Document:

Bank of South Carolina Corporation - 10-K

Exhibit
10.6

 

THE
BANK OF SOUTH CAROLINA

EMPLOYEE STOCK OWNERSHIP PLAN

 

     

    	 

    

 

TABLE
OF CONTENTS

 

	ARTICLE I
	DEFINITIONS
	 	 	 
	ARTICLE II
	ADMINISTRATION
	 	 	 
	2.1	POWERS AND RESPONSIBILITIES OF THE EMPLOYER	15
	2.2	DESIGNATION OF ADMINISTRATIVE AUTHORITY	16
	2.3	ALLOCATION AND DELEGATION OF RESPONSIBILITIES	16
	2.4	POWERS AND DUTIES OF THE ADMINISTRATOR	17
	2.5	RECORDS AND REPORTS	18
	2.6	APPOINTMENT OF ADVISERS	18
	2.7	PAYMENT OF EXPENSES	18
	2.8	CLAIMS PROCEDURE	19
	2.9	CLAIMS REVIEW PROCEDURE	19
	 	 	 
	ARTICLE III
	ELIGIBILITY
	 	 	 
	3.1	CONDITIONS OF ELIGIBILITY	19
	3.2	EFFECTIVE DATE OF PARTICIPATION	20
	3.3	DETERMINATION OF ELIGIBILITY	20
	3.4	TERMINATION OF ELIGIBILITY	20
	3.5	REHIRED EMPLOYEES AND BREAKS IN SERVICE	20
	3.6	ELECTION NOT TO PARTICIPATE	22
	 	 	 
	ARTICLE IV
	CONTRIBUTION AND ALLOCATION
	 	 	 
	4.1	FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION	22
	4.2	TIME OF PAYMENT OF EMPLOYER CONTRIBUTION	22
	4.3	ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS	22
	4.4	MAXIMUM ANNUAL ADDITIONS	27
	4.5	DIRECTED INVESTMENT ACCOUNT	29
	4.6	QUALIFIED MILITARY SERVICE	30

 

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	ARTICLE V
	FUNDING AND INVESTMENT POLICY
	 	 	 
	5.1	INVESTMENT POLICY	30
	5.2	APPLICATION OF CASH	31
	5.3	TRANSACTIONS INVOLVING COMPANY STOCK	31
	5.4	LOANS TO THE TRUST	32
	 	 	 
	ARTICLE VI
	VALUATIONS
	 	 	 
	6.1	VALUATION OF THE TRUST FUND	34
	6.2	METHOD OF VALUATION	34
	 	 	 
	ARTICLE VII
	DETERMINATION AND DISTRIBUTION OF BENEFITS
	 	 	 
	7.1	DETERMINATION OF BENEFITS UPON RETIREMENT	34
	7.2	DETERMINATION OF BENEFITS UPON DEATH	35
	7.3	DETERMINATION OF BENEFITS IN EVENT OF DISABILITY	37
	7.4	DETERMINATION OF BENEFITS UPON TERMINATION	37
	7.5	DISTRIBUTION OF BENEFITS	39
	7.6	HOW PLAN BENEFIT WILL BE DISTRIBUTED	41
	7.7	REQUIRED MINIMUM DISTRIBUTIONS	42
	7.8	DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL	46
	7.9	LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN	47
	7.10	RIGHT OF FIRST REFUSALS	47
	7.11	STOCK CERTIFICATE LEGEND	48
	7.12	NONTERMINABLE PROTECTIONS AND RIGHTS	49
	7.13	QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION	49
	7.14	DIRECT ROLLOVER	49
	7.15	CORRECTIVE DISTRIBUTIONS	51
	 	 	 
	ARTICLE VIII
	TRUSTEE
	 	 	 
	8.1	BASIC RESPONSIBILITIES OF THE TRUSTEE	51
	8.2	INVESTMENT POWERS AND DUTIES OF THE TRUSTEE	52
	8.3	OTHER POWERS OF THE TRUSTEE	53
	8.4	VOTING COMPANY STOCK	56

 

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	8.5	DUTIES OF THE TRUSTEE REGARDING PAYMENTS	56
	8.6	TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES	56
	8.7	ANNUAL REPORT OF THE TRUSTEE	57
	8.8	AUDIT	57
	8.9	RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE	58
	8.10	TRANSFER OF INTEREST	59
	 	 	 
