Document:

Exhibit
10.1

 

SECOND
RESTATEMENT OF THE

 

MERIT
MEDICAL SYSTEMS, INC.

 

401(k) PROFIT
SHARING PLAN

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
  ARTICLE II

  	
  EMPLOYEE PARTICIPATION REQUIREMENTS

  	
  9

  
	
  A.

  	
  Eligible Class of Employees

  	
  9

  
	
  B.

  	
  Participation Requirements and Commencement

  	
  10

  
	
  C.

  	
  Entry Date

  	
  10

  
	
  D.

  	
  Termination

  	
  10

  
	
  E.

  	
  Employment After Termination of Active Participation

  	
  10

  
	
  F.

  	
  Armed Forces

  	
  10

  
	
  G.

  	
  Unpaid Leave of Absence

  	
  10

  
	
  H.

  	
  Notification

  	
  10

  
	
  ARTICLE III

  	
  CONTRIBUTIONS

  	
  11

  
	
  A.

  	
  Employer Contributions

  	
  11

  
	
  B.

  	
  Cash or Deferred Arrangement

  	
  11

  
	
  C.

  	
  Transfer and Rollover Contributions

  	
  19

  
	
  ARTICLE IV

  	
  ACCRUED BENEFITS

  	
  20

  
	
  A.

  	
  Participant Accounts

  	
  20

  
	
  B.

  	
  Valuation of Non-Self Directed Fund and Allocation of
  Non-Self Directed Fund Earnings

  	
  20

  
	
  C.

  	
  Allocations of Contributions

  	
  20

  
	
  D.

  	
  Forfeitures

  	
  20

  
	
  E.

  	
  Limitations on Annual Additions

  	
  21

  
	
  F.

  	
  Statements

  	
  24

  
	
  ARTICLE V

  	
  VESTED BENEFITS

  	
  24

  
	
  A.

  	
  Retirement

  	
  24

  
	
  B.

  	
  Disability

  	
  24

  
	
  C.

  	
  Death

  	
  24

  
	
  D.

  	
  Other Separations From Service

  	
  24

  
	
  E.

  	
  Computation of Years of Service

  	
  26

  
	
  ARTICLE VI

  	
  DISTRIBUTION OF BENEFITS

  	
  26

  
	
  A.

  	
  Segregation or Distribution of Accounts

  	
  26

  
	
  B.

  	
  Method of Distribution

  	
  27

  
	
  C.

  	
  Commencement and Amount(s) of Distribution

  	
  27

  
	
  D.

  	
  Hardship Distributions

  	
  31

  
	
  E.

  	
  Spousal Survivors Benefit and Beneficiary Designation

  	
  32

  
	
  F.

  	
  Portability

  	
  33

  
	
  G.

  	
  Missing Participants and Beneficiaries

  	
  33

  
	
  H.

  	
  Other In-Service Distributions

  	
  33

  
	
  ARTICLE VII

  	
  ANNUITY PROVISIONS

  	
  34

  
	
  A.

  	
  Application

  	
  34

  
	
  B.

  	
  Definitions

  	
  34

  
	
  C.

  	
  Distribution of Qualified Annuity

  	
  36

  
	
  D.

  	
  Distribution of Qualified Pre-Retirement Survivor Annuity

  	
  36

  
	
  E.

  	
  Notice Requirements

  	
  36

  
	
  F.

  	
  Cash Out

  	
  37

  
	
  ARTICLE VIII

  	
  ADMINISTRATION OF THE PLAN

  	
  37

  
	
  A.

  	
  Plan Administration

  	
  37

  
	
  B.

  	
  Composition

  	
  37

  

 

i

 

	
  C.

  	
  Powers and Duties of the Administrator

  	
  38

  
	
  D.

  	
  Claims

  	
  39

  
	
  E.

  	
  Notification

  	
  39

  
	
  ARTICLE IX

  	
  ALLOCATION OF FIDUCIARY RESPONSIBILITIES

  	
  40

  
	
  ARTICLE X

  	
  TRUST PROVISIONS

  	
  41

  
	
  A.

  	
  Separate Trust Agreement

  	
  41

  
	
  B.

  	
  Investment in Employer Stock

  	
  41

  
	
  ARTICLE XI

  	
  PARTICIPANT-DIRECTED INVESTMENTS

  	
  41

  
	
  A.

  	
  Election

  	
  41

  
	
  B.

  	
  Accounting for Individual Investment Funds

  	
  42

  
	
  C.

  	
  Expenses

  	
  42

  
	
  D.

  	
  Disposition of Individual Investment Funds

  	
  42

  
	
  ARTICLE XII

  	
  LOANS TO PARTICIPANTS

  	
  42

  
	
  A.

  	
  Right to Borrow

  	
  42

  
	
  B.

  	
  Loan Terms

  	
  42

  
	
  C.

  	
  Allocation of Gain or Loss on Loan

  	
  44

  
	
  ARTICLE XIII

  	
  AMENDMENT

  	
  44

  
	
  A.

  	
  Amendment by Principal Employer

  	
  44

  
	
  B.

  	
  Notice

  	
  44

  
	
  ARTICLE XIV

  	
  TERMINATION

  	
  44

  
	
  A.

  	
  Termination by Employer

  	
  44

  
	
  B.

  	
  Notice

  	
  45

  
	
  ARTICLE XV

  	
  PREDECESSOR PLANS

  	
  45

  
	
  ARTICLE XVI

  	
  TOP-HEAVY PROVISIONS

  	
  45

  
	
  A.

  	
  Definitions

  	
  45

  
	
  B.

  	
  Minimum Contributions and Allocations

  	
  47

  
	
  ARTICLE XVII

  	
  MISCELLANEOUS

  	
  48

  
	
  A.

  	
  Right to Trust Assets

  	
  48

  
	
  B.

  	
  No Guarantee of Employment

  	
  48

  
	
  C.

  	
  Spendthrift/Qualified Domestic Relations Orders

  	
  48

  
	
  D.

  	
  Number and Gender

  	
  48

  
	
  E.

  	
  Conclusiveness of Records

  	
  49

  
	
  F.

  	
  Controlled Groups/Owner-Employee Control/Affiliated Service
  Groups/Predecessor Employer/Leased Employees

  	
  49

  
	
  G.

  	
  Successor Employer

  	
  49

  
	
  H.

  	
  Plan Merger

  	
  49

  
	
  I.

  	
  Payment of Expenses

  	
  49

  
	
  J.

  	
  Governing Law

  	
  49

  
	
  ARTICLE XVIII

  	
  PRINCIPAL EMPLOYER AND ASSOCIATED EMPLOYERS

  	
  50

  
	
  A.

  	
  Application

  	
  50

  
	
  B.

  	
  Participation by Associated Employers

  	
  50

  
	
  C.

  	
  Status of Associated Employers

  	
  50

  
	
  D.

  	
  Transfer of Employment

  	
  50

  
	
  E.

  	
  Simultaneous Employment

  	
  50

  
	
  F.

  	
  Termination of Participation by Associated Employer

  	
  50

  

 

ii

 

SECOND
RESTATEMENT OF THE

MERIT
MEDICAL SYSTEMS, INC.

401(k) PROFIT
SHARING PLAN

 

WHEREAS, Merit Medical Systems, Inc. (the “Principal
Employer”) maintains the Merit Medical Systems, Inc. 401(k) Plan and related
trust (the “Plan”) for the benefit of its employees and the employees of its
participating affiliates, which Plan was initially adopted effective January 1991;
and

 

WHEREAS, in 2001, the Principal Employer
amended and restated the Plan in its entirety effective January 1, 1997
pursuant to that certain First Restatement of the Merit Medical Systems, Inc.
401(k) Profit Sharing Plan and Trust (the “First Restatement”); and

 

WHEREAS, subsequent to the First Restatement,
the Principal Employer adopted the First through Twelfth Amendments to the
First Restatement of the Plan (the “Amendments”); and

 

WHEREAS, the Principal Employer now desires
to amend and restate the Plan document in its entirety to incorporate the
Amendments and make certain additional changes.

 

NOW, THEREFORE, the Principal Employer hereby
amends and restates the Plan as follows, effective as of the Effective Date
specified in Article I below.

 

ARTICLE I

DEFINITIONS

 

For the purpose of this Plan, the following
terms shall have the meanings set forth in this Article unless a different
meaning is required by the context.

 

1.             Accounts.  Each of the separate accounts maintained by
the Administrator for a Participant under the Plan.

 

2.             Accrued Benefit.  With respect to any Valuation Date, the value
on that Valuation Date of each of a Participant’s Accounts, determined in
accordance with Article IV.

 

3.             Administrator.  The Plan Administrator appointed pursuant to Article
VIII below.

 

4.             Anniversary Date.  The first day of each Plan Year.

 

5.             Applicable Amount.  The amount of $5,000.

 

6.             Associated Employer.  Any entity related to the Principal Employer
under Code Sections 414(b), 414(c) or 414(m) which, with the consent of the
Principal Employer, has adopted and maintained this plan for its
Employees.  The Associated Employers that
have adopted the Plan include Merit Sensor Systems, Inc. and Merit Services, Inc.

 

7.             Beneficiary.  The individual or entity designated by a
Participant to receive any amount distributable after the death of the
Participant; or in the absence of such a designation, the individual or entity
identified in Article VI E below.

 

8.             Benefiting.  A Participant is benefiting under the Plan
for a Plan Year if he receives or is deemed 

 

1

 

to
receive an allocation in accordance with Regulation Section 1.410(b)-3(a) for
the Plan Year.

 

9.             Break in Service.  An event which occurs when a Participant
fails to complete at least five hundred and one (501) Hours of Service during a
Plan Year; provided, however, that if a Plan Year is less than twelve (12)
months, no Employee or former Participant shall be deemed to have had a Break
in Service in that short year for any purpose.

 

Solely for purposes of determining whether a
Break in Service for eligibility and vesting purposes has occurred, an Employee
who is absent from work for maternity or paternity reasons shall receive credit
for the Hours of Service which would otherwise have been credited to the
Employee but for the absence, or in any case in which those hours cannot be
determined, eight (8) Hours of Service per day of absence.  “Absence from work for maternity or paternity
reasons” shall mean an absence (a) by reason of the pregnancy of the Employee, (b)
by reason of a birth of a child of the Employee, (c) by reason of the placement
of a child with the Employee in connection with the adoption of the child by
the Employee, or (d) for purposes of caring for the child for a period
beginning immediately following such a birth or placement.  The Hours of Service credited hereunder shall
be credited (i) in the Plan Year in which the absence begins if the crediting
is necessary to prevent a Break in Service in that period, or (ii) in all other
cases, in the following Plan Year. 
Notwithstanding the foregoing, no credit will be given for absence from
work for maternity or paternity reasons unless the Employee furnishes to the
Administrator such timely information as shall be reasonably required to
establish the reasons for the absence and the number of days for which there
was an absence for maternity or paternity reasons.

 

10.           Code.  The Internal Revenue Code of 1986, as amended
from time to time.

 

11.           Compensation.  With respect to any Employee for any Plan
Year, the Employee’s Section 415 Total Earnings actually paid during the Plan
Year adjusted as provided below; provided, however, that with
respect to a Participant’s initial Plan Year of participation there shall be
excluded Compensation for Hours of Service rendered by the Participant prior to
the date he or she commences participation in the Plan.  Anything herein to the contrary
notwithstanding, for purposes of computing Employer contributions and minimum
allocations in a year the Plan is Top-Heavy, Compensation shall have the
meaning set forth in Article XVI below, and for purposes of computing
limitations on Annual Additions, Compensation shall have the meaning set forth
in Article IV E below.

 

Compensation shall also include contributions
made pursuant to salary reduction agreements executed by the Participant which
are excludable from the gross income of the Participant under Section 125,
402(a)(8), 402(h) or 403(b) of the Code and elective amounts that are not includable in the gross income of the
Employee by reason of Section 132(f)(4) of the Code.

 

The
annual Compensation of a Participant taken into account under the Plan for any
Plan Year shall not exceed $200,000,
as adjusted by the Secretary of the Treasury for increases in the cost of
living under Section 401(a)(17)(B) of the Code. 
The cost of living adjustment in effect for a calendar year shall apply
to any Plan Year or other determination period beginning during that calendar
year.  If a Plan determines Compensation
for a Plan Year that contains fewer than 12 calendar months, then the annual
Compensation limit for that short Plan Year is an amount equal to the annual
Compensation limit for the calendar year in which the Plan Year begins
multiplied by the ratio obtained by dividing the number of full months in the
short Plan Year by 12.

 

If
Compensation for any prior Plan Year is taken into account in determining an
Employee’s contributions or benefits for the current year, the Compensation for
such prior year is subject to the applicable annual Compensation limit in
effect under Code Section 401(a)(17) for that prior year.

 

Notwithstanding the foregoing, Compensation for a Plan Year commencing
on or after January 1, 

 

2

 

2008
shall not include amounts paid by the Employer after the effective date of the
Participant’s “severance from employment” within the meaning of Treasury
Regulation Section 1.415(a)-1(f)(5) except for the following amounts which the
Employer pays by the later of 2 1⁄2 months after the effective date of severance
from employment, or the end of the Limitation Year that includes the effective
date of severance from employment:

 

(a)  Regular pay for services
during the Participant’s regular working hours, or compensation for services
rendered outside the Participant’s regular working hours (such as overtime or
shift differential), bonuses, commissions or other similar accrued amounts that
would have been paid had the Participant not incurred a severance from
employment; and

 

(b)  Payment for unused, accrued
bona fide sick, vacation or other leave, but only to the extent the Participant
would have been able to use such leave if employment had continued.

 

In no event shall any severance pay, severance benefits or
non-qualified deferred compensation paid after the date of severance of
employment be included in Compensation, and no contributions shall be made
under the Plan with respect to such excluded amounts.

 

12.           Direct Rollover.  A Direct Rollover is a payment by the Plan to
the Eligible Retirement Plan specified by the Distributee.

 

13.           Distributee.  A Distributee includes an Employee or former
Employee to whom a distribution is to be, or may be, made.  In addition, the Employee’s or former
Employee’s surviving spouse and the Employee’s or former Employee’s spouse or
former spouse who is an alternate payee under a qualified domestic relations
order, as defined in Section 414(p) of the Code, are Distributees with respect
to the interest of the spouse or former spouse. 
Effective on and after January 1, 2010, a Distribute also includes a
Participant’s non-spouse Beneficiary.

 

14.           Effective Date.  The effective date of the provisions of this
restated Plan document is January 1, 2009, except as otherwise expressly
provided herein.  Notwithstanding the
foregoing, to the extent that the Economic Growth and Tax Relief Reconciliation
Act of 2001, the Pension Protection Act of 2006 or any other legislation
enacted or regulations promulgated since the prior restatement of the Plan
require any provisions herein to have an earlier effective date, such
provisions shall be effective as of that earlier required effective date.

 

15.           Elective Deferrals.  Salary Reduction Contributions under Article III
B 1, other than Roth Elective Deferrals; provided, however, that for purposes
of Article III B 3 and Article III B 4 below, the term “Elective Deferrals”
shall have the broader meaning set forth in Article III B 3 below.

 

16.           Elective Deferral Account.  The Account to be maintained for a
Participant under Article IV below, if applicable, consisting of the
Participant’s share of Salary Reduction Contributions and the income, expenses,
gains and losses attributable thereto (other than Roth Elective Deferrals and
the income, expenses, gains and losses attributable to such Roth Elective
Deferrals).

 

17.           Eligible Retirement Plan.  An Eligible Retirement Plan is any of the
following plans or accounts that will accept the Distributee’s Eligible
Rollover Distribution: an individual retirement account described in Section 408(a)
of the Code; an individual retirement annuity described in Section 408(b) of
the Code; an annuity plan described in Section 403(a) of the Code; a qualified
trust described in Section 401(a) of the Code; an annuity contract described in Section 403(b) of the Code; and an
eligible plan under Section 457 of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state
or political subdivision of a state that agrees to separately account for
amounts transferred to such plan from this Plan.  However, in the case of: (a) an
Eligible Rollover Distribution after 2009 to a non-spouse Beneficiary, an
Eligible Retirement Plan is an individual retirement account or individual
retirement annuity only; and (b) in the case of an 

 

3

 

Eligible
Rollover Distribution from a Roth Elective Deferral Account, an Eligible
Retirement Plan is a designated Roth Account or Roth IRA within the meaning of
Code Section 402(c)(8) only.

 

18.           Eligible Rollover
Distributions.  An Eligible
Rollover Distribution is any distribution of all or any portion of the balance
to the credit of the Distributee, except that an Eligible Rollover Distribution
does not include any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the Distributee or the joint lives (or joint life
expectancies) of the Distributee and the Distributee’s designated beneficiary,
or for a specified period of ten years or more; any distribution to the extent
such distribution is required under Section 401(a)(9) of the Code; the portion
of any distribution that is not includable in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to
employer securities); and any distributions made in the event of hardship
pursuant to Article VI D.

 

19.           Employee.  (a) An individual whose relationship to the
Employer is within the meaning of “employee” under Section 7701 of the Code or
the common law of Utah and who is classified as an employee under and paid
through the Employer’s regular payroll system; and (b) an individual who is a
Leased Employee.

 

20.           Employer.  The Principal Employer and any Associated
Employer to the extent provided in Article XVIII B below.

 

21.           Employer Stock.  Shares of common stock of the Principal
Employer.

 

22.           ERISA.  The Employee Retirement Income Security Act
of 1974, as it may be amended from time to time.

 

23.           Forfeiture.  Any portion of a Regular Account or
Non-Qualified Matching Contribution Account which is forfeited under Article V
D 2 below.

 

24.           Highly Compensated Employee.  Any Employee who performs service for the
Employer during the Plan Year and who:  (a)
during the twelve (12) month period immediately preceding the Plan Year (the “Prior
Year”), received compensation (within the meaning of Section 415(c) of the
Code) from the Employer in excess of $80,000 and was a member of the “top-paid
group” (as defined in Code Section 414(q)(3)) for such year, or (b) who is or
was a five percent (5%) or greater owner of the Employer at any time during the
Plan Year or the Prior Year.  The $80,000
amount shall be adjusted annually at the same time and in the same manner as
under Code Section 415(e), except that the base period for determining such
adjustments is the calendar quarter ending September 30, 1996.  The determination of who is a Highly
Compensated Employee, including the determinations of the number and identity
of Employees in the top-paid group, and the Compensation that is considered,
shall be made in accordance with Section 414(q) of the Code, and the
Regulations thereunder.

 

25.           Hour of Service shall mean:

 

(a)           Each hour for which an
Employee is paid, or entitled to payment, for the performance of duties for the
Employer.  These hours shall be credited
to the Employee for the computation period or periods in which the duties are
performed;

 

(b)           Each hour for which an
Employee is paid, or entitled to payment, by the Employer on account of a
period of time during which no duties are performed (irrespective of whether
the employment relationship has terminated) due to vacation, holiday, illness,
incapacity (including disability), layoff, jury duty, military duty or leave of
absence.  No more than five hundred and
one (501) Hours of Service will be credited under this paragraph for any single
continuous period (whether or not such period occurs in a single computation 

 

4

 

period).  Hours under this paragraph shall be
calculated and credited pursuant to Section 2530.200b-2 of the Department of
Labor Regulations, which are incorporated herein by this reference; and

 

(c)           Each hour for which back pay, irrespective of
mitigation of damages, is either awarded or agreed to by the Employer.  The same Hours of Service shall not be
credited both under paragraph (a) or paragraph (b), as the case may be, and
under this paragraph (c).  These hours
shall be credited to the Employee for the computation period or periods to
which the award or agreement pertains rather than the computation period in
which the award, agreement or payment is made.

 

Hours of Service shall be determined on the basis of actual hours
worked, except that in the case of an Employee who customarily works all
business days of the Employer in a capacity classified by the Employer on a
uniform and nondiscriminatory basis as “full time” and not “part time” or “temporary,”
Hours of Service shall be determined on the basis of weeks worked, with an
Employee credited with forty-five (45) Hours of Service for each calendar week
(Monday through Sunday) in which the Employee actually works at least one (1) hour
for the Employer.

 

Hours of Service shall be credited for employment with other
Participants of an affiliated service group (as defined in Section 414(m) of
the Code), a controlled group of corporations (as defined in Section 414(b) of
the Code), or a group of trades or businesses under common control (as defined
in Section 414(c) of the Code), of which the Employer is a Participant, and any
other entity required to be aggregated with the Employer pursuant to Section 414(o)
of the Code and the Regulations thereunder. 
Hours of Service will also be credited for any individual considered an
employee for purposes of this Plan under Sections 414(n) or 414(o) of the Code
and the Regulations thereunder.

 

26.           Individual Investment Account.  The bookkeeping account to be maintained for
a Participant who has elected to direct the investment of all or a part of the
assets in his Accounts.

 

27.           Individual Investment Fund.  The assets in a Participant’s Individual
Investment Accounts invested by Trustee as directed by the Participant.

 

28.           Leased Employee.  An individual deemed to be an employee of the
Employer under Section 414(n) or (o) of the Code, including any individual not
an employee, who pursuant to an agreement between the Employer and any other
person has performed services for the Employer (or for the Employer and related
persons determined in accordance with Section 414(n)(6) of the Code) on a
substantially full time basis for a period of at least one (1) year if the
services were performed under the primary direction or control of the
Employer.  Notwithstanding the foregoing,
an individual shall not be a Leased Employee if:  (a) the individual is covered by a money
purchase pension plan providing: (i) a non-integrated employer contribution
rate of at least ten percent (10%) of Compensation, as defined in Article I
above, but including amounts contributed pursuant to a salary reduction
agreement which are excludable from the employee’s gross income under Section 125,
Section 402(e)(3), Section 402(h) or Section 403(b) of the Code, (ii) immediate
participation, and (iii) full and immediate vesting; and (b) all individuals
who would otherwise be Leased Employees) do not comprise more than twenty
percent (20%) of the Employer’s non-highly compensated work force.

