such schedule hereto shall not affect the validity of such pledge of such
Pledged Securities. Each schedule so delivered shall supplement or amend any prior schedules so delivered.

(e)          Without limiting the obligations of the Pledgors under Sections 2.02(a), (b), (c) and (d), until such time as the Pledged Securities
are delivered to the Collateral Agent, each Pledgor agrees that the Pledgors are holding the Pledged Securities (including, without limitation,
the Pledged Securities described on Schedule II) on behalf of and for the benefit of the Collateral Agent, for all purposes of
the Uniform Commercial Code, as in effect in the State of New York.

SECTION 2.03.       
Representations, Warranties and Covenants. The Pledgors, jointly and severally, represent, warrant
and covenant to and with the Collateral Agent, for the benefit of the Secured Parties, that:

(a)          Schedule II correctly sets forth (and, with respect to any Pledged Stock issued by an issuer that is not a Subsidiary
of Holdings, correctly sets forth, to the knowledge of the relevant Pledgor), as of the Closing Date, the percentage of the issued and
outstanding units of each class of the Equity Interests of the issuer thereof represented by the Pledged Stock and includes (i) all Equity
Interests pledged hereunder and (ii) all debt obligations and promissory notes or

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instruments evidencing Indebtedness,
in each case under this clause (ii) pledged hereunder and in an aggregate principal amount in excess of $1,000,000;

(b)          the Pledged Stock and Pledged Debt (and, with respect to any Pledged Stock or Pledged Debt issued by an issuer that is not a Subsidiary
of Holdings, to the knowledge of the relevant Pledgor), as of the Closing Date, (x) have been duly and validly authorized and issued by
the issuers thereof and (y) (i) in the case of Pledged Stock, are fully paid and, with respect to Equity Interests constituting capital
stock of a corporation, nonassessable and (ii) in the case of Pledged Debt, are legal, valid and binding obligations of the issuers
thereof, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating
to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding at law or in equity)
and an implied covenant of good faith and fair dealing;

(c)          except for the security interests granted hereunder (or otherwise not prohibited by the Credit Agreement Documents), each Pledgor
(i) is and, subject to any transfers made not in violation of the Credit Agreement, will continue to be the direct owner, beneficially
and of record, of the Pledged Securities indicated on Schedule II (as may be supplemented or amended from time to time pursuant
to Section 2.02(d)) as owned by such Pledgor, (ii) holds the same free and clear of all Liens, other than Permitted Liens, (iii) will
make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any security interest in or other Lien on, the
Pledged Collateral, other than pursuant to a transaction not prohibited by the Credit Agreement and other than Permitted Liens and (iv) subject
to the rights of such Pledgor under the Credit Agreement Documents to Dispose of Pledged Collateral, will use commercially reasonable
efforts to defend its title or interest thereto or therein against any and all Liens (other than Permitted Liens), however arising, of
all persons;

(d)          each Pledgor has the power and authority to pledge the Pledged Collateral pledged by it hereunder in the manner hereby done or
contemplated;

(e)          other than as permitted by the Credit Agreement, as of the Closing Date, no consent or approval of any Governmental Authority,
any securities exchange or any other person was or is necessary to the validity of the pledge effected hereby (or the transfer of the
Pledged Securities upon a foreclosure thereof (other than compliance with any securities law applicable to the transfer of securities)),
in each case other than such as have been obtained and are in full force and effect; and

(f)           by virtue of the execution and delivery by the Pledgors of this Agreement, when any Pledged Securities (including Pledged Stock
of the Borrower and any Subsidiary Loan Party) are delivered to the Collateral Agent, for the benefit of the Secured Parties, in accordance
with this Agreement and a financing statement naming the Collateral Agent as the secured party and covering

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the Pledged Collateral to which such
Pledged Securities relate is filed in the appropriate filing office, the Collateral Agent will obtain, for the benefit of the Secured
Parties, a legal, valid and perfected lien upon and security interest in such Pledged Collateral under the New York UCC (or in the
case of uncertificated Pledged Collateral, the applicable Uniform Commercial Code), subject only to Permitted Liens, as security for the
payment and performance of the Secured Obligations, to the extent such perfection is governed by the New York UCC (or in the case of uncertificated
Pledged Collateral, the applicable Uniform Commercial Code).

SECTION 2.04.       
Certification of Limited Liability Company and Limited Partnership Interests.

(a)          As of the Closing Date, except as set forth on Schedule II, the Equity Interests in limited liability companies that
are pledged by the Pledgors hereunder and do not have a certificate number listed on Schedule II (and, with respect to any
Pledged Stock issued by an issuer that is not a Subsidiary of Holdings, to the relevant Pledgor’s knowledge) do not constitute a
security under Section 8-103 of the New York UCC or the corresponding code or statute of any other applicable jurisdiction.

(b)          The Pledgors shall at no time elect to treat any interest in any limited liability company or limited partnership Controlled by
a Pledgor and pledged hereunder as a “security” within the meaning of Article 8 of the New York UCC or issue any certificate
representing such interest, unless promptly thereafter (and in any event within 30 days or such longer period as the Administrative Agent
may permit in its reasonable discretion) the applicable Pledgor provides notification to the Collateral Agent of such election and delivers,
as applicable, any such certificate to the Collateral Agent pursuant to the terms hereof.

SECTION 2.05.       
Registration in Nominee Name; Denominations. The Collateral Agent, on behalf of the Secured Parties,
shall have the right (in its sole and absolute discretion) to hold the Pledged Securities in the name of the applicable Pledgor, endorsed
or assigned in blank or in favor of the Collateral Agent or, if an Event of Default shall have occurred and be continuing, in its own
name as pledgee or the name of its nominee (as pledgee or as sub-agent). During the continuance of any Event of Default, each Pledgor
will promptly give to the Collateral Agent copies of any notices or other communications received by it with respect to Pledged Securities
registered in the name of such Pledgor. If an Event of Default shall have occurred and be continuing, the Collateral Agent shall have
the right to exchange the certificates representing Pledged Securities held by it for certificates of smaller or larger denominations
for any purpose consistent with this Agreement. Each Pledgor shall use its commercially reasonable efforts to cause any Subsidiary that
is not a party to this Agreement to comply with a request by the Collateral Agent, pursuant to this Section 2.05, to exchange certificates
representing Pledged Securities of such Subsidiary for certificates of smaller or larger denominations.

SECTION 2.06.       
Voting Rights; Dividends and Interest, Etc. (a) Unless and until an Event of Default shall have occurred
and be continuing and the

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Collateral Agent shall have given two (2) Business
Day’s advance written notice to the relevant Pledgors of the Collateral Agent’s intention to exercise its rights hereunder
(such notice may be provided electronically to the email address provided for notices to the Borrower on Schedule 9.01 to the Credit Agreement
and shall be deemed to have been received by the relevant Pledgors when sent by the Collateral Agent):

(i)          Each Pledgor shall be entitled to exercise any and all voting and/or other consensual rights and powers inuring to an owner of
Pledged Collateral or any part thereof for any purpose not prohibited by the terms of this Agreement or the Credit Agreement; provided
that, except as not prohibited by the Credit Agreement, such rights and powers shall not be exercised in any manner that could be reasonably
likely to materially and adversely affect the rights and remedies of any of the Collateral Agent or the other Secured Parties under this
Agreement, any Credit Agreement Document or the ability of the Secured Parties to exercise the same.

(ii)         The
Collateral Agent shall promptly execute and deliver to each Pledgor, or cause to be executed and delivered to such Pledgor, all such
proxies, powers of attorney and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to
exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to subparagraph (i) above.

(iii)        Each
Pledgor shall be entitled to receive and retain any and all dividends, interest, principal and other distributions paid on or distributed
in respect of the Pledged Collateral to the extent and only to the extent that such dividends, interest, principal and other distributions
are not prohibited by, and otherwise paid or distributed in accordance with, the terms and conditions of the Credit Agreement and applicable
laws; provided that (A) any non-cash dividends, interest, principal or other distributions, payments or other consideration
in respect thereof, including any rights to receive the same to the extent not so distributed or paid, that would constitute Pledged
Securities to the extent such Pledgor has the rights to receive such Pledged Securities if they were declared, distributed and paid on
the date of this Agreement, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests
of the issuer of any Pledged Securities, received in exchange for Pledged Securities or any part thereof, or in redemption thereof, as
a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise or (B) any
non-cash dividends and other distributions paid or payable in respect of any Pledged Securities that would constitute Pledged Securities
to the extent such Pledgor has the rights to receive such Pledged Securities if they were declared, distributed and paid on the date
of this Agreement, in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid in surplus, shall be and become part of the Pledged Collateral, and, if received by any Pledgor, shall not be commingled
by such

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Pledgor with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent, for the benefit
of the Secured Parties, and shall be promptly delivered to the Collateral Agent, for the benefit of the Secured Parties, in the same form
as so received (endorsed in a manner reasonably satisfactory to the Collateral Agent).

(b)          Upon the occurrence and during the continuance of an Event of Default and after two (2) Business Day’s advance written notice
by the Collateral Agent to the relevant Pledgors of the Collateral Agent’s intention to exercise its rights hereunder (such notice
may be provided electronically to the email address provided for notices to the Borrower on Schedule 9.01 to the Credit Agreement and
shall be deemed to have been received by the relevant Pledgors when sent by the Collateral Agent), all rights of any Pledgor to receive
dividends, interest, principal or other distributions with respect to Pledged Securities that such Pledgor is authorized to receive pursuant
to paragraph (a)(iii) of this Section 2.06 shall cease, and all such rights shall thereupon become vested, for the benefit of
the Secured Parties, in the Collateral Agent which shall have the sole and exclusive right and authority to receive and retain such dividends,
interest, principal or other distributions; provided that the Collateral Agent shall have the right from time to time following
and during the continuance of an Event of Default to permit the Pledgors to receive and retain such amounts; provided, further,
that, notwithstanding the occurrence of an Event of Default, any Pledgor may continue to exercise dividend and distribution rights solely
to the extent permitted under subclause (i), subclause (iii), subclause (iv) and subclause (v) of Section 6.06(b) of the Credit Agreement.
All dividends, interest, principal or other distributions received by any Pledgor contrary to the provisions of this Section 2.06
shall not be commingled by such Pledgor with any of its other funds or property but shall be held separate and apart therefrom, shall
be held in trust for the benefit of the Collateral Agent, for the benefit of the Secured Parties, and shall be forthwith delivered to
the Collateral Agent, for the benefit of the Secured Parties, in the same form as so received (endorsed in a manner reasonably satisfactory
to the Collateral Agent). Any and all money and other property paid over to or received by the Collateral Agent pursuant to the provisions
of this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt
of such money or other property and shall be applied in accordance with the provisions of Section 4.02. After all Events of Default
have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, the Collateral Agent shall
promptly repay to each Pledgor (without interest) all dividends, interest, principal or other distributions that such Pledgor would otherwise
be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 2.06 and that remain in such account.

(c)          Upon the occurrence and during the continuance of an Event of Default and after two (2) Business Day’s advance written notice
by the Collateral Agent to the Borrower of the Collateral Agent’s intention to exercise its rights hereunder (such notice may be
provided electronically to the email address

    	 	10	 

     

    

provided for notices to the Borrower
on Schedule 9.01 to the Credit Agreement and shall be deemed to have been received by the relevant Pledgors when sent by the Collateral
Agent), all rights of any Pledgor to exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to paragraph
(a)(i) of this Section 2.06, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 2.06,
shall cease, and all such rights shall thereupon become vested in the Collateral Agent, for the benefit of the Secured Parties, which
shall have the sole and exclusive right and authority to exercise such voting and consensual rights and powers; provided that the
Collateral Agent shall have the right from time to time following and during the continuance of an Event of Default to permit the Pledgors
to exercise such rights. After all Events of Default have been cured or waived (in accordance with the terms of the Credit Agreement)
and the Borrower has delivered to the Collateral Agent a certificate to that effect then, each Pledgor shall have the right to exercise
the voting and/or consensual rights and powers that such Pledgor would otherwise be entitled to exercise pursuant to the terms of paragraph
(a)(i) above and the obligations of the Collateral Agent under paragraph (a)(ii) shall be in effect.

ARTICLE
III

Security Interests in Other Personal Property

SECTION 3.01.       
Security Interest. (a) As security for the payment or performance when due (whether at the stated
maturity, by acceleration or otherwise), as the case may be, in full of the Secured Obligations, each Pledgor hereby pledges to the Collateral
Agent, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security
interest (the “Security Interest”) in all right, title and interest in or to any and all of the following assets
and properties now owned or at any time hereafter acquired by such Pledgor or in which such Pledgor now has or at any time in the future
may acquire any right, title or interest (collectively, the “Article 9 Collateral”):

(i)          all Accounts;

(ii)         all Chattel Paper;

(iii)        all cash and Deposit Accounts;

(iv)        all Documents;

(v)         all Equipment;

(vi)        all Fixtures;

(vii)       all General Intangibles;

(viii)      all Instruments (other than the Pledged Collateral, which are governed by Article II);

    	 	11	 

     

    

(ix)          all Inventory and all other Goods not otherwise described above;

(x)           all Investment Property (other than the Pledged Collateral, which are governed by Article II);

(xi)          all Letter of Credit Rights;

(xii)         all Commercial Tort Claims individually in excess of $1,500,000, as described on Schedule IV (as may be supplemented or
amended from time to time pursuant to Section 3.04);

(xiii)       
all books and records pertaining to the Article 9 Collateral; and

(xiv)        to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any and all of the foregoing and all
collateral security and guarantees given by any person with respect to any of the foregoing.

Notwithstanding anything to the contrary in
this Agreement or the other Credit Agreement Documents, this Agreement shall not constitute a grant of a security interest in (and the
Article 9 Collateral shall not include), and the other provisions of the Credit Agreement Documents with respect to Collateral need not
be satisfied with respect to, the Excluded Property.

Each Pledgor hereby irrevocably authorizes the Collateral
Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements (including fixture filings)
with respect to the Collateral or any part thereof and amendments thereto that contain the information required by Article 9 of the
Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment, including (i) if
required, whether such Pledgor is an organization and the type of organization, (ii) in the case of a financing statement filed as a fixture
filing, a sufficient description of the real property to which such Collateral relates and (iii) a description of collateral that
describes such property in any other manner as the Collateral Agent may reasonably determine is necessary or advisable to ensure the perfection
of the security interest in the Collateral granted under this Agreement, including describing such property as “all assets”
or “all personal property” or words of similar effect. Each Pledgor agrees to provide such information to the Collateral Agent
promptly upon request.

 

The Collateral Agent is further
authorized to file with the United States Patent and Trademark Office or United States Copyright Office the Notice of Grant of Security
Interest in Intellectual Property substantially in the form attached hereto as Exhibit II and such other documents as may be reasonably
necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by
each Pledgor in such Pledgor’s Patents, Trademarks and Copyrights, without the signature of such Pledgor, and naming such Pledgor
or the Pledgors as debtors and the

    	 	12	 

     

    

Collateral Agent as secured party. Notwithstanding
anything to the contrary herein, no Pledgor shall be required to take any action under the laws of any jurisdiction other than the United
States of America (or any political subdivision thereof) for the purpose of perfecting the Security Interest in any Article 9 Collateral
of such Pledgor constituting Patents, Trademarks or Copyrights or any other assets.

(b)          The Security Interest is granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or
in any way alter or modify, any obligation or liability of any Pledgor with respect to or arising out of the Article 9 Collateral.

(c)          Notwithstanding anything to the contrary in this Agreement or the Credit Agreement Documents, (1) no landlord, mortgagee or bailee
waivers shall be required, (2) no Pledgor shall be required to take any action under the laws of any jurisdiction other than the United
States of America (or, in each case, any political subdivision thereof) for the purpose of perfecting the Security Interest in any Collateral
of such Pledgor or any other assets and (3) no notice shall be required to be sent to insurers, account debtors or other contractual third
parties when no Event of Default has occurred and is continuing. For the avoidance of doubt, the Pledgors’ obligations with respect
to perfection of the Collateral Agent’s security interest in Deposit Accounts and Securities Accounts shall be governed by Section
5.11 of the Credit Agreement and not by the terms of this Agreement.