	ARTICLE IX
	AMENDMENT, TERMINATION AND MERGERS
	 	 	 
	9.1	AMENDMENT	59
	9.2	TERMINATION	60
	9.3	MERGER, CONSOLIDATION OR TRANSFER OF ASSETS	60
	 	 	 
	ARTICLE X
	TOP HEAVY
	 	 	 
	10.1	TOP HEAVY PLAN REQUIREMENTS	60
	10.2	DETERMINATION OF TOP HEAVY STATUS	61
	 	 	 
	ARTICLE XI
	MISCELLANEOUS
	 	 	 
	11.1	PARTICIPANT’S RIGHTS	64
	11.2	ALIENATION	64
	11.3	CONSTRUCTION OF PLAN	65
	11.4	GENDER AND NUMBER	65
	11.5	LEGAL ACTION	65
	11.6	PROHIBITION AGAINST DIVERSION OF FUNDS	65
	11.7	EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE	66
	11.8	INSURER’S PROTECTIVE CLAUSE	66
	11.9	RECEIPT AND RELEASE FOR PAYMENTS	66
	11.10	ACTION BY THE EMPLOYER	66
	11.11	NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY	67
	11.12	HEADINGS	67
	11.13	ELECTRONIC MEDIA	67
	11.14	PLAN CORRECTION	67
	11.15	APPROVAL BY INTERNAL REVENUE SERVICE	68

 

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	11.16	UNIFORMITY	68
	11.17	SECURITIES AND EXCHANGE COMMISSION APPROVAL	68

 

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THE
BANK OF SOUTH CAROLINA 

EMPLOYEE STOCK OWNERSHIP PLAN

 

THIS
AGREEMENT, hereby made and entered into this ________________ day of _____________________________, by
and between The Bank of South Carolina (herein referred to as the “Employer”) and Fleetwood S. Hassell, Douglas H. Sass,
Sheryl G. Sharry and Eugene H. Walpole, IV (herein referred to as the “Trustee”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Employer heretofore established an Employee Stock Ownership Plan effective January 1, 1989, (hereinafter called the “Effective
Date”) known as The Bank of South Carolina Employee Stock Ownership Plan (herein referred to as the “Plan”) in
recognition of the contribution made to its successful operation by its employees and for the exclusive benefit of its eligible
employees; and

 

WHEREAS,
under the terms of the Plan, the Employer has the ability to amend the Plan, provided the Trustee joins in such amendment if the
provisions of the Plan affecting the Trustee are amended; and

 

WHEREAS,
contributions to the Plan will be made by the Employer and such contributions made to the trust will be invested primarily in
the capital stock of the Employer;

 

NOW,
THEREFORE, effective January 1, 2017, except as otherwise provided, the Employer and the Trustee in accordance with the provisions
of the Plan pertaining to amendments thereof, hereby amend the Plan in its entirety and restate the Plan to provide as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1       “Act”
means the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

 

1.2       “Administrator”
means the Employer unless another person or entity has been designated by the Employer pursuant to Section 2.2 to administer the
Plan on behalf of the Employer.

 

1.3       “Affiliated
Employer” means any corporation which is a member of a controlled group of corporations (as defined in Code Section 414(b))
which includes the Employer; any trade or business (whether or not incorporated) which is under common control (as defined in
Code Section 414(c)) with the Employer; any organization (whether or not incorporated) which is a member of an affiliated service
group (as defined in Code Section 414(m)) which includes the Employer; and any other entity required to be aggregated with the
Employer pursuant to Regulations
under Code Section 414(o).

 

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1.4       “Aggregate
Account” means, with respect to each Participant, the value of all accounts maintained on behalf of a Participant, whether
attributable to Employer or Employee contributions, subject to the provisions of Section 10.2.

 

1.5       “Anniversary
Date” means the last day of the Plan Year.

 

1.6       “Beneficiary”
means the person (or entity) to whom the share of a deceased Participant’s interest in the Plan is payable.

 

1.7       “Code”
means the Internal Revenue Code of 1986, as amended or replaced from time to time.

 

1.8       “Company
Stock” means common stock issued by the Employer (or by a corporation which is a member of the controlled group of corporations
of which the Employer is a member) which is readily tradable on an established securities market. If there is no common stock
which meets the foregoing requirement, the term “Company Stock” means common stock issued by the Employer (or by a corporation
which is a member of the same controlled group) having a combination of voting power and dividend rights equal to or in excess
of: (A) that class of common stock of the Employer (or of any other such corporation) having the greatest voting power, and (B)
that class of common stock of the Employer (or of any other such corporation) having the greatest dividend rights. Noncallable
preferred stock shall be deemed to be “Company Stock” if such stock is convertible at any time into stock which constitutes
“Company Stock” hereunder and if such conversion is at a conversion price which (as of the date of the acquisition by
the Trust) is reasonable. For purposes of the preceding sentence, pursuant to Regulations, preferred stock shall be treated as
noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding
sentence.