 

29.           Named Fiduciary.  An individual or entity designated in Article
IX below or by Employer in the manner provided in the Plan to carry out
fiduciary responsibilities.

 

30.           Non-Highly Compensated
Employee.  An Employee
who is not a Highly Compensated Employee.

 

31.           Non-Qualified Matching Contribution Account.  The Account to be maintained for a
Participant under Article IV below, if applicable, consisting of his share of Non-Qualified
Matching Contributions, 

 

5

 

Forfeitures from the Non-Qualified Matching Contribution Accounts of
other Participants (if applicable), and the income, expenses, gains and losses
attributable thereto.

 

32.           Non-Qualified Matching Contributions.  The Employer contributions made under Article
III B 2 below.

 

33.           Non-Self Directed Fund.  The assets of all Accounts held by Trustee
excluding assets of any Individual Investment Funds and Segregated Funds.

 

34.           Normal Retirement Date.  In the case of Participants whose initial
date of participation is prior to January 1, 2000, the date on which a
Participant attains the age of fifty-nine and one-half (59-1/2).  In
the case of individuals who first become Participants on or after January 1,
2000, the later of the date they attain age sixty-five (65) or complete at
least five (5) Years of Service for vesting purposes.

 

35.           Participant.  An Employee who participates in the Plan
under Article II below or who has made a Transfer Contribution to the Plan
under Article III C 3 prior to satisfying the eligibility requirements of Article
II (but only to such Employee’s resulting Transfer Account).

 

36.           Permanent Disability.  A disability of the type described in Article
V B 2.

 

37.           Plan.  The Merit Medical Systems, Inc. 401(k) Profit
Sharing Plan and related trust, the terms and provisions of which are set forth
in this document, as amended from time to time.

 

38.           Plan Year.  The calendar year.

 

39.           Profit-Sharing Contributions.  Employer contributions made pursuant to Section
III A 1 below in the discretion of the Principal Employer.

 

40.           Predecessor Institution.  Any business entity all (or substantially
all) of the assets of which shall have been purchased by any Employer (or any
Predecessor Institution as herein defined) or which has been merged or
consolidated with any Employer (or any Predecessor Institution as herein
defined).

 

41.           Predecessor Plan.  This Plan as in effect prior to the Effective
Date.

 

42.           Principal Employer.  Merit Medical Systems, Inc.

 

43.           Qualified Reservist.  A Participant who is absent from employment
with his Employer as a result of being a member of a military “reserve
component” (within the meaning of Section 101 of Title 37 of the United States
Code) ordered or called to active military duty for a period in excess of 179
days or indefinitely

 

44.           Regular Account.  The Account to be maintained for a
Participant under Article IV below, if applicable, consisting of the
Participant’s share of Profit-Sharing Contributions, reallocated Forfeitures of
Regular Accounts, and the income, gains, losses and expenses attributable
thereto.

 

45.           Regulations.  The Treasury Regulations promulgated under
the Code, as in effect from time to time.

 

46.           Roth Elective Deferrals.  Salary Reduction Contributions made on or
after January 1, 2010 with respect to a Participant under Article III B 1 (g) that
the Participant has designated as Roth Elective Deferral.

 

6

 

47.           Roth Elective Deferral Account.  The Account to be maintained for a
Participant under Article IV below, if applicable, consisting of the
Participant’s share of Roth Elective Deferrals made on or after January 1, 2010
and the income, expenses, gains and losses attributable to such Roth Elective
Deferrals.

 

48.           Salary Reduction Contributions.  The
contributions made by the Employer on behalf of electing Participants pursuant
to Article III A 2 below.  In the case of
a Participant who has attained or will attain age 50 or older during the
calendar year in question, the Participant’s Salary Reduction Contributions for
the year shall be treated as “catch-up” contributions in accordance with, and
subject to the limitations of, Section 414(v) of the Code.  Such catch-up contributions shall not be
taken into account for purposes of applying the required limitations of
Sections 402(g) and 415 of the Code and shall be disregarded in applying the
provisions of the Plan that implement the requirements of Sections 401(k)(3),
401(k)(11), 401(k)(12), 410(b) and 416 of the Code.

 

49.           Section 415 Total Earnings.  A Participant’s earned income, wages,
salaries, fees for professional service and other amounts received for personal
services actually rendered in the course of employment with the Employer
maintaining the Plan (including, but not limited to, commissions paid salesmen,
compensation for services on the basis of a percentage of profits and bonuses)
and excluding the following:

 

(a)           Employer contributions to a plan of deferred
compensation to the extent contributions are not included in gross income of
the Employee for the taxable year in which contributed, or on behalf of an
Employee to a simplified employee pension plan to the extent the contributions
are deductible under Section 219(b)(7) of the Code, and any distributions from
a plan of deferred compensation whether or not includable in the gross income
of the Employee when distributed; provided, however, that distributions
received by an Employee from an unfunded non-qualified plan sponsored by the
Principal Employer are considered Section 415 Total Earnings in the year the
amounts so received are included in the gross income of the Employee for income
tax purposes;

 

(b)           Amounts realized from the exercise of a non-qualified
stock option, or when restricted stock (or property) held by an Employee
becomes freely transferable or is no longer subject to a substantial risk of
forfeiture;

 

(c)           Amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock option; and

 

(d)           Other amounts which receive
special tax benefits, or contributions made by an Employer (whether or not
under a salary reduction agreement) towards the purchase of an annuity contract
under Section 403(b) of the Code (whether or not the contributions are
excludable from the gross income of the Employee).

 

Notwithstanding
the foregoing, Section 415 Total Earnings shall include any elective deferrals
as defined in Code Section 402(g)(3) and any amount which is contributed or
deferred by the Employer at the election of the Employee and which is
excludable from the Employee’s gross income by reason of Code Section 125.  Additionally,
Section 415 Total Earnings shall also include elective amounts that are not
includable in the gross income of the Employee by reason of Section 132(f)(4) of
the Code.

 

Section
415 Total Earnings for a Limitation Year shall not include amounts paid by the
Employer after the effective date of the Participant’s “severance from
employment” within the meaning of Regulation Section 1.415(a)-1(f)(5) except
for the following amounts which the Employer pays by the later of (i) 2 1⁄2
months after the effective date of severance from employment, or (ii) the end
of the Limitation Year that includes the effective date of severance from
employment:

 

(x)  Regular pay for services
during the Participant’s regular working hours, or compensation for

 

7

 

services rendered outside
the Participant’s regular working hours (such as overtime or shift
differential), bonuses, commissions or other similar accrued amounts that would
have been paid had the Participant not incurred a severance from employment;
and

 

(y) 
Payment for unused, accrued bona fide sick, vacation or other leave, but only
to the extent the Participant would have been able to use such leave if
employment had continued.

 

In
no event shall any severance pay, severance benefits or non-qualified deferred
compensation paid after the date of severance of employment be included in Section 415
Total Earnings.

 

50.                                 Segregated
Account.  The Vested Benefit of a former
Participant, to the extent segregated by Trustee under Article VI A below.

 

51.                                 Segregated Fund.  The assets segregated by Trustee under Article VI
A below.

 

52.                                 Separation from
Service (Separated from Service).  Termination of a Participant’s status as an
Employee; provided, however, that for purposes of determining a Participant’s
entitlement to a distribution, a Participant shall not be considered to have
separated from service if under the Code and Regulations a distribution to him
would be considered an impermissible “in service” distribution.

 

53.                                 Spouse.  For all purposes under the Plan, a
Participant’s “spouse” shall mean the person to whom a Participant is
recognized as legally married under the law of the State in which the
Participant resides at the time in question, but only if: (a) such person
also qualifies as the Participant’s “spouse” for purposes of Sections
401(a)(11) and 402(c)(9) of the Code; and (b) the marriage conforms
to the definition of “marriage” contained in, and does not violate, the federal
“Defense of Marriage Act” (P.L. 104-199).” 
Under the federal Defense of Marriage Act, “marriage” is defined as “a
legal union between one man and one woman as husband and wife.”  A Participant’s “surviving spouse” means the
person who was the Participant’s spouse immediately prior to the time of the
Participant’s death.

 

54.                                 Temporary
Employee means an Employee who, effective on or after April 1,
2007, is classified as a “temporary employee” under the Employer’s system of
personnel classification.

 

55.                                 Transfer
Account.  The account to be maintained
for a Participant under Articles III C and IV below, if applicable, consisting
of his Transfer Contributions and the income, expenses, gains and losses
attributable thereto.

 

56.                                 Transfer
Contributions.  Direct
rollover contributions to the Plan under Article III C, indirect (60-day)
rollover contributions to the Plan under Article III C, and any
trustee-to-trustee transfers to the Plan under Article III C 3 not
constituting a distribution from the transferor plan.

 

57.                                 Trust.  The trust formed by the Employer in
conjunction with the adoption of the Employer’s Plan.

 

58.                                 Trustee.  The Trustee(s) appointed by the
Employer.  Effective on and after January 1,
2003, the Trustee is Reliance Trust Company.

 

59.                                 Trust Fund.  The assets held by Trustee, comprising the
Non-Self Directed Fund and the Individual Investment Funds and the Segregated
Fund.

 

60.                                 UMI Transferees.  Former employees of Universal Medical
Instruments (“UMI”) who became Employees on February 1, 1997 in connection
with the Principal Employer’s February 1, 1997 acquisition of

 

8

 

business assets from UMI.

 

61.                                 USERRA.  The Uniformed Services Employment and
Reemployment Rights Act, as codified at Chapter 43 of Title 38 of the United
States Code.

 

62.                                 Valuation Date.  The last day of each quarter and with respect
to Individual Investment Accounts such other dates as to which the investments
can be valued under the applicable investment option.

 

63.                                 Vested Benefit.  The non-forfeitable portion of a Participant’s
Accrued Benefit as determined under Article V below with respect to his
other Accounts.

 

64.                                 Year of Service.

 

(a)                                  For purposes of
determining vesting, a Plan Year in which an Employee has completed at least
one thousand (1,000) Hours of Service. 
Notwithstanding the foregoing, if the Plan Year is a period of less than
twelve (12) consecutive months due to a Plan amendment changing Plan Years, a
Participant or Employee shall be credited with a Year of Service during the
short Plan Year for purposes of vesting if he completes the requisite
one-thousand (1,000) Hours of Service during the twelve (12) consecutive month
period which begins on the first day of the short Plan Year.  Years of Service shall not be taken into
account for purposes of benefit accrual.

 

(b)                                 Service with a
Predecessor Institution shall be considered service with an Employer if the
Predecessor Institution maintained a qualified plan which is continued in
conjunction with or as a part of this Plan. 
UMI Transferees shall be credited for eligibility and vesting purposes
for the period of their pre-participation service with Universal Medical
Instruments.  Employees previously
employed by Sentir, Inc. shall be credited for eligibility and vesting
purposes with the period of their pre-November 1, 1994 service with Sentir, Inc.  Employees previously employed by Mallinckrodt, Inc.
who transfer employment to the Employer directly from Mallinckrodt, Inc.
between August 1, 1999 and November 30, 1999 in connection with the
Employer’s acquisition of the business of Mallinckrodt, Inc. shall be
credited for eligibility and vesting purposes with the period of their
pre-transfer service with Mallinckrodt, Inc.

 

(c)                                  Other service
with a Predecessor Institution or another employer shall be considered service
with an Employer to the extent required by law.

 

(d)                                 Effective on
and after April 1, 2007, in the case of a Temporary Employee first
commencing employment with an Employer on or after April 1, 2007, for
participation purposes, a Year of Service means: (i) the period consisting
of the first consecutive twelve (12) months of the Temporary Employee’s
employment with the Employer if the Temporary Employee completes at least 1,000
Hours of Service during that twelve-month period; and (ii) any Plan Year
ending after the Temporary Employee’s first twelve (12) months of employment
during which the Temporary Employee completes at least 1,000 Hours of Service
(or in the case of a Plan Year consisting of less than twelve (12) months, at
least that number of Hours of Service equal to 1,000 multiplied by a fraction
the numerator of which is the number of months in the partial Plan Year and the
denominator of which is twelve (12)).

 

ARTICLE
II

EMPLOYEE
PARTICIPATION REQUIREMENTS

 

A.                                   Eligible Class of
Employees.  All
Employees other than Leased Employees shall be eligible to participate in the
Plan provided they satisfy the applicable participation requirements set forth
in Article II B

 

9

 

below. 
Leased Employees may not participate in the Plan.  Any provision of this Plan to the contrary
notwithstanding (including Article XVII F), no individual who is deemed an
Employee of the Employer by virtue of Article XVII F 1 below shall be
eligible to become a Participant unless he would be considered an Employee
within the eligible class without the application of Article XVII F 1
below.

 

B.                                     Participation
Requirements and Commencement.

 

1.                                       Any Employee
who first commences employment with the Employer prior to April 1, 2007
shall become a Participant on the Entry Date (as defined in Article II C
below) he or she first renders one Hour of Service for the Employer as an
Employee within the eligible class.

 

2                                          Any Employee who first
commences employment with the Employer on or after April 1, 2007 shall
become a Participant on the Entry Date (as defined in Article II C below)
on which he or she completes ninety (90) days of continuous employment within
the eligible class for the Employer; provided, however, that a Temporary
Employee who first commences employment for the Employer on or after April 1,
2007 shall be eligible to participate only upon the earlier of: (i) the
Entry Date on which he or she completes one Year of Service; or (ii) the
date he or she transfers from Temporary Employee status to another status
within the eligible class of Employees and completes at least ninety (90) days
of continuous service.  No Employee who
first commences employment with the Employer on or after April 1, 2007
shall be eligible to participate in the Plan unless and until he or she first
meets the ninety (90) days of continuous service requirement or Year of Service
requirement, as applicable, set forth in the immediately preceding sentence.

 

C.                                     Entry Date.  For purposes of the Plan, the term “Entry
Date” means each day of the Plan Year.

 

D.                                    Termination.  A Participant’s active participation in the
Plan shall terminate on the earlier of:  (1) the
date he or she incurs a Separation from Service; or (2) the date the
Participant ceases to be within the class of Employees eligible to participate
in the Plan.  An individual will cease to
be Participant when he or she no longer has any Accrued Benefit under the Plan.

 

E.                                      Employment
After Termination of Active Participation.  A former active Participant will again become
an active Participant immediately upon completing an Hour of Service as an
Employee within the eligible class after recommencement of employment with an
Employer.

 

F.                                      Armed Forces.  Any provision of this Plan to the contrary
notwithstanding, service credit, eligibility, contributions and benefits with
respect to qualified military service under USERRA will be provided in
accordance with Code Section 414(u).

 

G.                                     Unpaid Leave of
Absence.  A Participant who ceases to
perform the duties of his employment pursuant to an unpaid leave of absence
granted by Employer shall not be deemed to have terminated active
participation.  During the leave of
absence and during any Plan Year in which he resumes employment at the end of
the leave of absence, he shall be treated as a Participant who has neither
terminated active participation nor completed a Year of Service during the
applicable Plan Year(s), unless he has otherwise completed a Year of Service
for the Plan Year(s).  If a Participant
fails to return to service at the end of his leave of absence, the
determination relating to his termination of active participation shall be made
as of the last day of the Plan Year in which he fails to return to
service.  Rules governing leaves of
absence shall be applied to all Participants in a uniform and nondiscriminatory
manner.

 

H.                                    Notification.  After each Plan Year, the Employer shall
notify the Administrator and Trustee of the name, address, Hours of Service and
Compensation of each Employee during the Plan Year.  If the Hours of Service of an Employee exceed
one thousand (1,000) in a Plan Year, a statement of this fact shall
suffice.  The

 

10

 

notice shall also include the names of all
Participants who, during the Plan Year, were within the purview of Article II
E and F above or whose participation in the Plan terminated under the
provisions of Article II D above, and the date of birth and date of
employment or reemployment of each Employee newly eligible to participate.

 

ARTICLE
III

CONTRIBUTIONS

 

A.                                   Employer
Contributions.

 

1.                                       The Employer
may make such Profit Sharing Contributions on behalf of its eligible
Participants each Plan Year, if any, as the Employer in its sole discretion may
determine.  Profit Sharing Contributions
shall be made in cash or in shares of Employer Stock, as the Employer in its
sole discretion determines.

 

2.                                       The Employer
shall also make such Salary Reduction Contributions on behalf of its
Participants as are provided in Article III B 1 below.  Effective on and after January 1, 2010,
Salary Reduction Contributions may at the election of the applicable
Participant be treated as Roth Elective Deferrals.  Except to the extent affirmatively designated
by the Participant in question as Roth Elective Deferrals in accordance with Article III
B 1 (g), all Salary Reduction Contributions shall be treated as Elective
Deferrals.

 

3.                                       The Employer
may also make such Non-Qualified Matching Contributions on behalf of its
Participants as are provided under Article III B 2 below.

 

4.                                       In no event,
however, shall the Employer’s contribution for any Plan Year exceed the maximum
amount deductible from Employer’s income for the taxable year with or within
which the Plan Year ends under Section 404 of the Code.  The Employer’s contributions for a Plan Year
shall be deemed to have been made contingent upon their deductibility for
federal income tax purposes and shall be paid within the time limit prescribed
by the Code to qualify the contributions for a deduction for federal income tax
purposes for the Plan Year.  Any
Profit-Sharing Contributions, Salary Reduction Contributions, or Non-Qualified
Matching Contributions, for a Plan Year shall be held and invested by the
Trustee in such manner and upon such terms as are provided in Articles X
and XI below; provided, however, that the Administrator may direct that the
investment of any such Employer contributions for a Plan Year received by
Trustee before year end shall be accounted for separately during the remainder
of the Plan Year, with the advance contribution to be treated as a part of the
Employer’s contribution as of the last day of the Plan Year and allocated as
such, and with any income on the investment as of the last day of the Plan Year
to be allocated in the same manner as the Employer contributions among those
Participants entitled to share in the Employer contributions for the Plan Year,
but not to be treated as a part of the Annual Additions.

 

B.                                     Cash or
Deferred Arrangement.

 

1.                                       A Participant
may elect to cause his Employer to make Salary Reduction Contributions on the
Participant’s behalf in the following manner:

 

(a)                                  A Participant
through salary reduction payroll deposits may contribute for each or any
payroll period an amount equal to the product of the Participant’s designated
rate of contribution (“Contribution Rate”) multiplied by his Compensation for
the applicable payroll period.  A
Participant’s Contribution Rate shall be any whole number percentage from zero
percent (0%) to one hundred percent (100%) as designated by the Participant
under such uniform and non-discriminatory procedures as the Administrator may
direct.  No Salary Reduction
Contributions shall be made, however, to the extent they result in insufficient
net pay to cover withholding taxes on the Participant’s Compensation or other
taxable wages for the payroll period in

 

11

 

question.

 

(b)                                 Elections to
make Salary Reduction Contributions shall be made in writing on such forms as
are provided by the Administrator.  All
election forms must be completed and executed by the Participant and returned
to the Administrator in a timely manner for its approval to be effective.  Salary Reduction Contributions shall be made
to the Trustee through the Participant’s Employer by salary reduction payroll
deposit, and the Employer shall remit all such contributions to the Trustee on
the earliest date on which they can be reasonably segregated from the Employer’s
general assets.  Salary Reduction
Contributions of a Participant shall be credited to his Elective Deferral
Account (or, in the case of Roth Elective Deferrals made on or after January 1,
2010, if so elected, to his Roth Elective Deferral Account) upon receipt by
Trustee.  The Administrator shall allow
Participants to make Salary Reduction Contribution elections at least once each
Plan Year.  All Salary Reduction
Contributions shall be made from cash Compensation only.  Notwithstanding the foregoing, no Participant
was permitted to increase his or her rate of Salary Reduction Contributions for
the payroll period ending August 12, 2007.

 

(c)                                  A Participant
may by timely written notice provided to the Administrator elect to commence,
modify, or terminate his Salary Reduction Contributions (effective as of such
dates as the Administrator may permit on a uniform and nondiscriminatory
basis).  All such notices shall be
provided to the Administrator by such dates or within such periods as the
Administrator may permit on a uniform and nondiscriminatory basis.  A Participant who has voluntarily terminated
his Salary Reduction Contributions may recommence his contributions as of such
date or dates as the Administrator may specify on a uniform and
non-discriminatory basis.

 

(d)                                 If a
Participant terminates his employment, his Salary Reduction Contributions to
the Plan shall cease.  If a Participant
receives a “hardship distribution” from the Plan under Article VI D or an
in-service distribution under Article VI H 4 below, his Salary Reduction
Contributions shall be suspended for six
(6) months from the date of distribution.

 

(e)                                  Notwithstanding
anything to the contrary herein, the Administrator may, on a nondiscriminatory
basis at any time and from time to time, unilaterally and prospectively (1) require
contributing Highly Compensated Employees to limit or reduce the rate of their
Salary Reduction Contributions, or (2) return to contributing Highly
Compensated Employees some or all of their Salary Reduction Contributions to
the extent considered advisable by the Administrator in order to satisfy the
requirements of Article III B 3 and Article III B 4 below.

 

(f)                                    All Salary
Reduction Contributions are intended to be payments to the Plan by the Employer
under a cash or deferred arrangement described in Section 401(k) of
the Code, and all references herein to those contributions as Employee or
Participant contributions are for convenience only and are not intended as a
designation of those contributions as employee contributions within the meaning
of Section 414(h)(1) of the Code.