SECTION 3.02.       
Representations and Warranties. The Pledgors jointly and severally represent and warrant to the Collateral
Agent, for the benefit of the Secured Parties, that:

(a)          Each Pledgor has good and valid rights in and title to the Article 9 Collateral with respect to which it has purported to
grant a Security Interest hereunder, except where the failure to have such rights and title would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, and has full power and authority to grant to the Collateral Agent the Security
Interest in such Article 9 Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the
terms of this Agreement, without the consent or approval of any other person as of the Closing Date other than any consent or approval
that has been obtained and is in full force and effect or has otherwise been disclosed herein or in the Credit Agreement.

(b)          The Perfection Certificate has been duly prepared, completed and executed and the information set forth therein, including the
exact legal name of each Pledgor as of the Closing Date, is correct and complete, in all material respects, as of the Closing Date. Except
as provided in Section 5.09 of the Credit Agreement, the Uniform Commercial Code financing statements or other appropriate filings, recordings
or registrations containing a description of the Article 9 Collateral that have been prepared for filing in each governmental, municipal
or other office specified in the Perfection Certificate constitute (to the extent such Article 9 Collateral can be perfected by filing
under the Uniform Commercial Code) all the filings, recordings and registrations (other than filings required to be made in the United
States Patent and Trademark Office and the

    	 	13	 

     

    

United States Copyright Office in order to
perfect the Security Interest in Article 9 Collateral consisting of United States Patents, United States registered Trademarks and
United States registered Copyrights) that are necessary as of the Closing Date to publish notice of and protect the validity of and to
establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in
respect of all Article 9 Collateral in which the Security Interest may be perfected by filing, recording or registration in the United
States (or any political subdivision thereof), and no further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation
statements or amendments. Except as provided in Section 5.09 of the Credit Agreement, each Pledgor represents and warrants that the Notices
of Grant of Security Interest in Intellectual Property executed by the applicable Pledgors containing descriptions of all Article 9
Collateral that consists of material United States federally issued Patents (and material Patents for which United States federal registration
applications are pending), material United States federally registered Trademarks (and material Trademarks for which United States federal
registration applications are pending) and material United States federally registered Copyrights (and material Copyrights for which United
States federal registration applications are pending) have been delivered to the Collateral Agent for recording with the United States
Patent and Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060
or 17 U.S.C. § 205 and the regulations thereunder, as applicable, and reasonably requested by the Collateral Agent, to
protect the validity of and to establish a legal, valid and perfected security interest (or, in the case of Patents and Trademarks, notice
thereof) in favor of the Collateral Agent, for the benefit of the Secured Parties, in respect of all Article 9 Collateral consisting
of such Intellectual Property as of the Closing Date in which a security interest may be perfected by recording with the United States
Patent and Trademark Office and the United States Copyright Office, and no further or subsequent filing, refiling, recording, rerecording,
registration or reregistration is necessary (other than such actions as are necessary to perfect the Security Interest with respect to
any Article 9 Collateral consisting of material United States federally issued, registered or pending Patents, Trademarks and Copyrights
acquired or developed after the Closing Date).

(c)          The Security Interest constitutes (i) a valid security interest in all the Article 9 Collateral securing the payment
and performance of the Secured Obligations, as applicable, (ii) subject to the filings described in Section 3.02(b), as of the
Closing Date a perfected security interest in all Article 9 Collateral in which a security interest may be perfected by filing, recording
or registering a financing statement or analogous document in the United States (or any political subdivision thereof) pursuant to the
Uniform Commercial Code or other applicable law in such jurisdictions and (iii) a security interest that shall be perfected in all Article
9 Collateral in which a security interest may be perfected upon the receipt and recording of the Notices of Grant of Security Interest
in Intellectual Property with the United States Patent and Trademark Office and the United States Copyright Office, as applicable. The
Security Interest is and shall be prior to any other Lien on any of the Article 9 Collateral other than Permitted Liens.

(d)          The Article 9 Collateral is owned by the Pledgors free and clear of any Lien, other than Permitted Liens. None of the Pledgors
has filed or consented to the

    	 	14	 

     

    

filing of (i) any financing statement
or analogous document under the Uniform Commercial Code or any other applicable laws covering any Article 9 Collateral, (ii) any
assignment in which any Pledgor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9
Collateral with the United States Patent and Trademark Office or the United States Copyright Office for the benefit of a third party or
(iii) any assignment in which any Pledgor assigns any Article 9 Collateral or any security agreement or similar instrument covering
any Article 9 Collateral with any foreign governmental, municipal or other office, which financing statement or analogous document,
assignment, security agreement or similar instrument is still in effect, except, in each case, for Permitted Liens.

(e)          None of the Pledgors holds any Commercial Tort Claim individually reasonably estimated to exceed $1,500,000 as of the Closing Date
except as indicated on Schedule IV.

(f)           As to itself and its Article 9 Collateral consisting of Intellectual Property (the “Intellectual Property Collateral”),
to each Pledgor’s knowledge:

(i)          The Intellectual Property Collateral set forth on Schedule III includes a true and complete list of all of the material
issued and applied for United States federal Patents, material registered and applied for United States federal Trademarks and material
United States federal registered Copyrights owned by such Pledgor as of the Closing Date.

(ii)         The Intellectual Property Collateral is subsisting and, to the best of such Pledgor’s knowledge, is valid and enforceable,
except as would not reasonably be expected to have a Material Adverse Effect. Such Pledgor is not aware of any current uses of any item
of Intellectual Property Collateral that would be expected to lead to such item becoming invalid or unenforceable, except as would not
reasonably be expected to have a Material Adverse Effect.

(iii)        Except as would not reasonably be expected to have a Material Adverse Effect, (A) such Pledgor has made or performed all commercially
reasonable acts, including without limitation filings, recordings and payment of all required fees and taxes, required to maintain and
protect its interest in each and every item of Intellectual Property Collateral in full force and effect in the United States and (B)
such Pledgor has used proper statutory notice in connection with its use of each Patent, Trademark and Copyright in the Intellectual Property
Collateral.

(iv)        Except
as would not reasonably be expected to have a Material Adverse Effect, no Intellectual Property Collateral is subject to any outstanding
consent, settlement, decree, order, injunction, judgment or ruling restricting the use of any Intellectual Property Collateral or that
would impair the validity or enforceability of such Intellectual Property Collateral.

    	 	15	 

     

    

SECTION 3.03.       
Covenants. (a) Each Pledgor agrees promptly to notify the Collateral Agent in writing of any change (i) in
its corporate or organization name, (ii) in its identity or organizational structure, (iii) in its organizational identification
number, (iv) in its jurisdiction of organization or (v) if such Pledgor is not a registered organization, in the location of its chief
executive office.

(b)          Subject to any rights of such Pledgor to Dispose of Collateral provided for in the Credit Agreement Documents, each Pledgor shall,
at its own expense, use commercially reasonable efforts to defend title to the Article 9 Collateral against all persons and to defend
the Security Interest of the Collateral Agent, for the benefit of the Secured Parties, in the Article 9 Collateral and the priority
thereof against any Lien that is not a Permitted Lien.

(c)          Each Pledgor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments
and documents and take all such actions as the Collateral Agent may from time to time reasonably request to better assure, preserve, protect,
defend and perfect (with respect to perfection only, subject to Sections 3.01(b) and 3.01(c)) the Security Interest and the rights and
remedies created hereby, including the payment of any fees and taxes required in connection with the execution and delivery of this Agreement
and the granting of the Security Interest and the filing of any financing statements (including fixture filings) or other documents in
connection herewith or therewith, all in accordance with the terms hereof and the terms of the Credit Agreement.

Without limiting the generality
of the foregoing, each Pledgor hereby authorizes the Collateral Agent, with prompt notice thereof to the Pledgors, to supplement this
Agreement by supplementing or amending Schedule III or adding additional schedules hereto to specifically identify any asset
or item that may constitute an issued or applied for United States federal Patent, registered or applied for United States federal Trademark
or registered United States federal Copyright owned by such Pledgor.

(d)          After the occurrence of an Event of Default and during the continuance thereof, the Collateral Agent shall have the right to verify
under reasonable procedures the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to,
the Article 9 Collateral, including, in the case of Accounts or Article 9 Collateral in the possession of any third person,
by contacting Account Debtors or the third person possessing such Article 9 Collateral for the purpose of making such a verification.
The Collateral Agent shall have the right to share any information it gains from such inspection or verification with any Secured Party,
subject to Section 9.16 of the Credit Agreement.

(e)          The Collateral Agent may discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances
at any time levied or placed on the Article 9 Collateral and not a Permitted Lien, and may pay for the maintenance and preservation
of the Article 9 Collateral to the extent any Pledgor fails to do so as required by the Credit Agreement, this Agreement, and each
Pledgor jointly and severally agrees to reimburse the Collateral Agent on demand for any reasonable and documented payment

    	 	16	 

     

    

made or any reasonable and documented out-of-pocket
expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided, however, that nothing in this
Section 3.03(e) shall be interpreted as excusing any Pledgor from the performance of, or imposing any obligation on the Collateral
Agent or any Secured Party to cure or perform, any covenants or other promises of any Pledgor with respect to taxes, assessments, charges,
fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Credit Agreement Documents.

(f)          Each Pledgor (rather than the Collateral Agent or any Secured Party) shall remain liable for the observance and performance of
all the conditions and obligations to be observed and performed by it under each contract, agreement or instrument relating to the Article 9
Collateral and each Pledgor jointly and severally agrees to indemnify and hold harmless the Collateral Agent and the Secured Parties from
and against any and all liability for such performance.

(g)         None of the Pledgors shall make or permit to be made an assignment, pledge or hypothecation of the Article 9 Collateral or
shall grant any other Lien in respect of the Article 9 Collateral, except as not prohibited by the Credit Agreement. None of the
Pledgors shall make or permit to be made any transfer of the Article 9 Collateral, except as not prohibited by the Credit Agreement,
or any Intercreditor Agreement.

(h)         Each Pledgor irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated
by the Collateral Agent) as such Pledgor’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance
of an Event of Default of making, settling and adjusting claims in respect of Article 9 Collateral under policies of insurance, endorsing
the name of such Pledgor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for
making all determinations and decisions with respect thereto. In the event that any Pledgor at any time or times shall fail to obtain
or maintain any of the policies of insurance required by the Credit Agreement Documents or to pay any premium in whole or part relating
thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of the Pledgors hereunder or any Event of
Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect
thereto as the Collateral Agent reasonably deems advisable. Subject to Section 9.05 of the Credit Agreement, all sums disbursed by the
Collateral Agent in connection with this Section 3.03(h), including reasonable and documented attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by the Pledgors to the Collateral Agent and shall be additional
Secured Obligations secured hereby.

SECTION 3.04.       
Other Actions. In order to further ensure the attachment, perfection and priority of, and the ability
of the Collateral Agent to enforce, for the benefit of the Secured Parties, the Security Interest in the Article 9 Collateral, each Pledgor
agrees, in each case at such Pledgor’s own expense, to take the following actions with respect to the following Article 9 Collateral:

    	 	17	 

     

    

(a)          Instruments
and Tangible Chattel Paper. If any Pledgor shall at any time own or acquire any Instruments (other than instruments evidencing debt
obligations which are governed by Article II and checks received and processed in the ordinary course of business) or Tangible Chattel
Paper evidencing an amount in excess of $1,000,000, such Pledgor shall promptly (and in any event within 45 days of its acquisition or
such longer period as the Administrative Agent may permit in its reasonable discretion) notify the Collateral Agent and promptly (and
in any event within 5 days following such notice or such longer period as the Administrative Agent may permit in its reasonable discretion)
endorse, assign and deliver the same to the Collateral Agent, accompanied by such instruments of transfer or assignment duly executed
in blank as the Collateral Agent may from time to time reasonably request.

(b)          Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a Commercial Tort Claim in an amount reasonably
estimated to exceed $1,500,000, such Pledgor shall promptly notify the Collateral Agent thereof in a writing signed by such Pledgor, including
a summary description of such claim, and deliver to the Collateral Agent in writing a supplement to Schedule IV including such
description.

SECTION 3.05.       
Covenants Regarding Patent, Trademark and Copyright Collateral. Except as not prohibited by the Credit Agreement:

(a)          Each Pledgor agrees that it will not knowingly do any act or omit to do any act (and will exercise commercially reasonable efforts
to prevent its licensees from doing any act or omitting to do any act) whereby any Patent that is owned by such Pledgor and is that is
owned by such Pledgor and is material to the normal conduct of such Pledgor’s business may become prematurely invalidated, abandoned,
lapsed or dedicated to the public.

(b)          Each Pledgor will, and will use its commercially reasonable efforts to cause its licensees or its sublicensees to, for each Trademark
that is owned by such Pledgor and is material to the normal conduct of such Pledgor’s business, (i) maintain such Trademark
in full force free from any adjudication of abandonment or invalidity for non-use (other than by expiration as permitted by the Credit
Agreement) and (ii) maintain the quality of products and services offered under such Trademark in a manner consistent with the operation
of such Pledgor’s business.

(c)          Each Pledgor shall promptly notify the Collateral Agent if it knows that any United States federally issued or applied for Patent,
United States federally registered or applied for Trademark or United States federally registered Copyright that is owned by such Pledgor
and is material to the normal conduct of such Pledgor’s business may imminently become abandoned, lapsed or dedicated to the public,
or of any materially adverse determination or development, excluding non-final office actions in the ordinary course of such Pledgor’s
business and similar determinations or developments in the United States Patent and Trademark Office, United States Copyright Office,
any court or any similar office of any country, regarding such Pledgor’s ownership of any such material Patent, Trademark or Copyright
or its right to register or to maintain the same.

    	 	18	 

     

    

(d)          Each
Pledgor, either by itself or through any agent, employee, licensee or designee, shall (i) inform the Collateral Agent on an annual
basis of each application for, or registration or issuance of, any Patent or Trademark with the United States Patent and Trademark Office
and each registration of any Copyright with the United States Copyright Office filed by or on behalf of, or issued to, or acquired by,
any Pledgor during the preceding twelve-month period, and (ii) upon the reasonable request of the Collateral Agent, execute and
deliver the Notice of Grant of Security Interest in Intellectual Property substantially in the form attached hereto as Exhibit II
and any and all agreements, instruments, documents and papers necessary or as the Collateral Agent may otherwise reasonably request
to evidence the Collateral Agent’s Security Interest in such Patent, Trademark or Copyright and the perfection thereof, provided
that the provisions hereof shall automatically apply to any such Patent, Trademark or Copyright and any such Patent, Trademark or
Copyright shall automatically constitute Collateral as if such would have constituted Collateral at the time of execution hereof and
be subject to the Lien and Security Interest created by this Agreement without further action by any party. Notwithstanding anything
to the contrary herein, no Pledgor shall be required to take any action under the laws of any jurisdiction other than the United States
of America for the purpose of perfecting the Collateral Agent’s security interest in the Intellectual Property collateral of such
Pledgor.

(e)          Each Pledgor shall exercise its reasonable business judgment consistent with its past practice in any proceeding before the United
States Patent and Trademark Office or the United States Copyright Office with respect to maintaining and pursuing each application relating
to any Patent, Trademark and/or Copyright (and obtaining the relevant grant or registration) material to the normal conduct of such Pledgor’s
business and to maintain (i) each United States federally issued Patent that is material to the normal conduct of such Pledgor’s
business and (ii) the registrations of each United States federally registered Trademark and each United States federally registered
Copyright that is material to the normal conduct of such Pledgor’s business, including, when applicable and necessary in such Pledgor’s
reasonable business judgment, timely filings of applications for renewal, affidavits of use, affidavits of incontestability and payment
of maintenance fees, and, if any Pledgor believes necessary in its reasonable business judgment, to initiate opposition, interference
and cancellation proceedings against third parties.

