Document:

Exhibit
4.1

 

REGIS CORPORATION, as Issuer

 

and

 

WELLS FARGO BANK, N.A., as Trustee

 

 

 

INDENTURE

 

Dated as of July 14, 2009

 

 

 

5% Convertible Senior Notes due 2014

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
  Section 1.02.

  	
  Other Definitions

  	
  8

  
	
  Section 1.03.

  	
  Trust Indenture Act Provisions

  	
  9

  
	
  Section 1.04.

  	
  Rules of Construction

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Form and Dating

  	
  10

  
	
  Section 2.02.

  	
  Execution and Authentication

  	
  12

  
	
  Section 2.03.

  	
  Registrar, Paying Agent and Conversion Agent

  	
  13

  
	
  Section 2.04.

  	
  Paying Agent To Hold Money In Trust

  	
  13

  
	
  Section 2.05.

  	
  Conversion Agent To Hold Amounts In Trust

  	
  14

  
	
  Section 2.06.

  	
  Lists of Holders of Securities

  	
  14

  
	
  Section 2.07.

  	
  Transfer and Exchange

  	
  15

  
	
  Section 2.08.

  	
  Replacement Securities

  	
  16

  
	
  Section 2.09.

  	
  Outstanding Securities

  	
  16

  
	
  Section 2.10.

  	
  Treasury Securities

  	
  17

  
	
  Section 2.11.

  	
  Temporary Securities

  	
  17

  
	
  Section 2.12.

  	
  Cancellation

  	
  17

  
	
  Section 2.13.

  	
  Legend; Additional Transfer and Exchange
  Requirements

  	
  18

  
	
  Section 2.14.

  	
  CUSIP Numbers

  	
  19

  
	
  Section 2.15.

  	
  Calculations

  	
  20

  
	
  Section 2.16.

  	
  Payment of Interest; Interest Rights Preserved

  	
  20

  
	
  Section 2.17.

  	
  Computation of Interest

  	
  21

  
	
  Section 2.18.

  	
  Purchase of Securities In Open Market

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
  PURCHASE

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Repurchase at Option of Holders upon a Fundamental
  Change

  	
  21

  
	
  Section 3.02.

  	
  Withdrawal of Fundamental Change Repurchase Notice

  	
  24

  
	
  Section 3.03.

  	
  Deposit of Fundamental Change Repurchase Price

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  
	
  CONVERSION

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Right to Convert

  	
  26

  
	
  Section 4.02.

  	
  Conversion Procedures

  	
  28

  
	
  Section 4.03.

  	
  Settlement Upon Conversion

  	
  29

  

 

i

 

	
  Section 4.04.

  	
  Increased Conversion Rate Applicable to Securities
  Surrendered in Connection with Make-Whole Fundamental Changes

  	
  32

  
	
  Section 4.05.

  	
  Adjustment of Conversion Rate

  	
  34

  
	
  Section 4.06.

  	
  Effect of Reclassification, Consolidation, Merger or
  Sale

  	
  44

  
	
  Section 4.07.

  	
  Taxes on Shares Issued

  	
  46

  
	
  Section 4.08.

  	
  Reservation of Shares;
  Shares to be Fully Paid; Compliance With Governmental Requirements; Listing
  of Common Stock

  	
  46

  
	
  Section 4.09.

  	
  Responsibility of Trustee

  	
  46

  
	
  Section 4.10.

  	
  Notice to Holders Prior to Certain Actions

  	
  47

  
	
  Section 4.11.

  	
  Stockholder Rights Plans

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Payment of Securities

  	
  48

  
	
  Section 5.02.

  	
  Reports by Company

  	
  49

  
	
  Section 5.03.

  	
  Compliance Certificates

  	
  49

  
	
  Section 5.04.

  	
  Further Instruments and Acts

  	
  50

  
	
  Section 5.05.

  	
  Stay, Extension And Usury Laws

  	
  50

  
	
  Section 5.06.

  	
  Maintenance of Office or Agency

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
  CONSOLIDATION;
  MERGER; SALE OF ASSETS

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Company May Consolidate, Etc., Only on Certain
  Terms

  	
  51

  
	
  Section 6.02.

  	
  Successor Substituted

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  
	
  DEFAULT
  AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Events of Default

  	
  51

  
	
  Section 7.02.

  	
  Acceleration

  	
  53

  
	
  Section 7.03.

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
  55

  
	
  Section 7.04.

  	
  Trustee May File Proofs of Claim

  	
  56

  
	
  Section 7.05.

  	
  Trustee May Enforce Claims Without Possession
  of Securities

  	
  56

  
	
  Section 7.06.

  	
  Application of Money Collected

  	
  56

  
	
  Section 7.07.

  	
  Limitation
  on Suits

  	
  57

  
	
  Section 7.08.

  	
  Unconditional Right of Holders to Receive Payment
  and to Convert

  	
  58

  
	
  Section 7.09.

  	
  Restoration of Rights and Remedies

  	
  58

  
	
  Section 7.10.

  	
  Rights and Remedies Cumulative

  	
  58

  
	
  Section 7.11.

  	
  Delay or Omission Not Waiver

  	
  58

  
	
  Section 7.12.

  	
  Control by Holders

  	
  58

  
	
  Section 7.13.

  	
  Waiver of Past Defaults

  	
  59

  
	
  Section 7.14.

  	
  Undertaking for Costs

  	
  59

  
	
  Section 7.15.

  	
  Remedies Subject to Applicable Law

  	
  59

  

 

ii

 

	
  ARTICLE 8

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Duties of Trustee

  	
  60

  
	
  Section 8.02.

  	
  Notice of Default

  	
  61

  
	
  Section 8.03.

  	
  Certain Rights of Trustee

  	
  61

  
	
  Section 8.04.

  	
  Trustee Not Responsible for Recitals, Dispositions
  of Securities or Application of Proceeds Thereof

  	
  63

  
	
  Section 8.05.

  	
  Trustee and Agents May Hold Securities;
  Collections; etc.

  	
  63

  
	
  Section 8.06.

  	
  Money Held in Trust

  	
  63

  
	
  Section 8.07.

  	
  Compensation and Indemnification of Trustee and Its
  Prior Claim

  	
  63

  
	
  Section 8.08.

  	
  Conflicting Interests

  	
  64

  
	
  Section 8.09.

  	
  Trustee Eligibility

  	
  64

  
	
  Section 8.10.

  	
  Resignation and Removal; Appointment of Successor
  Trustee

  	
  65

  
	
  Section 8.11.

  	
  Acceptance of Appointment by Successor

  	
  66

  
	
  Section 8.12.

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
  66

  
	
  Section 8.13.

  	
  Preferential Collection of Claims Against Company

  	
  67

  
	
  Section 8.14.

  	
  Reports By Trustee

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Satisfaction and
  Discharge of the Indenture

  	
  67

  
	
  Section 9.02.

  	
  Deposited Monies to Be
  Held in Trust by Trustee

  	
  68

  
	
  Section 9.03.

  	
  Paying Agent to Repay
  Monies Held

  	
  68

  
	
  Section 9.04.

  	
  Return of Unclaimed Monies

  	
  68

  
	
  Section 9.05.

  	
  Reinstatement

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  
	
  AMENDMENTS;
  SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Without Consent of Holders

  	
  69

  
	
  Section 10.02.

  	
  With Consent of Holders

  	
  70

  
	
  Section 10.03.

  	
  Execution of Supplemental Indentures and Agreements

  	
  71

  
	
  Section 10.04.

  	
  Effect of Supplemental Indentures

  	
  71

  
	
  Section 10.05.

  	
  Conformity with Trust Indenture Act

  	
  71

  
	
  Section 10.06.

  	
  Reference in Securities to Supplemental Indentures

  	
  71

  
	
  Section 10.07.

  	
  Notice of Supplemental Indentures

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Conflict with Trust Indenture Act

  	
  72

  
	
  Section 11.02.

  	
  Notices

  	
  72

  
	
  Section 11.03.

  	
  Disclosure of Names and Addresses of Holders

  	
  73

  
	
  Section 11.04.

  	
  Compliance Certificates and Opinions

  	
  74

  
	
  Section 11.05.

  	
  Acts of Holders

  	
  74

  

 

iii

 

	
  Section 11.06.

  	
  Benefits of Indenture

  	
  75

  
	
  Section 11.07.

  	
  Legal Holidays

  	
  75

  
	
  Section 11.08.

  	
  Governing Law

  	
  76

  
	
  Section 11.09.

  	
  No Adverse Interpretation of Other Agreements

  	
  76

  
	
  Section 11.10.

  	
  No Personal Liability of Directors, Officers,
  Employees and Stockholders

  	
  76

  
	
  Section 11.11.

  	
  Successors and Assigns

  	
  76

  
	
  Section 11.12.

  	
  Multiple Counterparts

  	
  76

  
	
  Section 11.13.

  	
  Separability Clause

  	
  76

  
	
  Section 11.14.

  	
  Schedules and Exhibits

  	
  76

  
	
  Section 11.15.

  	
  Effect of Headings and Table of Contents

  	
  77

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Security

  	
  A-1

  
	
  Exhibit B

  	
  Form of Notice of Conversion

  	
  B-1

  
	
  Exhibit C

  	
  Form of Fundamental Change Repurchase Notice

  	
  C-1

  
	
  Exhibit D

  	
  Form of
  Assignment and Transfer

  	
  D-1

  

 

iv

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
  Indenture

  Section(s)

  
	
  Section

  	
   

  	
  310(a)(1)

  	
  8.09

  
	
   

  	
   

  	
  (a)(2)

  	
  8.09

  
	
   

  	
   

  	
  (a)(3)

  	
  N.A. **

  
	
   

  	
   

  	
  (a)(4)

  	
  N.A.

  
	
   

  	
   

  	
  (a)(5)

  	
  8.09

  
	
   

  	
   

  	
  (b)

  	
  8.08

  
	
   

  	
   

  	
  (c)

  	
  N.A.

  
	
  Section

  	
   

  	
  311(a)

  	
  8.13

  
	
   

  	
   

  	
  (b)

  	
  8.05

  
	
   

  	
   

  	
  (c)

  	
  N.A.

  
	
  Section

  	
   

  	
  312(a)

  	
  2.06

  
	
   

  	
   

  	
  (b)

  	
  11.03

  
	
   

  	
   

  	
  (c)

  	
  11.03

  
	
  Section

  	
   

  	
  313(a)

  	
  8.14 (a)

  
	
   

  	
   

  	
  (b)(1)

  	
  N.A.

  
	
   

  	
   

  	
  (b)(2)

  	
  8.14 (a)

  
	
   

  	
   

  	
  (c)

  	
  8.14 (a)

  
	
   

  	
   

  	
  (d)

  	
  8.14 (b)

  
	
  Section

  	
   

  	
  314(a)

  	
  5.02

  
	
   

  	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
   

  	
  (c)(1)

  	
  11.04

  
	
   

  	
   

  	
  (c)(2)

  	
  11.04

  
	
   

  	
   

  	
  (c)(3)

  	
  N.A.

  
	
   

  	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
   

  	
  (e)

  	
  11.04

  
	
   

  	
   

  	
  (f)

  	
  N.A.

  
	
  Section

  	
   

  	
  315(a)

  	
  8.01 (b)

  
	
   

  	
   

  	
  315(b)

  	
  8.02

  
	
   

  	
   

  	
  315(c)

  	
  8.01 (a)

  
	
   

  	
   

  	
  315(d)

  	
  8.01 (c)

  
	
   

  	
   

  	
  315(d)(2)

  	
  8.01 (c)

  
	
   

  	
   

  	
  315(d)(3)

  	
  8.01 (c)

  
	
   

  	
   

  	
  315(e)

  	
  7.14

  
	
  Section

  	
   

  	
  316(a) (last sentence)

  	
  2.10

  
	
   

  	
   

  	
  316(a)(1)

  	
  7.12, 7.13

  
	
   

  	
   

  	
  316(a)(2)

  	
  N.A.

  
	
   

  	
   

  	
  316(b)

  	
  7.08

  
	
   

  	
   

  	
  316(c)

  	
  11.05(e)

  
	
  Section

  	
   

  	
  317(a)

  	
  7.03, 7.04(a)

  
	
   

  	
   

  	
  317(b)

  	
  2.04

  
	
  Section

  	
   

  	
  318(a)

  	
  11.01

  
	
   

  	
   

  	
  318(c)

  	
  11.01

  

 

v

 

	
  *

  	
   

  	
  This Cross-Reference Table shall not, for any purpose, be deemed a
  part of this Indenture.

  
	
  **

  	
   

  	
  N.A. means Not Applicable.

  

 

vi

 

THIS
INDENTURE, dated as of July 14, 2009, is between Regis Corporation, a
corporation incorporated under the laws of the State of Minnesota (the “Company”),
and Wells Fargo Bank, N.A., as trustee (the “Trustee”).

 

In
consideration of the purchase of the Securities (as defined herein) by the
Holders thereof, the parties hereto agree as follows for the benefit of one
another and for the equal and ratable benefit of the Holders of the Company’s
5% Convertible Senior Notes due 2014.

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.          Definitions.

 

“Additional Interest” means all amounts, if any,
payable pursuant to Section 7.02(b) hereof.

 

“Affiliate”
means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person.  For
the purposes of this definition, “control” when used with respect to any Person
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Agent”
means any Registrar, Paying Agent or Conversion Agent.

 

“Applicable
Procedures” means, with respect to any conversion, transfer or exchange of
beneficial ownership interests in a Global Security, the rules and
procedures of the Depositary, to the extent applicable to such conversion,
transfer or exchange.

 

“Bankruptcy
Law” means Title 11, U.S. Code or any similar federal or state law for the
relief of debtors.

 

“Bid
Solicitation Agent” means initially the
Company.  The Company may, however,
appoint another Person (including the Trustee) as the Bid Solicitation Agent
without prior notice to the Holders of the Securities.

 

“Board
of Directors” means the board of directors of the Company or any duly
authorized committee of such board, or any equivalent body in a limited
partnership, limited liability company or other entity serving substantially
the same function as a board of directors of a corporation.

 

“Board
Resolution” means, with respect to any Person, a duly adopted resolution (or
other similar action) of the Board of Directors of such Person.

 

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a
day on which the banking institutions in New York City are authorized or
obligated by law or executive order to close or be closed.

 

1

 

“Capital
Stock” means, for any entity, any and all shares, equity interests, equity
participations or other equity equivalents of or equity interests in (however
designated) the equity of that entity, but excluding debt securities
convertible into such equity.

 

“Cash”
or “cash” means such coin or currency of the United States as at any time of
payment is legal tender for the payment of public and private debts.

 

“Cash Settlement Averaging Period” means, with respect
to any Security surrendered for conversion, the 20 consecutive Trading Day
period beginning on, and including, the third Trading Day immediately following
the Conversion Date for such Security; provided
that, with respect to any Conversion Date occurring during the
period beginning on, and including, April 15, 2014 and ending at the close
of business on the second Scheduled Trading Day immediately prior to the
Maturity Date, “Cash Settlement Averaging Period” means the 20 consecutive
Trading Day period beginning on, and including, the 22nd Scheduled Trading Day
prior to the Maturity Date.

 

“Certificated
Security” means a Security that is in substantially the form attached as Exhibit A
but that is not registered in the name of a Depositary or a nominee thereof and
does not include the information or the schedule called for by footnote 1
thereof.

 

“close of business” means 5:00 p.m. (New York
City time).

 

“Common Equity” of any Person means Capital Stock of
such Person that is generally entitled (a) to vote in the election of
directors of such Person or (b) if such Person is not a corporation, to
vote or otherwise participate in the selection of the governing body, partners,
managers or others that will control the management or policies of such Person.

 

“Common Stock” means the
shares of common stock, par value $0.05 per share, of the Company as they exist
on the date of this Indenture, subject to Section 4.06.

 

“Company”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Company.

 

“Company
Request” or “Company Order” means a written request or order signed in the name
of the Company by any one of its Chairman of the Board, its Chief Executive
Officer, its President, its Chief Operating Officer, its Chief Financial
Officer or a Vice President (regardless of Vice Presidential designation), and
by any one of its Treasurer, an Assistant Treasurer, any other Vice President
(regardless of Vice Presidential designation), its Secretary or an Assistant
Secretary, and delivered to the Trustee.

 

“Conversion Obligation” means the obligation of the
Company to deliver amounts owing upon conversion in accordance with the
provisions of Article 4 hereof.

 

“Conversion
Price” means as of any date, $1,000, divided
by the Conversion Rate as of such date.

 

2

 

“Conversion
Rate” means, initially, 64.6726 shares of Common Stock per $1,000 principal
amount of Securities, subject to adjustment as set forth herein.

 

“Corporate
Trust Office” means the office of the Trustee at which at any particular time
its corporate trust business shall be principally administered, which office at
the date hereof is located at MAC N9311-110 625 Marquette Ave., 11th Floor
Minneapolis, MN 55479, Attention: Corporate Trust Services, or such other
address as the Trustee may designate from time to time by notice to the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Company).

 

“Daily
Conversion Value” means, for each of the 20 consecutive Trading Days during the
Cash Settlement Averaging Period, one-twentieth (1/20th) of the product of (a) the
then-applicable Conversion Rate on such Trading Day and (b) the Daily VWAP
of the Common Stock on such Trading Day.

 

“Daily
Measurement Value” is equal to the Specified Dollar Amount, divided by 20.

 

“Daily
Settlement Amount,” for each of the 20 consecutive Trading Days during the Cash
Settlement Averaging Period, shall consist of:

 

(a)           cash equal to the lesser of the Daily Measurement Value
and the Daily Conversion Value for such Trading Day; and

 

(b)           to the extent the Daily Conversion Value for such Trading
Day exceeds the Daily Measurement Value, a number of shares of Common Stock
equal to the Daily Share Amount.

 

“Daily
Share Amount,” with respect to each of the 20 consecutive Trading Days during
the Cash Settlement Averaging Period, means, to the extent the Daily Conversion
Value exceeds the Daily Measurement Value, (i) the difference between the
Daily Conversion Value and the
Daily Measurement Value, divided by (ii) the
Daily VWAP of the Common Stock for such Trading Day.

 

“Daily
VWAP” for the Common Stock, in respect of any Trading Day, means the per share
volume-weighted average price on the New York Stock Exchange as displayed under
the heading “Bloomberg VWAP” on Bloomberg page “RGS.N <equity> AQR”
(or its equivalent successor if such page is not available) in respect of
the period from the scheduled opening of trading until the scheduled close of
trading of the primary trading session on such Trading Day (or if such
volume-weighted average price is unavailable, the market value of one share of
the Common Stock on such Trading Day as determined by the Board of Directors in
a commercially reasonable manner, using a volume-weighted average price method)
and will be determined without regard to after hours trading or any other
trading outside of the regular trading session.

 

“Default”
means any event that is, or after notice or passage of time or both would be,
an Event of Default.

 

3

 

“Ex-Dividend Date” means, with respect to any
issuance, dividend or distribution in which the holders of Common Stock (or
other security) have the right to receive any cash, securities or other
property, the first date upon which the shares of Common Stock (or other
security) trade on the applicable exchange or in the applicable market, regular
way, without the right to receive the issuance, dividend or distribution in
question.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

 

“Fundamental
Change” means the occurrence after the original issuance of the Securities of
any of the following events:

 

(a)           any “person” or “group” (within the meaning of Section 13(d) of
the Exchange Act) other than the Company or its Subsidiaries or any of their
respective employee benefit plans files a Schedule TO or any schedule,
form or report under the Exchange Act disclosing that such person or group has
become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3
under the Exchange Act, of the Company’s Common Equity representing more than
50% of the voting power of the Company’s Common Equity;

 

(b)           consummation of any binding share exchange, exchange
offer, tender offer, consolidation or merger of the Company pursuant to which
the Common Stock will be converted into cash, securities or other property or
any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets of the
Company and its Subsidiaries, taken as a whole, to any Person other than one or
more of the Company’s Subsidiaries; (any such exchange, offer, consolidation,
merger, sale, lease or other transfer transaction or series of transactions
being referred to herein as an “event”); provided,
however, that any such event
where the holders of more than 50% of our shares of Common Stock immediately
prior to such event, own, directly or indirectly, more than 50% of all classes
of Common Equity of the continuing or surviving person or transferee or the
parent thereof immediately after such event shall not be a Fundamental Change;

 

(c)           the stockholders of the Company approve any plan or
proposal for the liquidation or dissolution of the Company; or

 

(d)           the Common Stock (or other common stock into which the
Securities are then convertible) ceases to be listed on at least one U. S.
national securities exchange,

 

provided, however, no transaction or event
described in clause (b) above shall constitute a Fundamental Change if at
least 90% of the consideration, excluding cash payments for fractional shares,
in the transaction or event that would otherwise have constituted a Fundamental
Change consists of shares of Publicly Traded Securities, and as a result of the
transaction or event, the Securities become convertible into such Publicly
Traded Securities, excluding cash payments for fractional shares (subject to
the provisions of Section 4.03).

 

“Global
Security” means a Security in global form that is in substantially the form
attached as Exhibit A and that includes the legend called for in footnote
1 thereof and the related 

 

4

 

schedule and which is deposited with the Depositary or its custodian
and registered in the name of the Depositary or its nominee.

 

“Holder”
or “Holder of a Security” means the person in whose name a Security is
registered on the register maintained by the Primary Registrar.

 

“Indenture”
means this instrument as originally executed (including all exhibits and
schedules thereto) and as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including the provisions of the TIA that are
automatically deemed to be part of this Indenture by operation of the TIA.

 

“Interest
Payment Date” means January 15 and July 15 of each year, commencing January 15,
2010.

 

“Last Reported Sale Price” of the Common Stock on any
date means the closing sale price per share (or if no closing sale price is reported,
the average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on that date as reported
in composite transactions for the principal U.S. securities exchange on which
the Common Stock is traded.  If the
Common Stock is not listed for trading on a U.S. national securities exchange
on the relevant date, then the “Last Reported Sale Price” of the Common Stock
will be the last quoted bid price for the Common Stock in the over-the-counter
market on the relevant date as reported by Pink OTC Markets Inc. or similar
organization. If the Common Stock is not so quoted, the “Last Reported Sale
Price” of the Common Stock will be determined by a U.S. nationally recognized
independent investment banking firm selected by the Company for this
purpose.  The Last Reported Sale Price
will be determined without reference to after-hours or extended market trading.

 

“Make-Whole
Fundamental Change” means any transaction or event that constitutes a Fundamental
Change under clause (a) or (b) of the definition thereof (in the case
of any Fundamental Change described in clause (b) of the definition
thereof, determined without regard to the proviso in such clause but after
giving effect to the exceptions and exclusions to the definition of Fundamental
Change that otherwise apply).

 

“Market
Disruption Event” means (a) a failure by the primary exchange or quotation
system on which the Common Stock trades or is quoted to open for trading during
its regular trading session or (b) the occurrence or existence prior to
1:00 p.m., New York City time, on any Trading Day for the Common Stock of
an aggregate one-half hour period, of any suspension or limitation imposed on
trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Stock or in any options, contracts
or future contracts relating to the Common Stock.

 

“Maturity
Date” means July 15, 2014.

 

“Officer”
means the Chairman, any Vice Chairman, the President, the Chief Executive
Officer, any Vice President, the Chief Financial Officer, the Chief Operating
Officer, the Treasurer or any Assistant Treasurer, or the Secretary or any
Assistant Secretary of the Company.

 

5

 

“Officer’s
Certificate” means a certificate signed by an Officer of the Company and
delivered to, the Trustee; provided, however, that for purposes of Section 5.03, “Officer’s
Certificate” means a certificate signed by the principal executive officer, principal
financial officer, principal operating officer, principal accounting officer or
treasurer of the Company.

 

“opening
of business” means 9:00 a.m. (New York City time).

 

“Opinion
of Counsel” means a written opinion of counsel, who may be an employee of or
counsel for the Company or the Trustee and who shall be reasonably acceptable
to the Trustee, and which opinion shall contain the statements required by Section 11.04.

 

“Person” means an individual, a corporation, a limited
liability company, an association, a partnership, a joint venture, a joint
stock company, a trust, an unincorporated organization or a government or an
agency or a political subdivision thereof.

 

“Prospectus” means the prospectus dated July 8,
2009 relating to the offering and sale of the Securities.

 

“Publicly Traded Securities” means shares of common
stock that are traded on a U.S. national securities exchange or that will be so
traded when issued or exchanged in connection with a transaction described in
clause (b) of the definition of Fundamental Change.

 

“Regular
Record Date” means, with respect to each Interest Payment Date, the January 1
or July 1, as the case may be, immediately preceding such Interest Payment
Date.

 

“Scheduled Trading Day” means any day that is
scheduled to be a Trading Day.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Securities”
means the up to $150,000,000 aggregate principal amount ($172,500,000 aggregate
principal amount if the Underwriters exercise their over-allotment option to
purchase up to an additional $22,500,000 aggregate principal amount in full) of
5% Convertible Senior Notes due 2014, or any $1,000 principal amount thereof
(each a “Security”), that are initially issued under this Indenture.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

 

“Securities
Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor thereto.

 

“Settlement Notice” means the notice specifying the
Settlement Method that the Company has elected in accordance with the
provisions of Section 4.03(b) and which contains the information
required by Section 4.03(c).

 

“Significant Subsidiary” means, at any date of determination,
any Subsidiary that would constitute a “significant subsidiary” within the
meaning of Article 1 of Regulation S-X promulgated under the
Securities Act as in effect on the date of this Indenture.

 

6

 

“Special
Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 2.16.

 

“Specified Dollar Amount” means an amount of cash per
$1,000 principal amount of a converted Security specified by the Company in the
Settlement Notice related to such converted Security.

 

“Stated
Maturity” means, with respect to any installment of interest or principal on
any Security, the date on which such payment of interest or principal shall
become due and payable.

 

“Subsidiary”
means, with respect to any specified Person: (1) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees of
the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); or (2) any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

 

“TIA”
means the Trust Indenture Act of 1939, as amended, and the rules and
regulations thereunder as in effect on the date of this Indenture, except to
the extent that the Trust Indenture Act or any amendment thereto expressly
provides for application of the Trust Indenture Act as in effect on another
date.

 

“Trading Day” means a day during which (i) trading
in the Common Stock generally occurs on the New York Stock Exchange or, if the
Common Stock is not then listed on the New York Stock Exchange, on the
principal other United States national or regional securities exchange on which
the Common Stock is then listed or, if the Common Stock is not then listed on a
United States national or regional securities exchange, in the principal other
market on which the Common Stock is then traded, and (ii) a Last Reported
Sale Price for the Common Stock is available on such securities exchange or
market.  If the Common Stock (or other
security for which a Last Reported Sale Price must be determined) is not so
listed or traded, “Trading Day” means a “Business Day.”

 

“Trading
Price” of the Securities on any date of determination means the average of the
secondary market bid quotations obtained by the Bid Solicitation Agent for $5
million principal amount of the Securities at approximately 3:30 p.m., New
York City time, on such determination date from three nationally recognized
securities dealers the Company selects; provided that,
if three such bids cannot reasonably be obtained by the Bid Solicitation Agent
but two such bids are obtained, then the average of the two bids shall be used,
and if only one such bid can reasonably be obtained by the Bid Solicitation
Agent, that one bid shall be used.  If
the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5
million principal amount of the Securities from a nationally recognized
securities dealer, then the Trading Price per $1,000 principal amount of
Securities will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate.

 

7

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and
thereafter means the successor.

 

“Trust
Officer” means, with respect to the Trustee, any officer of the Trustee who
shall have direct responsibility for the administration of this Indenture and,
for the purposes of Section 8.01(c)(2) and the proviso in Section 8.02,
shall also include any other officer of the Trustee to whom any corporate trust
matter is referred because of such officer’s knowledge of and familiarity with
the particular subject.

 

“Underwriters”
means the underwriters named in the Purchase Agreement, dated July 8,
2009, among the Company and the underwriters named therein.

 

“Vice
President” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added
before or after the title “vice president.”

 

Section 1.02.          Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  11.05

  	
   

  
	
  “Additional Securities”

  	
   

  	
  2.02

  	
   

  
	
  “Additional Shares”

  	
   

  	
  4.04

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.01

  	
   

  
	
  “Conversion Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Conversion Date”

  	
   

  	
  4.02

  	
   

  
	
  “Conversion Notice”

  	
   

  	
  4.02

  	
   

  
	
  “DTC”

  	
   

  	
  2.01

  	
   

  
	
  “Defaulted Interest”

  	
   

  	
  2.16

  	
   

  
	
  “Depositary”

  	
   

  	
  2.01

  	
   

  
	
  “Dividend Threshold
  Amount”

  	
   

  	
  4.05

  	
   

  
	
  “Effective Date”

  	
   

  	
  4.04

  	
   

  
	
  “Event of Default”

  	
   

  	
  7.01

  	
   

  
	
  “Expiration Date”

  	
   

  	
  4.05

  	
   

  
	
  “Expiration Time”

  	
   

  	
  4.05

  	
   

  
	
  “Fundamental Change
  Company Notice”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change
  Expiration Time”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change
  Repurchase Date”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change
  Repurchase Notice”

  	
   

  	
  3.01

  	
   

  
	
  “Fundamental Change
  Repurchase Price”

  	
   

  	
  3.01

  	
   

  
	
  “Initial Securities”

  	
   

  	
  2.02

  	
   

  
	
  “Make-Whole Fundamental
  Change Period”

  	
   

  	
  4.04

  	
   

  
	
  “Measurement Period”

  	
   

  	
  4.01

  	
   

  
	
  “Merger Event”

  	
   

  	
  4.06

  	
   

  
	
  “Outstanding”

  	
   

  	
  2.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Primary Registrar”

  	
   

  	
  2.03

  	
   

  

 

8

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Reference Property”

  	
   

  	
  4.06

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Settlement Amount”

  	
   

  	
  4.03

  	
   

  
	
  “Settlement Method”

  	
   

  	
  4.03

  	
   

  
	
  “Special Payment Date”

  	
   

  	
  2.16

  	
   

  
	
  “Spin-Off”

  	
   

  	
  4.05

  	
   

  
	
  “Stock Price”

  	
   

  	
  4.04

  	
   

  
	
  “Trading Price Condition

  	
   

  	
  4.01

  	
   

  
	
  “Trigger Event”

  	
   

  	
  4.05

  	
   

  
	
  “Valuation Period”

  	
   

  	
  4.05

  	
   

  
	
  “Weighted Average
  Consideration”

  	
   

  	
  4.06

  	
   

  

 

Section 1.03.          Trust
Indenture Act Provisions.

 

Whenever
this Indenture refers to a provision of the TIA, that provision is incorporated
by reference in and made a part of this Indenture.

 

All
terms used in this Indenture that are defined in the TIA, defined by the TIA by
reference to another statute or defined by any SEC rule and not otherwise
defined herein have the meanings assigned to them therein.

 

Section 1.04.          Rules of
Construction.

 

For
all purposes of this Indenture, except as otherwise provided or unless the
context otherwise requires:

 

(1)  a term has the
meaning assigned to it;

 

(2)  an accounting term
not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)  words in the singular
include the plural, and words in the plural include the singular;

 

(4)  the term “merger”
includes a statutory share exchange and the term “merged” has a correlative
meaning;

 

(5)  the masculine
gender includes the feminine and the neuter;

 

(6)  the terms “include”,
“including”, and similar terms should be construed as if followed by the phrase
“without limitation”;

 

(7)  references to
agreements and other instruments include subsequent amendments thereto; and

 

(8)  all “Article”, “Exhibit”
and “Section” references are to Articles, Exhibits and Sections, respectively,
of or to this Indenture unless otherwise specified herein, and the

 

9

 

terms
“hereunder,” “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.

 

ARTICLE 2

 

THE SECURITIES

 

Section 2.01.          Form and
Dating.

 

The
Securities and the Trustee’s certificate of authentication shall be
substantially in the respective forms set forth in Exhibit A, which Exhibit is
incorporated in and made part of this Indenture. The Securities may include
such letters, numbers or other marks of identification and such notations,
legends, endorsements or changes as the Officer executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Indenture, or as may be required by
the Trustee, the Depositary, or as may be required to comply with any applicable
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any national securities exchange or automated quotation system on
which the Securities may be listed or quoted, or to conform to usage, or to
indicate any special limitations or restrictions to which any particular
Securities are subject. Each Security shall be dated the date of its
authentication.

 

(a)           Global Securities.  All of the Securities initially being offered
and sold to the Underwriters shall be issued in the form of one or more Global
Securities, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with Wells Fargo Bank, N.A., at its Corporate
Trust Office, as custodian for the depositary, The Depository Trust Company
(“DTC”, and such depositary, or any successor thereto, being hereinafter
referred to as the “Depositary”), and registered in the name of its nominee,
Cede & Co. (or any successor thereto), for the accounts of
participants in the Depositary, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. 
The aggregate principal amount of the Global Securities may from time to
time be increased or decreased by adjustments made on the records of the
Securities Custodian as hereinafter provided, subject in each case to
compliance with the Applicable Procedures.

 

(b)           Global Securities In General.  The Global Security shall represent such of
the outstanding Securities as shall be specified therein and each shall provide
that it shall represent the aggregate principal amount of outstanding
Securities from time to time endorsed thereon and that the aggregate principal
amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges, purchases or
conversions of such Securities.

 

Members
of, or participants in, the Depositary (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf
by the Depositary or under the Global Security, and the Depositary (including,
for this purpose, its nominee) may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner and Holder of
such Global Security for all purposes whatsoever.  None of the Trustee, the Paying Agent or the
Security Registrar shall have any responsibility or obligation to any
beneficial owner in a Global Security, an Agent Member or other Person with
respect to the 

 

10

 

accuracy of the records of the Depositary or its nominee or of any
Agent Member, with respect to any ownership interest in the Securities or with
respect to the delivery to any Agent Member, beneficial owner or other Person
(other than the Depositary) of any notice (including any notice of redemption)
or the payment of any amount, under or with respect to such Securities.  All notices and communications to be given to
the Holders and all payments to be made to Holders under the Securities and
this Indenture shall be given or made only to or upon the order of the
registered Holders (which shall be the Depositary or its nominee in the case of
the Global Security).  The rights of
beneficial owners in the Global Security shall be exercised only through the
Depositary subject to the Applicable Procedures.  The Trustee, the Paying Agent and the
Security Registrar shall be entitled to rely and shall be fully protected in
relying upon information furnished by the Depositary with respect to its
members, participants and any beneficial owners.  The Trustee, the Paying Agent and the
Security Registrar shall be entitled to deal with the Depositary, and any
nominee thereof, that is the registered Holder of any Global Security for all
purposes of this Indenture relating to such Global Security (including the
payment of principal and interest and the giving of instructions or directions
by or to the owner or Holder of a beneficial ownership interest in such Global
Security) as the sole Holder of such Global Security and shall have no
obligations to the beneficial owners thereof. 
None of the Trustee, the Paying Agent or the Security Registrar shall
have any responsibility or liability for any acts or omissions of the
Depositary with respect to such Global Security, for the records of any such
depositary, including records in respect of beneficial ownership interests in
respect of any such Global Security, for any transactions between the
Depositary and any Agent Member or between or among the Depositary, any such
Agent Member and/or any Holder or owner of a beneficial interest in such Global
Security, or for any transfers of beneficial interests in any such Global
Security.

 

Notwithstanding
the foregoing, nothing herein shall (1) prevent the Company, the Trustee
or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or (2) impair,
as between the Depositary and its Agent Members, the operation of customary
practices governing the exercise of the rights of a Holder of any Security.

 

(c)           Book Entry Provisions.  The Company shall execute and the Trustee
shall, in accordance with this Section 2.01(c), authenticate and deliver
initially one or more Global Securities that (1) shall be registered in
the name of the Depositary or its nominee, (2) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary’s instructions and (3) shall
bear legends substantially to the following effect:

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A
TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

11

 

UNLESS THIS SECURITY IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

Section 2.02.          Execution and Authentication.

 

(a)           The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is
initially limited to $150,000,000 aggregate principal amount ($172,500,000
aggregate principal amount if the Underwriters exercise their over-allotment
option to purchase up to an additional $22,500,000 aggregate principal amount
in full), except as provided in Sections 2.07 and 2.08.

 

The
Company may, without the consent of the Holders of the Securities, hereafter
issue additional Securities (“Additional Securities”) under the Indenture with
the same terms and with the same CUSIP number as the Securities issued on the
date of this Indenture (the “Initial Securities”) in an unlimited aggregate
principal amount; provided that
such Additional Securities must be part of the same issue as the Initial
Securities for federal income tax purposes. Any such Additional Securities
shall constitute a single series together with the Initial Securities for all
purposes hereunder, including, without limitation, for purposes of any waivers,
supplements or amendments to the Indenture requiring the approval of Holders of
the Securities and any offers to purchase the Securities.

 

(b)           The Securities shall be executed on
behalf of the Company by one of its Officers. The signatures of any of the
Officers on the Securities may be manual or facsimile.

 

(c)           Securities bearing the manual or
facsimile signatures of individuals who were at any time the proper officers of
the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such
Securities.

 

(d)           No Security shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein duly executed by the Trustee by manual signature
of an authorized signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture.

 

(e)           The Trustee shall authenticate and
make available for delivery Securities for original issue in the aggregate
principal amount of $150,000,000 (or up to $172,500,000 if the Underwriters
exercise their over-allotment option in full) upon receipt of a Company Order.
The

 

12

 

Company Order shall specify
the amount of Securities to be authenticated, shall provide that all such
Securities will be represented by a Global Security and the date on which each
original issue of Securities is to be authenticated.

 

(f)            The Trustee shall act as the initial
authenticating agent. Thereafter, the Trustee may appoint an authenticating
agent acceptable to the Company to authenticate Securities. An authenticating
agent may authenticate Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent shall have the same
rights as an Agent to deal with the Company or an Affiliate of the Company.

 

(g)           The Securities shall be issuable only
in registered form without coupons and only in denominations of $1,000
principal amount and any integral multiple thereof.

 

Section 2.03.          Registrar, Paying Agent and
Conversion Agent.

 

(a)           The Company shall maintain one or
more offices or agencies where Securities may be presented for registration of
transfer or for exchange (each, a “Registrar”), one or more offices or agencies
where Securities may be presented or surrendered for payment (each, a “Paying
Agent”), one or more offices or agencies where Securities may be presented for
conversion (each, a “Conversion Agent”) and one or more offices or agencies
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The Company will at all times maintain a
Paying Agent, Conversion Agent, Registrar and an office or agency where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served in the Borough of Manhattan, The City of New York. One
of the Registrars (the “Primary Registrar”) shall keep a register of the
Securities and of their transfer and exchange.

 

(b)           The Company shall enter into an
appropriate agency agreement with any Agent not a party to this Indenture, provided that the Agent may be an Affiliate of the Trustee.
The agreement shall implement the provisions of this Indenture that relate to
such Agent. The Company shall notify the Trustee of the name and address, and
any change in the name or address, of any Agent not a party to this Indenture.
If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent,
or agent for service of notices and demands in any place required by this
Indenture, or fails to give the foregoing notice, the Trustee shall act as
such. The Company or any Affiliate of the Company may act as Paying Agent.

 

(c)           The Company hereby initially
designates Wells Fargo Bank, N.A. as Paying Agent, Primary Registrar,
Securities Custodian and Conversion Agent, and designates the Trustee’s agency
in New York, New York as the office or agency of the Company for each of the
aforesaid purposes and as the office or agency where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served.

 

Section 2.04.          Paying Agent To Hold Money In Trust.

 

Unless
otherwise specified herein, prior to 10:00 a.m., New York City time, on
each due date of the payment of principal of, or interest on, any Securities,
the Company shall deposit a sum sufficient to pay such principal or interest so
becoming due. A Paying Agent shall hold in

 

13

 

trust for the benefit of Holders of Securities or the Trustee all money
held by the Paying Agent for the payment of principal of, or interest on, the
Securities, and shall notify the Trustee of any failure by the Company to make
any such payment. If the Company or an Affiliate of the Company acts as Paying
Agent, it shall, before 10:00 a.m., New York City time, on each due date
of the principal of, or interest on, any Securities, segregate the money and
hold it as a separate trust fund for the benefit of Holders. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee, and
the Trustee may at any time during the continuance of any Default, upon written
request to a Paying Agent, require such Paying Agent to pay forthwith to the
Trustee all sums so held in trust by such Paying Agent. Upon doing so, the
Paying Agent (other than the Company) shall have no further liability for the
money.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of or interest on any
Security and remaining unclaimed for two years after such principal or interest
has become due and payable shall promptly be paid to the Company or (if then
held by the Company) shall be discharged from such trust; and the Holder of
such Security shall thereafter, as an unsecured general creditor, look only to
the Company for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will
promptly be repaid to the Company.

 

Section 2.05.          Conversion Agent To Hold Amounts In
Trust.

 

The
Company shall require each Conversion Agent (that is not the Trustee) to agree
in writing that the Conversion Agent will hold in trust for the benefit of
Holders or the Trustee all cash and shares of Common Stock delivered by the
Company to the Conversion Agent for the delivery of amounts due upon
conversion, and will notify the Trustee of any default by the Company in making
any such delivery.

 

While
any such default continues, the Trustee may require a Conversion Agent to
deliver all cash and shares of Common Stock delivered by the Company to it to
the Trustee. Upon payment over to the Trustee, the Conversion Agent (if other
than the Company or a Subsidiary) shall have no further liability in respect of
such amounts. If the Company or a Subsidiary acts as Conversion Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all
cash and shares of Common Stock held by it as Conversion Agent. Upon any
bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Conversion Agent for the Securities.

 

Section 2.06.          Lists of Holders of Securities.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Holders of
Securities. The Company shall

 

14

 

furnish or cause the Primary Registrar to furnish to the Trustee (a) semiannually,
not more than 10 days after each Regular Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders
as of such Regular Record Date; and (b) at such other times as the Trustee
may request in writing, within 30 days after receipt by the Company of any such
request, a list of similar form and content to that in subsection (a) hereof
as of a date not more than 15 days prior to the time such list is furnished; provided, however, that
if and so long as the Trustee shall be the Primary Registrar, no such list need
be furnished.

 

Section 2.07.          Transfer and Exchange.

 

(a)           Subject to compliance with any
applicable additional requirements contained in Section 2.13, when a
Security is presented to a Registrar with a request to register a transfer
thereof or to exchange such Security for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested if its requirements for such
transactions are met; provided, however, that every Security presented or surrendered for
registration of transfer or exchange shall be duly endorsed or accompanied by
an assignment form and, if applicable, a transfer certificate each
substantially in the form included in Exhibit D hereto, and completed in a
manner satisfactory to the Registrar and duly executed by the Holder thereof or
its attorney duly authorized in writing. To permit registration of transfers
and exchanges, upon surrender of any Security for registration of transfer or exchange
at an office or agency maintained pursuant to Section 2.03, the Company
shall execute and the Trustee shall authenticate Securities of a like aggregate
principal amount at the Registrar’s request. Any exchange or transfer shall be
without charge, except that the Company or the Registrar may require payment of
a sum sufficient to cover any transfer tax or similar governmental charge that
may be imposed in relation thereto; provided that this sentence shall not apply
to any exchange pursuant to Section 2.11, 2.13(b), 3.03(c), 4.02(c) or
10.06 unless, and to the extent, specified otherwise therein.

 

(b)           Neither the Company, any Registrar
nor the Trustee shall be required to register the transfer of or exchange any
Securities or portions thereof in respect of which a Fundamental Change
Repurchase Notice has been delivered and not withdrawn by the Holder thereof
(except, in the case of the purchase of a Security in part, the portion thereof
not to be purchased).

 

(c)           All Securities issued upon any
transfer or exchange of Securities shall be valid obligations of the Company,
evidencing the same debt and entitled to the same benefits under this Indenture
as the Securities surrendered upon such registration of transfer or exchange.

 

(d)           Any Registrar appointed pursuant to Section 2.03
shall provide to the Trustee such information as the Trustee may reasonably
require in connection with the delivery by such Registrar of Securities upon
transfer or exchange of Securities.

 

(e)           Each Holder of a Security agrees to indemnify
the Company and the Trustee against any liability that may result from the
registration of transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States
federal or state securities law.

 

15

 

(f)            The Trustee shall have no obligation
or duty to monitor, determine or inquire as to compliance with any restrictions
on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Security (including any transfers
between or among Agent Members or other beneficial owners of interests in any
Global Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

Section 2.08.          Replacement Securities.

 

(a)           If (1) any mutilated Security is
surrendered to the Trustee, or (2) the Company and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of any
Security, and there is delivered to the Company and the Trustee, such security
or indemnity, in each case, as may be required by them to save each of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a protected purchaser, the Company shall
execute and upon a Company Request the Trustee shall authenticate and deliver,
in exchange for any such mutilated Security or in lieu of any such destroyed,
lost or stolen Security, a replacement Security of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

 

(b)           If any such mutilated, destroyed,
lost or stolen Security has become or is about to become due and payable, or is
about to be purchased by the Company pursuant to Article 3, or converted
pursuant to Article 4, the Company in its discretion may, instead of
issuing a new Security, pay, purchase or convert such Security, as the case may
be.

 

(c)           Upon the issuance of any new
Securities under this Section 2.08, the Company may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of counsel and the Trustee) in connection therewith.

 

(d)           Every new Security issued pursuant to
this Section 2.08 in lieu of any mutilated, destroyed, lost or stolen
Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall
be at any time enforceable by anyone, and shall be entitled to all benefits of
this Indenture equally and proportionately with any and all other Securities
duly issued hereunder.

 

(e)           The provisions of this Section 2.08
are (to the extent lawful) exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

 

Section 2.09.          Outstanding Securities.

 

(a)           Securities outstanding (“Outstanding”)
at any time are all Securities authenticated by the Trustee, except for those
canceled by it, those purchased pursuant to Article 3, those converted
pursuant to Article 4, those delivered to the Trustee for cancellation or
surrendered for transfer or exchange and those described in this Section 2.09
as not Outstanding.

 

16

 

(b)           If a Security is replaced pursuant to
Section 2.08, such replaced Security ceases to be Outstanding unless the
Company receives proof satisfactory to it that the replaced Security is held by
a protected purchaser.

 

(c)           If a Paying Agent holds in respect of
the Outstanding Securities on a Fundamental Change Repurchase Date or the
Maturity Date money sufficient to pay the principal of and accrued interest on
Securities (or portions thereof) payable on that date, then on and after such
Fundamental Change Repurchase Date or Maturity Date, as the case may be, such
Securities (or portions thereof, as the case may be) shall cease to be
Outstanding and interest on them shall cease to accrue.

 

(d)           Subject to the restrictions contained
in Section 2.10, a Security does not cease to be Outstanding because the
Company or an Affiliate of the Company holds the Security.

 

Section 2.10.          Treasury Securities.

 

In
determining whether the Holders of the required principal amount of Securities
have concurred in any request, demand, authorization, notice, direction, waiver
or consent, Securities owned by the Company or by any Affiliate of the Company
shall be disregarded, except that, for purposes of determining whether the Trustee
shall be protected in relying on any such request, demand, authorization,
notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee actually knows are so owned shall be so disregarded.

 

Section 2.11.          Temporary Securities.

 

Until
definitive Securities are ready for delivery, the Company may prepare and
execute, and, upon receipt of a Company Order, the Trustee shall authenticate
and deliver, temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
with the consent of the Trustee considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary
Securities representing an equal principal amount of Securities. The temporary
Securities will be exchanged for definitive Securities in accordance with
Sections 2.07 and 2.13 hereof. Until so exchanged, temporary Securities shall
have the same rights under this Indenture as the definitive Securities.

 

Section 2.12.          Cancellation.

 

The
Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, the Paying Agent and the Conversion Agent shall forward to the
Trustee any Securities surrendered to them for transfer, exchange, purchase,
payment or conversion. The Trustee and no one else shall cancel, in accordance
with its standard procedures, all Securities surrendered for transfer,
exchange, purchase, payment, conversion or cancellation and shall dispose of
the cancelled Securities in accordance with its customary procedures or deliver
the canceled Securities to the Company upon request. All Securities which are
purchased or otherwise acquired by the Company or any of its Subsidiaries prior
to the Maturity Date pursuant to Article 3 shall be delivered to the
Trustee for cancellation, and the Company may not hold or resell such
Securities or issue any new Securities to replace any such Securities or any
Securities

 

17

 

that any Holder has converted pursuant to Article 4. The Trustee
shall maintain a record of all canceled Securities. The Trustee shall provide
the Company a list of all Securities that have been canceled from time to time
as requested by the Company in writing.

 

Section 2.13.          Legend;
Additional Transfer and Exchange Requirements.

 

(a)           A Global
Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to
any such other Person may be registered; provided that
the foregoing shall not prohibit any transfer of a Security that is issued in
exchange for a Global Security but is not itself a Global Security. No transfer
of a Security to any Person shall be effective under this Indenture or the
Securities unless and until such Security has been registered in the name of
such Person. Notwithstanding any other provisions of this Indenture or the
Securities, transfers of a Global Security, in whole or in part, shall be made
only in accordance with this Section 2.13.

 

(b)           The provisions
below shall apply only to Global Securities:

 

(1)           Each Global Security authenticated under this Indenture
shall be registered in the name of the Depositary or a nominee thereof and
delivered to such Depositary or a nominee thereof or custodian therefor, and
each such Global Security shall constitute a single Security for purposes of
this Indenture.

 

(2)           Notwithstanding any other provisions of this Indenture or
the Securities, a Global Security shall not be exchanged in whole or in part
for a Security registered, and no transfer of a Global Security in whole or in
part shall be registered in the name of any Person other than the Depositary or
one or more nominees thereof; provided that a
Global Security may be exchanged for Securities registered in the names of any
person designated by the Depositary in the event that the Depositary (A) has
notified the Company that it is unwilling or unable to continue as Depositary
for such Global Security or such Depositary has ceased to be a “clearing agency”
registered under the Exchange Act, and in either case, a successor Depositary
is not appointed by the Company within 90 days after receiving such notice or
becoming aware that the Depositary has ceased to be a “clearing agency” or (B) an
Event of Default has occurred and is continuing with respect to the
Securities.  Any Global Security
exchanged pursuant to the preceding sentence shall be so exchanged as directed
by the Depositary. Any Security issued in exchange for a Global Security or any
portion thereof shall be a Global Security; provided, however, that any such Security so issued that is registered
in the name of a Person other than the Depositary or a nominee thereof shall
not be a Global Security.

 

(3)           Securities issued in exchange for a Global Security or any
portion thereof that are not issued as a Global Security shall be issued in
definitive, fully registered form, without interest coupons, shall have a
principal amount equal to that of such Global Security or portion thereof to be
so exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear the applicable legends
provided for herein. Any Global Security to be exchanged in whole shall be
surrendered by the Depositary to the Trustee or the Registrar. With regard to
any Global Security to be exchanged in part, either such Global Security shall
be so

 

18

 

surrendered for exchange or, if the Trustee
is acting as custodian for the Depositary or its nominee with respect to such
Global Security, the principal amount thereof shall be reduced, by an amount
equal to the portion thereof to be so exchanged, by means of an appropriate
adjustment made on the records of the Trustee. Upon any such surrender or
adjustment, the Trustee shall authenticate and deliver the Security issuable on
such exchange to or upon the order of the Depositary or an authorized
representative thereof.

 

(4)           Subject to clause (6) of this Section 2.13(b),
the registered Holder may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent Members,
to take any action which a Holder is entitled to take under this Indenture or
the Securities.

 

(5)           In the event of the occurrence of any of the events
specified in clause (2) of this Section 2.13(b), the Company will
promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest coupons.