 

(g)                                 Effective on
and after January 1, 2010, the Plan will accept Salary Reduction
Contributions in the form of Roth Elective Deferrals on behalf of
Participants.  A Roth Elective Deferral
is a Salary Reduction Contribution that: (i) the Participant irrevocably
designates at the time of the applicable cash or deferred election as a Roth
Elective Deferral being made in lieu of all or a portion of the pre-tax
elective deferrals the Participant is otherwise eligible to make under the
Plan; and (ii) the Employer treats as includible in the Participant’s
income at the time the Participant would have received that amount in cash if
the Participant had not made a cash or deferred election.  Unless specifically stated otherwise in this
Plan, Roth Elective Deferrals will be treated as Salary Reduction Contributions
for all purposes under the Plan including, without limitation, the calculation
of Employer Non-Qualified Matching Contributions, limitations on annual
Elective Deferrals under

 

12

 

Code Section 402(g),
the ADP and ACP tests described in Article III B 4 and Article III B
5, limitations on Annual Additions, and restrictions on distributions prior to
Separation from Service.  The following
special provisions shall apply to Roth Elective Deferrals and shall supersede
any contrary provision of the Plan:

 

(1)                                  A Participant’s
Roth Elective Deferrals will be allocated to a separate Roth Elective Deferral
Account maintained for such Roth Elective Deferrals as described in Article IV
C 2 below.

 

(2)                                  In the case of
a corrective distribution of “Excess Elective Deferrals” within the meaning of Article III
B 3 or “Excess Contributions” within the meaning of Article III B 4 to a
Highly Compensated Employee, if the Highly Compensated Employee in question made
both pre-tax Elective Deferrals and Roth Elective Deferrals for the Plan Year
in question, the excess to be distributed will be allocated among and
distributed from such contributions in the following order of priority: first,
to pre-tax Elective Deferrals for the year; and second, to Roth Elective
Deferrals for the year.

 

2.                                       (a)                                  In its sole discretion, the Employer may elect to make discretionary
Non-Qualified Matching Contributions to the Plan for a Plan Year on behalf of
those Participants who make Salary Reduction Contributions during the Plan
Year.  Alternatively, the Employer may
decline to make any Non-Qualified Matching Contributions for a Plan Year or,
effective for payroll periods ending after August 12, 2007, limit the
portion of a Plan Year for which such Non-Qualified Matching Contributions will
be made.

 

(b)                                 If the Employer elects to make a discretionary Non-Qualified Matching Contribution
for all or any portion of a Plan Year, the Non-Qualified Matching Contribution
to be contributed and allocated on behalf of each Participant who made Salary
Reduction Contributions during the Plan Year will equal:

 

(1)                                  75% of the Participant’s Salary Reduction Contributions for the
applicable “Matching Period,” calculated by taking into account only those Salary
Reduction Contributions for the Matching Period not in excess of 2% of the
Participant’s Compensation for the Matching Period (i.e., a Non-Qualified
Matching Contribution of up to 1.5% of the Participant’s Compensation for the
Matching Period); plus

 

(2)                                  25% of the Participant’s Salary Reduction Contributions for the “Matching
Period, calculated taking into account only those Salary Reduction
Contributions for the Matching Period that are more than 2% but not more than
5% of the Participant’s Compensation for the Matching Period (i.e., an
additional Non-Qualified Matching Contribution of up to 0.75% of the
Participant’s Compensation for the Matching Period).

 

(c)                                  For purposes of the Article III B 2, the “Matching Period” means the
entire Plan Year in question, excluding: (i) the portion of the 2007 Plan
Year consisting of payroll periods ending after August 12, 2007; (ii) the
2008 Plan Year; and (ii) any other Employer-designated calendar quarter,
month or other portion of a Plan Year after 2009 with respect to which the
Principal Employer elects in its sole discretion, and upon not less than 15
days advance written notice sent to a majority of the active Participants, to
discontinue or otherwise not provide a Non-Qualified Matching Contribution.

 

(d)                                 The amount of any discretionary Non-Qualified Matching Contribution
allocable to a Participant for a Plan Year shall be trued-up and finally
computed based on the Salary Reduction Contributions and Compensation of the
Participant for the applicable Matching Period for that Plan Year within 60
days after the end of the Plan Year.  For
avoidance of doubt, Salary Reduction Contributions made and Compensation earned
outside the Matching Period applicable to the Plan Year in question shall be
disregarded in determining and allocating Non-Qualified Matching Contributions
for that Plan Year.  The applicable
percentage rate of Non-Qualified Matching Contributions for any Matching Period
shall apply uniformly to all Participants

 

13

 

who elect to make
Salary Reduction Contributions (including Roth Elective Deferrals) during the
Matching Period in question.

 

3.                                       (a)                                  No Elective Deferrals hereunder or other “elective deferrals” within
the meaning of the Regulations under Code Section 402(g) shall be
made on behalf of any Participant for any calendar year in excess of the dollar
limitation in effect under Code Section 402(g) at the beginning of
the year; provided, however, that this limitation will not apply to any
Elective Deferrals treated as catch-up contributions under Code Section 414(v).

 

(b)                                 If the Elective
Deferrals made on behalf of a Participant for a calendar year under this Plan
plus any “elective deferrals” within the meaning of Code Section 402(g) made
by the Participant under other plans for the taxable year exceed the foregoing
Code Section 402(g) annual limit, the Participant on whose behalf the
contributions were made may notify the Administrator not later than March 1
following the year in question of the amount of Excess Elective Deferrals that
are allocable to this Plan, and may request distribution of those Excess
Elective Deferrals from this Plan.  Upon
receipt of such request, the Administrator shall distribute the allocable
Excess Elective Deferrals plus any Allocable Income as described below to the
requesting Participant not later than April 15 following the calendar year
of contribution.  Such a distribution of
Excess Elective Deferrals (plus allocable income or less allocable loss
thereon) may be made notwithstanding any restrictions on distributions
elsewhere in the Plan.

 

(c)                                  For purposes of
this Article III B 3, the following definitions shall apply:

 

(1)                                  The term “Allocable
Income” means with respect to the portion of any Excess Elective Deferrals under
this Plan consisting of Elective Deferrals  the income or loss allocable
to the Participant’s Elective Deferral Account (or, if applicable, Roth
Elective Deferral Account) for the Plan Year of contribution, multiplied by a
fraction, the numerator of which is the Participant’s Excess Elective Deferrals
to that Account for the year and the denominator of which is the Participant’s
balance in the Account in question as of the last day of the Plan Year in which
the Excess Elective Deferrals to that Account are made (excluding any income or
loss occurring during that Plan Year).  
With respect to corrective distributions under this Article III B 3
of Excess Elective Deferrals Contributions that are attributable to Plan Years
commencing on or after January 1, 2007 and prior to 2008, income
attributable to such amounts shall:  (i) also
include allocable gain and loss for the “gap period” between the close of the
Plan Year in question and the date that is seven days before the date of
distribution; and (ii) be computed in accordance with such methods as the
Plan Administrator determines and as are permitted under Section 1.401(k)-2(b)(2)(iv) of
the Regulations, as applicable.

 

(2)                                  The term “Elective
Deferrals” means any Salary Reduction Contributions (including Roth Elective
Deferrals) or other Employer contributions made to the Plan at the election of
the Participant, in lieu of cash Compensation, including contributions made
pursuant to a salary reduction agreement or other deferral mechanism.  With respect to any taxable year, a
Participant’s Elective Deferral is the sum of all employer contributions made
on behalf of such Participant pursuant to an election to defer under any
qualified CODA as described in Section 401(k) of the Code, any
simplified employee pension cash or deferred arrangement as described in Section 402(h)(1)(B) of
the Code, any eligible deferred compensation plan under Section 457 of the
Code, any plan as described under Section 501(c)(18) of the Code, and any
Employer contributions made on the behalf of a Participant for the purchase of
an annuity contract under Section 403(b) of the Code pursuant to a
salary reduction agreement.

 

(3)                                  The term “Excess
Elective Deferrals” means Elective Deferrals that are includable in a
Participant’s gross income under Section 402(g) of the Code as a
result of exceeding the dollar limitation under that Code Section in
effect for the year of contribution.

 

14

 

4.                                       The following
limitation (“ADP Test”) shall apply to the Plan each Plan Year.  The Plan shall apply the ADP Test using the “prior
year” testing method and, effective on and after January 1, 2006, in
accordance with the requirements and limitations of Regulation Sections
1.401(k)-1(b)(1)(ii)(A) and 1.401(k)-2, the provisions of which are hereby
incorporated by reference.

 

(a)                                  The ADP for a
Plan Year the Participants who are Highly Compensated Employees for the Plan
Year shall not exceed the greater of (1) or (2) as follows:

 

(1)                                  One hundred
twenty-five percent (125%) of the ADP for the prior Plan Year of all
Participants who were Non-Highly Compensated Employees for the prior Plan Year,
or

 

(2)                                  Two hundred
percent (200%) of the ADP for the prior Plan Year of all Participants who were
Non-Highly Compensated Employees for the prior Plan Year; provided, however,
that the ADP for the Plan Year for the Participants who are Highly Compensated
Employees may not exceed the ADP for the prior Plan Year of the Participants
who were Non-Highly Compensated Employees for the Plan Year by more than two (2) percentage
points.

 

(b)                                 For purposes of
this Article III B 4, the following special rules shall apply:

 

(1)                                  In the event
that this Plan satisfies the requirements of Sections 401(k), 401(a)(4), or 410(b) of
the Code only if aggregated with one or more other Plans, or if one or more
other Plans satisfy those requirements of the Code only if aggregated with this
Plan, then this Article III B 4 shall be applied by determining the ADP of
Employees as if all such Plans were a single plan.  Any adjustments to Non-Highly Compensated
Employee ADP for the prior Plan Year will be made in accordance with IRS
guidance.  Plans may only be aggregated
to satisfy Code Section 401(k) if they have the same Plan Year and
use the same ADP testing method.

 

(2)                                  For purposes of
the ADP Test, Elective Deferrals and Roth Elective Deferrals must be made
before the last day of the twelve (12) month period immediately following the
Plan Year for which the contributions are to be taken into account.

 

(3)                                  The Employer
shall maintain records sufficient to demonstrate satisfaction of the ADP Test.

 

(4)                                  The
determination and treatment of the ADP of any Participant shall satisfy such
other requirements as may be prescribed in the Regulations.

 

(c)                                  For purposes of
this Article III B 4, the following definitions shall apply:

 

(1)                                  The term “ADP”
means with respect to any Participant group, the average of the ratios computed
separately for each Participant of the group of: (i) their Salary
Reduction Contributions (including Excess Elective Deferrals of Highly
Compensated Employees only) for the Plan Year, but excluding Excess Elective
Deferrals of Non-Highly Compensated Employees and any Salary Reduction
Contributions taken into account under the ADP Test under Article III B 5
below (provided the ADP Test is satisfied both with and without exclusion of
those Salary Reduction Contributions); to (ii) their Compensation for the
Plan Year.  The ADP of an Employee who
would be a Participant but for the fact that he does not make or receive any
allocation of Salary Reduction Contributions, shall be zero (0).  The ADP for any Participant who is a Highly
Compensated Employee for the Plan Year and who is eligible to have Salary
Reduction Contributions or equivalent contributions under another plan
allocated to his accounts under two or more arrangements described in Section 401(k) of
the Code that are maintained by the Employer, shall be determined as if the
contributions were

 

15

 

made under a single arrangement.  If a Highly Compensated Employee participates
in two (2) or more cash or deferred arrangements that have different plan
years, all cash or deferred arrangements ending with or within the same
calendar year shall be treated as a single arrangement.  Any
provision herein to the contrary notwithstanding, ADP shall be computed without
regard to Salary Reduction Contributions that are catch-up contributions within
the meaning and limitations of Section 414(v) of the Code.

 

(2)                                  The terms “Elective
Deferrals” and “Excess Elective Deferrals” shall have the meanings set forth in
Article III B 3(c) above.

 

(3)                                  The term “Excess
Contributions” means with respect to any Plan Year, the excess of:

 

(i)                                     The aggregate
amount of contributions actually taken into account in computing the average
ADP of the Highly Compensated Employees for such Plan Year, over

 

(ii)                                  The maximum
amount of such contributions permitted under the ADP Test.

 

(d)                                 (1)                                  If the average
ADP for a Plan Year for the Participants who are Highly Compensated Employees
for that Plan Year is more than the amount permitted under the above
restrictions, the Excess Contributions, computed as provided in Section 1.401(k)-2(b)(2)(ii) of
the Regulations, plus any income and minus any loss allocable to the Excess
Contributions shall be distributed no later than the last day of the following
Plan Year to those Highly Compensated Employees to whose Accounts the Excess
Contributions were allocated for the applicable Plan Year.  The Employer, however, will incur an excise
tax of ten percent (10%) of the amount of Excess Contributions not distributed
within two and one-half (2-1/2) months after
the close of the Plan Year.  Distribution
of Excess Contributions (and income allocable thereto) shall be made among the
Highly Compensated Employees with the largest amounts of contributions taken
into account in the ADP test for the Plan Year in which the Excess
Contributions arose, beginning with the Highly Compensated Employee with the
largest amount of such contributions and continuing in descending order until
all Excess Contributions have been allocated and distributed.  For purposes of this provision, the “largest
amount” is determined after any prior distribution of Excess Elective
Deferrals.  Effective for Plan Years
commencing on or after January 1, 2006, all corrective distributions shall
be computed and made as provided in Section 1.401(k)-2(b)(2) of the
Regulations.

 

(2)                                  Excess
Contributions shall be distributed on a pro rata basis from the appropriate
Highly Compensated Employees’ Accounts.

 

(3)                                  The amount of
income or loss allocable to a Highly Compensated Employee’s Excess
Contributions shall equal the sum of the income or loss allocable to the Highly
Compensated Employee’s Elective Deferral Account (or, if applicable, Roth
Elective Deferral Account) for the Plan Year of the Excess Contribution,
multiplied by a fraction, the numerator of which is the Highly Compensated
Employee’s share of Excess Contributions for the Plan Year and the denominator
of which is the Accrued Benefit attributable to the Account in question
determined as of the last day of the Plan Year without regard to income or loss
allocable for the Plan Year.  With
respect to corrective distributions under this Article III B 4 (d) of
Excess Contributions that are attributable to Plan Years commencing on or after
January 1, 2006 and prior to January 1, 2008, income attributable to
such amounts shall:  (i) also
include allocable gain and loss for the “gap period” between the close of the
Plan Year in question and the date that is seven days before the date of
distribution; and (ii) be computed in accordance with such methods as the
Plan Administrator determines and as are permitted under Section 1.401(k)-2(b)(2)(iv) of
the Regulations, as applicable.

 

16

 

5.                                       The following
limitation (“ACP Test”) shall apply to the Plan each Plan Year.  The Plan shall apply the ACP Test using the “prior
year” testing method and, effective on and after January 1, 2006, in
accordance with the requirements and limitations of Regulation Sections
1.401(m)-1(b)(i) and 1.401(m)-2, the provisions of which are hereby
incorporated by reference.

 

(a)                                  The ACP for a
Plan Year of the Participants who are Highly Compensated Employees for the Plan
Year shall not exceed the greater of (1) or (2) as follows:

 

(1)                                  One hundred
twenty-five percent (125%) of the ACP for the prior Plan Year for the
Participants who were Non-Highly Compensated Employees for such prior Plan
Year, or

 

(2)                                  Two hundred
percent (200%) of the ACP for the prior Plan Year of the Participants who were
Non-Highly Compensated Employees for such prior Plan Year; provided, however,
that the ACP for the current Plan Year of the Participants who are current Plan
Year Highly Compensated Employees may not exceed the ACP for the prior Plan
Year of the Participants who were Non-Highly Compensated Employees for the
prior Plan Year by more than two (2) percentage points.

 

(b)                                 For purposes of
this Article III B 5, the following definitions shall apply:

 

(1)                                  The term “ACP”
means the average of the “Contribution Percentages” of the “Eligible
Participants” in a group.

 

(2)                                  The term “Contribution
Percentage” means the ratio (expressed as a percentage) of each Eligible
Participant’s Contribution Percentage Amounts to the Participant’s Compensation
for the Plan Year.  The Contribution
Percentage for any Participant who is a Highly Compensated Employee and who is
eligible to have Contribution Percentage Amounts allocated to his Accounts
under two or more plans described in Section 401(a) of the Code, or
arrangements described in Section 401(k) of the Code that are
maintained by the Employer, shall be determined as if the total of the
Contribution Percentage Amounts was made under each plan.

 

(3)                                  The term “Contribution
Percentage Amounts” means the sum of the Non-Qualified Matching Contributions
plus matching contributions or voluntary after-tax contributions under another
plan for the Plan Year.  Contribution
Percentage Amounts shall not include Forfeitures of Matching Contributions that
are used to correct Excess Aggregate Contributions or because the Contributions
to which they related are Excess Elective Deferrals, Excess Contributions or
Excess Aggregate Contributions.  The
Employer may elect to include in Contribution Percentage Amounts Salary
Reduction Contributions, so long as the ADP Test is met before Salary Reduction
Contributions are used in the ACP Test and continues to be met following the
exclusion of those Salary Reduction Contributions that are used to meet the ACP
Test.

 

(4)                                  The term “Eligible
Participant” means any Employee who is eligible to make a Salary Reduction
Contribution (if the Employer takes those contributions into account in the
calculation of the Contribution Percentage Amounts), or to receive a
Non-Qualified Matching Contribution (including Forfeitures from Non-Qualified
Matching Contribution Accounts).

 

(5)                                  The term “Excess
Aggregate Contributions” means with respect to any Plan Year, the excess
of:  (i) the aggregate Contribution
Percentage Amounts taken into account in computing the numerator of the
Contribution Percentage actually made on behalf of Participants who are Highly
Compensated Employees for such Plan Year, over (ii) the maximum
Contribution Percentage Amounts permitted by the ACP Test.  Excess Aggregate Contributions shall be
determined after first determining Excess Contributions and the Excess Elective
Deferrals.

 

17

 

(c)                                  For purposes of
this Article III B 5, the following special rules apply:

 

(1)                                  If a Highly
Compensated Employee participates in two or more cash or deferred arrangements
that have different plan years, all cash or deferred arrangements ending with
or within the same calendar year shall be treated as a single arrangement.

 

(2)                                  In the event
that this Plan satisfies the requirements of Sections 401(m), 401(a)(4) or 410(b)
of the Code only if aggregated with one or more other plans, or if one or more
other plans satisfy these requirements of the Code only if aggregated with this
Plan, this Article III B 5 shall be applied by determining the Contribution
Percentage Amounts of Employees as if all those plans were a single plan.  Any adjustments to Non-Highly Compensated
Employee ACP for the prior Plan Year will be made in accordance with IRS
guidance.  Plans may be aggregated in
order to satisfy Section 401(m) of the Code only if they have the same Plan
Year, and use the same ACP Testing method.

 

(3)                                  Voluntary contributions
are considered to have been made in the Plan Year in which they are contributed
to the applicable trust.  Matching
Contributions shall be considered to be made for a Plan Year if made no later
than the end of the twelve (12) month period beginning on the day after the
close of the Plan Year.

 

(4)                                  The Employer
shall maintain records sufficient to demonstrate satisfaction of the ACP Test.

 

(5)                                  The
determination and treatment of the Contribution Percentage of any Participant
shall satisfy such other requirements as may be prescribed in the Regulations.

 

(d)                                 (1)                                  Notwithstanding
any other provisions of the Plan, each Highly Compensated Employee’s share of
the “Excess Aggregate Contributions,” as computed under Section 1.401(m)-2(b),
plus any income and minus any losses allocable to the Excess Aggregate
Contributions shall be forfeited (to the extent non-vested), or distributed (to
the extent vested) no later than the last day of the following Plan Year to the
Highly Compensated Employees who were allocated such Excess Aggregated
Contributions for the preceding Plan Year. 
Excess Aggregate Contributions are allocated to the Highly Compensated
Employees with the largest Contribution Percentage Amounts taken into account
in the ACP Test for the Plan Year in which the excess arose, beginning with the
Participant with the largest amount of such Contribution Percentage Amounts and
continuing in descending order until all Excess Aggregate Contributions have
been allocated.  For this purpose, the “largest
amount” is determined after any prior distribution of Excess Aggregate
Contributions.  The Employer, however,
will incur an excise tax of ten percent (10%) of the Excess Aggregate
Contributions not distributed within two and one-half (2-1/2) months after the close of the Plan
Year.  The Administrator shall first
determine whether the Highly Compensated Employees have made Excess Elective
Deferrals or Excess Contributions before it determines Excess Aggregate
Contributions for the Plan Year. 
Effective for Plan Years commencing on or after January 1, 2006, all
corrective forfeitures and distributions of Excess Aggregate Contributions
shall be made as provided in Section 1.401(m)-2(b) of the Regulations.

 

(2)                                  Each Highly
Compensated Employee’s share of Excess Aggregate Contributions shall be
forfeited or distributed, as applicable, from the Participant’s Non-Qualified
Matching Contribution Account.

 

(3)                                  The income or
loss allocable to Excess Aggregate Contributions allocated to each Highly
Compensated Employee is the income or loss allocable to the Participant’s
Non-Qualified Matching Contribution Account (and, if applicable, Elective
Deferral Account and Roth Elective Deferral Account) for the Plan Year,
multiplied by a fraction, the numerator of which is the Participant’s Excess
Aggregate 

 

18

 

Contributions for the year and the
denominator of which is the Participant’s Account balance(s) attributable to
Contribution Percentage Amounts (excluding any income or loss occurring during
such Plan Year).  With respect to
corrective distributions under this Article III B 5 of Excess Aggregate
Contributions that are attributable to Plan Years commencing on or after January
1, 2006 and prior to January 1, 2008, income attributable to such amounts
shall: (i) also include allocable gain and loss for the “gap period” between
the close of the Plan Year in question and the date that is seven days before
the date of distribution; and (ii) be computed in accordance with such methods
as the Plan Administrator determines and as are permitted under the applicable
Regulations.