(f)           In the event that any Pledgor becomes aware that any Article 9 Collateral consisting of an owned Patent, Trademark or Copyright
material to the normal conduct of its business has been materially infringed, misappropriated or diluted by a third party, such Pledgor
shall notify the Collateral Agent within ninety (90) days of becoming aware thereof (or such longer period as the Collateral Agent may
reasonably agree) and shall, if such Pledgor deems it necessary in its reasonable business judgment, promptly sue and recover any and
all damages, and take such other actions as are reasonably appropriate under the circumstances.

(g)          Upon and during the continuance of an Event of Default, at the reasonable request of the Collateral Agent, each Pledgor shall use
commercially reasonable efforts to obtain all requisite consents or approvals from each licensor under each material

    	 	19	 

     

    

license of Copyrights, Patents or Trademarks
to which the Pledgor is party to effect the assignment of all such Pledgor’s right, title and interest thereunder to (in the Collateral
Agent’s sole discretion) the designee of the Collateral Agent or the Collateral Agent; provided, however, that nothing contained
in this Section 3.05(g) should be construed as an obligation of any Pledgor to incur any costs or expenses in connection with obtaining
such approval.

(h)          Notwithstanding
the foregoing provisions of this Section 3.05, nothing in this Section 3.05 shall prevent any Pledgor from abandoning or discontinuing
the use or maintenance of any of its Intellectual Property if such Pledgor has determined in good faith in its reasonable business judgment
to do so and such abandonment or discontinuation is in compliance with the Credit Agreement.

ARTICLE
IV

Remedies

SECTION 4.01.       
Remedies Upon Default. In accordance with, and to the extent consistent with, the terms of any applicable
Intercreditor Agreement, the Collateral Agent may take any action specified in this Section 4.01. Upon the occurrence and during the
continuance of an Event of Default, each Pledgor agrees to deliver each item of Collateral to the Collateral Agent on demand. It
is agreed that the Collateral Agent shall have the right to take any of or all the following actions at the same or different times:
(a) with respect to any Article 9 Collateral consisting of Intellectual Property, on demand, to cause the Security Interest
to become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable Pledgors to the Collateral
Agent or to license or sublicense (subject to any such licensee’s obligation to maintain the quality of the goods and/or services
provided under any Trademark consistent with the quality of such goods and/or services provided by the Pledgors immediately prior to
the Event of Default), whether general, special or otherwise, and whether on an exclusive or a nonexclusive basis, any such Article 9
Collateral throughout the world on such terms and conditions and in such manner as the Collateral Agent shall determine (other than in
violation of any then-existing licensing or trademark co-existence arrangements to the extent that waivers thereunder cannot be obtained
with the use of commercially reasonable efforts, which each Pledgor hereby agrees to use) and (b) with or without legal process
and with or without prior notice or demand for performance, to take possession of the Article 9 Collateral and without liability
for trespass to the applicable Pledgor to enter any premises where the Article 9 Collateral may be located for the purpose of taking
possession of or removing the Article 9 Collateral and, generally, to exercise any and all rights and remedies afforded to a secured
party under the applicable Uniform Commercial Code and/or other applicable law and/or in equity. The Collateral Agent agrees and covenants
not to exercise any of the rights or remedies set forth in the preceding sentence unless and until the occurrence and during the continuance
of an Event of Default. Without limiting the generality of the foregoing, each Pledgor agrees that the Collateral Agent shall have the
right, subject to the mandatory requirements of applicable law, but without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind

    	 	20	 

     

    

(except any notice required by law referred
to below) to or upon the Pledgors, the Borrower, or any other person (all and each of which demands, defenses, advertisements and notices
are hereby waived), to forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or to forthwith
sell or otherwise Dispose of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities
exchange, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent shall be authorized
in connection with any sale of a security (if it deems it advisable to do so) pursuant to the foregoing to restrict the prospective bidders
or purchasers to persons who represent and agree that they are purchasing such security for their own account, for investment, and not
with a view to the distribution or sale thereof. Upon consummation of any such Disposition of Collateral pursuant to this Section 4.01,
the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold
(other than in violation of any then-existing licensing or trademark co-existence arrangements to the extent that waivers thereunder cannot
be obtained with the use of commercially reasonable efforts, which each Pledgor hereby agrees to use). Each such purchaser at any such
Disposition shall hold the property sold absolutely, free from any claim or right on the part of any Pledgor, and each Pledgor hereby
waives and releases (to the extent permitted by law) all rights of redemption, stay, valuation and appraisal that such Pledgor now has
or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.

To the extent any notice
is required by applicable law, the Collateral Agent shall give the applicable Pledgors 10 Business Days’ written notice (which each
Pledgor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions)
of the Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state the time
and place for such sale, in the case of a private sale, shall state the time after which the sale is to be made and, in the case of a
sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the
day on which the Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall
be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in
the notice (if any) of such sale. At any such sale, the Collateral, or the portion thereof, to be sold may be sold in one lot as an entirety
or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall not be
obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral
shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to
be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made
at the time and place to which the same was so adjourned. In the case of any sale of all or any part of the Collateral made on credit
or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the purchaser or
purchasers thereof, but the Collateral Agent shall not incur any liability in the event that any such purchaser or purchasers shall fail
to take up and pay for the Collateral so sold and, in the case of any such failure, such Collateral may be sold again upon notice given
in accordance with provisions above. At any public (or, to the extent permitted by law, private) sale made

    	 	21	 

     

    

pursuant to this Section 4.01, any Secured
Party may bid for or purchase for cash, free (to the extent permitted by law) from any right of redemption, stay, valuation or appraisal
on the part of any Pledgor (all such rights being also hereby waived and released to the extent permitted by law), the Collateral or any
part thereof offered for sale and such Secured Party may, upon compliance with the terms of sale, hold, retain and Dispose of such property
in accordance with Section 4.03 without further accountability to any Pledgor therefor. For purposes hereof, a written agreement
to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out
such sale pursuant to such agreement and no Pledgor shall be entitled to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been
remedied and the Secured Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Collateral
Agent, may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver.
Any sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially reasonable standards as provided
in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions.

Solely for the purpose of
enabling the Collateral Agent, during the continuance of an Event of Default to exercise rights and remedies hereunder at such time as
the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Pledgor hereby grants
to the Collateral Agent a non-exclusive license to use, license or sublicense (solely as permitted by the terms of any applicable license)
any of the Intellectual Property Collateral now owned or hereafter acquired by such Pledgor, wherever the same may be located; provided
that, with respect to Trademarks, such Pledgor shall have such rights of quality control which are reasonably necessary under applicable
law to maintain the validity and enforceability of such Trademarks. Such license shall include access to all media in which any of the
licensed items may be recorded or stored and to all computer programs used for the compilation or printout hereof.

SECTION 4.02.       
Application of Proceeds. The Collateral Agent shall, subject to any applicable Intercreditor Agreement,
promptly apply the proceeds, moneys or balances of any collection or sale of Collateral realized through the exercise by the Collateral
Agent of its remedies hereunder, as well as any Collateral consisting of cash at any time when remedies are being exercised hereunder,
in the order set forth in Section 7.02 of the Credit Agreement. The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the Collateral
Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by
the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over
to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof

    	 	22	 

     

    

SECTION 4.03.       
Securities Act, Etc. In view of the position of the Pledgors in relation
to the Pledged Collateral, or because of other current or future circumstances, a question may arise under the Securities Act of 1933,
as amended, or any similar federal statute hereafter enacted analogous in purpose or effect (such Securities Act and any such similar
statute as from time to time in effect being called the “Federal Securities Laws”)
with respect to any Disposition of the Pledged Collateral permitted hereunder. Each Pledgor understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to Dispose
of all or any part of the Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent transferee
of any Pledged Collateral could Dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Collateral
Agent in any attempt to Dispose of all or part of the Pledged Collateral under applicable Blue Sky or other state securities laws or
similar laws analogous in purpose or effect. Each Pledgor acknowledges and agrees that in light of such restrictions and limitations,
the Collateral Agent, subject to the terms of any applicable Intercreditor Agreement, in its sole and absolute discretion, (a) may
proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or part thereof
shall have been filed under the Federal Securities Laws or, to the extent applicable, Blue Sky or other state securities laws and (b) may
approach and negotiate with a single potential purchaser to effect such sale. Each Pledgor acknowledges and agrees that any such sale
might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions. In
the event of any such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any part of the Pledged
Collateral at a price that the Collateral Agent, subject to the terms of any applicable Intercreditor Agreement, in its sole and absolute
discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price
might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached.
The provisions of this Section 4.03 will apply notwithstanding the existence of a public or private market upon which the quotations
or sales prices may exceed substantially the price at which the Collateral Agent sells.

ARTICLE
V

Miscellaneous

SECTION 5.01.       
Notices. All communications and notices hereunder shall (except as otherwise expressly permitted
herein) be in writing and given as provided in Section 9.01 of the Credit Agreement. All communications and notices hereunder to
any Pledgor shall be given to it in care of the Borrower, with such notice to be given as provided in Section 9.01 of the Credit Agreement.

SECTION 5.02.       
Security Interest Absolute. To the extent permitted by law, all rights of the Collateral Agent hereunder,
the Security Interest in the Article 9 Collateral, the security interest in the Pledged Collateral and all obligations of each Pledgor
hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of any Credit Agreement
Document, any other agreement with respect to

    	 	23	 

     

    

any of the Secured Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from any Credit Agreement
Document, any Intercreditor Agreement or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien
on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing
all or any of the Secured Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any Pledgor in respect of the Secured Obligations or this Agreement (other than a defense of payment or performance).

SECTION 5.03.       
Limitation By Law. All rights, remedies and powers provided in this Agreement may be exercised only
to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Agreement are
intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary
so that they shall not render this Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered
or filed under the provisions of any applicable law.

SECTION 5.04.       
Binding Effect; Several Agreements. This Agreement shall become effective as to any party to this
Agreement when a counterpart hereof executed on behalf of such party shall have been delivered to the Collateral Agent and a counterpart
hereof shall have been executed on behalf of the Collateral Agent, and thereafter shall be binding upon such party and the Collateral
Agent and their respective permitted successors and assigns, and shall inure to the benefit of such party, the Collateral Agent and the
other Secured Parties and their respective permitted successors and assigns, except that no party shall have the right to assign or transfer
its rights or obligations hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except
as not prohibited by this Agreement or any Credit Agreement Document. This Agreement shall be construed as a separate agreement with
respect to each party and may be amended, modified, supplemented, waived or released in accordance with Section 5.09 or 5.15, as applicable.

SECTION 5.05.       
Successors and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the permitted successors and assigns of such party and all covenants, promises and agreements by
or on behalf of any Pledgor or the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of their
respective permitted successors and assigns, provided that no Pledgor may assign, transfer or delegate any of its rights or obligations
under this Agreement except as permitted by Section 5.04.

SECTION 5.06.       
Collateral Agent’s Fees and Expenses; Indemnification.

(a)          The parties hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred hereunder by the
Pledgors, and the Collateral Agent

    	 	24	 

     

    

and other Indemnitees shall be indemnified
by the Pledgors, in each case of this clause (a), mutatis mutandis, as provided in Section 9.05 of the Credit Agreement.

(b)          Any such amounts payable as provided hereunder shall be additional Secured Obligations secured hereby and by the other Security
Documents. The provisions of this Section 5.06 shall remain operative and in full force and effect regardless of the termination
of this Agreement, any other Credit Agreement Document, the consummation of the transactions contemplated hereby, the repayment of any
of the Secured Obligations, the invalidity or unenforceability of any term or provision of this Agreement, any other Credit Agreement
Document, or any investigation made by or on behalf of the Collateral Agent or any other Secured Party. All amounts due under this Section 5.06
shall be payable within fifteen days (or such longer period as the Administrative Agent may agree) of written demand therefor accompanied
by reasonable documentation with respect to any reimbursement, indemnification or other amount requested.

(c)          The agreements in this Section 5.06 shall survive the resignation of the Collateral Agent and the termination of this Agreement.

(d)          For the avoidance of doubt, the provisions of Article VIII of the Credit Agreement shall also apply to the Collateral Agent acting
under or in connection with this Agreement. No provision of this Agreement shall require the Collateral Agent to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights
or powers.

SECTION 5.07.       
Collateral Agent Appointed Attorney-in-Fact. Subject to any applicable Intercreditor Agreement, each
Pledgor hereby appoints the Collateral Agent the attorney-in-fact of such Pledgor, such appointment to be effective upon the occurrence
and during the continuance of an Event of Default, for the purpose of carrying out the provisions of this Agreement and, upon the occurrence
and during the continuance of an Event of Default, taking any action and executing any instrument that the Collateral Agent may deem
necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest. Without limiting
the generality of the foregoing, subject to applicable Requirements of Law and any applicable Intercreditor Agreement, the Collateral
Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of substitution either
in the Collateral Agent’s name or in the name of such Pledgor, (a) to receive, endorse, assign or deliver any and all notes, acceptances,
checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (b) to demand, collect,
receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to ask for, demand, sue
for, collect, receive and give acquittance for any and all moneys due or to become due under and by virtue of any Collateral; (d) to
sign the name of any Pledgor on any invoice or bill of lading relating to any of the Collateral; (e) to send verifications of Accounts
to any Account Debtor; (f) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise, realize on all or any of the Collateral or to enforce any rights in respect of any Collateral;
(g) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral;
(h) to notify, or to require any Pledgor

    	 	25	 

     

    

to notify, Account Debtors to make payment
directly to the Collateral Agent; and (i)  to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise
deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as
fully and completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided that nothing
herein contained shall be construed (i) as requiring or obligating the Collateral Agent to make any commitment or to make any inquiry
as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take
any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered
thereby or (ii) as permitting the Collateral Agent to exercise or delegate operational voting or other control over any Collateral. The
Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of
the powers granted to them herein, and neither they nor their officers, directors, employees or agents shall be responsible to any Pledgor
for any act or failure to act hereunder, except for their own or their Related Parties’ gross negligence or willful misconduct.

SECTION 5.08.       
Governing Law. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSES OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION
OF ANY OTHER LAW.

SECTION 5.09.       
Waivers; Amendment. (a) No failure or delay by the Collateral Agent or any other
Secured Party in exercising any right, power or remedy hereunder or under any other Credit Agreement Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or remedy, or any abandonment or discontinuance of steps to
enforce such a right, power or remedy, preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
The rights, powers and remedies of the Collateral Agent and the other Secured Parties hereunder and under the other Credit Agreement
Documents are cumulative and are not exclusive of any rights, powers or remedies that they would otherwise have. No waiver of any provision
of this Agreement or consent to any departure by any Pledgor therefrom shall in any event be effective unless the same shall be permitted
by paragraph (b) of this Section 5.09, and then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or the Issuance of a Letter of
Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Collateral Agent or any other
Secured Party may have had notice or knowledge of such Default or Event of Default at the time. No notice or demand on any Pledgor in
any case shall entitle any Pledgor to any other or further notice or demand in similar or other circumstances.

(b)          Neither this Agreement nor any provision hereof may be waived, amended or modified (other than as provided in Section 5.15 and
Section 5.16) except as provided in Section 9.08 of the Credit Agreement. The Collateral Agent may conclusively

    	 	26	 

     

    

rely on a certificate of an officer of the
Borrower as to whether any amendment contemplated by this Section 5.09(b) is permitted.

(c)          Notwithstanding anything to the contrary contained herein, the Administrative Agent may grant extensions of time or waivers of
the requirement for the creation or perfection of security interests in or the obtaining of insurance (including title insurance) or surveys
with respect to particular assets (including extensions beyond the Closing Date for the perfection of security interests in the assets
of the Pledgors on such date) where it reasonably determines, in consultation with the Borrower, that perfection or obtaining of such
items cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required by this Agreement,
the other Credit Agreement Documents.

SECTION 5.10.       
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR, ANY OTHER CREDIT AGREEMENT DOCUMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.10.