 

(6)           Neither Agent Members nor any other Persons on whose
behalf Agent Members may act shall have any rights under this Indenture with respect
to any Global Security registered in the name of the Depositary or any nominee
thereof, or under any such Global Security, and the Depositary or such nominee,
as the case may be, may be treated by the Company, the Trustee and any agent of
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and Holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or such nominee, as the case may be, or impair, as between the Depositary, its
Agent Members and any other Person on whose behalf an Agent Member may act, the
operation of customary practices of such Persons governing the exercise of the
rights of a Holder of any Security.

 

(7)           At such time as all interests in a Global Security have
been converted, cancelled or exchanged for Securities in certificated form,
such Global Security shall, upon receipt thereof, be cancelled by the Trustee
in accordance with standing procedures and instructions existing between the
Depositary and the Securities Custodian, subject to Section 2.12 of this
Indenture. At any time prior to such cancellation, if any interest in a Global
Security is converted, canceled or exchanged for Securities in certificated
form, the principal amount of such Global Security shall, in accordance with
the standing procedures and instructions existing between the Depositary and
the Securities Custodian, be appropriately reduced, and an endorsement shall be
made on such Global Security, by the Trustee or the Securities Custodian, at
the direction of the Trustee, to reflect such reduction.

 

Section 2.14.          CUSIP Numbers.

 

The
Company in issuing the Securities may use one or more “CUSIP,” “ISIN” or other
similar numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP,”
“ISIN” or

 

19

 

other similar numbers in a Fundamental Change Repurchase Notice as a
convenience to Holders; provided that
any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Securities or as contained in any
Fundamental Change Repurchase Notice and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
purchase shall not be affected by any defect in or omission of such numbers.
The Company will notify the Trustee in writing of any change in the “CUSIP,” “ISIN”
or other similar numbers.

 

Section 2.15.          Calculations.

 

Except
as otherwise specifically stated herein or in the Securities, the Company shall
be responsible for making all calculations called for under the Indenture and
the Securities.  Such calculations
include, but are not limited to, determinations of the Last Reported Sale Price
of the Common Stock, the Settlement Amount and related calculations, accrued
interest payable on the Securities and the applicable Conversion Rate. The
Company shall make all these calculations in good faith and, absent manifest
error, such calculations shall be final and binding on Holders of
Securities.  The Company shall provide a
schedule of its calculations to each of the Trustee and the Conversion Agent,
and each of the Trustee and Conversion Agent is entitled to rely conclusively
upon the accuracy of the Company’s calculations without independent
verification. The Trustee shall forward calculations of the Company to any
Holder upon the request of such Holder.

 

Section 2.16.          Payment of Interest; Interest
Rights Preserved.

 

Interest
on any Security which is payable, and is punctually paid or duly provided for,
on the Stated Maturity of such interest shall be paid to the Person in whose
name the Security is registered at the close of business on the Regular Record
Date for such interest payment.

 

Any
interest on any Security which is payable, but is not punctually paid or duly
provided for, on the Stated Maturity of such interest, and interest on such
defaulted interest at the then applicable interest rate borne by the
Securities, to the extent lawful (such defaulted interest and interest thereon
herein collectively called “Defaulted Interest”), shall forthwith cease to be
payable to the Holder on the Regular Record Date; and such Defaulted Interest
may be paid by the Company, at its election in each case, as provided in
Subsection (a) or (b) below:

 

(a)           The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Securities are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security and the date (not less than 20 days after
such notice) of the proposed payment (the “Special Payment Date”), and on the
date of payment the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the Special Payment Date, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as
in this subsection provided. Thereupon the Trustee shall fix a Special Record
Date for the payment of such Defaulted Interest which shall be not more than 15
days and not less than 10 days prior to the date of the Special

 

20

 

Payment Date and not less
than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company in writing of such
Special Record Date. Unless the Company issues a press release to the same effect,
in the name and at the expense of the Company, the Trustee shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder at its
address as it appears in the Security Register, not less than 10 days prior to
such Special Record Date or notify in such other manner as the Trustee
determines, including in accordance with any Applicable Procedures.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date and Special Payment Date
therefor having been so mailed or otherwise conveyed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities are registered on
such Special Record Date and shall no longer be payable pursuant to the
following paragraph (b).

 

(b)           The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any national securities exchange on which the Securities may be
listed, and upon such notice as may be required by this Indenture not
inconsistent with the requirements of such exchange, if, after written notice
given by the Company to the Trustee of the proposed payment pursuant to this
subsection, such payment shall be deemed practicable by the Trustee.

 

Subject
to the foregoing provisions of this Section 2.16, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Security shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Security.

 

Section 2.17.          Computation of Interest.

 

Interest
on the Securities shall be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

Section 2.18.          Purchase of Securities In Open
Market.

 

The
Company may from time to time repurchase Securities pursuant to a tender offer
or in open market purchases or negotiated transactions at any price without
prior notice to Holders.  Any Securities
so repurchased may be reissued in accordance with applicable law or surrendered
to the Trustee for cancellation.  Any
Securities surrendered to the Trustee for cancellation pursuant to Section 2.12
may not be reissued or resold by the Company and will be canceled promptly in
accordance therewith.

 

ARTICLE 3

 

PURCHASE

 

Section 3.01.          Repurchase at Option of Holders
upon a Fundamental Change.

 

(a)           If there shall occur a Fundamental
Change at any time prior to the Maturity Date, then each Holder shall have the
right, at such Holder’s option, to require the Company to repurchase for cash
all of such Holder’s Securities, or any portion thereof that is an integral

 

21

 

multiple of $1,000 principal
amount, on the date (the “Fundamental Change Repurchase Date”) specified by the
Company that is not less than 20 Business Days and not more than 35 Business
Days after the date of the Fundamental Change Company Notice at a repurchase
price equal to 100% of the principal amount thereof, together with accrued and
unpaid interest thereon to, but excluding, the Fundamental Change Repurchase
Date (the “Fundamental Change Repurchase Price”), unless the Fundamental Change
Repurchase Date is after a Regular Record Date and on or prior to the related
Interest Payment Date, in which case interest accrued to the Interest Payment
Date will be paid to holders of the Securities as of the preceding Regular
Record Date and the Fundamental Change Repurchase Price payable to the Holder
surrendering the Security for repurchase pursuant to this Article 3 shall
be equal to the principal amount of Securities subject to repurchase and will
not include any accrued and unpaid interest. Repurchases of Securities under
this Section 3.01 shall be made, at the option of the Holder thereof,
upon:

 

(i)            delivery to the Paying Agent by a holder of a duly
completed notice (the “Fundamental Change Repurchase Notice”) in the form set
forth on the reverse of the Security and attached as Exhibit C hereto on
or prior to the Scheduled Trading Day immediately preceding the Fundamental
Change Repurchase Date; and

 

(ii)           delivery or book-entry transfer of the Securities to the
Paying Agent at any time after delivery of the Fundamental Change Repurchase
Notice (together with all necessary endorsements) at the office of the Paying
Agent, such delivery being a condition to receipt by the holder of the
Fundamental Change Repurchase Price therefor; provided
that such Fundamental Change Repurchase Price shall be so paid
pursuant to this Section 3.01 only if the Security so delivered to the
Paying Agent shall conform in all respects to the description thereof in the
related Fundamental Change Repurchase Notice.

 

The
Fundamental Change Repurchase Notice shall state:

 

(A)          if certificated, the certificate numbers of Securities to
be delivered for repurchase;

 

(B)           the portion of
the principal amount of Securities to be repurchased, which must be $1,000 or
an integral multiple thereof; and

 

(C)           that the
Securities are to be repurchased by the Company pursuant to the applicable
provisions of the Securities and this Indenture;

 

provided, however, that if the Securities are not Certificated
Securities, the Fundamental Change Repurchase Notice must comply with
Applicable Procedures of the Depositary.

 

Any
repurchase by the Company contemplated pursuant to the provisions of this Section 3.01
shall be consummated by the payment of the Fundamental Change Repurchase Price
pursuant to Section 3.03(a).

 

Notwithstanding
anything herein to the contrary, any holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 3.01
shall have the right to withdraw, in whole or in part, such Fundamental Change
Repurchase Notice at any

 

22

 

time prior to the close of business on the Scheduled Trading Day
immediately preceding the Fundamental Change Repurchase Date in accordance with
Section 3.02.

 

The
Paying Agent shall promptly notify the Company of the receipt by it of any
Fundamental Change Repurchase Notice or written notice of withdrawal thereof.

 

(b)           On or before the 20th
calendar day after the occurrence of the effective date of a Fundamental
Change, the Company shall provide notice (the “Fundamental Change Company
Notice”) to all Holders of record of the Securities and the Trustee of, and
issue a press release in respect of (and make such press release available on
the Company’s website), the occurrence of the Fundamental Change and of the
repurchase right at the option of the Holders arising as a result thereof.  Such notice shall be effected by first class
mail or, in the case of any Global Securities, in accordance with the
Applicable Procedures of the Depositary for providing notices. Each Fundamental
Change Company Notice shall specify:

 

(i)            the events causing the
Fundamental Change;

 

(ii)           the effective date of the
Fundamental Change, and whether the Fundamental Change is a Make-Whole
Fundamental Change;

 

(iii)          the last date
on which a holder may exercise the repurchase right pursuant to this Article 3;

 

(iv)          the Fundamental Change
Repurchase Price;

 

(v)           the Fundamental Change
Repurchase Date;

 

(vi)          the name and address of the
Paying Agent and the Conversion Agent;

 

(vii)         the applicable
Conversion Rate, and, if applicable, any adjustments to the applicable
Conversion Rate;

 

(viii)        that the
Securities with respect to which a Fundamental Change Repurchase Notice has
been delivered by a holder may be converted only if the holder withdraws the
Fundamental Change Repurchase Notice in accordance with the terms of this
Indenture;

 

(ix)          that the holder
must exercise the repurchase right on or prior to the close of business on the
Scheduled Trading Day immediately preceding the Fundamental Change Repurchase
Date (the “Fundamental Change Expiration Time”);

 

(x)           that the holder
shall have the right to withdraw any Securities surrendered prior to the
Fundamental Change Expiration Time; and

 

(xi)          the procedures
that holders must follow to require the Company to repurchase their Securities.

 

23

 

No failure of the Company to give the foregoing notices and no defect
therein shall limit the Holders’ repurchase rights or affect the validity of
the proceedings for the repurchase of the Securities pursuant to this Section 3.01.

 

(c)           Notwithstanding
the foregoing, no Securities may be repurchased by the Company at the option of
the Holders upon a Fundamental Change if the principal amount of the Securities
has been accelerated, and such acceleration has not been rescinded, on or prior
to the Fundamental Change Repurchase Date (except in the case of an
acceleration resulting from a Default by the Company in the payment of the
Fundamental Change Repurchase Price with respect to such Securities).

 

(d)           In connection
with any purchase offer, the Company will:

 

(i)            comply with the provisions
of Rule 13e-4, Rule 14e-1 and any other tender offer rules under
the Exchange Act, if required under the Exchange Act,

 

(ii)           file a Schedule TO or
any successor or similar schedule, if required under the Exchange Act, and

 

(iii)          otherwise comply with all
federal and state securities laws in connection with any offer by the Company
to purchase the Securities.

 

Notwithstanding anything to the contrary provided in this Indenture,
compliance by the Company with Rule 13e-4, Rule 14e-1 and any other
tender offer rule under the Exchange Act in accordance with clause (i) above,
to the extent inconsistent with any other provision of this Indenture, will
not, standing alone, constitute an Event of Default solely as a result of
compliance by the Company with such rules.

 

Notwithstanding
the foregoing the Company shall not be required to repurchase the Securities in
accordance with this Section 3.01 if a third party or any Subsidiary of
the Company makes an offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Section 3.01 and
purchases all Securities validly tendered and not withdrawn under such purchase
offer.

 

Section 3.02.          Withdrawal of
Fundamental Change Repurchase Notice.

 

(a)           A Fundamental
Change Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Paying Agent in accordance with this Section 3.02
at any time prior to the close of business on the Scheduled Trading Day
immediately preceding the Fundamental Change Repurchase Date, specifying:

 

(i)            the principal amount of the
Security with respect to which such notice of withdrawal is being submitted,

 

(ii)           if Certificated Securities
have been issued, the certificate numbers of the withdrawn Securities, and

 

24

 

(iii)          the principal amount, if
any, of such Security that remains subject to the original Fundamental Change
Repurchase Notice, which portion must be in principal amounts of $1,000 or an
integral multiple of $1,000;

 

provided, however, that if the Securities are not Certificated
Securities, the notice of withdrawal of the Fundamental Change Repurchase
Notice must comply with Applicable Procedures of the Depositary.

 

Section 3.03.          Deposit of
Fundamental Change Repurchase Price.

 

(a)           The Company will deposit
with the Trustee (or other Paying Agent appointed by the Company, or if the
Company is acting as its own Paying Agent, set aside, segregate and hold in
trust) on or prior to 11:00 a.m. New York City time, on the Fundamental
Change Repurchase Date an amount of cash sufficient to repurchase all of the
Securities to be repurchased at the appropriate Fundamental Change Repurchase
Price.  Subject to receipt of funds from the
Company and Securities from Holders by the Trustee (or other Paying Agent
appointed by the Company), payment for Securities surrendered for repurchase
(and not withdrawn prior to the Fundamental Change Expiration Time) will be
made on the later of (i) the Fundamental Change Repurchase Date with
respect to such Security (provided the
holder has satisfied the conditions in Section 3.01) and (ii) the
time of book-entry transfer or the delivery of such Security to the Trustee (or
other Paying Agent appointed by the Company) by the holder or beneficial owner
thereof in the manner required by Section 3.01 by mailing checks for the
amount payable to the holders of such Securities entitled thereto as they shall
appear in the register for the Securities maintained by the Primary Registrar, provided, however,
that payments to the Depositary shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee. The Trustee
shall, promptly after such payment and upon written demand by the Company,
return to the Company any funds in excess of the Fundamental Change Repurchase
Price.

 

(b)           If by 11:00 a.m. New
York City time, on the Fundamental Change Repurchase Date, the Trustee (or
other Paying Agent appointed by the Company) holds money sufficient to make
payment on all the Securities or portions thereof that are to be repurchased as
a result of the corresponding Fundamental Change, then (i) such Securities
will cease to be outstanding, (ii) interest will cease to accrue on such Securities,
and (iii) all other rights of the holders of such Securities will
terminate (other than the right to receive the Fundamental Change Repurchase
Price, and previously accrued but unpaid interest, upon delivery of the
Securities), whether or not book-entry transfer of the Securities has been made
or the Securities have been delivered to the Trustee or Paying Agent.

 

(c)           Upon surrender of a Security
that is to be repurchased in part pursuant to Section 3.01, the Company
shall execute and the Trustee shall authenticate and deliver to the holder a
new Security in an authorized denomination equal in principal amount to the
unrepurchased portion of the Security surrendered.

 

25

 

ARTICLE 4

 

CONVERSION

 

Section 4.01.          Right to
Convert.

 

(a)           Upon compliance with the
provisions of this Indenture, a Holder of Securities shall have the right, at
such Holder’s option, to convert all or any portion (if the portion to be
converted is $1,000 principal amount or an integral multiple thereof) of such
Securities, at the applicable Conversion Rate then in effect, (x) prior to
the close of business on the Business Day immediately preceding April 15,
2014, only upon satisfaction of one or more of the conditions described in clauses
(i) through (iv) below and (y) on or after April 15, 2014,
at any time prior to the close of business on the second Scheduled Trading Day
immediately preceding July 15, 2014 irrespective of the conditions
described in clauses (i) through (iv) below.

 

(i)            Prior to the close of
business on the Business Day immediately preceding April 15, 2014, a
Holder of Securities may surrender all or a portion of its Securities for
conversion during any fiscal quarter (and only during such fiscal quarter)
commencing after September 30, 2009 if the Last Reported Sale Price of the
Common Stock for at least 20 Trading Days (whether or not consecutive) during
the period of 30 consecutive Trading Days ending on the last Trading Day of the
immediately preceding fiscal quarter is greater than or equal to 130% of the
applicable Conversion Price in effect on each applicable Trading Day.

 

(ii)           Prior to the close of
business on the Business Day immediately preceding April 15, 2014, a
Holder of Securities may surrender its Securities for conversion during the
five Business Day period after any 10 consecutive Trading Day period (the “Measurement Period”) in which the
Trading Price per $1,000 principal amount of Securities, as determined
following a request by a Holder of Securities in accordance with the procedures
set forth in this Section 4.01(a)(ii), for each Trading Day of such period
was less than 98% of the product of the Last Reported Sale Price of the Common
Stock and the applicable Conversion Rate (the “Trading Price Condition”). 
The Bid Solicitation Agent shall have no obligation to determine the
Trading Price of the Securities in accordance with this Section 4.01(a)(ii) unless
requested by the Company, and the Company shall have no obligation to make such
request unless a Holder of Securities provides the Company with reasonable
evidence that the Trading Price per $1,000 principal amount of Securities would
be less than 98% of the product of the Last Reported Sale Price of the Common
Stock and the applicable Conversion Rate. 
Promptly after receiving such evidence, the Company shall instruct the
Bid Solicitation Agent to determine the Trading Price of the Securities
beginning on the next Trading Day and on each successive Trading Day until the
Trading Price per $1,000 principal amount of Securities is greater than or
equal to 98% of the product of the Last Reported Sale Price of the Common Stock
and the applicable Conversion Rate.  If
the Company does not so instruct the Bid Solicitation Agent to obtain bids when
required, the Trading Price per $1,000 principal amount of the Securities will
be deemed to be less than 98% of the product of the Last Reported Sale Price of
the Common Stock and the applicable Conversion Rate on each day the Company
fails to do so.  If the Trading Price
Condition

 

26

 

has
been met, the Company shall so notify Holders, the Trustee and the Conversion
Agent.  If, at any time after the Trading
Price Condition has been met, the Trading Price per $1,000 principal amount of
Securities is greater than or equal to 98% of the product of the Last Reported
Sale Price of the Common Stock and the Conversion Rate for such date, the
Company shall so notify the holders of the Securities, the Trustee and the
Conversion Agent.

 

(iii)          If the Company elects to:

 

(A)          issue to all or
substantially all holders of Common Stock rights entitling them to purchase,
for a period expiring within 45 days after the announcement date of such
issuance, shares of Common Stock at less than the average of the Last Reported
Sale Prices of a share of Common Stock for the 10 consecutive Trading Day
period ending on the Trading Day preceding the announcement of such issuance;
or

 

(B)           distribute to all or
substantially all holders of Common Stock assets, debt securities or rights to
purchase securities of the Company, which distribution has a per share value,
as reasonably determined by the Board of Directors, exceeding 10% of the Last
Reported Sale Price of the Common Stock on the Trading Day preceding the
declaration date for such distribution,

 

then,
in each case, the Company shall notify the Holders of the Securities, in the
manner provided in Section 11.02 hereof, at least 25 Scheduled Trading
Days prior to the Ex-Dividend Date for such issuance. Once the Company has
given such notice, Holders may surrender Securities for conversion at any time
until the earlier of the close of business on the Business Day immediately
prior to such Ex-Dividend Date or the Company’s announcement that such issuance
or distribution will not take place, even if the Securities are not otherwise
convertible at such time. 
Notwithstanding the foregoing, a Holder of Securities may not convert
its Securities under the provisions of this Section 4.01(a)(iii) if
such Holder will participate in such issuance or distribution, at the same time
and upon the same terms as a holder of Common Stock, as if such Holder held,
for each $1,000 principal amount of Securities, a number of shares of Common
Stock equal to the Conversion Rate in effect immediately prior to the
Ex-Dividend Date.

 

(iv)          If a transaction or event
that constitutes a Fundamental Change or a Make-Whole Fundamental Change
occurs, regardless of whether a Holder has the right to require the Company to
purchase the Securities pursuant to Article 3 hereof, or if the Company is
a party to a consolidation, merger, binding share exchange, or sale, transfer
or lease of all or substantially all of the Company’s assets, in each case,
pursuant to which the Common Stock would be converted into cash, securities or
other assets, Holders may surrender Securities for conversion at any time from
or after the date which is 25 Scheduled Trading Days prior to the anticipated
effective date of such transaction until 35 Trading Days after the actual
effective date of such transaction (or, if such transaction also constitutes a
Fundamental Change, until the related Fundamental Change Repurchase Date).  The Company shall notify Holders and the
Trustee as promptly as practicable following the date the Company publicly
announces such transaction, but in

 

27

 

no
event less than 25 Scheduled Trading Days prior to the anticipated effective
date of such transaction (it being understood and agreed that the public
announcement by the Company of any such transaction or event within the
required time period shall satisfy in full the Company’s obligation to so
notify Holders of the Securities).

 

(b)           Securities may not be
converted after the close of business on the second Scheduled Trading Day
immediately preceding July 15, 2014.

 

Section 4.02.          Conversion Procedures.

 

(a)           In order to exercise the
conversion privilege with respect to any interest in a Global Security, the
Holder must complete the appropriate instruction form for conversion pursuant
to the Applicable Procedures of the Depositary, furnish appropriate
endorsements and transfer documents if required by the Company or the Trustee
or Conversion Agent, and pay the funds, if any, required by Section 4.03(e) and
any taxes or duties if required pursuant to Section 4.07 and the Trustee
or Conversion Agent must be informed of the conversion in accordance with the
Applicable Procedures of the Depositary. 
In order to exercise the conversion privilege with respect to any
Certificated Securities, the Holder of any such Securities to be converted, in
whole or in part, shall:

 

(i)    complete and manually sign
the conversion notice provided on the back of the Security (the “Conversion
Notice”) or a facsimile of the Conversion Notice;

 

(ii)   deliver the Conversion
Notice, which is irrevocable, and the Security to the Conversion Agent;

 

(iii)  if required, furnish
appropriate endorsements and transfer documents,

 

(iv)  make any payment required
under Section 4.03(e); and

 

(v)   if required, pay all
transfer or similar taxes as set forth in Section 4.07.

 

The date on which the Holder
satisfies all of the applicable requirements set forth above is the “Conversion
Date.”  A Security shall be deemed to
have been converted immediately prior to the close of business on the
Conversion Date.  The Conversion Agent
will, as promptly as possible, and in any event within one Business Day,
provide the Company with notice of any conversion by Holders of the Securities.

 

(b)        Each Conversion Notice shall
state the name or names (with address or addresses) in which any certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued.  All such
Securities surrendered for conversion shall, unless the shares issuable on
conversion are to be issued in the same name as the registration of such
Securities, be duly endorsed by, or be accompanied by instruments of transfer
in form satisfactory to the Company duly executed by, the Holder or his duly
authorized attorney.

 

(c)        In case any Securities of a
denomination greater than $1,000 shall be surrendered for partial conversion,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of the Securities so surrendered, without charge, new Securities in
authorized

 

28

 

denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered
Securities.

 

Each conversion shall be
deemed to have been effected as to any such Securities (or portion thereof)
surrendered for conversion on the relevant Conversion Date.  The Person in whose name the certificate for
any shares of Common Stock delivered upon conversion is registered shall be
treated as a stockholder of record as of the close of business on the relevant
Conversion Date (if the Company elects in accordance with the provisions of Section 4.03(c) to
satisfy the related Conversion Obligation solely in shares of Common Stock) or
the last Trading Day of the related Cash Settlement Averaging Period (in the
case of any other Settlement Method elected (or deemed elected) by the Company
in accordance with the provisions of Section 4.03(c)); provided, however,
if such Conversion Date or such last Trading Day of the Cash Settlement
Averaging Period occurs on any date when the stock transfer books of the
Company shall be closed, such occurrence shall not be effective to constitute
the Person or Persons entitled to receive any such shares of Common Stock due
upon conversion as the record holder or holders of such shares of Common Stock
on such date, but such occurrence shall be effective to constitute the Person
or Persons entitled to receive such shares of Common Stock as the record holder
or holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open. Upon conversion of
Securities, such Person shall no longer be a Holder of Securities.

 

(d)        Upon the conversion of an
interest in Global Securities, the Trustee (or other Conversion Agent appointed
by the Company) shall make a notation on such Global Securities as to the
reduction in the principal amount represented thereby. The Company shall notify
the Trustee in writing of any conversions of Securities effected through any
Conversion Agent other than the Trustee.

 

(e)        Notwithstanding the
foregoing, a Security in respect of which a Holder has delivered a Fundamental
Change Repurchase Notice exercising such Holder’s option to require the Company
to purchase such Securities may be converted only if such notice of exercise is
withdrawn in accordance with Article 3 hereof prior to the close of
business on the Business Day prior to the relevant Fundamental Change
Repurchase Date.

 

Section 4.03.          Settlement Upon
Conversion.

 

(a)           Upon any conversion of any
Security, the Company shall pay and/or deliver to converting Holders, in
respect of each $1,000 principal amount of Securities being converted, the
Settlement Amount specified in Section 4.03(b) on the applicable day
specified in Section 4.03(d).

 

(b)           The “Settlement Amount” in
respect of any conversion of Securities shall be the amount of shares of Common
Stock or cash or combination thereof determined as follows:

 

(i)            if the Company elects as its
Settlement Method in accordance with the provisions of Section 4.03(c) to
settle its Conversion Obligation in respect of such conversion solely by
delivering shares of Common Stock, the Company will deliver to the converting
Holder a number of shares of Common Stock equal to (1)(i) the aggregate

 

29

 

principal
amount of Securities to be converted, divided
by (ii) $1,000, multiplied
by (2) the then-applicable Conversion Rate;

 

(ii)           if the Company elects as its
Settlement Method in accordance with the provisions of Section 4.03(c) to
satisfy its Conversion Obligation in respect of such conversion by paying
solely cash, the Company shall pay to the converting Holder, cash in an amount
per $1,000 principal amount of Securities being converted equal to the sum of
the Daily Conversion Values for each of the 20 consecutive Trading Days during
the related Cash Settlement Averaging Period; and

 

(iii)          if the Company elects as its
Settlement Method in accordance with the provisions of Section 4.03(c) to
satisfy its Conversion Obligation in respect of such conversion by paying and
delivering, as the case may be, a combination of cash and shares of Common
Stock, if any, the Company shall pay and deliver to the converting Holder, as
the case may be, in respect of each $1,000 principal amount of Securities being
converted, cash and shares of Common Stock, if any, in an amount equal to the
sum of the Daily Settlement Amounts for each of the 20 consecutive Trading Days
during the related Cash Settlement Averaging Period.

 

For
purposes of determining the Settlement Amount only, “Trading Day” means a day
during which trading in the Common Stock generally occurs on the primary
exchange or quotation system on which the Common Stock then trades or is quoted
and there is no Market Disruption Event.

 

(c)           With respect to each
conversion of Securities, the Company shall elect whether it will satisfy the
related Conversion Obligation (x) by delivering solely shares of Common
Stock, (y) by paying solely cash or (z) by paying or delivering, as
the case may be, cash and shares of Common Stock (each, a “Settlement Method”).

 

(i)            With respect to any
Conversion Date occurring prior to April 15, 2014, the Company shall elect
a Settlement Method and deliver to converting Holders a related Settlement
Notice no later than the second Business Day immediately following the relevant
Conversion Date (it being understood that, prior to April 15, 2014, the
Company may elect only a single Settlement Method for a given Conversion Date
but may elect different Settlement Methods for Conversion Dates occurring on
different dates).

 

(ii)           With respect to each
Conversion Date occurring during the period commencing on and including April 15,
2014 and ending on and including the second Scheduled Trading Day preceding the
Maturity Date, the Company shall elect a single Settlement Method applicable to
all conversions during such period and deliver to all Holders the related
Settlement Notice prior to April 15, 2014.

 

(iii)          Each Settlement Notice shall
specify the Settlement Method that the Company has elected and the manner in
which the Settlement Amount shall be calculated in accordance with the
provisions of Section 4.03(b).  If
in connection with any conversion of Securities the Company elects as its
Settlement Method to pay and deliver,

 

30

 

as
the case may be, a combination of cash and shares of Common Stock, such
Settlement Notice shall also designate the Specified Dollar Amount.

 

(iv)          If in connection with any
conversion of Securities:

 

(x)            the Company does not deliver
a Settlement Notice within the time period required by Section 4.03(c)(i) or
4.03(c)(ii), as the case may be; or

 

(y)           the Company delivers a
Settlement Notice within the time period required by Section 4.03(c)(i) or
4.03(c)(ii), as the case may be, but such Settlement Notice does not include
the Specified Dollar Amount in the event that the Company shall have elected to
satisfy its Conversion Obligation through the payment and delivery of a
combination of cash and shares of Common Stock,

 

then,
in either case, the Company will be deemed to have elected to deliver a
combination of cash and shares of Common Stock in respect of its Conversion
Obligation and the Specified Dollar Amount shall be deemed to be equal to
$1,000.

 

(d)           The Company shall pay or
deliver, as the case may be, the cash, shares of Common Stock or combination
thereof in respect of any relevant Conversion Obligation on the third Trading
Day immediately following the last Trading Day of the applicable Cash
Settlement Averaging Period; provided that

 

(i)            if the Company elects to
fulfill its Conversion Obligation solely in shares of Common Stock, or

 

(ii)           if prior to the relevant
Conversion Date, the Common Stock has been replaced by Reference Property
consisting solely of cash, pursuant to Section 4.06,

 

then, in either case, the Company shall pay the cash amounts owing on
the third Trading Day immediately following the relevant Conversion Date.  Notwithstanding the foregoing, if any
information required to calculate the Conversion Obligation is not available as
of the applicable date on which the consideration in respect of the Conversion
Obligation shall be payable and/or deliverable, the Company will deliver the
additional consideration resulting from such adjustment on the third Trading
Day after the earliest Trading Day on which such calculation can be made.

 

If
any shares of Common Stock are due to converting Holders, the Company shall
issue or cause to be issued, and deliver to the Conversion Agent or to such
Holder, or such Holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the number of full shares of Common Stock
to which such Holder shall be entitled in satisfaction of such Conversion
Obligation.

 

(e)           Upon conversion, a Holder
shall not receive any additional cash payment for accrued and unpaid interest
except as set forth below. The Company’s settlement of the Conversion
Obligations pursuant to Section 4.02 shall be deemed to satisfy its
obligation to pay the principal amount of the Security and accrued and unpaid
interest to, but not including, the Conversion Date. As a result, accrued and
unpaid interest to, but not including, the Conversion

 

31

 

Date shall be deemed to be
paid in full rather than cancelled, extinguished or forfeited. Notwithstanding
the preceding sentence, if Securities are converted after the close of business
on a Regular Record Date, Holders of such Securities as of the close of
business on the Regular Record Date will receive the interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion. Securities surrendered for conversion during the period from the
close of business on any Regular Record Date to the opening of business on the
corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest payable on the Securities so converted; provided, however,
that no such payment shall be required (1) if the Company has specified a
Fundamental Change Repurchase Date that is after a Regular Record Date but on
or prior to the corresponding Interest Payment Date, (2) to the extent of
any Defaulted Interest, if any, existing at the time of conversion with respect
to such Securities or (3) if the Securities are surrendered for conversion
after the close of business on the Regular Record Date immediately preceding
the Maturity Date. Except as set forth in this Section 4.03(e), no payment
or adjustment will be made for accrued and unpaid interest on converted
Securities.

 

(f)            The Company shall not issue
fractional shares of Common Stock upon conversion of Securities. Instead, the
Company shall pay cash in lieu of fractional shares based on the Daily VWAP on
the relevant Conversion Date (if the Company elects to satisfy its Conversion
Obligation solely in shares of Common Stock in accordance with the provisions
of clause (i) of Section 4.03(b)) or based on the Daily VWAP on the
last Trading Day of the relevant Cash Settlement Averaging Period (in the case
of any other Settlement Method).  The
number of full shares that shall be issued upon conversion of Securities by a
Holder thereof shall be computed on the basis of the aggregate principal amount
of the Securities (or specified portions thereof) so surrendered.  If the Company has elected to deliver a
combination of cash and shares of Common Stock in respect of its Conversion
Obligation in accordance with the provisions of clause (iii) of Section 4.03(b),
the provisions of the preceding sentence shall apply and the number of full shares
that shall be issued upon conversion thereof shall be computed on the basis of
the aggregate Daily Settlement Amounts for the applicable Cash Settlement
Averaging Period and any fractional shares remaining after such computation
shall be paid in cash.

 

Section 4.04.          Increased Conversion Rate
Applicable to Securities Surrendered in Connection with Make-Whole Fundamental
Changes.

 

(a)           If a Holder elects to
convert its Securities at any time from and including the Effective Date of a
Make-Whole Fundamental Change until, and including, the close of business on
the second Scheduled Trading Day immediately preceding the related Fundamental
Change Repurchase Date corresponding to such Make-Whole Fundamental Change, or
the 35th Business Day immediately following the Effective Date of such
Make-Whole Fundamental Change (in the case of a Make-Whole Fundamental Change
that does not constitute a Fundamental Change) (such period, the “Make-Whole
Fundamental Change Period”), the applicable Conversion Rate shall be increased
by an additional number of shares of Common Stock (the “Additional Shares”) as
described in this Section 4.04.

 

(b)           The number of Additional
Shares by which the Conversion Rate will be increased for conversions that
occur during the Make-Whole Fundamental Change Period will be determined by
reference to the table set forth below, based on the date on which the Make-

 

32

 

Whole Fundamental Change
occurs or becomes effective (the “Effective Date”) and the price (the “Stock
Price”) paid (or deemed paid) per share of the Company’s Common Stock in the
Make-Whole Fundamental Change.  If
holders of Common Stock receive only cash in a Make-Whole Fundamental Change
described in clause (b) of the definition of Fundamental Change, the Stock
Price shall be the cash amount paid per share of Common Stock.  In the case of any other Make-Whole
Fundamental Change, the Stock Price shall be the average of the Last Reported
Sale Prices of the Common Stock over the 10 consecutive Trading-Day period
ending on and including the Trading Day preceding the Effective Date of the
Make-Whole Fundamental Change.

 

(c)           The following table sets
forth the number of Additional Shares, if any, by which the Conversion Rate
will be increased for each Stock Price and Effective Date set forth in the
table below:

 

Make-Whole
Conversion Rate Adjustment

(per $1,000 principal amount of Securities)

 

	
   

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $12.37

  	
   

  	
  $15.00

  	
   

  	
  $17.50

  	
   

  	
  $20.00

  	
   

  	
  $25.00

  	
   

  	
  $30.00

  	
   

  	
  $40.00

  	
   

  	
  $50.00

  	
   

  	
  $60.00

  	
   

  	
  $80.00

  	
   

  
	
  Jul 14, 2009

  	
   

  	
  16.1681

  	
   

  	
  11.8094

  	
   

  	
  9.4106

  	
   

  	
  7.8689

  	
   

  	
  6.0238

  	
   

  	
  4.9654

  	
   

  	
  3.7198

  	
   

  	
  2.9931

  	
   

  	
  2.5112

  	
   

  	
  1.9115

  	
   

  
	
  Jul 15, 2010

  	
   

  	
  16.1681

  	
   

  	
  10.9352

  	
   

  	
  8.4161

  	
   

  	
  6.8803

  	
   

  	
  5.1407

  	
   

  	
  4.2163

  	
   

  	
  3.1482

  	
   

  	
  2.5312

  	
   

  	
  2.1233

  	
   

  	
  1.6141

  	
   

  
	
  Jul 15, 2011

  	
   

  	
  16.1681

  	
   

  	
  9.9752

  	
   

  	
  7.2520

  	
   

  	
  5.7126

  	
   

  	
  4.1189

  	
   

  	
  3.3462

  	
   

  	
  2.4913

  	
   

  	
  2.0006

  	
   

  	
  1.6763

  	
   

  	
  1.2700

  	
   

  
	
  Jul 15, 2012

  	
   

  	
  16.1681

  	
   

  	
  8.6684

  	
   

  	
  5.7020

  	
   

  	
  4.2036

  	
   

  	
  2.8855

  	
   

  	
  2.3233

  	
   

  	
  1.7256

  	
   

  	
  1.3817

  	
   

  	
  1.1529

  	
   

  	
  0.8671

  	
   

  
	
  Jul 15, 2013

  	
   

  	
  16.1681

  	
   

  	
  6.5635

  	
   

  	
  3.4703

  	
   

  	
  2.2542

  	
   

  	
  1.4999

  	
   

  	
  1.2274

  	
   

  	
  0.9239

  	
   

  	
  0.7436

  	
   

  	
  0.6233

  	
   

  	
  0.4728

  	
   

  
	
  Jul 15, 2014

  	
   

  	
  16.1681

  	
   

  	
  1.9940

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

The
exact Stock Prices and Effective Dates may not be set forth in the table above,
in which case:

 

(i)            If the Stock Price is
between two Stock Prices in the table or the Effective Date is between two
Effective Dates in the table, the number of Additional Shares shall be
determined by a straight-line interpolation between the number of Additional
Shares set forth for the higher and lower Stock Prices and the earlier and
later Effective Dates, as applicable, based on a 365-day year.

 

(ii)           If the Stock Price is
greater than $80.00 per share (subject to adjustment in the same manner as the
Stock Prices set forth in the table above pursuant to Section 4.04(d) above),
no Additional Shares shall be added to the Conversion Rate.

 

(iii)          If the Stock Price is less
than $12.37 per share (subject to adjustment in the same manner as the Stock
Prices set forth in the table above pursuant to Section 4.04(d) above),
no Additional Shares shall be added to the Conversion Rate.

 

Notwithstanding the foregoing, in no event shall the Conversion Rate
exceed 80.8407 shares of Common Stock per $1,000 principal amount of
Securities, subject to adjustments in the same manner as the Conversion Rate as
set forth in Section 4.05.

 

(d)           The Stock Prices set forth
in the first row of the table (i.e., column headers) in Section 4.04(c) shall
be adjusted as of any date on which the Conversion Rate of the Securities is

 

33

 

otherwise adjusted.  The adjusted Stock Prices shall equal the
Stock Prices applicable immediately prior to such adjustment, multiplied by a
fraction, the numerator of which is the Conversion Rate immediately prior to
such adjustment and the denominator of which is the Conversion Rate as so
adjusted.  The number of Additional
Shares set forth in such table shall be adjusted in the same manner as the
Conversion Rate as set forth in Section 4.05.

 

(e)           As soon as practicable after
the Effective Date of any Make-Whole Fundamental Change but in no event later
than five Trading Days after such Effective Date, the Company shall mail to
each Holder, the Trustee and the Conversion Agent written notice of, and shall
issue a press release announcing, the Effective Date of such Make-Whole
Fundamental Change and make such press release available on the Company’s web
site.  If applicable, such notice and
press release shall also specify the amount, if any, by which the Conversion
Rate shall be increased in accordance with the provisions of this Section 4.04
and the period in which Securities may be converted at the increased Conversion
Rate.

 

(f)            Nothing in this Section 4.04
shall prevent an adjustment to the Conversion Rate pursuant to Section 4.05.

 

(g)           If a Holder elects to
convert Securities prior to the Effective Date of the Fundamental Change, such
Holder shall not be entitled to any adjustment to the Conversion Rate or any
Additional Shares under this Section 4.04 in connection with such
conversion.

 

Section 4.05.          Adjustment of Conversion
Rate.

 

The
Conversion Rate shall be adjusted from time to time by the Company if any of
the following events occurs, except that the Company will not make any
adjustment to the Conversion Rate if Holders of Securities participate, as a
result of holding the Securities, in any of the transactions described in this Section 4.05,
at the same time as holders of the Common Stock participate, without having to
convert their Securities as if such Holders held, for each $1,000 principal amount
of Securities, a number of shares of Common Stock equal to the Conversion Rate
in effect at the time any such adjustment would otherwise be required.

 

(a)           If the Company issues solely
shares of Common Stock as a dividend or distribution on all or substantially
all of the shares of Common Stock, or if the Company effects a share split or
share combination of the Common Stock, the applicable Conversion Rate will be
adjusted based on the following formula:

 

	
  CR
  = CR0 x
  OS

  
	
                         OS0

  

 

where

 

CR0 =    the applicable
Conversion Rate in effect immediately prior to the open of business on the
Ex-Dividend Date for such dividend or distribution, or immediately prior to the
open of business on the effective date of such share split or share combination,
as the case may be;

 

34

 

CR
=      the applicable Conversion
Rate in effect immediately after the open of business on the Ex-Dividend Date
for such dividend or distribution, or immediately after the open of business on
the effective date of such share split or share combination, as the case may
be;

 

OS0  =   the number of
shares of Common Stock outstanding immediately prior to the open of business on
the Ex-Dividend Date for such dividend or distribution, or immediately prior to
the open of business on the effective date of such share split or share
combination, as the case may be; and

 

OS
=      the number of shares of
Common Stock outstanding immediately after such dividend or distribution, or
immediately after the effective date of such share split or share combination,
as the case may be.

 

Such
adjustment shall become effective immediately after the opening of business on
the Ex-Dividend Date for such dividend or distribution, or the effective date
for such share split or share combination. If any dividend or distribution of
the type described in this Section 4.05(a) is declared but not so
paid or made, or the outstanding shares of Common Stock are not split or
combined, as the case may be, the Conversion Rate shall be immediately
readjusted, effective as of the date the Board of Directors determines not to
pay such dividend or distribution, or split or combine the outstanding shares
of Common Stock, as the case may be, to the Conversion Rate that would then be
in effect if such dividend, distribution, share split or share combination had
not been declared or announced.

 

(b)           If the Company distributes
to all or substantially all holders of its Common Stock any rights, options or
warrants entitling them for a period of not more than 60 calendar days from the
record date for such distribution to subscribe for or purchase shares of the
Common Stock, at a price per share less than the average of the Last Reported
Sale Prices of the Common Stock for the ten consecutive Trading Day period
ending on, and including, the Trading Day immediately preceding the declaration
date for such distribution, the Conversion Rate shall be increased based on the
following formula:

 

	
  CR
  = CR0 x

  	
  OS0 + X

  
	
   

  	
   

  
	
   

  	
  OS0 + Y

  

 

where

 

CR0 =       the applicable Conversion Rate in effect immediately
prior to the open of business on the Ex-Dividend Date for such distribution;

 

CR
=        the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such distribution;

 

OS0 =       the number of shares of the Common Stock that are
outstanding immediately prior to the open of business on the Ex-Dividend Date
for such distribution;

 

X
=           the total
number of shares of the Common Stock issuable pursuant to such rights, options
or warrants; and

 

35

 

Y
=           the number of
shares of the Common Stock equal to the aggregate price payable to exercise
such rights, options or warrants, divided by the average of the Last Reported
Sale Prices of Common Stock over the ten consecutive Trading Day period ending
on, and including, the Trading Day immediately preceding the Ex-Dividend Date
relating to such distribution of such rights, options or warrants.

 

Such
adjustment shall be successively made whenever any such rights, options or
warrants are distributed and shall become effective immediately after the
opening of business on the Ex-Dividend Date for such distribution.  To the extent that shares of the Common Stock
are not delivered after the expiration of such rights, options or warrants, the
Conversion Rate shall be readjusted to the Conversion Rate that would then be
in effect had the adjustments made upon the issuance of such rights, options or
warrants been made on the basis of delivery of only the number of shares of
Common Stock actually delivered. If such rights, options or warrants are not so
issued, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such Ex-Dividend Date for such distribution had
not been fixed.

 

For
purposes of this Section 4.05(b), in determining whether any rights,
options or warrants entitle the holders to subscribe for or purchase shares of
the Common Stock at less than the average of the Last Reported Sale Prices of
the Common Stock for each Trading Day in the applicable ten-consecutive-Trading
Day period, there shall be taken into account any consideration received by the
Company for such rights, options or warrants and any amount payable on exercise
or conversion thereof, the value of such consideration, if other than cash, to
be determined by the Board of Directors.

 

(c)           If the Company shall
distribute shares of its Capital Stock, evidences of its indebtedness or other
of its assets or property to all or substantially all holders of its Common
Stock other than (i) dividends or distributions (including share splits)
or rights, options or warrants covered by Section 4.05(a) or Section 4.05(b),
(ii) dividends or distributions paid exclusively in cash, and (iii) Spin-Offs
to which the provisions set forth below in this Section 4.05(c) shall
apply, then, in each such case the Conversion Rate shall be increased based on
the following formula:

 

	
  CR
  = CR0 x

  	
  SP0

  
	
   

  	
   

  
	
   

  	
  SP0 - FMV

  

 

where

 

CR0 =       the applicable Conversion Rate in effect immediately
prior to the open of business on the Ex-Dividend Date for such distribution;

 

CR
=        the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such distribution.

 

SP0 =       the average of the Last Reported Sale Prices of the
Common Stock over the ten consecutive Trading Day period ending on, and
including, the Trading Day immediately preceding the Ex-Dividend Date for such
distribution; and

 

36

 

FMV =   the fair market value (as
determined by the Board of Directors) of the shares of Capital Stock, evidences
of indebtedness, assets or property distributed with respect to each
outstanding share of the Common Stock as of the open of business on the
Ex-Dividend Date for such distribution.

 

Such
adjustment shall become effective immediately after the opening of business on
the Ex-Dividend Date for such distribution; provided
that if “FMV” as set forth above is equal to or greater than “SP0” as set forth above, in
lieu of the foregoing adjustment, adequate provisions shall be made so that
each Holder shall have the right to receive on conversion in respect of each
$1,000 principal amount of the Securities held by such holder, in addition to
the cash, shares of Common Stock or combination thereof to which such Holder
shall be entitled, the amount and kind of shares of the Company’s Capital
Stock, evidences of the Company’s indebtedness or other of the Company’s assets
or property such holder would have received had such holder owned a number of
shares of Common Stock equal to the Conversion Rate immediately prior to the
record date for such distribution. If such distribution is not so paid or made,
the Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. If
the Board of Directors determines “FMV” for purposes of this Section 4.05(c) by
reference to the actual or when issued trading market for any securities, it
must in doing so consider the prices in such market over the same period used
in computing the Last Reported Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Dividend Date for such distribution.

 

With
respect to an adjustment pursuant to this Section 4.05(c) where there
has been a dividend or other distribution on all or substantially all shares of
the Common Stock of shares of Capital Stock of any class or series, or similar
equity interest, of or relating to a Subsidiary or other business unit of the
Company that are or will be when issued listed on a securities exchange (a “Spin-Off”),
the Conversion Rate will be increased based on the following formula:

 

	
  CR
  = CR0 x
  

  	
  FMV
  + MP0

  
	
   

  	
   

  
	
   

  	
  MP0

  

 

where

 

CR0 =       the applicable Conversion Rate in effect immediately
prior to the open of business on the Ex-Dividend Date for the Spin-Off;

 

CR
=        the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for the Spin-Off;

 

FMV0 =      the average of the Last Reported Sale Prices of the
Capital Stock or similar equity interest distributed to holders of the Common
Stock applicable to one share of the Common Stock over the first ten
consecutive Trading Day period immediately following, and including, the
Ex-Dividend Date for the Spin-Off (such period, the “Valuation Period”), and

 

37

 

MP0 =      the average of the Last Reported Sale Prices of the
Common Stock over the Valuation Period.

 

The
adjustment to the Conversion Rate under the preceding paragraph of this Section 4.05(c) shall
be made immediately after the opening of business on the day after the last day
of the Valuation Period, but shall become effective as of the opening of business
on the Ex-Dividend Date for the Spin-Off. If the Ex-Dividend Date for the
Spin-Off is less than ten Trading Days prior to, and including, the end of the
Cash Settlement Averaging Period in respect of any conversion, references
within this Section 4.05(c) to ten Trading Days shall be deemed
replaced, for purposes of calculating the affected daily Conversion Rates in
respect of that conversion, with such lesser number of Trading Days as have
elapsed from, and including, the Ex-Dividend Date for the Spin-Off to, and
including, the last Trading Day of such Cash Settlement Averaging Period. For
purposes of determining the applicable Conversion Rate, in respect of any
conversion during the ten Trading Days commencing on the Ex- Dividend Date of
any Spin-Off, references in the portion of this Section 4.05(c) related
to Spin-Offs to ten Trading Days shall be deemed replaced with such lesser
number of Trading Days as have elapsed from, and including, the Ex-Dividend
Date for such Spin-Off to, but excluding, the Conversion Date for such
conversion.

 

For
the purposes of this Section 4.05(c) (and subject in all respect to Section 4.11),
rights, options or warrants distributed by the Company to all holders of its
Common Stock entitling the holders thereof to subscribe for or purchase shares
of the Company’s Capital Stock, including Common Stock (either initially or
under certain circumstances), which rights, options or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (i) are
deemed to be transferred with such shares of the Common Stock; (ii) are
not exercisable; and (iii) are also issued in respect of future issuances
of the Common Stock, shall be deemed not to have been distributed for purposes
of this Section 4.05 (and no adjustment to the Conversion Rate under this Section 4.05
will be required) until the occurrence of the earliest Trigger Event, whereupon
such rights and warrants shall be deemed to have been distributed and an
appropriate adjustment (if any is required) to the Conversion Rate shall be
made under this Section 4.05(c). If any such right, option or warrant,
including any such existing rights, options or warrants distributed prior to
the date of this Indenture, are subject to events, upon the occurrence of which
such rights, options or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the
occurrence of any and each such event shall be deemed to be the date of
distribution and Ex-Dividend Date with respect to new rights, options or
warrants with such rights (and a termination or expiration of the existing
rights, options or warrants without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights,
options or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto that was counted for purposes
of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 4.05(c) was made, (1) in the case of any
such rights, options or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, upon such final redemption
or repurchase (x) the Conversion Rate shall be readjusted as if such
rights, options or warrants had not been issued and (y) the Conversion
Rate shall then again be readjusted to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights, options or warrants (assuming

 

38

 

such holder had retained such rights or warrants), made to all holders
of Common Stock as of the date of such redemption or repurchase, and (2) in
the case of such rights, options or warrants that shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall
be readjusted as if such rights, options and warrants had not been issued.

 

For
purposes of this Section 4.05(c), Section 4.05(a), and Section 4.05(b),
any dividend or distribution to which this Section 4.05(c) is
applicable that also includes shares of Common Stock to which Section 4.05(a) applies,
or rights, options or warrants to subscribe for or purchase shares of Common
Stock to which Section 4.05(b) applies (or both), shall be deemed
instead to be (1) a dividend or distribution of the evidences of
indebtedness, assets or shares of capital stock other than such shares of
Common Stock or rights, options or warrants to which Section 4.05(c) applies
(and any Conversion Rate adjustment required by this Section 4.05(c) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock
or such rights, options or warrants (and any further Conversion Rate adjustment
required by Section 4.05(a) and Section 4.05(b) with
respect to such dividend or distribution shall then be made), except that if
determined by the Company (A) “the Ex-Dividend Date for such distribution”
and “the Ex-Dividend Date relating to such distribution of such rights, options
or warrants” within the meaning of Section 4.05(a) and Section 4.05(b),
as the case may be, shall be deemed to be the Ex-Dividend Date for such
dividend or distribution for purposes of Section 4.04(c), and (B) any
shares of Common Stock included in such dividend or distribution shall not be
deemed “outstanding immediately prior to the open of business on the
Ex-Dividend Date for such dividend or distribution, or immediately prior to the
open of business on the effective date of such share split or share
combination, as the case may be” within the meaning of Section 4.05(a) or
“outstanding immediately prior to the Ex-Dividend Date for such dividend or
distribution” within the meaning of Section 4.05(b).

 

(d)           If the Company shall make or
pay any cash dividend or distribution to all or substantially all holders of
its outstanding Common Stock in an amount per share of Common Stock that
exceeds the Dividend Threshold Amount, the applicable Conversion Rate shall be
increased based on the following formula:

 

	
  CR
  = CR0 x
  

  	
  SP0

  
	
   

  	
   

  
	
   

  	
  SP0 - C

  

 

where

 

CR0 =       the applicable Conversion Rate in effect immediately
prior to the open of business on the Ex-Dividend Date for such dividend or
distribution;

 

CR
=        the applicable
Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution;

 

SP0 =        the average of the Last Reported Sale Prices of the
Common Stock over the ten consecutive Trading Day period ending on, and
including, the Trading Day immediately preceding the Ex-Dividend Date for such
dividend or distribution; and

 

39

 

C
=           the amount in
cash per share the Company pays or distributes to holders of its Common Stock
in excess of the Dividend Threshold Amount (which Dividend Threshold Amount
will be deemed to be zero if the dividend or distribution is not a regular
quarterly cash dividend).