 

6.                                       Salary
Reduction Contributions (and income allocable to each) shall not be distributed
to a Participant or his Beneficiary or Beneficiaries, earlier than Separation
from Service, death, or Permanent Disability; except that these amounts may be
distributed upon:

 

(a)                                  Termination of
the Plan without the establishment of another defined contribution plan, other
than an employee stock ownership plan (as defined in Code Section 4975(e)(7), a
simplified employee pension (as defined in Code Section 408(k)) or a simple IRA
plan (as defined in Code Section 408(p)).

 

(b)                                 The Participant’s
attainment of age 59-1/2.

 

(c)                                  The Hardship of
the Participant as provided in Article VI D below.

 

(d)                                 Certain leaves
of absence related to uniformed service in the military as described in Article
VI H 3 and 4 below.

 

C.                                     Transfer and
Rollover Contributions.  An
active Participant who has satisfied the requirements of Article II to enter the
Plan (or an Employee within the eligible class who the Administrator reasonably
determines is likely to satisfy those requirements) may, with the consent of
the Plan Administrator, rollover to the Plan, directly or indirectly, an
eligible rollover distribution from (i) a qualified plan described in Sections
401(a) or 403(a) of the Code (excluding after-tax contributions), (ii) an
annuity contract described in Section 403(b) of the Code (excluding after-tax
contributions); (iii) an eligible plan maintained by a state, political
subdivision of a state, or agency or instrumentality of a state or political
subdivision of a state; or (iv) an individual retirement account or annuity
described in Sections 408(a) or 408(b) of the Code that is eligible to be rolled
over and would otherwise be includable in the Participant’s gross income.  Likewise the Plan may accept a direct
trustee-to-trustee transfer of assets from another retirement plan qualified
under Code Section 401(a) not constituting a taxable distribution or rollover
on behalf of a Participant.  No rollover
or trustee-to-trustee, non-rollover transfer (in any case a “Transfer
Contribution”) shall be accepted unless the Plan Administrator determines
that such contribution is permissible and will not adversely affect the
tax-exempt status of the Plan or require amendment of the Plan to require
optional forms of benefit not otherwise available.  All Transfer Contributions shall be credited
to the Participant’s Transfer Account when received by the Plan Trustees;
provided, however, that a direct rollover from another Roth elective
deferral account under an applicable retirement plan described in Code Section 402A(e)(1)
shall be allocated to and held in a separate Roth rollover subaccount of the
Participant’s Transfer Account.  A Participant’s Vested Benefit shall include
one hundred percent (100%) of the Accrued Benefit of his or her Transfer
Account.  Any provision in this Plan to
the contrary, a Participant’s Transfer Account balance shall be disregarded in
determining whether the Participant’s Vested Benefit exceeds the Applicable
Amount for purposes of the involuntary cash-out rules of Article VI C 4 unless
the Transfer Account contains amounts received through a direct
trustee-to-trustee, non-rollover transfer.

 

19

 

ARTICLE
IV

ACCRUED
BENEFITS

 

A.                                   Participant
Accounts.  The
Administrator shall establish and maintain as a continuing record of the
Accrued Benefit of each Participant, to the extent applicable, a Regular
Account, a Transfer Account, an Elective Deferral Account and a Non-Qualified
Matching Contribution Account.  On and
after January 1, 2010, the Administrator shall maintain a Roth Elective
Deferral Account for any Participant who makes Roth Elective Deferrals to the
Plan.

 

B.                                     Valuation of
Non-Self Directed Fund and Allocation of Non-Self Directed Fund Earnings.  The Trustee shall determine the fair market
value of the assets of the Non-Self Directed Fund as of each Valuation
Date.  In the valuation, no amount shall
be included or accrued for any Employer contributions (which shall instead be
accounted for as provided in Article IV C below) with respect to that Plan Year
received by Trustee or determined by Employer, but not yet received; and the
amount of any unpaid cost, fees or expenses shall be accrued and deducted as a
liability in such amount as the Administrator shall direct.  If any assets are invested in the common
trust fund, the valuation of those assets shall be based on the Trustee’s
valuation of such common trust fund concurrently with or most recently
preceding the Valuation Date.

 

Subject to Article XI below,
the Administrator shall allocate the adjusted value of the Non-Self Directed
Fund as so determined among the Accounts invested in the Fund in the same
proportion that the Accrued Benefit of each on the next preceding Valuation
Date bore to the total Accrued Benefit of all Participants on the preceding
Valuation Date who remain Participants on the current Valuation Date.  Earnings and losses within the Individual
Investment Funds shall be allocated as provided in Article XI below.

 

C.                                     Allocations of
Contributions.

 

1.                                       The
Administrator shall allocate the Profit-Sharing Contributions for the Plan Year
(and all Forfeitures from Regular Accounts for the Plan Year) among the Regular
Accounts of the eligible Participants who are still employed by the Employer on
the last day of the Plan Year (or who Separated from Service during the Plan
Year on account of death, Permanent Disability or retirement at or after age 59-1/2) in accordance with the following formula.  Each such eligible Participant’s Regular
Account shall be credited with that portion of the Profit-Sharing Contributions
and Forfeitures from Regular Accounts for the Plan Year which bears the same
ratio to total Profit-Sharing Contributions and Regular Account Forfeitures for
the Plan Year as the Participant’s Compensation for the Plan Year bears to the
total Compensation of all eligible Participants for the Plan Year.  No requirement that a Participant remain
employed on the last day of the Plan Year shall be applied for a Plan Year if
application of the requirement would cause the Plan to violate Section 410(b) of
the Code.

 

2.                                       The
Administrator shall allocate each Participant’s (a) Elective
Deferrals to the Participant’s Elective Deferral Account as of the Valuation
Date coincident with or immediately following the date of contribution, and (b) effective on
and after January 1, 2010, Roth Elective Deferrals to the Participant’s Roth Elective
Deferral Account as of the Valuation Date coincident with or immediately
following the date of contribution.

 

3.                                       The
Administrator shall allocate Non-Qualified Matching Contributions made on
behalf of a Participant to the Participant’s Non-Qualified Matching
Contribution Account as of the earlier of (a) the last day of the Plan Year for
which made, or (b) the Valuation Date coincident with or immediately following
the date of contribution.

 

D.                                    Forfeitures.  All
Forfeitures from Regular Accounts shall be allocated first to reinstate
previously forfeited account balances under Article V D 2 below, with any
remainder allocated as additional Profit Sharing Contributions under Article IV
C above for the year of forfeiture. 
Forfeitures from Non-Qualified Matching Contribution Accounts shall be
reallocated first to reinstate previously forfeited account balances under Article
V 

 

20

 

D 2 below, with
any remainder to be applied and allocated as part of the Employer’s
Non-Qualified Matching Contribution for the Plan Year of forfeiture (or for
Plan Years commencing on or after January 1, 2004, for the Plan Year following
the year of forfeiture), and in succeeding Plan Years, if necessary, until
exhausted

 

E.                                      Limitations on
Annual Additions.  This Article
IV E shall take precedence over any contrary provisions of the Plan.

 

1.                                       For purposes of
this Article IV E, the following definitions shall apply:

 

(a)                                  Annual Addition.  The sum of the following amounts allocated on
behalf of a Participant for a Limitation Year:

 

(1)                                  all Employer
contributions;

 

(2)                                  all Salary
Reduction Contributions (including Elective Deferrals, Roth Elective Deferrals,
Excess Elective Deferrals and Excess Contributions) other than amounts that constitute catch-up contributions under Section
414(v) of the Code;

 

(3)                                  all
Forfeitures;

 

(4)                                  all amounts
allocated, after March 31, 1984, to an individual medical account, as defined
in Section 415(l)(l) of the Code, which is part of a defined benefit pension
plan or annuity plan maintained by the Employer; and

 

(5)                                  all amounts
derived from contributions paid or accrued, which are attributable to
post-retirement medical benefits allocated to the separate account of a Key
Employee, as defined in Section 419A(d)(3) of the Code, under a welfare benefit
fund, as defined in Section 419(e) of the Code, maintained by the Employer.

 

(b)                                 Compensation.  Section 415 Total Earnings which are actually
paid or made available to a Participant within the Limitation Year.  Compensation shall include any elective
deferral (as defined in Code Section 402(g)(3)) and any amount which is
contributed or deferred by the Employer at the election of the Employee and is
excludable from the Employee’s gross income under Code Section 125 or 457.

 

(c)                                  Defined
Contribution Dollar Limitation.  $40,000,
as adjusted under Section 415(d) of the Code.

 

(d)                                 Employer.  The Employer that adopts this Plan.  In the case of a group of employers which
constitutes (i) a controlled group of corporations (as defined in Section 414(b)
of the Code, as modified by Section 415(h)), (ii) a trade or business (whether
or not incorporated) under common control (as defined in Section 414(c) and
modified by Section 415 (h)), (iii) an affiliated service group (as defined in Section
414(m)), or (iv) any other entity required to be aggregated with the Employer
pursuant to Section 414(o) of the Code, all such employers shall be considered
a single employer for purposes of applying the limitations of this Article.

 

(e)                                  Excess Amount.  The excess of the Participant’s Annual
Additions for the Limitation Year over the Maximum Permissible Amount.

 

21

 

(f)                                    Limitation Year.  The calendar year.  All qualified plans maintained by the
Employer must use the same Limitation Year. 
If the Limitation Year is amended to a different twelve (12) month
period, the new Limitation Year must begin on a date within the Limitation Year
in which the amendment is made.

 

(g)                                 Maximum
Permissible Amount.  For any
Limitation Year, the maximum Annual Addition that can be allocated or
contributed to a Participant’s Accounts shall not exceed the lesser of: (i) the
Defined Contribution Dollar Limitation for the Limitation Year; or (ii) one hundred percent (100%) of the
Participant’s Compensation for the Limitation Year.  If a short Limitation Year is created because
of an amendment changing the Limitation Year to a different twelve (12)
consecutive month period, the Maximum Permissible Amount shall not exceed the
Defined Contribution Dollar Limitation multiplied by the following fraction:

 

Number of months in the short Limitation Year

12

 

2.                                       Limitation For
Participants Not Participating In Any Other Qualified Plan of Employer.

 

(a)                                  If the
Participant has never participated in another qualified plan or welfare benefit
fund (as defined in Section 419(e) of the Code) maintained by the Employer or
an individual medical account (as defined in Section 415(l)(2) of the Code)
maintained by the Employer which provides an Annual Addition, the amount of
Annual Additions which may be credited to the Participant’s accounts for any
Limitation Year shall not exceed the lesser of the Maximum Permissible Amount
or any other limitation contained in this Plan. 
If any Employer contribution that would otherwise be contributed or
allocated to the Participant’s Accounts would cause the Annual Additions for
the Limitation Year to exceed the Maximum Permissible Amount, the amount
contributed or allocated will be reduced so that the Annual Additions for the
Limitation Year will equal the Maximum Permissible Amount.

 

(b)                                 Prior to the
determination of the Participant’s actual Compensation for a Limitation Year,
the Maximum Permissible Amount may be determined on the basis of the
Participant’s estimated annual Compensation for such Limitation Year.  The estimated annual Compensation shall be
determined on a reasonable basis and shall be uniformly determined for all
Participants similarly situated.

 

(c)                                  As soon as is
administratively feasible after the end of the Limitation Year, the Maximum
Permissible Amount for that Limitation Year shall be determined on the basis of
the Participant’s actual Compensation for that Limitation Year.

 

(d)                                 If, pursuant to
Article IV E 2(c) above, or as a result of the allocation of Forfeitures, there
is determined to be an Excess Amount with respect to a Participant for a
Limitation Year, the Excess Amount shall be disposed of in the following order:

 

(1)                                  Any Salary
Reduction Contributions (plus income or gain allocable thereto) shall be
returned to the Participant to the extent that the return would reduce the
Excess Amount, with such reduction applied first to Elective Deferrals and
second to Roth Elective Deferrals.

 

(2)                                  If the
Participant is an active participant in the Plan at the end of the Limitation
Year, any remaining Excess Amount shall be held in suspense and used to reduce
Employer contributions for the Participant in the next Limitation Year, and in
each succeeding Limitation Year if necessary so long as the Participant remains
an active participant; and

 

22

 

(3)                                  If the
Participant is not covered by the Plan at the end of the Limitation Year or any
succeeding Limitation Year in which an Excess Amount remains, the remaining
Excess Amount shall be held unallocated in an Excess Contribution Account.  The Excess Contribution Account shall be
applied to reduce future Employer contributions for all remaining Participants
in the next Limitation Year, and each succeeding Limitation Year if
necessary.  If an Excess Contribution
Account is in existence at any time during a Limitation Year pursuant to this
provision, it shall not participate in the allocation of the Trust’s investment
gains and losses, and all amounts in the Suspense Account must be allocable or
reallocated (if possible) to Participant accounts before any contributions for
that Limitation Year.  Excess Amounts may
not be distributed to Participants or former Participants.

 

3.                                       Limitation for
Participants Participating In Any Other Qualified Defined Contribution Plans of
Employer.

 

(a)                                  This section
applies if, in addition to this Plan, the Participant is covered under another
defined contribution plan, welfare benefit fund (as defined in Section 419(e) of
the Code), or individual medical account (as defined in Section 415(1)(2) of
the Code), which provides an Annual Addition, maintained by the Employer during
any Limitation Year.  The Annual
Additions which may be credited to a Member’s Accounts under this Plan for any
such Limitation Year shall not exceed the Maximum Permissible Amount reduced by
the Annual Additions credited to a Participant’s Accounts under the other plans
and welfare benefit funds for the same Limitation Year.  If the Annual Additions with respect to the
Participant under such other defined contribution plans and welfare benefit
funds maintained by the Employer are less than the Maximum Permissible Amount,
and the Employer contribution that would otherwise be contributed or allocated
to the Participant’s Accounts under this Plan would cause the Annual Additions
for the Limitation Year to exceed this limitation, the amount contributed or
allocated hereunder shall be reduced so that the Annual Additions under all
such plans and funds for the Limitation Year will equal the Maximum Permissible
Amount.  If the Annual Additions with
respect to the Participant under the other defined contribution plans and
welfare benefit funds in the aggregate are equal to or greater than the Maximum
Permissible Amount, no amount shall be contributed or allocated to the
Participant’s Account under this Plan for the Limitation Year.

 

(b)                                 Prior to the
determination of the Participant’s actual Compensation for the Limitation Year,
the amounts referred to in Article IV E 3(a) above may be determined on the
basis of the Participant’s estimated annual Compensation for such Limitation
Year.  Such estimated annual Compensation
shall be determined on a reasonable basis and shall be uniformly determined for
all Participants similarly situated.

 

(c)                                  As soon as is
administratively feasible after the end of the Limitation Year, the amounts
referred to in Article IV E 3(a) above shall be determined on the basis of the
Participant’s actual Compensation for such Limitation Year.

 

(d)                                 If a
Participant’s Annual Additions under this Plan and all such other plans result
in an Excess Amount, the Excess Amount shall be deemed to consist of the Annual
Additions last allocated, except that Annual Additions attributable to a
welfare benefit fund or individual medical account shall be deemed to have been
allocated first regardless of the actual allocation date.

 

(e)                                  If an Excess
Amount was allocated to a Participant on an allocation date of this Plan which
coincides with an allocation date of another plan, the Excess Amount attributed
to this Plan shall be the product of: (1) the total Excess Amount allocated as
of such date (including any amount which would have been allocated but for the
limitations of Section 415 of the Code), times (2) the ratio of the Annual
Additions allocated to the Participant as of such date under this Plan, to the
total Annual Additions allocated as of such date under all qualified master or
prototype defined contribution plans (determined without regard to the limitations
of Section 415 of the Code).

 

23

 

(f)                                    Any Excess
Amounts attributed to this Plan under this paragraph shall be disposed of as
provided in Article IV E 2(d) above.

 

F.                                      Statements.  As soon as practical after each quarter, the
Administrator shall prepare and furnish to each Participant a statement of the
amount of his Accrued Benefit on the Valuation Date showing the amounts
allocated under Articles IV B, IV C and IV D above and the amount of the
Employer contributions.  In the event of
any limitation on the amount of the allocation of Employer contributions under
the provisions of this Article, the statement shall set forth a computation
thereof.

 

ARTICLE
V

VESTED
BENEFITS

 

A.                                   Retirement.

 

A Participant may retire on
his Normal Retirement Date.  If a
Participant’s employment is continued beyond his Normal Retirement Date, he
shall continue to be a Participant of the Plan until the date of his
termination of active participation.  As
of any Valuation Date coincident with or following a Participant’s Normal
Retirement Date, a Participant who Separates from Service on or after his
Normal Retirement Date shall be considered to have retired and shall have a
non-forfeitable right to his entire Accrued Benefit as adjusted from time to
time under Articles IV and XI.

 

B.                                     Disability.

 

1.                                       If the
Administrator determines that a Participant has Separated from Service after
incurring a Permanent Disability, the Participant shall have a non-forfeitable
right to his entire Accrued Benefit as adjusted from time to time under
Articles IV and XI.

 

2.                                       At any time
after the commencement of disability of a Participant to meet the requirements
of his normal employment, either the Participant or Employer may make
application to the Administrator for a determination as to whether the
disability is permanent.  Permanent
Disability shall mean the physical or mental inability of a Participant to
continue to meet the requirements of his normal employment or other suitable
employment with Employer, which condition, in the opinion of a physician who
shall be promptly selected by the Administrator (which opinion shall be
conclusive for the purposes of the Plan), will be continuous for a period of at
least twelve (12) months following the onset of permanent disability.

 

C.                                     Death.

 

Upon the death of a
Participant prior to his Separation from Service, the Participant shall have a
non-forfeitable right to his Accrued Benefit as adjusted from time to time
under Articles IV and XI.

 

D.                                    Other
Separations From Service.

 

1.                                       Except for
those cases in which death or permanent disability occurs before Separation of
Service or in which the Participant retires under Article V A above, in the
event of a Separation from Service of a Participant, the Participant shall have
a non-forfeitable right to the entire Accrued Benefit of his Elective Deferral
Account, Roth Elective Deferral Account and Transfer Account, as adjusted from
time to time under Articles IV and XI, and that percentage of the Accrued
Benefit of his Regular Account and Non-Qualified Matching 

 

24

 

Contribution Account, if any, as adjusted
from time to time under Articles IV and XI, determined on the basis of his or
her Years of Service in accordance with the following vesting schedule:

 

	
  Years of Service

  	
   

  	
  Vested Percentage

  	
   

  	
  Non-Vested Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than 1

  	
   

  	
  0

  	
  %

  	
  100

  	
  %

  
	
  1

  	
   

  	
  20

  	
  %

  	
  80

  	
  %

  
	
  2

  	
   

  	
  40

  	
  %

  	
  60

  	
  %

  
	
  3

  	
   

  	
  60

  	
  %

  	
  40

  	
  %

  
	
  4

  	
   

  	
  80

  	
  %

  	
  20

  	
  %

  
	
  5 or more

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  

 

2.                                       The portion of
the Accrued Benefit of a Participant’s Regular Account and Non-Qualified
Matching Contribution Account which is not included in the Vested Benefit of a
Participant on a Separation from Service under Article V D 1 above shall be
forfeited.  Forfeiture shall occur upon
the earlier of: (a) the last day of the Plan Year in which the Participant
receives (or is deemed to have received) a distribution of his Vested Benefit;
or (b) the date the Participant has incurred five (5) consecutive one (1) year
Breaks in Service.  For purposes of this Article
V D 2, a Participant whose Vested Benefit is zero (0) shall be deemed to have
received a distribution of his Account balances as of the end of the Plan Year
following the Plan Year in which his termination of active participation
occurs.  If a former Participant whose
entire Vested Benefit was previously distributed or deemed distributed, is
re-employed before he has incurred five (5) consecutive one (1) year Breaks in
Service, the previously forfeited amount of the former Participant’s Accounts
shall be restored if the former Participant repays to the Plan any amount
previously distributed to him from his Regular Account and Non-Qualified
Matching Contribution Account prior to the earlier of (a) incurring five (5) consecutive
one (1) year Breaks in Service, or (b) five (5) years after the first date on
which the Participant is subsequently reemployed.

 

3.                                       Restoration of
forfeited amounts shall occur as of the date of repayment.  If the Participant was deemed to have
received a distribution of his Account Balance, no repayment shall be required
for restoration upon return to employment, and restoration shall occur as of
the date of re-employment.  The restored
Accounts shall not reflect any investment income, gains or losses of or other
adjustments to the Non-Self Directed Fund which would have been allocated to
the Accounts had there been no Forfeiture. 
Restoration by the Employer of the forfeited portion of the Accounts
shall be made pursuant to a special allocation to the re-employed Participant’s
Accounts of Forfeitures occurring during the Plan Year of re-employment, with
the special allocation of Forfeitures to be made prior to any allocation of
Forfeitures under the usual allocation provisions of the Plan.  If the amount of specially allocated Forfeitures
is insufficient to restore fully the forfeited portion of the reemployed
Participant’s Accounts, the Employer, in its sole discretion, shall either (a) contribute
to the Plan and make a special allocation to the re-employed Participant’s
Accounts of such additional amounts as are necessary to eliminate the
deficiency, or (b) make a special allocation of the investment income and gains
of the Non-Self Directed Fund to the re-employed Participant’s Accounts prior
to the usual allocation of income and gains, so as to eliminate the deficiency.

 

4.                                       If a
distribution is made to a Participant when the Participant has a nonforfeitable
right to less than all of the Accrued Benefit, then a separate account will be
established for the participant’s interest in the plan as of the time of the
distribution, and at any relevant time the Participants nonforfeitable portion
of the separate account will be equal to an amount (“X”) determined by the
formula:

 

X=P(AB + (R x D)) - (R x D)

 

25

 

For purposes of applying the
formula: P is the nonforfeitable percentage at the relevant time, AB is the
account balance at the relevant time, D is the amount of the distribution, and
R is the ratio of the account balance at the relevant time to the account
balance after distribution.