SECTION 5.11.       
Severability. In the event any one or more of the provisions contained in this Agreement, any other
Credit Agreement Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

SECTION 5.12.       
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute
an original but all of which when taken together shall constitute but one contract, and shall become effective as provided in Section 5.04.
Delivery of an executed counterpart to this Agreement by facsimile or other electronic transmission shall be as effective as delivery
of a manually signed original.

SECTION 5.13.       
Headings. Article and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

    	 	27	 

     

    

SECTION 5.14.       
Jurisdiction; Consent to Service of Process. (a) Each party to this Agreement
hereby irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description,
whether in law or equity, whether in contract or in tort or otherwise, against any other party or any affiliate thereof, in any way relating
to this Agreement, any other Credit Agreement Document or the transactions relating hereto or thereto, in any forum other than the courts
of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such
courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York
State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final
judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

(b)          Each party to this Agreement hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement, any other Credit Agreement Document in any New York State or federal court sitting in New York County and any appellate
court from any thereof. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

(c)          Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 5.01. Nothing
in this Agreement, any other Credit Agreement Document will affect the right of any party to this Agreement, any other Credit Agreement
Document to serve process in any other manner permitted by law.

SECTION 5.15.       Termination
or Release. In each case subject to the terms of any applicable Intercreditor Agreement:

(a)          This Agreement and the pledges made by the Pledgors herein and all other security interests granted by the Pledgors hereby shall
automatically terminate and be released upon the occurrence of the Termination Date.

(b)          A Pledgor shall automatically be released from its obligations hereunder and/or the security interests in any Collateral in each
case be automatically released upon the occurrence of any of the circumstances set forth in Section 9.18 of the Credit Agreement pursuant
to and in accordance with the terms thereof.

(c)          In connection with any termination or release pursuant to this Section 5.15, the Collateral Agent shall execute and deliver to
any Pledgor all documents that such Pledgor shall reasonably request to evidence such termination or release (including Uniform Commercial
Code termination statements), and will duly assign and

    	 	28	 

     

    

transfer to such Pledgor, such of the Pledged
Collateral that may be in the possession of the Collateral Agent and has not theretofore been sold or otherwise applied or released pursuant
to this Agreement. Any execution and delivery of documents pursuant to this Section 5.15 shall be made without recourse to or warranty
by the Collateral Agent. Upon the receipt of any necessary or proper instruments of termination, satisfaction or release prepared by the
Borrower, the Collateral Agent shall promptly execute, deliver or acknowledge such instruments or releases to evidence the release of
any Collateral permitted to be released pursuant to this Agreement. The Pledgors agree to pay all reasonable and documented out-of-pocket
expenses incurred by the Collateral Agent (and its representatives and counsel) in connection with the execution and delivery of such
release documents or instruments.

SECTION 5.16.       
Additional Subsidiaries. Upon execution and delivery by any Subsidiary that is required or permitted
to become a party hereto by Section 5.09 of the Credit Agreement (or that is referred to in clause (b) of the definition of “Subsidiary
Loan Party” in the Credit Agreement) of an instrument substantially in the form of Exhibit I hereto (or another instrument
reasonably satisfactory to the Collateral Agent and the Borrower), such subsidiary shall become a Subsidiary Loan Party and Pledgor hereunder
with the same force and effect as if originally named as a Subsidiary Loan Party and a Pledgor herein. The execution and delivery of
any such instrument shall not require the consent of any other party to this Agreement. The rights and obligations of each party to this
Agreement shall remain in full force and effect notwithstanding the addition of any new party to this Agreement. Each reference to “Subsidiary
Loan Party” or “Pledgor ” in this Agreement shall be deemed to include such Subsidiary.

SECTION 5.17.       
General Authority of the Collateral Agent.

(a)          By acceptance of the benefits of this Agreement and any other Security Documents, each Secured Party (whether or not a signatory
hereto) shall be deemed irrevocably (i) to consent to the appointment of the Collateral Agent as its agent hereunder and under such other
Security Documents, (ii) to confirm that the Collateral Agent shall have the authority to act as the exclusive agent of such Secured Party
for the enforcement of any provision of this Agreement and such other Security Documents against any Pledgor, the exercise of remedies
hereunder or thereunder and the giving or withholding of any consent or approval hereunder or thereunder relating to any Collateral or
any Pledgor’s obligations with respect thereto, (iii) to agree that it shall not take any action to enforce any provisions of this
Agreement or any other Security Document against any Pledgor, to exercise any remedy hereunder or thereunder or to give any consents or
approvals hereunder or thereunder except as expressly provided in this Agreement or any other Security Document and (iv) to agree to be
bound by the terms of this Agreement and any other Security Documents and any applicable Intercreditor Agreement then in effect.

(b)          Each Pledgor acknowledges that the rights and responsibilities of the Collateral Agent under this Agreement with respect to any
action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting right, request, judgment
or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Collateral Agent and
the Secured

    	 	29	 

     

    

Parties, be governed by the Credit Agreement,
and such other agreements with respect thereto as may exist from time to time among them, but, as between the Collateral Agent and the
Pledgors, the Collateral Agent shall be conclusively presumed to be acting as agent for the applicable Secured Parties with full and valid
authority so to act or refrain from acting, and no Pledgor shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

SECTION 5.18.       
Subject to Intercreditor Agreements; Conflicts. Notwithstanding
anything else herein to the contrary, (i) the Liens and security interests granted to the Collateral Agent for the benefit of the Secured
Parties pursuant to this Agreement and (ii) the exercise of any right or remedy by the Collateral Agent hereunder or the application
of proceeds (including insurance and condemnation proceeds) of any Collateral, in each case, are subject to the limitations and provisions
of any applicable Intercreditor Agreement to the extent provided therein. In the event of any conflict between the terms of such applicable
Intercreditor Agreement and the terms of this Agreement, the terms of such applicable Intercreditor Agreement shall govern. 

 

[Signature Pages Follow]

    	 	30	 

     

    

 

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

 

 

	 	
    RED ROBIN GOURMET BURGERS, INC.

    a Delaware corporation
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	Executive Vice President, Chief Financial Officer and Chief Accounting Officer	 

 

 

	 	
    RED ROBIN INTERNATIONAL, INC.

    a Nevada corporation
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	President and Treasurer	 

 

 

	 	
    RED ROBIN NORTH HOLDINGS, INC.

    a Nevada corporation
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	President and Treasurer	 

 

 

	 	
    RED ROBIN WEST, INC.

    a Nevada corporation
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	President and Treasurer	 

 

 

	 	
    WESTERN FRANCHISE DEVELOPMENT, INC.

    a California corporation
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	President and Treasurer	 

 

 

    	 	[Signature Page to Pledge and Security Agreement]
	 

     

    

 

	 	
    RED ROBIN DISTRIBUTING COMPANY LLC

    a Nevada limited liability company
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	Manager	 

 

 

	 	
    NORTHWEST ROBINS, L.L.C.

    a Washington limited liability company

     

    By: RED ROBIN INTERNATIONAL, INC., Sole Member and Manager
    of Northwest Robins, L.L.C.
	 
	 	 	 	 
	 	By:	/s/ Lynn S. Schweinfurth	 
	 	Name:	Lynn S. Schweinfurth	 
	 	Title:	President and Treasurer	 

 

 

    	 	[Signature Page to Pledge and Security Agreement]
	 

     

    

 

	 	FORTRESS CREDIT CORP., as Collateral
Agent

	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Radhika Hulyalkar	 
	 		Name: Radhika Hulyalkar	 
	 		Title:  Authorized Signatory	 

 

 

    	 	[Signature Page to Pledge and Security Agreement]​
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Weis Markets, Inc. Retirement Savings Plan
​
SUMMARY PLAN DESCRIPTION
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1
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TABLE OF CONTENTS
​
INTRODUCTION TO YOUR PLAN
What kind of Plan is this?‌1
What information does this Summary provide?‌1
ARTICLE I
PARTICIPATION IN THE PLAN
How do I participate in the Plan?‌2
How is my service determined for purposes of Plan eligibility?‌3
What service is counted for purposes of Plan eligibility?‌4
What happens if I'm a Participant, terminate employment and then I'm rehired?‌5
ARTICLE II
EMPLOYEE CONTRIBUTIONS
What are salary deferrals and how do I contribute them to the Plan?‌5
What are "rollover" contributions?‌7
What are In-Plan Roth Conversions?‌7
What are InPlan Roth Rollover?‌8
What are InPlan Roth Rollover Transfers?‌8
ARTICLE III
EMPLOYER CONTRIBUTIONS
What is the Employer matching contribution and how is it allocated?‌8
What are forfeitures and how are they allocated?‌9
ARTICLE IV
COMPENSATION AND ACCOUNT BALANCE
What compensation is used to determine my Plan benefits?‌9
Is there a limit on the amount of compensation which can be considered?‌10
Is there a limit on how much can be contributed to my account each year?‌10
How is the money in the Plan invested?‌11
Will Plan expenses be deducted from my account balance?‌11
ARTICLE V
VESTING
What is my vested interest in my account?‌12
How is my service determined for vesting purposes?‌13
What service is counted for vesting purposes?‌14
What happens to my nonvested account balance if I'm rehired?‌14
What happens if the Plan becomes a "topheavy plan"?‌15
ARTICLE VI
DISTRIBUTIONS PRIOR TO TERMINATION AND HARDSHIP DISTRIBUTIONS
Can I withdraw money from my account while working?‌15
Can I withdraw money from my account in the event of financial hardship?‌15

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ARTICLE VII
BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT
When can I get money out of the Plan?‌17
What happens if I terminate employment before death, disability or retirement?‌18
What happens if I terminate employment at Normal Retirement Date?‌18
What happens if I terminate employment at Early Retirement Date?‌18
What happens if I terminate employment due to disability?‌19
How will my benefits be paid to me?‌19
ARTICLE VIII
BENEFITS AND DISTRIBUTIONS UPON DEATH
What happens if I die while working for the Employer?‌19
Who is the beneficiary of my death benefit?‌19
How will the death benefit be paid to my beneficiary?‌20
When must the last payment be made to my beneficiary?‌20
What happens if I'm a Participant, terminate employment and die before receiving all my benefits?‌20
ARTICLE IX
TAX TREATMENT OF DISTRIBUTIONS
What are my tax consequences when I receive a distribution from the Plan?‌20
Can I elect a rollover to reduce or defer tax on my distribution?‌21
ARTICLE X
LOANS
Is it possible to borrow money from the Plan?‌21
What are the loan rules and requirements?‌22
ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES
Are my benefits protected?‌23
Are there any exceptions to the general rule?‌23
Can the Plan be amended?‌23
What happens if the Plan is discontinued or terminated?‌24
How do I submit a claim for Plan benefits?‌24
What if my benefits are denied?‌24
What is the Claims Review Procedure?‌26
What are my rights as a Plan Participant?‌28
What can I do if I have questions or my rights are violated?‌29
ARTICLE XII
GENERAL INFORMATION ABOUT THE PLAN
Plan Name‌29
Plan Number‌29
Plan Effective Dates‌29
Other Plan Information‌30
Employer Information‌30

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Administrator Information‌30
Plan Trustee Information and Plan Funding Medium‌31
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Weis Markets, Inc. Retirement Savings Plan
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SUMMARY PLAN DESCRIPTION
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INTRODUCTION TO YOUR PLAN

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What kind of Plan is this?

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Weis Markets, Inc. Retirement Savings Plan ("Plan") has been adopted to provide you with the opportunity to save for retirement on a tax-advantaged basis. This Plan is a type of qualified retirement plan commonly referred to as a 401(k) Plan. 
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What information does this Summary provide?

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This Summary Plan Description ("SPD") contains information regarding when you may become eligible to participate in the Plan, your Plan benefits, your distribution options, and many other features of the Plan. You should take the time to read this SPD to get a better understanding of your rights and obligations under the Plan.
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In this Summary, your Employer has addressed the most common questions you may have regarding the Plan. If this SPD does not answer all of your questions, please contact the Administrator or other Plan representative. The Administrator is responsible for responding to questions and making determinations related to the administration, interpretation, and application of the Plan. The name and address of the Administrator can be found at the end of this SPD in the Article entitled "General Information About the Plan."
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This SPD describes the Plan's benefits and obligations as contained in the legal Plan document, which governs the operation of the Plan. The Plan document is written in much more technical and precise language and is designed to comply with applicable legal requirements. If the non-technical language in this SPD and the technical, legal language of the Plan document conflict, the Plan document always governs. If you wish to receive a copy of the legal Plan document, please contact the Administrator.
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The Plan and your rights under the Plan are subject to federal laws, such as the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, as well as some state laws. The provisions of the Plan are subject to revision due to a change in laws or due to pronouncements by the Internal Revenue Service (IRS) or Department of Labor (DOL). Your Employer may also amend or terminate this Plan. Your Employer will notify you if the provisions of the Plan that are described in this SPD change.
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Types of contributions. The following types of contributions may be made under this Plan:
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●Employee salary deferrals including Roth 401(k) deferrals
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●Employer matching contributions
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●Employee "rollover" contributions
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ARTICLE I
PARTICIPATION IN THE PLAN

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How do I participate in the Plan?

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Provided you are not an Excluded Employee, you may become a "Participant" in the Plan once you have satisfied the eligibility requirements and reached your "Entry Date." The following describes the eligibility requirements and Entry Dates that apply. You should contact the Administrator if you have questions about the timing of your Plan participation.
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All Contributions
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Entry Date. Your Entry Date will be the date on which you satisfy the eligibility requirements.
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Salary Deferrals
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Excluded Employees. If you are a member of a class of employees identified below, you are an Excluded Employee and you are not entitled to participate in the Plan for purposes of salary deferrals and "rollover" contributions. The Excluded Employees are:
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●union employees whose employment is governed by a collective bargaining agreement under which retirement benefits were the subject of good faith bargaining, unless the collective bargaining agreement requires the employee to be included within the Plan
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●certain nonresident aliens who have no earned income from sources within the United States
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●leased employees
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●temporary employees. However, if as a temporary employee, you complete one (1) Year of Service in any year of employment, you will no longer be part of this excluded class.
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●Individuals not directly employed by the Employer unless the direct employer elects to become a Participating Employer are excluded.
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See "Other Excluded Employee Provisions" at the end of this Section for special provisions that may apply in determining who is an Excluded Employee.
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Eligibility conditions. You will be eligible to participate for purposes of salary deferrals on your date of hire. However, you will actually become a Participant in the Plan once you reach the Entry Date as described above under "All Contributions".
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Employer Matching Contributions
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Excluded Employees. If you are a member of a class of employees identified below, you are an Excluded Employee and you are not entitled to participate in the Plan for purposes of matching contributions. The Excluded Employees are:
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●union employees whose employment is governed by a collective bargaining agreement under which retirement benefits were the subject of good faith bargaining, unless the collective bargaining agreement requires the employee to be included within the Plan
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●certain nonresident aliens who have no earned income from sources within the United States
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●leased employees
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●temporary employees. However, if as a temporary employee, you complete one (1) Year of Service in any year of employment, you will no longer be part of this excluded class.
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●Individuals not directly employed by the Employer unless the direct employer elects to become a Participating Employer are excluded.
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See "Other Excluded Employee Provisions" at the end of this Section for special provisions that may apply in determining who is an Excluded Employee.
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Eligibility conditions. You will be eligible to participate for purposes of matching contributions when you have satisfied the following eligibility condition(s). However, you will actually become a Participant in the Plan once you reach the Entry Date as described above under "All Contributions".
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●attainment of age 21.
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●completion of one (1) Year of Service.
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Other Excluded Employee Provisions
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For purposes of Employer Matching contributions, a Highly Compensated Employee who has held the title of chairman, vice chairman, president, chief operating officer or vice president with respect to the employer as of any day in the plan year on or before the allocation date are excluded
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How is my service determined for purposes of Plan eligibility?

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Year of Service. You will be credited with a Year of Service at the end of the twelve month period beginning on your date of hire if you have been credited with at least 1,000 Hours of Service during such period. If you have not been credited with 1,000 Hours of Service by the end of such period, you will have completed a Year of Service at the end of any following Plan Year during which you were credited with 1,000 Hours of Service.