 

The
“Dividend Threshold Amount” is initially $0.04 and is subject to adjustment in
a manner inversely proportional to adjustments to the conversion rate; provided that no adjustment will be made
to the dividend threshold amount for any adjustment to the conversion rate
under this Section 4.05(d).

 

Such
adjustment shall become effective immediately after the opening of business on
the Ex-Dividend Date for such dividend or distribution; provided that if “C” as set forth above is
equal to or greater than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive on
the date on which the relevant cash dividend or distribution is distributed to
holders of Common Stock, for each $1,000 principal amount of Securities, the
amount of cash such holder would have received had such holder owned a number
of shares equal to the Conversion Rate on the record date for such
distribution. If such dividend or distribution is not so paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

 

For
the avoidance of doubt, for purposes of this Section 4.05(d), in the event
of any reclassification of the Common Stock, as a result of which the
Securities become convertible into more than one class of Common Stock, if an
adjustment to the Conversion Rate is required pursuant to this Section 4.05(d),
references in this Section to one share of Common Stock or Last Reported
Sale Prices of one share of Common Stock shall be deemed to refer to a unit or
to the price of a unit consisting of the number of shares of each class of Common
Stock into which the Securities are then convertible equal to the numbers of
shares of such class issued in respect of one share of Common Stock in such
reclassification. The above provisions of this paragraph shall similarly apply
to successive reclassifications.

 

(e)           If the Company or any of its
Subsidiaries makes a payment in respect of a tender offer or exchange offer for
the Common Stock and if the cash and value of any other consideration included
in the payment per share of the Common Stock exceeds the Last Reported Sale
Price of the Common Stock on the Trading Day next succeeding the last date on
which tenders or exchanges may be made pursuant to such tender or exchange
offer (the “Expiration Date”), the Conversion Rate shall be increased based on
the following formula:

 

	
  CR
  = CR0 x
  

  	
  AC
  + (SP x OS)

  
	
   

  	
  OS0 x SP

  

 

where

 

CR0  =    the applicable
Conversion Rate in effect immediately prior to the open of business on the
Trading Day next succeeding the Expiration Date;

 

40

 

CR =                       the applicable
Conversion Rate in effect immediately after the open of business on the Trading
Day next succeeding the Expiration Date;

 

AC =                     the aggregate
value of all cash and any other consideration (as determined by the Board of
Directors) paid or payable for shares of Common Stock purchased in such tender
or exchange offer;

 

OS0 =                   the number of shares of
Common Stock outstanding immediately prior to the time (the “Expiration Time”)
such tender or exchange offer expires (prior to giving effect to such tender
offer or exchange offer);

 

OS =                       the number of
shares of Common Stock outstanding immediately after the Expiration Time (after
giving effect to such tender offer or exchange offer); and

 

SP =                         the average of
the Last Reported Sale Prices of Common Stock over the ten consecutive Trading
Day period commencing on, and including, the Trading Day next succeeding the
Expiration Date.

 

Such
adjustment under this Section 4.05(e) shall become effective at the
opening of business on the Trading Day next succeeding the Expiration Date. If
the Trading Day next succeeding the Expiration Date is less than ten Trading
Days prior to, and including, the end of the Cash Settlement Averaging Period
in respect of any conversion, references within this Section 4.05(e) to
ten Trading Days shall be deemed replaced, for purposes of calculating the
affected daily Conversion Rates in respect of that conversion, with such lesser
number of Trading Days as have elapsed from, and including, the Trading Day
next succeeding the Expiration Date to, and including, the last Trading Day of
such Cash Settlement Averaging Period. For purposes of determining the
applicable Conversion Rate, in respect of any conversion during the ten Trading
Days commencing on the Trading Day next succeeding the Expiration Date,
references within this Section 4.05(e) to ten Trading Days shall be
deemed replaced with such lesser number of Trading Days as have elapsed from,
and including, the Trading Day next succeeding the Expiration Date to, but
excluding, the Conversion Date for such conversion. If the Company is obligated
to purchase shares pursuant to any such tender or exchange offer, but the
Company is permanently prevented by applicable law from effecting any or all or
any portion of such purchases or all such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such tender or exchange offer had not been made or had
been made only in respect of the purchases that had been effected. In no event
shall the Conversion Rate be decreased pursuant to this Section 4.05(e).

 

(f)                                    For purposes of
this Section 4.05, the term “record date” means, with respect to any
dividend, distribution or other transaction or event in which the holders of Common
Stock (or other security) have the right to receive any cash, securities or
other property or in which the Common Stock (or other applicable security) is
exchanged for or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive
such cash, securities or other property (whether such date is fixed by the
Board of Directors or by statute, contract or otherwise).

 

41

 

(g)                                 In addition to
those required by clauses (a), (b), (c), (d) and (e) of this Section 4.05,
and to the extent permitted by applicable law and subject to the applicable rules of
the New York Stock Exchange, the Company from time to time may increase the
Conversion Rate by any amount for a period of at least twenty Business Days if
the Board of Directors determines that such increase would be in the Company’s
best interest.  Whenever the Conversion
Rate is increased pursuant to the preceding sentence, the Company shall mail to
the holder of each Security at its last address appearing on the register for
the Securities maintained by the Primary Registrar a notice of the increase at
least five days prior to the date the increased Conversion Rate takes effect,
and such notice shall state the increased Conversion Rate and the period during
which it will be in effect.

 

(h)                                 The Company may
(but is not required to) increase the Conversion Rate to avoid or diminish any
income tax to holders of Common Stock or rights to purchase Common Stock in
connection with any dividend or distribution of shares (or rights to acquire
shares) or similar event.  Whenever the
Conversion Rate is increased pursuant to the preceding sentence, the Company shall
mail to the holder of each Security at its last address appearing on the
register for the Securities maintained by the Primary Registrar a notice of the
increase at least five days prior to the date the increased Conversion Rate
takes effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect.

 

(i)                                     All
calculations and other determinations under this Article 4 shall be made
by the Company and shall be made to the nearest one-ten thousandth (1/10,000)
of a share. The Company shall not be required to make an adjustment in the
Conversion Rate unless the adjustment would require a change of at least 1% in
the Conversion Rate. However, the Company shall carry forward any adjustments
that are less than 1% of the Conversion Rate and make such carried forward
adjustment, regardless of whether the aggregate adjustment is less than 1%, (i) upon
any conversion of Securities, and (ii) on each of the 22 Scheduled Trading
Days immediately preceding the Maturity Date.

 

(j)                                     Whenever the
Conversion Rate is adjusted as herein provided, the Company shall promptly file
with the Trustee and any Conversion Agent other than the Trustee an Officer’s
Certificate setting forth the Conversion Rate after such adjustment and setting
forth a brief statement of the facts requiring such adjustment and issue a
press release containing the relevant information (and make such press release
available on the Company’s web site). Unless and until a Responsible Officer of
the Trustee shall have received such Officer’s Certificate, the Trustee shall
not be deemed to have knowledge of any adjustment of the Conversion Rate and
may assume without inquiry that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the
Company shall prepare a notice of such adjustment of the Conversion Rate
setting forth the adjusted Conversion Rate and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of
the Conversion Rate to each holder of the Securities within ten days of the
effective date of such adjustment. Failure to deliver such notice shall not
affect the legality or validity of any such adjustment.

 

(k)                                  For purposes of
this Section 4.05, the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common 

 

42

 

Stock. The Company will not
pay any dividend or make any distribution on shares of Common Stock held in the
treasury of the Company.

 

(l)                                   The Company
shall not take any action that would result in adjustment of the Conversion
Rate, pursuant to this Article 4, in such a manner as to result in the
reduction of the Conversion Price to less than the par value per share of
Common Stock.  Notwithstanding any of the
provisions of this Section 4.05, if the application of the foregoing
formulas set forth in this Section 4.05 would result in a decrease in the
Conversion Rate, no adjustment to the Conversion Rate shall be made (other than
as a result of a share split or share combination).

 

(m)                             Notwithstanding
this Section 4.05 or any other provision of this Indenture or the Securities,
if any Conversion Rate adjustment becomes effective, or any Ex-Dividend Date
for any issuance, dividend or distribution (relating to a required Conversion
Rate adjustment) occurs, during the period beginning on, and including, the
open of business on a Conversion Date and ending on, and including, (x) the
close of business on the third Trading Day immediately following the relevant
Conversion Date (if the Company elects to satisfy the related Conversion
Obligation solely in shares of Common Stock) or (y) the close of business
on the last Trading Day of a related Cash Settlement Averaging Period (in the
case of any other Settlement Method), the Board of Directors may make
adjustments to the Conversion Rate and the amount of cash or number of shares
of Common Stock issuable upon conversion of the Securities, as the case may be,
as are necessary or appropriate to effect the intent of this Section 4.05
and the other provisions of this Article 4 and to avoid unjust or
inequitable results, as determined in good faith by the Board of Directors. Any
adjustment made pursuant to this Section 4.05(m) shall apply in lieu
of the adjustment or other term that would otherwise be applicable.

 

(n)                               Except as set
forth in this Article 4, the Company shall not adjust the Conversion
Rate.  The applicable Conversion Rate
will not be adjusted:

 

(i)                                     upon the
issuance of any shares of the Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on the
Company’s securities and the investment of additional optional amounts in
shares of the Common Stock under any plan;

 

(ii)                                  upon the
issuance of any shares of the Common Stock or options or rights to purchase
those shares pursuant to any present or future employee, director or consultant
benefit plan or program of, or assumed by, the Company or any of the Company’s
Subsidiaries;

 

(iii)                               upon the
issuance of any shares of the Common Stock pursuant to any option, warrant,
right or exercisable, exchangeable or convertible security not described in
clause (ii) of this subsection and outstanding as of the date the
Securities were first issued;

 

(iv)                              for a change in
the par value of the Common Stock;

 

(v)                                 for accrued and
unpaid interest; or

 

43

 

(vi)                              except as
stated herein, for the issuance of shares of its Common Stock or any securities
convertible into or exchangeable for shares of its Common Stock or the right,
option or warrant to purchase shares of its Common Stock or such convertible or
exchangeable securities.

 

Section 4.06.                             Effect of Reclassification, Consolidation, Merger or
Sale.

 

(a)                                Upon the
occurrence of

 

(i)                                     any
recapitalization, reclassification or change of the outstanding shares of
Common Stock (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a split,
subdivision or combination covered by Section 4.05(a)),

 

(ii)                                  any
consolidation, merger, combination or binding share exchange involving the
Company, or

 

(iii)                               any sale, lease
or conveyance of all or substantially all of the property and assets of the
Company to any other Person,

 

(any such event a “Merger Event”) in each case as a result of which the
Common Stock would be converted into cash, securities or other property or
assets with respect to or in exchange for such Common Stock, then at the
effective time of such transaction, the Company or the successor or purchasing
Person, as the case may be, shall execute with the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture) providing that at and after
the effective time of such transaction, the right to convert a Security will be
changed into a right to convert it as set forth in this Indenture into the kind
and amount of shares of stock, other securities or other property or assets
(including cash or any combination thereof) that a holder of a number of shares
of Common Stock equal to the Conversation Rate immediately prior to such
transaction would have owned or been entitled to receive upon such transaction
(the “Reference Property”), subject to the provisions of Section 4.06(b).  The Company shall not become a party to any
such transaction unless its terms are consistent with this Section 4.06.  Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 4 in the judgment of the Board of
Directors or the board of directors of the successor Person.  If, in the case of any Merger Event the
Reference Property receivable thereupon by a holder of Common Stock includes
shares of stock, securities or other property or assets (including cash or any
combination thereof) of a Person other than the successor or purchasing Person,
as the case may be, in such Merger Event, then such supplemental indenture
shall also be executed by such other Person with respect to the delivery of
Reference Property upon conversion.  For
purposes of the foregoing, if any Merger Event causes the Common Stock to be
converted into the right to receive more than a single type of consideration
(determined based in part upon any from of stockholder election), the Reference
Property into which the Securities will be convertible as set forth in this
Indenture shall be deemed to be the weighted average of the types and amounts
of consideration received by the holders of Common Stock (or a plurality
thereof if holders of Common Stock are entitled to make multiple elections
pursuant to the 

 

44

 

applicable Merger Event) that affirmatively make such an election (the “Weighted
Average Consideration”).

 

(b)                               With respect to
each $1,000 principal amount of Securities surrendered for conversion after the
effective date of any Merger Event, the Company’s Conversion Obligation shall
be settled in cash or units of Reference Property (each consisting of the kind
and amount of shares of stock, securities or other property or assets
(including cash or any combination thereof) that a holder of one share of
Common Stock immediately prior to such Merger Event shall have received (or
shall be deemed to have received) in such Merger Event) or a combination
thereof, at the Company’s election, in accordance with Section 4.03(b) but
subject to the following provisions:

 

(i)                                     if the Company
elects to satisfy its Conversion Obligation in respect of such conversion by
delivering solely Reference Property, the Company shall deliver to the
converting Holder a number of units of Reference Property equal to (1) the
aggregate principal amount of Securities to be converted, divided by $1,000, multiplied by (2) the
then-applicable Conversion Rate;

 

(ii)                                  if the Company
elects to satisfy its Conversion Obligation in respect of such conversion by
paying solely cash, the Company shall pay to the converting Holder cash in an
amount per $1,000 principal amount of Securities equal to the sum of the Daily
Conversion Values for each of the 20 consecutive Trading Days during the
related Cash Settlement Averaging Period, where such Daily Conversion Values
are determined by reference to the Daily VWAP of a unit of Reference Property
in lieu of the Common Stock; and

 

(iii)                               if the Company
elects to satisfy its Conversion Obligation through delivery of a combination
of cash and Reference Property, the Company shall deliver in respect of each
$1,000 principal amount of Securities being converted, a Settlement Amount
equal to the sum of the Daily Settlement Amounts for each of the 20 consecutive
Trading Days during the Cash Settlement Averaging Period, where such Daily
Settlement Amounts are determined by reference to the Daily VWAP of a unit of
Reference Property in lieu of the Common Stock.

 

(c)                                The Company shall
cause notice of the execution of any supplemental indenture in accordance with
the provisions of this Section 4.06 to be mailed to each Holder, at the
address of such Holder as it appears on the register of the Securities
maintained by the Primary Registrar, within 20 days after execution
thereof.  Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.  In addition, in the event that the Securities
become convertible into Reference Property pursuant to this Section 4.06,
the Company shall notify the Trustee and issue a press release containing the
relevant information (and make such press release available on the Company’s
website).  If applicable, the Company
shall notify the holders and the Trustee of the Weighted Average Consideration
as soon as practicable after the Weighted Average Consideration is determined.

 

(d)                               Notwithstanding
any of the provisions of Section 4.05, if this Section 4.06 applies
to any event or occurrence, Section 4.05 shall not apply.

 

45

 

(e)                                The above
provisions of this Section shall similarly apply to successive Merger
Events.

 

Section 4.07.                             Taxes on Shares Issued.

 

If
a Holder submits Securities for conversion, the Company shall pay all stamp and
other duties, if any, that may be imposed by the United States or any political
subdivision thereof or taxing authority thereof or therein with respect to the
issuance of shares of Common Stock, if any, upon the conversion. However, the Holder
shall pay any such tax that is due because the holder requests any shares of
Common Stock to be issued in a name other than the Holder’s name. The
Conversion Agent may refuse to deliver the certificates representing the shares
of Common Stock being issued in a name other than the Holder’s name until the
Trustee receives a sum sufficient to pay any tax that will be due because the
shares are to be issued in a name other than the Holder’s name. Nothing herein
shall preclude any tax withholding required by law or regulations.

 

Section 4.08.                             Reservation of Shares; Shares to be Fully Paid;
Compliance With Governmental Requirements; Listing of Common Stock.

 

The
Company shall provide, free from preemptive rights, out of its authorized but
unissued shares or shares held in treasury, sufficient shares of Common Stock
to satisfy conversion of the Securities from time to time as such Securities
are presented for conversion (assuming that, at the time of the computation of
such number of shares or securities, all such Securities would be converted by
a single Holder).

 

The
Company covenants that all shares of Common Stock that may be issued upon
conversion of Securities shall be newly issued shares or treasury shares, shall
be duly authorized, validly issued, fully paid and non-assessable and shall be
free from preemptive rights and free from any tax, lien or charge (other than
those created by the Holder).  The
Company further covenants that, if any shares of Common Stock to be provided
for the purpose of conversion of Securities hereunder require registration with
or approval of any governmental authority under any federal or state law before
such shares may be validly issued upon conversion, the Company will, to the
extent then permitted by the rules and interpretations of the Securities
and Exchange Commission, secure such registration or approval, as the case may
be.

 

The
Company shall list or cause to have quoted any shares of Common Stock to be
issued upon conversion of Securities on each national securities exchange or
over-the-counter or other domestic market on which the Common Stock is then
listed or quoted.

 

Section 4.09.                             Responsibility of Trustee.

 

The
Trustee and any other Conversion Agent shall not at any time be under any duty
or responsibility to any Holder to determine the Conversion Rate (or any
adjustment thereto) or whether any facts exist that may require any adjustment
(including any increase) of the Conversion Rate, or with respect to the nature
or extent or calculation of any such adjustment when made, or with respect to
the method employed, or herein or in any supplemental indenture provided to be
employed, in making the same. The Trustee and any other Conversion Agent shall
not be accountable with respect to the validity or value (or the kind or
amount) of any shares of 

 

46

 

Common Stock, or of any securities, property or cash that may at any
time be issued or delivered upon the conversion of any Security; and the
Trustee and any other Conversion Agent make no representations with respect
thereto. Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of the Company to issue, transfer or deliver any shares of Common
Stock or stock certificates or other securities or property or cash upon the
surrender of any Security for the purpose of conversion or to comply with any
of the duties, responsibilities or covenants of the Company contained in this
Article. Without limiting the generality of the foregoing, neither the Trustee
nor any Conversion Agent shall be under any responsibility to determine the
correctness of any provisions contained in any supplemental indenture entered
into pursuant to Section 4.06 relating either to the kind or amount of
shares of stock or securities or property (including cash) receivable by
Holders upon the conversion of their Securities after any event referred to in
such Section 4.06 or to any adjustment to be made with respect thereto,
but, subject to the provisions of Section 8.03 hereof, may accept (without
any independent investigation) as conclusive evidence of the correctness of any
such provisions, and shall be protected in relying upon, the Officer’s
Certificate (which the Company shall be obligated to file with the Trustee
prior to the execution of any such supplemental indenture) with respect
thereto. The rights, privileges, protections, immunities and benefits given to
the Trustee, including without limitation its right to be compensated,
reimbursed, and indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, including its capacity as
Conversion Agent.

 

Section 4.10.                             Notice to Holders Prior to Certain Actions.

 

In
case:

 

(a)                                  the Company
shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 4.05;
or

 

(b)                                 the Company
shall authorize the granting to all of the holders of its Common Stock of
rights, options or warrants to subscribe for or purchase any share of any class
or any other rights, options or warrants; or

 

(c)                                  of any
reclassification of the Common Stock of the Company (other than a subdivision
or combination of its outstanding Common Stock, or a change in par value, or
from par value to no par value, or from no par value to par value), or of any
consolidation or merger to which the Company is a party and for which approval
of any stockholders of the Company is required, or of the sale or transfer of
all or substantially all of the assets of the Company; or

 

(d)                                 of the
voluntary or involuntary dissolution, liquidation or winding-up of the Company;

 

the Company shall cause to be filed with the Trustee and to be mailed
to each Holder, as promptly as practicable but in any event at least twenty
days prior to the applicable date hereinafter specified, a notice stating (i) the
date on which a record is to be taken for the purpose of such dividend,
distribution or rights, options or warrants, or, if a record is not to be
taken, the 

 

47

 

date as of which the holders of Common Stock of record to be entitled
to such dividend, distribution or rights are to be determined, or (ii) the
date on which such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding-up is expected to become effective or
occur, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up.

 

Section 4.11.                             Stockholder Rights Plans.

 

To
the extent that the Company has a stockholder rights plan or other “poison pill”
in effect upon conversion of the Securities, each share of Common Stock, if
any, issued upon such conversion shall be entitled to receive the appropriate
number of rights, if any, and the certificates representing the Common Stock
issued upon such conversion shall bear such legends, if any, in each case as
may be provided by the terms of any such stockholder rights plan or poison
pill, as the same may be amended from time to time. If, however, prior to the
time of conversion, the rights have separated from the shares of Common Stock
in accordance with the provisions of the applicable stockholder rights
agreement so that the holders of the Securities would not be entitled to
receive any rights in respect of Common Stock, if any, issuable upon conversion
of the Securities, the Conversion Rate will be adjusted at the time of
separation as if the Company has distributed to all holders of Common Stock,
shares of Capital Stock of the Company, evidence of indebtedness or other
assets or property having a fair market value of the rights as provided in Section 4.05(c),
subject to readjustment in the event of the expiration, termination or
redemption of such rights.

 

ARTICLE 5

 

COVENANTS

 

Section 5.01.                             Payment of Securities.

 

(a)                                  The Company
shall promptly make all payments in respect of the Securities on the dates and
in the manner provided in the Securities and this Indenture. A payment of
principal or interest shall be considered paid on the date it is due if the
Paying Agent (other than the Company) (or if the Company is the Paying Agent,
the segregated account or separate trust fund maintained by the Company
pursuant to Section 2.04) holds by 10:00 a.m., New York City time, on
that date money, deposited by or on behalf of the Company sufficient to make
the payment. Accrued and unpaid interest on any Security that is payable (whether
or not punctually paid or duly provided for) on any Interest Payment Date shall
be paid to the Person in whose name that Security is registered at the close of
business on the Regular Record Date for such interest at the office or agency
of the Company maintained for such purpose. The Company shall, to the fullest
extent permitted by law, pay interest in immediately available funds on overdue
principal and interest at the annual rate borne by the Securities compounded
semiannually, which interest shall accrue from the date such overdue amount was
originally due to the day preceding the date 

 

48

 

payment of such amount,
including interest thereon, has been made or duly provided for. All such
interest shall be payable on demand.

 

(b)                                 Payment of the
principal of and interest, if any, on the Securities shall be made at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York (which shall initially be the Corporate Trust
Office of the Trustee) in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts; provided, however,
that at the option of the Company payment of interest on any Certificated
Securities having an aggregate principal amount of $5,000,000 or less may be
made by check mailed to the address of the Person entitled thereto as such
address appears in the register maintained by the Primary Registrar; provided further that a Holder of a Certificated Security
having an aggregate principal amount of more than $5,000,000 will be paid by
wire transfer in immediately available funds at the election of such Holder if
such Holder has provided wire transfer instructions to the Trustee at least 10
Business Days prior to the payment date. Any wire transfer instructions
received by the Trustee will remain in effect until revoked by the Holder. In
the case of a permanent Global Security, interest payable on any applicable
payment date will be paid to the Depositary, with respect to that portion of
such permanent Global Security held for its account by Cede & Co. for
the purpose of permitting such party to credit the interest received by it in
respect of such permanent Global Security to the accounts of the beneficial
owners thereof.

 

Section 5.02.                             Reports by Company.

 

The
Company shall deliver to the Trustee, within 15 days after it is required to
file the same with the SEC, copies of all annual reports, quarterly reports and
other documents that it files with the SEC pursuant to Sections 13 or 15(d) of
the Exchange Act.  The Company also shall
comply with the provisions of TIA Section 314(a).  The Trustee agrees that any such information,
documents or reports filed with the SEC pursuant to its Electronic Data
Gathering, Analysis and Retrieval (or EDGAR) system or any successor thereto
shall constitute delivery of the same to the Trustee.

 

Section 5.03.                             Compliance Certificates.

 

The
Company shall deliver to the Trustee, within one hundred twenty (120) days
after the end of each fiscal year of the Company (beginning with the fiscal
year ending June 30, 2009), an Officer’s Certificate as to the signer’s
knowledge of the Company’s compliance with all conditions and covenants on its
part contained in this Indenture and stating whether or not the signer knows of
any Default or Event of Default that shall have occurred in the prior fiscal
year. If such signer knows of such a Default or Event of Default, the Officer’s
Certificate shall describe the Default or Event of Default and the efforts to
remedy the same. For the purposes of this Section 5.03, compliance shall
be determined without regard to any grace period or requirement of notice
provided pursuant to the terms of this Indenture.  Such certificates need not comply with Section 11.04
of this Indenture.

 

The
Company shall deliver to the Trustee, as soon as possible and in any event
within 30 days after the occurrence of any Default or Event of Default an
Officer’s Certificate setting forth 

 

49

 

the details of such Default or Event of Default and the action which
the Company proposes to take with respect thereto.

 

Section 5.04.                             Further Instruments and Acts.

 

Upon
request of the Trustee, the Company will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purposes of this Indenture.

 

Section 5.05.                             Stay, Extension And Usury Laws.

 

The
Company covenants (to the extent that they may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any portion of
the principal of or accrued but unpaid interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture, and the
Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort
to any such law, hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

Section 5.06.                             Maintenance of Office or Agency.

 

The
Company shall maintain an office or agency where Securities may be presented or
surrendered for payment. The Company also will maintain an office or agency
where Securities may be surrendered for registration of transfer or exchange
and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The office of the Trustee, at its
Corporate Trust Office, will be such office or agency of the Company, unless
the Company shall designate and maintain some other office or agency for one or
more of such purposes. The Company will give prompt written notice to the Trustee
of the location and any change in the location of any such offices or agencies.
If at any time the Company shall fail to maintain any such required offices or
agencies or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
office of the Trustee and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

 

The
Company may from time to time designate one or more other offices or agencies
(in or outside of The City of New York) where the Securities may be presented
or surrendered for any or all such purposes, and may from time to time rescind
such designation. The Company will give prompt written notice to the Trustee of
any such designation or rescission and any change in the location of any such
office or agency.

 

50

 

ARTICLE 6

 

CONSOLIDATION; MERGER; SALE OF ASSETS

 

Section 6.01.                             Company May Consolidate, Etc., Only on Certain
Terms.

 

(a)                                The Company
shall not consolidate with or merge with or into, or convey, transfer, or lease
all or substantially all of the Company’s property or assets to, another
Person, unless:

 

(1)                                  the resulting,
surviving or transferee Person (if other than the Company) shall be a
corporation organized and validly existing under the laws of the United States
of America or any State thereof or the District of Columbia, and such Person
shall expressly assume by a supplemental indenture, the due and punctual
payment of the principal of and interest on all the Securities and the
performance and observance of every covenant of this Indenture to be performed
or observed on the part of the Company;

 

(2)                                  immediately
after giving effect to the transaction, no Default or Event of Default shall
have occurred and be continuing;

 

(3)                                  if the Company
will not be the resulting or surviving Person, the Company shall have, at or
prior to the effective date of such consolidation or merger or conveyance,
transfer or lease, delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease complies with this Article 6.01 and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture complies with this Article, and that all conditions precedent herein
provided for relating to such transaction have been complied with.

 

Section 6.02.                             Successor Substituted.

 

Upon
any consolidation of the Company with, or merger of the Company into, any other
Person or any transfer or lease of all or substantially all of the Company’s
assets in accordance with Section 6.01, the successor Person formed by
such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

 

ARTICLE 7

 

DEFAULT AND REMEDIES

 

Section 7.01.                             Events of Default.

 

An
“Event of Default” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

 

51

 

(1)                                  a default in
the payment in respect of the principal amount of any Security when the same
becomes due and payable whether on the Maturity Date, upon required repurchase,
upon declaration of acceleration or otherwise;

 

(2)                                  a default in
the payment of any interest upon any Security when it becomes due and payable,
and continuance of such default for a period of 30 days;

 

(3)                                  the failure to
comply with the obligation to convert Securities into Common Stock, cash or a
combination of cash and common stock, as applicable, upon exercise of a Holder’s
conversion right and such failure continues for five days;

 

(4)                                  failure by the
Company to provide a Fundamental Change Repurchase Notice within the time
required to provide such notice as set forth in Section 3.01(b) hereof
or the failure to provide notice of any transaction or event specified in Section 4.01(a)(iii) or
4.01(a)(iv) within the time required to provide such notice as forth in
the relevant Section and such failure continues for five days;

 

(5)                                  default in the
performance, or breach, of any covenant or agreement by the Company in the
Indenture (other than a covenant or agreement a default in whose performance or
whose breach is specifically dealt with in clauses (1) through (4) of
this Section 7.01), and continuance of such default or breach for a period
of 60 consecutive days after written notice thereof has been given to the
Company by the Trustee or to the Trustee and the Company by the Holders of at
least 25% in aggregate principal amount of the Outstanding Securities;

 

(6)                                  an event of
default (or comparable default) under any bonds, debentures or other
instruments under which there may be issued evidences of indebtedness (other
than the Securities) by the Company or any of its Subsidiaries that is a
Significant Subsidiary having, individually or in the aggregate, a principal or
similar amount outstanding of at least $35 million, whether such indebtedness
now exists or shall hereafter be created, which event of default (or comparable
default) shall have resulted in the acceleration of the maturity of at least
$35 million of such indebtedness prior to its express maturity or shall
constitute a failure to pay at least $35 million of such indebtedness when due
and payable after the expiration of any applicable grace period with respect thereto
and such event of default (or comparable default) shall not have been rescinded
or annulled or such indebtedness shall not have been discharged and such event
of default (or comparable default) continues for a period of 30 consecutive
days after written notice to the Company by the Trustee or to the Company and
the Trustee by the Holders of 25% or more in aggregate principal amount of the
Securities then Outstanding;

 

(7)                                  the entry
against the Company or any of its Subsidiaries that is a Significant Subsidiary
of a final judgment or final judgments for the payment of money in an aggregate
amount in excess of $35 million (excluding any amounts covered by insurance),
by a court or courts of competent jurisdiction, which judgments remain
undischarged, unwaived, unstayed, unbonded or unsatisfied for a period of 60
days after (i) the date on which the right to appeal or petition for
review thereof has expired if no 

 

52

 

such appeal or review has commenced, or (ii) the
date on which all rights to appeal or petition for review have been
extinguished;

 

(8)                                the Company or any Subsidiary of the Company that is a Significant
Subsidiary pursuant to or within the meaning of the Bankruptcy Law:

 

(A)                              commences a voluntary case;

 

(B)                                consents to the entry of an order for relief against it in an
involuntary case;

 

(C)                                consents to the appointment of a custodian of it or for all or
substantially all of its property; or

 

(D)                               makes a general assignment for the benefit of its creditors; or

 

(9)                                a court of competent jurisdiction enters an order or decree under the
Bankruptcy Law that:

 

(A)                              is for relief against the Company or any Subsidiary of the Company that
is a Significant Subsidiary in an involuntary case;

 

(B)                                appoints a custodian of the Company or any Subsidiary of the Company
that is a Significant Subsidiary or for all or substantially all of the
property and assets of the Company or any such Subsidiary; or

 

(C)                                orders the liquidation of the Company or any Subsidiary of the Company
that is a Significant Subsidiary and the order or decree remains unstayed and
in effect for 60 consecutive days.

 

Section 7.02.                           Acceleration.

 

(a)                                In case one or
more Events of Default shall have occurred and be continuing (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body), then, and in each and every such case
(other than an Event of Default specified in clause (7) or clause (8) of
Section 7.01 with respect to the Company (and not solely with respect to a
Significant Subsidiary of the Company)), unless the principal of all of the
Securities shall have already become due and payable, either the Trustee or the
holders of at least 25% in aggregate principal amount of the Securities then
outstanding by notice in writing to the Company (and to the Trustee if given by
Holders), may declare 100% of the principal of and accrued and unpaid interest
on all the Securities to be due and payable immediately, and upon any such
declaration the same shall become and shall automatically be immediately due
and payable, anything in this Indenture or in the Securities contained to the
contrary notwithstanding.  If an Event of
Default specified in clause (7) or clause of (8) of Section 7.01
with respect to the Company (and not solely with respect to a Significant
Subsidiary of the Company) occurs and is continuing, the principal of all the
Securities and accrued and unpaid interest shall be immediately due and
payable.

 

53

 

After
a declaration of acceleration with respect to the Securities, but before a
judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority
in aggregate principal amount of the Securities Outstanding, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

 

(A)                            the Company has
paid or deposited with the Trustee a sum sufficient to pay

 

(1)                                  all sums paid
or advanced by the Trustee under this Indenture and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel,

 

(2)                                  all overdue
interest on all Outstanding Securities,

 

(3)                                  the principal
of any Outstanding Securities which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate borne by the
Securities, and

 

(4)                                  to the extent
that payment of such interest is lawful, interest upon overdue interest at the
rate borne by the Securities;

 

(B)                              the rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction; and

 

(C)                              all Defaults or
Events of Default, other than the non-payment of principal of and interest on
the Securities which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 7.13.

 

No such rescission shall affect any subsequent Default or impair any
right consequent thereon.

 

(b)                               Notwithstanding
the foregoing and notwithstanding anything in this Indenture or in the
Securities to the contrary, if the Company so elects, the sole remedy of
Holders for an Event of Default relating to any obligation to file reports as
required under Section 5.02 of this Indenture shall, for the first
180 days after the occurrence of such an Event of Default (which will be
the 60th day after written notice is provided to the Company in accordance with
Section 7.02(a)), consist exclusively of the right to receive Additional
Interest on the Securities at an annual rate equal to (x) 0.25% of the
Outstanding principal amount of the Securities for the first 90 days an
Event of Default is continuing in such 180-day period and (y) 0.50% of the
Outstanding principal amount of the Securities for the remaining 90 days
an Event of Default is continuing in such 180-day period. Additional Interest
shall be payable in arrears on each Interest Payment Date following the
occurrence of such Event of Default in the same manner as regular interest on
the Securities.  On the 181st day after
such Event of Default (if such violation is not cured or waived prior to such
181st day), the Securities will be subject to acceleration as provided in Section 7.02(a).
The provisions set forth in this Section 7.02(b) shall not affect the
rights of the Holders in the event of the occurrence of any other Event of
Default.  In the event the Company does
not elect to pay Additional Interest upon an Event of Default in accordance 

 

54

 

with the provisions of this
paragraph, the Securities will be subject to acceleration as provided in Section 7.02(a).

 

The
Company may elect to pay Additional Interest as the sole remedy under this Section 7.02(b) by
giving notice to the Holders, the Trustee and Paying Agent of such election on
or before the close of business on the 5th Business Day after the date on which
such Event of Default otherwise would occur. If the Company fails to timely
give such notice or pay Additional Interest, the Securities will be immediately
subject to acceleration as provided in Section 7.02(a).

 

Whenever
in this Indenture there is mentioned, in any context, the payment of interest
on, or in respect of, any Security, such mention shall be deemed to include
mention of the payment of “Additional Interest” provided for in this Section 7.02(b) to
the extent that, in such context, Additional Interest is, was or would be
payable in respect thereof pursuant to the provisions of such sections, and
express mention of the payment of Additional Interest (if applicable) in any
provision shall not be construed as excluding Additional Interest in those
provisions where such express mention is not made.

 

Section 7.03.                             Collection of Indebtedness and Suits for Enforcement
by Trustee.

 

The
Company covenants that if:

 

(a)                                default is made
in the payment of any interest on any Security when such interest becomes due
and payable and such default continues for a period of 30 days, or

 

(b)                               default is made
in the payment of the principal of any Security at the Stated Maturity thereof,

 

the Company will, upon demand of the Trustee, pay to it, for the
benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and interest, with interest upon the
overdue principal and, to the extent that payment of such interest shall be
legally enforceable, upon overdue installments of interest, at the rate borne
by the Securities; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

If
the Company fails to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid and may prosecute
such proceeding to judgment or final decree, and may enforce the same against
the Company and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company, wherever situated.

 

If
an Event of Default occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders under
this Indenture by such appropriate private or judicial proceedings as the
Trustee shall deem most effectual to protect and enforce such rights, whether
for the specific enforcement of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to enforce any other
proper remedy, subject however to Section 7.12. No recovery of any such
judgment upon any 

 

55

 

property of the Company shall affect or impair any rights, powers or
remedies of the Trustee or the Holders.

 

Section 7.04.                             Trustee May File Proofs of Claim.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or the property of the Company, the Trustee
(irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand on the Company for the payment
of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

(a)                                to file and
prove a claim for the whole amount of principal and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and

 

(b)                               to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or similar official in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 8.07.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

Section 7.05.                             Trustee May Enforce Claims Without Possession of
Securities.

 

All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
and as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

Section 7.06.                             Application of Money Collected.

 

Any
money collected by the Trustee pursuant to this Article 7 or otherwise on
behalf of the Holders or the Trustee pursuant to this Article 7 or through
any proceeding or any 

 

56

 

arrangement or restructuring in anticipation or in lieu of any proceeding
contemplated by this Article 7 and any money or other property
distributable in respect of the Company’s obligations under this Indenture
after an Event of Default shall be applied, subject to applicable law, in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

FIRST:                                     To the payment of all amounts due the
Trustee (or any predecessor trustee) under Section 8.07;

 

SECOND:                      To the payment
of the amounts then due and unpaid upon the Securities for principal and
interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal and interest; and

 

THIRD:                                 The balance, if
any, to the Person or Persons entitled thereto, including the Company, provided
that all sums due and owing to the Holders and the Trustee have been paid in
full as required by this Indenture.

 

Section 7.07.                             Limitation on Suits.

 

Subject
to Section 7.08, no Holder of any Securities shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture
or the Securities, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless

 

(a)                                such Holder has
previously given written notice to the Trustee of a continuing Event of
Default;

 

(b)                               the Holders of
not less than 25% in aggregate principal amount of the Outstanding Securities
shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as trustee hereunder;

 

(c)                                such Holder or
Holders have offered to the Trustee indemnity reasonably satisfactory to it
against any loss, liability or expense to be incurred in compliance with such
request;

 

(d)                               the Trustee for
60 days after its receipt of such notice, request and offer (and if requested,
provision) of indemnity has failed to institute any such proceeding; and

 

(e)                                no direction
inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities;

 

it being understood and intended that no one or more Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture or any Security to affect, disturb or prejudice the rights of
any other Holders, or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture or any
Security, 

 

57

 

except in the manner provided in this Indenture and for the equal and
ratable benefit of all the Holders.

 

Section 7.08.                             Unconditional Right of Holders to Receive Payment and
to Convert.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security to
receive payment of the principal amount, interest, Fundamental Change
Repurchase Price, if any, or Additional Interest, if any, in respect of the
Securities held by such Holder, on or after the respective due dates expressed
in the Securities and this Indenture (whether upon repurchase or otherwise),
and to convert such Security in accordance with Article 4, and to bring
suit for the enforcement of any such payment on or after such respective due
dates or for the right to convert in accordance with Article 4, is
absolute and unconditional and shall not be impaired or affected without the
consent of the Holder.

 

Section 7.09.                             Restoration of Rights and Remedies.

 

If
the Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case the Company, the Trustee and the
Holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

 

Section 7.10.                             Rights and Remedies Cumulative.

 

No
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

Section 7.11.                             Delay or Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Security to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article 7 or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

 

Section 7.12.                             Control by Holders.

 

The
Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities shall have the right to direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, provided
that:

 

58

 

(a)                                such direction
shall not be in conflict with any rule of law or with this Indenture,
expose the Trustee to personal liability, or be unduly prejudicial to Holders
not joining therein; and

 

(b)                               subject to the
provisions of Section 315 of the TIA, the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction.

 

Section 7.13.                             Waiver of Past Defaults.

 

Subject
to Section 7.08, the Holders of a majority in aggregate principal amount
of the Securities then Outstanding by notice to the Trustee may waive an existing
or past Default or Event of Default and its consequences and rescind any
acceleration with respect to the Securities and its consequences, except a
Default or Event of Default and any related acceleration with respect to the
payment of the principal of or any accrued but unpaid interest on any Security,
the failure to repurchase Securities in accordance with the provisions of Article 3
or the failure by the Company to deliver, upon conversion of Securities, cash,
shares of Common Stock or a combination thereof, as applicable, or any Default
or Event of Default any related acceleration in respect of any provision of
this Indenture or the Securities which, under Section 10.02, cannot be
modified or amended without the consent of the Holder of each Security
affected.  When a Default or Event of
Default is waived, it is cured and ceases to exist.

 

Section 7.14.                             Undertaking for Costs.

 

All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant, but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of
the principal of or interest on, any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of purchase pursuant to Article 3
hereof, on the Fundamental Change Repurchase Date) or for amounts owing upon
conversion.

 

Section 7.15.                             Remedies Subject to Applicable Law.

 

All
rights, remedies and powers provided by this Article 7 may be exercised
only to the extent that the exercise thereof does not violate any applicable
provision of law in the premises, and all the provisions of this Indenture are
intended to be subject to all applicable mandatory provisions of law which may
be controlling in the premises and to be limited to the extent necessary so
that they will not render this Indenture invalid, unenforceable or not entitled
to be recorded, registered or filed under the provisions of any applicable law.

 

59

 

ARTICLE 8

 

TRUSTEE

 

Section 8.01.                             Duties of Trustee.

 

(a)                                In case an
Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his own affairs.

 

(b)                               Except during
the continuance of an Event of Default:

 

(1)                                  the Trustee
undertakes to perform those duties and only those duties as are specifically
set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(2)                                  in the absence
of bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
in the case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to
the requirements of this Indenture.

 

(c)                                The Trustee may
not be relieved from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

(1)                                  this clause (c) does
not limit the effect of clauses (b) or (d) of this Section 8.01;

 

(2)                                  the Trustee
shall not be liable for any error of judgment made in good faith by a Trust
Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

 

(3)                                  the Trustee
shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction of the Holders of a majority in
principal amount of Outstanding Securities relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee under this Indenture.

 

(d)                               No provision of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

60

 

(e)                                  Whether or not
therein expressly so provided, every provision of this Indenture that in any
way relates to the Trustee is subject to clauses (a), (b), (c), (d) and (f) of
this Section 8.01.

 

(f)                                    The Trustee
shall not be liable for interest on any money or assets received by it except
as the Trustee may agree with the Company. Assets held in trust by the Trustee
need not be segregated from other assets except to the extent required by law.

 

Section 8.02.                             Notice of Default.

 

Within
90 days after the occurrence of any Default, the Trustee shall transmit by mail
to all Holders and any other Persons entitled to receive reports pursuant to Section 313(c) of
the TIA, as their names and addresses appear in the Security Register, notice
of such Default hereunder known to the Trustee, unless such Default shall have
been cured or waived; provided, however, that, except in the case of a Default in the
payment of the principal of or interest on any Security or the failure to
deliver amounts owing upon conversion of a Security in accordance with the
provisions of Article 4, the Trustee shall be protected in withholding
such notice if and so long as a trust committee of Trust Officers of the
Trustee in good faith determines that the withholding of such notice is in the interest
of the Holders.

 

Section 8.03.                             Certain Rights of Trustee.

 

Subject
to the provisions of Section 8.01 hereof:

 

(a)                                  the Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting upon receipt by it of any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

 

(b)                                 any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;

 

(c)                                  the Trustee may
consult with counsel of its selection and any advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon;

 

(d)                                 the Trustee
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant
to this Indenture, unless such Holders shall have offered to the Trustee
security or indemnity reasonably satisfactory to the Trustee against any loss,
liability or expense which might be incurred by it in compliance with such
request or direction;

 

(e)                                  the Trustee
shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion, rights or
powers conferred upon it by this Indenture;

 

61

 

(f)                                    the Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, approval, appraisal, bond, debenture, note,
coupon, security or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may deem fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney at the
sole cost of the Company and shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation;

 

(g)                                 the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys and the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

 

(h)                                 the Trustee
shall not be charged with knowledge of or be deemed to have notice of any
Default or Event of Default with respect to the Securities unless written
notice of such Default or Event of Default shall have been received by the
Trustee at its Corporate Trust Office from the Company or any Holder of
Securities, and such notice references this Indenture and the Securities;

 

(i)                                     the permissive
rights of the Trustee enumerated herein shall not be construed as duties of the
Trustee;

 

(j)                                     whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely
upon an Officer’s Certificate;

 

(k)                                  the rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent (including each Agent), custodian and other Person employed to
act hereunder;

 

(l)                                     the Trustee may
request that the Company deliver an Officer’s Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officer’s Certificate may
be signed by any person authorized to sign an Officer’s Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded; and

 

(m)                               the Trustee
shall not be responsible or liable for any failure or delay in the performance
of its obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without
limitation, acts of God, earthquakes, fire, flood, terrorism, wars and other
military disturbances, sabotage, epidemics, riots, interruptions, loss or
malfunctions of utilities, computer (hardware or software) or communication
services, accidents, labor disputes, acts of civil or military authority and
governmental action.

 

62

 

Section 8.04.                             Trustee Not Responsible for Recitals, Dispositions of
Securities or Application of Proceeds Thereof.

 

The
recitals contained herein and in the Securities, except the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.

 

Section 8.05.                             Trustee and Agents May Hold Securities;
Collections; etc.

 

The
Trustee, any Paying Agent, Registrar, Conversion Agent or any other agent of
the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities, with the same rights it would have if it were not the
Trustee, Paying Agent, Registrar, Conversion Agent or such other agent and,
subject to TIA Sections 310 and 311, may otherwise deal with the Company and
receive, collect, hold and retain collections from the Company with the same
rights it would have if it were not the Trustee, Paying Agent, Registrar,
Conversion Agent or such other agent.

 

Section 8.06.                             Money Held in Trust.

 

All
moneys received by the Trustee shall, until used or applied as herein provided,
be held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by mandatory
provisions of law.

 

Section 8.07.                             Compensation and Indemnification of Trustee and Its
Prior Claim.

 

The
Company covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, such compensation as the parties shall agree in
writing from time to time for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) and the Company covenants and
agrees to pay or reimburse the Trustee and each predecessor Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by or on behalf of the Trustee in accordance with any of the provisions of
this Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all agents and other persons not regularly
in its employ) except any such expense, disbursement or advance as may arise
from its negligence, bad faith or willful misconduct. The Company also
covenants and agrees to indemnify the Trustee and each predecessor Trustee for,
and to hold it harmless against, any claim, loss, liability, tax, assessment or
other governmental charge (other than taxes applicable to the Trustee’s
compensation hereunder) or expense incurred without negligence, bad faith or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and its
duties hereunder, including enforcement of this Section 8.07 and also
including any liability which the Trustee may incur as a result of failure to withhold,
pay or report any tax, assessment or other governmental charge, and the costs
and expenses of defending itself against or investigating any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder. The obligations of the Company under this Section 8.07
to compensate and indemnify the Trustee 

 

63

 

and each predecessor Trustee and to pay or reimburse the Trustee and
each predecessor Trustee for reasonable expenses, disbursements and advances
shall constitute an additional obligation hereunder and, together with the lien
referred in the next sentence, shall survive the satisfaction and discharge,
and termination for any reason, of this Indenture and the resignation or
removal of the Trustee and each predecessor Trustee. To secure the Company’s
obligations in this Section 8.07, the Trustee shall have a lien prior to
the Securities on all money and property held or collected by the Trustee,
other than money or property held in trust for the payment of principal of or
interest on particular Securities.

 

“Trustee”
for purposes of this Section shall include any predecessor Trustee;
provided, however, that the negligence, willful misconduct or bad faith of any
Trustee hereunder shall not affect the rights of any other Trustee hereunder.

 

Without
prejudice to its other rights hereunder, when the Trustee incurs expenses or
renders services in connection with an Event of Default specified in Section 7.01
(8) or Section 7.01 (9) with respect to the Company, the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency or
other similar law.

 

Section 8.08.                             Conflicting Interests.

 

The
Trustee shall comply with the provisions of Section 310(b) of the
TIA.  For purposes of Section 310(b)(1) of
the TIA and to the extent permitted thereby, the Trustee, in its capacity as
trustee in respect of the Securities, shall not be deemed to have a conflicting
interest arising from its capacity as trustee in respect of any indenture or
indentures, if any, pursuant to which other securities or certificates of
interest or participation in other securities of the Company are outstanding if
the requirements for such exclusion set forth in said Section 310(b)(1) are
met.  Nothing herein shall preclude the
Trustee from making the application referred to in the penultimate paragraph of
Section 310(b) of the TIA.

 

Section 8.09.                             Trustee Eligibility.

 

There
shall at all times be a Trustee hereunder which shall be eligible to act as
trustee under TIA Section 310(a) and which shall have a combined
capital and surplus of at least $50,000,000, to the extent there is an
institution eligible and willing to serve. If the Trustee does not have a
Corporate Trust Office in The City of New York, the Trustee may appoint an
agent in The City of New York reasonably acceptable to the Company to conduct
any activities which the Trustee may be required under this Indenture to
conduct in The City of New York. If such Trustee publishes reports of condition
at least annually, pursuant to law or to the requirements of federal, state,
territorial or District of Columbia supervising or examining authority, then
for the purposes of this Section 8.09, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section 8.09,
the Trustee shall resign immediately in the manner and with the effect
hereinafter specified in this Article 8.

 

64

 

Section 8.10.                             Resignation and Removal; Appointment of Successor
Trustee.

 

(a)                                No resignation
or removal of the Trustee and no appointment of a successor trustee pursuant to
this Article 8 shall become effective until the acceptance of appointment
by the successor trustee under Section 8.11.

 

(b)                               The Trustee, or
any trustee or trustees hereafter appointed, may at any time resign by giving
written notice thereof to the Company. 
Such resignation shall take effect upon the appointment of a successor
Trustee and the acceptance of such appointment by such successor Trustee.  If the instrument of acceptance by a
successor Trustee required by Section 8.11 shall not have been delivered
to the Trustee within 30 days after the giving of such notice of resignation or
of any removal of the Trustee as hereinafter provided, the resigning or removed
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities.

 

(c)                                The Trustee may
be removed at any time for any cause or for no cause by an Act of the Holders
of not less than a majority in aggregate principal amount of the Outstanding
Securities, delivered to the Trustee and to the Company.

 

(d)                               If at any time:

 

(1)                                  the Trustee shall
fail to comply with the provisions of TIA Section 310(b) after
written request therefor by the Company or by any Holder who has been a bona
fide Holder of a Security for at least six months,

 

(2)                                  the Trustee
shall cease to be eligible under Section 8.09 and shall fail to resign
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

 

(3)                                  the Trustee
shall become incapable of acting or shall be adjudged a bankrupt or insolvent,
or a receiver of the Trustee or of its property shall be appointed or any
public officer shall take charge or control of the Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation,

 

then,
in any case, (i) the Company may remove the Trustee, or (ii) subject
to Section 7.14, the Holder of any Security who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

 

(e)                                If the Trustee
shall be removed or become incapable of acting, or if a vacancy shall occur in
the office of Trustee for any cause, the Company shall promptly appoint a
successor trustee and shall comply with the applicable requirements of Section 8.11.
If, within 60 days after such removal or incapability, or the occurrence of
such vacancy, the Company has not appointed a successor Trustee, a successor
trustee shall be appointed by the Act of the Holders of a majority in principal
amount of the Outstanding Securities delivered to the Company and the retiring
Trustee. Such successor trustee so appointed shall forthwith upon its
acceptance of such 

 

65

 

appointment become the
successor trustee. If no successor trustee shall have been so appointed by the
Company or the Holders of the Securities and accepted appointment in the manner
hereinafter provided, the Trustee or the Holder of any Security who has been a
bona fide Holder for at least six months may, subject to Section 7.14, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor trustee.