 

E.                                      Computation of
Years of Service.

 

1.                                       The Plan Year
shall be the vesting computation period used to measure completion of Years of
Service for vesting purposes.  If an
Employer changes its Plan Year, an Employee who completes at least one thousand
(1,000) Hours of Service in both (a) the vesting computation period under the
Plan before the amendment, which period began before the first vesting
computation period after the amendment, and (b) the first twelve (12) month
Plan Year resulting from the amendment, shall be credited with two (2) Years of
Service for vesting purposes.

 

2.                                       For purposes of
determining the Vested Benefit of a Participant, all Years of Service shall be
included, except that in the case of a Participant who has five (5) or more
consecutive one (1) year Breaks in Service, all Years of Service after the
period of consecutive Breaks in Service shall be disregarded for the purposes
of determining the Participant’s vesting in his Accounts that accrued before
the consecutive Breaks in Service.  The
Participant’s pre-Break in Service Years of Service shall be taken into account
in determining his vesting in his post-Break in Service Account balances.

 

ARTICLE
VI

DISTRIBUTION
OF BENEFITS

 

A.                                   Segregation or
Distribution of Accounts.

 

1.                                       Upon Separation
from Service of a Participant, the Administrator shall notify the Trustee and
the Participant or his Beneficiary within one hundred fifty (150) days after
the last day of the Plan Year in which Separation from Service occurs, as to
the amount of the former Participant’s Vested Benefit, if any, and the method
of distribution for any Vested Benefit. 
Within thirty (30) days after notification, the Trustee shall distribute
any amount of Vested Benefit directed by the Administrator and shall either
hold the Participant’s remaining Vested Benefit in the Non-Self Directed Fund
or the Individual Investment Fund, as applicable, or, if so directed by the
Administrator, segregate any remaining Vested Benefit and hold and invest that
amount as a Segregated Account separate from the Non-Self Directed Fund.  In any event, however, the periods specified
in the two (2) preceding sentences of this Article VI A 1 shall be reduced in
the case of a Participant’s retirement on or after the Participant’s Normal
Retirement Date to the extent necessary so that the payment of his benefits
will commence not later than the sixtieth (60th) day following the close of the
Plan Year in which normal retirement occurs, unless payment is deferred in
accordance with the Plan.  There shall be
no adjustment to the amount of Vested Benefit attributable to the Non-Self
Directed Fund for any income, expense, gain or loss allocable thereto and no
liability for any income or gain thereon with respect to that period between
the last preceding Valuation Date (including any special Valuation Date) and
the date of distribution or segregation.

 

2.                                       Notwithstanding
anything to the contrary in Article VI A 1 above, if the Administrator, in its
sole discretion, shall determine that it is in the best interest of the former
Participant or of the other accounts held in the Non-Self Directed Fund, a
former Participant’s Vested Benefit or a portion thereof, shall be held in a
Segregated Account until fully distributed.

 

3.                                       The Trustee may
commingle the Segregated Accounts of former Participants and invest and
administer them as one or more units. 
The Segregated Fund shall be invested by Trustee in bonds, notes, 

 

26

 

money market mutual funds, time deposit
accounts or other evidences of indebtedness which Trustee, in its discretion,
shall select primarily on the basis of protection from a decline in principal
value.

 

B.                                     Method of
Distribution.

 

1.                                       Distribution of
the Vested Benefit of a former Participant’s Accounts and the income thereon to
a former Participant or his Beneficiary shall be made by the Trustee in
accordance with directions which shall be given by the Administrator.

 

2.                                       Subject to Article
VII below, distribution shall be made in the form of a lump sum cash payment of
the Participant’s entire Accrued Benefit; provided, however, that at the
Participant’s written election, any whole shares of Employer Stock allocated to
his Accounts may be distributed in kind (with the value of any fractional
shares distributed in cash).

 

C.                                     Commencement
and Amount(s) of Distribution.

 

1.                                       (a)                                  Subject to Article
VII and Article VI C 2 through 4 below, in the case of retirement, Permanent
Disability or death of a Participant, the payment of the Participant’s Vested
Benefit shall begin not later than the sixtieth (60th) day following the close
of the Plan Year in which Normal Retirement occurs, or the one hundred
eightieth (180th) day following the close of the Plan Year in which death, or
Permanent Disability occurs unless the Participant or Beneficiary elects to
defer the commencement of benefits to a date no later than is permitted under
the other provisions of the Plan requiring commencement.

 

(b)                                 Subject to Article
VII and Article VI C 2 through 4 below, in the case of Separation from Service
for any reason other than retirement, Permanent Disability or death, the
payment of a Participant’s Vested Benefit shall begin not later than one
hundred eighty (180) days after the end of the Plan Year in which Separation
from Service unless the Participant or
Beneficiary elects to defer distribution to a date no later than that permitted
under the other provisions of the Plan requiring commencement.

 

2.                                       Except in the
case of a Participant described in Article
VI C 1 above who elects otherwise, in no event will distribution
commence later than the sixtieth (60th) day after the last occurring of the
following: (a) the close of the Plan Year in which the Participant
reaches his Normal Retirement Date; (b)the close of
the Plan Year in which the Separation from Service occurs; or (c) the close of
the Plan Year in which occurs the tenth (10th) anniversary of the Plan Year in
which the Employee became a Participant.

 

3.                                       Effective on
and after January 1, 2003, this Article VI C 3 shall apply to all distributions
and, subject to Article VII, shall take precedence over any contrary Plan
provision.  Except as provided in Article
VII of the Plan, the Plan provides for distribution in a lump sum form only and
nothing in this Article VI C 3 shall be construed to provide other forms of
distribution.

 

(a)                                  All
distributions shall be determined and made in accordance with this Article VI C
3 and the Regulations under Section 401(a)(9) of the Code.

 

(b)                                 The entire
Vested Benefit of a Participant must be distributed, or begin to be
distributed, no later than the Participant’s Required Beginning Date.

 

(c)                                  If a
Participant dies before distribution of his or her Vested Benefits begin, the
Participant’s entire Vested Benefit will be distributed, or begin to be
distributed, no later than as follows:

 

27

 

(1)                                  If the
Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then except as provided in Section C 3 (i) of this Article VI,
distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant
died, or by December 31 of the calendar year in which the Participant
would have attained age 70-1/2, if later.

 

(2)                                  If the
Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, then, except as provided in Section C 3 (i) of this Article VI,
distributions to the Designated Beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the
Participant died.

 

(3)                                  If a deceased
Participant has no Designated Beneficiary as of September 30 of the year
following the year of the Participant’s death, the Participant’s entire Vested
Benefit will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

 

(4)                                  If the
Participant’s surviving spouse is the Participant’s sole Designated Beneficiary
and the surviving spouse dies after the Participant but before distributions to
the surviving spouse begin, this Section C 3 (c), other than Section C
3 (c)(1), will apply as if the surviving spouse were the Participant.

 

For
purposes of this Section C 3 (c) and Section C 3 (e) of
this Article VI, unless Section C 3 (c)(4) of Article VI
applies, distributions are considered to begin on the Participant’s Required
Beginning Date.  If Section C 3 (c)(4) of
Article VI applies, distributions are considered to begin on the date
distributions are required to begin to the surviving spouse under Section C
3 (c)(1) of this Article VI. 
If distributions pursuant to Article VII of the Plan under an
annuity purchased from an insurance company irrevocably commence to the
Participant before the Participant’s Required Beginning Date (or to the
Participant’s surviving spouse before the date distributions are required to begin
to the surviving spouse under Section C 3 (c)(1)) of this Article VI,
the date distributions are considered to begin is the date distributions
actually commence.

 

(d)                                 Unless the
Participant’s interest is distributed under Article VII of the Plan in the
form of an annuity purchased from an insurance company or in a single sum on or
before the Required Beginning Date, as of the first Distribution Calendar Year,
distributions will be made in accordance with Sections C 3 (e) and C 3 (f) of
this Article VI.  If the Participant’s
Vested Benefit is distributed in the form of an annuity purchased from an
insurance company, distributions thereunder will be made in accordance with the
requirements of Code Section 401(a)(9) and the Treasury Regulations.

 

(e)                                  During the
Participant’s lifetime, the minimum amount that will be distributed for each
Distribution Calendar Year is the lesser of:

 

(1)                                  The quotient
obtained by dividing the Participant’s Account Balance by the distribution
period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the
Regulations, using the Participant’s age as of the Participant’s birthday in
the Distribution Calendar Year; or

 

(2)                                  If the
Participant’s sole Designated Beneficiary for the Distribution Calendar Year is
the Participant’s spouse, the quotient obtained by dividing the Participant’s
Account Balance by the number in the Joint and Last Survivor Table set forth in
section 1.401(a)(9)-9 of the Regulations, using the Participant’s and spouse’s
attained ages as of the Participant’s and spouse’s birthdays in the
Distribution Calendar Year.

 

Required
minimum distributions will be determined under this Section C 3 (e) beginning
with the first Distribution Calendar Year and up to and including the
Distribution Calendar Year that includes the Participant’s date of death.

 

28

 

(f)                                    If a
Participant dies on or after the date distributions to the Participant begin,
the following rules shall apply to the distribution of the Participant’s
Account Balance, if any.

 

(1)                                  If there is a
Designated Beneficiary with respect to the Participant, the minimum amount that
will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the longer of the remaining Life Expectancy of the
Participant or the remaining Life Expectancy of the Participant’s Designated
Beneficiary, determined as follows:

 

(i)                                     The Participant’s
remaining Life Expectancy is calculated using the age of the Participant in the
year of death, reduced by one for each subsequent year.

 

(ii)                                  The Participant’s
surviving spouse is the Participant’s sole Designated Beneficiary, the
remaining Life Expectancy of the surviving spouse is calculated for each
Distribution Calendar Year after the year of the Participant’s death using the
surviving spouse’s age as of the spouse’s birthday in that year.  For Distribution Calendar Years after the
year of the surviving spouse’s death, the remaining Life Expectancy of the
surviving spouse is calculated using the age of the surviving spouse as of the
spouse’s birthday in the calendar year of the spouse’s death, reduced by one
for each subsequent calendar year.

 

(iii)                               If the
Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is
calculated using the age of the beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

(2)                                  If there is no
Designated Beneficiary with respect to the Participant as of September 30
of the year after the year of the Participant’s death, the minimum amount that
will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the Participant’s remaining Life Expectancy calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.

 

(g)                                 If the
Participant dies before the date distributions to the Participant begin, the
following rules shall apply:

 

(1)                                  If there is a
Designated Beneficiary with respect to the Participant, the minimum amount that
will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the remaining Life Expectancy of the Participant’s
Designated Beneficiary, determined as provided in Section C 3 (f) of
this Article VI.

 

(2)                                  If there is no
Designated Beneficiary with respect to the Participant as of September 30
of the year following the year of the Participant’s death, distribution of the
Participant’s entire Vested Benefit will be completed by December 31 of
the calendar year containing the fifth anniversary of the Participant’s death.

 

(3)                                  If the
Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole Designated Beneficiary, and the
surviving spouse dies before distributions are required to begin to the
surviving spouse under Section C 3 (c)(1) of this Article VI,
this Section C 3 (g) will apply as if the surviving spouse were the
Participant.

 

(h)                                 For purposes of
this Article VI C 3, the following terms have the following meanings
unless the context otherwise requires:

 

29

 

(1)                                  “Designated
Beneficiary” means the individual who is designated as the Participant’s
Beneficiary under Article VI of the Plan and is the designated beneficiary
under Code Section 401(a)(9) and Section 1.401(a)(9)-1,
Q&A-4, of the Regulations.

 

(2)                                  “Distribution
Calendar Year” means a calendar year for which a minimum distribution is
required.  For distributions beginning
before the Participant’s death, the first “Distribution Calendar Year” is the
calendar year immediately preceding the calendar year which contains the
Participant’s Required Beginning Date. 
For distributions beginning after the Participant’s death, the first “Distribution
Calendar Year” is the calendar year in which distributions are required to
begin under Section C 3 (c) of this Article VI.  The required minimum distribution for the
Participant’s first “Distribution Calendar Year” will be made on or before the
Participant’s Required Beginning Date. 
The required minimum distribution for other “Distribution Calendar
Years,” including the required minimum distribution for the “Distribution
Calendar Year” in which the Participant’s Required Beginning Date occurs, will
be made on or before December 31 of that “Distribution Calendar Year.”

 

(3)                                  “Life
Expectancy” means a Participant’s or Beneficiary’s life expectancy as computed
by use of the Single Life Table in section 1.401(a)(9)-9 of the Regulations.

 

(4)                                  “Participant
Account Balance” means the Participant’s Account Balance as of the last
Valuation Date in the calendar year immediately preceding the “distribution
calendar year” (the “valuation calendar year”) increased by the amount of any
contributions made and allocated or forfeitures allocated to the Account
Balance as of dates in the “valuation calendar year” after the Valuation Date
and decreased by distributions made in the “valuation calendar year” after the
Valuation Date.  The Participant’s
Account Balance for the “valuation calendar year” includes any amounts rolled
over or transferred to the Plan either in the “valuation calendar year” or in
the “distribution calendar year” if distributed or transferred in the “valuation
calendar year.”

 

(5)                                  “Required
Beginning Date” means in the case of a Participant other than a five percent
(5%) owner, the first day of April of the calendar year following the
later of the calendar year in which the Participant attains age seventy and
one-half (70-1/2) or the calendar year in
which the Participant retires.  In the
case of a Participant who is a five percent (5%) owner, the Required Beginning
Date of such Participant is the first day of April following the calendar
year in which the Participant attains age seventy and one-half (70-1/2).  A
Participant is treated as a five percent (5%) owner for purposes of this Article VI
C 3 if the Participant is a five percent (5%) owner as defined in Section 416(i) of
the Code (determined in accordance with Section 416 but without regard to
whether the Plan is top-heavy) at any time during the Plan Year ending with or
within the calendar year in which the Participant attains age sixty-six and
one-half (66-1/2) or any subsequent Plan
Year.

 

(i)                                     If a
Participant dies before distributions begin and there is a Designated
Beneficiary, distribution to the Designated Beneficiary is not required to
begin by the date specified in Article VI C 3 (c)(1), (2) or (3) above,
but the Participant’s entire Account Balance shall be distributed no later than
December 31st of the calendar year which contains the fifth
anniversary of the Participant’s death. 
If the Participant’s surviving spouse is the Participant’s sole
Designated Beneficiary and the surviving spouse dies after the Participant but
before distributions to the Participant or surviving spouse begin, this
provision shall apply as if the surviving spouse were the Participant.

 

4.                                       (a)                                  If the present
value of a Participant’s Vested Benefit exceeds the Applicable Amount, and the
Vested Benefit is “immediately distributable” to the Participant, the
Participant must consent to any distribution of his Vested Benefit.  Additionally, if the present value of the
Participant’s Accounts to which

 

30

 

Article VII applies (an “Article VII Account”) exceeds the
Applicable Amount, and the Account is “immediately distributable,” the
Participant’s spouse, if any, must consent to any distribution of that Article VII
Account.  A Vested Benefit or Article VII
Account is “immediately distributable” if any part of the Vested Benefit or
Account could be distributed to the Participant before the Participant attains
(or would have attained, if not deceased) age sixty-two (62).  If a Participant whose immediately distributable
Vested Benefit or Article VII Account exceeds the Applicable Amount does
not consent to a distribution of his Vested Benefit in the Plan Year following
his Separation from Service or, where applicable, his spouse does not consent
to a distribution of an Article VII Account, distribution of his Vested
Benefit (or the Article VII Account, as applicable) shall be deferred
until the 60th day of the Plan Year following the first Plan Year in which the
Vested Benefit (or Article VII Account, as applicable) is no longer “immediately
distributable” unless the Participant (with his spouse’s consent, if necessary)
consents to distribution in an earlier year. 
Where required, the consent of the Participant (and, if applicable, his
spouse) to commencement of distribution shall be obtained in writing within the
ninety (90) day period ending on the “annuity starting date.”  The “annuity starting date” is the first day
of the first period for which an amount is paid in any form.  The Administrator shall notify the
Participant (and, if applicable, his spouse) of the right to defer any
distribution until the Participant’s Vested Benefit is no longer “immediately
distributable.”  The notice shall include
a general description of the material features, and an explanation of the
relative values of, the optional forms of benefit available under the Plan in a
manner that would satisfy the notice requirements of Section 417(a)(3) of
the Code, and shall be provided no less than thirty (30) days and no more than
ninety (90) days prior to the annuity starting date.  The Participant shall have at least thirty
(30) days from the date of the notice to elect or reject an immediate
distribution, but may waive the thirty (30) day waiting period unless the
distribution is subject to Article VII below.

 

(b)                                 Notwithstanding the
foregoing, only the Participant need consent to the commencement of
distribution in the form of a Qualified Annuity or Qualified Optional Survivor
Annuity under Article VII while the Participant’s Vested Benefit is
immediately distributable.  The consent
of the Participant (and, if applicable, his spouse) shall not be required to
the extent that a distribution is required to satisfy Section 401(a)(9) or
Section 415 of the Code.  In
addition, upon termination of this Plan, if the Plan does not offer an annuity
option (purchased from a commercial provider), and if the Employer or any
entity within the same controlled group as the Employer does not maintain
another defined contribution plan (other than an employee stock ownership plan
as defined in Section 4975(e)(7) of the Code), the Participant’s
Vested Benefit may, without the Participant’s consent, be distributed to the
Participant.  However, if any entity
within the same controlled group as the Employer maintains another defined
contribution plan (other than an employee stock ownership plan as defined in Section 4975(e)(7) of
the Code) then the Participant’s Vested Benefit will be transferred, without
the Participant’s consent, to the other plan if the Participant does not
consent to an immediate distribution.

 

D.                                    Hardship Distributions.

 

1.                                       Distribution of a
Participant’s Salary Reduction Contributions (and income accrued thereon,
limited as of December 31, 1988) may be made to a Participant in the event
of “Hardship.”  A Participant’s request
for a Hardship distribution shall be made on such forms as the Administrator
may require.  The decision to make, and
the amount of, any Hardship distribution shall be determined by the
Administrator in its sole discretion.

 

2.                                       (a)                                  Effective prior
to December 1, 2006, for the purposes of this Article VI D, Hardship
is defined as an immediate and heavy financial need of the Participant where
distribution is necessary to satisfy the need. 
On a uniform and non-discriminatory basis, the Administrator shall have
the discretion to limit the financial needs that may be considered immediate
and heavy for purposes of the Hardship distribution rules to:  (i) deductible medical expenses (within
the meaning of Section 213(d) of the Code) of the Participant, the Participant’s
spouse, children, or dependents; (ii) the purchase (excluding mortgage
payments) of a principal residence for the Participant; (iii) payment of
tuition for the next quarter or semester of post-secondary education

 

31

 

for the Participant, the Participant’s spouse, children or dependents;
or (iv) the need to prevent the eviction of the Participant from, or a
foreclosure on the mortgage of, the Participant’s principal residence.

 

(b)                                 Effective on and
after December 1, 2006, Hardship Distributions are permitted for the
following, enumerated immediate and heavy financial needs (and for any other
immediate and heavy financial need that the Administrator determines on a
uniform and non-discriminatory basis permits a hardship distribution in
conformity with published Internal Revenue Service guidance):  (i) expenses for (or necessary to
obtain) medical care that would be deductible under Code Section 213(d) (determined
without regard to whether the expenses exceed 7.5% of adjusted gross income); (ii) the
costs directly related to the purchase (excluding mortgage payments) of a
principal residence for Participant; (iii) payment of tuition, related
educational fees, and room and board expenses for the next 12 months of
post-secondary education for the Participant and the Participant’s spouse,
children, or dependents (as defined in Code Section 152 without regard to
Code Sections 152(b)(1), (b)(2) and (d)(1)(B)); (iv) payments
necessary to prevent the eviction of the Participant from the Participant’s
principal residence or foreclosure on the mortgage on that residence; (v) payments
for burial and funeral expenses for the Participant’s deceased parent, spouse,
children or dependents (as defined in Code Section 152 without regard to
Code Sections 152(b)(1), (b)(2) and (d)(1)(B)); and (vi) expenses for
the repair of damage to the Participant’s principal residence that would
qualify for a casualty deduction under Section 165 (determined without
regard to whether the loss exceeds 10% of adjusted gross income).

 

3.                                       The following
are the only circumstances in which a distribution will be considered as
necessary to satisfy an immediate and heavy financial need of the Participant:

 

(a)                                  The Participant
has obtained all distributions, other than Hardship distributions, and all
nontaxable loans under all plans maintained by the Employer;

 

(b)                                 All plans
maintained by the Employer provide that the Participant’s elective deferrals
(and other employee contributions) will be suspended for six (6) months;

 

(c)                                  The
distribution is not in excess of the amount of the Participant’s immediate and
heavy financial need; and

 

(d)                                 All plans maintained by the
Employer provide that the Participant may not make elective deferrals for the
calendar year immediately following the calendar year of the Hardship
distribution in excess of the applicable limit under Section 402(g) of
the Code for such subsequent year less the amount of such Participant’s
elective deferrals for the year of the Hardship distribution.

 

E.                                      Spousal
Survivors Benefit and Beneficiary Designation.

 

1.                                       (a)                                  Anything in
this Article VI to the contrary notwithstanding, a mandatory survivor
benefit shall apply to every Participant or former Participant.

 

(b)                                 Upon the death
of a married Participant or former Participant covered by the mandatory spousal
survivor benefit, his entire Vested Benefit (excluding the amount of any
outstanding loans secured by the Participant’s Accrued Benefit) under the Plan
shall be paid within a reasonable time to his surviving spouse (subject to the
spousal Beneficiary’s right to defer distribution as provided in Article VI
C 1), and adjusted for gains and losses in the same manner as other Account
balances are adjusted pending distribution. 
If, however, there is no surviving spouse or if the Participant waives
the mandatory survivor benefit and the surviving spouse consented in the manner
set forth in Article VII B for a Qualified Election (other than the notice
requirements therefor) to the designation of another Beneficiary by the
Participant, the Accrued Benefit shall be paid to the designated Beneficiary
pursuant to the distribution provisions of the Plan which would apply in the
absence of this

 

32

 

subparagraph.