 

1.9       “Company
Stock Account” means the account of a Participant which is credited with the shares of Company Stock purchased and paid for
by the Trust Fund or contributed to the Trust Fund.

 

A
separate accounting shall be maintained with respect to that portion of the Company Stock Account attributable to a Participant’s
or the Participant’s Beneficiary’s election pursuant to Section 7.5(c)(3) to reinvest cash dividends in Company Stock. Any such
Company Stock allocated to the Company Stock Account shall be fully Vested at all times and shall not be subject to Forfeiture
for any reason.

 

1.10       “Compensation”
means, with respect to any Participant and except as otherwise provided herein, such Participant’s wages as defined in Code Section
3401(a) and all other payments of compensation by the Employer (in the course of the Employer’s trade or business) for a Plan
Year (the “determination period”) for which the Employer is required to furnish the Participant a written statement
under Code Sections 6041(d), 6051(a)(3) and 6052 (Form W-2 wages). 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)).

 

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For
purposes of this Section, the determination of Compensation shall be made by:

 

(a)           including
amounts which are contributed by the Employer pursuant to a salary reduction agreement and which are not includible in the gross
income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee contributions
described in Code Section 414(h)(2) that are treated as Employer contributions. For this purpose, amounts not includible in gross
income under Code Section 125 shall be deemed to include any amounts not available to a Participant in cash in lieu of group health
coverage because the Participant is unable to certify that the Participant has other health coverage, provided the Employer does
not request or collect information regarding the Participant’s other health coverage as part of the enrollment process for
the health plan.

 

(b)           including
Military Differential Pay.

 

(c)           making
the following adjustments for amounts that are paid after the Participant’s severance from employment with the Employer.
Any other payment of compensation paid after severance of employment that is not described in the following types of compensation
is not Compensation.

 

(1)           Compensation
shall include regular pay after severance of employment if:

 

(i)            The
payment is regular compensation for services during the Participant’s regular working hours, or compensation for services
outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other
similar payments; and

 

(ii)           The
payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment
with the Employer, and

 

(iii)          The
payment is made by the later of 2 1/2 months after a Participant’s severance from employment with the Employer or the end
of the Limitation Year that includes the date of the Participant’s severance from employment with the Employer.

 

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(2)           Leave
cash-outs shall be included in Compensation if those amounts would have been included in the definition of Compensation if they
were paid prior to the Participant’s severance from employment with the Employer, and the amounts are for unused accrued
bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had
continued, and such payment is made by the later of 2 1/2 months after a Participant’s severance from employment with the
Employer or the end of the Limitation Year that includes the date of the Participant’s severance from employment with the
Employer.

 

Compensation in excess of $200,000 (or such other
amount provided in the Code) shall be disregarded. Such amount shall be adjusted for increases in the cost of living in accordance
with Code Section 401(a)(17)(B), except that the dollar increase in effect on January 1 of any calendar year shall be effective
for the Plan Year beginning with or within such calendar year. For any “determination period” of less than twelve
(12) months, the Compensation limit shall be an amount equal to the Compensation limit for the calendar year in which the “determination
period” begins multiplied by the ratio obtained by dividing the number of full months in the short “determination
period” by twelve (12). A “determination period” is not less than twelve (12) months solely because a Participant’s
Compensation does not include Compensation paid during a determination period while the Participant was not a Participant in the
Plan (or a component of the Plan).

 

If any Employees are excluded from the Plan (or from
any component of the Plan), then Compensation for any such Employees who become eligible or cease to be eligible to participate
in the Plan (or in the component of the Plan) during a Plan Year shall only include Compensation while such Employees are Eligible
Employees of the Plan (or of such component of the Plan).

 

If, in connection with the adoption of any amendment,
the definition of Compensation has been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan
Year which includes the adoption date of such amendment, Compensation means compensation determined pursuant to the terms of the
Plan then in effect.

 

1.11         “Contract”
or “Policy” means any life insurance policy, retirement income policy or annuity policy (group or individual) issued
pursuant to the terms of the Plan. In the event of any conflict between the terms of this Plan and the terms of any contract purchased
hereunder, the Plan provisions shall control.

 

1.12         “Current
Obligations” means Trust obligations arising from extension of credit to the Trust and payable in cash within (1) year from
the date an Employer contribution is due.