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Hour of Service-employees for whom hourly records are kept. You will be credited with your actual Hours of Service for:
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(a)each hour for which you are directly or indirectly compensated by the Employer for the performance of duties during the Plan Year;
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(b)each hour for which you are directly or indirectly compensated by the Employer for reasons other than the performance of duties (such as vacation, holidays, sickness, disability, lay-off, military duty, jury duty or leave of absence during the Plan Year); and
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(c)each hour for back pay awarded or agreed to by the Employer.
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You will not be credited for the same Hours of Service both under (a) or (b), as the case may be, and under (c).
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Hour of Service employees for whom hourly records are not kept. The Plan does not credit you with your actual Hours of Service. Instead the Plan uses an "equivalency" method. Under this method you will be credited with credit basis upon which manner Records are Maintained.  By Shift - Actual Hours; By Day - 10 Hours; By Week; 45 Hours; By Semi-Monthly Payroll - 95 Hours; By Months of Employment - 190 Hours during the year in which you would otherwise be credited with at least one Hour of Service.
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What service is counted for purposes of Plan eligibility?

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Service with the Employer. In determining whether you satisfy the minimum service requirements to participate under the Plan, all service you perform for the Employer will generally be counted. However, there are some exceptions to this general rule.
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Break in Service rules. If you terminate employment and are rehired, you may lose credit for prior service under the Plan's Break in Service rules.
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For eligibility purposes, you will have a 1-Year Break in Service if you complete less than 501 Hours of Service during the computation period used to determine whether you have a Year of Service. However, if you are absent from work for certain leaves of absence such as a maternity or paternity leave, you may be credited with enough Hours of Service to prevent a Break in Service.
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Five-year eligibility Break in Service rule. The five-year Break in Service rule applies only to employees who had no vested interest in the Plan when employment had terminated. If you were not vested in any amounts when you terminated employment and you have five 1-Year Breaks in Service (as defined above), all the service you earned before the 5-year period no longer counts for eligibility purposes. Thus, if you were to return to employment after incurring five 1-Year Breaks in Service, you would have to resatisfy any minimum service requirements under the Plan.
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Service with another Employer. For eligibility purposes, your Years of Service with Kings Markets Strasburg Store (No. 159), Binghamton Giant Markets, Vestal NY Medicine Shoppe, Genuardi's Safeway and Hanover, PA Nell's Shur-Fine Market will be counted.
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However, with respect to the recognition of prior service with another Employer, the following applies: The employee must be employed by the predecessor employer as of the day immediately prior to the acquisition.
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Military service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. If you may be affected by this law, ask the Administrator for further details.
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What happens if I'm a Participant, terminate employment and then I'm rehired?

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If you are no longer a Participant because you terminated employment, and you are rehired, then you will be able to participate in the Plan on your date of rehire provided your prior service had not been disregarded under the Break in Service rules and you are otherwise eligible to participate in the Plan.
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ARTICLE II
EMPLOYEE CONTRIBUTIONS

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What are salary deferrals and how do I contribute them to the Plan?

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Salary deferrals. As a Participant under the Plan, you may elect to reduce your compensation by a specific percentage or dollar amount and have that amount contributed to the Plan as a salary deferral. There are two types of salary deferrals: Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. For purposes of this SPD, "salary deferrals" generally means both Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. Regardless of the type of deferral you make, the amount you defer is counted as compensation for purposes of Social Security taxes.
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Pre-Tax 401(k) deferrals. If you elect to make Pre-Tax 401(k) deferrals, then your taxable income is reduced by the deferral contributions so you pay less in federal income taxes. Later, when the Plan distributes the deferrals and earnings, you will pay the taxes on those deferrals and the earnings. Therefore, with a Pre-Tax 401(k) deferral, federal income taxes on the deferral contributions and on the earnings are only postponed. Eventually, you will have to pay taxes on these amounts.
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Roth 401(k) deferrals. If you elect to make Roth 401(k) deferrals, the deferrals are subject to federal income taxes in the year of deferral. However, the deferrals and, in most cases, the earnings on the deferrals are not subject to federal income taxes when distributed to you. In order for the earnings to be tax free, you must meet certain conditions. See "What are my tax consequences when I receive a distribution from the Plan?" below.
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Deferral procedure. The amount you elect to defer will be deducted from your pay in accordance with a procedure established by the Administrator. You may elect to defer a portion of your salary as of your Entry Date. Such election will become effective as soon as administratively feasible after it is received by the Administrator. Your election will generally remain in effect until you modify or terminate it.
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Deferral modifications. You are permitted to revoke your salary deferral election at any time during the Plan Year. You may make any other modification as of each payroll period or in accordance with any other procedure that your Employer provides. Any modification will become effective as soon as administratively feasible after it is received by the Administrator.
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Deferral Limit. As a Participant, you may elect to defer an amount from your compensation each year instead of receiving that amount in cash. You may defer not less than 1% and not more than 50% of your compensation. Such election will also apply to irregular pay (e.g., bonuses) unless a separate elective deferral election is made for irregular pay. The amount that you elect to defer from irregular pay cannot exceed 100% of your irregular compensation.
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Your total deferrals in any taxable year may not exceed a dollar limit which is set by law. The limit for 2022 is $20, 500. After 2022, the dollar limit may increase for cost-of-living adjustments. See the paragraph below on Annual dollar limit. However, highly compensated employees may only defer 4%; HCE annual deferrals can never exceed 4% of eligible compensation (except deferrals that are considered 

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Catch-Up Contributions. (Highly compensated employees are those employees who are generally more than 5% owners and certain family members (regardless of how much they earn), or individuals receiving wages in excess of certain amounts established by law.)
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Catch-up contributions. If you are at least age 50 or will attain age 50 before the end of a calendar year, then you may elect to defer additional amounts (called "catch-up contributions") to the Plan as of the January 1st of that year. The additional amounts may be deferred regardless of any other limitations on the amount that you may defer to the Plan. The maximum "catch-up contribution" that you can make in 2022 is $6,500. After 2022, the maximum may increase for cost-of-living adjustments.
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Automatic Deferral. The Plan includes an automatic salary deferral feature. Your Employer will automatically withhold a portion of your compensation from your pay each payroll period and contribute that amount to the Plan as a Pre-Tax 401(k) deferral. The Automatic Deferral provisions apply to all Participants who become a Participant in the Plan after the effective date of the Automatic Deferral provisions.
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Automatic Deferral provisions. The following provisions apply to these Automatic Deferrals:
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●You may complete a salary deferral agreement to elect an alternative deferral amount or to elect not to defer under the Plan in accordance with the deferral procedures of the Plan. Your election will generally remain in effect until you modify or terminate it. If your Employer automatically enrolled you and you did not want to participate in the Plan, then your Employer can refund your deferrals to you within 90 days of the first automatic deferral provided you notify your Employer within a reasonable period of time prior to the end of the 90 day period.
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●The amount to be automatically withheld from your pay each payroll period will be equal to 3% of your compensation.
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Special effective date for Automatic Deferral: The Eligible Automatic Enrollment feature was effective December 16, 2019.  Effective January 1, 2022. The Automatic Escalation of Deferrals was removed.
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Contact the Administrator if you have any questions concerning the application of Automatic Deferrals.
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Annual dollar limit. You should also be aware that each separately stated annual dollar limit on the amount you may defer (the annual deferral limit and the "catch-up contribution" limit) is a separate aggregate limit that applies to all such similar salary deferral amounts and "catch-up contributions" you may make under this Plan and any other cash or deferred arrangements (including tax-sheltered 403(b) annuity contracts, simplified employee pensions or other 401(k) plans) in which you may be participating. Generally, if an annual dollar limit is exceeded, then the excess must be returned to you in order to avoid adverse tax consequences. For this reason, it is desirable to request in writing that any such excess salary deferral amounts and "catch-up contributions" be returned to you.
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If you are in more than one plan, you must decide which plan or arrangement you would like to return the excess. If you decide that the excess should be distributed from this Plan, you must communicate this in writing to the Administrator not later than the March 1st following the close of the calendar year in which such excess deferrals were made. However, if the entire dollar limit is exceeded in this Plan or any other plan your Employer maintains, then you will be deemed to have notified the Administrator of the excess. The Administrator will then return the excess deferrals and any earnings to you by April 15th.
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Allocation of deferrals. The Administrator will allocate the amount you elect to defer to an account maintained on your behalf. You will always be 100% vested in this account (see the Article in this SPD entitled "Vesting"). This means that you will always be entitled to all amounts that you defer. This money will, however, be affected by any investment gains or losses. If there is an investment gain, then the balance in your account will increase. If there is an investment loss, then the balance in your account will decrease.
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Distribution of deferrals. The rules regarding distributions of amounts attributable to your salary deferrals are explained later in this SPD. However, if you are a highly compensated employee (generally more than 5% owners and certain family members (regardless of how 

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much they earn), or individuals receiving wages in excess of certain amounts established by law), a distribution of amounts attributable to your salary deferrals or certain excess contributions may be required to comply with the law. The Administrator will notify you when a distribution is required.
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What are "rollover" contributions?

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Rollover contributions. At the discretion of the Administrator, if you are a Participant who is currently employed or an Eligible Employee, you may be permitted to deposit into the Plan distributions you have received from other retirement plans and certain IRAs. Such a deposit is called a "rollover" contribution and may result in tax savings to you. You may ask the Administrator or Trustee of the other plan or IRA to directly transfer (a "direct rollover") to this Plan all or a portion of any amount that you are entitled to receive as a distribution from such plan. Alternatively, you may elect to deposit any amount eligible to be rolled over within 60 days of your receipt of the distribution. You should consult qualified counsel to determine if a rollover is in your best interest.
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Rollover account. Your "rollover" contribution will be accounted for in a "rollover account." You will always be 100% vested in your "rollover account" (see the Article in this SPD entitled "Vesting"). This means that you will always be entitled to all amounts in your "rollover account." Rollover contributions will be affected by any investment gains or losses.
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Withdrawal of "rollover" contributions. You may withdraw the amounts in your "rollover account" only when you are otherwise entitled to a distribution under the Plan. See "When can I get money out of the Plan?"
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What are In-Plan Roth Conversions?

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Ordinarily, you do not pay taxes on the contributions or earnings of your accounts attributable to your employer's contributions (including accounts attributable to Employer matching contributions and accounts attributable to Employer profit sharing contributions) until you receive an actual distribution from such accounts because such amounts are usually held in what is called "pre-tax" accounts. In other words, the taxes on the contributions and earnings in your pre-tax accounts are deferred until a distribution is made. Roth accounts, however, are the opposite. With a Roth account you pay current taxes on the amounts contributed. When a distribution is made to you from the Roth account, you do not pay taxes on the amounts you had contributed. In addition, if you have a "qualified Roth distribution", you also do not pay taxes on the earnings that are attributable to the contributions. See the Q&A called "What are my tax consequences when I receive a distribution from the Plan?" for the definition of a qualified Roth distribution.
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This Plan allows an In-Plan Roth conversion feature. That means that a portion of your funds that are already in one or more of your tax-deferred accounts under the Plan can be converted from a pre-tax basis to a Roth tax basis. For tax purposes, such recharacterized amounts will be treated by the Plan as if such funds had been Roth deferrals to your account, i.e., they will not be taxed at the time of distribution. That is because you will be taxed on the total amount being converted to a Roth tax basis for the year in which such conversion(s) are made.
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Once you make an election to convert an amount to a Roth tax basis, your election cannot be changed. It's important that you understand the tax effects of making the election and ensure you have adequate resources outside of the plan to pay the additional taxes. The In-Plan Roth transfer does not affect the timing of when a distribution may be made to you under the Plan; the transfer only changes the tax character of your account. You should consult with your tax advisor prior to making a transfer election.
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There are two conversion options available under the plan, In-plan Roth Rollovers and In-plan Roth Transfers. Each type of conversion is described in greater detail in the two Questions that immediately follow, because there are some technical differences between the two types.
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What are In-Plan Roth Rollovers?

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In-Plan Roth Rollovers. Effective December 16, 2019, if you are eligible for a distribution from an account, you may elect to roll over all or a portion of the distribution to a designated Roth contribution account in the Plan (referred to as an In-Plan Roth Rollover). You may only roll over the distribution directly. If you wish to convert all or a portion of a non-distributable account to a Roth tax basis, see the Question “What are In-Plan Roth Rollover Transfers?”
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The following limitations apply to the In-Plan Roth Rollovers:
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●Loans may not be distributed as part of the distribution.
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The law restricts any in-service distributions from certain accounts which are maintained for you under the Plan before you reach age 59 1/2. These accounts are the ones set up to receive your salary deferral contributions and other Employer contributions which are used to satisfy special rules for 401(k) plans. Ask the Administrator if you need more details.
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What are In-Plan Roth Rollover Transfers?

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In-Plan Roth Rollover Transfers. Effective December 16, 2019, as a Participant under the Plan, you may make an In-Plan Roth Rollover Transfer. An In-Plan Roth Rollover Transfer allows you to elect to change the tax treatment of all or some of the vested portion  of your pre-tax accounts, as explained below.
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Additional Information:  See the Question entitled "What are In-Plan Roth conversions" for more information on this feature.
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ARTICLE III
EMPLOYER CONTRIBUTIONS

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In addition to any deferrals you elect to make, your Employer may make additional contributions to the Plan. This Article describes Employer contributions that may be made to the Plan and how your share of the contribution is determined.
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What is the Employer matching contribution and how is it allocated?

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Rigid Discretionary Matching contribution. Your Employer may make a discretionary matching contribution equal to a percentage of your salary deferrals. Your Employer will select the allocation method for this Contribution in the Adoption Agreement. A Rigid Discretionary Match is not subject to a separate notice requirement.
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Limit on matching contribution. In applying the matching contribution, your salary deferrals for each payroll period that exceed 6% of your compensation for such period will not be considered (i.e., will not be matched).
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Limit on matching contribution. Regardless of the preceding, your matching contribution in any Plan Year will not exceed 6% of your compensation.
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Allocation conditions. You will always share in the matching contribution regardless of the amount of service you complete during the Plan Year.
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What are forfeitures and how are they allocated?

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Definition of forfeitures. In order to reward employees who remain employed with the Employer for a long period of time, the law permits a "vesting schedule" to be applied to certain contributions that your Employer makes to the Plan. This means that you will not be "vested" in (entitled to) all of the contributions until you have been employed with the Employer for a specified period of time (see the Article entitled "Vesting"). If a Participant terminates employment before being fully vested, then the non-vested portion of the Terminated Participant's account balance remains in the Plan and is called a forfeiture.
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Allocation of forfeitures. The Employer may use forfeitures to pay Plan expenses. In some cases, remaining forfeitures will be used to reduce Employer contributions.
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ARTICLE IV
COMPENSATION AND ACCOUNT BALANCE

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What compensation is used to determine my Plan benefits?

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Definition of compensation. For the purposes of the Plan, compensation has a special meaning. Compensation is generally defined as your total compensation that is subject to income tax and paid to you by your Employer during the Plan Year. In addition, salary reductions to this Plan and to any other plan or arrangement (such as a cafeteria plan) will be included in Compensation. If you are a self-employed individual, your compensation will be equal to your earned income. The following describes the adjustments to compensation that may apply under the Plan.
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All Contributions
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Adjustments to compensation. The following adjustments to compensation will be made:
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●compensation paid by an Affiliated Employer that has not adopted this Plan will be excluded.
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●meal allowances, plane allowances, personal use of automobile, sick pay
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●compensation paid after you terminate employment is generally excluded for Plan purposes. However, the following amounts will be included in compensation even though they are paid after you terminate employment, provided these amounts would otherwise have been considered compensation as described above and provided they are paid within 2 1/2 months after you terminate employment, or if later, the last day of the Plan Year in which you terminate employment:
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●compensation for services performed during your regular working hours, or for services outside your regular working hours (such as overtime or shift differential) or other similar payments that would have been made to you had you continued employment

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●compensation paid for unused accrued bona fide sick, vacation or other leave, if such amounts would have been included in compensation if paid prior to your termination of employment and you would have been able to use the leave if employment had continued
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●nonqualified unfunded deferred compensation if the payment is includible in gross income and would have been paid to you had you continued employment
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Salary Deferrals
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Adjustments to compensation. In addition to adjustments to compensation under "All Contributions" above, the following adjustments to compensation will be made for purposes of salary deferrals:
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See "Other Adjustments to Compensation" at the end of this Section for special provisions that may apply to compensation adjustments.
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Employer Matching Contributions
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Adjustments to compensation. In addition to adjustments to compensation under "All Contributions" above, the following adjustments to compensation will be made for purposes of matching contributions:
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See "Other Adjustments to Compensation" at the end of this Section for special provisions that may apply to compensation adjustments.
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Other Adjustments to Compensation.
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●For elective deferral and matching purposes Compensation excludes short term disability benefits not paid through the Employer's payroll system, expense reimbursements and any form of non-cash compensation.
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Is there a limit on the amount of compensation which can be considered?