 

2.                                       Any Beneficiary
designation under this Article VI shall be in the form prescribed by the
Administrator and shall be effective only when executed by the Participant and,
if applicable, his spouse, and filed with the Administrator by the Participant.  A Participant may, from time to time in like
manner, revoke the beneficiary designation and such action shall not require
the consent of any Beneficiary.  A
Participant (with the consent of his spouse, if applicable) may designate
multiple, contingent or successive beneficiaries, and specify the proportionate
distribution to each Beneficiary.

 

3.                                       In the absence
of an effective Beneficiary designation, the Administrator shall direct the
Trustee to distribute the Participant’s undistributed Vested Benefits to the
Participant’s surviving spouse, if any, or, if there is no surviving spouse,
then to the estate of the Participant.

 

4.                                       If the
Beneficiary shall survive the Participant, but shall die before the entire
Vested Benefit of the former Participant has been paid, then, absent any other
provision by the Participant, the unpaid amount shall be payable to the estate
of the deceased Beneficiary.

 

5.                                       If multiple
Beneficiaries are designated, absent express provision by the Participant,
those named or the survivors of them, shall share equally any benefits payable
under this Plan.

 

F.                                      Portability.  Anything in this Article to the contrary
notwithstanding, a Distributee may elect at the time and in the manner
prescribed by the Administrator to have all or any portion of the Distributee’s
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover.  Any provision herein to the contrary
notwithstanding, effective on and after March 28, 2005, in the event of a
mandatory distribution to a Distributee of greater than $1,000 to which the
Participant consent requirements of Section VI C 4 do not apply, if the
Participant does not elect to have such mandatory distribution paid directly to
an Eligible Retirement Plan specified by the Participant in a direct rollover
or to receive the distribution directly, then distribution shall be made in a
direct rollover to an individual retirement plan designated by the Plan
Administrator.

 

G.                                     Missing Participants and
Beneficiaries.  If the
Accrued Benefit payable to any Participant or Beneficiary remains unpaid solely
due to the Plan Administrator’s inability to locate the distributee after
diligent efforts to ascertain his or her whereabouts, the amount so distributable
shall be treated as a Forfeiture and reallocated in accordance with the
provisions of the Plan dealing with Forfeitures of Non-Qualified Matching
Contributions.  If the distributee is
later located, such benefit plus the earnings that would have accrued thereon
shall be restored.

 

H.                                    Other In-Service Distributions.

 

1.                                       Any Participant who has attained age 59-1/2 and is still employed by an
Employer may elect to receive one (or, effective on and after January 1,
2008, one or more) in-service distributions of a designated portion of his
Vested Benefit prior to his Separation from Service (an “In-Service
Distribution”).  All In-Service
Distributions after attaining age 59-1/2 shall be paid in a lump sum.  A Participant who has attained age 59-1/2 may
only receive one In-Service Distribution per Plan Year after attaining that age
and prior to his or her Separation from Service.  No such In-Service Distribution shall exceed
fifty percent of the Participant’s Vested Benefit as of the Valuation Date
immediately preceding the date of the distribution.  A Participant who elects to receive an
In-Service Distribution shall provide notice requesting the distribution to the
Plan on such forms as the Plan Administrator requires.  Distribution shall be made as soon as practicable
after receipt of the distribution request.

 

33

 

2.                                       Effective on and after October 1, 2009, to the extent otherwise
permitted under the Code, a Participant regardless of age who is still
employed by an Employer may elect to receive one or more in-service
distributions of a designated portion of his Transfer Account provided such
Transfer Account consists solely of funds rolled over directly or indirectly
from another tax-qualified retirement (and not in a plan spin-off or other
trustee-to-trustee transfer of plan assets not constituting a distribution
under Code Section 402).  All such
in-service distributions from a Transfer Account shall be paid in a lump
sum.  A Participant who may only receive
one distribution per Plan Year from his Transfer Account under this Article VI
H 2 prior to his Separation from Service.

 

3.                                       Effective on
and after January 1, 2009, the Plan shall permit a Participant who is a “Qualified
Reservist”  to request and obtain an immediate
lump sum distribution of all or a portion of the Participant’s Elective
Deferral Account (and, if applicable after 2009, Roth Elective Deferral
Account);  provided (i) such
distribution is made during the period beginning on the date of the Participant’s
order or call to such active military duty and ending immediately before the
close of such period of active military duty; and (ii) the distribution is
otherwise permitted under Code Section 401(k)(2)(B)(V).

 

4.                                       Effective on
and after January 1, 2009, the Plan shall permit a Participant who is a on
a leave of absence from his Employer for more than 30 days to perform active
duty military service in the “uniformed services” within the meaning of Code Section 3401(h)(2)(a) to
request and obtain an immediate lump sum distribution of all or a portion of
the Participant’s Elective Deferral Account (and, if applicable after 2009,
Roth Elective Deferral Account) while on such leave of absence;  provided: (i) the distribution is
otherwise permitted under Code Section 414(u)(12)(B)(i); and (ii) the
Participant may not make any Salary Reduction Contributions or to the Plan or
elective deferrals or after-tax contributions to under any other Employer plan
within six months after receiving such distribution.

 

ARTICLE VII

ANNUITY PROVISIONS

 

A.                                   Application.

 

This
Article shall only apply to the Transfer Account of a Participant in cases
in which the Plan is a direct or indirect transferee of a plan to which the
survivor annuity requirements of Sections 401(a)(11)(A) and 417 of the
Code apply.  This Article shall take
precedence over any conflicting provision in this Plan.

 

B.                                     Definitions.

 

For
purposes of this Article, the following definitions shall apply:

 

1.                                       Annuity
Starting Date.  The first
date on which an amount is distributed as an annuity or in any other form.

 

2.                                       Election Period.  The period which begins on the first day of
the Plan Year in which the Participant attains age thirty-five (35) and ends on
the date of the Participant’s death.  If
a Participant Separates from Service prior to the first day of the Plan Year in
which age thirty-five (35) is attained, the Election Period shall begin on the
date of Separation from Service with respect to the Account balances as of the
date of separation.

 

3.                                       Earliest Retirement
Age.  The earliest date on which,
under the Plan, the Participant could elect to receive retirement benefits.

 

34

 

4.                                       Pre Age
Thirty-Five (35) Waiver.  A
Participant who will not attain age thirty-five (35) as of the end of any
current Plan Year may make a special Qualified Election to waive the Qualified
Pre-Retirement Survivor Annuity for the period beginning on the date of such
election and ending on the first day of the Plan Year in which the Participant
will attain age thirty-five (35).  The
Administrator shall provide to the Participant a written explanation of the
Qualified Pre-Retirement Survivor Annuity in such terms as are comparable to
the explanation required under Article VII E below.  Qualified Pre-Retirement Survivor Annuity
coverage shall be reinstated as of the first day of the Plan Year in which the
Participant attains age thirty-five (35), and any new waiver thereafter shall
be subject to the full requirements of this Article.

 

5.                                       Qualified
Election.  A waiver of
a Qualified Annuity or a Qualified Pre-Retirement Survivor Annuity by a married
Participant (or, if deceased, by his spouse). 
Any waiver of a Qualified Annuity or a Qualified Pre-Retirement Survivor
Annuity by a married Participant or spouse shall not be effective unless:  (a) the Spouse consents in writing to
the election; (b) the election designates a specific beneficiary,
including any class of beneficiaries or any contingent beneficiaries, which may
not be changed without spousal consent (or the Spouse expressly permits
designations by the Participant without any further spousal consent); (c) the
Spouse’s consent acknowledges the effect of the election; and (d) the
Spouse’s consent is witnessed by a Plan representative or notary public.  Additionally, a Participant’s waiver of the
Qualified Annuity shall not be effective unless the election designates a form
of benefit payment which may not be changed without spousal consent (or the
Spouse expressly permits designations by the Participant without any further
spousal consent).  If it is established
to the satisfaction of a Plan representative that there is no Spouse or that
the Spouse cannot be located, the Participant’s waiver will be deemed a
Qualified Election.  Notwithstanding the
foregoing, effective on and after January 1, 2008, a Participant may waive
a Qualified Annuity and instead elect a Qualified Optional Survivor Annuity
without his or her Spouse’s consent.

 

Any
consent by a Spouse obtained under this provision (or establishment that the
consent of a Spouse may not be obtained) shall be irrevocable by that Spouse
but shall be effective only with respect to that Spouse.  A consent that permits designations by the
Participant without any requirement of further consent by the Spouse must
acknowledge that the Spouse has the right to limit consent to a specific
beneficiary, and a specific form of benefit where applicable, and that the
Spouse voluntarily elects to relinquish either or both of these rights.  A revocation of a prior waiver may be made by
a Participant without the consent of the Spouse at any time before the
commencement of benefits.  The number of
revocations shall not be limited.

 

6.                                       Qualified Annuity.  In the case of an unmarried Participant, an
immediate life annuity.  In the case of a
married Participant, an immediate annuity for the life of the Participant with
a survivor annuity for the life of the Participant’s Spouse which is fifty
percent (50%) of the amount of the annuity payable during the joint lives of
the Participant and the Spouse and which is the amount of benefit which can be
purchased with the Participant’s Vested Benefit.

 

7.                                       Qualified Optional Survivor
Annuity.  In the case of a married
Participant, an immediate annuity for the life of the Participant with a
survivor annuity for the life of the Participant’s Spouse which is seventy five
percent (75%) of the amount of the annuity payable during the joint lives of
the Participant and the Spouse and which is the amount of benefit which can be
purchased with the Participant’s Vested Benefit.

 

8.                                       Qualified Pre-Retirement
Survivor Annuity.  An annuity
for life of a Participant’s Surviving Spouse, the payments under which are
equal to the amount of benefits that can be purchased with fifty percent (50%)
of the Participant’s Vested Benefit as of the last day of the Plan Year in
which occurs the Participant’s death. 
The amount of the Participant’s employee-derived Account balances
allocated to the Qualified Pre-Retirement Survivor Annuity for the Surviving
Spouse shall be the same proportion as the employee-derived Account balances
bear to the total Accrued Benefit of the Participant.

 

35

 

9.                                       Spouse (Surviving Spouse).  The spouse or surviving spouse of the
Participant, provided that a former spouse will be treated as the spouse or
surviving spouse (and a current spouse will not be treated as a spouse or
former spouse) to the extent provided under a qualified domestic relations
order described in Section 414(p) of the Code.

 

10.                                 Vested Benefit.  For purposes of this Article, Vested Benefit
shall have the meaning set forth in Article I and shall include the
proceeds of all insurance contracts, except that loans outstanding on the
Annuity Starting Date which are secured by the Participant’s Accrued Benefit
shall be excluded.

 

C.                                     Distribution of Qualified
Annuity.

 

Unless an optional form of benefit is
selected pursuant to a Qualified Election within the ninety (90) day period
ending on the Annuity Starting Date, the Vested Benefit of a Participant shall
be paid in the form of a Qualified Annuity pursuant to the purchase of annuity
contracts which comply with the terms of this Plan.  Alternatively, effective on and after January 1,
2008, a married Participant entitled to distribution in the form of a Qualified
Annuity may elect at any time within the ninety (90) day period ending on his
Annuity Starting Date, and without the consent of his or her Spouse, to receive
distribution in the form of a Qualified Optional Survivor Annuity.  The Participant may elect to have the annuity
contract distributed upon attainment of the Earliest Retirement Age under the
Plan.

 

D.                                    Distribution of Qualified
Pre-Retirement Survivor Annuity.

 

Unless an optional form of benefit has been
selected pursuant to a Qualified Election (made within the Election Period
unless the Qualified Election is by the Surviving Spouse, if a married
Participant or married former Participant covered by this Article dies
before the Annuity Starting Date, then the applicable portion of the
Participant’s Vested Benefit shall be applied toward the purchase of a
Qualified Pre-Retirement Survivor Annuity contract which complies with the
terms of this Plan and will provide payments to the Participant’s Surviving Spouse
commencing on the earliest date the deceased Participant could have elected to
receive retirement benefits under the Plan, unless the Surviving Spouse makes a
Qualified Election to waive the Qualified Pre-Retirement Survivor Annuity or
elects to defer distribution as provided in the Plan.  Any Vested Benefit remaining after the
purchase of such a Qualified Pre-Retirement Survivor Annuity shall be
distributed in accordance with Article VI above.

 

E.                                      Notice Requirements.

 

1.                                       (a)                                  In the case of
a Qualified Annuity, the Plan Administrator shall, not less than thirty (30)
days and no more than ninety (90) days prior to the Annuity Starting Date,
provide each Participant covered by this Article with a written
explanation of:  (i) the terms and
conditions of a Qualified Annuity and Qualified Optional Survivor Annuity; (ii) a
general description of the material features, and an explanation of the
relative values of the optional forms of benefit available under the Plan; (iii) the
Participant’s right to make and the effect of an election to waive the
Qualified Annuity and form of benefit; (iv) the rights of a Participant’s
Spouse; and (v) the right to make, and the effect of, a revocation of a
previous election to waive the Qualified Annuity.

 

(b)                                 The Annuity
Starting Date for a distribution in a form other than a Qualified Annuity may
be less than thirty (30) days after receipt of the written explanation
described above if (1) the Participant has been provided with information
that clearly indicates that the Participant has at least thirty (30) days to
consider whether to waive the Qualified Annuity and elect (with spousal
consent, if applicable) to a form of distribution other than a Qualified
Annuity or Qualified Optional Survivor Annuity; (ii) the Participant is permitted
to revoke any affirmative distribution election at least until the Annuity
Starting Date or, if later, at any time prior to the expiration of the seven (7) day
period that begins the day after the explanation of the Qualified

 

36

 

Annuity
is provided to the Participant; and (iii) the Annuity Starting Date is a
date after the date that the written explanation is provided to the
Participant.

 

2.                                       (a)                                  In the case of
a Qualified Pre-Retirement Survivor Annuity, the Plan Administrator shall
provide each Participant covered by this Article within the applicable
period for the Participant a written explanation of the Qualified
Pre-Retirement Survivor Annuity in such terms and in such manner as would be
comparable to the explanation provided for meeting the requirements of Article VII
E 1 above.

 

(b)                                 The applicable
period for the Participant is the last to end of the following periods:  (1) the period beginning with the first day
of the Plan Year in which the Participant attains age thirty-two (32) and
ending with the close of the Plan Year preceding the Plan Year in which the
Participant attains age thirty-five (35); (2) a reasonable period after
the Participant commences participation; or (3) a reasonable period after
this Article first applies to the Participant.  Notwithstanding the foregoing, notice must be
provided within a reasonable period after Separation from Service in the case
of a Participant who Separates from Service before attaining age thirty-five
(35).

 

(c)                                  For purposes of
applying Article VII E 2(b) above, a reasonable period ending after
the enumerated events described in subparagraphs (2) and (3) is the
end of the two (2) year period beginning one (1) year prior to the
date the applicable event occurs, and ending one (1) year after that
date.  In the case of a Participant who
separates from service before the Plan Year in which age thirty-five (35) is
attained, notice shall be provided within the two (2) year period
beginning one (1) year prior to separation and ending one (1) year after
separation.  If such a Participant
thereafter returns to employment with the Employer, the applicable period for
the Participant shall be redetermined.

 

F.                                      Cash Out.  If the present value of a Participant’s
Qualified Annuity or a Qualified Pre-Retirement Survivor Annuity does not
exceed the Applicable Amount at the Annuity Starting Date, the Plan shall
distribute a lump sum equal to the annuity’s present value in lieu of the
annuity without the consent of the Participant or his Spouse.  For this purpose, present value shall be
determined under Section 417(e)(3) of the Code. 
Notwithstanding the above, no lump sum distribution shall be made
hereunder once benefits have commenced unless the Participant and his Spouse
(or the Surviving Spouse, if applicable) so consent.

 

ARTICLE
VIII

ADMINISTRATION OF THE PLAN

 

A.                                   Plan
Administration.  The Plan
shall be administered by such person or persons as shall be appointed by the
Principal Employer as the Administrator. 
If more than one person is so appointed, the persons shall form an
administrative committee for the Plan. 
If no such person is appointed, the Principal Employer shall serve as
the Administrator.

 

B.                                     Composition.

 

1.                                       The person or
the committeemen serving as Administrator shall be appointed by the Employer
and shall serve for indefinite terms at the pleasure of the Principal
Employer.  A person or committeeman
serving as the Administrator may be removed by the Principal Employer at any
time, with or without cause, upon giving written notice to the person or other
persons who may be serving, and the Trustee. 
A person or committeeman serving as the Administrator may resign at any
time by giving written notice to the Principal Employer, the Trustee, and if applicable,
the administrative committee.  The
Principal Employer shall promptly fill any vacancy with respect to the
Administrator by appointment of a new person or committeeman and shall notify
the other persons in office, if any, and the Trustee of such appointment.  The Trustee may assume that any person
appointed continues in office until notified as above provided of any
change.  In the event of

 

37

 

termination
of the Plan, the authority of the Administrator shall continue until complete distribution
of the Trust Fund.  If the Principal
Employer shall fail to fill any vacancy within a reasonable time, the vacancy
may be filled by the remaining persons in office, or, if there are none, then
the Trustee may apply to a court of competent jurisdiction in the city or
county in which the Principal Employer’s principal office is located.

 

2.                                       The person(s) serving
as the Administrator shall not be compensated for their services, but they
shall be reimbursed for any reasonable expenses incurred in the performance of
their duties.

 

3.                                       If more than
one person is serving as Administrator, then decisions of the Administrator
shall be made by the vote of the majority of the persons then in office.  The Administrator may act at a meeting or
without a meeting if a consent in writing, setting forth the action, is signed
by all of the persons in office.

 

C.                                     Powers and
Duties of the Administrator.  Subject to the claims review procedures under
Article VIII D below, all interpretations, determinations, actions and
decisions of the Administrator shall be final, conclusive and binding as to all
interested parties.  The Administrator
shall have responsibility for and all powers necessary or desirable to carry
out the administration of the Plan and, without limitation on the foregoing,
shall have the power and duty to:

 

1.                                       Adopt such rules and
regulations as it deems desirable for the conduct of its affairs and the
administration of the Plan, provided that all rules, regulations and decisions
of the Administrator shall be uniformly and consistently applied to all persons
in similar circumstances.

 

2.                                       Keep and
maintain permanent records of all of its meetings, proceedings and actions,
Beneficiary designations, Participant elections, and all other records of the
Plan required by the Code and ERISA other than those maintained by the Trustee.

 

3.                                       Comply with all
requirements of the Code and ERISA with respect to notice and disclosure and
the preparation and filing of reports and forms.

 

4.                                       Construe and
interpret the Plan and Trust Agreement, and make determinations under the
provisions of the Plan with respect to:

 

(a)                                  eligibility of
Employees to commence participation or continue participation;

 

(b)                                 eligibility to
make or receive allocations of contributions or Forfeitures, and the amounts
thereof;

 

(c)                                  the amount and
vested percentage of the Accrued Benefit of each Participant or former
Participant;

 

(d)                                 the timing,
method and amount of distribution to Participants or their Beneficiaries, all
of which determinations shall be made on the basis of information of which the
Administrator is notified by Employer and Trustee; and

 

(e)                                  all other
matters pertaining to the operation and administration of the Plan.

 

5.                                       Appoint or
employ persons to assist in the administration of the Plan.

 

6.                                       Advise, counsel
and assist any Participant or Beneficiary concerning any right, benefit or
election available under the Plan.

 

38

 

7.                                       Request such
variances, deferrals, extensions or exemptions or make such elections for the
Plan as may be permitted by law.

 

8.                                       Make any
equitable adjustments to correct any error or omission discovered in the
administration of the Plan and its accounts.

 

D.                                    Claims.

 

1.                                       Any Participant
or Beneficiary may make claim for a Plan benefit by filing a written claim with
the Administrator at any time prior to or ninety (90) days after notification
of his Vested Benefit.

 

2.                                       The
Administrator shall make the initial determination as to any claim under the
Plan and give the claimant notice thereof within ninety (90) days after receipt
of the claim, unless special circumstances require an extension of time for
processing the claim, not to exceed ninety (90) additional days.  If the Administrator wholly or partially
denies the claim, the notice shall include, in a manner calculated to be
understood by the claimant, the following:

 

(a)                                  The specific
reason for the denial;

 

(b)                                 Specific
reference to pertinent Plan provisions on which the denial is based;

 

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

 

(d)                                 Information as
to the steps to be taken if the claimant wishes to submit his or her claim for
review, including the time limits therefor.

 

3.                                       Within sixty
(60) days after notification that the claim is wholly or partially denied, the
claimant may file with the Administrator a written request for review of the
decision.  The Administrator shall
provide the claimant requesting review the opportunity to review pertinent
documents relating to the decision, to submit issues and comments in writing,
and to have a hearing for the purpose of presenting facts and argument.  Within sixty (60) days after receipt of a request
for review (unless special circumstances require further time for processing
the review, not to exceed sixty (60) additional days), the Administrator shall
make a final determination and give notice to the claimant of its decision,
which shall include specific reasons for the decision, written in a manner
calculated to be understood by the claimant, and specific references to the
pertinent Plan provisions on which the decision is based.

 

4.                                       All claims and requests
shall be made and notice given in the same manner as provided for notification
in Article VIII E below.

 

E.                                      Notification.

 

1.                                       All notices required or
permitted by the Plan shall be in writing and adequate if given as follows:

 

(a)                                  To the Employers:  By delivery in person or by mail addressed to:

 

Merit Medical Systems, Inc.