 

(f)                                    The Company
shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor trustee by mailing written notice of such event by
first-class mail, postage prepaid, to the Holders of Securities as their names
and addresses appear in the register of the Registrar. Each notice shall
include the name of the successor trustee and the address of its Corporate
Trust Office or agent hereunder.

 

Section 8.11.                             Acceptance of Appointment by Successor.

 

(a)                                  Every successor
trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee as if originally named as Trustee hereunder; but,
nevertheless, on the written request of the Company or the successor trustee,
upon payment of its charges pursuant to Section 8.07 then unpaid, such
retiring Trustee shall pay over to the successor trustee all moneys at the time
held by it hereunder, subject nevertheless to its lien provided for in Section 8.07,
and shall execute and deliver an instrument transferring to such successor
trustee all such rights, powers, trusts and duties.  Upon request of any such successor trustee,
the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor trustee all such rights and powers.

 

(b)                                 No successor
trustee with respect to the Securities shall accept appointment as provided in
this Section 8.11 unless at the time of such acceptance such successor
trustee shall be eligible to act as trustee under the provisions of TIA Section 310(a) and
this Article 8 and shall have a combined capital and surplus of at least
$50,000,000 and have a Corporate Trust Office or an agent selected in
accordance with Section 8.09.

 

(c)                                  Upon acceptance
of appointment by any successor trustee as provided in this Section 8.11,
the Company shall give notice thereof to the Holders of the Securities, by
mailing such notice to such Holders at their addresses as they shall appear on
the Security Register. If the acceptance of appointment is substantially
contemporaneous with the appointment, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 8.10.
If the Company fails to give such notice within 10 days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be given at the expense of the Company.

 

Section 8.12.                             Merger, Conversion, Consolidation or Succession to
Business.

 

Any
Person into which the Trustee may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all of the corporate trust 

 

66

 

business of the Trustee (including the trust created by this Indenture)
shall be the successor of the Trustee hereunder, provided
that such Person shall be eligible under TIA Section 310(a) and this Article 8
and shall have a combined capital and surplus of at least $50,000,000 and have
a Corporate Trust Office or an agent selected in accordance with Section 8.09,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.

 

In
case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture any of the Securities shall have been authenticated
but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor Trustee and deliver such Securities so
authenticated; and, in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor trustee; and in all such cases such certificate shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have; provided that the right to
adopt the certificate of authentication of any predecessor Trustee or to
authenticate Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

 

Section 8.13.                             Preferential Collection of Claims Against Company.

 

If
and when the Trustee shall be or become a creditor of the Company, the Trustee
shall be subject to the provisions of the TIA regarding the collection of
claims against the Company. A Trustee who has resigned or been removed shall be
subject to TIA Section 311(a) to the extent indicated therein.

 

Section 8.14.                             Reports By Trustee.

 

(a)                                  Within 60 days
after June 15 of each year commencing with the first June 15 after
the issuance of Securities, the Trustee, if so required under the TIA, shall
transmit by mail to all Holders, in the manner and to the extent provided in
TIA Section 313(c), a brief report dated as of such June 15 in
accordance with and with respect to the matters required by TIA Section 313(a).
The Trustee shall also transmit by mail to all Holders, in the manner and to
the extent provided in TIA Section 313(c), a brief report in accordance
with and with respect to the matters required by TIA Section 313(b)(2).

 

(b)                                 A copy of each
report transmitted to Holders pursuant to this Section 8.14 shall, at the
time of such transmission, be mailed to the Company and filed with each
national securities exchange, if any, upon which the Securities are listed and
also with the SEC. The Company will notify the Trustee promptly if the
Securities are listed on any national securities exchange.

 

ARTICLE 9

 

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 9.01.                             Satisfaction and Discharge of the Indenture.

 

When
(i) the Company shall deliver to the Trustee for cancellation all
Securities theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and 

 

67

 

in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) and not theretofore canceled, or (ii) all
the Securities not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable (whether on the Maturity Date,
on any Fundamental Change Repurchase Date or following the Conversion Date or
the last Trading Day of the applicable Cash Settlement Averaging Period, as the
case may be, upon conversion or otherwise) and the Company shall deposit with
the Trustee, in trust, or deliver to the Holders, as applicable, cash funds and
shares of Common Stock, if and as applicable, sufficient to pay or deliver all
amounts due on all of such Securities (other than any Securities that shall
have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and
delivered) not theretofore canceled or delivered to the Trustee for
cancellation, including principal and interest due, accompanied, except in the
event the Securities are due and payable solely in cash on the Maturity Date of
the Securities or upon an earlier Fundamental Change Repurchase Date, by a verification
report as to the sufficiency of the deposited amount from an independent
certified accountant or other financial professional reasonably satisfactory to
the Trustee (which may include any of the Underwriters), and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect (except as to (A) rights
hereunder of Holders of the Securities to receive all amounts owing upon the
Securities and the other rights, duties and obligations of Holders of the
Securities, as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee and (B) the rights, obligations and immunities
of the Trustee hereunder), and the Trustee, on written demand of the Company
accompanied by an Officer’s Certificate and an Opinion of Counsel as required
by Section 11.04 hereof and at the cost and expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture.

 

Section 9.02.                             Deposited Monies to Be Held in Trust by Trustee.

 

Subject
to Section 9.04, all monies deposited with the Trustee pursuant to Section 9.01
shall be held in trust for the sole benefit of the Holders of the Securities,
and such monies shall be applied by the Trustee to the payment, either directly
or through any Paying Agent (including the Company if acting as its own Paying
Agent), to the Holders of the particular Securities for the payment or
redemption of which such monies have been deposited with the Trustee, of all
sums due and to become due thereon for principal and interest, if any.

 

Section 9.03.                             Paying Agent to Repay Monies Held.

 

Upon
the satisfaction and discharge of this Indenture, all monies then held by any
Paying Agent of the Securities (other than the Trustee) shall, upon written
request of the Company, be repaid to it or paid to the Trustee, and thereupon
such Paying Agent shall be released from all further liability with respect to
such monies.

 

Section 9.04.                             Return of Unclaimed Monies.

 

Subject
to the requirements of applicable law, any monies deposited with or paid to the
Trustee for payment of the principal of or interest, if any, on the Securities
and not applied but remaining unclaimed by the Holders of the Securities for
two years after the date upon which the principal of or interest, if any, on
such Securities, as the case may be, shall have become due and 

 

68

 

payable, shall be repaid to the Company by the Trustee on demand and
all liability of the Trustee shall thereupon cease with respect to such monies;
and the Holder of any of the Securities shall thereafter look only to the
Company for any payment that such Holder of the Securities may be entitled to
collect unless an applicable abandoned property law designates another Person.

 

Section 9.05.                             Reinstatement.

 

If
the Trustee or the Paying Agent is unable to apply any money in accordance with
Section 9.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s obligations under this Indenture and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to Section 9.01
until such time as the Trustee or the Paying Agent is permitted to apply all
such money in accordance with Section 9.02; provided,
however, that if the Company makes any
payment of interest on or principal of any Security following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the
Holders of such Securities to receive such payment from the money held by the
Trustee or Paying Agent.

 

ARTICLE 10

 

AMENDMENTS; SUPPLEMENTS AND WAIVERS

 

Section 10.01.                       Without Consent of Holders.

 

(a)                                The Company and
the Trustee, may from time to time and at any time, and without the consent of
any Holder, enter into an indenture or indentures supplemental hereto for one
or more of the following purposes:

 

(1)                                  to cure any ambiguity, omission, defect or inconsistency in this
Indenture or in the Securities in a manner that does not materially adversely
affect the rights of any Holder;

 

(2)                                  to conform the terms of the Indenture or the Securities to the
description thereof in the Prospectus;

 

(3)                                  to provide for the assumption by a successor corporation of the
obligations of the Company under this Indenture pursuant to Article 6 of
this Indenture;

 

(4)                                  to add guarantees with respect to the Securities;

 

(5)                                  to secure the Securities;

 

(6)                                  to add to the covenants of the Company such further covenants,
restrictions or conditions for the benefit of the Holders or surrender any
right or power conferred upon the Company;

 

(7)                                  to make any change that does not materially adversely affect the rights
of any Holder;

 

69

 

(8)                                  to appoint a successor Trustee with respect to the Securities; or

 

(9)                                  to comply with any requirements of the Trust Indenture Act.

 

Section 10.02.                       With Consent of Holders.

 

(a)                                The Company and
the Trustee may amend or supplement this Indenture and the Securities with the
consent of the Holders of at least a majority in aggregate principal amount of
the Outstanding Securities (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, the
Securities). However, without the written consent of each Holder affected, an
amendment or supplement may not:

 

(1)                                  reduce the rate or extend the stated time for payment of interest on any
Security;

 

(2)                                  reduce the principal of, or change the Maturity Date of, any Security;

 

(3)                                  make any change that impairs or adversely affects the conversion rights
of any Securities;

 

(4)                                  reduce the Fundamental Change Repurchase Price of any Security or amend
or modify in any manner adverse to the holders of the Securities the Company’s
obligation to make such payments, whether through an amendment or waiver of
provisions in the covenants, definitions or otherwise;

 

(5)                                  make any Security payable in a currency other than that stated in the
Security;

 

(6)                                  impair the right of any Holder to receive payment of principal of and
interest on such Holder’s Securities on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder’s Securities;

 

(7)                                  make any change in this Article 10 relating to provisions that cannot be
modified or amended without the consent of the Holder of each outstanding
Security affected or in the waiver provisions
in Section 7.13 or Section 10.02(b); or

 

(8)                                  reduce the percentage in aggregate principal amount of Securities
Outstanding necessary to modify or amend this Indenture or to waive any past
Default or Event of Default.

 

(b)                               Without
limiting the provisions of Section 10.02(a) hereof, the Holders of a
majority in aggregate principal amount of the Securities then Outstanding may,
on behalf of all the Holders of all Securities, consent to the waiver of
compliance (including, without limitation and for the avoidance of doubt, any
past Default or Event of Default under this Indenture and the Securities and
its consequences) by the Company with any provisions of this Indenture and the
Securities (including, without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, the Securities) except in
each instance compliance by the Company with its obligations to pay when due
the principal amount, accrued and unpaid interest,

 

70

 

or the Fundamental Change
Repurchase Price, if any and as applicable, or to deliver amounts due upon
conversion, with respect to the Securities, or in respect of any provision
which under this Indenture cannot be modified or amended without the consent of
the Holder of each outstanding Security affected (and, in each case, any
related Default or Event of Default relating thereto).

 

(c)                                  Upon delivery
to the Trustee of a Company Request, and upon the filing with the Trustee of
evidence of the consent of Holders as aforesaid, if required, the Trustee
shall, subject to Section 10.03, join with the Company in the execution of
such supplemental indenture.

 

(d)                                 It shall not be
necessary for any Act of Holders under this Section 10.02 to approve the
particular form of any proposed supplemental indenture but it shall be
sufficient if such Act shall approve the substance thereof.

 

Section 10.03.                       Execution of Supplemental Indentures and Agreements.

 

In
executing, or accepting the additional trusts created by, any supplemental
indenture, agreement, instrument or waiver permitted by this Article 10 or
the modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, in addition to the documents required by Section 11.04,
and (subject to Section 8.01 and Section 8.03(a) hereof) shall
be fully protected in relying upon, an Opinion of Counsel and an Officer’s
Certificate each stating that the execution of such supplemental indenture,
agreement or instrument, or acceptance of any such additional trust, is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture, agreement or
instrument, or accept any such additional trusts, which affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

Section 10.04.                       Effect of Supplemental Indentures.

 

Upon
the execution of any supplemental indenture under this Article 10, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

 

Section 10.05.                       Conformity with Trust Indenture Act.

 

Every
supplemental indenture executed pursuant to this Article 10 shall conform
to the requirements of the TIA as then in effect.

 

Section 10.06.                       Reference in Securities to Supplemental Indentures.

 

Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article 10 may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for
in such supplemental indenture. If the Company shall so determine, new
Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities.

 

71

 

Section 10.07.                       Notice of Supplemental Indentures.

 

Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of Section 10.02, the Company shall
give notice thereof to the Holders of each Outstanding Security affected, in
the manner provided for in Section 11.02, setting forth in general terms
the substance of such supplemental indenture. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

 

ARTICLE 11

 

MISCELLANEOUS

 

Section 11.01.                       Conflict with Trust Indenture Act.

 

If
any provision hereof limits, qualifies or conflicts with any provision of the
TIA or another provision which is required or deemed to be included in this
Indenture by any of the provisions of the TIA, the provision or requirement of
the TIA shall control. If any provision of this Indenture modifies or excludes
any provision of the TIA that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.

 

Section 11.02.                       Notices.

 

Any
demand, authorization notice, request, consent or communication shall be given
in writing and mailed by first-class mail, postage prepaid, or delivered by
recognized overnight courier addressed as follows or transmitted by facsimile
transmission (confirmed by delivery in person or mail by first-class mail,
postage prepaid, or by guaranteed overnight courier) to the following facsimile
numbers:

 

If
to the Company, to:

 

Regis Corporation

7201 Metro Boulevard

Edina, Minnesota  55439

Attention:  Eric A. Bakken, Esq.

Facsimile No.:  (952) 918-4770

 

or at any other address
previously furnished in writing to the Trustee by the Company

 

if to the Trustee, to:

 

Wells Fargo Bank, N.A.

MAC N9311-110

625 Marquette Ave., 11th Floor

Minneapolis, MN 55479

Attention:  Corporate Trust Services

Facsimile No.:  (612) 667-9825

 

72

 

or at any other address
previously furnished in writing to the Holders or the Company by the Trustee.

 

Such
notices or communications shall be effective only when actually received.

 

The
Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

 

Where
this Indenture provides for notice to Holders of any event, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, or delivered by recognized
overnight courier, to each Holder affected by such event, at its address as it
appears in the register kept by the Primary Registrar, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice or by any other manner deemed acceptable to the Trustee. In any
case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Any notice
when mailed to a Holder in the aforesaid manner shall be conclusively deemed to
have been received by such Holder whether or not actually received by such
Holder. Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

 

In
case by reason of the suspension of regular mail service or by reason of any
other cause, it shall be impracticable to mail notice of any event as required
by any provision of this Indenture, then any method of giving such notice as
shall be reasonably satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

 

If
the Company mails any notice to a Holder of a Security, it shall mail a copy to
the Trustee and each Registrar, Paying Agent and Conversion Agent.

 

Section 11.03.                       Disclosure of Names and Addresses of Holders.

 

Holders
may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Securities, and the
Trustee shall comply with TIA Section 312(b). The Company, the Trustee,
the Registrar and any other Person shall have the protection of TIA 312(c).
Further, every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee or
any agent of either of them shall be held accountable by reason of the disclosure
of any information as to the names and addresses of the Holders in accordance
with TIA Section 312, regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under TIA Section 312.

 

73

 

Section 11.04.                       Compliance Certificates and Opinions.

 

(a)                                  Upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture and as may be requested by the Trustee, the
Company shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as
to which the furnishing of such certificates or opinions is specifically
required by any provision of this Indenture relating to such particular
application or request, no additional certificate or opinion need be furnished.

 

(b)                                 Every
certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

 

(1)                                  a statement
that the Person signing such certificate or opinion has read and understands
such covenant or condition and the definitions herein relating thereto;

 

(2)                                  a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

 

(3)                                  a statement
that, in the opinion of such Person, such Person has made such examination or
investigation as is necessary to enable such Person to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and

 

(4)                                  a statement as
to whether, in the opinion of such Person, such condition or covenant has been
complied with.

 

Section 11.05.                       Acts of Holders.

 

(a)                                  Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent duly appointed in writing; and, except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section 11.05.

 

(b)                                 The ownership
of Securities shall be proved by the register maintained by the Primary
Registrar.

 

(c)                                  Any request,
demand, authorization, direction, notice, consent, waiver or other Act by the
Holder of any Security shall bind every future Holder of the same Security and
the 

 

74

 

Holder of every Security
issued upon the transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, suffered or omitted to be done by the Trustee, any
Paying Agent or Conversion Agent, or the Company in reliance thereon, whether
or not notation of such action is made upon such Security.

 

(d)                                 The fact and
date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof. Where such execution is by a signer
acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and
date of the execution of any such instrument or writing, or the authority of
the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.

 

(e)                                  If the Company
shall solicit from the Holders any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may, at its option, by or
pursuant to a Board Resolution, fix in advance a record date for the
determination of such Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Company
shall have no obligation to do so. Notwithstanding TIA Section 316(c), any
such record date shall be the record date specified in or pursuant to such
Board Resolution, which shall be a date not more than 30 days prior to the
first solicitation of Holders generally in connection therewith and no later
than the date such first solicitation is completed.

 

(f)                                    If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall
be deemed to be Holders for purposes of determining whether Holders of the
requisite proportion of Securities then Outstanding have authorized or agreed
or consented to such request, demand, authorization, direction, notice,
consent, waiver or other Act, and for this purpose the Securities then
Outstanding shall be computed as of such record date; provided that no such
request, demand, authorization, direction, notice, consent, waiver or other Act
by the Holders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than
six months after such record date.

 

(g)                                 For purposes of
this Indenture, any action by the Holders which may be taken in writing may be
taken by electronic means or as otherwise reasonably acceptable to the Trustee.

 

Section 11.06.                       Benefits of Indenture.

 

Nothing
in this Indenture or in the Securities, express or implied, shall give to any
Person (other than the parties hereto and their successors hereunder, any
Paying Agent and the Holders) any benefit or any legal or equitable right,
remedy or claim under this Indenture.

 

Section 11.07.                       Legal Holidays.

 

In
any case where any Interest Payment Date, Fundamental Change Repurchase Date or
Maturity Date of any Security shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest or principal need not be made 

 

75

 

on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on such Interest Payment Date, Fundamental
Change Repurchase Date or Maturity Date, and no interest shall accrue with respect
to such payment for the period from and after such Interest Payment Date,
Fundamental Change Repurchase Date or Maturity Date, as the case may be, to the
next succeeding Business Day.

 

Section 11.08.                       Governing Law.

 

THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
APPLICATION OF PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED.

 

Section 11.09.                       No Adverse Interpretation of Other Agreements.

 

This
Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary of the Company. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

 

Section 11.10.                       No Personal Liability of Directors, Officers,
Employees and Stockholders.

 

No
director, officer, employee, stockholder, incorporator or agent of the Company,
as such, will have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of the Securities by
accepting a Security waives and releases all such liability.

 

Section 11.11.                       Successors and Assigns.

 

All
covenants and agreements in this Indenture by the Company shall bind their
respective successors and assigns, whether so expressed or not.

 

Section 11.12.                       Multiple Counterparts.

 

The
parties may sign multiple counterparts of this Indenture. Each signed
counterpart shall be deemed an original, but all of them together represent the
same agreement.

 

Section 11.13.                       Separability Clause.

 

In
case any provision in this Indenture or in the Securities shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

Section 11.14.                       Schedules and Exhibits.

 

All
schedules and exhibits attached hereto are by this reference made a part hereof
with the same effect as if herein set forth in full.

 

76

 

Section 11.15.                       Effect of Headings and Table of Contents.

 

The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

 

[SIGNATURE
PAGES FOLLOW]

 

77

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  REGIS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Bakken

  
	
   

  	
   

  	
  Name: 

  	
  Eric Bakken

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jayne Sillman

  
	
   

  	
   

  	
  Name:

  	
  Jayne Sillman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

78

 

EXHIBIT A

 

[FORM OF FACE OF SECURITY]

 

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

 

REGIS CORPORATION

 

5% Convertible Senior Note due 2014

 

	
  No. R-1

  	
   

  	
  Initially $150,000,000

  
	
  CUSIP No. 758932 AA5

  	
   

  	
   

  

 

Regis
Corporation, a Minnesota corporation (herein called the “Company”, which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay CEDE & CO., or registered
assigns,
                      
Dollars
($                    )
[(or such lesser principal amount as shall be specified in the “Schedule of
Exchanges of Securities” attached hereto)](1) on July 15, 2014 unless
earlier converted or repurchased, and to pay interest thereon as set forth in
the manner, at the rates and to the Persons set forth in the Indenture.

 

This
Security shall bear interest at a rate of 5% per annum from July 14, 2009
or from the most recent date to which interest had been paid or provided to,
but excluding, the next scheduled Interest Payment Date, until the principal
hereof shall be repaid.  Interest on this
Security will be computed on the basis of a 360-day year composed of twelve
30-day months.  Interest is payable
semi-annually in arrears on each January 15 and July 15, commencing
on 

 

(1) Include this legend in the case of a Global Security.

 

A-1

 

January 15, 2010, to the Person in whose name this Security (or
one or more predecessor securities) is registered at the close of business on
the Regular Record Date for such interest. Additional Interest will be payable
at the option of the Company on the terms set forth in Section 7.02(b) of
the within-mentioned Indenture.

 

The Company shall pay
principal of and interest on this Security, so long as such Security is a
Global Security, in immediately available funds to the Depositary or its
nominee, as the case may be, as the registered Holder of such Security. The
Company shall pay principal of any Securities (other than Securities that are
Global Securities) at the office or agency designated by the Company for that
purpose. The Company has initially designated the Trustee as its Paying Agent
and Registrar in respect of the Securities and its agency in New York, New York
as a place where Securities may be presented for payment or for registration of
transfer. The Company may, however, change the Paying Agent or Registrar for
the Securities without prior notice to the Holders thereof, and the Company may
act as Paying Agent or Registrar. Interest on the Securities (other than
Securities that are Global Securities) will be payable (i) to Holders of
the Securities having an aggregate principal amount of Securities of $5,000,000
or less, by check mailed to the Holders of these Securities at their address in
the register maintained by the Primary Registrar and (ii) to Holders
having an aggregate principal amount of Securities in excess of $5,000,000,
either by check mailed to each Holder at its address in the register maintained
by the Primary Registrar or, upon application by a Holder to the Primary
Registrar not later than the relevant Regular Record Date, by wire transfer in
immediately available funds to that Holder’s account within the United States,
which application shall remain in effect until that Holder notifies, in
writing, the Registrar to the contrary.

 

Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

In the case of any conflict
between this Security and the Indenture, the provisions of the Indenture shall
control.  This Security, for all
purposes, shall be governed by and construed in accordance with the laws of the
State of New York.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

[Remainder of page intentionally left blank]

 

A-2

 

IN
WITNESS WHEREOF, REGIS CORPORATION has caused this instrument to be signed
manually or by facsimile by its duly authorized officers.

 

Dated: July 14,
2009

 

	
   

  	
   

  	
   

  	
  REGIS CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

A-3

 

CERTIFICATE
OF AUTHENTICATION

 

This is one of the
Securities designated herein referred to in the within-mentioned Indenture.

 

Dated: July 14,
2009

 

	
   

  	
  WELLS FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-4

 

[FORM OF REVERSE OF SECURITY]

 

REGIS CORPORATION

 

5% Convertible Senior Note due 2014

 

This Security is one of a
duly authorized issue of Securities of the Company (herein called the “Securities”),
issued under an Indenture dated as of July 14, 2009 (herein called the “Indenture”),
by and between the Company and Wells Fargo Bank, N.A., herein called the “Trustee”, and reference
is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. Additional
Securities may be issued in an unlimited aggregate principal amount, subject to
certain conditions specified in the Indenture.

 

This Security is not subject
to redemption at the option of the Company prior to July 15, 2014.

 

Upon the occurrence of a
Fundamental Change, the Holder has the right, at such Holder’s option, to
require the Company to repurchase all of such Holder’s Securities or any
portion thereof (in principal amounts of $1,000 or integral multiples thereof)
on the Fundamental Change Repurchase Date at a price equal to the Fundamental
Change Repurchase Price.

 

As provided in and subject
to the provisions of the Indenture, the Holder hereof has the right, at its
option, during certain periods and upon the occurrence of certain conditions
specified in the Indenture, prior to the close of business on the second
Scheduled Trading Day immediately preceding July 15, 2014, to convert this
Security or a portion thereof that is $1,000 or an integral multiple thereof, into
cash or shares of Common Stock or a combination thereof at the option of the
Company at the applicable Conversion Rate specified in the Indenture, as
adjusted from time to time as provided in the Indenture.

 

As provided in and subject
to the provisions of the Indenture, the Company will make all payments in
respect of the Fundamental Change Repurchase Price and the principal amount on
the Maturity Date, as the case may be, to the holder who surrenders a Security
to a Paying Agent to collect such payments in respect of the Security.  The Company will pay cash amounts in money of
the United States that at the time of payment is legal tender for payment of
public and private debts.

 

The Trustee and each Paying
Agent shall pay to the Company upon request any money held by them for the
payment of principal or interest that remains unclaimed for two years after a
right to such money has matured.  After
payment to the Company, Holders entitled to money must look to the Company for
payment as general creditors unless an applicable abandoned property law
designates another person.

 

When a successor corporation
assumes all the obligations of its predecessor under the Securities and the
Indenture in accordance with the terms and conditions of the Indenture, the
predecessor corporation (except in certain circumstances specified in the
Indenture) shall be released from those obligations.

 

A-5

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities to be effected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in principal
amount of the Securities at the time outstanding. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities at the time outstanding, on behalf of the Holders of all
Securities, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and
of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

 

As provided in and subject
to the provisions of the Indenture, in case an Event of Default, as defined in
the Indenture, shall have occurred and be continuing, the principal of and
interest on all Securities may be declared due and payable, by either the
Trustee or Holders of at least 25% in aggregate principal amount of Securities
then outstanding, and upon said declaration shall become due and payable, in
the manner, with the effect and subject to the conditions provided in the
Indenture; provided that upon the occurrence of an
Event of Default specified in Section 7.01(8) or (9) of the
Indenture with respect to the Company, the principal amount of, and interest
on, all the Securities shall automatically become due and payable.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and interest on this Security at the time, place and rate,
and in the coin and currency, herein prescribed.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this
Security is registrable in the register maintained by the Primary Registrar,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Primary Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities are issuable
only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Securities are exchangeable for a like
aggregate principal amount of Securities and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be
made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

A-6

 

Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee and any
agent of the Company or Trustee may treat the Person in whose name the Security
is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

 

All defined terms used in
this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

A-7

 

ABBREVIATIONS

 

The
following abbreviations, when used in the inscription of the face of this
Security, shall be construed as though they were written out in full according
to applicable laws or regulations:

 

	
  TEN COM - as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Custodian

  
	
   

  	
   

  	
  (Cust)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TEN ENT - as tenants by the entireties

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JT TEN  — as joint tenants with
  right of survivorship and not as tenants in common

  	
   

  	
  Uniform Gifts to Minors Act
                  
  (State)

  

 

Additional
abbreviations may also be used

though not in the above list.

 

A-8

 

SCHEDULE
A

 

SCHEDULES OF EXCHANGES OF SECURITIES(2)

 

REGIS CORPORATION

 

5% Convertible Senior Notes due 2014

 

The initial principal amount
of this Registered Global Security is
                              
($                  ).  The following, exchanges, purchases or
conversions of a part of this Registered Global Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in

  principal amount of this

  Registered Global Security

  	
   

  	
  Amount of increase in

  principal amount of this

  Registered Global Security

  	
   

  	
  Principal amount of this

  Registered Global Security

  following such decrease or

  increase

  	
   

  	
  Signature of

  authorized signatory

  of Trustee or

  Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(2) Include this Schedule in the case of a Global Security.

 

A-9

 

EXHIBIT B

 

[FORM OF NOTICE OF CONVERSION]

 

To:  Regis Corporation

 

The
undersigned owner of this Security hereby irrevocably exercises the option to
convert this Security, or a portion hereof (which is $1,000 or an integral
multiple hereof) below designated, into shares of Common Stock or cash or a
combination thereof at the option of the Company in accordance with the terms
of the Indenture referred to in this Security, and directs that cash, if any,
payable and shares of Common Stock, if any, issuable and deliverable upon
conversion, together with any check in payment for fractional shares of Common
Stock, and any Securities representing any unconverted principal amount hereof,
be paid or issued and delivered, as the case may be, to the registered Holder
hereof unless a different name has been indicated below. Subject to certain
exceptions set forth in the Indenture, if this notice is being delivered on a
date after the close of business on a Regular Record Date and prior to the
opening of business on the related Interest Payment Date, this notice is
accompanied by payment of an amount equal to the interest payable on such
Interest Payment Date of the principal of this Security to be converted. If any
shares of Common Stock are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
hereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Security.

 

Principal amount to be converted (in an integral multiple of $1,000, if
less than all):

 

$                                                

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be guaranteed by an institution which is a
  member of one of the following recognized signature Guarantee Programs:

  
	
   

  	
   

  
	
   

  	
  (i) The Securities Transfer Agent Medallion Program (STAMP);
  (ii) The New York Stock Exchange Medallion Program (MNSP);
  (iii) The Stock Exchange Medallion Program (SEMP) or (iv) another
  guarantee program acceptable to the Trustee.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee

  

 

B-1

 

Fill in for registration of any shares of Common Stock and Securities
if to be issued otherwise than to the registered Holder.

 

 

	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
  Please print Name and Address

  	
   

  
	
  (including zip code number)

  	
   

  
	
   

  	
   

  
	
  Social Security or other Taxpayer

  	
   

  
	
  Identifying Number
                          

  	
   

  

 

B-2

 

EXHIBIT C

 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

 

To: Regis Corporation

 

The
undersigned registered owner of this Security hereby acknowledges receipt of a
notice from Regis Corporation (the “Company”) as to the occurrence of
a Fundamental Change with respect to the Company and specifying the Fundamental
Change Repurchase Date and requests and instructs the Company to repay to the
registered holder hereof in accordance with the applicable provisions of this
Security and the Indenture referred to in this Security (1) the entire
principal amount of this Security, or the portion thereof (that is $1,000
principal amount or an integral multiple thereof) below designated, and (2) if
such Fundamental Change Repurchase Date does not fall during the period after a
Regular Record Date and on or prior to the corresponding Interest Payment Date,
accrued and unpaid interest thereon to, but excluding, such Fundamental Change
Repurchase Date.

 

In
the case of certificated Securities, the certificate numbers of the Securities
to be repurchased are as set forth below:

 

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security or Other Taxpayer Identification Number

  
	
   

  	
   

  
	
   

  	
  principal amount to be repaid (if less than all):
  $            ,000

  
	
   

  	
   

  
	
   

  	
  NOTICE: The signature on the Fundamental Change
  Repurchase Notice must correspond with the name as written upon the face of
  the Security in every particular without alteration or enlargement or any
  change whatever.

  
			

 

C-1

 

EXHIBIT D

 

[FORM OF
ASSIGNMENT AND TRANSFER]

 

For value received
                                                        
hereby sell(s), assign(s) and transfer(s) unto
                                  
(Please insert social security or Taxpayer Identification Number of assignee)
the within Security, and hereby irrevocably constitutes and appoints
                
                          
attorney to transfer the said Security on the books of the Company, with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s) must be guaranteed

  
	
   

  	
   

  	
   

  	
  by an institution which is a member of one of the following
  recognized signature Guarantee Programs:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i) The Securities Transfer Agent Medallion Program (STAMP);
  (ii) The New York Stock Exchange Medallion Program (MNSP);
  (iii) The Stock Exchange Medallion Program (SEMP) or (iv) another
  guarantee program acceptable to the Trustee.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature Guarantee

  

 

D-1Exhibit 4.1

 

Your
plan is an important legal document. This sample plan has been prepared based
on our understanding of the desired provisions. It may not fit your situation.
You should consult with your lawyer on the plan’s legal and tax implications.
Neither Principal Life Insurance Company nor its agents can be responsible for
the legal or tax aspects of the Plan nor its appropriateness for your
situation. If you wish to change the provisions of this sample plan, you may
ask us to prepare new sample wording for you and your lawyer to review.

 

 

TABLE
OF CONTENTS

 

	
  INTRODUCTION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  FORMAT AND DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  1.01

  	
  Format 

  	
   

  
	
  Section

  	
  1.02

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  2.01

  	
  Active Participant

  	
   

  
	
  Section

  	
  2.02

  	
  Inactive Participant

  	
   

  
	
  Section

  	
  2.03

  	
  Cessation of Participation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  CONTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  3.01

  	
  Employer Contributions

  	
   

  
	
  Section

  	
  3.01A

  	
  Rollover Contributions

  	
   

  
	
  Section

  	
  3.02

  	
  Forfeitures

  	
   

  
	
  Section

  	
  3.03

  	
  Allocation

  	
   

  
	
  Section

  	
  3.04

  	
  Contribution Limitation 

  	
   

  
	
  Section

  	
  3.05

  	
  Excess Amounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  INVESTMENT OF CONTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  4.01

  	
  Investment and Timing of
  Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  5.01

  	
  Retirement Benefits

  	
   

  
	
  Section

  	
  5.02

  	
  Death Benefits

  	
   

  
	
  Section

  	
  5.03

  	
  Vested Benefits

  	
   

  
	
  Section

  	
  5.04

  	
  When Benefits Start

  	
   

  
	
  Section

  	
  5.05

  	
  Withdrawal Benefits

  	
   

  
	
  Section

  	
  5.06

  	
  Loans to Participants

  	
   

  
	
  Section

  	
  5.07

  	
  Distributions Under
  Qualified Domestic Relations Orders

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  DISTRIBUTION OF BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  6.01

  	
  Automatic Forms of
  Distribution

  	
   

  
	
  Section

  	
  6.02

  	
  Optional Forms of
  Distribution

  	
   

  
	
  Section

  	
  6.03

  	
  Election Procedures

  	
   

  
	
  Section

  	
  6.04

  	
  Notice Requirements 

  	
   

  

 

	
  RESTATEMENT JANUARY 1,
  2007

  	
   

  	
  TABLE OF
  CONTENTS (8-3450) 

  

 

3

 

	
  ARTICLE VII

  	
   

  	
  REQUIRED MINIMUM
  DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  7.01

  	
  Application

  	
   

  
	
  Section

  	
  7.02

  	
  Definitions

  	
   

  
	
  Section

  	
  7.03

  	
  Required Minimum
  Distributions

  	
   

  
	
  Section

  	
  7.04

  	
  Transition Rules

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  TERMINATION OF THE PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  ADMINISTRATION OF THE PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  9.01

  	
  Administration

  	
   

  
	
  Section

  	
  9.02

  	
  Expenses

  	
   

  
	
  Section

  	
  9.03

  	
  Records

  	
   

  
	
  Section

  	
  9.04

  	
  Information Available

  	
   

  
	
  Section

  	
  9.05

  	
  Claim Procedures

  	
   

  
	
  Section

  	
  9.06

  	
  Delegation of Authority

  	
   

  
	
  Section

  	
  9.07

  	
  Exercise of Discretionary
  Authority

  	
   

  
	
  Section

  	
  9.08

  	
  Transaction Processing

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  10.01

  	
  Amendments

  	
   

  
	
  Section

  	
  10.02

  	
  Direct Rollovers

  	
   

  
	
  Section

  	
  10.03

  	
  Mergers and Direct
  Transfers

  	
   

  
	
  Section

  	
  10.04

  	
  Provisions Relating to the
  Insurer and Other Parties 

  	
   

  
	
  Section

  	
  10.05

  	
  Employment Status

  	
   

  
	
  Section

  	
  10.06

  	
  Rights to Plan Assets

  	
   

  
	
  Section

  	
  10.07

  	
  Beneficiary

  	
   

  
	
  Section

  	
  10.08

  	
  Non-alienation of Benefits

  	
   

  
	
  Section

  	
  10.09

  	
  Construction

  	
   

  
	
  Section

  	
  10.10

  	
  Legal Actions

  	
   

  
	
  Section

  	
  10.11

  	
  Small Amounts

  	
   

  
	
  Section

  	
  10.12

  	
  Word Usage

  	
   

  
	
  Section

  	
  10.13

  	
  Change in Service Method

  	
   

  
	
  Section

  	
  10.14

  	
  Military Service

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  TOP-HEAVY PLAN REQUIREMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  11.01

  	
  Application

  	
   

  
	
  Section

  	
  11.02

  	
  Definitions

  	
   

  
	
  Section

  	
  11.03

  	
  Modification of Vesting
  Requirements

  	
   

  
	
  Section

  	
  11.04

  	
  Modification of
  Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PLAN EXECUTION

  	
   

  	
   

  

 

4

 

INTRODUCTION

 

The
Primary Employer previously established a 401 (k) profit sharing plan on July 1,
1990.

 

The
Primary Employer is of the opinion that the plan should be changed. It believes
that the best means to accomplish these changes is to completely restate the
plan’s terms, provisions and conditions. The restatement, effective January 1,
2007, is set forth in this document and is substituted in lieu of the prior
document with the exception of any good faith compliance amendment and any
model amendment. Such amendment(s) shall continue to apply to this
restated plan until such provisions are integrated into the plan or such amendment(s) are
superseded by another amendment.

 

The
restated plan continues to be for the exclusive benefit of employees of the
Employer. All persons covered under the plan on December 31, 2006, shall
continue to be covered under the restated plan with no loss of  benefits.

 

It
is intended that the plan, as restated, shall qualify as a profit sharing plan
under the Internal Revenue Code of 1986, including any later amendments to the
Code.

 

This plan includes changes
made to reflect the statutory, regulatory, and guidance changes specified in  the 2005
Cumulative List of Changes in Plan Qualification Requirements (2005 Cumulative
List) contained in  Internal Revenue Service Notice 2005-101 and
the qualification requirements and guidance published before  the issuance of
such list. The provisions of this plan apply as of the effective date of the
restatement unless  otherwise specified.

 

	
  RESTATEMENT JANUARY 1,
  2007 

  	
   

  	
  INTRODUCTION (8-3450) 

  

 

5

 

ARTICLE I

 

FORMAT AND DEFINITIONS

 

SECTION 1.01—FORMAT.

 

Words and phrases defined in the DEFINITIONS SECTION of Article I
shall have that defined meaning  when used in this Plan,
unless the context clearly indicates otherwise.

 

These
words and phrases have: an initial capital letter to aid in identifying them as
defined terms.

 

SECTION 1.02—DEFINITIONS.

 

Account
means, for a Participant, his share of the Plan Fund, Separate accounting
records are kept for  those parts of his Account that result from:

 

(a)                                  Pre-tax Elective
Deferral Contributions

 

(b)                                 Matching
Contributions

 

(c)                                  Other Employer
Contributions

 

(d)                                 Rollover
Contributions

 

If
the Participant’s Vesting Percentage IS less than 100%
as to any of the Employer Contributions, a separate accounting record will be
kept for any part of his Account resulting from such Employer Contributions
and, if there has been a prior Forfeiture Date, from such Contributions
made before a prior Forfeiture Date.

 

A
Participant’s Account shall be reduced by any distribution of his Vested
Account and by any Forfeitures. A Participant’s Account shall participate in
the earnings credited, expenses charged, and any appreciation or depreciation
of the Investment Fund. His Account is subject to any minimum guarantees
applicable under the Annuity Contract or other investment
arrangement and to any expenses associated therewith.

 

ACP Test means the nondiscrimination
test described in Code Section 401 (m)(2) as provided for in
subparagraph (d) of the EXCESS AMOUNTS SECTION of Article Ill.

 

Active Participant means an Eligible Employee
who is actively participating in the Plan according to the provisions in the
ACTIVE PARTICIPANT SECTION of Article II.

 

ADP Test means the nondiscrimination
test described in Code Section 401 (k)(3) as provided for in subparagraph (c) of
the EXCESS AMOUNTS SECTION of Article III.

 

Affiliated
Service Group means any group of corporations, partnerships or other
organizations of which the Employer is a part and which is affiliated
within the meaning of Code Section 414(m) and the regulations
thereunder. Such a group includes at least two organizations one 01 which is
either a service

 

	
  RESTATEMENT JANUARY 1,
  2007

  	
   

  	
  ARTICLE I (8-3450) 

  

 

6

 

organization
(that is, an organization the principal business of which is performing
services), or an  organization the principal business of which
is performing management functions on a regular and  continuing basis. Such
service is of a type historically performed by employees. In the case of a  management
organization, the Affiliated Service Group shall include organizations related,
within the  meaning of Code Section 144(a)(3), to either the management
organization or the organization for which  it performs management
functions. The term Controlled Group, as it is used in this Plan, shall include  the term
Affiliated Service Group.

 

Alternate Payee means any spouse, former
spouse, child or other dependent of a Participant who is  recognized by a
qualified domestic relations order as having a right to receive all, or a
portion of, the  benefits payable under the Plan with respect
to such Participant.

 

Annual Compensation means for a Plan Year, the
Employee’s Compensation for the Compensation  Year ending with or within
the consecutive 12-month period ending on the last day of the Plan Year.

 

Annuity Contract means the annuity contract
or contracts into which the Trustee or the Primary  Employer enters with the
Insurer for guaranteed benefits, for the investment of Contributions in  separate
accounts, and for the payment of benefits under this Plan.

 

Annuity Starting Date means, for a Participant,
the first day of the first period for which an amount is  payable as an
annuity or any other form.

 

Beneficiary means the person or persons
named by a Participant to receive any benefits under the Plan  when the
Participant dies. See the BENEFICIARY SECTION of Article X.

 

Catch-up Contributions means Elective Deferral
Contributions made to the Plan that are in excess of an  otherwise
applicable Plan limit and that are made by Participants who are age 50 or older
by the end of  the taxable year. An otherwise applicable Plan
limit IS a limit in the Plan that applies to Elective Deferral  Contributions
Without regard to Catch-up Contributions. such as the limits on the Maximum
Annual  Additions. as defined in the CONTRIBUTION LIMITATION SECTION of Article III,
the dollar limitation on  Elective Deferral Contributions under Code Section 402(g) (not
counting Catch-up Contributions), and  the limit imposed by the ADP
Test.

 

Catch-up
Contributions are not subject to the limits on the Maximum Annual Additions, as
defined  in the CONTRIBUTION LIMITATION SECTION of Article III, are not
counted in the ADP Test, and are not  counted in determining the
minimum allocation under Code Section 416 (but Catch-up Contributions  made in prior
years are counted in determining whether the Plan is top-heavy).

 

Claimant means any person who makes a
claim for benefits under this Plan. See the CLAIM PROCEDURES SECTION of Article IX.

 

Code means the Internal Revenue Code of 1986. as
amended.

 

Compensation means, except for purposes of the
CONTRIBUTION LIMITATION SECTION of Article III  and Article XI,
the total earnings, except as modified in this definition, paid or made
available to an  Employee by the Employer or a Predecessor
Employer that did not maintain this Plan during any  specified period. Earnings
exclude earnings while a partner or proprietor of such Predecessor Employer.

 

7

 

“Earnings”
in this definition means wages within the meaning of Code Section 3401(a) and
all other  payments of compensation to an Employee by the Employer (in the course
of the Employer’s trade or  business) for which the
Employer is required to furnish the Employee a written statement under Code  Sections
6041(d), 6051(a)(3), and 6052. Earnings must be determined without regard to
any rules  under Code Section 3401 (a) that limit the remuneration
included in wages based on the nature or  location of the employment or
the services performed (such as the exception for agricultural labor in  Code Section 3401
(a)(2)). The type of compensation that is reported in the “Wages, Tips and
Other  Compensation” box on Form W-2 satisfies this definition.  

 

For
any Self-employed individual. Compensation means Earned Income.  

 

For
purposes of determining the amount of Elective Deferral Contributions and
Matching  Contributions, Compensation shall exclude reimbursements or other
expense allowances, fringe benefits  (cash and non-cash), moving
expenses, deferred compensation (other than elective contributions),  and welfare
benefits.

 

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 which is not  includible in
the gross income of the Employee by reason of Code Section 125, 132(f)(4),
or 457.  Compensation shall also include employee contributions “picked up” by a
governmental entity and,  pursuant to Code Section 414(h)(2),
treated as Employer contributions.

 

For
Plan Years beginning on and after January 1, 2005, payments made within 2
1/2 months after  Severance from Employment will be Compensation
If they are payments that, absent a Severance from  Employment, would have been
paid to the Employee while the Employee continued in employment  with the
Employer and are regular compensation for services during the Employee’s
regular  working hours, compensation for services outside the Employee’s regular
working hours  (such as overtime or shift differential),
commissions, bonuses, or other similar compensation,  and payments for accrued bona
fide sick, vacation, or other leave, but only If the Employee would have  been able to use
the leave if employment had continued. Any payments not described above are  not considered
compensation if paid after Severance from Employment, even if they are paid
within  2 1/2 months following Severance from Employment, except for payments to
an individual who does  not currently perform services for the
Employer by reason of qualified military service (within the  meaning of Code Section 414(u)(1) to
the extent these payments do not exceed the amounts the  individual would
have received If the individual had continued to perform services for the
Employer  rather than entering qualified military service.  

 

For
purposes of the EXCESS AMOUNTS SECTION of Article III, the Employer
may elect to use an  alternative non-discriminatory definition of
Compensation in accordance with the regulations under Code  Section 414(s),

 

For
Plan Years beginning on or after January 1, 2002, the annual Compensation
of each Participant  taken into account in determining
contributions and allocations shall not exceed $200,000, as  adjusted for
cost-of-living increases in accordance with Code Section 401 (a)(17)(B).
The cost-at-living  adjustment In effect for a calendar year
applies to any determination period beginning in such calendar  year.

 

If
a determination period consists of fewer than 12 months, the annual
compensation limit is an amount  equal to the otherwise
applicable annual compensation limit multiplied by a fraction. The numerator of

 

8

 

the
fraction is the number of months in the short determination period, and the
denominator of the fraction is 12.

 

If
Compensation for any prior determination period is taken into account in
determining a Participant’s contributions or allocations for the current Plan
Year, the Compensation for such prior determination period is subject to the
applicable annual compensation limit in effect for that determination period. For
this purpose, in determining contributions and allocations in Plan Years
beginning on or after January 1, 2002, the annual compensation limit in
effect for determination periods beginning before that date is $200,000.

 

Compensation
means, for a Leased Employee, Compensation for the services the Leased Employee
performs for the Employer, determined in the same manner as the Compensation of
Employees who are not Leased Employees, regardless of whether such Compensation
is received directly from the Employer or from the leasing organization.

 

Compensation Year means the consecutive
12-month period ending on the last day of each Plan Year, including
corresponding periods before July 1, 1990.

 

Contingent Annuitant means an individual named by
the Participant to receive a lifetime benefit after the Participant’s death in
accordance with a survivorship life annuity.

 

Contributions
means

 

Elective
Deferral Contributions

Matching
Contributions

Discretionary
Contributions

Rollover
Contributions

 

as
set out in Article III, unless the context clearly indicates only specific
contributions are meant.

 

Controlled Group means any group of
corporations, trades, or businesses of which the Employer is a part that is under
common control. A Controlled Group includes any group of corporations, trades,
or businesses, whether or not incorporated, which is either a parent-subsidiary
group, a brother-sister group, or a combined group Within the meaning of Code Section 414(b),
Code Section 4141c) and the regulations thereunder and, for purposes of
determining contribution limitations under the CONTRIBUTION LIMITATION SECTION of
Article III, as modified by Code Section 415(h). The term Controlled
Group, as it is used in this Plan, shall include the term Affiliated Service
Group and any other employer required to be aggregated with the Employer under
Code Section 414(0) and the regulations thereunder.

 

Direct Rollover means a payment by the Plan
to the Eligible Retirement Plan specified by the Distributee.

 

Discretionary Contributions means discretionary
contributions made by the Employer to fund this Plan. See the EMPLOYER
CONTRIBUTIONS SECTION of Article III.

 

Distributee means an Employee or former
Employee. In addition, the Employee’s (or former Employee’s)surviving spouse
and the Employee’s (or former Employee’s) spouse or former spouse who is the

 

9

 

alternate
payee under a Qualified domestic relations order, as defined in Code Section 414(p),
are Distributees with regard to the interest of the spouse or former spouse.

 

Earned Income means, for a Self-employed
Individual, net earnings from self-employment in the trade or business for
which this Plan is established if such Self-employed individual’s personal
services are a material income producing factor for that trade or
business. Net earnings shall be determined without regard to items not included
in gross income and the deductions properly allocable to or
chargeable against such items. Net earnings shall be reduced for the
employer contributions to the Employer’s qualified retirement plan(s) to
the extent deductible under Code Section 404. 

 

Net
earnings shall be determined with regard to the deduction allowed to the
Employer by Code Section 164(f) for taxable years beginning after December 31,
1989.

 

Elective Deferral Contributions means
contributions made by the Employer to fund this Plan in accordance with
elective deferral agreements between Eligible Employees and the Employer.

 

Elective
deferral agreements shall be made, changed, or terminated according to the
provisions of the EMPLOYER CONTRIBUTIONS SECTION of Article III.

 

Elective
Deferral Contributions shall be 100% vested and subject to the distribution
restrictions of Code Section 401(k) when made. See the WHEN BENEFITS
START SECTION of Article V.

 

Elective
Deferral Contributions means Pre-tax Elective Deferral Contributions.

 

Eligibility Break in Service means an Eligibility
Computation Period in which an Employee is credited with 500 or fewer Hours of
Service. An Employee incurs an Eligibility Break in Service on the last day of
an Eligibility Computation Period in which he has an Eligibility Break in
Service. 

 

Eligibility Computation Period means a consecutive 12-month
period. The first Eligibility Computation Period begins on an Employee’s
Employment Commencement Date, later Eligibility Computation Periods shall be
consecutive 12-month periods ending on the last day of each Plan Year that
begins after his Employment Commencement Date.

 

To
determine an Eligibility Computation Period after an Eligibility Break in
Service, the Plan shall use the consecutive 12-month period beginning on an Employee’s
Reemployment Commencement Date as if his Reemployment Commencement Date were
his Employment Commencement Date.

 

Eligibility Service means one year of service
for each Eligibility Computation Period that has ended and in which an Employee
is credited with at least 1,000 Hours of Service.

 

However,
Eligibility Service is modified as follows:

 

Service
with a Predecessor Employer that did not maintain this Plan included:

 

An
Employee’s service with a Predecessor Employer that did not maintain this Plan shall
be included as service with the Employer. This service excludes service
performed while a proprietor or partner.

 

10

 

Period
of Military Duty included:

 

A
Period of Military Duty shall be included as service with the Employer to the
extent it has not already been credited. For purposes of crediting Hours of
Service during the Period of Military Duty, an Hour of Service shall be
credited (without regard to the 501 Hour of Service limitation)for each hour an
Employee would normally have been scheduled to work for the Employer during
such period.

 

Controlled
Group service included:

 

An
Employee’s service with a member firm of a Controlled Group while both that
firm and the Employer were members of the Controlled Group shall be included as
service with the Employer.

 

Eligible Employee means any Employee of the
Employer excluding the following:

 

Bargaining
class, represented for collective bargaining purposes by any collective
bargaining agreement between the Employer and employee representatives, if
retirement benefits were the subject of good faith bargaining and if two
percent or less of the Employees who are covered pursuant to that agreement are
professionals as defined in section 1.410(b)-9 of the regulations. For this
purpose, the term “employee representatives” does not include any organization
more than half of whose members are Employees who are owners, officers, or
executives of the Employer.

 

Nonresident
alien, within the meaning of Code Section 7701(b)(1)(B), who receives no
earned income, within the meaning of Code Section 911 (d)(2), from the
Employer that constitutes income from sources within the United States, within
the meaning of Code Section 861 (a)(3),or who receives such earned income
but it is all exempt from income tax in the United States under the terms of an
income tax convention.

 

Leased
Employee.

 

An
Employee considered by the Employer to be an independent contractor, or the employee
of an Independent contractor, who is later determined by the Internal Revenue Service
to be an Employee.

 

Eligible Retirement Plan means an eligible plan under
Code Section 457(b) 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 and which agrees to separately account for
amounts transferred into such plan from this Plan, an individual retirement
account described In Code Section 408(a), an Individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code Section 403(a),
an annuity contract described in Code Section 403(b), or a qualified plan
described in Code Section 401(a), that accepts the Distributees Eligible
Rollover Distribution. The definition of Eligible Retirement Plan shall also
apply in the case 01 a distribution to a surviving spouse, or to a spouse or
former spouse who is the Alternate Payee under a qualified domestic relations
order, as defined in Code Section 414(p).