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The Plan, by law, cannot recognize annual compensation in excess of a certain dollar limit. The limit for the Plan Year beginning in 2022 is $305,000. After 2022, the dollar limit may increase for cost-of-living adjustments.
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Is there a limit on how much can be contributed to my account each year?

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Generally, the law imposes a maximum limit on the amount of contributions that may be made to your account and any other amounts allocated to any of your accounts during the Plan Year, excluding earnings. Beginning in 2022, this total cannot exceed the lesser of $58,000 or 100% of your annual compensation. After 2022, the dollar limit may increase for cost-of-living adjustments.
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How is the money in the Plan invested?

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The Trustee of the Plan has been designated to hold the assets of the Plan for the benefit of Plan Participants and their beneficiaries in accordance with the terms of this Plan. The Trust Fund established by the Plan's Trustee will be the funding medium used for the accumulation of assets from which Plan benefits will be distributed.
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Participant directed investments. You will be able to direct the investment of your entire interest in the Plan. The Administrator will provide you with information on the investment choices available to you, the procedures for making investment elections, the frequency with which you can change your investment choices and other important information. You need to follow the procedures for making investment elections and you should carefully review the information provided to you before you give investment directions. If you do not direct the investment of your applicable Plan accounts, then your accounts will be invested in accordance with the default investment alternatives established under the Plan. These default investments will be made in accordance with specific rules under which the fiduciaries of the Plan, including the Employer, the Trustee and the Administrator, will be relieved of any legal liability for any losses resulting from the default investments. The Administrator has or will provide you with a separate notice which details these default investments and your right to switch out of the default investment if you so desire.
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The Plan is intended to comply with Section 404(c) of ERISA (the Employee Retirement Income Security Act). If the Plan complies with Section 404(c), then the fiduciaries of the Plan, including your Employer, the Trustee(s) and the Administrator, will be relieved of any legal liability for any losses which are the direct and necessary result of the investment directions that you give.
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Earnings or losses. When you direct investments, your accounts are segregated for purposes of determining the earnings or losses on these investments. Your account does not share in the investment performance of other Participants who have directed their own investments. You should remember that the amount of your benefits under the Plan will depend in part upon your choice of investments. Gains as well as losses can occur and your Employer, the Administrator, and the Trustee will not provide investment advice or guarantee the performance of any investment you choose.
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Periodically, you will receive a benefit statement that provides information on your account balance and your investment returns. It is your responsibility to notify the Administrator of any errors you see on any statements within 30 days after the statement is provided or made available to you.
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Will Plan expenses be deducted from my account balance?

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Expenses allocated to all accounts. The Plan permits the payment of Plan expenses to be made from the Plan's assets. If expenses are paid using the Plan's assets, then the expenses will generally be allocated among the accounts of all Participants in the Plan. These expenses will be allocated either proportionately based on the value of the account balances or as an equal dollar amount based on the number of Participants in the Plan. The method of allocating the expenses depends on the nature of the expense itself. For example, certain administrative (or recordkeeping) expenses would typically be allocated proportionately to each Participant. If the Plan pays $1,000 in expenses and there are 100 Participants, your account balance would be charged $10 ($1,000/100) of the expense.
​
Terminated employee. After you terminate employment, your Employer reserves the right to charge your account for your pro rata share of the Plan's administration expenses, regardless of whether your Employer pays some of these expenses on behalf of current employees.
​
Expenses allocated to individual accounts. There are certain other expenses that may be paid just from your account. These are expenses that are specifically incurred by, or attributable to, you. For example, if you are married and get divorced, the Plan may incur additional expenses if a court mandates that a portion of your account be paid to your ex-spouse. These additional expenses may be paid directly from your account (and not the accounts of other Participants) because they are directly attributable to you under the Plan. The Administrator will inform you when there will be a charge (or charges) directly to your account.
​
Your Employer may, from time to time, change the manner in which expenses are allocated.

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​

​
ARTICLE V
VESTING

​
What is my vested interest in my account?

​
In order to reward employees who remain employed with the Employer for a long period of time, the law permits a "vesting schedule" to be applied to certain contributions that your Employer makes to the Plan. This means that you will not be entitled ("vested") in all of the contributions until you have been employed with the Employer for a specified period of time.
​
100% vested contributions. You are always 100% vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions:
​
●salary deferrals including Roth 401(k) deferrals and "catch-up contributions"
​
●"rollover" contributions
​
Vesting schedules. Your "vested percentage" for certain Employer contributions is based on vesting Years of Service. This means at the time you stop working, your account balance attributable to contributions subject to a vesting schedule is multiplied by your vested percentage. The result, when added to the amounts that are always 100% vested as shown above, is your vested interest in the Plan, which is what you will actually receive from the Plan.
​
Employer Profit Sharing Contributions
​
Your "vested percentage" in your account attributable to profit sharing contributions is determined under the following schedule. You will always, however, be 100% vested in your profit sharing contributions if you are employed on or after your Early or Normal Retirement Age or if you die or become disabled.
​
Vesting Schedule
Profit Sharing Contributions
Years of ServicePercentage
​

Less than 30%
3100%
​

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​

Employer Matching Contributions
​
Your "vested percentage" in your account attributable to matching contributions is determined under the following schedule. You will always, however, be 100% vested in your matching contributions if you are employed on or after your Early or Normal Retirement Age or if you die or become disabled.
​
Vesting Schedule
Matching Contributions
Years of ServicePercentage
​

Less than 30%
3100%
​
Special Vesting Provisions
​
●The vesting schedule for Legacy Matching contributions made prior to December 16, 2019 is 1 Yr - 0%; 2 Yrs - 20%; 3 Yrs - 40%; 4 Yrs - 60%; 5 Yrs - 80%; 6 Yrs - 100%
​
How is my service determined for vesting purposes?

​
Year of Service. To earn a Year of Service, you must be credited with at least 1,000 Hours of Service during a Plan Year. The Plan contains specific rules for crediting Hours of Service for vesting purposes. The Administrator will track your service and will credit you with a Year of Service for each Plan Year in which you are credited with the required Hours of Service, in accordance with the terms of the Plan. If you have any questions regarding your vesting service, you should contact the Administrator.
​
Hour of Service-employees for whom hourly records are kept. You will be credited with your actual Hours of Service for: 
​
(a)each hour for which you are directly or indirectly compensated by the Employer for the performance of duties during the Plan Year;
​
(b)each hour for which you are directly or indirectly compensated by the Employer for reasons other than the performance of duties (such as vacation, holidays, sickness, disability, lay-off, military duty, jury duty or leave of absence during the Plan Year); and
​
(c)each hour for back pay awarded or agreed to by the Employer.
​
You will not be credited for the same Hours of Service both under (a) or (b), as the case may be, and under (c).
​
Hour of Service-employees for whom hourly records are not kept. The Plan does not credit you with your actual Hours of Service. Instead the Plan uses an "equivalency" method. Under this method you will be credited with credit basis upon which manner Records are Maintained.  By Shift - Actual Hours; By Day - 10 Hours; By Week; 45 Hours; By Semi-Monthly Payroll - 95 Hours; By Months of Employment - 190 Hours during the year in which you would otherwise be credited with at least one Hour of Service.
​

13
​

What service is counted for vesting purposes?

​
Service with the Employer. In calculating your vested percentage, all service you perform for the Employer will generally be counted. However, there are some exceptions to this general rule.
​
Break in Service rules. If you terminate employment and are rehired, you may lose credit for prior service under the Plan's Break in Service rules.
​
For vesting purposes, you will have a 1-Year Break in Service if you complete less than 501 Hours of Service during the computation period used to determine whether you have a Year of Service. However, if you are absent from work for certain leaves of absence such as a maternity or paternity leave, you may be credited with enough Hours of Service to prevent a Break in Service.
​
Five-year Break in Service rule. The five-year Break in Service rule applies only to employees who had no vested interest in the Plan when employment had terminated. If you were not vested in any amounts when you terminated employment and you have five 1-Year Breaks in Service (as defined above), all the service you earned before the 5-year period no longer counts for vesting purposes. Thus, if you return to employment after incurring five 1-Year Breaks in Service, you will be treated as a new employee (with no service) for purposes of determining your vested percentage under the Plan.
​
Service with another Employer. For vesting purposes, your Years of Service with Binghamton Giant Markets, Vestal NY Medicine Shoppe, Genuardi's Safeway and Thomas Food Markets will be counted.
​
However, with respect to the recognition of prior service with another Employer, the following applies: The employee must be employed by the predecessor employer as of the day immediately prior to the acquisition.
​
Military service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. If you may be affected by this law, ask the Administrator for further details.
​
What happens to my non-vested account balance if I'm rehired?

​
If you have no vested interest in the Plan when you leave, your account balance will be forfeited. However, if you are rehired before incurring five 1-Year Breaks in Service, your account balance as of your termination date will be restored, unadjusted for any gains or losses.
​
If you are partially vested in your account balance when you leave, the non-vested portion of your account balance will be forfeited on the earlier of the date: 
​
(a)of the distribution of your vested account balance, or
​
(b)when you incur five consecutive 1-Year Breaks in Service.
​
If you received a distribution of your vested account balance and are rehired, you may have the right to repay this distribution. If you repay the entire amount of the distribution, your Employer will restore your account balance with your forfeited amount. You must repay this distribution within five years from your date of reemployment, or, if earlier, before you incur five 1-Year Breaks in Service. If you were 100% vested when you left, you do not have the opportunity to repay your distribution.

14
​

​
What happens if the Plan becomes a "top-heavy plan"?

​
Top-heavy plan. A retirement plan that primarily benefits "key employees" is called a "top-heavy plan." "Key employees" are certain owners or officers of your Employer. A plan is generally a "top-heavy plan" when more than 60% of the plan assets are attributable to "key employees." Each year, the Administrator is responsible for determining whether the Plan is a "top-heavy plan."
​
Top-heavy rules. If the Plan becomes top-heavy in any Plan Year, then non-key employees may be entitled to certain "top-heavy minimum benefits," and other special rules will apply. These top-heavy rules include the following:
​
●Your Employer may be required to make a contribution on your behalf in order to provide you with at least "top-heavy minimum benefits."
​
●If you are a Participant in more than one Plan, you may not be entitled to "top-heavy minimum benefits" under both Plans.
​
ARTICLE VI
DISTRIBUTIONS PRIOR TO TERMINATION AND HARDSHIP DISTRIBUTIONS

​
Can I withdraw money from my account while working?

​
In-service distributions. You may be entitled to receive an in-service distribution. However, this distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at retirement. This distribution is made at your election and will be made in accordance with the forms of distributions available under the Plan.
​
Conditions and limitations. Generally you may receive a distribution from the Plan from certain accounts prior to your termination of employment provided you satisfy the condition described below:
​
		●
	you have attained age 59 1/2

​
The following limitations apply to in-service distributions from certain accounts:
​
●In-service distributions can only be made from accounts which are 100% vested.
​
The law restricts any in-service distributions from certain accounts which are maintained for you under the Plan before you reach age 59 1/2. These accounts are the ones set up to receive your salary deferral contributions and other Employer contributions which are used to satisfy special rules for 401(k) plans. Ask the Administrator if you need more details.
​
Can I withdraw money from my account in the event of financial hardship?

​
Hardship distributions. You may withdraw money for financial hardship if you satisfy certain conditions. This hardship distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at retirement.

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​

​
Qualifying expenses. A hardship distribution may be made to satisfy certain immediate and heavy financial needs that you have. A hardship distribution may only be made for payment of the following:
​
●expenses for medical care (described in Section 213(d) of the Internal Revenue Code) previously incurred by you, your spouse, your dependents or your beneficiaries or necessary for you, your spouse, your dependents or your beneficiaries to obtain medical care.
​
●costs directly related to the purchase of your principal residence (excluding mortgage payments).
​
●tuition, related educational fees, and room and board expenses for the next twelve (12) months of post-secondary education for yourself, your spouse, your dependents or your beneficiaries.
​
●amounts necessary to prevent your eviction from your principal residence or foreclosure on the mortgage of your principal residence.
​
●payments for burial or funeral expenses for your deceased parent, spouse, children, other dependents or beneficiaries.
​
●expenses for the repair of damage to your principal residence that would qualify for the casualty deduction under the Internal Revenue Code without regard to the limit on casualty losses that are deductible for income tax purposes under IRC 165(h).
​
●expenses for disasters arising from federally declared disasters, such as your expenses and losses (including loss of income) attributable to that disaster, provided your principal residence or place of employment was in an area FEMA designates as qualifying for individual assistance.
​
 A beneficiary is someone you designate under the Plan to receive your death benefit who is not otherwise your spouse or dependent.
​
Conditions. If you have any of the above expenses, a hardship distribution can only be made if you certify and agree that all of the following conditions are satisfied: 
​
(a)The distribution is not in excess of the amount of your immediate and heavy financial need. The amount of your immediate and heavy financial need may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution.
​
(b)You have obtained all distributions, other than hardship distributions, currently available under all retirement plans that the Employer maintains.
​
(c)You certify (via a form for that purpose) that you have insufficient cash or other liquid assets reasonably available to satisfy the need.
​
Account restrictions. You may request a hardship distribution only from the vested portion of the following accounts:
​

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​

●pre-tax deferral accounts plus earnings
​
●Roth 401(k) deferral accounts plus earnings
​
In addition, there are restrictions placed on hardship distributions which are made from certain accounts. The Employer contributions which are used to satisfy special rules that apply to 401(k) plans, may not be distributed to you on account of a hardship. Ask the Administrator if you need further details.
​
ARTICLE VII
BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT

​
When can I get money out of the Plan?

​
You may receive a distribution of the vested portion of some or all of your accounts in the Plan for the following reasons:
​
●termination of employment for reasons other than death, disability or retirement
​
●early retirement
​
●normal retirement
​
●disability
​
●death
​
This Plan is designed to provide you with retirement benefits. However, distributions are permitted if you die or become disabled. In addition, certain payments are permitted when you terminate employment for any other reason. The rules under which you can receive a distribution are described in this Article. The rules regarding the payment of death benefits to your beneficiary are described in "Benefits and Distributions Upon Death."
​
You may also receive distributions while you are still employed with the Employer. (See the Article entitled "Distributions Prior to Termination and Hardship Distributions" for a further explanation.)
​
Military service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. There may also be benefits for employees who die or become disabled while on active duty. Employees who receive wage continuation payments while in the military may benefit from various changes in the law. If you think you may be affected by these rules, ask the Administrator for further details.
​

17
​

What happens if I terminate employment before death, disability or retirement?

​
If your employment terminates for reasons other than death, disability or early or normal retirement, you will be entitled to receive only the "vested percentage" of your account balance.
​
If your vested account balance exceeds $5,000, you may elect to have your vested account balance distributed to you as soon as administratively feasible following your termination of employment.
​
If your vested account balance does not exceed $5,000, a distribution of your vested account balance will be made to you, regardless of whether you consent to receive it, as soon as administratively feasible following your termination of employment. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these amounts will be paid.)
​
Treatment of "rollover" contributions for consent to distribution. In determining if the value of your vested account balance exceeds the $5,000 threshold described above used to determine whether you must consent to a distribution, your "rollover account" will be considered as part of your benefit.
​
Treatment of "rollover" contributions for timing of payments. In determining whether the $5,000 threshold described above for timing of payments has been exceeded, amounts in your "rollover account" will be considered as part of your benefit.
​
What happens if I terminate employment at Normal Retirement Date?