1600 West Merit Parkway

 

39

 

South Jordan, Utah 84095

Attention: 
General Counsel

 

(b)                                 To the Administrator:  By delivery in person or by mail addressed
to:

 

Human Resources Department

c/o Merit Medical Systems, Inc.

1600 West Merit Parkway

South Jordan, Utah 84095

 

(c)                                  To Participants, former
Participants and Beneficiaries:  By
delivery in person or by mail addressed to the Participant, former Participant,
or Beneficiary, at his address as shown on the records of the Administrator.

 

(d)                                 To Employees:  By delivery in person, by prominent posting
on a bulletin board customarily used by the Employer for notices to Employees
with regard to labor management relations at work sites of Participants, or by
mail addressed to the Employee at his address as shown on the records of the
Employer.

 

2.                                       The Employers or the
Administrator may change the mailing address to which notice is to be sent by
notice to each other, the Trustee, and all Employees.

 

3.                                       The Trustee, Participants,
former Participants, and Beneficiaries may change the mailing address to which
notice is to be sent by notice to the Employers and the Administrator.

 

4.                                       Notice sent by mail shall be
by first class mail, with postage prepaid.

 

5.                                       Notice shall be deemed to be
given on the date delivered, posted, or deposited in the mail.

 

ARTICLE IX

ALLOCATION OF FIDUCIARY RESPONSIBILITIES

 

A.                                   The Administrator is hereby
designated a Named Fiduciary, with fiduciary responsibility for administration
of the Plan.

 

B.                                     The Trustee is
hereby designated as a Named Fiduciary, with fiduciary responsibility for the
control, investment (except as otherwise directed by the Principal Employer or
Administrator), management, and distribution of the Trust Fund.  The Principal Employer is hereby designated
as a Named Fiduciary with respect to control or management of the assets of the
Plan, to the extent of its power to appoint an Investment Manager and to the extent
it elects to direct the Trustees as to permitted Plan investment alternatives
for self-directing Participants.

 

C.                                     The Principal
Employer reserves the right to change or designate additional Named Fiduciaries
and to allocate and reallocate fiduciary responsibilities by resolution of its
Board of Directors.  Any person may serve
in more than one fiduciary capacity.

 

D.                                    The Named Fiduciaries, with
the written consent of the Employer, may allocate fiduciary responsibilities
among Named Fiduciaries of the Plan; and they may designate other persons who
are not Named Fiduciaries to carry out such fiduciary responsibilities.

 

40

 

E.                                      The responsibilities imposed
by this Plan on each Named Fiduciary are not joint responsibilities with any
other fiduciary.  No fiduciary shall be
responsible for the act, or failure to act, of any other fiduciary.

 

ARTICLE X

TRUST PROVISIONS

 

A.                                   Separate Trust Agreement.  Effective on and after January 1, 2003,
the Trust shall be held, established, and administered, and the powers, rights,
and duties of the Trustee and the Principal Employer with respect to the Trust
shall be as set forth in the Trust Agreement dated as of December 18,
2002, between Reliance Trust Company, as Trustee, and the Principal
Employer.  The Trust Agreement, as
amended from time to time, is hereby incorporated by reference herein.

 

B.                                     Investment in
Employer Stock.  The Plan is intended to invest in Employer
Stock and Employer stock shall be offered as an investment alternative for
self-directing Participants.  Effective
on and after January 1, 2004, however, no portion of a Participant’s Accounts
is required to be invested in Employer Stock unless the Participant elects to
self-direct the investment of his Accounts into Employer Stock, in which case
the Trustees shall invest the Participant’s Account in Employer Stock to the
extent requested by the Participant and shall have no discretion or authority
to refrain from making such Participant directed investment.  Any provision herein to the contrary
notwithstanding, Participant-directed elections under the Plan to invest in
Employer Stock or to buy, sell or trade Employer Stock as a Participant
directed investment shall be subject to all limitations and restrictions set
forth in the Merit Medical Systems, Inc. insider trading policy in effect at
the time in question, which policy generally prohibits certain executive
officers from trading in Employer Stock during periodic “blackout periods”
prior to Merit Medical Systems, Inc.’s release of quarterly and annual
financial statements.

 

ARTICLE XI

PARTICIPANT-DIRECTED INVESTMENTS

 

A.                                   Election.

 

1.                                       Effective on
and after January 1, 2004, a Participant may, by written, telephonic or
other electronic notice filed with the Administrator on or before the last day
of the Plan Year (or such other Valuation Date(s) as the Administrator may
designate, not less frequently than quarterly), elect to direct the investment
of all or a portion of his Vested Benefit in his Accounts, determined as of the
designated Valuation Date, upon such terms and in such assets as he shall
designate in the notice.  Likewise, a
Participant who has elected to direct the investment of all or a portion of the
Vested Benefits in his Accounts may by telephonic, electronic or such other
means as the Administrator permits (not less frequently than quarterly) change
from time to time the manner in which his Accounts are invested among the
various available investment options, including investment in Employer
Stock.  In addition to Employer Stock,
which is hereby required to be included as a Participant-directed investment
option under the Plan, the Principal Employer may designate a limited number of
Participant directed investment permitted under ERISA.  Effective
on and after January 1, 2010, the Participants may direct the investment of
their Accounts among any publicly traded security available through such “open
brokerage window” investment option as the Administrator approves, provided
such investment is permitted by ERISA.

 

2.                                       Upon receipt of a Participant’s
election, the Administrator shall advise the Trustee of the Participant’s
decision to exercise control over the assets in his designated Accounts and
shall direct the Trustee to segregate the enumerated portion of the Participant’s
Vested Benefit and to administer and invest that portion as a separate
Individual Investment Fund, bearing the Participant’s name, upon the terms and
in the assets designated.  The
Administrator shall establish and maintain an Individual Investment Account as
a continuing record of the assets held in the Participant’s Individual
Investment Fund.

 

41

 

Upon notice by the Administrator that a
Participant has elected to exercise control over all or a portion of the assets
in his eligible Accounts, the Trustee shall segregate a portion of the assets
of the Non-Self Directed Fund equal to the enumerated portion and shall
administer and invest those funds as an Individual Investment Fund separate and
apart from the Non-Self Directed Fund, bearing the name of the
Participant.  The assets in each
Individual Investment Fund shall be invested and voted upon the terms and in
the assets designated in by the Participant telephonically, electronically or
if permitted by the Administrator in writing, and the sole duty of the Trustee
with respect to the investment thereof shall be to make the investment and any
change therein or addition thereto as directed by the Administrator and the
Participant.  All income, gains, losses,
and expenses of a Participant’s Individual Investment Fund shall be allocated
exclusively to that Participant’s Accounts.

 

3.                                       A Participant who has
elected to direct investments may, from time to time in like manner, elect to
direct the investment of an additional portion of his Vested Benefit, or may,
at any time, amend his investment direction or elect to terminate his
investment direction as to all or a portion of the assets in the Individual
Investment Fund.  If a Participant elects
to terminate his investment direction, the Administrator shall direct the
Trustee to convert the enumerated assets of the Individual Investment Fund to
cash and to hold and invest the liquidated assets as provided in Article X.  If the termination of the Participant’s
investment direction occurs on a date other than a Valuation Date, the
liquidated assets shall be accounted for separately and shall be credited to
the pertinent Accounts of the Participant as of the next Valuation Date after
the valuation of assets and adjustment of Accounts.

 

B.                                     Accounting for
Individual Investment Funds.  As soon as practicable after each Valuation
Date, the Trustee (or its delegee) shall determine the fair market value of the
assets of the Individual Investment Funds as of the Valuation Date.  The Administrator shall provide each
Participant who has elected to direct the investment of the Participant’s
Account with quarterly and annual statements of the receipts and disbursements
during the Plan Year of each Individual Investment Fund and its value as so
determined.

 

C.                                     Expenses.  All expenses and taxes attributable to the
direction of investments by a Participant shall be paid by the Participant or
paid by Trustee out of the assets subject to such direction, except to the
extent that the Employer shall agree to pay the expenses.

 

D.                                    Disposition of Individual
Investment Funds.  Upon the
Separation from Service of a Participant, the Administrator shall direct the
Trustee either (a) to retain the assets held in the Individual Investment Fund
subject to further direction in accordance with this Article; (b) to
convert the Individual Investment Fund to cash and hold the liquidated assets
as a Segregated Account; or (c) to distribute the assets held in the Individual
Investment Fund to the Participant.

 

ARTICLE
XII

LOANS TO PARTICIPANTS

 

A.                                   Right to Borrow.  A Participant may borrow from his Elective
Deferral and Transfer Accounts an amount not to exceed his Vested Benefit,
subject to the approval by the Administrator of the loan.  Upon its approval of a loan to a Participant,
the Administrator shall direct the Trustee to make the loan to the Participant
in the amount and upon the terms approved, with all of the terms of any such
loan to be set forth in the Administrator’s directions to the Trustee.

 

B.                                     Loan Terms.  In addition to such written rules as the
Administrator may adopt as part of the Plan, all loans shall comply with the
following terms and conditions:

 

1.                                       Loans shall be
made available to all Participants on a reasonably equivalent basis and shall
be administered by the Administrator.

 

42

 

2.                                       An application
for a loan by a Participant shall be made in writing to the Administrator,
whose approval or rejection thereof shall be based upon such factors as
financial need, credit worthiness of the would be borrower and administrative
burdens.  The Administrator’s decision to
approve or deny a loan shall be final.

 

3.                                       The period of repayment for
any loan shall be arrived at by mutual agreement between the Administrator and
the borrower, but such period in no event shall exceed the maximum term
specified in Article XII B 9.

 

4.                                       Each loan shall
be evidenced by the borrower’s collateral promissory note for the amount of the
loan, including interest, which shall be made payable to the order of the
Trustee, shall provide for repayment through direct payroll reduction and
deposit, shall contain the provision for acceleration described in Article XII
B 6 below, and shall be secured by the borrower’s assignment to the Trustee of fifty percent (50%) of his entire right,
title and interest in the Trust Fund. 
To the extent required by the Code, a borrower must obtain the consent
of his spouse, if any, within the ninety (90) day period before the time the
Account balances are used as security for the loan.  A new consent is required if the Account
balances are used for any increase in the amount of security or renegotiation,
renewal, extension or other revision of the loan.  The consent shall comply with the
requirements of Article VII, but shall be deemed to meet any requirements
contained in Article VII relating to the consent of any subsequent spouse.

 

If
a valid spousal consent has been obtained in accordance with this Article XII
B 4, then, notwithstanding any other provision of this Plan, the portion of the
Participant’s Vested Benefit given as a security to the Plan by reason of a
loan outstanding to the Participant shall not be taken into account for
purposes of determining the amount of the Account balances payable at the time
of death or distribution of the Participant, but only if the reduction is used
as repayment of the loan.  If less than
one hundred percent (100%) of the Participant’s Vested Benefit (determined
without regard to the preceding sentence) is payable to the surviving spouse,
then the Vested Benefit shall be adjusted by first subtracting the amount of
the security used as repayment of the loan, and then determining the benefit
payable to the surviving spouse.

 

5.                                       Each loan shall
bear interest at a reasonable rate to be fixed by the Administrator.  The Administrator shall not discriminate
among Participants as to interest rates, but loans granted at different times
may bear different interest rates if, in the opinion of the Administrator, the
difference in rates is justified by a change in general economic
conditions.  In determining the interest
rate, the Administrator shall take into consideration interest rates currently
being charged by local commercial lenders on secured loans bearing similar
terms and maturities.

 

6.                                       In the event
any loan made to a Participant is outstanding at the time a distribution is to
be made to the Participant or former Participant or his Beneficiary, and the
loan documents so provide, the entire principal amount outstanding and accrued interest
thereon shall become due and payable on the date established for the
distribution.

 

7.                                       In the event of
default, attachment of the pledged portion of a Participant’s right, title and
interest in and to the Trust Fund shall not occur until the time a distribution
may be made to the Participant, former Participant, or his Beneficiary.

 

8.                                       No loan to any Participant
may be made to the extent that the loan, when added to the outstanding balance
of all other loans to the Participant, would exceed the lesser of (a) $50,000
reduced by the highest balance of all loans to the Participant outstanding in
the preceding twelve (12) months, or (b) one-half (2) the present
value of the Vested Benefit of the Participant. 
For purposes of the above limitation, all loans from all

 

43

 

plans of the Employer and other Participants of a group of employers
described in Sections 414(b), 414(c), 414(m), and 414(o) of the Code are
aggregated.  Furthermore, any loan shall
by its terms require repayment through level installments of principal and
interest, not less frequently than quarterly, within five (5) years (up to
ten (10) years in the case of a loan used to acquire a dwelling unit which
within a reasonable time (determined at the time the loan is made) will be used
as the principal residence of the Participant). 
An assignment or pledge of any portion of the Participant’s interest in
the Plan will be treated as a loan under this paragraph.

 

C.                                     Allocation of
Gain or Loss on Loan. 
Notwithstanding any other provision of this Plan to the contrary, all
income, gain, expenses or loss related to a Participant loan shall be allocable
solely to the Participant’s Account(s) and shall be accounted for in the
same manner as Participant-directed investments.

 

ARTICLE XIII

AMENDMENT

 

A.                                   Amendment by
Principal Employer.

 

1.                                       Except as
provided below, the Principal Employer may amend the Plan at any time without
the consent of any Participant, former Participant, Beneficiary, other Employer
or other person.

 

2.                                       No amendment to the Plan
shall cause any assets of the Plan to revert to the Employer, decrease a
Participant’s Accrued Benefit or eliminate an optional form of benefit, within
the meaning of Code Section 411(d)(6), with respect to benefits
attributable to service before the amendment. 
Furthermore, if the Plan’s vesting schedule is amended, the amendment
shall not reduce the Vested Benefit of any Participant below the Vested Benefit
that existed prior to the amendment, calculated as of the later of the date
such amendment is adopted or the date it becomes effective.

 

3.                                       If the vesting
schedule of the Plan is amended, or the Plan is amended in any way that affects
directly or indirectly the computation of a Participant’s non-forfeitable percentage
of his Accrued Benefit under the Plan, or if the Plan is deemed amended by an
automatic change to or from a top-heavy vesting schedule, then any Participant
who has completed three (3) Years of Service for vesting purposes with the
Employer before the expiration of the election period may elect to have the
non-forfeitable percentage of his Accrued Benefit under the Plan determined
under the vesting schedule in effect before the amendment or change.  The election period shall commence on the
date the amendment is adopted and shall end on the latest of (i) sixty
(60) days after the amendment is adopted, (ii) sixty (60) days after the
amendment becomes effective, or (iii) sixty (60) days after the
Participant is issued written notice of the amendment by the Employer or
Administrator.  The election shall be in
the form prescribed by the Administrator and shall be effective only when
executed and filed with the Administrator by the Participant.

 

B.                                     Notice.  Notice of any amendment to the Plan shall be
given to interested parties as required by the Code and ERISA.

 

ARTICLE
XIV

TERMINATION

 

A.                                   Termination by
Principal Employer.

 

1.                                       The Principal
Employer may terminate the Plan at any time. 
The Principal Employer shall give written notice to the Administrator
and Trustee as soon as practicable after a determination to terminate is
made.  The termination of the Plan shall
be effective on such date within the Plan Year in which termination occurs or
any succeeding Plan Year as may be determined by the Principal Employer and set
forth in the notice.

 

44

 

2.                                       Upon complete
termination or upon partial termination of the Plan, all Accrued Benefits of
each affected Participant shall become Vested Benefits, and the Trustee shall
accrue as a liability a reserve in such amount as may be directed by the
Administrator to provide for the cost, fees and expenses of the Trustee and of
Plan administration from the date of complete or partial termination to final
distribution of the Trust Fund, or affected portion of the Trust Fund, as the
case may be.  The Vested Benefit of each
Participant and the amount due any Beneficiary to whom benefits are currently
payable shall be segregated and held, handled and disposed of as provided in Article
VI or VII (as applicable) in the same manner as the Vested Benefit of a former
Participant, except that the Administrator shall direct the Trustee as to the
timing and method of distributing accounts under Article VI or VII.  If the expense reserve which is accrued is
exhausted, income from the remaining Plan funds may be applied to such expenses
ratably from each Account.

 

3.                                       If the
Employers fail to make contributions for periods and in amounts substantial
enough to reflect its intent to continue the Plan, then, to the extent that
such failure constitutes, under the circumstances then prevailing, a complete
discontinuance of contributions, the Plan shall terminate.  Termination under such circumstances shall be
effective on the last day of the Plan Year following the year with respect to
which the last substantial contribution was made.

 

4.                                       Upon
termination of the Plan by reason of complete discontinuance of contributions,
benefits shall be determined and distributed as provided in Article XIV C
3 above; provided, however, that if any distributions to former Participants or
other transactions with the Participants’ or former Participants’ accounts are
made after termination of the Plan, but before notice to the Administrator of a
determination of the complete discontinuance of contributions, then the
Administrator shall make such retroactive adjustments as it deems equitable to
most nearly reflect the Vested Benefit of each Participant on the termination
date, but no refund of any amounts distributed by the Trustee prior to notice
to the Administrator of termination shall be required of any Participant or
Beneficiary.

 

B.                                     Notice.  Notice of termination of the Plan under the
foregoing provisions shall be given to interested parties as required by the Code
and ERISA.

 

ARTICLE XV

PREDECESSOR PLANS

 

All
Participants of the Predecessor Plan immediately before the Effective Date will
continue as Participants of this Plan. 
The Accrued Benefit of a Participant or former Participant of the
Predecessor Plan immediately before the Effective Date shall be the opening
Accrued Benefit under this Plan.  Any
amounts being paid to a former Participant or Beneficiary under the Predecessor
Plan shall continue to be paid under the terms of that plan.  Any Beneficiary designation in effect under
the Predecessor Plan immediately before the Effective Date shall be deemed a
Beneficiary designation under this Plan until that designation is revoked or a
new one is made under this Plan.

 

ARTICLE
XVI

TOP-HEAVY PROVISIONS

 

If the plan is or becomes Top-Heavy in any
Plan Year, the provisions of this Article will supersede any conflicting
provision in this Plan document.

 

A.                                   Definitions.  The following definitions shall apply with
respect to the Top-Heavy provisions of this Article, unless a different meaning
is required by the context:

 

45

 

1.                                       Compensation.  For
purposes of computing Employer contributions and minimum allocations in a year
the Plan is a Top-Heavy Plan (but not for purposes of Article IV E),
Compensation shall mean compensation as defined in Article I of the Plan;
provided, however, that Compensation for any Employee for those purposes during
such year shall not exceed $200,000 or such larger amount as may be prescribed
by the Secretary of the Treasury or his delegate.

 

2.                                       Determination Date.  For
any Plan Year subsequent to the first Plan Year, the last day of the preceding
Plan Year.  For the first Plan Year of
the Plan, the last day of that Plan Year.

 

3.                                       Key Employee.  Any Employee or former Employee (including a
deceased Employee) who at any time during the Plan Year containing the Determination Date was (a) an officer of
the Employer having annual Compensation in excess of $130,000 (as adjusted
under Code Section 416(i) after December 31, 2002); (b) a
five-percent owner of the Employer; or (c) a one-percent owner of the Employer
with annual Compensation of more than $150,000. 
For this purpose, “Compensation” means compensation as defined in Section 415(c)(3) of
the Code.  The determination of who is a
Key Employee will be made in accordance with Code Section 416(i) and
the Regulations and other generally applicable guidance issued thereunder.

 

4.                                       Permissive Aggregation Group.  The
Required Aggregation Group of the Plan plus any other plan or plans of the
Employer which, when considered as a group with the Required Aggregation Group,
would continue to satisfy the requirements of Sections 401(a)(4) and 410
of the Code.

 

5.                                       Present Value.  In the case of a defined benefit plan, the
present value of a Participant’s accrued benefit will be determined under that
plan’s interest and mortality assumptions for valuing lump sum
distributions.  In the case of this Plan
or any other defined contribution plan, the account balances of a Participant
are one hundred percent of the Participant’s accrued benefit.  In determining present values and account
balances as of any Determination Date the following rules will apply.  First, the present value of any accrued
benefit and account balance will be increased by any distribution made to the
Participant under this Plan or any aggregated plan during the one-year period
ending on the Determination Date.  The
prior sentence will also apply to distributions under terminated plans during
the one-year period that would have been aggregated with this Plan under Section 416(g)(1)(A)(i) of
the Code.  Second, in the case of any
distribution made for a reason other than death, disability or Separation from
Service, five-years will be substituted for one-year for purposes of this
provision.  Third, the accrued benefits and
account balances of any Participant who has not performed services for the
Employer during the one-year period ending on the Determination Date shall be
disregarded.

 

6.                                       Required Aggregation Group.  (a) 
Each qualified plan of the Employer in which at least one Key Employee
participates or participated at any time during the Determination Period
(regardless of whether the plan has terminated), and (b) any other
qualified plan of the Employer which enables a plan described in (a) to
meet the requirements of Sections 401(a)(4) or 410 of the Code.

 

7.                                       Top-Heavy Plan.  For
any Plan Year beginning after December 31, 1983, this Plan is Top-Heavy if
any of the following conditions exists:

 

(a)                                  If the Top-Heavy Ratio for this Plan exceeds
sixty percent (60%) and this Plan is not part of any Required Aggregation Group
or Permissive Aggregation Group.

 

(b)                                 If this Plan is a part of a Required
Aggregation Group but not part of a Permissive Aggregation Group and the
Top-Heavy Ratio for the Required Aggregation Group exceeds sixty percent (60%).

 

(c)                                  If this Plan is a part of a Required
Aggregation Group and part of a Permissive

 

46

 

Aggregation
Group of plans and the Top-Heavy Ratio for both groups exceeds sixty percent
(60%).