 

11

 

If
any portion of an Eligible Rollover Distribution is attributable to payments or
distributions from a designated Roth account, an Eligible Retirement Plan with
respect to such portion shall include only another designated Roth account of
the individual from whose Account the payments or distributions were made under
an annuity plan described in Code Section 403(a) or a qualified plan
described in Code Section 401 (a), or a Roth IRA described In Code Section 408A
of such individual.

 

Eligible Rollover Distribution means 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: (i) 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; (iii) any distribution to the extent such distribution is
required under Code Section 401 (a)(9); (iii) any hardship distribution;
(iv) the portion of any other distribution(s) that is not includible
in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and(v) any other
distribution(s) that is reasonably expected to total less than $200 during
a year.

 

A
portion of a distribution shall not fail to be an Eligible Rollover Distribution
merely because the portion consists of after-tax employee contributions that
are not includible in gross income. However, such portion may be transferred
only to an individual retirement account or individual retirement annuity described
in Code Section 408(a) or (b), or to a Qualified defined contribution
plan described in Code Section 401 (a) or 403(8) that agrees to
separately account for amounts so transferred, including separately accounting
for the portion of such distribution which is includible in gross income and
the portion of such distribution which is not so includible.

 

A
portion of a distribution shall not fail to be an Eligible Rollover
Distribution merely because the portion consists of the portion of a designated
Roth account that is not includible in a Participant’s gross income. However,
such portion may be transferred only to a Roth IRA described in Code Section 408A
or to a designated Roth account under a qualified defined contribution plan
described in Code Section 401 (a) or 403(a) that agrees to separately
account for amounts so transferred, Including separately accounting for the
portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.

 

If
the distribution Includes any portion of a designated Roth account, in
determining if (v) above applies:(i) any portion of the distribution
from the designated Roth account shall not be treated as an Eligible Rollover
Distribution if it is reasonably expected to total less than $200 during a year
and (ii) the balance of the distribution, if any, shall not be treated as
an Eligible Rollover Distribution If it is reasonably expected to total less
than $200 during a year. However, all Eligible Rollover Distributions are combined
in determining a mandatory distribution of an Eligible Rollover Distribution
greater than $1,000 in the DIRECT ROLLOVERS SECTION of Article X.

 

Employee means an Individual who is
employed by the Employer or any other employer required to be aggregated with
the Employer under Code Sections 414(b), (c), (m), or (o). A Controlled
Group member is required to be aggregated with the Employer. 

 

The
term Employee shall include any Self-employed Individual treated as an employee
of any employer described in the preceding paragraph as provided in Code Section 401(c)(1).
The term Employee shall also include any Leased Employee deemed to be an
employee of any employer described in the preceding paragraph as provided in
Code Section 414(n) or (o).

 

Employer means, except for purposes
of the CONTRIBUTION LIMITATION SECTION of Article III, the Primary
Employer. This will also include any successor corporation or firm of the
Employer which shall,

 

12

 

by
written agreement, assume the obligations of this Plan or any Predecessor
Employer that maintained this Plan.

 

Employer
Contributions means

 

Elective
Deferral Contributions

Matching
Contributions

Discretionary
Contributions

 

as
set out in Article III and contributions made by the Employer to fund this
Plan in accordance with the provisions of the MODIFICATION OF CONTRIBUTIONS SECTION of
Article XI, unless the context clearly indicates only specific
contributions are meant.

 

Employment Commencement Date means the date an Employee
first performs an Hour of Service.

 

Entry Date means the dare an Employee
first enters the Plan as an Active Participant. Sec the ACTIVE PARTICIPANT SECTION of
Article II.

 

ERISA means the Employee Retirement Income Security
Act of 1974, as amended.

 

Fiscal Year means the Primary Employer’s
taxable year. The last day of the Fiscal Year is December 31.

 

Forfeiture means the part, if any, of a
Participant’s Account that is forfeited. See the FORFEITURES SECTION of Article III.

 

Forfeiture Date means, as to a  Participant, the
date the Participant incurs five consecutive Vesting Breaks in Service.

 

Highly Compensated Employee means any Employee who:

 

(a)                                  was a 5-percent
owner at any time during the year or the preceding year, or

 

(b)                                 for the
preceding year had compensation from the Employer in excess of $80,000 and, if
the Employer so elects, was in the top-paid group for the preceding year. The $80,000 amount is adjusted at
the same time and in the same manner as under Code Section 415(d), except
that the base period is the calendar quarter ending September 30, 1996.

 

For
this purpose the applicable year of the plan for which a determination is being
made is called a determination year and the preceding 12-month period is called
a look-back year. If the Employer makes a calendar year data election, the
look-back year shall be the calendar year beginning with or within the look-back
year. The Plan may not use such election to determine whether Employees are
Highly Compensated Employees on account of being a 5-percent owner.

 

In
determining who IS a Highly Compensated Employee, the Employer
does not make a top-paid group election. In determining who is a Highly
Compensated Employee, the Employer does not make a calendar year data election.

 

13

 

Calendar
year data elections and top-paid group elections, once made, apply for all
subsequent years unless changed by the Employer. If the Employer makes one
election, the Employer is not required to make the other. If both elections are
made, the look-back year in determining the top-paid group must be the calendar
year beginning with or within the look-back year. These elections must apply consistently
to the determination years of all plans maintained by the Employer which reference
the highly compensated employee definition in Code Section 414(q), except
as provided in Internal Revenue Service Notice 97-45 (or superseding guidance).

 

The
determination of who is a highly compensated former Employee is based on the rules applicable
to determining Highly Compensated Employee status as in effect for that
determination year, in accordance with section 1.414(q)-1 T, A-4 of the
temporary Income Tax Regulations and Internal Revenue Service Notice 97-45.

 

The
determination of who is a Highly Compensated Employee, including the
determinations of the number and identity of Employees in the top-paid group,
the compensation that is considered, and the identity of the 5-percent owners, shall
be made in accordance with Code Section 414(q) and the regulations
thereunder.

 

Hour
of Service means the following:

 

(a)                                  Each hour for
which an Employee is paid, or entitled to payment, for performing duties for
the Employer during the applicable computation period.

 

(b)                                 Each hour for
which an Employee is paid, or entitled to payment. by the Employer on account
of a period of time in 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. Notwithstanding the preceding provisions of this subparagraph (b), no
credit will be given to the Employee:

 

(1)                                  for more than
501 Hours of Service under this subparagraph (b) on account of any single continuous
period in which the Employee performs no duties (whether or not such period occurs
in a Single computation period); or

 

(2)                                  for an Hour of
Service for which the Employee is directly or indirectly paid, or entitled to payment,
on account of a period in which no duties are performed if such payment is made
or due under a plan maintained solely for the purpose of complying with
applicable worker’s or workmen’s compensation, or unemployment compensation, or
disability insurance laws; or

 

(3)                                  for an Hour of
Service for a payment which solely reimburses the Employee for medical or medically
related expenses incurred by him.

 

For
purposes of this subparagraph (b), a payment shall he deemed to be made by, or
due from the Employer, regardless of whether such payment is made by, or due
from the Employer, directly or indirectly through, among others, a trust fund
or insurer, to which the Employer contributes or pays premiums and regardless
of whether contributions made or due to the trust fund, insurer or other entity
are for the benefit of particular employees or are on behalf of a group of
employees in the aggregate.

 

14

 

(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
subparagraph(a)       or subparagraph (b) above
(as the case may be and under this subparagraph (c)).Crediting of Hours of
Service for back pay awarded or agreed to with respect to periods described in
subparagraph (b) above will be subject to the limitations set forth in
that subparagraph.

 

The
crediting of Hours of Service above shall be applied under the rules of
paragraphs (b) and (c) of the Department of Labor Regulation 2530.200b-2
(including any interpretations or opinions implementing such rules); which
rules, by this reference, are specifically Incorporated in full within this
Plan. The reference to paragraph (b) applies to the special rule for
determining hours of service for reasons other than the performance of duties
such as payments calculated (or not
calculated) on the basis of units of time and the rule against double
credit. The reference to paragraph (c) applies to the crediting of hours
of service to computation periods.

 

Hours
of Service shall be credited for employment with any other employer required to
be aggregated with the Employer under Code Sections 414(b), (c), (m), or (o) and the
regulations thereunder for purposes of eligibility and vesting. Hours of Service
shall also be credited for any individual who is considered an employee for
purposes of this Plan pursuant to Code Section 414(n) or (0) and the
regulations thereunder.

 

Solely
for purposes of determining whether a one-year break in service has occurred
for eligibility or vesting purposes, during a Parental Absence an Employee
shall be credited with the Hours of Service which would otherwise have been
credited to the Employee but for such absence, or in any case in which such
hours cannot be determined, eight Hours of Service per day of such absence. The
Hours of Service credited under this paragraph shall be credited in the
computation period in which the absence begins if the crediting is necessary to
prevent a break in service in that period; or in all other cases, in the
following computation period.

 

Inactive Participant means a former Active
Participant who has an Account. See the INACTIVE PARTICIPANT SECTION of Article II.

 

Insurer means Principal Life Insurance Company or the
insurance company or companies named by (i)the Primary Employer or (ii) the Trustee in
its discretion or as directed under the Trust Agreement.

 

Investment Fund means the total of Plan
assets, excluding the guaranteed benefit policy portion of any Annuity
Contract. All or a portion of these assets may be held under, or invested
pursuant to, the terms of a Trust Agreement. 

 

The
Investment Fund shall be valued at current fair market value as of the
Valuation Date. The valuation shall take into consideration investment earnings
credited, expenses charged, payments made, and changes in the values of the
assets held in the Investment Fund.

 

The
Investment Fund shall be allocated at all times to Participants, except as
otherwise expressly provided in the Plan. The Account of a Participant shall be
credited with its share of the gains and losses of the Investment Fund. That
part of a Participant’s Account invested in a funding arrangement that
establishes one or more accounts or investment vehicles for such Participant
thereunder shall be credited with the gain or loss from such accounts or
investment vehicles. The part of a Participant’s Account that is invested in
other funding arrangements shall be credited with a proportionate share of

 

15

 

the
gain or loss of such investments. The share shall be determined by multiplying
the gain or loss of the investment by the ratio of the part of the Participant’s
Account invested in such funding arrangement to the total of the Investment
Fund invested in such funding arrangement.

 

Investment Manager means any fiduciary (other
than a trustee or Named Fiduciary)

 

(a)                                  who has the
power to manage, acquire, or dispose of any assets of the Plan;

 

(b)                                 who (i) is
registered as an investment adviser under the Investment Advisers Act of 1940; (ii) is
not registered as an investment adviser under such Act by reason of paragraph (1) of
section 203A(a)of such Act, is registered as an investment adviser under the
laws of the state (referred to in such paragraph (1)) in which it maintains its
principal office and place of business, and, at the time it last filed the
registration form most recently filed by it with such state in order to
maintain its registration under the laws of such state, also filed a copy of such
form with the Secretary of Labor; (iii) is a bank, as defined in that Act;
or (iv) is an insurance company qualified to perform services described in
subparagraph (a) above under the laws of more than one state; and

 

(c)                                  who has
acknowledged in writing being a fiduciary with respect to the Plan.

 

Late Retirement Date means the first day of any
month that is after a Participant’s Normal Retirement Date and on which
retirement benefits begin. If a Participant continues to work for the Employer
after his Normal Retirement Date, his Late Retirement Date shall be the
earliest first day of the month on or after the date he has a Severance from
Employment. An earlier Retirement Date may apply it the Participant so elects.
A later Retirement Date may apply if the Participant so elects. See the WHEN
BENEFITS START SECTION of Article V.

 

Leased Employee means any person (other than
an employee of the recipient) who, pursuant to an agreement between the
recipient and any other person (“leasing organization”), has performed services
for the recipient (or for the recipient and related persons determined in
accordance with Code Section 414(n)(6)) on a substantially full time basis
for a period of at least one year, and such services are performed under
primary direction or control by the recipient. Contributions or benefits
provided by the leasing organization to a Leased Employee, which are
attributable to service performed for the recipient employer, shall be treated
as provided by the recipient employer.

 

A
Leased Employee shall not be considered an employee of the recipient if:

 

(a)                                  such employee is
covered by a money purchase pension plan providing (i) a non-integrated employer
contribution rate of at least 10 percent of compensation, as defined in Code
Section 415(c)(3), (ii) immediate participation, and (iii) full and
immediate vesting, and

 

(b)                                 Leased Employees
do not constitute more than 20 percent of the recipient’s non-highly compensated
work force.

 

Loan Administrator means the person(s) or
position(s) authorized to administer the Participant loan program.

 

The
Loan Administrator is the 401(k) Administrator. 

 

16

 

Matching Contributions means contributions made by
the Employer to fund this Plan that are contingent on a Participant’s Elective
Deferral Contributions. See the EMPLOYER CONTRIBUTIONS SECTION of Article III.

 

Monthly Date means each Yearly Date and
the same day of each following month during the Plan Year beginning on such
Yearly Date.

 

Named Fiduciary means the person or persons
who have authority to control and manage the operation and administration of
the Plan.

 

The
Named Fiduciary is the Employer.

 

Non-highly Compensated Employee means an
Employee of the Employer who IS not a Highly Compensated Employee.

 

Non-vested Account means the excess, if
any, of a Participant’s Account over his Vested Account.

 

Normal Form means a single life annuity
with installment refund.

 

Normal Retirement Age means the age at which the
Participant’s normal retirement benefit becomes non-forfeitable if he is an
Employee. A Participant’s Normal Retirement Age is 65. 

 

Normal Retirement Date means the earliest first day
of the month on or after the date the Participant reaches his Normal Retirement
Age. Unless otherwise provided in this Plan, a Participant’s retirement
benefits shall begin on a Participant’s Normal Retirement Date if he has had a
Severance from Employment on such date and has a Vested Account. Even if the
Participant is an Employee on his Normal Retirement Date, he may choose to have
his retirement benefit begin on such date.

 

Owner-employee means a Self-employed
Individual who, in the case of a sole proprietorship, owns the entire interest
in the unincorporated trade or business for which this Plan is established. If
this Plan is established for a partnership, an Owner-employee means a
Self-employed Individual who owns more than 10 percent of either the capital
Interest or profits interest in such partnership.

 

Parental
Absence means an Employee’s absence from work:

 

(a)                                  by reason of
pregnancy of the Employee,

 

(b)                                 by reason of
birth of a child of the Employee,

 

(c)                                  by reason of the
placement of a child with the Employee in connection with adoption of such
child by such Employee, or

 

(d)                                 for purposes of
caring for such child for a period beginning immediately following such birth
or placement.

 

Participant means either an Active
Participant or an Inactive Participant.

 

17

 

Period of Military Duty means, for an Employee

 

(a)                                  who served as a
member of the armed forces of the United States, and

 

(b)                                 who was
reemployed by the Employer at a time when the Employee had a right to
reemployment in accordance with seniority rights as protected under Chapter 43
of Title 38 of the U.S. Code,

 

the
period of time from the date the Employee was first absent from active work for
the Employer because of such military duty to the date the Employee was
reemployed.

 

Plan means the 401 (k) profit sharing plan of
the Employer set forth in this document, including any later amendments to it.

 

Plan Administrator means the person or persons
who administer the Plan. The Plan Administrator is the Employer.

 

Plan Fund means the total of the
Investment Fund and the guaranteed benefit policy portion of any Annuity
Contract. The Investment Fund shall be valued as stated in its definition. The
guaranteed benefit policy portion of any Annuity Contract shall be determined
in accordance with the terms of the Annuity Contract and, to the extent that
such Annuity Contract allocates contract values to Participants, allocated to
Participants in accordance with its terms. The total value of all  amounts held
under the Plan Fund shall equal the value of the aggregate Participants’
Accounts under the Plan.

 

Plan Year means a period beginning on
a Yearly Date and ending on the day before the next Yearly Date.

 

Predecessor Employer means a firm of which the
Employer was once a part (e.q., due to a spinoff or change of corporate status)
or a firm absorbed by the Employer because of a merger or acquisition (stock or
asset, including a division or an operation of such company) that maintained
this Plan or that is named below:

 

Scientech,
LLC

 

Pre-tax Elective Deferral Contributions means a
Participant’s Elective Deferral Contributions that are not includible in the
Participant’s gross income at the time deferred.

 

Primary Employer means EnergySolutions, LLC.

 

Qualified Joint and Survivor Annuity means, for a
Participant who has a spouse, an immediate survivorship life annuity with
installment refund, where the survivorship percentage is 50% and the Contingent
Annuitant is the Participant’s spouse. A former spouse will be treated as the
spouse to the extent provided under a qualified domestic relations order as
described in Code Section 41 4(p).

 

The
amount of benefit payable under the Qualified Joint and Survivor Annuity shall
be the amount of benefit that may be provided by the Participant’s Vested
Account.

 

Qualified Pre-retirement Survivor Annuity means a single
life annuity with installment refund payable to the surviving spouse of a
Participant who dies before his Annuity Starting Date. A former spouse will be

 

18

 

treated
as the surviving spouse to the extent provided under a qualified domestic
relations order as described in Code Section 414(p).

 

Quarterly Date means each Yearly Date and
the third. sixth, and ninth Monthly Date after each Yearly Date that is within
the same Plan Year.

 

Reemployment Commencement Date means the date an Employee
first performs an Hour of Service following an Eligibility Break in Service.

 

Reentry Date means the date a former
Active Participant reenters the Plan. See the ACTIVE PARTICIPANT SECTION of
Article II.

 

Retirement Date means the date a retirement
benefit will begin and is a Participant’s Normal or Late Retirement Date, as
the case may be.

 

Rollover Contributions means the Rollover
Contributions which are made by an Eligible Employee or an Inactive Participant
according to the provisions of the ROLLOVER CONTRIBUTIONS SECTION of Article III.

 

Self-employed Individual means. with respect to any Fiscal
Year, an individual who has Earned Income for the Fiscal Year (or who would
have Earned Income but for the fact the trade or business for which this Plan
is established did not have net profits for such Fiscal Year).

 

Severance from Employment means an Employee has ceased
to be an Employee of the Employer. The Plan Administrator shall determine if a
Severance from Employment has occurred in accordance with section 1.401 (k)-1
(d)(2) of the regulations.

 

Totally and Permanently Disabled means that a
Participant is disabled, as a result of sickness or injury. to the extent that
he is prevented from engaging in any substantial gainful activity, and is
eligible for and receives a disability benefit under Title II of the Federal
Social Security Act.

 

Trust Agreement means an agreement or
agreements of trust between the Primary Employer and Trustee established for
the purpose of holding and distributing the Trust Fund under the provisions of
the Plan. The Trust Agreement may provide for the investment of all or any
portion of the Trust Fund in the Annuity Contract or any other investment
arrangement.

 

Trust Fund means the total funds held
under an applicable Trust Agreement. The term Trust Fund when used within a
Trust Agreement shall mean only the funds held under that Trust Agreement.

 

Trustee means the party or parties named in the
applicable Trust Agreement.

 

Valuation Date means the date on which the
value of the assets of the Investment Fund IS determined. The value of each
Account that is maintained under this Plan shall be determined on the Valuation
Date. In each Plan Year, the Valuation Dale shall be the last day of the Plan
Year. At the discretion of the Plan Administrator, Trustee, or Insurer
(whichever applies), assets of the Investment Fund may be valued more
frequently. These dates shall also be Valuation Dates.

 

19

 

Vested Account means the vested part of a
Participant’s Account. The Participant’s Vested Account is determined as
follows.

 

If
the Participant’s Vesting Percentage IS 100% his Vested Account equals his
Account.

 

If
tile Participant’s Vesting Percentage is not 100%, his Vested Account equals
the sum of (a) and (b) below:

 

(a)                             The part of the
Participant’s Account resulting from Employer Contributions made before a prior
Forfeiture Date and all other Contributions that were 100% vested when made.

 

(b)                            The balance of
the Participant’s Account in excess of the amount in (a) above multiplied
by his Vesting Percentage.

 

If
the Participant has withdrawn any part of his Account resulting from Employer
Contributions, other than the vested Employer Contributions included in (a) above,
the amount determined under this subparagraph (b) shall be equal to PIAB + Dl - D as
defined below:

 

P                                    The Participant’s
Vesting Percentage.

 

AB                         The balance of
the Participant’s Account in excess of the amount in (a) above.

 

D                                  The amount of
the withdrawal resulting from Employer Contributions, other than the vested
Employer Contributions included in (a) above.

 

Vesting Break in Service means a Vesting Computation
Period in which an Employee is credited with 500 or fewer Hours of Service. An
Employee incurs a Vesting Break in Service on the last day of a Vesting
Computation Period in which he has a Vesting Break in Service.

 

Vesting Computation Period means a consecutive 12-month
period ending on the last day of each Plan Year including corresponding
consecutive 12-month periods before July 1, 1990.

 

Vesting Percentage means the percentage used to
determine the non-forfeitable portion of a Participant’s Account attributable
to Employer Contributions that were not 100% vested when made.

 

A
Participant’s Vesting Percentage is shown in the following schedule opposite
the number of whole years of his Vesting Service.

 

	
  VESTING
  SERVICE

  (whole years)

  	
   

  	
  VESTING

  PERCENTAGE

  
	
   

  	
   

  	
   

  
	
  Less than 1

  	
   

  	
  0

  
	
  1

  	
   

  	
  25

  
	
  2

  	
   

  	
  50

  
	
  3

  	
   

  	
  75

  
	
  4 or more

  	
   

  	
  100

  

 

20

 

The
Vesting Percentage for a Participant who IS an Employee on
or alter the date he reaches Normal Retirement Age shall be 100%. The Vesting
Percentage for a Participant who is an Employee on the date he dies shall be 100%.
The Vesting Percentage for a Participant who IS an Employee on
the date he becomes disabled sha11 be 100% if such disability is subsequently
determined to meet the definition of Totally and Permanently Disabled.

 

If
the schedule used to determine a Participant’s Vesting Percentage is changed,
the new schedule shall not apply to a Participant unless he is credited with an
Hour of Service on or after the date 01 the change and the Participant’s
non-forfeitable percentage on the day before the date of the change is not
reduced under this Plan. The amendment provisions of the AMENDMENTS SECTION of
Article X regarding changes in the computation of the Vesting Percentage
shall apply.

 

Vesting Service means one year of service
for each Vesting Computation Period in which an Employee is credited with at
least 1,000 Hours of Service.

 

However,
Vesting Service is modified as follows:

 

Service
with a Predecessor Employer that did not maintain this Plan included:

 

An
Employee’s service with a Predecessor Employer that did not maintain this Plan
shall be included as service with the Employer. This service excludes service
performed while a proprietor or partner.

 

Period
of Military Duty included:

 

A
Period of Military Duty shall be included as service with the Employer to the
extent it has not already been credited. For purposes of crediting Hours of
Service during the Period of Military Duty, all Hour of Service shall be
credited (without regard to the 501 Hour of Service limitation) for each hour
an Employee would normally have been scheduled to work for the Employer during
such period.

 

Controlled
Group service included:

 

An
Employee’s service with a  member firm of a
Controlled Group while both that firm and the Employer wore members of the
Controlled Group shall be included as service with the Employer.

 

Yearly Date means July 1, 1990, and
each following January 1.

 

Years of Service means an Employee’s Vesting
Service disregarding any modifications that exclude service.

 

21

 

ARTICLE II

 

PARTICIPATION

 

SECTION 2.01—ACTIVE PARTICIPANT.

 

(a)                         An Employee
shall first become an Active Participant (begin active participation in the
Plan) on the earliest Quarterly Date on which he is an Eligible Employee and
has met the eligibility requirement set forth below. This date is his Enrry Date.

 

(1)                        He has completed
one year of Eligibility Service before his Entry Date.

 

The
requirement in item 11) above is waived on January 1, 2007. This date
shall be an Entry Date if the Eligible Employee has met all the other
eligibility requirements.

 

Each
Employee who was an Active Participant on December 31, 2006, shall
continue to be an Active Participant if he is still an Eligible Employee on January 1,
2007, and his Entry Date shall not change.

 

If
service with a Predecessor Employer is counted for purposes of Eligibility
Service, an Employee shall be credited with such service on the date he becomes
an Employee and shall become an Active Participant on the earliest Quarterly
Date on which he is an Eligible Employee and has met all of the eligibility
requirements above. This date is his Entry Date.

 

If
a person has been an Eligible Employee who has met all of the eligibility
requirements above, but is not an Eligible Employee on the date that would have
been his Entry Date, he shall become an Active Participant on the date he again
becomes an Eligible Employee. This date is his Entry Date.

 

In
the event an Employee who is not an Eligible Employee becomes an Eligible
Employee, such Eligible Employee shall become an Active Participant immediately
if such Eligible Employee has satisfied the eligibility requirements above and
would have otherwise previously become an Active Participant had he met the
definition of Eligible Employee. This date in his Entry Date.

 

(b)                        An Inactive
Participant shall again become an Active Participant (resume active
participation in the Plan) on the date he again performs an Hour of Service as
an Eligible Employee. This date is his Reentry Date.

 

Upon
again becoming an Active Participant, he shall cease to be an Inactive
Participant.

 

(c)                         A former
Participant shall again become an Active Participant (resume active
participation in the Plan) on the date he again performs an Hour of Service as
an Eligible Employee. This date is his Reentry Date.

 

There
shall be no duplication of benefits for a Participant under this Plan because
of more than one period as an Active Participant.

 

	
  RESTATEMENT JANUARY 1,
  2007

  	
  ARTICLE
  II (8-3450)

  

 

22

 

SECTION 2.02—INACTIVE PARTICIPANT.

 

An
Active Participant shall become an Inactive Participant (stop accruing benefits
under the Plan)  on the earlier of the following:

 

(a)                       the date the
Participant ceases to be an Eligible Employee, or

 

(b)                      the effective date
of complete termination of the Plan under Article VIII.

 

An Employee or former Employee who was an Inactive Participant under the
Plan on December 31, 2006, shall continue to be an Inactive Participant on
January 1, 2007. Eligibility for any benefits payable to the Participant
or on his behalf and the amount
of the benefits shall be determined according to the provisions of the prior
document, unless otherwise stated in this document.

 

SECTION 2.03—CESSATION OF PARTICIPATION.

 

A
Participant shall cease to be a Participant on the date he is no longer an
Eligible Employee and his Account is zero.

 

23

 

ARTICLE III

 

CONTRIBUTIONS

 

SECTION 3.01—EMPLOYER CONTRIBUTIONS.

 

Employer
Contributions shall be made without regard to current or accumulated net
income, earnings, or profits of the Employer. Notwithstanding the foregoing,
the Plan shall continua to be designed to Qualify as a profit sharing plan for
purposes of Code Sections 401(a), 402, 412, and 417. Such Contributions shall
be equal to the Employer Contributions as described below:

 

(a)                        The amount of
each Elective Deferral Contribution for iI Participant
shall be equal to a portion of Compensation as specified in the elective
deferral agreement. An Employee who is eligible to participate in the Plan for
purposes of Elective Deferral Contributions may file an elective deferral
agreement with the Employer. The Participant shall modify or terminate the
elective deferral agreement by filing a new elective deferral agreement. The
elective deferral agreement may not be made retroactively and shall remain in
effect until modified or terminated.

 

The
elective deferral agreement to start or modify Elective Deferral Contributions
shall be effective as soon as administratively feasible following the dale on
which the Participant’s Entry Date (Reentry Date. if applicable)
or any following Quarterly Date occurs. The elective deferral agreement must be
entered into on or before the date it is effective.

 

The
elective deferral agreement to stop Elective Deferral Contributions may be
entered into on any date. Such elective deferral agreement shall
be effective as soon as administratively feasible following the date on which
the elective deferral agreement is entered into.

 

Elective
Deferral Contributions cannot be more than 75% of Compensation. A Participant
who is eligible to make Catch-up Contributions shall not be limited to the
maximum deferral percentage unless his Elective Deferral Contributions,
including Catch-Up Contributions, exceed this limit plus the dollar amount of
Catch-up Contributions permitted.

 

A
Participant who is age 50 or older by the end of the taxable year
shall be eligible to make Catch-up Contributions.

 

Elective
Deferral Contributions are 100% vested and non-forfeitable.

 

(b)                       The Employer may
make discretionary Matching Contributions. The percentage of Elective Deferral
Contributions matched, if any, shall be a percentage as determined by the
Employer. Elective Deferral Contributions that are over a percentage of
Compensation won’t be matched. The percentage shall be determined by the
Employer.

 

Matching
Contributions are calculated based on Elective Deferral Contributions and
Compensation for the pay period. Matching Contributions are made for all persons
who were Active Participants at any time during that pay period.

 

	
  RESTATEMENT JANUARY 1,
  2007

  	
  ARTICLE
  III (8-3450)

  

 

24

 

Any
percentage determined by the Employer shall apply to all eligible persons for
the entire Plan Year.

 

Matching
Contributions are subject to the Vesting Percentage.

 

(c)                         Discretionary
Contributions may be made for each Plan Year in an amount determined by the
Employer.

 

Discretionary
Contributions arc subject to the Vesting Percentage.

 

No
Participant shall be permitted to have Elective Deferral Contributions, as
defined in the EXCESS AMOUNTS SECTION of this article, made under this
Plan, or any other plan, contract, or arrangement maintained by the Employer,
during any calendar year, in excess of the dollar limitation contained in Code Section 402(g) in
effect for the Participant’s taxable year beginning in such calendar year. The
dollar limitation in the preceding sentence shall be increased by the dollar
limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) for
the taxable year for any Participant who will be age 50 or older by the end of
the taxable year.

 

The
dollar limitation contained in Code Section 402(g) is $10,500 for
taxable years beginning in 2000 and 2001, increasing to $11,000 for taxable
years beginning in 2002, and increasing by $1,000 for each year thereafter up
to $15,000 for taxable years beginning in 2006 and later years. After 2006 the
$15,000 limit will be adjusted by the Secretary 01 the Treasury for cost-of-living
increases under Code Section 402(g)(4). Any such adjustments will be in
multiples of $500.

 

Catch-up
Contributions for a Participant for a taxable year may not exceed the dollar
limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) for
the taxable year. The dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) is
$1,000 for taxable years beginning in 2002, increasing by $1,000 for each year
thereafter up to $5,000 for taxable years beginning in 2006 and later years.
After 2006, the $ 5.000 limit will be adjusted by the Secretary of the Treasury
for cost-of-living increases under Code Section 414(v)(2)(C). Any such
adjustments will be in multiples of $500.

 

An
elective deferral agreement (or change thereto) must be made in such manner and
in accordance with such rules as the Employer may prescribe (including by
means of voice response or other electronic system under circumstances the
Employer permits) and may not be made retroactively.

 

Employer
Contributions arc allocated according to the provisions of the ALLOCATION SECTION of
this article.

 

A
portion of the Plan assets resulting from Employer Contributions (but not more
than the original amount of those Contributions) may be returned if the
Employer Contributions are made because of a mistake of fact or are more than
the amount deductible under Code Section 404 (excluding any amount which
is not deductible because the Plan is disqualified). The amount involved must
be returned to the Employer within one year after the date the Employer
Contributions are made by mistake of fact or the date the deduction is
disallowed, whichever applies. Except as provided under this paragraph and Article VIII,
the assets of the Plan shall never be used for the benefit of the Employer and
are held for the exclusive purpose of providing benefits 10 Participants and
their Beneficiaries and for defraying reasonable expenses of administering the
Plan.

 

25

 

SECTION 3.01A—ROLLOVER
CONTRIBUTIONS.

 

A
Rollover Contribution may be made by an Eligible Employee or an Inactive
Participant if the following conditions are met:

 

(a)                       Beginning January 1,
2002, the Contribution is a Participant Rollover Contribution or a direct
rollover of a distribution made after December 31, 2001 from the types of
plans specified below.

 

Direct
Rollovers. The Plan will accept a direct rollover of an
Eligible Rollover Distribution from (i) a qualified plan described in Code
Section 401(a) or 403(a), including after-tax employee contributions
and excluding any portion of a designated Roth account; (ii) an annuity
contract described In Code Section 403(b), excluding after-tax employee
contributions and any portion of a designated Roth account; and (iii) an
eligible plan under Code Section 457(b) 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.

 

Participant
Rollover Contributions from Other Plans. The Plan will accept
a Participant contribution of an Eligible Rollover Distribution from (i) a
qualified plan described in Code Section 401(a) or 403(a), excluding
distributions of a designated Roth account; (i) an annuity contract
described in Code Section 403(b), excluding any distribution of a
designated Roth account; and (iii) an eligible plan under Code Section 457(b) 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.

 

Participant
Rollover Contributions from IRAs. The Plan will accept a
Participant Rollover Contribution of the portion of a distribution from an
individual retirement account or individual retirement annuity described in
Code Section 408(a) or (b) that is eligible to be rolled over
and would otherwise be includible in the Participant’s gross Income.

 

(b)                       The Contribution
is of amounts that the Code permits to be transferred to a plan that meets the requirements of Code Section 401(a).

 

(c)                        The Contribution
is made in the form of a direct rollover under Code Section 401 (a)(31) or
is a rollover made under Code Section 402(c) or 408(d)(3)(A) within
60 days after the Eligible Employee or Inactive Participant receives the
distribution.

 

(d)                       The Eligible
Employee or Inactive Participant furnishes evidence satisfactory to the Plan
Administrator that the proposed rollover meets conditions (a), (b), and (c) above.

 

(e)                        In the case of
an Inactive Participant, the Contribution must be of an amount distributed from
another plan of the Employer, or a plan of a Controlled Group member, that
satisfies the requirements of Code Section 401 (a).

 

A
Rollover Contribution shall be allowed in cash only and must be made according
to procedures set up by the Plan Administrator.

 

If
the Eligible Employee is not an Active Participant when the Rollover
Contribution is made, he shall be deemed to be an Active Participant only for
the purpose of investment and distribution of the Rollover Contribution.

 

26

 

Employer Contributions shall
not be made for or allocated to the Eligible Employee until the time he meets
all of the requirements to become an Active Participant.

 

Rollover Contributions made by an Eligible Employee or an Inactive
Participant shall be credited to his Account. The part of the Participant’s
Account resulting from Rollover Contributions is 100% vested and
non-forfeitable at all times. Separate accounting records shall be maintained
for those parts of his Rollover Contributions consisting of Ii) voluntary
contributions which were deducted from the Participant’s gross income for
Federal Income tax purposes and (ii) after-tax employee contributions,
including the portion that would not have been includible in the Participant’s
gross income If the contributions were not rolled over into this Plan.

 

SECTION 3.02—FORFEITURES.

 

The
Non-vested Account of a Participant shall be forfeited as of the earlier of the
following:

 

(a)                       the date the
record keeper is notified that the Participant died (if prior to such date he
has had a Severance from Employment), or

 

(b)                      the Participant’s
Forfeiture Date.

 

All
or a portion of a Participant’s Non-vested Account shall be forfeited before
such earlier date if, after he has D Severance from
Employment, he receives, or is deemed to receive, a distribution of his entire
Vested Account or a distribution of his Vested Account derived from Employer
Contributions which were not 100% vested when made, under the RETIREMENT
BENEFITS SECTION of Article V, the VESTED BENEFITS SECTION of Article V,
or the SMALL AMOUNTS SECTION of Article X. The forfeiture shall occur
as of the date the Participant receives, or is deemed to receive, the
distribution. If a Participant receives, or is deemed to receive, his entire
Vested Account, his entire Non-vested Account shall be forfeited. If a
Participant receives a distribution of his Vested Account from Employer
Contributions that were not 100% vested when made, but less than his entire
Vested Account, the amount to be forfeited shall be determined by multiplying
his Non-vested Account from such Contributions by a fraction. The numerator of
the fraction is the amount of the distribution derived from Employer
Contributions that were not 100% vested when made and the denominator of the
fraction is his entire Vested Account derived from such Contributions on the
date of the distribution.

 

A
Forfeiture shall also occur as provided m the EXCESS AMOUNTS SECTION of
this article.

 

Forfeitures shall be determined at least once during each Plan Year.
Forfeitures may first be used to pay  administrative expenses.
Forfeitures of Matching Contributions that relate to excess amounts as provided
in the EXCESS AMOUNTS SECTION of this article, that have not been used to
pay administrative expenses, shall be applied to reduce the earliest Employer
Contributions made after the Forfeitures are determined. Any other Forfeitures
that have not been used to pay administrative expenses shall be applied to
reduce the earliest Employer Contributions made after the Forfeitures are
determined. Upon their application to reduce Employer Contributions,
Forfeitures shall be deemed to be Employer Contributions.

 

If a Participant again becomes an Eligible Employee alter receiving a
distribution which caused all or a portion of his Non-vested Account to be
forfeited, he shall have the right to repay to the Plan the entire amount of
the distribution he received (excluding any amount of such distribution
resulting from Contributions which were 100% vested when made>. The
repayment must be made in a single sum (repayment in installments is not
permitted) before the earlier of the date five years alter the date he again
becomes an Eligible Employee or the end of the first period of five consecutive
Vesting Breaks in Service which Begin after the date of the distribution.

 

27

 

If the Participant makes the repayment above, the Plan Administrator
shall restore to his Account an amount equal to his Non-vested Account that was
forfeited on the date of distribution, unadjusted for any investment gains or
losses. If no amount is to be repaid because the Participant was deemed to have
received a distribution, or only received a distribution of Contributions which
were 100% vested when made, and he again performs an Hour of Service as an
Eligible Employee within the repayment period, the Plan Administrator shall
restore the Participant’s Account as if he had made a required repayment on the
date he performed such Hour of Service. Restoration of the Participant’s
Account shall include restoration of all Code Section 411(d)(6)) protected
benefits with respect to the restored Account, according to applicable Treasury
regulations. Provided, however, the Plan Administrator shall not restore the
Non-vested Account if (i) a Forfeiture Date has occurred after the date of
the distribution and on or before the date of repayment and (ii) that
Forfeiture Date would result in a complete forfeiture of the amount the Plan
Administrator would otherwise restore.

 

The Plan Administrator shall restore the Participant’s Account by the
close of the Plan Year following the Plan Year in which repayment is made. The
permissible sources for restoration of the Participant’s Account are
Forfeitures or special Employer Contributions. Such special Employer
Contributions shall be made without regard to profits. The repaid and restored
amounts are not included in the Participant’s Annual Additions, as defined in
the CONTRIBUTION LIMITATION SECTION of this article.

 

SECTION 3.03—ALLOCATION.

 

A person meets the allocation requirements of this section if he was an
Active Participant at any time during the Plan Year.

 

Elective Deferral Contributions shall be allocated to the Participants
for whom such Contributions are made
under the EMPLOYER CONTRIBUTIONS SECTION of this article. Such
Contributions shall be allocated when made and credited to the Participant’s
Account.

 

Matching Contributions shall be allocated to the persons for whom such
Contributions are made under the EMPLOYER CONTRIBUTIONS SECTION of this
article. Such Contributions shall be allocated when made and credited to the
person’s Account.

 

Discretionary Contributions shall be allocated as of the last day of the
Plan Year using Annual Compensation for the Plan Year. In years in which the
Plan is a Top-heavy Plan, as defined in the DEFINITIONS SECTION of Article XI,
and the minimum contribution under the MODIFICATION OF CONTRIBUTIONS SECTION of
Article XI is not being provided by other contributions to this Plan or
another plan of the Employer, the allocation shall be made to each person
meeting the allocation requirements of this section and each person entitled to
a minimum contribution under the MODIFICATION OF CONTRIBUTIONS SECTION of Article XI.
In all other years, the allocation shall be made for each person meeting the
allocation requirements of this section. The amount allocated shall be equal to
the Discretionary Contributions multiplied by the ratio of such person’s Annual
Compensation to the total Annual Compensation for all such persons. The
allocation for any person who does not meet the allocation requirements of this
section shall be limited to the amount necessary to fund the minimum
contribution.

 

28

 

In
years in which the Plan is a Top-heavy Plan, the minimum contribution under the
MODIFICATION OF CONTRIBUTIONS SECTION of Article XI is not being
provided by other contributions to this Plan or another plan of the Employer,
and the allocation described above (or any subsequent allocation described
below! would provide an allocation for any person less than the minimum
contribution required for such person in the MODIFICATION OF CONTRIBUTIONS SECTION of
Article XI, such minimum contribution shall first be allocated to all such
persons. Then any amount remaining shall be allocated to the remaining persons
sharing in the allocation based on Annual Compensation as described above, as
if they were the only persons sharing in the allocation for the Plan Year.

 

This
amount shall be credited to the person’s Account.

 

If
Leased Employees are Eligible Employees, in determining the amount of Employer
Contributions allocated to a person who is a Leased Employee, contributions
provided by the leasing organization that arc attributable to services such
Leased Employee performs for the Employer shall be treated as provided by the
Employer. Those contributions shall not be duplicated under this Plan.

 

SECTION 3.04—CONTRIBUTION
LIMITATION.

 

(a)                      Definitions. For the
purpose of determining the contribution limitation set forth in this section,
the following terms are defined.

 

Annual
Additions means the sum of the following amounts credited to a Participant’s
account for the Limitation Year:

 

(1 J                    employer
contributions;

 

(2)                        employee
contributions: and

 

(3)                        forfeitures.

 

Annual
Additions to a defined contribution plan shall also include the following:

 

(4)                        amounts
allocated to an Individual medical account, as defined in Code Section 415(1)(21.
which are part of a pension or annuity plan maintained by the Employer;

 

(5)                        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 Code Section 419A(d)(3). under a welfare benefit fund, as defined
in Code Section 419(e), maintained by the Employer; and

 

(6)                        allocations
under a simplified employee pension.

 

For
this purpose, any Excess Amount applied under (e) and (k) below in
the Limitation Year to reduce Employer Contributions shall be considered Annual
Additions for such Limitation Year.

 

Compensation
means wages within the meaning of Code Section 3401 (a) and all other
payments of compensation to an Employee by the Employer (in the course of the
Employer’s trade or business) for which the Employer is required to furnish the
Employee a written statement under

 

29

 

Code
Sections 6041(d), 6051(a)(3) and 6052. Compensation must be determined
without regard to any rules under Code Section 3401 (a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for  agricultural labor in Code Section 3401
(a)(2). The type of compensation that is reported in the “Wages, Tips and Other
Compensation” box on Form W-2 satisfies this definition.

 

For
any Self-employed Individual, Compensation shall mean Earned Income.

 

For
purposes of applying the limitations of this section, Compensation for a
Limitation Year is the Compensation actually paid or made available in gross
income during such Limitation Year.

 

Compensation
paid 01 made available during such Limitation Year 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
which is not includible in the gross income of the Employee by reason of Code Section 125,
132(f)(4), or 457,

 

For
Limitation Years beginning on and after January 1, 2005, payments made
within 2 1/2 months after Severance from Employment will be Compensation if
they are payments that, absent a Severance from Employment, would have been
paid to the Employee while the Employee continued in employment with the
Employer and are regular compensation for services during the Employee’s
regular working hours, compensation for services outside the Employee’s regular
working hours (such as overtime or shift differential), commissions, bonuses,
or other similar compensation, and payments for accrued bona fide sick,
vacation, or other leave, but only if the Employee would have been able to use
the leave if employment had continued. Any payments not described above arc not
considered compensation if paid after Severance from Employment, even if they
are paid within 2 1/2  months following Severance
from Employment, except for payments to an individual who does not currently
perform services for the Employer by reason of qualified military service
(within the meaning of Code Section 414(u)(1)) to the extent these payments do
not exceed the amounts the individual would have received if the individual had
continued to perform services for the Employer rather than entering qualified
military service.

 

Defined Contribution Dollar Limitation means $40,000,
as adjusted for cost-of living increases under Code Section 415(d).

 

Employer means the employer that
adopts this Plan, and all members of a controlled group of corporations (as
defined in Code Section 414(b) as modified by Code Section 415(h)),
all commonly controlled trades or businesses (as defined in Code Section 414(c) as
modified by Code Section 415(h) or affiliated service groups (as
defined in Code Section 41 4(m)) of which the adopting employer is a part,
and any other entity required to be aggregated with the employer pursuant to
regulations under Code Section 414(o).

 

Excess Amount means the excess of the
Participant’s Annual Additions for the limitation Year over the Maximum Annual
Addition.

 

Limitation Year means the consecutive
12-month period ending on the last day of each Plan Year, including
corresponding consecutive 12-month periods before July 1, 1990. If the
limitation Year is other than the calendar year, execution of this Plan (or any
amendment to this Plan changing the Limitation Year) constitutes the Employer’s
adoption of a written resolution

 

30

 

electing
the Limitation Year. If the Limitation Year IS amended to a different
consecutive 12-month period, the new Limitation Year must begin on a date
within the limitation Year in which the amendment is made.

 

Maximum
Annual Addition means, for Limitation Years beginning on or after January 1,
2002, except for catch-up contributions described in Code Section 414(v),
the Annual Addition that may be contributed or allocated to a Participant’s
Account under the Plan for any Limitation Year. This amount shall not exceed
the lesser of:

 

(1)     The Defined Contribution
Dollar Limitation, or

 

(2)     100 percent of the
Participant’s Compensation for the Limitation Year.

 

The
compensation limitation referred to in (2) shall not apply to any
contribution for medical benefits (within the meaning of Code Section 401(h) or
419A(f)(2)) after separation from service that is otherwise treated as an
Annual Addition.

 

If
a short limitation Year is created because of an amendment changing the
Limitation Year to a different consecutive 12-month period, the Maximum Annual
Addition will not exceed the Defined Contribution Dollar Limitation multiplied
by the following fraction:

 

Number of months (including any fractional parts of a month) in the
short Limitation Year

12

 

(b)   If the Participant does not
participate in, and has never participated in, another qualified plan
maintained by the Employer or a welfare benefit fund, as defined in Code Section 419(e),
maintained by the Employer, or an individual medical account, as defined in
Code Section 415(1)(2), maintained by the Employer, or a simplified
employee pension, as defined in Code Section 408(k), maintained by the
Employer, which provides an Annual Addition, the amount of Annual Additions
which may be credited to the Participant’s Account for any Limitation Year
shall not exceed the lesser of the Maximum Annual Addition or any other
limitation contained in this Plan. If the Employer Contribution that would
otherwise be contributed or allocated to the Participant’s Account would cause
the Annual Additions for the Limitation Year to exceed the Maximum Annual
Addition, the amount contributed or allocated shall be reduced so that the
Annual Additions for the Limitation Year will equal the Maximum Annual
Addition.

 

(c)   Prior to
determining the Participant’s actual Compensation for the Limitation Year, the
Employer may determine the Maximum Annual Addition for a Participant on the
basis of a reasonable estimation of the Participant’s Compensation for the
Limitation Year, uniformly determined for all Participants similarly situated.

 

(d)   As soon as is
administratively feasible after the end of the Limitation Year, the Maximum
Annual Addition for the Limitation Year will be determined on the basis of the
Participant’s actual Compensation for the limitation Year.

 

(e)   If as a result of a
reasonable error in estimating a Participant’s Compensation for the Limitation
Year, a reasonable error in determining the amount of elective deferrals
(within the meaning of

 

31

 

Code
Section 402(g)(3)) that may be made with respect to any individual under
the limits of Code Section 415, or under other facts and circumstances
allowed by the Internal Revenue Service, there is an Excess Amount, the excess
will be disposed of as follows:

 

(1)     Any Elective Deferral
Contributions that are not the basis for Matching Contributions (plus
attributable earnings), to the extent they would reduce the Excess Amount, will
be distributed to the Participant.

 

(2)     If after the application of (1) above
an Excess Amount still exists, any Elective Deferral Contributions that are the
basis for Matching Contributions (plus attributable earnings), to the extent
they would reduce the Excess Amount, will be distributed to the Participant.
Concurrently with the distribution of such Elective Deferral Contributions, any
Matching Contributions that relate to any Elective Deferral Contributions
distributed in the preceding sentence, to the extent such application would
reduce the Excess Amount, will be applied as provided in (3) or (4) below:

 

(3)     If after the application of (2) above
an Excess Amount still exists, and the Participant is covered by the Plan at
the end of the Limitation Year, the Excess Amount in the Participant’s Account
will be used to reduce Employer Contributions for such Participant in the next
limitation Year, and each succeeding Limitation Year if necessary.

 

(4)     If after the application of (2) above
an Excess Amount still exists, and the Participant is not covered by the Plan
at the end of the Limitation Year, the Excess Amount will be held unallocated
in a suspense account. The suspense account will be applied to reduce future
Employer Contributions for all remaining Participants in the next Limitation
Year, and each succeeding Limitation Year if necessary.

 

(5)     If a suspense account is in
existence at any time during a limitation Year pursuant to this (e), it will
participate in the allocation of investment gains or losses. If a suspense
account is in existence at any time during a particular Limitation Year, all
amounts in the suspense account must be allocated and reallocated to
Participant’s Accounts before any Employer Contributions may be made to  the Plan for
that Limitation Year. Excess Amounts held in a suspense account may not be
distributed to Participants or former Participants.

 

(I)    This (f) applies if, in
addition to this Plan, the Participant is covered under another Qualified
defined contribution plan maintained by the Employer, a welfare benefit fund
maintained by the Employer, an individual medical account maintained by the
Employer, or a simplified employee pension maintained by the Employer which
provides an Annual Addition during any Limitation Year. The Annual Additions
which may be credited to a Participant’s Account under this Plan for any such
Limitation Year will not exceed the Maximum Annual Addition, reduced by the
Annual Additions credited to a Participant’s account under the other Qualified
defined contribution plans, welfare benefit funds, individual medical accounts,
and simplified employee pensions for the same limitation Year. If the Annual
Additions with respect to the Participant under other Qualified defined
contribution plans, welfare benefit funds, individual medical accounts, and
simplified employee pensions maintained by the Employer are less than the
Maximum Annual Addition, and the Employer Contribution that would otherwise be
contributed or allocated to the Participant’s Account under this Plan would
cause the Annual Additions for

 

32

 

the
Limitation Year to exceed this limitation, the amount contributed or allocated
will be reduced so that the Annual Additions under all such plans and funds for
the limitation Year will equal the Maximum Annual Addition. If the Annual
Additions with respect to the Participant under such other Qualified defined
contribution plans, welfare benefit funds, individual medical accounts, and
simplified employee pensions in the aggregate are equal to or greater than the
Maximum Annual Addition, no amount will be contributed or allocated to the
Participant’s Account under this Plan for the limitation Year.

 

(g)   Prior to determining the
Participant’s actual Compensation for the Limitation Year, the Employer may
determine the Maximum Annual Addition for a Participant in the manner described
in (c) above.

 

(h)   As soon as is
administratively feasible after the end of the Limitation Year, the Maximum
Annual Addition for the Limitation Year will be determined on the basis of the
Participant’s actual Compensation for  the
limitation Year.

 

(i)    If pursuant to (h) above
or as a result of the allocation of forfeitures or as a result of a reasonable
error in determining the amount of elective deferrals (within the meaning of
Code Section 402(g)(3)) that may be made with respect to any individual
under the limits of Code Section 415, a Participant’s Annual Additions
under this Plan and such other plans would result in an Excess Amount for a
Limitation Year, the Excess Amount will be deemed to consist of the Annual
Additions last allocated, except that Annual Additions attributable to a
simplified employee pension will be deemed to have been allocated first,
followed by Annual Additions to a welfare benefit fund or
individual medical account, regardless of the actual allocation date.

 

(j)    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 will be the product of:

 

(1)     the total Excess Amount
allocated as of such date, times

 

(2)     the ratio of (i) the Annual
Additions allocated to the Participant for the Limitation Year as of such date
under this Plan to (ii) the total Annual Additions allocated to the
Participant for the Limitation Year as of such date under this and all the
other qualified defined contribution plans.