​
Normal Retirement Date. You will attain your Normal Retirement Age when you reach age 65. Your Normal Retirement Date is the date on which you attain your Normal Retirement Age.
​
Payment of benefits. You will become 100% vested in all of your accounts under the Plan once you attain your Normal Retirement Age. However, the actual payment of benefits generally will not begin until you have terminated employment and reached your Normal Retirement Date. In such event, a distribution will be made, at your election, as soon as administratively feasible. If you remain employed past your Normal Retirement Date, you may generally defer the receipt of benefits until you actually terminate employment. In such event, benefit payments will begin as soon as feasible at your request, but generally not later than age 70 1/2. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)
​
What happens if I terminate employment at Early Retirement Date?

​
Early Retirement Date. Your Early Retirement Date is the date you have attained age 60 and completed seven (7) Years of Service with your Employer (early retirement age). Your Years of Service will be determined using Years of Service for vesting. You may elect to retire when you reach your Early Retirement Date.
​
Payment of benefits. If you are employed on the date you attain your early retirement age, you will become 100% vested in all of your accounts under the Plan. However, the payment of benefits generally will not begin until you actually retire after reaching your Early Retirement Date. In such event, a distribution will be made, at your election, as soon as administratively feasible. However, if you retire after reaching your Early Retirement Date but prior to your Normal Retirement Date and the value of your account balance does not exceed $5,000, then a distribution of your account balance will be made to you, regardless of whether you consent to receive it. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)

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​
What happens if I terminate employment due to disability?​
​
Definition of disability. Under the Plan, disability is defined as the participant has been determined by the Social Security Administration to be eligible for either full or partial Social Security disability benefits.
​
Payment of benefits. If you become disabled while an employee, you will become 100% vested in all of your accounts under the Plan. Payment of your disability benefits will be made to you as if you had retired. However, if the value of your account balance does not exceed $5,000, then a distribution of your account balance will be made to you, regardless of whether you consent to receive it. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.)
​
How will my benefits be paid to me?

​
Lump-sum distributions. All distributions from the Plan will be made in a single lump-sum payment. If your vested account balance exceeds $5,000, you must consent to the distribution before it may be made.
​
Delaying distributions. You may delay the distribution of your vested account balance unless a distribution is required to be made, as explained earlier, because your vested account balance does not exceed $5,000. However, if you elect to delay the distribution of your vested account balance, there are rules that require that certain minimum distributions be made from the Plan. If you are a 5% owner, distributions are required to begin not later than the April 1st following the end of the year in which you reach age 70 1/2. If you are not a 5% owner, distributions are required to begin not later than the April 1st following the later of the end of the year in which you reach age 70 1/2 or retire. You should contact the Administrator if you think you may be affected by these rules.
​
Medium of payment. Benefits under the Plan will generally be paid to you in cash only.
​
ARTICLE VIII
BENEFITS AND DISTRIBUTIONS UPON DEATH

​
What happens if I die while working for the Employer?

​
If you die while still employed by the Employer, then your vested account balance will be used to provide your beneficiary with a death benefit.
​
Who is the beneficiary of my death benefit?

​
Married Participant. If you are married at the time of your death, your spouse will be the beneficiary of the entire death benefit unless an election is made to change the beneficiary. IF YOU WISH TO DESIGNATE A BENEFICIARY OTHER THAN YOUR SPOUSE, YOUR SPOUSE (IF YOU ARE MARRIED) MUST IRREVOCABLY CONSENT TO WAIVE ANY RIGHT TO THE DEATH BENEFIT. YOUR SPOUSE'S CONSENT MUST BE IN WRITING, BE WITNESSED BY A NOTARY OR A PLAN REPRESENTATIVE AND ACKNOWLEDGE THE SPECIFIC NONSPOUSE BENEFICIARY.
​
If you are married and you change your designation, then your spouse must again consent to the change. In addition, you may elect a beneficiary other than your spouse without your spouse's consent if your spouse cannot be located.
​

19
​

Unmarried Participant. If you are not married, you may designate a beneficiary on a form to be supplied to you by the Administrator.
​
Divorce. If you have designated your spouse as your beneficiary for all or a part of your death benefit, then upon your divorce, the designation is no longer valid. This means that if you do not select a new beneficiary after your divorce, then you are treated as not having a beneficiary for that portion of the death benefit (unless you have remarried).
​
No beneficiary designation. At the time of your death, if you have not designated a beneficiary or the individual named as your beneficiary is not alive, then the death benefit will be paid in the following order of priority to: a) the spouse, b) then to the surviving children in equal shares, c) then to the surviving parents in equal shares, d) then to the surviving brothers and sisters in equal shares, e) finally, if no survivors then f) to the Participant's estate if an estate is opened within 2-years of the participant's death; and otherwise to a charity selected in the sole discretion of the plan administrator.
​
How will the death benefit be paid to my beneficiary?

​
Lump-sum distributions. The death benefit will be paid to your beneficiary in a single lump-sum payment.
​
When must the last payment be made to my beneficiary?

​
The law generally restricts the ability of a retirement plan to be used as a method of retaining money for purposes of your death estate. Thus, there are rules that are designed to ensure that death benefits are distributable to beneficiaries within certain time periods.
​
Your death benefit must generally be paid to your beneficiary by the end of the fifth year following the year of your death. However, if your spouse is your designated beneficiary, then your spouse can elect to delay the payment until the year in which you would have attained age 70 1/2.
​
Since your spouse has certain rights to the death benefit, you should immediately report any change in your marital status to the Administrator.
​
What happens if I'm a Participant, terminate employment and die before receiving all my benefits?

​
If you terminate employment with the Employer and subsequently die, your beneficiary will be entitled to your remaining interest in the Plan at the time of your death. The provision in the Plan providing for full vesting of your benefit upon death does not apply if you die after terminating employment.
​
ARTICLE IX
TAX TREATMENT OF DISTRIBUTIONS

​
What are my tax consequences when I receive a distribution from the Plan?

​
Generally, you must include any Plan distribution in your taxable income in the year in which you receive the distribution. The tax treatment may also depend on your age when you receive the distribution. Certain distributions made to you when you are under age 59 1/2 could be subject to an additional 10% tax.
​

20
​

You will not be taxed on distributions of your Roth 401(k) deferrals. In addition, a distribution of the earnings on the Roth 401(k) deferrals will not be subject to tax if the distribution is a "qualified Roth distribution." A "qualified distribution" is one that is made after you have attained age 59 1/2 or is made on account of your death or disability and the distribution cannot be made prior to the expiration of a 5-year participation period. The 5-year participation period is the 5-year period beginning on the calendar year in which you first make a Roth 401(k) deferral to our Plan (or to another 401(k) plan or 403(b) plan if such amount was rolled over into our Plan) and ending on the last day of the calendar year that is 5 years later.
​
Can I elect a rollover to reduce or defer tax on my distribution?

​
Rollover or direct transfer. You may reduce, or defer entirely, the tax due on your distribution through use of one of the following methods:
​
60-day rollover. The rollover of all or a portion of the distribution to an individual retirement account or annuity (IRA) or another employer retirement plan willing to accept the rollover. This will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made within strict time frames (normally, within 60 days after you receive your distribution). Under certain circumstances, all or a portion of a distribution (such as a hardship distribution) may not qualify for this rollover treatment. In addition, most distributions will be subject to mandatory federal income tax withholding at a rate of 20%. This will reduce the amount you actually receive. For this reason, if you wish to roll over all or a portion of your distribution amount, then the direct transfer option described below would be the better choice.
​
Direct rollover. For most distributions, you may request that a direct transfer (sometimes referred to as a "direct rollover") of all or a portion of a distribution be made to either an individual retirement account or annuity (IRA) or another employer retirement plan willing to accept the transfer (See the question entitled "What are the In-Plan Roth Rollover Contributions?" for special rules on In-Plan Roth Rollovers). A direct transfer will result in no tax being due until you withdraw funds from the IRA or other employer plan. Like the rollover, under certain circumstances all or a portion of the amount to be distributed may not qualify for this direct transfer. If you elect to actually receive the distribution rather than request a direct transfer, then in most cases 20% of the distribution amount will be withheld for federal income tax purposes.
​
Automatic IRA rollover. If a mandatory distribution is being made to you because your vested interest in the Plan exceeds $1,000 but does not exceed $5,000, then the Plan will rollover your distribution to an IRA if you do not make an affirmative election to either receive or roll over the distribution. The IRA provider selected by the Plan will invest the rollover funds in a type of investment designed to preserve principal and provide a reasonable rate of return and liquidity (e.g., an interest-bearing account, a certificate of deposit or a money market fund). The IRA provider will charge your account for any expenses associated with the establishment and maintenance of the IRA and with the IRA investments. You may transfer the IRA funds to any other IRA you choose. You will be provided with details regarding the IRA at the time you are entitled to a distribution. However, you may contact the Administrator at the address and telephone number indicated in this SPD for further information regarding the Plan's automatic rollover provisions, the IRA provider, and the fees and expenses associated with the IRA.
​
Tax Notice. WHENEVER YOU RECEIVE A DISTRIBUTION THAT IS AN ELIGIBLE ROLLOVER DISTRIBUTION, THE ADMINISTRATOR WILL DELIVER TO YOU A MORE DETAILED EXPLANATION OF THESE OPTIONS. HOWEVER, THE RULES WHICH DETERMINE WHETHER YOU QUALIFY FOR FAVORABLE TAX TREATMENT ARE VERY COMPLEX. YOU SHOULD CONSULT WITH QUALIFIED TAX COUNSEL BEFORE MAKING A CHOICE.
​
ARTICLE X
LOANS

​
Is it possible to borrow money from the Plan?

​
Yes, you may request a Participant loan from all your accounts using an application form provided by the Administrator. Your ability to obtain a Participant loan depends on several factors. The Administrator will determine whether you satisfy these factors.

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​

​
What are the loan rules and requirements?

​
There are various rules and requirements that apply to any loan, which are outlined in this question. In addition, your Employer has established a written loan program which explains these requirements in more detail. You can request a copy of the loan program from the Administrator. Generally, the rules for loans include the following:
​
●Loans are available to Participants on a reasonably equivalent basis. Each loan requires an application which specifies the amount of the loan desired, the requested duration for the loan and the source of security for the loan. All loan applications will be considered by the Administrator within a reasonable time after the Participant applies for the loan. The Administrator may request that you provide additional information to make a determination.
​
●All loans must be adequately secured. You must sign a promissory note along with a loan pledge. Generally, you must use your vested interest in the Plan as security for the loan, provided the outstanding balance of all your loans does not exceed 50% of your vested interest in the Plan. In certain cases, the Administrator may require you to provide additional collateral to receive a loan.
​
●You will be charged an interest rate equal to 1% above the prime rate. The interest rate will be fixed for the duration of the loan.
​
●Loan refinancing is not permitted.
​
●If approved, your loan will provide for level amortization with payments to be made not less frequently than quarterly. Generally, the term of your loan may not exceed five (5) years. However, if the loan is for the purchase of your principal residence, the Administrator may permit a longer repayment term. Generally, the Administrator will require that you repay your loan by agreeing to either payroll deduction or payment by ACH (automated clearing house system for electronic funds transfer). If you have an unpaid leave of absence or go on military leave while you have an outstanding loan, please contact the Administrator to find out your repayment options.
​
●All loans will be considered a directed investment of your account under the Plan. All payments of principal and interest by you on a loan will be credited to your account.
​
●The amount the Plan may loan to you is limited by rules under the Internal Revenue Code. Any new loans, when added to the outstanding balance of all other loans from the Plan, will be limited to the lesser of: 
​
(a)$50,000 reduced by the excess, if any, of your highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date of the new loan over your current outstanding balance of loans as of the date of the new loan; or
​
(b)1/2 of your vested interest in the Plan.
​
●No loan in an amount less than $1,000 will be made.
​
●The maximum number of Plan loans that you may have outstanding at any one time is one (1).
​

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​

●If you fail to make payments when they are due under the terms of the loan, you will be considered to be "in default." The Administrator will consider your loan to be in default if any scheduled loan repayment is not made by the end of the calendar quarter following the calendar quarter in which the missed payment was due. However, in the event the maturity date has been reached the Administrator will consider your loan to be in default if the final payment has not been made by the last business day of the month following the month the maturity date was reached.  The Plan would then have authority to take all reasonable actions to collect the balance owed on the loan. This could include filing a lawsuit or foreclosing on the security for the loan. Under certain circumstances, a loan that is in default may be considered a distribution from the Plan and could be considered taxable income to you. In any event, your failure to repay a loan will reduce the benefit you would otherwise be entitled to from the Plan.
​
The Administrator may periodically revise the Plan's loan program. If you have any questions on Participant loans or the current loan program, please contact the Administrator.
​
ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES

​
Are my benefits protected?

​
As a general rule, your interest in your account, including your "vested interest," may not be alienated. This means that your interest may not be sold, used as collateral for a loan (other than for a Plan loan), given away or otherwise transferred. In addition, your creditors (other than the IRS) may not attach, garnish or otherwise interfere with your benefits under the Plan.
​
Are there any exceptions to the general rule?

​
There are three exceptions to this general rule. The Administrator must honor a "qualified domestic relations order." A "qualified domestic relations order" is defined as a decree or order issued by a court that obligates you to pay child support or alimony, or otherwise allocates a portion of your assets in the Plan to your spouse, former spouse, children or other dependents. If a "qualified domestic relations order" is received by the Administrator, all or a portion of your benefits may be used to satisfy that obligation. The Administrator will determine the validity of any domestic relations order received. You and your beneficiaries can obtain from the Administrator, without charge, a copy of the procedure used by the Administrator to determine whether a "qualified domestic relations order" is valid.
​
The second exception applies if you are involved with the Plan's operation. If you are found liable for any action that adversely affects the Plan, the Administrator can offset your benefits by the amount that you are ordered or required by a court to pay the Plan. All or a portion of your benefits may be used to satisfy any such obligation to the Plan.
​
The last exception applies to federal tax levies and judgments. The federal government is able to use your interest in the Plan to enforce a federal tax levy and to collect a judgment resulting from an unpaid tax assessment.
​
Can the Plan be amended?

​
Your Employer has the right to amend the Plan at any time. In no event, however, will any amendment authorize or permit any part of the Plan assets to be used for purposes other than the exclusive benefit of Participants or their beneficiaries. Additionally, no amendment will cause any reduction in the amount credited to your account.
​

23
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What happens if the Plan is discontinued or terminated?

​
Although your Employer intends to maintain the Plan indefinitely, your Employer reserves the right to terminate the Plan at any time. Upon termination, no further contributions will be made to the Plan and all amounts credited to your accounts will become 100% vested. Your Employer will direct the distribution of your accounts in a manner permitted by the Plan as soon as practicable. (See the question entitled "How will my benefits be paid to me?" for a further explanation.) You will be notified if the Plan is terminated.
​
How do I submit a claim for Plan benefits?

​
You may file a claim for benefits by submitting a written request for benefits to the Plan Administrator. You should contact the Plan Administrator to see if there is an applicable distribution form that must be used. If no specific form is required or available, then your written request for a distribution will be considered a claim for benefits. In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than by a third party such as the Social Security Administration), then you must also include with your claim sufficient evidence to enable the Plan Administrator to make a determination on whether you are disabled. 
​
Decisions on the claim will be made within a reasonable period of time appropriate to the circumstances. "Days" means calendar days. If the Plan Administrator determines the claim is valid, then you will receive a statement describing the amount of benefit, the method or methods of payment, the timing of distributions and other information relevant to the payment of the benefit.
​
For purposes of the claims procedures described below, "you" refers to you, your authorized representative, or anyone else entitled to benefits under the Plan (such as a beneficiary). A document, record, or other information will be considered relevant to a claim if it:
​
		●
	was relied upon in making the benefit determination;

​
		●
	was submitted, considered, or generated in the course of making the benefit determination, without regard to whether it was relied upon in making the benefit determination;

​
		●
	demonstrated compliance with the administrative processes and safeguards designed to ensure and to verify that benefit determinations are made in accordance with Plan documents and Plan provisions have been applied consistently with respect to all claimants; or

​
		●
	constituted a statement of policy or guidance with respect to the Plan concerning the denied treatment option or benefit.