 

8.                                       Top-Heavy Ratio.

 

(a)                                  If the Employer maintains one or more defined
contribution plans (including any Simplified Employee Pension Plan) and the
Employer has not maintained any defined benefit plan which during the five (5) year
period ending on the Determination Date has or has had accrued benefits, the
Top-Heavy Ratio for this Plan alone or for the Required or Permissive
Aggregation Group, as appropriate, is a fraction, the numerator of which is the
sum of the account balances of all Key Employees as of the Determination Date (including any part of any account balances
distributed in the five (5) year period ending on the Determination Date),
and the denominator of which is the sum of all account balances of all
Participants as of the Determination Date. 
Both the numerator and denominator of the Top-Heavy Ratio shall be
increased to the extent required under Section 416 of the Code to reflect
any contribution which is due, but unpaid as of the Determination Date.

 

(b)                                 If the Employer maintains one or more defined
contribution plans (including any Simplified Employee Pension Plan) and the
Employer also maintains or has maintained one or more defined benefit plans
which during the five (5) year period ending on the Determination Date has
or had any accrued benefits, the Top-Heavy Ratio is a fraction, the numerator
of which is the sum of the account balances under the defined contribution
plans for all Key Employees, determined in accordance with Article XVI A 8(a) above,
and the present value of accrued benefits under the aggregated defined benefit
plans for all Key Employees, as of the Determination Dates, and the denominator
of which is the sum of the account balances under the aggregated defined
contribution plans for all participants, determined in accordance with Article XVI
A 8(a) above, and the present value of accrued benefits under the defined
benefit plans for all participants as of the Determination Date.  Both the numerator and denominator of the
Top-Heavy Ratio are increased for any distribution of an account balance or an
accrued benefit made in the five (5) year period ending on the
Determination Date.

 

(c)                                  For purposes of Article XVI A 8(a) and
XVI A 8(b) above, the value of account balances and the present value of
accrued benefits will be determined as of the most recent Valuation Date that
falls within or ends with the twelve (12) month period ending on the
Determination Date, except as provided in Section 416 of the Code and the
Regulations thereunder for the first and second plan years of a defined benefit
plan.  The calculation of the Top-Heavy
Ratio, and the extent to which distributions, rollovers, and transfers are
taken into account will be in accordance with Section 416 of the Code and
the Regulations thereunder.  Deductible
employee contributions will not be taken into account for purposes of computing
the Top-Heavy Ratio.  When aggregating
plans, the value of account balances and accrued benefits will be calculated
with reference to the Determination Dates that fall within the same calendar
year.

 

The Accrued Benefit of any non-Key Employee
shall be determined under:  (1) the
method, if any, that uniformly applies for accrual purposes under all defined
benefit plans maintained by Employer; or (2) if there is no such method,
as if such benefit accrued no more rapidly than the slowest accrual rate
permitted under the fractional rule of Section 411(b)(1)(C) of
the Code.

 

9.                                       Valuation Date.  With
respect to any Plan Year, the last day of the preceding Plan Year.

 

B.                                     Minimum Contributions and Allocations.

 

1.                                       Except as otherwise provided in Article XVI
B 2 below, for any Plan Year in which the Plan is top-heavy, the Employer
contributions (including available Forfeitures) made and allocated on behalf of
any Participant who is not a Key Employee shall not be less than the lesser of:
(a) three percent (3%) of such Participant’s Compensation; or (b) if
the Employer has no defined benefit plan which designates this Plan to satisfy Section 401
of the Code, the largest percentage of Employer Contributions (including
available Forfeitures),

 

47

 

expressed
as a percentage of the first $200,000 of any Key Employee’s Compensation,
allocated on behalf of any Key Employee for that year.  The minimum contribution and allocation shall
be determined without regard to any Social Security contribution.  Salary
Reduction Contributions shall not be taken into account for purposes of
satisfying the top-heavy minimum contribution and allocation rule.  The minimum contribution and
allocation shall be made even though, under other Plan provisions, the
Participant would not otherwise be entitled to receive an allocation, or would
have received a lesser allocation for the Plan Year because of:  (a) the Participant’s failure to
complete 1,000 Hours of Service (or any equivalent or other period provided in
the Plan); (b) the Participant’s failure to contribute to the Plan; or (c) the
Participant earning Compensation less than a stated amount.

 

2.                                       Article XVI B 1 above shall not apply to
any Participant who was not employed by the Employer on the last day of the
Plan Year.  Article XVI B 1 above
also shall not apply to any Participant to the extent the Participant is
covered under any other plan or plans of the Employer if the Employer has
provided in the minimum allocation or benefit requirement applicable to
Top-Heavy Plans in the other plan or plans.

 

3.                                       Any minimum contribution and allocation
required hereunder may not be forfeited to the extent required to be
nonforfeitable under Section 416 (b) of the Code.

 

ARTICLE
XVII

MISCELLANEOUS

 

A.                                   Right to Trust Assets. 
Neither the creation of the Plan, nor the creation of any fund or
Accounts, nor the payment of benefits hereunder shall be construed as giving
any legal or equitable right to any Employee, Participant or other person
against the Employer or the Principal Employer, or their officers or employees,
or against the Trustee, except as expressly provided herein, and all such
rights under the Plan shall be satisfied, if at all, only out of the Trust Fund
held by the Trustee.

 

B.                                     No Guarantee of Employment. 
Participation in the Plan shall not give any Participant any right to be
retained in the employ of the Employer, and the Employer retains the right to
hire and discharge any Employee at any time, with or without cause, as if the
Plan had never been adopted, and any discharged Participant shall have only
such rights or interests in the Trust Fund as are specified herein.

 

C.                                     Spendthrift/Qualified Domestic Relations
Orders.

 

1.                                       The interests of each Participant and
Beneficiary under the Plan are not subject to the claims of their creditors and
may not, in any way, be assigned, alienated or encumbered.  The preceding sentence shall also apply to
the creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order, unless such
order is determined to be a “qualified domestic relations order” (“QDRO”), as
defined in Section 414(p) of the Code.

 

2.                                       Any provision herein to the contrary notwithstanding,
all rights and benefits, including elections, provided to a Participant in this
Plan shall be subject to the rights afforded to any “alternate payee” under a
QDRO.  Furthermore, a distribution to an “alternate
payee” shall be permitted if such distribution is authorized by a QDRO, even if
the affected Participant has not Separated from Service and has not reached the
“earliest retirement age” under the Plan. 
For the purposes of this Section, “alternate payee,” “QDRO,” and “earliest
retirement age” shall have the meaning set forth under Code Section 414(p).

 

D.                                    Number and Gender.  The
singular shall be read as the plural wherever the context requires.  The masculine pronoun has been used in the
Plan in its generic sense to include all humankind, both male and female.

 

48

 

E.                                      Conclusiveness of Records.  The
records of the Employer with respect to age, service, Compensation and all
other relevant matters shall be conclusive for purposes of the administration
of the Plan.

 

F.                                      Controlled Groups/Owner-Employee
Control/Affiliated Service Groups/Predecessor Employer/Leased Employees.

 

1.                                       All Employees of all corporations which are
members of a controlled group of corporations (as defined in Section 414(b) of
the Code) of which the Principal Employer is a Participant, all Employees of
all trades or businesses (whether or not incorporated) which are under common
control (as defined in Section 414(c) of the Code) with the Principal
Employer, all Employees of all members of an affiliated service group (as
defined in Section 414(m) of the Code) that includes the Principal
Employer, and all individuals deemed Employees of an Employer under Section 414(o) of
the Code will be treated as employed by the Principal Employer.  The ability of any deemed employees to
participate in the Plan is limited as provided in Article II A above.

 

2.                                       Any Leased Employee shall be treated as an
employee of the recipient Employer but shall not be eligible to participate in
the Plan on the same terms as other employees.

 

3.                                       The computation of Years of Service,
Compensation, contributions and allocations shall be adjusted as required to
comply with the requirements of Code Section 414(o) applicable to
shared employees.

 

G.                                     Successor Employer.  In
the event of the merger, consolidation or sale of assets of the Principal
Employer, under circumstances in which a successor shall continue and carry on
all or a substantial part of the business of the Employer and shall employ a
substantial number of Employees of the Principal Employer and shall elect to
continue this Plan, the successor shall be substituted for the Principal
Employer under the terms and provisions of this Plan upon filing its written
election to that effect with the Trustee and the Administrator and all service
for the Employers shall be treated as service for the successor Employer.

 

H.                                    Plan Merger.

 

In the case of any merger or consolidation
with, or transfer of assets or liabilities to, any other plan, the terms of
such merger, consolidation or transfer shall be such that each Participant
would (if the Plan then terminated) receive a benefit immediately after the
merger, consolidation or transfer which is equal to or greater than the benefit
he would have been entitled to receive immediately before the merger,
consolidation or transfer (if the Plan had then terminated).

 

I.                                         Payment of Expenses.  The
Principal Employer may, but does not obligate itself to, pay all or part of the
expenses of administration of the Plan, including the compensation and expenses
of the Trustee, the expenses of the Administrator, and any other expenses
incurred at the direction of the Administrator. 
To the extent that any of such expenses are not paid by the Principal
Employer, such expenses shall be paid by Trustee out of the Trust Fund.

 

J.                                        Governing Law.  This
Plan shall be governed, construed, administered and regulated in all respects
under the laws of the State of Utah, to the extent not preempted by ERISA.

 

49

 

ARTICLE XVIII

PRINCIPAL EMPLOYER AND ASSOCIATED EMPLOYERS

 

A.                                   Application.

 

The
provisions contained in this Article shall take precedence over any
contrary provision of the Plan.

 

B.                                     Participation by Associated Employers.

 

The
Principal Employer may, effective as of any date, permit an entity or
individual which is related to the Principal Employer under Section 414(b),
(c), or (m) of the Code to participate in the sponsorship of the Plan as
an Associated Employer.  As a condition
to the participation of an Associated Employer in the Plan, the Principal
Employer shall give notice of the Associated Employer’s co-sponsorship to the
Trustee and the Administrator, and the Associated Employer shall by appropriate
board resolution and execution of an agreement to adopt the Plan for its
eligible Employees.

 

C.                                     Status of Associated Employers.

 

An
Associated Employer shall be considered an Employer for all purposes under the
Plan except that all rights, authority and discretionary powers reserved to the
Employer under Articles VIII through XVII of the Plan shall be exercisable
solely by the Principal Employer (or its designee), and the Principal Employer
shall be considered the sole Employer for purposes of any other Plan provision
requiring or permitting designations, elections, appointments or other
discretionary decisions or actions by the Employer including, the determination
of the amount of Profit-Sharing and Non-Qualified Matching Contributions, if
any, to be made by each Employer pursuant to Article III of the Plan).

 

D.                                    Transfer of Employment.

 

An
Employee’s transfer of employment, without interruption, between Employers
which have adopted the Plan shall not constitute a termination of the Employee’s
service with an Employer under the Plan. Hours of Service credited to a
transferring Employee in a single Plan Year by each Employer shall be
aggregated for all purposes by the Plan Administrator.  The Compensation paid by each Employer to a
Participant in a single Plan Year shall not be aggregated for any purpose other
than as required under the Code.

 

E.                                      Simultaneous Employment.

 

An
Employee may be employed simultaneously by more than one Employer.  The rules set forth in Section D of
this Article shall also apply to simultaneous employments.

 

F.                                      Termination of Participation by Associated
Employer.

 

1.                                       The Principal Employer may terminate the
co-sponsorship of this Plan of any Associated Employer upon giving written
notice to the Associated Employer, the Administrator and the Trustee.  The termination shall be effective upon the
date specified in the notice.

 

2.                                       Upon the termination of an Associated
Employer’s co-sponsorship of and participation in the Plan, the Associated
Employer shall elect whether or not to continue a single employer plan for its
Employees.

 

3.                                       If an Associated Employer elects to continue
in effect a qualified plan and trust for its employees, the Associated Employer
shall, effective as of the effective date of the termination of participation,
establish a qualified plan for the Participants, former Participants, and
Beneficiaries affected by the withdrawal and execute a separate trust agreement
appointing a successor trustee, which may be the Trustee.  The Trustee shall, upon receipt of a notice of
the appointment of a successor trustee, deliver to the successor trustee assets
in

 

50

 

the amount of the Accrued Benefits of the Associated Employer’s
Employees after reserving such reasonable amount of money as it shall deem
necessary to provide for its expenses in the settlement of its account, the
amount of any compensation due to it, and any sums chargeable against those
Accrued Benefits, and shall render a complete accounting for the period since
the last accounting.  If the sums so
reserved are not sufficient for such purposes, the Trustee shall be entitled to
reimbursement for any deficiency, first from the successor trustee to the
extent of the fund, and then, for any remaining deficiency, from the Associated
Employer.  The Vested Benefit of each
Participant and the amount due any Beneficiary to whom benefits are currently
payable shall be segregated and held, handled and disposed of as provided in
Articles VI or VII, and the Administrator shall direct the Trustee as to the
distribution of the Segregated Account. 
If the expense reserve which is accrued is exhausted, income from the
Segregated Fund may be applied to such expenses ratably from each account.

 

4.                                       If an Associated Employer elects not to
continue a qualified plan and trust for its employees, then Article XVIII
C of the Plan shall be applicable to the Accrued Benefits of Participants
employed by the Associated Employer.

 

IN WITNESS WHEREOF, the Principal Employer
has caused this Plan document to be executed by its duly authorized officer
this 31ST day of
December, 2009.

 

 

	
   

  	
  MERIT MEDICAL SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rashelle Perry

  
	
   

  	
  Its:

  	
  Chief Legal Officer

  
	
   

  	
  Name:

  	
  Rashelle Perry

  
				

 

51ex4_4.htm

    
      

    

    
      Exhibit
4.4

      

      _______________

      

      Amendment
of Warrant Agreement

      

      Dated as
of ______________, 2010

      

      _______________

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      THIS
AMENDMENT OF WARRANT AGREEMENT (“Amendment”), dated as of ______________, 2010,
between BioTime, Inc., a California corporation (the “Company”), and American
Stock Transfer & Trust Company (“Warrant Agent”), for the benefit of each
Holder, amends that certain Warrant Agreement dated December 9, 2003, as amended
by that certain Amendment of Warrant Agreement dated October 27, 2005 (the
“Agreement”).

      

      The
Company proposes to permit Holders to exercise up to 3,000,000 Warrants, in the
aggregate, at a discounted exercise price of $1.70 per Warrant Share until 5:00
p.m. on _________, 2010.

      

      In
consideration of the foregoing and for the purpose of defining the terms and
provisions of the Warrants and the respective rights and obligations thereunder
of the Company and each Holder, the Company agrees that the Agreement is amended
by as follows:

      

      Section
1.              
Definitions.  Unless
otherwise defined in this Amendment, all capitalized terms have the meaning
ascribed to them in the Agreement.

      

      (a)           “Discount
Offer” means the Company’s offer to permit up to 3,000,000 Warrants to be
exercised by Holders at the Discount Offer Warrant Price during the Discount
Offer Period.

      

      (b)           "Discount
Offer Expiration Date" means __________, 2010 or such other date as the Company
may determine.

      

      (c)           "Discount
Offer Period" means the period commencing on _______, 2010 and ending at 5:00
p.m. New York time on the Discount Offer Expiration Date.

      

      (d)           “Discount
Offer Warrant Price” means $1.70 per Warrant Share.

      

      (e)           "Prospectus"
means the Company's prospectus, dated _________, 2010, pertaining to the
Warrants, as the same may from time to time be supplemented or
amended.

      

      Section
2.            
  Discount
Offer.  The following provisions shall apply with respect to
the exercise of Warrants during the Discount Offer Period only.

      

      (a)           Discount Offer Warrant
Price.  Subject to any adjustments required by Section 10,
during the Discount Offer Period the Warrant Price shall be the Discount Offer
Warrant Price.

      

      (b)           Maximum Number of Warrant
Shares Issuable at Discount Warrant Price; Proration.  During
the Discount Offer Period, Holders may exercise, in the aggregate, up to a total
of 3,000,000 Warrants to purchase, in the aggregate, up to 3,000,000 Warrant
Shares, at the Discount Offer Warrant Price.  All exercises of the
Warrants at the Discount Offer Warrant Price will be subject to proration if
more than 3,000,000 Warrants are exercised in the Discount Offer.  All
Warrants received by the Warrant Agent for exercise in the Discount Offer will
be held by the Warrant Agent until the Warrant Agent determines the total number
of Warrants received that have been exercised properly in the Discount Offer
Period.  If the total number of Warrants that have been exercised
properly in the Discount Offer Period exceeds 3,000,000, the Warrant Agent will
allocate 3,000,000 Warrant Shares among the Holders who properly exercised
Warrants in the Discount Offer.  Such allocation shall be made on a
pro rata basis, based upon the number of Warrants properly exercised by each
Holder and the total number of Warrants properly exercised by all Holders in the
Discount Offer.  The Warrant Agent will deposit all checks and other
funds received by it for the payment of the Discount Offer Warrant Price in the
Discount Offer into a segregated interest-bearing account of the Company pending
proration and distribution of Warrant Shares.  The interest earned on
the account will belong to the Company.  Any funds received by the
Warrant Agent from a Holder in excess of the aggregate Discount Offer Warrant
Price payable for the Warrants Shares allocated to the Holder in the Discount
Offer will be returned to the Holder without interest or
deduction.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      (c)           Notice of Guaranteed
Delivery. A Warrant will be accepted for exercise during the Discount
Offer Period if prior to 5:00 p.m. New York City time on the Discount Offer
Expiration Date the Warrant Agent has received a notice of guaranteed delivery
by facsimile (telecopy) or otherwise from a bank, trust company, or New York
Stock Exchange member guaranteeing delivery of (i) payment of the full Discount
Offer Warrant Price for the Warrant Shares to be purchased through exercise of
the Warrants, and (ii) a properly completed and executed Warrant
Certificate.  The Warrant Agent will not honor a notice of guaranteed
delivery unless a properly completed and executed Warrant Certificate and full
payment for the Warrant Shares is received by the Warrant Agent by the close of
business on the third business day after the Discount Offer Expiration
Date.

      

      (d)           Number of Warrants Deemed
Exercised.  If during the Discount Offer Period a Holder does
not indicate the number of Warrant Shares being purchased through the exercise
of Warrants, or does not deliver full payment of the Discount Offer Warrant
Price for the number of Warrant Shares indicated as being purchased through the
exercise of Warrants, then such Holder will be deemed to have exercised Warrants
to purchase the maximum number of Warrant Shares determined by dividing (x) the
total Discount Offer Warrant Price so paid, by (y) the Discount Offer Warrant
Price per Warrant Share; provided, that such number shall not exceed the maximum
number of Warrant Shares that may be purchased through the exercise of the
Warrant Certificate delivered to the Warrant Agent.

      

      (e)           Payment by Wire
Transfer.  The Warrant Agent may accept payment by wire
transfer if arrangements satisfactory to the Warrant Agent and the Company are
made by the Holder.

      

      (f)          
 Termination;
Extension; Modification of Discount Offer.  The Company may, in
its sole discretion, upon notice to the Warrant Agent: (a) terminate the
Discount Offer; (b) extend the Discount Offer Expiration Date to a later date;
or (c) amend or modify the terms of the Discount Offer.

      

      Section
3.              Delivery of Prospectus and
Other Documents.  The Warrant Agent shall deliver a Prospectus,
a letter from the President of the Company to the Holders, a return envelope
addressed to the Warrant Agent, and such other documents and information as the
Company may provide concerning the Discount Offer.  The Warrant Agent
shall also provide copies of the Prospectus and other documents prepared by the
Company to Holders and other persons upon request.

      

      (a)           The
Company will provide the Warrant Agent with a sufficient number of Prospectuses
as the Warrant Agent may require.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (b)           The
Company has provided to the Warrant Agent the following documents that the
Warrant Agent shall deliver to brokers, dealers, commercial banks, trust
companies and other nominee holders of Warrants: (i) a letter to Brokers,
Dealers, Commercial Banks, Trust Companies and Other Nominees; (ii) a letter to
the clients of nominee holders described in clause (i); and (iii) a Notice of
Guaranteed Delivery.

      

      Section
4.              Notices; Principal
Office.  Any notice pursuant to the Agreement, as amended
hereby, by the Company or by any Holder to the Warrant Agent, or by the Warrant
Agent or by any Holder to the Company, shall be in writing and shall be
delivered in person, or mailed first class, postage prepaid (a) to the Company,
at its office, Attention: Secretary or (b) to the Warrant Agent, at its offices
as designated at the time the Warrant Agent is appointed.  The address
of the principal office of the Company is 1301 Harbor Bay Parkway, Suite 100,
Alameda, California 94502.  Any notice mailed pursuant to the
Agreement, as amended hereby, by the Company or the Warrant Agent to the Holders
shall be in writing and shall be mailed first class, postage prepaid, or
otherwise delivered, to such Holders at their respective addresses on the books
of the Company or the Warrant Agent, as the case may be.  Each party
hereto and any Holder may from time to time change the address to which notices
to it are to be delivered or mailed hereunder by notice to the other
party.

      

      Section
5.              Effect of
Amendment.  Except as amended hereby, all provisions of the
Agreement shall remain in full force and effect.

      

      IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed, all as of the day and year first above written.

      

      
        	 
      	
                BIOTIME,
      INC.

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	
                Name:

              	 
      	 
      
	 
      	
                Title:

              	 
      	 
      

      

      

      Attest:

      

      
        	
                By:

              	 
      	 
      
	 
      	
                Name:
      Judith Segall

              	 
      
	 
      	
                Title:
      Secretary

              	 
      

      

      

      
        	 
      	
                AMERICAN
      STOCK TRANSFER & TRUST COMPANY

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	
                Name:

              	 
      	 
      
	 
      	
                Title:

              	 
      	 
      

      

       

    

     

    3

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