 

(k)   Any Excess
Amount attributed to this Plan will be disposed of in the manner described in (e) above.

 

SECTION 3.05—EXCESS AMOUNTS.

 

(a)   Definitions. For purposes
of this section, the following terms are defined:

 

ACP means, for a  specified group of
Participants (either Highly Compensated Employees or Non-highly Compensated
Employees) for a Plan Year, the average (expressed as a percentage) of the
Contribution Percentages of the Eligible Participants in the group.

 

33

 

ADP  means, for a specified group
of Participants (either Highly Compensated Employees or Non-highly Compensated
Employees) for a Plan Year, the average (expressed as a percentage) of the
Deferral Percentages of the Eligible Participants in the group.

 

Catch-up Contributions means Elective Deferral
Contributions made to a plan that are in excess of an otherwise applicable plan
limit and that are made by participants who are age 50 or older by the end of
the taxable year. An otherwise applicable plan limit is a limit in the plan
that applies to Elective Deferral Contributions without regard to Catch-up
Contributions, such as the limits on the maximum annual additions under Code Section 415,
the dollar limitation on Elective Deferral Contributions under Code Section 402(g) (not
counting Catch-up Contributions), and the limit imposed by the
nondiscrimination test described in Code Section 401 (k)(3).

 

Contribution Percentage means the ratio (expressed
as a percentage) of the Eligible Participant’s Contribution Percentage Amounts
to the Eligible Participant’s Compensation for the Plan Year (whether or not
the Eligible Participant was an Eligible Participant for the entire Plan Year).
For an Eligible Participant for whom such Contribution Percentage Amounts for
the Plan Year are zero, the percentage is zero.

 

Contribution Percentage Amounts means the sum
of the Participant Contributions and Matching Contributions (that are not
Qualified Matching Contributions taken into account for purposes of the ADP
Test) made under the plan on behalf of the Eligible Participant for the plan
year. For plan years beginning on or after January 1, 2006, Matching
Contributions cannot be taken into account for a plan year for a Non-highly
Compensated Employee to the extent there are disproportionate matching
contributions as defined in section 1.401(m)-2(a)(5)(ii) of the
regulations. Such Contribution Percentage Amounts shall not include Matching
Contributions that are forfeited either to correct Excess Aggregate
Contributions or because the contributions to which they relate are Excess
Elective Deferrals, Excess Contributions, or Excess Aggregate Contributions.
Under such rules as the Secretary of the Treasury shall prescribe, in
determining the Contribution Percentage the Employer may elect to include
Qualified Non-elective Contributions under this Plan that were not used in
computing the Deferral Percentage. For plan years beginning on or after January 1,
2006, Qualified Non-elective Contributions cannot be taken into account for a
plan year for a Non-highly Compensated Employee to the extent they are
disproportionate contributions as defined in section 1.401(m)-2(a)(6)(v) of
the regulations. The Employer may also elect to use Elective Deferral
Contributions in computing the Contribution Percentage so long as the ADP Test
is met before the Elective Deferral Contributions are used in the ACP Test and
continues to be met following the exclusion of those Elective Deferral
Contributions that are used to meet the ACP Test.

 

Deferral Percentage means the ratio (expressed
as a percentage) of Elective Deferral Contributions (other than Catch-up
Contributions) under this Plan on behalf of the Eligible Participants for the
Plan Year to the Eligible Participants Compensation for the Plan Year (whether
or not the Eligible Participant was an Eligible Participant for the entire Plan
Year). The Elective Deferral Contributions used to determine the Deferral
Percentage shall include Excess Elective Deferrals (other than Excess Elective
Deferrals of Non-highly Compensated Employees that arise solely from Elective
Deferral Contributions made under this Plan or any other plans of the Employer
or a Controlled Group member), but shall exclude Elective Deferral
Contributions that are used in computing the Contribution Percentage (provided
the ADP Test is satisfied both with and without exclusion of these  Elective
Deferral Contributions). Under such rules as the Secretary of the Treasury
shall

 

34

 

prescribe,
the Employer may elect to include Qualified Non-elective Contributions and
Qualified Matching Contributions under this Plan in computing the Deferral
Percentage. For Plan Years beginning on or after January 1, 2006,
Qualified Matching Contributions cannot be taken into account for a Plan Year
for a Non-highly Compensated Employee to the extent there are disproportionate
matching contributions as defined in section 1.401 (m)-2(a)(5)(ii) of the
regulations. For Plan Years beginning on or after January 1, 2006,
Qualified Non-elective Contributions cannot be taken into account for a Plan
Year for a Non-highly Compensated Employee to the extent they are
disproportionate contributions as defined in section 1.401(K) 2(a)(6)(iv) of
the regulations. For an Eligible Participant for whom such contributions on his
behalf for the Plan Year are zero, the percentage is zero.

 

Elective Deferral Contributions means any
employer contributions made to a plan at the election of a participant in lieu
of cash compensation. With respect to any taxable year, a participant’s
Elective Deferral Contributions are the sum of all employer contributions made
on behalf of such participant pursuant to an election to defer under any
Qualified cash or deferred arrangement described in Code Section 401 (k),
any salary reduction simplified employee pension plan described in Code Section 408(k)(6),
any SIMPLE IRA plan described in Code Section 403(p), any plan described
under Code Section 501(c)(18). and any employer contributions made on
behalf of a participant for the purchase of an annuity contract under Code Section 403(b) pursuant
to a salary reduction agreement. For taxable years beginning after December 31,
2005, Elective Deferral Contributions Include Pre-tax Elective Deferral
Contributions and Roth Elective Deferral Contributions. Elective Deferral
Contributions shall not include any deferrals properly distributed as excess
annual additions.

 

Eligible Participant means, for purposes of
determining the Deferral Percentage, any Employee who is otherwise entitled to
make Elective Deferral Contributions under the terms of the plan for the plan
year. Eligible Participant means, for purposes of determining the Contribution
Percentage, any Employee who is eligible (i) to make a Participant
Contribution or an Elective Deferral Contribution (if the Employer takes such
contributions into account in the calculation of the Contribution Percentage),
or (ii) to receive a Matching Contribution (including forfeitures) or a
Qualified Matching Contribution. If a Participant Contribution is required as a
condition of participation in the plan, any Employee who would be a participant
in the plan if such Employee made such a contribution shall be treated as an
Eligible Participant on behalf of whom no Participant Contributions are made.

 

Excess Aggregate Contributions means, with respect to any
Plan Year, the excess of:

 

(1)     The aggregate Contribution
Percentage Amounts taken into account in computing the numerator of the
Contribution Percentage actually made on behalf of Highly Compensated Employees
for such Plan Year, over

 

(2)     The maximum Contribution
Percentage Amounts permitted by the ACP Test (determined by hypothetically
reducing contributions made on behalf of Highly Compensated Employees in order
of their Contribution Percentages beginning with the highest of such
percentages).

 

Such
determination shall be made after first determining Excess Elective Deferrals
and then determining Excess Contributions.

 

35

 

Excess Contributions means, with respect to any
Plan Year, the excess of:

 

(1)     The aggregate amount of
employer contributions actually taken into account in computing the Deferral
Percentage of Highly Compensated Employees for such Plan Year, over

 

(2)     The maximum amount of such
contributions permitted by the ADP Test (determined by hypothetically reducing
contributions made on behalf of Highly Compensated Employees in the order of
the Deferral Percentages, beginning with the highest of such percentages).

 

Such
determination shall be made after first determining Excess Elective Deferrals.

 

Excess Elective Deferrals means those Elective
Deferral Contributions of a Participant that either (i) are made during
the Participant’s taxable year and exceed the dollar limitation under Code Section 402(g) or
(ii) are made during a calendar year and exceed the dollar limitation
under Code Section 402(g) for the Participant’s taxable year
beginning in such calendar year, counting only Elective Deferral Contributions
made under this Plan and any other plan, contract, or arrangement maintained by
the Employer. The dollar limitation shall be increased by the dollar limit on
Catch-up Contributions under Code Section 414(v), if applicable.

 

Excess
Elective Deferrals shall be treated as Annual Additions, as defined in the
CONTRIBUTION LIMITATION SECTION of this article, under the Plan, unless
such amounts are distributed no later than the first April 15 following
the close of the Participant’s taxable year.

 

Matching Contributions means employer contributions
made to this or any other defined contribution plan, or to a contract described
in Code Section 403(b), on behalf of a participant on account of a
Participant Contribution made by such participant, or on account of a
participant’s Elective Deferral Contributions, under a plan maintained by the
Employer or a Controlled Group member.

 

Participant Contributions means contributions (other
than Roth Elective Deferral Contributions) made to the plan by or on behalf of
a participant that are included in the participant’s gross income in the year
in which made and that are maintained under a separate account to which the
earnings and losses are allocated.

 

Pre-tax Elective Deferral Contributions means a
participant’s Elective Deferral Contributions that are not includible in the
participant’s gross income at the time deferred.

 

Qualified Matching Contributions means Matching
Contributions that are non-forfeitable when made to the plan and that are
distributable only in accordance with the distribution provisions (other than
for hardships) applicable to Elective Deferral Contributions.

 

Qualified Non-elective Contributions means any
employer contributions (other than Matching Contributions) that an Employee may
not elect to have paid to him in cash instead of being contributed to the plan
and that are non-forfeitable when made to the plan and that are distributable
only in accordance with the distribution provisions (other than for hardships)
applicable to Elective Deferral Contributions.

 

36

 

Roth
Elective Deferral Contributions means a participant’s Elective Deferral
Contributions that are includible in the participant’s gross income at the time
deferred and have been irrevocably designated as Roth Elective Deferral
Contributions by the participant in his elective deferral agreement.

 

(b)   Excess Elective
Deferrals. A Participant may assign to this Plan any Excess
Elective Deferrals made during a taxable year of the Participant by notifying
the Plan Administrator in writing on or before the first following March 1
of the amount of the Excess Elective Deferrals to be assigned to the Plan. A
Participant is deemed to notify the Plan Administrator of any Excess Elective
Deferrals that arise by taking into account only those Elective Deferral
Contributions made to this Plan and any other plan, contract, or arrangement of
the Employer or a Controlled Group member. The Participant’s claim for Excess
Elective Deferrals shall be accompanied by the Participant’s written statement
that if such amounts are not distributed, such Excess Elective Deferrals will
exceed the limit imposed on the Participant by Code Section 402(g) (including,
if applicable, the dollar limitation on Catch-up Contributions under Code Section 414(v))
for the year in which the deferral occurred. The Excess Elective Deferrals
assigned to this Plan cannot exceed the Elective Deferral Contributions allocated
under this Plan for such taxable year.

 

Notwithstanding
any other provisions of the Plan, Elective Deferral Contributions in an amount
equal to the Excess Elective Deferrals assigned to this Plan, plus any income
and minus any loss allocable thereto, shall be distributed no later than April 15
to any Participant to whose Account Excess Elective Deferrals were assigned for
the preceding year and who claims Excess Elective Deferrals for such taxable
year or calendar year.

 

The
Excess Elective Deferrals shall be adjusted for any income or loss. The income
or loss allocable to such Excess Elective Deferrals shall be equal to the
income or loss allocable to the Participant’s Elective Deferral Contributions
for the taxable year in which the excess occurred multiplied by a fraction. The numerator
of the fraction is the Excess Elective Deferrals. The denominator of the
fraction is the closing balance without regard to any income or loss occurring
during such taxable year (as of the end of such taxable year) of the
Participant’s Account resulting from Elective Deferral Contributions.

 

For
purposes of determining income or loss on Excess Elective Deferrals for taxable
years beginning on or alter January 1, 2006, any Excess Elective
Deferrals, in addition to any adjustment for income or loss for the taxable
year in which the excess occurred, shall be adjusted for income or loss for the
gap period between the end of such taxable year and the date of distribution.
Such income or loss allocable to the gap period shall be equal to 10% of the
income or loss allocable to the Excess Elective Deferrals for the taxable year
multiplied by the number of complete months (counting 16 days or more as a
complete month) in the gap period.

 

Any
Matching Contributions that were based on the Elective Deferral Contributions
distributed as Excess Elective Deferrals, plus any income and minus any loss
allocable thereto, shall be forfeited whether or not such amounts are
distributed as Excess Elective Deferrals.

 

(c)   ADP Test. As of the end
of each Plan Year after Excess Elective Deferrals have been determined, the
Plan must satisfy the ADP Test. The ADP Test shall be satisfied using the prior
year testing method, unless the Employer has elected to use the current year
testing method.

 

37

 

(1)   Prior Year Testing Method. The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
each Plan Year and the prior year’s ADP for Eligible Participants who were
Non-highly Compensated Employees for the prior Plan Year must satisfy one of
the following tests:

 

(i)      The ADP for a Plan Year for
Eligible Participants who are Highly Compensated Employees for the Plan Year
shall not exceed the prior year’s ADP for Eligible Participants who were
Non-highly Compensated Employees for the prior Plan Year multiplied by 1.25; or

 

(ii)     The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.    shall not exceed the prior
year’s ADP for Eligible Participants who were Non-highly Compensated Employees
for the prior Plan Year multiplied by 2, and

 

B.    the difference
between such ADPs is not more than 2.

 

If
this is not a successor plan, for the first Plan Year the Plan permits any
Participant to make Elective Deferral Contributions, for purposes of the
foregoing tests, the prior year’s Non-highly Compensated Employees’ ADP shall
be 3 percent, unless the Employer has elected to use the Plan Year’s ADP for
these Eligible Participants.

 

121  Current Year
Testing Method. The ADP for a Plan Year for Eligible Participants
who are Highly Compensated Employees for each Plan Year and the ADP for
Eligible Participants who are Non-highly Compensated Employees for the Plan
Year must satisfy one of the following tests:

 

(i)      The ADP for a Plan Year for
Eligible Participants who are Highly Compensated Employees for the Plan Year
shall not exceed the ADP for Eligible Participants who are Non-highly
Compensated Employees for the Plan Year multiplied by 1.25; or

 

(ii)     The ADP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.    shall not exceed the ADP for
Eligible Participants who are Non-highly Compensated Employees for the Plan
Year multiplied by 2, and

 

B.    the difference between such
ADP’s is not more than 2.

 

If
the Employer has elected to use the current year testing method, that election
cannot be changed unless (i) the Plan has been using the current year
testing method for the preceding five Plan Years, or if less. the number of
Plan Years the Plan has been in existence: or (ii) if as a  result of a
merger or acquisition described in Code Section 410(b)(6)(C)(i), the
Employer maintains both a plan using the prior year testing method and a plan
using the current year testing method and the change is made within the
transition period described in Code Section 410(b)(6)(C)(ii).

 

38

 

A
Participant is a Highly Compensated Employee for a particular Plan Year if he
meets the definition of a Highly Compensated Employee in effect for that Plan
Year. Similarly, a Participant is a Non-highly Compensated Employee for a
particular Plan Year if he does not meet the definition of a Highly Compensated
Employee in effect for that Plan Year.

 

The
Deferral Percentage for any Eligible Participant who is a Highly Compensated
Employee for the Plan Year and who is eligible to have Elective Deferral
Contributions (and Qualified Non-elective Contributions or Qualified Matching
Contributions, or both, if treated as Elective Deferral Contributions for
purposes of the ADP Test) allocated to his account under two or more
arrangements described in Code Section 401(k) that are maintained by
the Employer or a  Controlled Group member shall be determined as
if such Elective Deferral Contributions (and, if applicable, such Qualified
Non-elective Contributions or Qualified Matching Contributions, or both) were
made under a single arrangement. For Plan Years beginning on or after January 1,
2006, if a Highly Compensated Employee participates in two or more cash or
deferred arrangements of the Employer or of a Controlled Group member that have
different plan years, all Elective Deferral Contributions made during the Plan
Year shall be aggregated. For Plan Years beginning before January 1, 2006,
all such cash or deferred arrangements ending with or within the same calendar
year shall be treated as a single arrangement. The foregoing notwithstanding,
certain plans shall be treated as separate if mandatorily disaggregated under
the regulations of Code Section 401(k).

 

In
the event this Plan satisfies the requirements of Code Section 401(k),
401(a)(4), or 410(b) only if aggregated with one or more other plans, or
if one or more other plans satisfy the requirements of such Code sections only
if aggregated with this Plan, then this section shall be applied by determining
the Deferral Percentage of Employees as if all such plans were a single plan.
If  more than 10
percent of the Employer’s Non-highly Compensated Employees are involved in a
plan coverage change as defined in section 1.401 (k)-2(c)(4) of the
regulations, then any adjustments to the Non-highly Compensated Employee ADP
for the prior year shall be made in accordance with such regulations, unless
the Employer has elected to use the current year testing method. Plans may be
aggregated in order to satisfy Code Section 401 (k) only if they have
the same plan year and use the same testing method for the ADP Test.

 

For
purposes of the ADP Test, Elective Deferral Contributions, Qualified
Non-elective Contributions, and Qualified Matching Contributions must be made
before the end of the 12-month period immediately following the Plan Year to
which the contributions relate.

 

If
the Plan Administrator should determine during the Plan  Year that the
ADP Test is not being met, the Plan Administrator may limit the amount of
future Elective Deferral Contributions of the Highly Compensated Employees.

 

Notwithstanding
any other provisions of this Plan, Excess Contributions, plus any income and
minus any loss allocable thereto, shall be distributed no later than 12 months
after the last day of a Plan Year to Participants to whose Accounts such Excess
Contributions were allocated for such Plan Year, except to the extent such
Excess Contributions are classified as Catch-up Contributions. Excess
Contributions are allocated to the Highly Compensated Employees with the
largest amounts of employer contributions taken into account in calculating the
ADP Test for the year in which the excess arose, beginning with the Highly
Compensated Employee with the largest amount of such employer contributions and
continuing in descending order until all of the Excess Contributions have been
allocated. For Plan Years beginning on or after January 1, 2006,

 

39

 

if a Highly Compensated Employee participates in two or more cash or
deferred arrangements of the Employer or of a Controlled Group member, the
amount distributed shall not exceed the amount of the employer contributions
taken into account in calculating the ADP test and made to this Plan for the
year in which the excess arose. If Catch-up Contributions are allowed for the
Plan Year being tested, to the extent a Highly Compensated Employee has not
reached his Catch-up Contribution limit under the Plan for such year, Excess
Contributions allocated to such Highly Compensated Employee arc Catch-up
Contributions and will not be treated as Excess Contributions. If such excess
amounts (other than Catch-Up Contributions) are distributed more than 2 1/2
months after the last day of the Plan Year in which such excess amounts arose,
a 10  percent excise tax shall be Imposed on the employer maintaining the plan
with respect to such amounts.

 

Excess Contributions shall be treated as Annual Additions, as defined in
the CONTRIBUTION LIMITATION SECTION of this article, even if distributed.

 

The Excess Contributions shall be adjusted for any Income or loss. The
income or loss allocable to such Excess Contributions allocated to each
Participant shall be equal to the income or loss allocable to the Participant’s
Elective Deferral Contributions (and, if applicable, Qualified Non-elective
Contributions or Qualified Matching Contributions, or both) for the Plan Year
in which the excess occurred multiplied by a traction. The numerator of the
fraction is the Excess Contributions. The denominator of the fraction is the
closing balance without regard to any income or loss occurring during such Plan
Year (as of the end of  such Plan Year) of the Participant’s Account
resulting from Elective Deferral Contributions (and Qualified Non-elective
Contributions or Qualified Matching Contributions, or both, if such
contributions are included in the ADP Test).

 

For purposes of determining income or loss on Excess Contributions
beginning with the 2006  Plan Year, any Excess Contributions, in
addition to any adjustment for income or loss for the Plan Year in which the
excess occurred, shall be adjusted for Income or loss for the gap period
between the end of such Plan Year and the date of distribution. Such income or
loss allocable to the gap period shall be equal to 10% of the income or loss
allocable to the Excess Contributions for the Plan Year multiplied by the
number of complete months (counting 16 days or more as a complete month) in the
gap period.

 

Excess Contributions allocated to a Participant shall be distributed
from the Participant’s Account resulting from Elective Deferral Contributions.
If such Excess Contributions exceed the amount of Excess Contributions in the
Participant’s Account resulting from Elective Deferral Contributions, the
balance shall be distributed from the Participant’s Account resulting from
Qualified Matching Contributions (if applicable) and Qualified Non-elective
Contributions, respectively.

 

Any Matching Contributions that were based on the Elective Deferral
Contributions distributed as Excess Contributions, plus any income and minus
any loss allocable thereto, shall be forfeited whether or not such amounts are
distributed as Excess Contributions.

 

(d)   ACP Test. As of the end
of each Plan Year, the Plan must satisfy the ACP Test. The ACP Test shall be
satisfied using the prior year testing method, unless the Employer has elected
to use the current year testing method.

 

40

 

(1)   Prior Year Testing Method.
The ACP for a Plan Year for Eligible Participants who are Highly Compensated
Employees for each Plan Year and the prior year’s ACP for Eligible Participants
who were Non-highly Compensated Employees for the prior Plan Year must satisfy
one of the following tests:

 

(i)    The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the prior year’s ACP for Eligible Participants
who were Non-highly Compensated Employees for the prior Plan Year multiplied by
1.25; or

 

(ii)   The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year:

 

A.    shall not exceed
the prior year’s ACP for Eligible Participants who were Non-highly Compensated
Employees for the prior Plan Year multiplied by 2, and

 

B.    the difference
between such ACPs is not more than 2.

 

If this is not a successor plan, for the first Plan Year the Plan
permits any Participant to make Participant Contributions, provides for
Matching Contributions, or both, for purposes of the foregoing tests, the prior
year’s Non-highly Compensated Employees’ ACP shall be 3 percent, unless the
Employer has elected to use the Plan Year’s ACP for these Eligible
Participants.

 

(2)   Current Year Testing Method. The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
each Plan Year and the ACP for Eligible Participants who are Non-highly
Compensated Employees for the Plan Year must satisfy one of the following tests:

 

(i)    The ACP for a
Plan Year for Eligible Participants who are Highly Compensated Employees for
the Plan Year shall not exceed the ACP for Eligible Participants who are
Non-highly Compensated Employees for the Plan Year multiplied by 1.25; or

 

(ii)   The ACP for a
Plan Year for Eligible Participants who are  Highly
Compensated Employees for the Plan Year:

 

A.    shall not exceed
the ACP for Eligible Participants who are Non-highly Compensated Employees for
the Plan Year multiplied by 2, and

 

B.    the difference
between such ACPs IS not more than 2.

 

If the Employer has elected to use the current year testing method, that
election cannot be changed unless (i) the Plan has been using the current
year testing method for the preceding five Plan Years, or if less, the number
of Plan Years the Plan has been in existence: or (ii) if as a result of a
merger or acquisition described in Code Section 410(b)(6)(C)(i). the
Employer maintains both a plan using the prior year testing method and a plan
using the current year testing method and the change IS made within the
transition period described in Code Section 410(b)(6)(C)(ii).

 

41

 

A Participant is a Highly Compensated Employee for a particular Plan
Year if he meets the definition of a Highly Compensated Employee in effect for
that Plan Year. Similarly, a Participant is a Non-highly Compensated Employee
for a particular Plan Year if he does not meet the definition of a Highly
Compensated Employee in effect for that Plan Year.

 

The Contribution Percentage for any Eligible Participant who is a Highly
Compensated Employee for the Plan Year and who is eligible to have Contribution
Percentage Amounts allocated to his account under two or more plans described
in Code Section 401(a) or arrangements described in Code Section 401
(k) that are maintained by the Employer or a Controlled Group member shall
be determined as if the total of such Contribution Percentage Amounts was made
under each plan and arrangement. For Plan Years beginning on or after January 1,
2006, if a Highly Compensated Employee participates in two or  more such plans or arrangements that have
different plan years, all Contribution Percentage Amounts made during the Plan
Year shall be aggregated. For Plan Years beginning before January 1, 2006,
all such plans and arrangements ending with or within the same calendar year
shall be treated as a single plan or arrangement. The foregoing
notwithstanding, certain plans shall be treated as separate if mandatorily
disaggregated under the regulations of Code Section 401(m).

 

In the event this Plan satisfies the requirements of Code Section 401(m),
401(a)(4), or 410(b) only if aggregated with one or more other plans, or
if one or more other plans satisfy the requirements of such Code sections only
if aggregated With this Plan, then this section shall be applied by determining
the Contribution Percentage of Employees as if all such plans were a single
plan. If more than 10 percent of the Employer’s Non-highly Compensated
Employees are involved in a plan coverage change as defined in section
1.401(m)-2(c)(4) of the regulations, then any adjustments to the
Non-highly Compensated Employee ACP for the prior year shall be made in
accordance with such regulations, unless the Employer has elected to use the
current year testing method. Plans may be aggregated in order to satisfy Code Section 401(m) only
if they have the same plan year and use the same testing method for the ACP
Test.

 

For purposes of the ACP Test. Participant Contributions are considered
to have been made in the Plan Year in which contributed to the Plan, Matching
Contributions and Qualified Non-elective Contributions will be considered to
have been made for a Plan Year if made no later than the end of the 12-month
period beginning on the day after the close of the Plan Year.

 

Notwithstanding any other provisions of this Plan, Excess Aggregate
Contributions, plus any income and minus any loss allocable thereto, shall be
forfeited, if not vested, or distributed, if vested, no later than 12 months
after the last day of a Plan Year to Participants to whose Accounts such Excess
Aggregate Contributions were allocated for such Plan Year. Excess Aggregate
Contributions are allocated to the Highly Compensated
Employees with the largest Contribution Percentage Amounts taken into account
in calculating the ACP Test for the year in which the excess arose, beginning
with the Highly Compensated Employee with the largest amount of such
Contribution Percentage Amounts and continuing in descending order until all of
the Excess Aggregate Contributions have been allocated. For Plan Years
beginning on or after January 1, 2006, if a Highly Compensated Employee
participates in two or more plans or arrangements of the Employer or of a
Controlled Group member that include Contribution Percentage Amounts, the
amount distributed shall not exceed the Contribution Percentage Amounts taken
into account in calculating the ACP Test and made to this Plan for the year in
which the excess arose. If such Excess Aggregate Contributions are distributed
more than 2 1/2

 

42

 

months after the last day of the Plan Year in which such excess amounts
arose, a 10 percent excise tax shall be imposed on the employer maintaining the
plan with respect to such amounts.

 

Excess Aggregate Contributions shall be treated as Annual Additions, as
defined in the CONTRIBUTION LIMITATION SECTION of this article, even if
distributed.

 

The Excess Aggregate Contributions shall be adjusted for any income or
loss. The income or loss allocable to such Excess Aggregate Contributions
allocated to each Participant shall be equal to the income or loss allocable to
the Participant’s Contribution Percentage Amounts for the Plan Year in which
the excess occurred multiplied by a fraction. The numerator of the fraction is
the Excess Aggregate Contributions. The denominator of the fraction is the
closing balance without regard to any income or loss occurring during such Plan
Year (as of the end of such Plan Year) of the Participant’s Account resulting
from Contribution Percentage Amounts.

 

For purposes of determining income or loss on Excess Aggregate
Contributions beginning with the 2006  Plan Year, any Excess
Aggregate Contributions, in addition to any adjustment for income or loss for
the Plan Year in which the excess occurred, shall be adjusted for income or
loss for the gap period between the end of such Plan Year and the date of
distribution. Such Income or loss allocable to the gap period shall be equal to
10% of the income or loss allocable to the Excess Aggregate Contributions for
the Plan Year multiplied by the number of complete months (counting 16 days or
more as a complete month) in the gap period.

 

Excess Aggregate Contributions allocated to a Participant shall be
distributed from the Participant’s Account resulting from Participant
Contributions that are not required as a condition of employment or
participation or for obtaining additional benefits from Employer Contributions.
If such Excess Aggregate Contributions exceed the balance in the Participant’s
Account resulting from such Participant Contributions, the balance shall be
forfeited, if not vested, or distributed, if vested, on a pro rata basis from
the Participant’s Account resulting from Contribution Percentage Amounts.

 

(e)   Employer
Elections. The Employer has not made an election to use the
current year testing method.

 

43

 

ARTICLE IV

 

INVESTMENT OF CONTRIBUTIONS

 

SECTION 4.01—INVESTMENT AND TIMING OF CONTRIBUTIONS.

 

The handling of Contributions and Plan assets is governed by the
provisions of the Trust Agreement and any other relevant document, such as an
Annuity Contract (for the purposes of this paragraph alone, the Trust Agreement
and such other documents will each be referred to as a “document” or
collectively as the “documents”), duly entered into by or with regard to the
Plan that govern such matters. To the extent permitted by the documents, the
parties named below shall direct the Contributions for investment in any of the
investment options or investment vehicles available to the Plan under or
through the documents, and may request the transfer of amounts resulting from
those Contributions between such investment options and investment vehicles. A
Participant may not direct the investment of all or any portion of his Account
in collectibles. Collectibles mean any work of art, rug or antique, metal or
gem, stamp or coin, alcoholic beverage, or other tangible personal property
specified by the Secretary of the Treasury. However, for tax years beginning
after December 31, 1997, certain coins and bullion as provided in Code Section 408(m)(3) shall
not be considered collectibles. To the extent that a Participant who has the
ability to provide investment direction fails to give timely investment
direction, the amount for which no investment direction is in place shall be
invested in such investment options and investment vehicles as provided in the
service and expense agreement or such other documents duly entered into by or
with regard to the Plan that govern such matters. If the Primary Employer has
investment direction, the Contributions shall be invested ratably in the
investment options and investment vehicles available to the Plan under or through
the documents. The Primary Employer shall have investment direction for amounts
that have not been allocated to Participants. To the extent an investment is no
longer available, the Primary Employer may require that amounts currently held
in such investment be reinvested in other investments.

 

At least annually, the Named Fiduciary shall review all pertinent
Employee information and Plan data in order to establish the funding policy of
the Plan and to determine appropriate methods of carrying out the Plan’s
Objectives. The Named Fiduciary shall inform the Trustee and any Investment
Manager of the Plan’s short-term and long-term financial needs so the
investment policy can be coordinated with the Plan’s financial requirements.

 

(a)     Employer
Contributions other than Elective Deferral Contributions: The Participant shall
direct the investment of such Employer Contributions and transfer of amounts
resulting from those Contributions.

 

(b)     Elective
Deferral Contributions: The Participant shall direct the investment of Elective
Deferral Contributions and transfer of amounts resulting from those
Contributions.

 

(c)     Rollover
Contributions: The Participant shall direct the investment of Rollover
Contributions and transfer of amounts resulting from those Contributions.

 

However, the Named Fiduciary may delegate to the Investment Manager
investment direction for Contributions and amounts that are not subject to
Participant direction.

 

	
  RESTIITEMENT JANUARY 1,
  2007

  	
  ARTICLE IV (8-3450)

  

 

44

 

All Contributions are forwarded by the Employer to the Trustee to be
deposited in the Trust Fund or to the Insurer to be deposited under the Annuity
Contract, as applicable. Contributions that are accumulated through payroll
deduction shall be paid to the Trustee or Insurer, as applicable, by the
earlier of (i) the date the Contributions can reasonably be segregated
from the Employer’s assets, or (ii) the 15th business day of the month
following the month in which the Contributions would otherwise have been paid
in cash to the Participant.

 

45

 

ARTICLE V

 

BENEFITS

 

SECTION 5.01—RETIREMENT
BENEFITS.

 

On a Participant’s Retirement Date, his Vested Account shall be
distributed to him according to the distribution of benefits provisions of Article VI
and the provisions of the SMALL AMOUNTS SECTION of Article X.

 

SECTION 5.02—DEATH
BENEFITS.

 

If a Participant dies before his Annuity Starting Date, his Vested
Account shall be distributed according to the distribution of benefits
provisions of Article VI and the provisions of the SMALL AMOUNTS SECTION of
Article X.

 

SECTION 5.03—VESTED
BENEFITS.

 

If an Inactive Participant’s Vested Account is not payable under the
SMALL AMOUNTS SECTION of Article X, he may elect, but IS not required, to
receive a distribution of any part of his Vested Account after he has a
Severance from Employment. The Participant’s election shall be subject to his
spouse’s consent as provided in the ELECTION PROCEDURES SECTION of Article VI.
A distribution under this paragraph shall be a retirement benefit and shall be
distributed to the Participant according to the distribution of benefits
provisions of Article VI.

 

A Participant may not elect to receive a distribution under the provisions
of this section after he again becomes an Employee until he subsequently has a
Severance from Employment and meets the requirements of this section.

 

If an Inactive Participant does not receive an earlier distribution,
upon his Retirement Date or death, his Vested Account shall be distributed
according to the provisions of the RETIREMENT BENEFITS SECTION or the
DEATH BENEFITS SECTION of this article.

 

The Non-vested Account of an Inactive Participant who has had a
Severance from Employment shall remain a part of his Account until it becomes
Forfeiture. However, if he again becomes an Employee so that his Vesting
Percentage can increase, the Non-vested Account may become a part of his Vested
Account.

 

SECTION 5.04—WHEN
BENEFITS START.

 

(a)   Unless otherwise elected,
benefits shall begin before the 60th day following the close of the Plan Year
in which the latest date below occurs:

 

(1)   The date the Participant
attains age 65 (or Normal Retirement Age if earlier).

 

(2)   The 10th anniversary of the
Participant’s Entry Date.

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE V (8-3450)

  

 

46

 

(3)   The date the Participant
terminates service with the Employer.

 

Notwithstanding the foregoing, the failure of a Participant and spouse
to consent to a distribution while a benefit is immediately distributable,
within the meaning of the ELECTION PROCEDURES SECTION of Article VI,
shall be deemed to be an election to defer the start of benefits sufficient to
satisfy this section.

 

The Participant may elect to have benefits begin after the latest date
for beginning benefits described above, subject to the following provisions of
this section. The Participant shall make the election in writing. Such election
must be made before his Normal Retirement Date or the date he has a Severance
from Employment, if later. The Participant shall not elect a date for beginning
benefits or a form of distribution that would result in a benefit payable when
he dies which would be more than incidental within the meaning of governmental
regulations.

 

Benefits shall begin on an earlier date if otherwise provided in the
Plan. For example, the Participant’s Retirement Date or Acquired Beginning
Date, as defined in the DEFINITIONS SECTION of Article VII.

 

(b)   The Participant’s Vested
Account that results from Elective Deferral Contributions may not be
distributed earlier than Severance from Employment (separation from service,
for Plan Years beginning before January 1, 2002), death, or disability.
Such amount may also be distributed upon:

 

(1)   Termination of the Plan, as
permitted in Article VIII.

 

(2)   The attainment of age 59 1/2
as permitted in the WITHDRAWAL BENEFITS SECTION of this article or in the
definition of Normal Retirement Date in the DEFINITIONS SECTION of Article I.

 

(3)   The hardship of the
Participant as permitted in the WITHDRAWAL BENEFITS SECTION of this
article.

 

All distributions that may be made pursuant to one or more of the
foregoing distributable events will be a retirement benefit and shall be
distributed to the Participant according to the distribution of benefits
provisions of Article VI. In addition, distributions that are triggered by
the termination of the Plan must be made in a lump sum. A lump sum shall
include a distribution of an annuity contract.

 

SECTION 5.05—WITHDRAWAL BENEFITS.

 

A.  Participant may withdraw any part of his Vested Account resulting from
Rollover Contributions. A Participant may make only two such withdrawals in any
12-month period.

 

47

 

A Participant who has attained age 59 1/2 may withdraw any port of his
Vested Account that results from the following Contributions:

 

Elective
Deferral Contributions 

Matching
Contributions 

Discretionary
Contributions

 

A Participant may make such a
withdrawal at any time.

 

A Participant may withdraw any part of his Vested Account that results
from the following Contributions:

 

Elective
Deferral Contributions 

Matching
Contributions 

Discretionary
Contributions

 

In
the event of hardship due to an immediate and heavy financial need. Withdrawals
from the Participant’s Account resulting from Elective Deferral Contributions
shall be limited to the amount of the Participant’s Elective Deferral
Contributions.

 

Immediate and heavy financial need shall be limited to: (i) expenses
Incurred or necessary for 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
purchase (excluding mortgage payments) of a principal residence for the
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. his 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, or foreclosure on
the mortgage of. the Participant’s principal residence; (v) payments for
funeral or burial expenses for the Participant’s deceased parent, spouse,
child, or dependent (as defined in Code Section 152 without regard to Code
Section 152(d))1 )(B)); (vi) expenses to repair
damage to the Participant’s principal residence that would qualify for a
casualty loss deduction under Code Section 165 (determined without regard
to whether the loss exceeds 10% of adjusted gross income: or (vii) any
other distribution which is deemed by the Commissioner of Internal Revenue to
be made on account of immediate and heavy financial need as provided in
Treasury regulations.

 

No Withdrawal shall be allowed which is not necessary to satisfy such
immediate and heavy financial need. Such withdrawal shall be deemed necessary
only If all of the following requirements are met: (i) the distribution is
not in excess of the amount of the immediate and heavy financial need
(including amounts necessary to pay any Federal, State, or local income taxes
or penalties reasonably anticipated to result from the distribution); (ii) the
Participant has obtained all distributions, other than hardship distributions,
and all nontaxable loans currently available under all plans maintained by the
Employer; and (iii) the Plan, and all other plans maintained by the
Employer, provide that the Participant’s elective contributions and participant
contributions will be suspended for at  least six months after
receipt of the hardship distribution. The Plan will suspend elective
contributions and participant contributions for six months as provided in the
preceding sentence. A Participant shall not cease to be an Eligible
Participant, as defined in the EXCESS AMOUNTS SECTION of Article III,
merely because his elective contributions or participant contributions are
suspended.

 

A request for withdrawal shall be made in such manner and in accordance
with such rules as the Employer will prescribe for this purpose (including
by means of voice response or other electronic means under

 

48

 

circumstances
the Employer permits). Withdrawals shall be a retirement benefit and shall be
distributed to the Participant according to the distribution of benefits
provisions of Article VI. A forfeiture shall not occur solely as a result
of a withdrawal.

 

SECTION 5.06—LOANS
TO PARTICIPANTS,

 

Loans shall be made available to all Participants on a reasonably
equivalent basis, for purposes of this section, and unless otherwise specified,
Participant means any Participant or Beneficiary who is a party-in interest as
defined in ERISA. Loans shall not be made to Highly Compensated Employees in an
amount greater than the amount made available to other Participants.

 

For loans made before January 1, 2002, no loans will be made to any
shareholder-employee or Owner-employee. For purposes of this requirement, a
shareholder-employee means an employee or officer of an electing small business
(Subchapter SI corporation who owns (or is considered as owning within the
meaning of Code Section 318(a) (1)), on any day during the taxable
year of such corporation, more than 5 percent of the outstanding stock of the
corporation.

 

A loan to a Participant shall be a Participant-directed investment of
his Account. The loan is a Trust Fund investment but no Account other than the
borrowing Participant’s Account shall share in the interest paid on the loan or
bear any expense or loss incurred because of the loan.

 

The number of outstanding loans shall be limited to one. No more than
one loan shall be approved for any Participant in any 12-month period. The
minimum amount of any loan shall be $1,000.

 

Loans
must be adequately secured and bear a reasonable rate of interest.

 

The amount of the loan shall not exceed the maximum amount that may be
treated as a loan under Code Section 72(p) (rather than a distribution} to
the Participant and shall be equal to the lesser of (a) or (b) below:

 

(a)        $50,000, reduced
by the highest outstanding loan balance of loans during the one-year period
ending on the day before the new loan is made.

 

(b)       The greater of (1) or
(2), reduced by (3) below:

 

(1)       One-half of the Participant’s
Vested Account.

 

(2)        $10,000.

 

(3)       Any outstanding loan balance
on the date the new loan is made.

 

For
purposes of this maximum, a Participant’s Vested Account does not include any
accumulated deductible employee contributions, as defined in Code Section 72(o)(5)(B),
and all qualified employer plans, as defined in Code Section 72(p)(4), of
the Employer and any Controlled Group member shall be treated as one plan.

 

The foregoing notwithstanding, the amount of such loan shall not exceed
50 percent of the amount of the Participants Vested Account. For purposes of
this maximum, a Participant’s Vested Account does not include any accumulated
deductible employee contributions, as defined in Code Section 72(o)(5)(B).
No collateral other than a portion of the Participant’s Vested Account (as
limited above) shall be accepted.

 

49

 

The Participant’s outstanding loan balance shall include any deemed
distribution, along with accrued interest, that has not been repaid (offset).

 

A
Participant must obtain the consent of his spouse, if any, to the use of the
Vested Account as security for the loan. Spousal consent shall be obtained no
earlier than the beginning of the 90·day period that ends on the date on which
the loan to be so secured is made. The consent must be in writing, must
acknowledge the effect of the loan, and must be witnessed by a plan
representative or a notary public. Such consent shall thereafter be binding
with respect to the consenting spouse or any subsequent spouse with respect to
that loan. A new consent shall be required if the Vested Account is used for
collateral upon renegotiation, extension, renewal, or other revision of the
loan. No consent shall be required if subparagraph (d) of the ELECTION
PROCEDURES SECTION of Article VI applies.

 

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

 

Each
loan shall bear a reasonable fixed rate of interest to be determined by the
Loan Administrator. In determining the interest rate, the Loan Administrator
shall take into consideration fixed interest rates currently being charged by
commercial lenders for loans of comparable risk on similar terms and for
similar durations, so that the interest will provide for a return commensurate
with rates currently charged by commercial lenders for loans made under similar
circumstances. The Loan Administrator shall not discriminate among Participants
in the matter of interest rates; but loans granted at different times may bear
different interest rates in accordance with the current appropriate standards.

 

The loan shall by its terms require re that repayment (principal and
interest be amortized in level payments, not less frequently than quarterly,
over a period not extending beyond five years from the date of the loan.

 

The
Participant shall make an application for a loan in such manner and In
accordance With such rules as the Employer shall prescribe for this purpose
(Including by means at voice response or other electronic means under
circumstances the Employer permits). The application must specify the amount
and duration requested.

 

Information
contained in the application for the loan concerning the income, liabilities,
and assets of the Participant will be evaluated to determine whether there is a
reasonable expectation that the Participant will be able to satisfy payments on
the loan as due. Additionally, the Loan Administrator will pursue any
appropriate further investigations concerning the creditworthiness and credit
history of the Participant to determine whether a loan should be approved.

 

Each loan shall be fully documented in the form of a promissory note
signed by the Participant for the face amount of the loan, together with
Interest determined as specified above.

 

There
will be an assignment of collateral to the Plan executed at the time the loan
is made.

 

50

 

In those cases where repayment through payroll deduction is available,
installments are so payable, and a payroll deduction agreement shall be
executed by the Participant at the time the loan is made. If the Participant
has previously been treated as having received a deemed distribution and the subsequent
loan is being made before the deemed distribution, along with accrued interest
has been repaid (or offset) a payroll deduction agreement shall be required for
loans made on or after January 1, 2004. 11 a payroll deduction agreement
is required because of a previous deemed distribution and the Participant later
revokes such agreement, the outstanding loan balance at the time of the
revocation shall be treated as a deemed distribution. Loan repayments that are
accumulated through payroll deduction shall be paid to the Trustee by the
earlier of (i) the date the loan repayments can reasonably be segregated
from the Employer’s assets, or (ii) the 11th business day of the month
following the month in which such amounts would otherwise have been paid in cash
to the Participant.

 

Where payroll deduction is not available, payments in cash are to be
timely made. Any payment that is not by payroll deduction shall be made payable
to the Employer or the Trustee, as specified in the promissory note, and
delivered to the Loan Administrator, including prepayments, service fees and
penalties, if any, and other amounts due under the note. The Loan Administrator
shall deposit such amounts into the Plan as soon as administratively
practicable after they are received, but in no event later than the 15th
business day of the month after they are received.

 

The promissory note may provide for reasonable late payment penalties
and service fees. Any penalties or service fees shall be applied to all
Participants in a nondiscriminatory manner. If the promissory note so provides.
Such amounts may be assessed and collected from the Account of the Participant
as part of the loan balance.

 

Each loan may be paid prior to maturity, in part or in full, without
penalty or service fee, except as may be set out in the promissory note.

 

The Plan shall suspend loan payments for a period not exceeding one year
during which an approved unpaid leave of absence occurs other than a military
leave of absence. The Loan Administrator shall provide the Participant a
written explanation of the effect of the suspension of payments upon his loan.

 

If a Participant separates from service (or takes a leave of absence)
from the Employer because of service in the military and does not receive a
distribution of his Vested Account, the Plan shall suspend loan payments until
the Participant’s completion of military service or until the Participant’s
fifth anniversary of commencement of military service, if earlier as permitted
under Code Section 414(u). The Loan Administrator shall provide the
Participant a written explanation of the effect of his military service upon
his loan.

 

If any payment of principal and interest, or any portion thereof,
remains unpaid for more than 90 days after due, the loan shall be in default.
For purposes of Code Section 72(pl. the Participant shall then be treated
as having received a deemed distribution regardless of whether or not a
distributable event has occurred.

 

Upon default, the Plan has the right to pursue any remedy available by
law to satisfy the amount due, along with accrued interest, including the right
to enforce its claim against the security pledged and execute upon the
collateral as allowed by law. The entire principals balance whether or not
otherwise then due, along with accrued interest, shall become immediately due
and payable without demand or notice, and subject to collection or satisfaction
by any lawful means, including specifically, but not limited to, the right to
enforce the claim against the security pledged and to execute upon the
collateral as allowed by law.

 

51

 

In the event of default, foreclosure on the note and attachment of
security or use of amounts pledged to satisfy the amount then due shall not
occur until a distributable event occurs in accordance with the Plan, and shall
not occur to an extent greater than the amount then available upon any
distributable event which has occurred under the Plan.

 

All reasonable costs and expenses, including but not limited to
attorney’s fees, incurred by the Plan in connection with any default or in any
proceeding to enforce any provision of a promissory note or instrument by which
a promissory note for a Participant loan is secured, shall be assessed and
collected from the Account of the Participant as part of the loan balance.

 

If payroll deduction is being utilized, in the event that a
Participant’s available payroll deduction amounts in any given month are
insufficient to satisfy the total amount due, there will be an increase in the
amount taken subsequently, sufficient to make up the amount that is then due.
If any amount remains past due more than 90 days, the entire principal amount,
whether or not otherwise then due, along with interest then accrued, shall become
due and payable, as above.

 

If no distributable event has occurred under the Plan at the time that
the Participant’s Vested Account would otherwise be used under this provision
to pay any amount due under the outstanding loan, this will not occur until the
time, or in excess of the extent to which, a distributable event occurs under
the Plan. An outstanding loan will become due and payable in full 60 days after
a Participant has a Severance from Employment and ceases to be a
party-In-interest as defined In ERISA or after complete termination of the
Plan.

 

SECTION 5.07—DISTRIBUTIONS
UNDER QUALIFIED DOMESTIC RELATIONS ORDERS.

 

The Plan specifically permits distributions to an Alternate Payee under
a qualified domestic relations order as defined in Code Section 414(p), at
any time, irrespective of whether the Participant has attained his earliest
retirement age, as defined in Code Section 414(p), under the Plan. A
distribution to an Alternate Payee before the Participant has attained his
earliest retirement age is available only if the order specifics that
distribution shall be made prior to the earliest retirement age or allows the
Alternate Payee to elect a distribution prior to the earliest retirement age.

 

Nothing in this section shall permit a Participant to receive a
distribution at a time otherwise 110t permitted under the Plan nor shall it
permit the Alternate Payee to receive a form of payment not permitted under the
Plan.

 

The benefit payable to an Alternate Payee shall be subject to the
provisions of the SMALL AMOUNTS SECTION of Article X if the value of
the benefit does not exceed $5,000.

 

The Plan Administrator shall establish reasonable procedures to
determine the qualified status of a domestic relations order. Upon receiving a
domestic relations order, the Plan Administrator shall promptly notify the
Participant and each Alternate Payee named in the order, in writing, of the
receipt of the order and the Plan’s procedures for determining the qualified
status of the order. Within a reasonable period of time after receiving the
domestic relations order, the Plan Administrator shall determine the qualified
status of the order and shall notify the Participant and each Alternate Payee,
in writing of its determination. The Plan Administrator shall provide notice
under this paragraph by mailing to the individual’s address specified in the
domes tic relations order, or in a manner
consistent with Department of Labor regulations. The Plan Administrator may
treat as qualified any domestic relations order entered before January 1,
1985, irrespective of whether it satisfies all the requirements described in
Code Section 414(p).

 

52

 

“ any portion of the Participant’s Vested Account is payable during the
period the Plan Administrator is making its determination of the qualified
status of the domestic relations order, a separate accounting shall be made of
the amount payable. If the Plan Administrator determines the order is a
qualified domestic relation-is order within 18 months of the date amounts are
first payable following receipt of the order, the payable amounts shall be
distributed in accordance with the order. It the Plan Administrator does not
make its determination of the qualified status of the order within the 18-month
determination period, the payable amounts shall be distributed in the manner
the Plan would distribute if the order did not exist and the order shall apply
prospectively if the Plan Administrator later determines the order is a
qualified domestic relations order.

 

The Plan shall make payments or distributions required under this
section by separate benefit checks or other separate distribution to the
Alternate Payees).

 

53

 

ARTICLE VI

 

DISTRIBUTION OF BENEFITS

 

SECTION 6.01—AUTOMATIC FORMS OF DISTRIBUTION.

 

Unless
an optional form of benefit is selected pursuant to a qualified election within
the election period (see the  ELECTION
PROCEDURES SECTION of this article), the automatic form of benefit payable
to or on behalf of a Participant is determined as follows:

 

(a}       Retirement Benefits. The automatic
form of retirement benefit for a Participant who does not die before his
Annuity Starting Date shall be:

 

(1)       The Qualified
Joint and Survivor Annuity for a Participant who has a spouse.

 

(2)       The Normal Form for
a Participant who does not have a spouse.

 

(b)       Death Benefits. The automatic
form of death benefit for a Participant who dies before his Annuity Starting
Date shall be:

 

(1)       A Qualified
Pre-retirement Survivor Annuity for a Participant who has a spouse to whom he
has been continuously married throughout the one-year period ending on the date
of his death. The spouse may elect to start receiving the death benefit on any
first day of the month on or after the Participant dies and by the date the
Participant would have been age 70 1/2. If the spouse dies before benefits
start. The Participant’s Vested Account, determined as of the date of the
spouse’s death, shall be paid to the spouse’s Beneficiary.

 

(2)       A single sum
payment to the Participant’s Beneficiary for a Participant who docs not have a
spouse who IS entitled to a Qualified Pre-retirement Survivor Annuity.

 

Before
a death benefit will be paid on account of the death of a Participant who does
not have a spouse who is entitled to a Qualified Pre-retirement Survivor
Annuity, it must be established to the satisfaction of a plan representative
that the Participant docs not have such a spouse.

 

SECTION 6.02—OPTIONAL FORMS OF DISTRIBUTION.

 

(a)        Retirement Benefits. The
optional forms of retirement benefit shall be the following: (i) a
straight life annuity; (i) single life annuities with certain periods of
5, 10, or 15 years; (ii) a single life annuity with Installment refund; (iv) survivorship
life annuities with Installment refund and survivorship percentages of 50%, 66
2/3%, or 100%; (v) fixed period annuities for any period of whole months
that is not less than 60; (vi) a fixed period installment option; and (vii) a
fixed payment installment option. A single sum payment is also available.

 

The
fixed period Installment option is an optional form of benefit under which the
Participant elects to receive substantially equal annual payments over a fixed
period of whole years. The annual payment may be paid in annual, semi-annual,
quarterly, or monthly installments as elected by the Participant. The
Participant may elect to receive additional payments.

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE VI (8-3450)

  

 

54

 

The
fixed payment installment option is an optional form of benefit under which the
Participant elects to receive a specified dollar amount each year. The annual
payment may be paid in annual, semi-annual, quarterly, or monthly installments
as elected by the Participant. The Participant may elect to receive additional
payments.