​
The Plan may offer additional voluntary appeal and/or mandatory arbitration procedures other than those described below. If applicable, the Plan will not assert that you failed to exhaust administrative remedies for failure to use the voluntary procedures, any statute of limitations or other defense based on timeliness is tolled during the time a voluntary appeal is pending; and the voluntary process is available only after exhaustion of the appeals process described in this section. If mandatory arbitration is offered by the Plan, the arbitration must be conducted instead of the appeal process described in this section, and you are not precluded from challenging the decision under ERISA §501(a) or other applicable law.
​
What if my benefits are denied?

​
Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Administrator will provide you with a written or electronic notification of the Plan's adverse determination. This written or electronic notification must be provided to you within a reasonable period of time, but not later than 90 days (except as provided below for disability claims) after the receipt of your claim by the Administrator, unless the Administrator determines that special circumstances require an extension of time for processing your claim. If the Administrator determines that an extension of time for processing is required, written notice of the extension will be furnished to you prior to the termination of the initial 90-day period. In no 

24
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event will such extension exceed a period of 90 days from the end of such initial period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination.
​
In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then instead of the above, the initial claim must be resolved within 45 days of receipt by the Plan. A Plan may, however, extend this decision-making period for an additional 30 days for reasons beyond the control of the Plan. The Plan will notify you of the extension prior to the end of the 45-day period. If, after extending the time period for a first period of 30 days, the Plan Administrator determines that it will still be unable, for reasons beyond the control of the Plan, to make a decision within the extension period, the Plan may extend decision making for a second 30-day period. Appropriate notice will be provided to you before the end of the first 45 days and again before the end of each succeeding 30-day period. This notice will explain the circumstances requiring the extension and the date the Plan Administrator expects to render a decision. It will explain the standards on which entitlement to the benefits is based, the unresolved issues that prevent a decision, the additional issues that prevent a decision, and the additional information needed to resolve the issues. You will have 45 days from the date of receipt of the Plan Administrator's notice to provide the information required.
​
If the Plan Administrator determines that all or part of the claim should be denied (an "adverse benefit determination"), it will provide a notice of its decision in written or electronic form explaining your appeal rights. An "adverse benefit determination" also includes a rescission, which is a retroactive cancellation or termination of entitlement to disability benefits. The notice will be provided in a culturally and linguistically appropriate manner and will state: 
​
(a)The specific reason or reasons for the adverse determination.
​
(b)Reference to the specific Plan provisions on which the determination was based.
​
(c)A description of any additional material or information necessary for you to perfect the claim and an explanation of why such material or information is necessary.
​
(d)A description of the Plan's review procedures and the time limits applicable to such procedures. This will include a statement of your right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review.
​
(e)In the case of a claim for disability benefits if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then the following additional information will be provided: 
​
(i)A discussion of the decision, including an explanation of the basis for disagreeing with or not following:
​
		●
	The views you presented to the Plan of health care professionals treating the claimant and vocational professionals who evaluated you;

​
		●
	The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with an adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or

​
		●
	A disability determination made by the Social Security Administration and presented by you to the Plan.

​
(ii)Either the internal rules, guidelines, protocols, or other similar criteria relied upon to make a determination, or a statement that such rules, guidelines, protocols, or other criteria do not exist.
​

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(iii)If the adverse benefit determination is based on a medical necessity or experimental treatment and/or investigational treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances. If this is not practical, a statement will be included that such explanation will be provided to you free of charge, upon request.
​
(iv)A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim.
​
If your claim has been denied, and you want to submit your claim for review, you must follow the Claims Review Procedure in the next question.
​
What is the Claims Review Procedure?

​
Upon the denial of your claim for benefits, you may file your claim for review, in writing, with the Administrator. 
​
(a)YOU MUST FILE THE CLAIM FOR REVIEW NOT LATER THAN 60 DAYS (EXCEPT AS PROVIDED BELOW FOR DISABILITY CLAIMS) AFTER YOU HAVE RECEIVED WRITTEN NOTIFICATION OF THE DENIAL OF YOUR CLAIM FOR BENEFITS.
​
IF YOUR CLAIM IS FOR DISABILITY BENEFITS AND DISABILITY IS DETERMINED BY THE PLAN ADMINISTRATOR (RATHER THAN A THIRD PARTY SUCH AS THE SOCIAL SECURITY ADMINISTRATION), THEN INSTEAD OF THE ABOVE, YOU MUST FILE THE CLAIM FOR REVIEW NOT LATER THAN 180 DAYS FOLLOWING RECEIPT OF NOTIFICATION OF AN ADVERSE BENEFIT DETERMINATION. In the case of an adverse benefit determination regarding a rescission of coverage, YOU must request a review within 90 days of the notice.
​
(b)You may submit written comments, documents, records, and other information relating to your claim for benefits.
​
(c)You will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits.
​
(d)Your claim for review must be given a full and fair review. This review will take into account all comments, documents, records, and other information submitted by you relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination.
​
In addition to the Claims Review Procedure above, if your claim is for disability benefits and disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration), then: 
​
(a)Your claim will be reviewed without deference to the initial adverse benefit determination and the review will be conducted by an appropriate named fiduciary of the Plan who is neither the individual who made the adverse benefit determination that is the subject of the appeal, nor the subordinate of such individual.
​
(b)If the initial adverse benefit determination was based on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the fiduciary will consult with a health care professional who was neither involved in or subordinate to the person who made the original benefit determination. This health care professional will have appropriate training and experience in the field of medicine involved in the 

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medical judgment. Additionally, medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the initial determination will be identified.
​
(c)Any medical or vocational experts whose advice was obtained on behalf of the Plan in connection with your adverse benefit determination will be identified, without regard to whether the advice was relied upon in making the benefit determination.
​
(d)If the Plan considers, relies upon or creates any new or additional evidence during the review of the adverse benefit determination, the Plan will provide such new or additional evidence to you, free of charge, as soon as possible and sufficiently in advance of the time within which a determination on review is required to allow you time to respond.
​
(e)Before the Plan issues an adverse benefit determination on review that is based on a new or additional rationale, the Plan Administrator must provide you with a copy of the rationale at no cost to you. The rationale must be provided as soon as possible and sufficiently in advance of the time within which a final determination on appeal is required to allow you time to respond.
​
The Administrator will provide you with written or electronic notification of the Plan's benefit determination on review. The Administrator must provide you with notification of this denial within 60 days (45 days with respect to claims relating to the determination of disability benefits) after the Administrator's receipt of your written claim for review, unless the Administrator determines that special circumstances require an extension of time for processing your claim. In such a case, you will be notified, before the end of the initial review period, of the special circumstances requiring the extension and the date a decision is expected. If an extension is provided, the Plan Administrator must notify you of the determination on review no later than 120 days (or 90 days with respect to claims relating to the determination of disability benefits).
​
The Plan Administrator will provide written or electronic notification to you in a culturally and linguistically appropriate manner. If the initial adverse benefit determination is upheld on review, the notice will include:
​
(a)The specific reason or reasons for the adverse determination.
​
(b)Reference to the specific Plan provisions on which the benefit determination was based.
​
(c)A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits.
​
(d)In the case of a claim for disability benefits, if disability is determined by the Plan Administrator (rather than a third party such as the Social Security Administration):
​
(i)Either the specific internal rules, guidelines, protocols, or other similar criteria relied upon to make the determination, or a statement that such rules, guidelines, protocols, or criteria do not exist.
​
(ii)If the adverse benefit determination is based on a medical necessity or experimental treatment and/or investigational treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances. If this is not practical, a statement will be included that such explanation will be provided to you free of charge, upon request.
​

27
​

(iii)A statement of your right to bring a civil action under section 502(a) of ERISA and, if the Plan imposes a contractual limitations period that applies to your right to bring such an action, a statement to that effect which includes the calendar date on which such limitation expires on the claim.
​
If the Plan offers voluntary appeal procedures, a description of those procedures and your right to obtain sufficient information about those procedures upon request to enable you to make an informed decision about whether to submit to such voluntary appeal. These procedures will include a description of your right to representation, the process for selecting the decision maker and the circumstances, if any, that may affect the impartiality of the decision maker. No fees or costs will be imposed on you as part of the voluntary appeal. A decision whether to use the voluntary appeal process will have no effect on your rights to any other Plan benefits.
​
(iv)A discussion of the decision, including an explanation of the basis for disagreeing with or not following:
​
		●
	the views presented by the claimant to the Plan of health care professionals treating you and vocational professionals who evaluated you;

​
		●
	the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with an adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or

​
		●
	a disability determination made by the Social Security Administration and presented by you to the Plan.

​
If you have a claim for benefits which is denied, then you may file suit in a state or federal court. However, in order to do so, you must file the suit not later than 180 days after the Administrator makes a final determination to deny your claim.
​
What are my rights as a Plan Participant?

​
As a Participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan Participants are entitled to:
​
(a)Examine, without charge, at the Administrator's office and at other specified locations, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.
​
(b)Obtain, upon written request to the Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Administrator may make a reasonable charge for the copies.
​
(c)Receive a summary of the Plan's annual financial report. The Administrator is required by law to furnish each Participant with a copy of this summary annual report.
​
In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your Employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA.
​
If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

28
​

​
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and pay you up to $110.00 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.
​
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in federal court. You and your beneficiaries can obtain, without charge, a copy of the "qualified domestic relations order" (QDRO) procedures from the Administrator.
​
If it should happen that the Plan's fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. The court may order you to pay these costs and fees if you lose or if, for example, it finds your claim is frivolous.
​
What can I do if I have questions or my rights are violated?

​
If you have any questions about the Plan, you should contact the Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
​
ARTICLE XII
GENERAL INFORMATION ABOUT THE PLAN

​
There is certain general information which you may need to know about the Plan. This information has been summarized for you in this Article.
​
Plan Name

​
The full name of the Plan is Weis Markets, Inc. Retirement Savings Plan.
​
Plan Number

​
Your Employer has assigned Plan Number 004 to your Plan.
​
Plan Effective Dates

​
Effective Date. This Plan was originally effective on July 1, 1994. The amended and restated provisions of the Plan become effective on January 1, 2022. However, this restatement was made to conform the Plan to new tax laws and some provisions may be retroactively effective.

29
​

​
Other Plan Information

​
Valuation date. Valuations of the Plan assets are generally made every business day. Certain distributions are based on the Anniversary Date of the Plan. This date is the last day of the Plan Year.
​
Plan Year. The Plan's records are maintained on a twelve-month period of time. This is known as the Plan Year. The Plan Year begins on January 1st and ends on December 31st.
​
The Plan will be governed by the laws of Pennsylvania to the extent not governed by federal law.
​
Benefits provided by the Plan are NOT insured by the Pension Benefit Guaranty Corporation (PBGC) under Title IV of the Employee Retirement Income Security Act of 1974 because the insurance provisions under ERISA are not applicable to this type of Plan.
​
Service of legal process may be made upon your Employer. Service of legal process may also be made upon the Trustee or Administrator.
​
Employer Information

​
Your Employer's name, contact information and identification number are:
​
Weis Markets, Inc.
1000 South Second Street, PO Box 471
Sunbury, Pennsylvania 17801-0471

24-0755415

Telephone: (570) 286-4571
​
Administrator Information

​
The Administrator is responsible for the day-to-day administration and operation of the Plan. For example, the Administrator maintains the Plan records, including your account information, provides you with the forms you need to complete for Plan participation, and directs the payment of your account at the appropriate time. The Administrator will also allow you to review the formal Plan document and certain other materials related to the Plan. If you have any questions about the Plan or your participation, you should contact the Administrator. The Administrator may designate other parties to perform some duties of the Administrator.
​
The Administrator has the complete power, in its sole discretion, to determine all questions arising in connection with the administration, interpretation, and application of the Plan (and any related documents and underlying policies). Any such determination by the Administrator is conclusive and binding upon all persons.

30
​

​
Your Administrator's name and contact information are:
​
Weis Markets, Inc.
1000 South Second Street, PO Box 471
Sunbury, Pennsylvania 17801-0471

Telephone: (570) 286-4571
​
Plan Trustee Information and Plan Funding Medium

​
All money that is contributed to the Plan is held in a Trust Fund. The Trustee is responsible for the safekeeping of the Trust Fund and must hold and invest Plan assets in a prudent manner and in the best interest of you and your beneficiaries. The Trust Fund is the funding medium used for the accumulation of assets from which benefits will be distributed. While all the Plan assets are held in a Trust Fund, the Administrator separately accounts for each Participant's interest in the Plan.
​
The Plan's Trustee is listed below with their contact information:
​
Voya Institutional Trust Company

One Orange Way
Windsor, Connecticut 06095

Telephone: (800) 584-6001

​

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​

APPENDIX
ROLLOVERS FROM OTHER PLANS
​
The Plan will accept Participant "rollover" contributions and/or "direct rollovers" of distributions from the types of plans specified below: (check all that apply)
​
Direct Rollovers. The Plan will accept a "direct rollover" of an eligible rollover distribution from:
​
	[X]
	a qualified plan described in Section 401(a) of the Internal Revenue Code (including a 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan and money purchase plan), excluding after-tax voluntary contributions.

​
	[   ]
	a qualified plan described in Section 401(a) of the Internal Revenue Code (including a 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan and money purchase plan), including after-tax voluntary contributions.

​
	[X]
	a qualified plan described in Section 403(a) of the Internal Revenue Code (an annuity plan), excluding after-tax voluntary contributions.

​
	[   ]
	a qualified plan described in Section 403(a) of the Internal Revenue Code (an annuity plan), including after-tax voluntary contributions.

​
	[X]
	an annuity contract described in Section 403(b) of the Internal Revenue Code (a tax-sheltered annuity), excluding after-tax voluntary contributions.

​
	[   ]
	an annuity contract described in Section 403(b) of the Internal Revenue Code (a tax-sheltered annuity), including after-tax voluntary contributions.

​
	[X]
	a plan described in Section 457(b) of the Internal Revenue Code (eligible deferred compensation plan).

​
	[X]
	a Roth 401(k) deferral account under a qualified plan described in Section 401(a) of the Internal Revenue Code (a 401(k) plan).

​
	[X]
	a Roth 401(k) deferral account under an annuity contract described in Section 403(b) of the Internal Revenue Code (a tax-sheltered annuity).

​
	[   ]
	a Participant loan from another plan.

​
Participant Rollover Contributions from Other Plans. The Plan will accept a Participant "rollover" contribution of an eligible rollover distribution from:

32
​

​
	[X]
	a qualified plan described in Section 401(a) of the Internal Revenue Code (including a 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan and money purchase plan).

​
	[X]
	a qualified plan described in Section 403(a) of the Internal Revenue Code (an annuity plan).

​
	[   ]
	an annuity contract described in Section 403(b) of the Internal Revenue Code (a tax-sheltered annuity).

​
	[   ]
	a governmental plan described in Section 457(b) of the Internal Revenue Code (eligible deferred compensation plan).

​
Participant Rollover Contributions from IRAs:
​
	[X]
	The Plan will accept a Participant "rollover" contribution of the portion of a distribution from a traditional IRA that is eligible to be rolled over and would otherwise be includible in gross income. Rollovers from Roth IRAs or a Coverdell Education Savings Account (formerly known as an Education IRA) are not permitted because they are not traditional IRAs. A rollover from a SIMPLE IRA is allowed if the amounts are rolled over after the Participant has been in the SIMPLE IRA for at least two years.

33
​

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