 

Election
of an optional form is subject to the qualified election provisions of the
ELECTION PROCEDURES SECTION of this article and the distribution
requirements of Article VII.

 

Any
annuity contract distributed shall be nontransferable. The terms of any annuity
contract purchased and distributed by the Plan to a Participant or spouse shall
comply with the requirements of this Plan.

 

(b)       Death Benefits. The optional
forms of death benefit are a
single sum payment and any annuity that IS an optional form
of retirement benefit.

 

Election
of an optional form is subject to the qualified election provisions of the
ELECTION PROCEDURES SECTION of this article and the distribution
requirements of Article VII.

 

SECTION 6.03—ELECTION
PROCEDURES.

 

The
Participant, Beneficiary, or spouse shall make any election under this section
in writing. The Plan Administrator may require such individual to complete and
sign any necessary documents as to the provisions to be made. Any election
permitted under (a) and (b) below shall be subject to the qualified
election provisions of (c) below.

 

(a)        Retirement
Benefits. A Participant may elect his Beneficiary or
Contingent Annuitant and may elect to have retirement benefits distributed
under any of the optional forms of retirement benefit available in the OPTIONAL
FORMS OF DISTRIBUTION SECTION of this article.

 

(b)       Death Benefits. A Participant
may elect his Beneficiary and may elect to have death benefits distributed under
any of the optional forms of death benefit available In the OPTIONAL FORMS OF
DISTRIBUTION SECTION of this article.

 

If
the Participant has nor elected an optional form of distribution for the death
benefit payable to his Beneficiary, the Beneficiary may, for his own benefit,
elect the form of distribution, in like manner as a Participant.

 

The
Participant may waive the Qualified Pre-retirement Survivor Annuity by naming
someone other than his spouse as Beneficiary.

 

In
lieu of the Qualified Pre-retirement Survivor Annuity described in the
AUTOMATIC FORMS OF DISTRIBUTION SECTION of this article. The spouse may,
for his own benefit, waive the Qualified Pre-retirement Survivor Annuity by
electing to have the benefit distributed under any of the optional forms of
death benefit available in the OPTIONAL FORMS OF DISTRIBUTION SECTION of
this article.

 

(c)        Qualified
Election. The Participant Beneficiary or spouse may make an
election at any time during the election period. The Participant, Beneficiary,
or spouse may revoke the election made (or

 

55

 

make
a new election) at any time and any number of times during the election period.
An election is effective only if it meets the consent requirements below.

 

(1)       Election Period
for Retirement Benefits. The election period as to retirement
benefits is the 90-day period ending on the Annuity Starting Date. An election
to waive the Qualified Joint and Survivor Annuity may not be made before the
date the Participant is provided with the notice of the ability to waive the
Qualified Joint and Survivor Annuity.

 

(2)       Election Period
for Death Benefits. A Participant may make an election as to death
benefits at any time before he dies. The spouse’s election period begins on the
date the Participant dies and ends on the date benefits begin. The
Beneficiary’s election period begins on the date the Participant dies and ends
on the date benefits begin.

 

An
election to waive the Qualified Pre-retirement Survivor Annuity may not be made
by the Participant before the date he is provided with the notice of the
ability to waive the Qualified Pre-retirement Survivor Annuity. A Participant’s
election to waive the Qualified Pre-retirement Survivor Annuity that is made
before the first day of the Plan Year in which he reaches age 35 shall become
invalid on such date. An election made by a Participant after he has a
Severance from Employment will not become invalid on the first day of the Plan
Year in which he reaches age 35 with respect to death benefits from that part
of his Account resulting from Contributions made before he had a Severance from
Employment.

 

(31      Consent to
Election. If the Participant’s Vested Account exceeds $5,000,
any benefit that is (i) immediately distributable or (ii) payable in
a form other than a Qualified Joint and Survivor Annuity or a Qualified
Pre-retirement Survivor Annuity, requires the consent of the Participant and
the Participant’s spouse (or where either the Participant or the spouse has
died, the survivor). Such consent shall also be required if the Participant had
previously had an Annuity Starting Date with respect to any portion of such
Vested Account.

 

The
consent of the Participant or spouse to a benefit that is immediately
distributable must not be made before the date the Participant or spouse is
provided with the notice of the ability to defer the distribution. Such consent
shall be in writing.

 

The
consent shall not be made more than 90 days before the Annuity Starting Date.
Spousal consent is not required for a benefit that is immediately distributable
in a Qualified Joint and Survivor Annuity. Furthermore, if spousal consent is
not required because the Participant is electing an optional form of retirement
benefit that is not a life annuity pursuant to (d) below, only the Participant
need consent to the distribution of a benefit payable in a form that IS not a life
annuity and which is immediately distributable. Neither the consent of the
Participant nor the Participant’s spouse shall be required to the extent that a
distribution is required to satisfy Code Section 401 (a) (9) or
415.

 

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) docs not maintain another defined
contribution plan (other than an employee stock ownership plan as defined in
Code Section 4975(e)(7)), the Participant’s Account balance will, without
the Participant’s consent, be distributed to the Participant. However, if any
entity within the same Controlled Group maintains another defined

 

56

 

contribution
plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7))
then the Participant’s Account will be transferred, without the Participant’s
consent, to the other plan if the Participant does not consent to an immediate
distribution.

 

A
benefit is immediately distributable if any part of the benefit could be distributed
to the Participant (or surviving spouse) before the Participant attains (or
would have attained if not deceased) the older of Normal Retirement Age or age
62.

 

If
the Qualified Joint and Survivor Annuity are waived, the spouse has the right
to limit consent only to a specific Beneficiary or a specific form of benefit.
The spouse can relinquish one or both such rights. Such consent shall be in
writing. The consent shall not be made more than 90 days before the Annuity
Starting Date. II the Qualified Pre-retirement Survivor Annuity is waived, the
spouse has the right to limit consent only to a specific Beneficiary. Such
consent shall be in writing. The spouse’s consent shall be witnessed by a plan
representative or notary public. The spouse’s consent must acknowledge the
effect of the election, including that the spouse had the right to limit
consent only to a specific Beneficiary or a specific form of benefit, if
applicable, and that the relinquishment of one or both such rights was
voluntary. Unless the consent of the spouse expressly permits designations by
the Participant Without a requirement of further consent by the spouse, the
spouse’s consent must be limited to the form of benefit, if applicable, and the
Beneficiary including any Contingent Annuitant), class of Beneficiaries, or
contingent Beneficiary named in the election.

 

Spousal
consent is not required; however, if the Participant establishes to the
satisfaction of the plan representative that the consent of the spouse cannot
be obtained because there is no spouse or the spouse cannot be located. A
spouse’s consent under this paragraph shall not be valid with respect to any
other spouse. A Participant may revoke a prior election without the consent of
the spouse. Any new election will require a new spousal consent, unless the
consent of the spouse expressly permits such election by the Participant
without further consent by the spouse. A spouse’s consent may be revoked at any
time within the Participant’s election period.

 

(d)       Special Rule for
Profit Sharing Plans. This subparagraph (d) applies if the Plan is
not a direct or Indirect transferee after December 31, 1984, of a defined
benefit plan, money purchase plan, target benefit plan, stock bonus plan, or
profit sharing plan which is subject to the survivor annuity requirements of
Code Sections 401(a)(11) and 417. If the above condition is met, spousal
consent is not required for electing an optional form of retirement benefit
that is not a life annuity. If such condition is not met, such consent
requirements shall be operative.

 

SECTION 6.04—NOTICE
REQUIREMENTS.

 

(a)        Optional Forms of
Retirement Benefit and Right to Defer. The Plan Administrator shall
furnish to the Participant and the Participant’s spouse a written explanation
of the optional forms of retirement benefit in the OPTIONAL FORMS OF
DISTRIBUTION SECTION of this article, including the material features and
relative values of these options, in a manner that would satisfy the notice
requirements of Code Section 417(a)(3) and the right of the
Participant and the Participant’s spouse to defer distribution until the
benefit is no longer immediately distributable.

 

57

 

The
Plan Administrator shall furnish the written explanation by a method reasonably
calculated to reach the attention of the Participant and the Participant’s
spouse no less than 30 days, and no more than 90 days, before the Annuity
Starting Date.

 

The
Participant land spouse, if applicable) may waive the 3D-day election period if
the distribution of the elected form of retirement benefit begins more than 7
days after the Plan Administrator provides the Participant (and spouse, if
applicable) the written explanation provided that: (i) the Participant has
been provided with information that clearly indicates that the Participant has
at least 30 days to consider the decision of whether or not to elect a
distribution and a particular distribution option, (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
7-day period that begins the day after the explanation is provided to the Participant,
and (iii) the Annuity Starting Date is a date after the date that the
written explanation was provided to the Participant.

 

(b)       Qualified Joint
and Survivor Annuity. The Plan Administrator shall furnish to the
Participant a written explanation of the following: the terms and conditions of
the Qualified Joint and Survivor Annuity: the Participant’s right to make, and
the effect of, an election to waive the Qualified Joint and Survivor Annuity;
the rights of the Participant’s spouse; and the right to revoke an election and
the effect of such a revocation.

 

The
Plan Administrator shall furnish the written explanation by a method reasonably
calculated to reach the attention of the Participant no less than 30 days, and
no more than 90 days, before the Annuity Starting Date.

 

The
Participant (and spouse, if applicable) may waive the 30-day election period if
the distribution of the elected form of retirement benefit begins more than 7
days after the Plan Administrator provides the Participant land spouse, if applicable)
the written explanation provided that: (i) the Participant has been
provided With information that clearly indicates that the Participant has at
least 30 days to consider whether 10 waive the Qualified Joint and Survivor
Annuity and elect (with spousal consent, if applicable) a form of distribution
other than a Qualified Joint and 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
7 day period that begins the day after the explanation of the Qualified Joint
and Survivor Annuity is provided to the Participant, and (iii) the Annuity
Starting Date is a date after the date that the written explanation was provided
to the Participant.

 

After
the written explanation is given, a Participant or spouse may make a written
request for additional information. The written explanation must be personally
delivered or mailed (first class mail, postage prepaid) to the Participant or
spouse within 30 days from the date of the written request. The Plan
Administrator does not need to comply with more than one such request by a
Participant or spouse.

 

The
Plan Administrator’s explanation shall be written in non-technical l language
and will explain the terms and conditions of the Qualified Joint and Survivor
Annuity and the financial effect upon the Participant’s benefit (in terms of
dollars per benefit payment) of electing not to have benefits distributed in
accordance with the Qualified Joint and Survivor Annuity.

 

58

 

(c)        Qualified
Pre-retirement Survivor Annuity. The Plan Administrator
shall furnish to the Participant a written explanation of the following: the
terms and conditions of the Qualified Pre-retirement Survivor Annuity; the
Participant’s right to make, and the effect of. An election to waive the
Qualified Pre-retirement Survivor Annuity; the rights of the Participant’s
spouse; and the right to revoke an election and the effect of such a
revocation.

 

The
Plan Administrator shall furnish the written explanation by a method reasonably
calculated to reach the attention of the Participant within the applicable
period. The applicable period for a Participant is whichever of the following
periods ends last:

 

(1)       the period
beginning one year before the date the individual becomes a Participant and
ending one year after such date; or

 

(2)       The period beginning one year
before the date the Participant’s spouse is first entitled to a Qualified
Pre-retirement Survivor Annuity and ending one year after such date.

 

If
such notice is given before the period beginning with the first day of the Plan
Year in which the Participant attains ago 32 and ending with the close of the
Plan Year preceding the Plan Year in which the Participant attains age 35, an
additional notice shall be given within such period. II a Participant has a
Severance from Employment before attaining age 35, an additional notice shall
be given within the period beginning one year before the date he has a
Severance from Employment and ending one year after such date.

 

After
the written explanation is given, a Participant or spouse may make a written
request for additional information. The written explanation must be personally
delivered or mailed (first class mail, postage prepaid) to the Participant or
spouse within 30 days from the date of the written request. The Plan
Administrator docs not need 10 comply with more than one
such request by a Participant or spouse.

 

The
Plan Administrator’s explanation shall be written in non-technical language and
will explain the terms and conditions of the Qualified Pre-retirement Survivor
Annuity and the financial effect upon the spouse’s benefit (in terms of dollars
per benefit payment) of electing not to have benefits distributed in accordance
with the Qualified Pre-retirement Survivor Annuity.

 

59

 

ARTICLE VII

 

REQUIRED MINIMUM DISTRIBUTIONS

 

SECTION 7.01—APPLICATION.

 

The
optional forms of distribution are only those provided in Article VI. An
optional form of distribution shall rot be permitted unless it meets the
requirements of this article. The timing of any distribution must meet the
requirements of this article. Unless otherwise specified, the provisions of
this article apply to calendar years beginning after December 31, 2002.

 

SECTION 7.02—DEFINITIONS.

 

For
purposes of this article, the following terms are defined:

 

Designated
Beneficiary means the Individual who is designated by the Participant (or the
Participant’s surviving spousal as the Beneficiary of the Participant’s
interest under the Plan and who is the designated beneficiary under Code Section 401
(a)(9) and section 1.401(a)(9)-4 of the regulations.

 

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 proceeding the
calendar year that contains the Participant’s Required Beginning Date. For
distributions beginning alter the Participant’s death, the first Distribution
Calendar Year is the calendar year in which distributions are required to begin
under (b)(2) of the REQUIRED MINIMUM DISTRIBUTIONS SECTION of this
article. The required minimum distribution for the Participant’s first
Distribution Calendar Year will be mode 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.

 

5-percent
Owner means a Participant who is treated as a 5 percent Owner for purposes of
this article. A Participant is treated as a 5 percent Owner for purposes of
this article if such Participant is a 5 percent owner as defined in Code Section 416
at any time during the Plan Year ending with or within the calendar year in
which such owner attains age 701/2.

 

Once
distributions have begun to a 5-percent Owner under this article, they must
continue to be distributed, even if the Participant ceases to be a 5·percent
Owner in a subsequent year.

 

Life
Expectancy means life expectancy as computed by use at the Single Life Table in
Q&A-1 in section 1.401 (a)(9)-9 of the regulations.

 

Participant’s
Account Balance means the Account balance as of the last Valuation Date in the
calendar year immediately preceding the Distribution Calendar Year (valuation
calendar year) increased by the amount of any contributions made and allocated
or forfeitures allocated to the Account 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 Account balance for the
valuation calendar year includes

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE VII (8-3450)

  

 

60

 

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.

 

Required
Beginning Date means for a Participant who is a 5-percent Owner, April 1
of the calendar year following the calendar year in which he attains age 70
1/2.

 

Required
Beginning Date means, for any Participant who is not a 5-percent Owner, April 1
of the calendar year following the later of the calendar year in which he
attains age 70 1/2 or the calendar year in which he
retires.

 

The
pre-retirement age 70 1/2 distribution option is only eliminated with respect
to Participants who reach age 70 1/2 in or after a calendar year that begins
after the later of December 31, 1998 or the adoption date of the amendment
which eliminated such option. The pre-retirement age 70 1/2 distribution option
is an optional form of benefit under which benefits payable In a particular
distribution form (Including any modifications that may be elected after benefits
begin) begin at a time during the period that begins on or after January 1
of the calendar year In which the Participant attains age 70 1/2 and ends April 1
of the immediately following calendar year.

 

The
options available for Participants who are not 5-percent Owners and attained
age 70 1/2 in calendar years before the calendar year that begins after the
later of December 31, 1998, or the adoption date of the amendment which
eliminated the pre-retirement age 70 1/2 distribution option shall be the following.
Any such Participant attaining age 70 1/2 In years after 1995 may elect by April 1
of the calendar year following the calendar year in which he attained age 70 1/2
(or by December 31, 1997 in the case of a Participant attaining age 70 1/2
in 1996) to defer distributions until April 1 of the calendar year
following the calendar year in which he retires. Any such Participant attaining
age 70 1/2 in years prior to 1997 may elect to stop distributions that are not
purchased annuities and recommence by April 1 of the calendar year
following the calendar year in which he retires. There shall be a new Annuity
Starting Date upon recommencement.

 

SECTION 7.03—REQUIRED  MINIMUM
DISTRIBUTIONS.

 

(a)        General Rules.

 

(1)       Subject to the
AUTOMATIC FORMS OF DISTRIBUTION SECTION of Article VI, joint and
survivor annuity requirements, the requirements of this article shall apply to
any distribution of a Participant’s interest and will take precedence over any
inconsistent provisions of this Plan.

 

(2)       All
distributions required under this article shall be determined and made in
accordance with the regulations under Code Section 401(a)(9) and the
minimum distribution incidental benefit requirement of Code Section 401(a)(9).

 

(b)       Time and Manner
of Distribution.

 

11)      Required Beginning Date. The
Participant’s entire Interest Will be distributed, or begin to be distributed,
to the Participant no later than the Participant’s Required Beginning Date.

 

61

 

(2)       Death of
Participant Before Distributions Begin. If the Participant dies
before distributions begin, the Participant’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

 

(i)         If the
Participant’s surviving spouse is the Participant’s sale Designated
Beneficiary, 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, except to the extent that
an election is made to receive distributions in accordance with the 5-year
rule. Under the 5 year rule, the Participant’s entire interest will be
distributed to the Designated Beneficiary by December 31 of the calendar
year containing the fifth anniversary of the Participant’s death.

 

(ii)        If the
Participant’s surviving spouse is not the Participant’s sale Designated
Beneficiary, distributions to the Designated Beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, except to the extent that an election is made to receive
distributions in accordance with the 5-year rule Under the 5-year rule,
the Participant’s entire interest will be distributed to the Designated
Beneficiary by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

 

(iii)       If there is no
Designated Beneficiary as of  September 30  the year
following the year  the Participant’s
death, the Participant’s entire interest will be distributed by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(iv)       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 are required to begin, this (b1l21. other than (b)(2)(i), will
apply as if the surviving spouse were the Participant.

 

For
purposes of this (b)(2) and (d) below, unless (b)(2)(iv) above
applies, distributions are considered to begin on the Participant’s Required
Beginning Date. If (b)(2)(iv) above applies, distributions are considered
to begin on the date distributions are required to begin to the surviving spouse
under (b)(2)(i) above. If distributions 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 (b)(2)(i) above), the date distributions are considered to begin is
the date distributions actually commence.

 

(3)       Forms of
Distribution. Unless the Participant’s interest is distributed 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 (e) and (d) below.
If the Participant’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions there under.

 

62

 

Will
be made in accordance with the requirements of Code Section 401(a)(9) and
the regulations there under.

 

(c)        Required Minimum
Distributions During Participant’s Lifetime.

 

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

 

(i)         the quotient obtained by
dividing the Participant’s Account Balance by the distribution period in the
Uniform Lifetime Table set forth in Q&A-2 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

 

(ii)        if the
Participant’s sale 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
Q&A-3 in section 1.401(a)(9)-9 of the regulations, using the Participant’s
and spouses attained ages as of the Participant’s and spouse’s birthdays in the
Distribution Calendar Year.

 

(2)       Lifetime Required
Minimum Distributions Continue Through Year of Participant’s
Death.

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

 

(d)       Required Minimum
Distribution After Participant’s Death.

 

(1)       Death On or
After Date Distributions Begin.

 

(i)         Participant
Survived by Designated Beneficiary. If the Participant dies on
or after the date distributions begin and there is a Designated Beneficiary,
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:

 

A.        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.

 

B.         If the Participant’s
surviving spouse is the Participant’s sale 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

 

63

 

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.

 

C.         If the Participant’s
surviving spouse is not the Participant’s sale 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.

 

(ii)        No Designated
Beneficiary. If the Participant dies on or after the date
distributions begin and there is no Designated Beneficiary 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 alter 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.

 

(2)       Death before
Date Distributions Begin

 

(i)         Participants
Survived by Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a Designated Beneficiary, 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 (d)(1) above,
except to the extent that an election is made to receive distributions in
accordance with the 5-year rule. Under the 5-year rule, the Participant’s
entire interest will be distributed to the Designated Beneficiary by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(ii)        No Designated Beneficiary. If the
Participant dies before the date distributions begin and there is no Designated
Beneficiary as of September 30 of the year following the year of the
Participant’s death, distribution of the Participant’s entire interest will be
completed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

 

(iii)       Death of Surviving
Spouse before Distributions to Surviving Spouse Are Required to Begin. 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 (b)(2)(i) above,
this (d)(2) will apply as If the surviving spouse were the Participant.

 

64

 

SECTION 7.04—TRANSITION RULES.

 

To
the extent the Plan was effective before 2003, required minimum distributions
were made pursuant to (a) and (b) below:

 

(a)        2000 and Before. Required
minimum distributions for calendar years after 1984 and before 2001 were made
in accordance with Code Section 401(a)(9) and the proposed
regulations there under published in the Federal Register on July 27, 1987
(the 1987 Proposed Regulations).

 

(b)       2001 and 2002. Required
minimum distributions for calendar years 2001 and 2002 were made pursuant to
the proposed regulations under Code Section 401(a)(9) published in
the Federal Register on January 17, 2001 (the 2001 Proposed Regulations).
Distributions were made in 2001 under the 1987 Proposed Regulations prior to June 14,
2001, and the special transition rule in Announcement 2001-82, 2001-2 C.
B. 123, applied.

 

65

 

ARTICLE VIII

 

TERMINATION OF THE PLAN

 

The
Employer expects to continue the Plan indefinitely but reserves the right to
terminate the Plan in whole or in
part at any time upon giving written notice to all parties concerned. Complete
discontinuance of Contributions constitutes complete termination of the Plan.

 

The Account of each Participant shall be 100% vested and non-forfeitable
as of the effective date of complete termination of the Plan. The Account of
each Participant who is included in the group of Participants deemed to be
affected by the partial termination of the Plan shall be 100% vested and
non-forfeitable as of the effective date of the partial termination of the
Plan. The Participant’s Vested Account shall continue to participate in the
earnings credited, expenses charged, and any appreciation or depreciation of
the Investment Fund until his Vested Account is distributed,

 

A Participant’s Vested Account that does not result from the
Contributions listed below may be distributed to the Participant after the
effective date of the complete termination of the Plan:

 

Elective
Deferral Contributions

 

A
Participant’s Vested Account resulting from such Contributions may be
distributed upon complete termination of the Plan, but only if neither the
Employer nor any Controlled Group member maintain another defined contribution
plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7) or
409(a), a simplified employee pension plan as defined in Code Section 408(k),
a SIMPLE IRA plan as defined in Code Section 408(p), a plan or contract that satisfies the
requirements of Code Section 403(b), or a plan described in Code Section 457(b) or
(Ill at any time during the period beginning on the date of complete
termination of the Plan and ending 12 months after all assets have been
distributed from the Plan, such distribution is made In a lump sum. A
distribution under this article shall be a retirement benefit and shall be
distributed to the Participant according to the provisions of Article VI.
However, the fixed period and fixed payment Installment options shall not be
available.

 

If a Participant or Beneficiary is receiving payments under the fixed
period or fixed payment installment option, the Vested Account shall be paid to
such person in a single sum.

 

The Participant’s entire Vested Account shall be paid in a single sum to
the Participant as of the effective date of complete termination of the Plan if
(i) the requirements for distribution of Elective Deferral Contributions
In the above paragraph arc met and (ii) consent of the Participant is not
required In the ELECTION PROCE DURES SECTION of Article VI to
distribute a benefit that is immediately distributable. This is a small amounts
payment. The small amounts payment is in full settlement of all benefits
otherwise payable,

 

Upon complete termination of the Plan, no more Employees shall become
Participants and no more Contributions shall be made.

 

The assets of this Plan shall not be paid to the Employer at any time,
except that, after the satisfaction of all liabilities under the Plan, any
assets remaining may be paid to the Employer. The payment may not be made if it would
contravene any provision of law.

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE VIII (8-3450)

  

 

66

 

ARTICLE IX

 

ADMINISTRATION OF THE PLAN

 

SECTION 9.01—ADMINISTRATION.

 

Subject
to the provisions of this article, the Plan Administrator has complete control
of the administration of the Plan. The Plan Administrator has all the powers
necessary for it to properly carry out its administrative duties. Not in
limitation, but in amplification of the foregoing, the Plan Administrator has
complete discretion to construe or interpret the provisions of the Plan,
including ambiguous provisions, if any, and to determine all questions that may
arise under the Plan, including all questions relating to the eligibility of
Employees to participate in the Plan and the amount of benefit to which any
Participant. Beneficiary, spouse, or Contingent Annuitant may become entitled.
The Plan Administrator’s decisions upon all matters within the scope of its
authority shall be final.

 

Unless
otherwise set out in the Plan or Annuity Contract, the Plan Administrator may
delegate record keeping and other duties which are necessary to assist it with
the administration of the Plan to any person or firm which agrees to accept
such duties. The Plan Administrator shall be entitled to rely upon all tables,
valuations, certificates and reports furnished by the consultant or actuary
appointed by the Plan Administrator and upon all opinions given by any counsel
selected or approved by the Plan Administrator.

 

The
Plan Administrator shall receive all claims for benefits by Participants,
former Participants, and Beneficiaries. Spouses and Contingent Annuitants. The
Plan Administrator shall determine all facts necessary to establish the right
of any Claimant to benefits and the amount of those benefits under the
provisions of the Plan. The Plan Administrator may establish rules and
procedures to be followed by Claimants in filing claims for benefits, In
furnishing and verifying proofs necessary to determine age, and in any other
matters required to administer the Plan.

 

SECTION 9.02—EXPENSES.

 

Expenses
of the Plan, to the extent that the Employer does not pay such expenses, may be
paid out of the assets of the Plan provided that such payment is consistent
with ERISA. Such expenses include, but are not limited to expenses for bonding
required by ERISA; expenses for record keeping and other administrative services: fees and expenses of the
Trustee or Annuity Contract; expenses for investment education service; and
direct costs that the Employer incurs with respect to the Plan. Expenses that
relate solely to a specific Participant or Alternate Payee may be assessed
against such Participant or Alternate Payee as provided in the service and
expense agreement or such other documents duly entered into by or with regard
to the Plan that govern such matters.

 

SECTION 9.03—RECORDS.

 

All
acts and determinations of the Plan Administrator shall be duly recorded. All
these records, together with other documents necessary for the administration
of the Plan, shall be preserved in the Plan Administrator’s custody.

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE IX (8-3450)

  

 

67

 

Writing (handwriting, typing, and printing), Photostatting,
photographing, microfilming, magnetic impulse, mechanical or electrical
recording, or other forms of data compilation shall be acceptable means of
keeping records.

 

SECTION 9.04—INFORMATION AVAILABLE.

 

Any Participant in the Plan or any Beneficiary may examine copies of the
Plan description, latest annual report. Any bargaining agreement, this Plan,
the Annuity Contract, or any other instrument under which the Plan was
established or is operated. The Plan Administrator shall maintain all of the
items listed in this section in its office, or in such other place or places as
it may designate in order to comply with governmental regulations. These items
may be examined during reasonable business hours. Upon the written request of a
Participant or Beneficiary receiving benefits under the Plan, the Plan
Administrator shall furnish him with a copy of any of these Items. The Plan
Administrator may make a reasonable charge to the requesting person for the copy.

 

SECTION 9.05—CLAIM PROCEDURES.

 

A Claimant must submit any necessary forms and needed information when
making a claim for benefits under the Plan.

 

If a claim for benefits under the Plan is wholly or partially denied,
the Plan Administrator shall provide adequate written notice to the Claimant
whose claim for benefits under the Plan has been denied. The notice must be
furnished within 90 days of the date that the claim is received by the Plan
without regard to whether all of the information necessary to make a benefit
determination is received. The Claimant shall be notified in writing within
this initial 90-day period if special circumstances require
an extension of the time needed to process the claim. The notice shall indicate
the special circumstances requiring an extension of time and the date by which
the Plan Administrator’s decision is expected to be rendered. In no event shall
such extension exceed a period of 90 days from the end of the initial 90-day
period.

 

The Plan Administrator’s notice to the Claimant shall: (i) specify
the reason or reasons for the denial; (ii) reference the specific Plan
provisions on which the denial is based; (iii) describe any additional
material and information needed for the Claimant to perfect his claim for
benefits; (iv) explain why the material and information is needed; and (v) inform
the Claimant of the Plan’s appeal procedures and the time limits applicable to
such procedures, including a statement of the Claimant’s right to bring a civil
action under ERISA section 502(al following an adverse benefit determination on
appeal.

 

Any appeal made by a Claimant must be made in writing to the Plan
Administrator within 60 days after receipt
of the Plan Administrator’s notice of denial of benefits. If the Claimant appeals
to the Plan Administrator, the Claimant may submit written comments, documents,
records, and other information relating to the claim for benefits. The Claimant
shall be provided, upon request and free of charge, reasonable access to, and
copies of all documents, records, and other information relevant to the
Claimant’s claim for benefits. The Plan Administrator shall review the claim
taking into account all comments, documents, records, and other Information
submitted by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination.

 

The Plan Administrator shall provide adequate written notice to the
Claimant of the Plan’s benefit determination on review. The notice must be furnished
within 60 days of the date that the request for review is received by the Plan
Without regard to whether all of the information necessary to make a benefit
determination on review is received.

 

68

 

The
Claimant shall be notified in writing within this initial 50-day period if
special circumstances require an extension of the time needed to process the
claim. The notice shall indicate the special circumstances requiring an
extension of time and the date by which the Plan Administrator expects to
render the determination on review. In no event shall such extension exceed a
period of 60 days from the end of the initial 50·day period.

 

In the event the benefit determination is being made by a committee or
board of trustees that hold regularly scheduled meetings at least quarterly,
the above paragraph shall not apply. The benefit determination must be made by
the date of the meeting of the committee or board that immediately follows the
Plan’s receipt of a request for review, unless the request for review is filed
within 30 days preceding the date of such meeting. In such case, the benefit
determination must be made by the date of the second meeting following the
Plan’s receipt of the request for review. The date of the receipt of the
request for review shall be determined without regard to whether all of the
information necessary to make a benefit determination on review is received.
The Claimant shall be notified in writing within this initial period if special
circumstances require an extension of the time needed to process the claim. The
notice shall indicate the special circumstances requiring an extension of time
and the date by which the committee or board expects to render the
determination on review. In no event shall such benefit determination be made
later than the third meeting of the committee or board following the Plan’s
receipt of the request for review. The Plan Administrator shall provide
adequate written notice to the Claimant of the Plan’s benefit determination on
review as soon as possible, but not later than five days after the benefit
determination is made.

 

If the claim for benefits is wholly or partially denied on review, the
Plan Administrator’s notice to the Claimant shall: (i) specify the reason
or reasons for the denial; (ii) reference the specific Plan provisions on
which the denial is based; (iii) include a statement that the Claimant is
entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records, and other information relevant to the
Claimant’s claim for benefits; and (iv) include a statement of the
Claimant’s right to bring a civil action under ERISA section 502(a).

 

A Claimant may authorize a representative to act on the Claimant’s
behalf with respect to a benefit claim or appeal of an adverse benefit
determination. Such authorization shall be made by completion of a form
furnished for that purpose. In the absence of any contrary direct on from the
Claimant, all information and notifications to which the Claimant is entitled
shall be directed to the authorized representative.

 

The Plan Administrator shall perform periodic examinations, reviews, or
audits of benefit claims to determine whether claims determinations are made in
accordance with the governing Plan documents and, where- appropriate, Plan
provisions have been consistently applied with respect to similarly situated
Claimants.

 

SECTION 9,06—DELEGATION
OF AUTHORITY,

 

All or any part of the administrative duties
and responsibilities under this article may be delegated by the Plan
Administrator to a retirement committee. The duties and responsibilities of the
retirement committee shall be set out in a separate written agreement.

 

SECTION 9.07—EXERCISE OF DISCRETIONARY AUTHORITY.

 

The Employer, Plan Administrator, and any other person or entity who has
authority with respect to the management , administration, or investment of the
Plan may exercise that authority in Its/his full discretion, subject only to
the duties imposed under ERISA. This discretionary authority includes, but is
not limited to, the

 

69

 

Authority
to make any and all factual determinations and interpret all terms and
provisions of the Plan documents relevant to the issue under consideration. The
exercise of authority will be binding upon all persons; will be given
difference in all courts of law to the greatest extent allowed under law; and
will not be overturned or set aside by any court of law unless found to be
arbitrary and capricious or made in bad faith.

 

SECTION 9.08—TRANSACTION
PROCESSING.

 

Transactions (including, but not limited to, investment directions,
trades, loans, and distributions) shall be processed as soon as
administratively practicable after proper directions are received from the
Participant or other parties, No guarantee is made by the Plan. Plan
Administrator. Trustee, Insurer, or Employer that such transactions will be
processed on a daily or other basis, and no guarantee is made in any respect
regarding the processing time of such transactions.

 

Notwithstanding any other provision of the Plan, the Employer, the Plan
Administrator, or the Trustee reserve the right to not value an investment
option on any given Valuation Date for any reason deemed appropriate by the
Employer, the Plan Administrator, or the Trustee.

 

Administrative practicality will be determined by legitimate business
factors (including, but not limited to. failure of systems or computer
programs, failure of the means of the transmission of data, force majeure, the
failure of a service provider to timely receive values or prices. and
correction for errors or omissions or the errors: or omissions of any service
provider) and In no event will be deemed to he less than 14 days. The
processing date of a transaction shall be binding for all purposes of the Plan
and considered the applicable Valuation Date for any transaction.

 

70

 

ARTICLE X

 

GENERAL PROVISIONS

 

SECTION 10.01—AMENDMENTS.

 

The Employer may amend this Plan at any time, including any remedial
retroactive changes (within the time specified by Internal Revenue Service
regulations), to comply with any law or regulation issued by any governmental
agency to which the Plan is subject.

 

An amendment may not diminish or adversely affect any accrued interest
or benefit of Participants or their Beneficiaries nor allow reversion or
diversion of Plan assets to the Employer at any time, except as may be required
to comply with any law or regulation issued by any governmental agency to which
the Plan is subject.

 

No amendment to this Plan shall be effective to the extent that it has
the effect of decreasing a Participant’s accrued benefit. However, a
Participant’s Account may be reduced to the extent permitted under Code Section 412(c) (B).
For purposes of this paragraph, a Plan amendment that has the effect of
decreasing a Participant’s Account with respect to benefits attributable to
service before the amendment shall be treated as reducing an accrued benefit.
Furthermore, if the vesting schedule of the Plan is amended, in the case of an
Employee who is a Participant as of the later of the date such amendment is
adopted or the date it becomes effective, the non-forfeitable percentage (determined
as of such date) of such Employee’s right to his employer-derived accrued
benefit shall not be less than his percentage computed under the Plan without
regard to such amendment.

 

No amendment to the Plan shall be effective to eliminate or restrict an
optional form of benefit with respect to benefits attributable to service
before the amendment except as provided In the MERGERS AND DIRECT TRANSFERS SECTION of
this article and below:

 

(a)        The Plan is
amended to eliminate or restrict the ability of a Participant to receive
payment of his Account balance under a particular optional form of benefit and
the amendment provides a single sum distribution form that is otherwise
identical to the optional form of
benefit eliminated or restricted. A single sum distribution form is otherwise
identical only If it is identical in all respects to the eliminated or
restricted optional form of benefit (or would be identical except that it
provides greater rights to the Participant) except with respect to the timing of
payments after commencement.

 

(b)       The Plan is
amended to eliminate or restrict in-kind distributions and the conditions in
Q&A-2 (b) (2) (iii) in section 1.411 (d)-4 of the
regulations arc met.

 

If, as a result of an amendment, an Employer Contribution IS removed
that is not 100% immediately vested when made, the applicable vesting schedule
shall remain in effect after the date of such amendment. The Participant shall
not become immediately 100% vested in such Contributions as a result of the
elimination of such Contribution except as otherwise specifically provided in
the Plan.

 

An amendment shall not decrease a Participant’s vested interest in the
Plan. If an amendment to the Plan, or a deemed amendment in the case of a
change in top-heavy status of the Plan as provided in the MODIFICATION OF
VESTING REQUIREMENTS SECTION of Article XI, changes the computation
of the

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE X (8-3450)

  

 

71

 

percentage
used to determine that portion of a Participant’s Account attributable to
Employer Contributions which is non-forfeitable (whether directly or
indirectly), each Participant or former Participant

 

(c)        who has
completed at least three Years of Service on the date the election period described
below ends (five Years of Service if the Participant does not have at least one
Hour of Service in a Plan Year beginning after December 31, 1988) and

 

(d)       whose non-forfeitable
percentage will be determined on any date after the date of the change

 

may
elect, during the election period, to have the non-forfeitable percentage of
his Account that results from Employer Contributions determined without regard
to the amendment. This election may not be revoked. If after the Plan IS changed, the
Participant’s non-forfeitable percentage will at all times be as great as it
would have been if the change had not been made, no election needs to be
provided. The election period shall begin no later than the date the Plan
amendment is adopted, or deemed adopted in the case of a change in the top
heavy status of the Plan, and end no earlier than the 6Oth day after the latest
of the date the amendment is adopted (deemed adopted) or becomes effective, or
the date the Participant is issued written notice of the amendment (deemed
amendment) by the Employer or the Plan Administrator.

 

SECTION 10.02—DIRECT
ROLLOVERS.

 

Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee’s election under this section, a Distributee may
elect. At the time and in the manner prescribed by the Plan Administrator, to
have any portion of an Eligible Rollover Distribution paid directly to an
Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

 

In the event of a mandatory distribution of an Eligible Rollover
Distribution greater than $1,000 in accordance with the SMALL AMOUNTS SECTION of
this article (or which is a small amounts payment under Article VIII at
complete termination of the Plan, if the Participant docs not elect to have
such distribution paid directly to an Eligible Retirement Plan specified by the
Participant in a Direct Rollover or to receive the distribution directly, the
Plan Administrator will pay the distribution in a Direct Rollover to an
individual retirement plan designated by the Plan Administrator.

 

In the event of any other Eligible Rollover Distribution to a
Distributee in accordance with the SMALL AMOUNTS SECTION of this article
(or which is a small amounts payment under Article VIII at complete
termination of the Plan), if the Distributee does not elect to have such
distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover or to receive the distribution directly, the
Plan Administrator will pay the distribution to the Distributee.

 

A mandatory distribution is a distribution to a Participant that IS made without the
Participant’s consent and is made to the Participant before he attains the
older of age 62 or his Normal Retirement Age.

 

SECTION 10.03—MERGERS
AND DIRECT TRANSFERS.

 

The Plan may not be merged or consolidated with, nor have its assets or
liabilities transferred to, any other retirement plan, unless each Participant
in this Plan would /if that plan then terminated) receive a benefit Immediately
after the merger, consolidation, or transfer which is equal to or greater than
the benefit the Participant would have been entitled to receive immediately
before the merger, consolidation, or transfer (if this Plan had then
terminated). The Employer may enter into merger agreements or direct transfer
of assets

 

72

 

agreements
with the employers under other retirement plans which are qualifiable under
Code Section 401(a), including an elective transfer, and may accept the
direct transfer of plan assets, or may transfer plan assets, as a party to any
such agreement. The Employer shall not consent to, or be a party to a merger,
consolidation, or transfer of assets with a defined benefit plan if such action
would result in a defined benefit feature being maintained under this Plan. The
Employer will not transfer any amounts attributable to elective deferral
contributions, qualified matching contributions, and qualified non-elective
contributions unless the transferee plan provides that the limitations of
section 1.401 (k)-1(d) of the regulations shall apply to such amounts
(including post-transfer earnings thereon), unless the amounts could have been
distributed at the time of the transfer (other than for hardship), and the
transfer is an elective transfer described in Q&A·3(b) (1) in
section 1.411 (d)-4 of the regulations.

 

Notwithstanding any provision of the Plan to the contrary, to the extent
any optional form of benefit under the Plan permits a distribution prior to the
Employee’s retirement, death, disability, or Severance from Employment, and
prior to plan termination, the optional form of benefit is not available with
respect to benefits attributable to assets (including the post-transfer
earnings thereon) and liabilities that are transferred, within the meaning of
Code Section 414(1), to this Plan from a money purchase pension plan
Qualified under Code Section 401(a) (other than any portion of those
assets and liabilities attributable to voluntary employee contributions). The
limitations of section 1.401 (k)-1 (d) of the regulations applicable to
elective deferral contributions, qualified matching contributions, and
qualified non-elective contributions shall continue to apply to any amounts
attributable to such contributions (including post-transfer earnings thereon)
transferred to this Plan, unless the amounts could have been distributed at the
time of the transfer (other plan for hardship), and the transfer is an elective
transfer described in Q&A-3(b)(1) in section 1.411(d)-4 of the
regulations.

 

The Plan may accept a direct transfer of plan assets on behalf of the
Eligible Employee. If the Eligible Employee is not an Active Participant when
the transfer IS made, the Eligible Employee shall be deemed to be an Active
Participant only for the purpose of Investment and distribution of the
transferred assets. Employer Contributions shall not be made for or allocated
to the Eligible Employee, until the time he meets all of the requirements to
become an Active Participant.

 

The Plan shall hold, administer, and distribute the transferred assets
as a part of the Plan. The Plan shall maintain a separate account for the
benefit of the Employee on whose behalf the Plan accepted the transfer in order
to reflect the value of the transferred assets.

 

Unless a transfer of assets to the Plan is an elective transfer as
described below, the Plan shall apply the optional forms of benefit protections
described in the AMENDMENTS SECTION of this article to all transferred
assets.

 

A Participant’s protected benefits may be eliminated upon transfer
between Qualified defined contribution plans if the conditions in Q&A-3(b)(1) in
section 1.411(d)-4 of the regulations are met. The transfer must meet all of
the other applicable qualification requirements.

 

A Participant’s protected benefits may be eliminated upon transfer
between qualified plans (both defined benefit it and defined contribution) if
the conditions in Q&A(3)(c)(1) in section 1.411(d)-4 of the
regulations are met. Beginning January 1, 2002, if the Participant is
eligible to receive an immediate distribution of his entire no forfeitable
accrued benefit in a single sum distribution that would consist entirely of an
eligible rollover distribution under Code Section 401 (a)(31), such transfer
will be accomplished as a direct rollover under Code Section 401(a)(31).
The rules applicable to distributions under the plan would apply to the
transfer, but the

 

73

 

transfer
would not be treated as a distribution for purposes of the minimum distribution
requirements of Code Section 401 (a) (9).

 

SECTION 10.04—PROVISIONS
RELATING TO THE INSURER AND OTHER PARTIES.

 

The obligations of an Insurer shall be governed solely by the provisions
of the Annuity Contract. The Insurer shall not be required to perform any act
not provided in or contrary to the provisions of the Annuity Contract. Each
Annuity Contract when purchased shall comply with the Plan. See the
CONSTRUCTION SECTION of this article.

 

Any issuer or distributor of investment contracts or securities is
governed solely by the terms of its policies, written investment contract,
prospectuses, security instruments, and any other written agreements entered
into with the Trustee with regard to such investment contracts or securities.

 

Such Insurer, issuer or distributor is not a party to the Plan, nor
bound in any way by the Plan provisions, Such parties shall not be required to
look to the terms of this Plan, nor to determine whether the Employer, the Plan
Administrator, the Trustee, or the Named Fiduciary have the authority to act in
any particular manner or to make any contract or agreement.

 

Until notice of any amendment or termination of this Plan or a change in
Trustee has been received by the Insurer at its home office or an issuer or
distributor at their principal address, they are and shall be fully protected
in assuming that the Plan has not been amended or terminated and in dealing
with any party acting as Trustee according to the latest information which they
have received at their home office or principal address.

 

SECTION 10.05—EMPLOYMENT
STATUS,

 

Nothing contained in this Plan gives an Employee the right to be
retained in the Employer’s employ or to interfere with the Employer’s right to
discharge any Employee.

 

SECTION 10.06—RIGHTS
TO PLAN ASSETS.

 

An Employee shall not have any right to or interest in any assets of the
Plan upon termination of employment or otherwise except as specifically
provided under this Plan, and then only to the extent of the benefits payable
to such Employee according to the Plan provisions.

 

Any final payment or distribution to a Participant or his legal
representative or to any Beneficiaries, spouse, or Contingent Annuitant of such
Participant under the Plan provisions shall be in full satisfaction of all
claims against the Plan, the Named Fiduciary, the Plan Administrator, the
Insurer, the Trustee, and the Employer arising under or by virtue of the Plan.

 

SECTION 10.07—BENEFICIARY.

 

Each Participant may name a Beneficiary to receive any death benefit
(other than any income payable to a Contingent Annuitant) that may arise out of
his participation in the Plan. The Participant may change his Beneficiary from
time to time. Unless a qualified election has been made, for purposes of
distributing any death benefits before the Participant’s Retirement Date, the
Beneficiary of a Participant who has a spouse who

 

74

 

is
entitled to a Qualified Pre-retirement Survivor Annuity shall be the
Participant’s spouse. The Participant’s Beneficiary designation and any change
of Beneficiary shall be subject to the provisions of the ELECTION PROCEDURES SECTION of
Article VI.

 

It is the responsibility of the Participant to give written notice to the
Plan Administrator of the name of the Beneficiary on a form furnished for that
purpose. The Plan Administrator shall maintain records of Beneficiary
designations for Participants before their Retirement Dates. However, the Plan
Administrator may delegate to another party the responsibility of maintaining
records of Beneficiary designations. In that event, the written designations
made by Participants shall be filed with such other party. If a party other
than the Insurer maintains the records of Beneficiary designations and a
Participant dies before his Retirement Date, such other party shall certify to
the Insurer the Beneficiary designation on its records for the Participant.

 

If there is no Beneficiary named or surviving when a Participant dies,
the Participant’s Beneficiary shall be the Participant’s surviving spouse, or
where there is no surviving spouse, the executor or administrator of the
Participants estate.

 

SECTION 10.08—NON ALIENTATION OF BENEFITS.

 

Benefits payable under the Plan are not subject to the claims of any
creditor of any Participant, Beneficiary, spouse, or Contingent Annuitant. A
Participant, Beneficiary, spouse, or Contingent Annuitant does not have any
rights to alienate, anticipate, commute, pledge, encumber, or assign such benefits,
except in the case, of a loan as provided in the LOANS TO PARTICIPANTS SECTION of
Article V. The preceding sentences shall also apply to the creation,
assignment, or recognition of a right to any benefit payable with respect to a
Participant according to a domestic relations order, unless such order is
determined by the Plan Administrator to be a qualified domestic relations
order, as defined in Code Section 414(p) or any domestic relations
order entered before January 1, 1985. The preceding sentences shall not
apply to any offset of a Participant’s benefits provided under the Plan against
an amount the Participant is required to pay the Plan with respect to a
judgment, order, or decree issued, or a settlement entered into, on or after August 5,
1997, which meets the requirements of Code Sections 401 (a)(13)(C) or (D).

 

SECTION 10.09··CONSTRUCTION.

 

The validity of the Plan or any of its provisions is determined under
and construed according to Federal law and, to the extent permissible,
according to the laws of the state in which the Employer has its principal
office. In case any provision of this Plan is held illegal or invalid for any
reason, such determination shall not affect the remaining provisions of this
Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provision had never been included.

 

In the event of any conflict between the provisions of the Plan and the
terms of any Annuity Contract issued hereunder, the provisions of the Plan
control.

 

SECTION 10.10—LEGAL ACTIONS.

 

No person employed by the Employer; no Participant, former Participant,
or their Beneficiaries; nor any other person having or claiming to have an
interest in the Plan is entitled to any notice of process. A final judgment
entered in any such action or proceeding shall be binding and conclusive on all
persons having or claiming to have an interest in the Plan.

 

75

 

SECTION 10.11—SMALL AMOUNTS.

 

If consent of the Participant is not required for a benefit that is
immediately distributable in the ELECTION PROCEDURES SECTION of Article VI,
a Participant’s entire vested Account shall be paid in a single sum, is of the
earliest of his Retirement Date, the date he dies, or the date he has a
Severance from Employment for any other reason (the date the Employer provides
notice to the record keeper of the Plan of such event, if later). For purposes
of this section, if the Participant’s Vested Account is zero, the Participant
shall be deemed to have received a distribution of such Vested Account. If a
Participant would have received a distribution under the first sentence of this
paragraph but for the fact that the Participant’s consent was needed to
distribute a benefit which is immediately distributable, and if at a later time
consent would not be needed to distribute a benefit that is immediately
distributable and such Participant has not again become an Employee, such
Vested Account shall be paid In a single sum. This is a small amounts payment.

 

If a small amounts payment is made as of the date the Participant dies,
the small amounts payment shall be made to the Participant’s Beneficiary
(spouse if the death benefit is payable to the spouse). If a small amounts
payment is made while the Participant is living, the small amounts payment
shall be made to the Participant. The small amounts payment is in full
settlement of all benefits otherwise payable.

 

No
other small amounts payments shall be made.

 

SECTION 10.12—WORD USAGE.

 

The masculine gender, where used in this Plan, shall include the
feminine gender and the singular words, where used in this Plan, shall include
the plural, unless the context indicates otherwise.

 

The words “in writing” and “written,” where used in this Plan, shall
include any other forms, such as voice response or other electronic system, as
permitted by any governmental agency to which the Plan is subject.

 

SECTION 10.13—CHANGE IN SERVICE METHOD.

 

(a)        Change of
Service Method under This Plan. If this Plan is amended to
change the method of crediting service from the elapsed time method to the
hour’s method for any purpose under this Plan, the Employee’s service shall be
equal to the sum of (1), (2) and (3) below:

 

(1)       The number of
whole years of service credited to the Employee under the Plan as of the date
the change IS effective.

 

(2)       One year of
service for the computation period in which the change is effective if he is
credited with the required number of Hours of Service. For that portion of the
computation period ending on the date of the change (for the first day of the
computation period If the change is made on the first day of the computation
period), the Employee will be credited with the greater of (i) his actual
Hours of Service or (ii) the number of Hours of Service that is equivalent
to the fractional part of a year of elapsed time service credited as of the
date of the change, if any. In determining the equivalent Hours of Service, the
Employee shall be credited with 190 Hours of Service for each month and any
fractional part of a month in

 

76

 

such
fractional part of a year. The number of months and any fractional part of a
month shall be determined by multiplying the fractional part of a year,
expressed as a decimal, by 12. For the remaining portion of the computation
period (the period beginning on the second day of the computation period and
ending on the last day of the computation period if the change is made on the
first day of the computation period), the Employee will be credited with his
actual Hours of Service.

 

(3)        The Employee’s
service determined under this Plan using the hours method after the end of the
computation period in which the change in service method was effective.

 

If
this Plan is amended to change the method of crediting service from the hours
method to the elapsed time method for any purpose under this Plan, the
Employee’s service shall be equal to the sum of (4), (5),  and (6) below:

 

(4)        The number of
whole years of service credited to the Employee under the Plan as of the
beginning of the computation period in which the change in service method is
effective.

 

(5)        The greater of (i) the
service that would be credited to the Employee for that entire computation
period using the elapsed time method or (ii) the service credited to him
under the Plan as of the date the change is effective.

 

(6)        The Employee’s service
determined under this Plan using the elapsed time method after the end of the
applicable computation period in which the change in service method was effective.

 

(b)        Transfers  between
Plans with Different Service Methods. If an Employee has been a participant
in another plan of the Employer that credited service under the elapsed time
method for any purpose that under this Plan is determined using the hours
method, then the Employee’s service shall be equal to the sum of (1), (2), and (3) below:

 

(1)        The number of
whole years of service credited to the Employee under the other plan as of the
date he became an Eligible Employee under this Plan.

 

(2)        One year of service for the
applicable computation period in which he became an Eligible Employee if he is
credited with the required number of Hours of Service. For that portion of such
computation period ending on the date he became an Eligible Employee (for the
first day of such computation period if he became an Eligible Employee on the
first day of such computation period), the Employee will be credited with the
greater of (i) his actual Hours of Service or (ii) the number of
Hours of Service that IS equivalent to the fractional part of a year of elapsed
time service credited as of the date he became an Eligible Employee, if any. In
determining the equivalent Hours of Service, the Employee shall be credited
with 190 Hours of Service for each month and any fractional part of a month in
such fractional part of a year. The number of months and any fractional part of
a month shall be determined by multiplying the fractional part of a year,
expressed as a decimal, by 12. For the remaining portion of such computation
period (the period beginning on the second day of such computation period and
ending on the last day of such computation period if he became an Eligible
Employee on the first day of such computation period), the Employee will be
credited with his actual Hours of Service.

 

77

 

(3)       The Employee’s
service determined under this Plan using the hours method after the end of the
computation period in which he became an Eligible Employee.

 

If
an Employee has been a participant in another plan of the Employer that
credited service under the hours method for any purpose that under this Plan is
determined using the elapsed time method, then the Employee’s service shall be
equal to the sum of (4), (5), and (6) below:

 

(4)       The number of
whole years of service credited to the Employee under the other plan as of the
beginning of the computation period under that plan in which he became an
Eligible Employee under this Plan.

 

(5)       The greater of (i) the
service that would be credited to the Employee for that entire computation
period using the elapsed time method or (ii) the service credited to him
under the other plan as of the date he became an Eligible Employee under this
Plan.

 

(6)       The Employee’s
service determined under this Plan using the elapsed time method after the end
of the applicable computation period under the other plan in which he became an
Eligible Employee.

 

If an Employee has been a participant in a Controlled Group member’s
plan that credited service under a differed method than is used in this Plan,
in order to determine entry and vesting, the provisions in (b) above shall
apply as though the Controlled Group member’s plan was a plan of the Employer.

 

Any
modification of service contained in this Plan shall be applicable to the
service determined pursuant to this section.

 

SECTION 10.14—MILITARY
SERVICE.

 

Notwithstanding any provision of this Plan to the contrary, the Plan
shall provide contributions, benefits, and service credit with respect to
qualified military service in accordance with Code Section 414(u). Loan
repayments shall be suspended under this Plan as permitted under Code Section 414(u).

 

78

 

ARTICLE XI

 

TOP-HEAVY PLAN REOUIREMENTS

 

SECTION 11.01—APPLICATION.

 

The provisions of this article shall supersede all other provisions in
the Plan to the contrary. The provisions of this article shall apply for
purposes of determining whether the Plan is a Top-heavy Plan for Plan Years
beginning after December 31, 2001 and whether the Plan satisfies the
minimum benefit requirements of Code Section 416(c) for such years.

 

For the purpose of applying the Top-heavy Plan requirements of this
article, all members of the Controlled Group shall be treated as one Employer.
The term Employer, as used in this article, shall be deemed to include all
members of the Controlled Group, unless the term as used clearly indicates only
the Employer is meant.

 

The accrued benefit or account of a participant that results from
deductible employee contributions shall not be included for any purpose under
this article.

 

The minimum vesting and contribution provisions of the MODIFICATION OF
VESTING REQUIREMENTS and MODIFICATION OF CONTRIBUTIONS SECTIONS of this article
shall not apply to any Employee who is included in a group of Employees covered
by a collective bargaining agreement which the Secretary of Labor finds to be a
collective bargaining agreement between employee representatives and one or
more employers, including the Employer, if there is evidence that retirement
benefits were the subject of good faith bargaining between such
representatives. For this purpose, the term “employee representatives” does not
include any organization more than half of whose members are employees who are owners, Officers, or executives.

 

SECTION 11 .02—DEFINITIONS.

 

For
purposes of this article the following terms are defined:

 

Aggregation
Group means:

 

(a)        each of the
Employer’s qualified plans in which a Key Employee is a participant during the
Plan Year containing the Determination Date (regardless of whether the plans
have terminated) or one of the four preceding Plan Years,

 

(b)       each of the
Employer’s other Qualified plans which allows the plan(s) described in (a) above
to meet the nondiscrimination requirement of Code Section 401(a)(4) or
the minimum coverage requirement of Code Section 410, and

 

(c)        any of the
Employer’s other qualified plans not included In (a) or (b) above
which the Employer desires to include as part of the Aggregation Group. Such a
qualified plan shall be included only if the Aggregation Group would continue
to satisfy the requirements of Code Sections 401(a)(4) and 410.

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  ARTICLE XI (8-3450)

  

 

79

 

The
plans in (a) and (b) above constitute the “required” Aggregation Group.
The plans in (a), (b), and (c) above constitute the “permissive”
Aggregation Group.

 

Compensation
means compensation as defined in the CONTRIBUTION LIMITATION SECTION of Article III.

 

Determination
Date means as to any plan, 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 Determination Date is the last day of that year.

 

Key
Employee means any Employee or former Employee (including any deceased
Employee) who at any time during the Plan Year that includes the Determination
Date is:

 

(a)        an officer of the Employer
having an annual Compensation greater than $130,000 (as adjusted under Code Section 416(i)(1) for
Plan Years beginning after December 31, 2002).

 

(b)        a 5-percent owner of the
Employer, or

 

(c)        a 1-percent
owner of the Employer having an annual Compensation of more than $150,000.

 

The
determination of who is a Key Employee shall be made according to Code Section 416(i)(1) and
the applicable regulations and other guidance of general applicability issued
there under.

 

Non-key
Employee means any Employee who is not a Key Employee.

 

Top-heavy
Plan means a plan that is top-heavy for any plan year. This Plan shall be
top-heavy if any of the following conditions exist:

 

(a)        The Top-heavy Ratio for this
Plan exceeds 60 percent and this Plan is not part of any required Aggregation
Group or permissive Aggregation Group.

 

(b)        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 60 percent.

 

(c)        This Plan is a part of a
required Aggregation Group and part of a permissive
Aggregation Group and the Top-heavy Ratio for the permissive Aggregation Group
exceeds 60 percent.

 

Top-heavy
Ratio means:

 

(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-year period ending on the Determination Date(s) 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(s) (Including any part of any account balance
distributed in the one-year period ending on the Determination Date(s) and
distributions under a terminated plan which if It had not been terminated would
have been required to be included in the Aggregation Group), and the
denominator of which is the sum of all account balances (including

 

80

 

any
part of any account balance distributed in the one-year period ending on the
Determination Date(s) and distributions under a terminated plan which if it had not been
terminated would have been required to be included in the Aggregation Group),
both computed in accordance with Code Section 416 and the regulations
there under. In the case of a distribution made for a reason other than
Severance from Employment, death, or disability, this provision shall be
applied by substituting “five-year period” for “one-year period.” Both the
numerator and denominator of the Top-heavy Ratio are increased to reflect any
contribution not actually made as of the Determination Date, but which is
required to be taken into account on that date under Code Section 416 and
the regulations there under.

 

(b)        If the Employer
maintains one or more defined contribution plans (including any simplified
employee pension plan) and the Employer maintains or has maintained one or more
defined benefit plans which during the five-year period ending on the
Determination Date(s) has or has had accrued benefits, the Top-heavy Ratio
for any required or permissive Aggregation Group, as appropriate, is a
fraction, the numerator of which IS the sum of the
account balances under the aggregated defined contribution plan or plans of all
Key Employees determined in accordance with (a) above, and the present
value of accrued benefits under the aggregated defined benefit plan or plans
for all Key Employees as of the Determination Date(s), and the denominator of
which is the sum of the account balances under the aggregated defined
contribution plan or plans for all participants. determined in accordance With (ii) above,
and the present value of accrued benefits under the defined benefit plan or
plans for all participants as of the Determination Date(s), all determined in
accordance With Code Section 416 and the regulations there under. The
accrued benefits under a defined benefit plan in both the numerator and
denominator of the Top-heavy Ratio are increased for any distribution of an
accrued benefit made in the one-year period ending on the Determination Date
(and distributions under a terminated plan which if it had not been terminated
would have been required to be included in the Aggregation Group). In the case
of a distribution made for a reason other than Severance from Employment,
death, or disability, this provision shall be applied by substituting
“five-year period” for “one-year period.”

 

(c)        For purposes of (a) and
(b) above, the value of account balances and the present value of accrued
benefits will be determined as of the most recent Valuation Data that falls
within or ends With the 12-month period ending on the Determination Date,
except as provided in Code Section 416 and the regulations there under for
the first and second plan years of a defined benefit plan. The account balances
and accrued benefits of a participant (i) who is not a Key
Employee but who was a Key Employee in a prior year or
(ii) who has not been credited with at least one hour of service
with any employer maintaining the plan at any time during the one-year period
ending on the Determination Date will be disregarded. The calculation of the
Top-heavy Ratio and the extent to which distributions, rollovers, and transfers
are taken into account will be made in accordance with Code Section 416
and the regulations there under. 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 n participant other than a Key Employee shall be determined
under (i) the method, if any, that uniformly applies for accrual purposes
under all defined benefit plans maintained by the Employer, or (ii) if
there is no such method, as if such benefit accrued not more rapidly than the
slowest accrual rate permitted under the fractional rule of Code Section 411(b)(1)(C).

 

81

 

SECTION 11.03—MODIFICATION
OF VESTING REQUIREMENTS.

 

If a Participant’s Vesting Percentage determined under Article I IS
not at least as great as his Vesting Percentage would be if it were determined
under a schedule permitted in Code Section 416, the following shall apply.
During any Plan Year in which the Plan is a Top-heavy Plan, the Participant’s
Vesting Percentage shall be the greater of the Vesting Percentage determined
under Article I or the schedule below.

 

	
  VESTING SERVICE 

  (whole years)

  	
   

  	
  NONFORFEITABLE PERCENTAGE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
   

  
	
  2

  	
   

  	
  20

  	
   

  
	
  3

  	
   

  	
  40

  	
   

  
	
  4

  	
   

  	
  60

  	
   

  
	
  5

  	
   

  	
  80

  	
   

  
	
  6 or more

  	
   

  	
  100

  	
   

  

 

The schedule above shall not apply to Participants who arc not credited
with an Hour of Service after the Plan first becomes a Top-heavy Plan. The
Vesting Percentage determined above applies to the portion of the Participant’s
Account that is multiplied by a Vesting Percentage 10 determine his Vested
Account, including benefits accrued before the effective date of Code Section 416
and benefits accrued before this Plan became a Top-heavy Plan.

 

If, in a later Plan Year, this Plan is not a Top-heavy Plan, a
Participant’s Vesting Percentage shall be determined under Article I. A
Participant’s Vesting Percentage determined under either Article I or the
schedule above shall never be reduced and the election procedures of the
AMENDMENTS SECTION of Article X shall apply when changing to or from
the schedule as though the automatic change were the result of an amendment.

 

The part of the Participant’s Vested Account resulting from the minimum
contributions required pursuant to the MODIFICATION OF CONTRIBUTIONS SECTION of
this article (to the extent required to be non forfeitable under Code Section 416(b))
may not be forfeited under Code Section 411 (a)(3)(B) or (D).

 

SECTION 11.04—MODIFICATION
OF CONTRIBUTIONS.

 

During any Plan Year in which this Plan is a Top-heavy Plan, the
Employer shall make a minimum contribution as of the last day of the Plan Year
for each Non-key Employee who is an Employee on the last day of the Plan Year
and who was an Active Participant at any time during the Plan Year. A Non-key
Employee is not required to have a minimum number of Hours of Service or
minimum amount of Compensation in order to be entitled to this minimum. A
Non-key Employee who fails to be an Active Participant merely because his
Compensation is less than a stated amount or merely because of  a failure to
make mandatory participant contributions or, in the case of a cash or deferred
arrangement, elective contributions shall be treated as if he were an Active
Participant. The minimum IS the lesser of (a) or (b) below:

 

(a)        3 percent of such person’s
Compensation for such Plan Year.

 

(o}       The “highest percentage” of
Compensation for such Plan Year at which the Employer’s Contributions ore made
for or allocated to any Key Employee. The highest percentage shall be

 

82

 

determined
by dividing the Employer Contributions made for or allocated to each Key
Employee during the Plan Year by the amount of his Compensation for such Plan
Year, and selecting the greatest quotient (expressed as a percentage). To
determine the highest percentage, all of the Employer’s defined contribution
plans within the Aggregation Group shall be treated as one plan. The minimum
shall be the amount in (a) above if this Plan and a defined benefit plan
of the Employer are required to be included in the Aggregation Group and this
Plan enables the defined benefit plan to meet the requirements of Code Section 401
(a)(4) or 410.

 

For
purposes of (a) and (b) above, Compensation shall be limited by Code Section 401
(a) (17),

 

If the Employer’s contributions and allocations otherwise required under
the defined contribution plan(s) are at least equal to the minimum above,
no additional contribution shall be required. If the Employer’s total
contributions and allocations are less than the minimum above, the Employer
shall contribute the difference for the Plan Year.

 

The minimum contribution applies to all of the Employer’s defined
contribution plans in the aggregate which are Top-heavy Plans. A minimum
contribution under a profit sharing plan shall be made without regard to
whether or not the Employer has profits.

 

If a person who is otherwise entitled to a minimum contribution above is
also covered under another defined contribution plan of the Employer’s which is
a Top-heavy Plan during that same Plan Year, any additional contribution
required to meet the minimum above shall be provided in this Plan.

 

If a person who is otherwise entitled to a minimum contribution above is
also covered under a defined benefit t plan of the Employer’s that is a
Top-heavy Plan during that same Plan Year, the minimum benefits for him shall
not be duplicated. The defined benefit plan shall provide an annual benefit for
him on, or adjusted to, a straight life basis equal to the lesser of:

 

(a)        2 percent of his average
compensation multiplied by his years of service, or

 

(d)        20 percent of his average
compensation.

 

Average compensation and
years of service shall have the meaning set forth in such defined benefit plan
for this purpose.

 

For purposes of this section, any employer contribution made according
to a salary reduction or similar arrangement shall not apply in determining if the minimum
contribution requirement has been met, but shall apply in determining the
minimum contribution required. Matching contributions, as defined in Code Section 401(m),
shall be taken into account for purposes of satisfying the minimum contribution
requirements of Code Section 416(c)(2) and the Plan. Matching contributions
that are used to satisfy the minimum contribution requirements shall be treated
as matching contributions for purposes of the actual contribution percentage
test and other requirements of Code Section 401(m).

 

The
requirements of this section shall be met without regard to any Social Security
contribution,

 

83

 

By
executing this Plan, the Primary Employer acknowledges having counseled to the
extent necessary with selected legal and tax advisors regarding the Plan’s
legal and tax implications.

 

 

	
   

  	
  ENERGYSOLUTIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Defined Contribution Plan
  CL2005

  

 

	
  RESTATEMENT JANUARY 1, 2007

  	
  PLAN EXECUTION (8-3450)

  

 

84

 

AMENDMENT
NO. 1

 

ENERGYSOLUTIONS,
LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives s the Employer the
right to amend it any time. According to that right, the Plan is amended
effective January 1, 2007, as follows:

 

By striking the 12th paragraph
which begins, “The loan shall by its terms require...”)

 

The
loan shall by its terms require that repayment (principal and interest) be
amortized in level payments, not less frequently than quarterly, over a period
not extending beyond five years from the date of the loan. If the loan is used
to acquire a dwelling unit, which within a reasonable time (determined at the
time the loan is made)l be used as the principal residence of the Participant,
the repayment period may extend beyond five years from the date of the loan,
but shall not be made for a period longer than fifteen (15) years.

 

This amendment is made an integral part of
the aforesaid Plan and is controlling over the terms of said Plan with respect
to the particular items addressed expressly herein. All other provisions of the
Plan remain unchanged and controlling.

 

Unless otherwise stated on any page of this
amendment, eligibility for benefits and the amount of any benefits payable to
or on behalf of an individual who is an Inactive Participant on the effective
date(s) stated above, shall be determined according to the provisions of the
aforesaid Plan as in effect on the day before he became an inactive
Participant.

 

Signing this amendment, the Employer, as plan
sponsor, has made the decision to adopt this Plan amendment. The Employer is
acting in reliance on its own discretion and on the legal and tax advice of its
own advisors, and not that of any member of the Principal Financial Group or
any representative of a member company of the Principal Financial Group.

 

 

ENERGYSOLUTIONS, LLC

 

	
  Amendment No.1

  	
   

  	
  (8-03450)

  

 

 

AMENDMENT
NO. 2

 

ENERGYSOLUTIONS,
LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives the Employer the
right to amend it at any time. According to that right the Plan is amended
effective July 1, 2007, as follows:

 

By striking the provisions of the ACTIVE
PARTICIPANT SECTION of Article II and substituting the following:

 

(a)        For purposes of
Elective Deferral Contributions, an Employee shall first become an Active
Participant (begin active participation in the Plan) on the earliest monthly
Date on which he is an Eligible Employee. 
This date is his Entry Date for purposes of Contributions other than
Elective Deferral Contributions.

 

(1)           He has
completed one year of Eligibility Service before his Entry Date.

 

A Participant’s earliest
Entry Date shall be used to determine if he is an Active Participant for
purposes of any minimum contribution or allocation under the MODIFICATION OF
CONTRIBUTIONS SECTION of Article XI.

 

Each Employee who was an
Active Participant for purposes 01 specified Contributions on June 30, 2007,
shall continue to be an Active Participant for purposes of the specified
Contributions if he is still an Eligible Employee on July 1, 2007, and his
Entry Date shall not change.

 

If service with 8
Predecessor Employer is counted for purposes of Eligibility Service, an
Employee shall be credited with such service on the date he becomes an Employee
and shall become an Active Participant for purposes of Contributions other than
Elective Deferral Contributions on the earliest Monthly Date on which he is an
Eligible Employee and has met ell of the eligibility requirements above. This
date is his Entry Date for purposes of the specified Contributions.

 

If a person has been an
Eligible Employee who has met all of the eligibility requirements for purposes
of Elective Deferral Contributions above, but is not an Eligible Employee on
the date that would have been his Entry Date for such Contributions, he shall
become an Active Participant for purposes of such Contributions on the date he
again becomes an Eligible Employee. This date is his Entry Date for purposes of
Elective Deferral Contributions.

 

If a person has been an
Eligible Employee who has met all of the eligibility requirements for purposes
of Contributions other than Elective Deferral Contributions above, hut is not
an Eligible Employee on the date that would have been his Entry Date for
purposes of such Contributions, he shall become an Active Participant for
purposes of such Contributions on the date he again

 

	
  Amendment No.2

  	
   

  	
  (8-03450)

  

 

 

becomes an Eligible
Employee. This date is his Entry Date for purposes of Contributions other than
Elective Deferral Contributions.

 

In the event an Employee who
is not Eligible Employee becomes an Eligible Employee, such an Eligible
Employee shall become an Active Participant immediately if such Eligible
Employee has satisfied the eligibility requirements for purposes of the
specified Contributions above and would have other wise previously become an
Active Participant had he met the definition of Eligible Employee this date is
his Entry Date for purposes of such specified Contributions.

 

(b)        An Inactive
Participant shall again become an Active Participant (resume active
participation in the plan) for purposes of the Contributions for which he
previously had an Entry Date on the date he again performs an Hour of service
as an Eligible Employee. This date is his Reentry Date for such Contributions.

 

Upon again becoming an
Active Participant, he shall cease to be an Inactive Participant.

 

(c)        A former
Participant shall again become an Active Participant (resume active
participation in the plan) for purposes of the Contributions for which he
previously had an Entry Date on the date he again performs an Hour of service
as an Eligible Employee. This date is his Reentry Date for such Contributions.

 

There shall be no
duplication of benefits for a Participant under this Plan because of more than
one period as an Active Participant.

 

By adding the following as the 6th paragraph under subparagraph (a) of the
EMPLOYER CONTRIBUTIONS SECTION of Article III:

 

The Plan provides for an
automatic election to have Elective Deferral Contributions made. The automatic
Elective Deferral Contribution shall be Pre-tax Elective Deferral Contributions
and shall be 3% of Compensation. The automotive Elective Deferral Contribution
shall be automatically increased each January 1, beginning January 1, 2008 by
1& up to a maximum automatic Elective Deferral Contribution of 6%. The
automatic increase shall apply to each Participant not deferring at least 6% of
the Compensation. The Participant may affirmatively elect a different
percentage or elect not to make Elective Deferral Contributions.

 

By adding the following as the 4th and 5th paragraphs
following subparagraph (c) in the EMPLOYER CONTRIBUTIONS SECTION of Article
III:

 

The Plan provides an
automatic election to have Pre-tax Elective Deferral Contributions made. Such
automatic election shall apply when a Participant first becomes eligible to
make Elective Deferral Contributions (or again becomes eligible after a period
during which he was not an active Participant). The Participant shall be
provided a notice that explains the automatic election and his right to elect a
different rate of Elective Deferral Contributions or to elect not to make
Elective Deferral Contributions. The notice shall include the procedure for
exercising that right and the timing for implementing such election the
Participant shall be given a reasonable period thereafter to elect a different
rate of Elective Deferral Contributions or to elect not to make Elective
Deferral Contributions.

 

 

Each
Active Participant affected by the automatic election and automatic increase
shall be provided an annual notice that explains the automatic election and his
right to elect a different rate of Elective Deferral Contributions or to elect
not to make Elective Deferral Contributions. The notice shall include the
procedure for exercising those rights and the timing for implementing such
elections,

 

By adding the following as
the last paragraph under the WITHDRAWAL BENEFITS SECTION of Article V:        .

 

A
Participant must obtain the consent of his spouse, if any, to withdraw any part
of his Vested Account. Spousal consent shall be obtained no earlier than the
beginning of the 90-day period that ends on the date on which the withdrawal is
to be taken. The consent must be in writing, must acknowledge the effect of the
withdrawal, and must be witnessed by a plan representative or a notary public.

 

This amendment is made an
integral part of the aforesaid Plan and is controlling over the terms of said
Plan with respect to the particular items addressed expressly herein. All other
provisions of the Plan remain unchanged and controlling.

 

Unless otherwise stated on
any page of this amendment, eligibility for benefits and the amount of any
benefits payable to or on behalf of an individual who is an Inactive
Participant on the effective datels1 stated above, shall be determined
according to the provisions of the aforesaid Plan as in effect on the day
before he became an Inactive Participant.

 

Signing this amendment, the
Employer, as plan sponsor, has made the decision to adopt this plan amendment,
The Employer is acting in reliance on its own discretion and 011 the legal and
tax advice of its own advisors, and 110t that of any member of the Principal
Financial Group or any representative of a member company of the Principal
Financial Group.

 

 

ENERGYSOLUTIONS, LLC

 

 

AMENDMENT
NO. 3

 

ENERGYSOLUTIONS,
LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives the Employer the
right to amend it at any lime, According to that right, the Plan is amended
effective July 1, 2007, as follows:

 

By adding the following to the list of
exclusionary classes under Eligible Employee in the DEFINITIONS SECTION of
Article l:

 

Defined term Employees

 

Project Employees

 

Temporary or part-time
Employees

 

This amendment is made an integral part of
the aforesaid Plan and is controlling over the terms of said Plan with respect
to the particular items addressed expressly herein. All other provisions of the
Plan remain unchanged and controlling.

 

Unless otherwise stated on any page of this
amendment, eligibility for benefits and the amount of any benefits payable to
or on behalf of an individual who is an Inactive Participant on the effective
date(s) stated above, shall be determined according to the provisions of the
aforesaid Plan as in effect on the day before he became an Inactive
Participant.

 

Signing this amendment, the Employer, as plan
sponsor, has made the decision to adopt this plan amendment. The Employer is
acting in reliance on its own discretion and on the legal and tax advice of its
own advisors, and not that of any member of the Principal Financial Group or
any representative of a member company of the Principal Financial Group.

 

 

ENERGYSOLUTIONS, LLC

 

	
  Amendment No.3

  	
   

  	
  (8-03450)

  

 

 

AMENDMENT NO. 4

 

ENERGYSOLUTIONS, LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives
the Employer the right to amend it at any time. According to that right, the
Plan is amended effective January 1, 2008, as follows:

 

By adding the following to the
INTRODUCTION of the Plan:

 

RWE
NUKEM Corporation previously established the RWE NUKEM Corporation 401(k) Retirement
Plan on January 1, 1987.

 

The
Primary Employer is of the opinion that this plan should be merged into this
Plan. Effective January 1, 2008, the plans are merged and this document is
in lieu of the prior documents for RWE NUKEM Corporation.

 

By striking items (a) through
(d) from the definition of Account in
the DEFINITIONS SECTION of Article I and substituting the following:

 

	
   

  	
  (a)

  	
  Pre-tax Elective Deferral
  Contributions

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Matching Contributions

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Qualified Nonelective
  Contributions

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Other Employer
  Contributions

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Rollover Contributions

  

 

By adding the following to
the list of contributions under the definitions of Contributions and Employer
Contributions:

 

Qualified
Non-elective Contributions

 

By striking the definition of
Predecessor Employer from the
DEFINITIONS SECTION of Article I and substituting the following:

 

Predecessor Employer means a firm of which the
Employer was once a part (e.g., due to a spinoff or change of corporate status)
or a firm absorbed by the Employer because of a merger or acquisition (stock or
asset, including a division or an operation of such company).

 

By adding the following
definition to the DEFINITIONS SECTION of Article I:

 

Qualified Non-elective Contributions means
contributions made by the Employer to fund this Plan (other than Elective
Deferral Contributions) that are 100% vested when made to the Plan and that are
distributable only in accordance with the distribution provisions (other than
for hardships) applicable to Elective Deferral Contributions. See the EMPLOYER
CONTRIBUTIONS SECTION of Article III and the WHEN BENEFITS START SECTION of
Article V.

 

 

By adding the following to the INACTIVE
PARTICIPANT SECTION of Article II:

 

Each
Employee who was an active participant under the RWE NUKEM Corporation 401(k) Retirement
Plan on December 31, 2007, shall become an Active Participant under this
Plan on January 1, 2008.  His entry
date under the prior document is deemed to be his Entry Date under this Plan.

 

An
Employee or former Employee who was an inactive participant under the RWE NUKEM
Corporation 401(k) Retirement Plan on December 31, 2007, shall become
an Inactive Participant under this Plan on January 1, 2008. Eligibility
for any benefits payable to the Participant or on his behalf and the amount of
the benefits shall be determined according to the provisions of the prior
document, unless otherwise stated in this document.

 

By striking the sixth
paragraph under subparagraph (a) of the EMPLOYER CONTRIBUTIONS SECTION of
Article III (as previously added by Amendment No. 2) and substituting
the following:

 

The
Plan provides for an automatic election to have Elective Deferral Contributions
made. The automatic Elective Deferral Contribution shall be Pre-tax Elective
Deferral Contributions and shall be 3% of Compensation. The automatic Elective
Deferral Contribution shall be automatically increased each January 1,
beginning January 1, 2009, by 1% up to a maximum automatic Elective
Deferral Contribution of 6%. The automatic increase shall apply to each
Participant not deferring at least 6% of Compensation. The Participant may
affirmatively elect a different percentage or elect not to make Elective
Deferral Contributions.

 

By adding the following as
subparagraph (d) of the EMPLOYER CONTRIBUTIONS SECTION of Article III:

 

(d)           Qualified Non-elective Contributions
may be made for each Plan Year in an amount determined by the Employer to be used
to reduce Excess Aggregate Contributions and Excess Contributions, as defined
in the EXCESS AMOUNTS SECTION of this article. If the Plan is treated as
separate plans because it is mandatorily disaggregated under the regulations of
Code Section 401(k), a separate Qualified Non-elective Contribution may be
determined for each separate plan.

 

Qualified
Non-elective Contributions are 100% vested and are distributable only in
accordance with the distribution provisions (other than for hardships)
applicable to Elective Deferral Contributions.

 

 

The
Plan provides for an automatic election to have Pre-tax Elective Deferral
Contributions made. Such automatic election shall apply when a Participant
first becomes eligible to make Elective Deferral Contributions (or again
becomes eligible after a period during which he was not an Active Participant).
The automatic election shall also apply to all Active Participants as of January 1,
2008, who have not elected to make Elective Deferral Contributions of at least
3%. The Participant shall be provided a notice that explains the automatic
election and his right to elect a different rate of Elective Deferral
Contributions or to elect not to make Elective Deferral Contributions. The
notice shall include the procedure for exercising that right and the timing for
implementing any such election. The Participant shall be given a reasonable
period thereafter to elect a different rate of Elective Deferral Contributions
or to elect not to make Elective Deferral Contributions.

 

By adding the following as
the fourth paragraph of the ALLOCATION SECTION of Article III:

 

The
discretionary Qualified Non-elective Contributions to be used to reduce excess
amounts, as described in the EMPLOYER CONTRIBUTIONS SECTION of this
article, shall be allocated as of the last day of the Plan Year only to
Non-highly Compensated Employees who meet the allocation requirements of this
section. Such Contributions (or separate Contributions) shall be allocated
first to the eligible person under the Plan (or separate plan) with the lowest
Annual Compensation for the Plan Year, then to the eligible person under the
Plan (or separate plan) with the next lowest Annual Compensation, and so forth,
in each case subject to the applicable limits of the CONTRIBUTION LIMITATION SECTION of
this article.  This amount shall be
credited to the person’s Account.

 

By striking the first
sentence from subparagraph (b) in the WHEN BENEFITS START SECTION of Article V
and substituting the following:

 

The
Participant’s Vested Account that results from Elective Deferral Contributions
and Qualified Non-elective Contributions may not be distributed earlier than
Severance from Employment (separation from service, for Plan Years beginning
before January 1, 2002), death, or disability.

 

By striking the first and
second paragraphs from the WITHDRAWAL BENEFITS SECTION of Article V
and substituting the following:

 

A
Participant may withdraw any part of his Vested Account resulting from Rollover
Contributions.  A Participant may make
such a withdrawal at any time.

 

A
Participant who has attained age 59 1/2 may withdraw any part of his Vested
Account resulting from the following Contributions:

 

Elective
Deferral Contributions

Matching
Contributions

Qualified
Non-elective Contributions

Discretionary
Contributions

 

A
Participant may make such a withdrawal at any time.

 

 

By striking the list of
contributions from the third paragraph of Article VIII TERMINATION OF THE
PLAN and substituting the following:

 

Elective
Deferral Contributions

Qualified
Non-elective Contributions

 

This amendment is made an
integral part of the aforesaid Plan and is controlling over the terms of said
Plan with respect to the particular items addressed expressly herein. All other
provisions of the Plan remain unchanged and controlling.

 

Unless otherwise stated on
any page of this amendment, eligibility for benefits and the amount of any
benefits payable to or on behalf of an individual who is an Inactive
Participant on the effective date(s) stated above, shall be determined according
to the provisions of the aforesaid Plan as in effect on the day before he
became an Inactive Participant.

 

Signing this amendment, the
Employer, as plan sponsor, has made the decision to adopt this plan amendment.
The Employer is acting in reliance on its own discretion and on the legal and
tax advice of its own advisors, and not that of any member of the Principal
Financial Group or any representative of a member company of the Principal
Financial Group.

 

 

	
   

  	
  ENERGYSOLUTIONS, LLC

  

 

 

AMENDMENT NO. 5

 

ENERGYSOLUTIONS,
LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives the Employer the right to
amend it at any time.  According to that
right, the Plan is amended effective February 1, 2008, as follows:

 

By striking items (a) through (e) from the
definition of Account in the DEFINITIONS SECTION of Article I (as
previously amended by Amendment No. 4) and substituting the following:

 

	
  (a)

  	
   

  	
  Pre-tax Elective Deferral Contributions

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Roth Elective Deferral Contributions

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Matching Contributions

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Qualified Non-elective Contributions

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Other Employer Contributions

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Rollover Contributions

  

 

By striking the final paragraph from the definition of
Elective Deferral Contributions in the DEFINITIONS SECTION of Article I
and substituting the following:

 

Elective Deferral
Contributions means Pre-tax Elective Deferral Contributions and Roth Elective
Deferral Contributions, unless the context clearly indicates only one is meant.

 

By adding the following definition to the DEFINITIONS SECTION of
Article I:

 

Roth Elective Deferral
Contributions means a Participant’s Elective Deferral Contributions that are
not excludible from the Participant’s gross income at the time deferred and
have been irrevocably designated as Roth Elective Deferral Contributions by the
Participant in his elective deferral agreement. 
Whether an Elective Deferral Contribution is not excludible from a
Participant’s gross income will be determined in accordance with section
1.401(k)-1(f)(2) of the regulations. 
In the case of a Self-employed Individual, an Elective Deferral
Contribution is not excludible from gross income only if the individual does
not claim a deduction for such amount.

 

By striking the 6th paragraph under subparagraph (a) from the
EMPLOYER CONTRIBUTIONS SECTION of Article III (as previously amended
by Amendment No. 4) and substituting the following:

 

A Participant may elect
to designate all or any portion of this future Elective Deferral Contributions
as Roth Elective Deferral Contributions.

 

The Plan provides for an
automatic election to have Elective Deferral Contributions made. The automatic
Elective Deferral Contribution shall be Pre-tax Elective Deferral Contributions
and shall be 3% of Compensation.  The
automatic Elective Deferral Contribution shall be automatically increased each January 1,
beginning January 1,

 

 

2008, by 1% up to a
maximum automatic Elective Deferral Contribution of 6%. The automatic increase
shall apply to each Participant not deferring at least 6% of Compensation.  The Participant may affirmatively elect a
different percentage or elect not to make Elective Deferral Contributions, and
may elect to designate all or any portion of his Elective Deferral
Contributions as Roth Elective Deferral Contributions.

 

Such automatic election
shall apply when a Participant first becomes eligible to make Elective Deferral
Contributions (or again becomes eligible after a period during which he was not
an Active Participant).  The Participant
shall be provided a notice that explains the automatic election and his right
to elect a different rate of Elective Deferral Contributions or to elect not to
make Elective Deferral Contributions, and his right to designate a portion of
his Elective Deferral Contributions as Roth Elective Deferral Contributions.  The notice shall include the procedure for
exercising that right and the timing for implementing any such election.  The Participant shall be given a reasonable
period thereafter to elect a different rate of Elective Deferral Contributions
or to elect not to make Elective Deferral Contributions, and to designate a
portion of his Elective Deferral Contributions as Roth Elective Deferral
Contributions.

 

Each Active Participant
affected by the automatic election and automatic increase shall be provided an
annual notice that explains the automatic election and his right to elect a
different rate of Elective Deferral Contributions or to elect not to make
Elective Deferral Contributions, and his right to designate all or any portion
of his Elective Deferral Contributions as Roth Elective Deferral
Contributions.  The notice shall include
the procedure for exercising those rights and the timing for implementing any
such elections.

 

By striking the 4th and 5th paragraphs following subparagraph (c) from
the EMPLOYER CONTRIBUTIONS SECTION of Article III (as previously
added by Amendment No. 2).

 

By striking the 1st,
2nd and 3rd paragraphs under subparagraph (a) from
the ROLLOVER CONTRIBUTIONS SECTION of Article III and substituting
the following:

 

The Contribution is a
Participant Rollover Contribution or a direct rollover of a distribution made
after December 31, 2001 from the types of plans specified below. A
Participant Rollover Contribution or a direct rollover of a distribution from a
designated Roth account applies only to distributions made in taxable years
beginning on or after January 1, 2006.

 

Direct Rollovers. The Plan will accept a direct rollover of an
Eligible Rollover Distribution from (i) a qualified plan described in Code
Section 401(a) or 403(a), including after-tax employee contributions
and any portion of a designated Roth account; (ii) an annuity contract
described in Code Section 403(b), including after-tax employee
contributions and any portion of a designated Roth account; and (iii) an
eligible plan under Code Section 457(b) 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.

 

Participant Rollover
Contributions from Other Plans. The Plan will accept a Participant contribution of
an Eligible Rollover Distribution from (i) a qualified plan described in
Code Section 401(a) or 403(a), including distributions of a
designated Roth account only to the extent such amount would otherwise be
includible in a Participant’s gross income;

 

 

(ii) an annuity
contract described in Code Section 403(b), including distributions of a
designated Roth account only to the extent such amount would otherwise be
includible in a Participant’s gross income; and (iii) an eligible plan
under Code Section 457(b) 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.

 

By striking the final paragraph from the ROLLOVER
CONTRIBUTIONS SECTION of Article III and substituting the following:

 

Rollover Contributions
made by an Eligible Employee or an Inactive Participant shall be credited to
his Account.  The part of the Participant’s
Account resulting from Rollover Contributions is 100% vested and
non-forfeitable at all times.  Separate
accounting records shall be maintained for those parts of his Rollover
Contributions consisting of (i) voluntary contributions which were
deducted from the Participant’s gross income for Federal income tax purposes
and (ii) after-tax employee contributions, including the portion that
would not have been includible in the Participant’s gross income if the
contributions were not rolled over into this Plan.

 

By adding the following as the 3rd paragraph under
subparagraph (b) in the EXCESS AMOUNTS SECTION of Article III:

 

For taxable years
beginning after December 31, 2005, distribution of Excess Elective
Deferrals shall be made on a pro rata basis from the Participant’s Account
resulting from Pre-tax Elective Deferral Contributions and Roth Elective
Deferral Contributions in the same proportion that such Contributions were made
for the applicable year.

 

By adding the following as the 2nd to last
paragraph under subparagraph (c) in the EXCESS AMOUNTS SECTION of Article III:

 

For taxable years
beginning after December 31, 2005, distribution of Excess Elective
Deferrals shall be made on a pro rata basis from the Participant’s Account
resulting from Pre-tax Elective Deferral Contributions and Roth Elective
Deferral Contributions in the same proportion that such Contributions were made
for the applicable year.

 

This amendment is made an integral part of the
aforesaid Plan and is controlling over the terms of said Plan with respect to
the particular items addressed expressly herein.  All other provisions of the Plan remain
unchanged and controlling.

 

Unless otherwise stated on any page of this
amendment, eligibility for benefits and the amount of any benefits payable to
or on behalf of an individual who is an Inactive Participant on the effective
date(s) stated above, shall be determined according to the provisions of
the aforesaid Plan as in effect on the day before he became an Inactive
Participant.

 

 

Signing this amendment, the Employer, as plan sponsor,
has made the decision to adopt this plan amendment.  The Employer is acting in reliance on its own
discretion and on the legal and tax advice of its own advisors, and not that of
any member of the Principal Financial Group or any representative of a member
company of the Principal Financial Group.

 

 

	
  ENERGYSOLUTIONS, LLC

  

 

 

AMENDMENT NO. 6

 

ENERGYSOLUTIONS, LLC 401(k) PROFIT SHARING PLAN

 

By adding the following
section to the end of Article IV:

 

The Plan named above gives
the Employer the right to amend it at any time. According to that right, the
Plan is amended effective April 1, 2008, as follows:

 

By adding the following to Article IV
of the TABLE OF CONTENTS:

 

Section 4.01A—Investment
in Qualifying Employer Securities

 

By adding the following to Article IX
of the TABLE OF CONTENTS:

 

Section 9.09—Voting
and Tender of Qualifying Employer Securities

 

By adding the following
definitions to the DEFINITIONS SECTION of Article I:

 

Qualifying Employer Securities means any
security which is issued by the Employer or any Controlled Group member and
which meets the requirements of Code Section 409(l) and ERISA Section 407(d)(5).
This shall also include any securities that satisfied the requirements of the
definition when these securities were assigned to the Plan.

 

Qualifying Employer Securities Fund means that part
of the assets of the Trust Fund that are designated to be held primarily or
exclusively in Qualifying Employer Securities for the purpose of providing
benefits for Participants.

 

SECTION 4.01A—INVESTMENT IN QUALIFYING EMPLOYER
SECURITIES.

 

All
or some portion of the Participant’s Account may be invested in Qualifying
Employer Securities. Once an investment in the Qualifying Employer Securities
Fund is made available to Participants, it shall continue to be available
unless the Plan is amended to disallow such available investment. In the
absence of an election to invest in Qualifying Employer Securities,
Participants shall be deemed to have elected to have their Accounts invested
wholly in other investment options of the Investment Fund. Once an election is
made, it shall be considered to continue until a new election is made.

 

For
purposes of determining the annual valuation of the Plan, and for reporting to
Participants and regulatory authorities, the assets of the Plan shall be valued
at least annually on the Valuation Date which corresponds to the last day of
the Plan Year.  The fair market value of
Qualifying Employer Securities shall be determined on such Valuation Date. The
prices of Qualifying Employer Securities as of the date of the transaction
shall apply for purposes of valuing distributions and other transactions of the
Plan to the extent such value is representative of the fair market value of
such securities in the opinion of the Plan Administrator. The value of a
Participant’s Account held in the Qualifying Employer Securities Fund may be
expressed in units.

 

 

If
the Qualifying Employer Securities are not publicly traded, or if an extremely
thin market exists for such securities so that reasonable valuation may not be
obtained from the market place, then such securities must be valued at least
annually by an independent appraiser who is not associated with the Employer,
the Plan Administrator, the Trustee, or any person related to any fiduciary
under the Plan. The independent appraiser may be associated with a person who
is merely a contract administrator with respect to the Plan, but who exercises
no discretionary authority and is not a plan fiduciary.

 

If
there is a public market for Qualifying Employer Securities of the type held by
the Plan, then the Plan Administrator may use as the value of the securities
the price at which such securities trade in such market. If the Qualifying
Employer Securities do not trade on the relevant date, or if the market is very
thin on such date, then the Plan Administrator may use for the valuation the
next preceding trading day on which the trading prices are representative of
the fair market value of such securities in the opinion of the Plan
Administrator.

 

Cash
dividends payable on the Qualifying Employer Securities shall be reinvested in
additional shares of such securities. In the event of any cash or stock
dividend or any stock split, such dividend or split shall be credited to the
Accounts based on the number of shares of Qualifying Employer Securities
credited to each Account as of the payable date of such dividend or split.

 

All
purchases of Qualifying Employer Securities shall be made at a price, or
prices, which, in the judgment of the Plan Administrator, do not exceed the
fair market value of such securities.

 

In
the event that the Trustee acquires Qualifying Employer Securities by purchase
from a “disqualified person” as defined in Code Section 4975(e)(2) or
from a “party-in-interest” as defined in ERISA Section 3(14), the terms of
such purchase shall contain the provision that in the event there is a final
determination by the Internal Revenue Service, the Department of Labor, or
court of competent jurisdiction that the fair market value of such securities
as of the date of purchase was less than the purchase price paid by the
Trustee, then the seller shall pay or transfer, as the case may be, to the
Trustee an amount of cash or shares of Qualifying Employer Securities equal in
value to the difference between the purchase price and such fair market value
for all such shares. In the event that cash or shares of Qualifying Employer
Securities are paid or transferred to the Trustee under this provision, such
securities shall be valued at their fair market value as of the date of such
purchase, and interest at a reasonable rate from the date of purchase to the
date of payment or transfer shall be paid by the seller on the amount of cash
paid.

 

The
Plan Administrator may direct the Trustee to sell, resell, or otherwise dispose
of Qualifying Employer Securities to any person, including the Employer,
provided that any such sales to any disqualified person or party-in-interest,
including the Employer, will be made at not less than the fair market value and
no commission will be charged. Any such sale shall be made in conformance with
ERISA Section 408(e).

 

The
Employer is responsible for compliance with any applicable Federal or state
securities law with respect to all aspects of the Plan. If the Qualifying
Employer Securities or interest in this Plan are required to be registered in
order to permit

 

 

investment
in the Qualifying Employer Securities Fund as provided in this section, then
such investment will not be effective until the later of the effective date of
the Plan or the date such registration or qualification is effective. The
Employer, at its own expense, will take or cause to be taken any and all such
actions as may be necessary or appropriate to effect such registration or
qualification. Further, if the Trustee is directed to dispose of any Qualifying
Employer Securities held under the Plan under circumstances which require
registration or qualification of the securities under applicable Federal or
state securities laws, then the Employer will, at its own expense, take or
cause to be taken any and all such action as may be necessary or appropriate to
effect such registration or qualification. The Employer is responsible for all
compliance requirements under Section 16 of the Securities Act.

 

By adding the following to
the third paragraph of the WITHDRAWAL BENEFITS SECTION of Article V:

 

The
portion of the Participant’s Account held in the Qualifying Employer Securities
Fund may be redeemed for purposes of a hardship withdrawal only after the
amount held in other investment options has been depleted.

 

By adding the following as
the third paragraph of the LOANS TO PARTICIPANTS SECTION of Article V:

 

The
portion of the Participant’s Account held in the Qualifying Employer Securities
Fund may be redeemed for purposes of a loan only after the amount held in other
investment options has been depleted.

 

By adding the following to
the end of the first paragraph under subparagraph (a) of the OPTIONAL
FORMS OF DISTRIBUTION SECTION of Article VI:

 

That
portion of a Participant’s Account that is held in the Qualifying Employer
Securities Fund may be distributed in kind.

 

By adding the following to
the end of Article IX:

 

SECTION 9.09—VOTING AND TENDER OF QUALIFYING EMPLOYER
SECURITIES.

 

Voting
rights with respect to Qualifying Employer Securities will be passed through to
Participants. Participants will be allowed to direct the voting rights of
Qualifying Employer Securities for any matter put to the vote of shareholders.
Before each meeting of shareholders, the Employer shall cause to be sent to
each person with power to control such voting rights a copy of any notice and
any other information provided to shareholders and, if applicable, a form for
instructing the Trustee how to vote at such meeting (or any adjournment
thereof) the number of full and fractional shares subject to such person’s
voting control.  The Trustee may
establish a deadline in advance of the meeting by which such forms must be
received in order to be effective.

 

Each
Participant shall be entitled to one vote for each share credited to his
Account.

 

If
some or all of the Participants have not directed or have not timely directed
the Trustee on how to vote, then the Trustee shall vote such Qualifying

 

 

Securities
in the same proportion as those shares of Qualifying Employer Securities for
which the Trustee has received proper direction for such matter.

 

Tender
rights or exchange offers for Qualifying Employer Securities will be passed
through to Participants. As soon as practicable after the commencement of a
tender or exchange offer for Qualifying Employer Securities, the Employer shall
cause each person with power to control the response to such tender or exchange
offer to be advised in writing the terms of the offer and, if applicable, to be
provided with a form for instructing the Trustee, or for revoking such instruction,
to tender or exchange shares of Qualifying Employer Securities, to the extent
permitted under the terms of such offer. In advising such persons of the terms
of the offer, the Employer may include statements from the board of directors
setting forth its position with respect to the offer.

 

If
some or all of the Participants have not directed or have not timely directed
the Trustee on how to tender, then the Trustee shall tender such Qualifying
Employer Securities in the same proportion as those shares of Qualifying
Employer Securities for which the Trustee has received proper direction for
such matter.

 

If
the tender or exchange offer is limited so that all of the shares that the
Trustee has been directed to tender or exchange cannot be sold or exchanged,
the shares that each Participant directed to be tendered or exchanged shall be
deemed to have been sold or exchanged in the same ratio that the number of
shares actually sold or exchanged bears to the total number of shares that the
Trustee was directed to tender or exchange.

 

The Trustee shall hold the Participant’s individual directions with
respect to  voting rights or tender
decisions in confidence and, except as required by law, shall  not divulge or release such
individual directions to anyone associated with the  Employer. The Employer may
require verification of the Trustee’s compliance with  the directions received from
Participants by any independent auditor selected by the  Employer, provided that such
auditor agrees to maintain the confidentiality of such  individual directions.

 

The Employer may develop procedures to facilitate the exercise of votes
or  tender rights, such as the
use of facsimile transmissions for the Participants located in  physically remote areas.  

 

This amendment is made an
integral part of the aforesaid Plan and is controlling over the terms of said
Plan with respect to the particular items addressed expressly herein. All other
provisions of the Plan remain unchanged and controlling.

 

Unless otherwise stated on
any page of this amendment, eligibility for benefits and the amount of any
benefits payable to or on behalf of an individual who is an Inactive
Participant on the effective date(s) stated above, shall be determined
according to the provisions of the aforesaid Plan as in effect on the day
before he became an Inactive Participant.

 

 

Signing this amendment, the
Employer, as plan sponsor, has made the decision to adopt this plan amendment.
The Employer is acting in reliance on its own discretion and on the legal and
tax advice of its own advisors, and not that of any member of the Principal
Financial Group or any representative of a member company of the Principal
Financial Group.

 

 

	
   

  	
  ENERGYSOLUTIONS, LLC

  

 

 

AMENDMENT NO. 7

 

ENERGYSOLUTIONS,
LLC 401(k) PROFIT SHARING PLAN

 

The Plan named above gives the Employer the right to
amend it at any time.  According to that
right, the Plan is amended effective June 25, 2008, as follows:

 

By striking the first two paragraphs from subparagraph
(a) in the ACTIVE PARTICIPANT SECTION of Article II (as
previously amended by Amendment No. 2) and substituting the following:

 

For purposes of Elective
Deferral Contributions, an Employee shall first become an Active Participant
(begin active participation in the Plan) on the earliest date on which he is an
Eligible Employee.  This date is his
Entry Date for purposes of Elective Deferral Contributions.

 

For purposes of
Contributions other than Elective Deferral Contributions, an Employee shall
first become an Active Participant (begin active participation in the Plan) on
the earliest date on which he is an Eligible Employee and has met the
eligibility requirement set forth below. 
This date is his Entry Date for purposes of Contributions other than Elective
Deferral Contributions.

 

(1) He has completed
one year of Eligibility Service before his Entry Date.

 

This amendment is made an integral part of the
aforesaid Plan and is controlling over the terms of said Plan with respect to
the particular items addressed expressly herein.  All other provisions of the Plan remain
unchanged and controlling.

 

Unless otherwise stated on any page of this
amendment, eligibility for benefits and the amount of any benefits payable to
or on behalf of an individual who is an Inactive Participant on the effective date(s) stated
above, shall be determined according to the provisions of the aforesaid Plan as
in effect on the day before he became an Inactive Participant.

 

Signing this amendment, the Employer, as plan sponsor,
has made the decision to adopt this plan amendment. The Employer is acting in
reliance on its own discretion and on the legal and tax advice of its own
advisors, and not that of any member of the Principal Financial Group or any
representative of a member company of the Principal Financial Group.

 

 

	
  ENERGYSOLUTIONS, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Amendment No. 7

  	
  (4-55237/8-3450)

  

 

 

Amendment No. 8

 

EnergySolutions, LLC 401(k) Profit
Sharing Plan

 

The Plan named above gives
the Employer the right to amend it at any time. According to that right, the
Plan is amended effective January 1, 2009, as follows:

 

By striking the definitions
of “Monthly Date” and “Quarterly Date” from the DEFINITIONS SECTION of Article I.

 

By striking the second
paragraph from subparagraph (a) of the EMPLOYER CONTRIBUTIONS SECTION of
Article III and substituting the following:

 

The elective deferral
agreement to start or modify Elective Deferral Contributions shall be effective
as soon as administratively feasible on or after the Participant’s Entry Date
(Reentry Date, if applicable) or any following date. The elective deferral
agreement must be entered into on or before the date it is effective.

 

This amendment is made an
integral part of the aforesaid Plan and is controlling over the terms of said
Plan with respect to the particular items addressed expressly herein. All other
provisions of the Plan remain unchanged and controlling.

 

Unless otherwise stated on
any page of this amendment, eligibility for benefits and the amount of any
benefits payable to or on behalf of an individual who is an Inactive
Participant on the effective date(s) stated above, shall be determined
according to the provisions of the aforesaid Plan as in effect on the day
before he became an Inactive Participant.

 

Signing this amendment, the
Employer, as plan sponsor, has made the decision to adopt this plan amendment.
The Employer is acting in reliance on its own discretion and on the legal and
tax advice of its own advisors, and not that of any member of the Principal
Financial Group or any representative of a member company of the Principal
Financial Group.

 

 

EnergySolutions, Inc.

 

 

Amendment No. 8 1 (4-55237 / 8-3450)

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