 

1.13         “Early
Retirement Date” means any Anniversary Date (prior to the Normal Retirement Date) coinciding with or following the date
on which a Participant or Former Participant attains age 55, and has completed at least 5 Years of Service with the Employer (Early
Retirement Age). A Participant shall become fully Vested upon satisfying this requirement if still employed at Early Retirement
Age.

 

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A Former Participant who separates from service after
satisfying any service requirement but before satisfying the age requirement for Early Retirement Age and who thereafter reaches
the age requirement contained herein shall be entitled to receive benefits under this Plan (other than any accelerated vesting
and allocations of Employer Contributions) as though the requirements for Early Retirement Age had been satisfied.

 

1.14         “Eligible
Employee” means any Employee, except as provided below. The following Employees shall not be eligible to participate in
this Plan:

 

(a)           Employees
of Affiliated Employers, unless such Affiliated Employers have specifically adopted this Plan in writing.

 

(b)           Individuals
who are not reported on the payroll records of the Employer as common law employees. In particular, it is expressly intended that
individuals who are not treated as common law employees by the Employer on its payroll records, or partners or other Self-Employed
Individuals who are treated as independent contractors, are not Eligible Employees and are excluded from Plan participation even
if a court or administrative agency determines that such individuals are common law employees and not independent contractors.

 

(c)           Employees
who are Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2).

 

(d)           Employees
whose employment is governed by the terms of a collective bargaining agreement between Employee representatives (within the meaning
of Code Section 7701(a)(46)) and the Employer under which retirement benefits were the subject of good faith bargaining between
the parties, unless such agreement expressly provides for coverage in this Plan.

 

(e)           Employees
who are nonresident aliens (within the meaning of Code Section 7701(b)(1)(B)) and who receive no earned income (within the meaning
of Code Section 911(d)(2)) from the Employer which constitutes income from sources within the United States (within the meaning
of Code Section 861(a)(3)).

 

1.15         “Employee”
means any person who is employed by the Employer or Affiliated Employer. Employee shall include Leased Employees within the meaning
of Code Sections 414(n)(2) and 414(o)(2) unless such Leased Employees are covered by a plan described in Code Section 414(n)(5)
and such Leased Employees do not constitute more than 20% of the recipient’s non-highly compensated work force.

 

1.16         “Employer”
means The Bank of South Carolina and any successor which shall maintain this Plan; and any predecessor which has maintained this
Plan. The Employer is a “C” corporation with principal offices in the State of South Carolina.

 

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1.17         “ESOP”
means an employee stock ownership plan that meets the requirements of Code Section 4975(e)(7) and Regulation 54.4975-11.

 

1.18        “Exempt Loan”
means a loan made to the Plan by a disqualified person or a loan to the Plan which is guaranteed by a disqualified person and
which satisfies the requirements of Section 5.4 hereof. Any Exempt Loan must be primarily for the benefit of the Plan Participants.

 

1.19         “Fiduciary”
means any person who (a) exercises any discretionary authority or discretionary control respecting management of the Plan or exercises
any authority or control respecting management or disposition of its assets, (b) renders investment advice for a fee or other
compensation, direct or indirect, with respect to any monies or other property of the Plan or has any authority or responsibility
to do so, or (c) has any discretionary authority or discretionary responsibility in the administration of the Plan.

 

1.20         “Fiscal
Year” means the Employer’s accounting year of 12 months commencing on January 1st of each year and ending the following
December 31st.

 

1.21         “Forfeiture”
means that portion of a Participant’s Account that is not Vested, and occurs on the earlier of:

 

(a)           the
distribution of the entire Vested portion of the Participant’s Account of a Former Participant who has severed employment
with the Employer. For purposes of this provision, if the Former Participant has a Vested benefit of zero, then such Former Participant
shall be deemed to have received a distribution of such Vested benefit as of the year in which the severance of employment occurs,
or

 

(b)           the
last day of the Plan Year in which a Former Participant who has severed employment with the Employer incurs five (5) consecutive
1-Year Breaks in Service.

 

Regardless of the preceding provisions, if a Former
Participant is eligible to share in the allocation of Employer contributions or Forfeitures in the year in which the Forfeiture
would otherwise occur, then the Forfeiture will not occur until the end of the first Plan Year for which the Former Participant
is not eligible to share in the allocation of Employer contributions or Forfeitures. Furthermore, the term “Forfeiture”
shall also include amounts deemed to be Forfeitures pursuant to any other provision of this Plan.

 

1.22       “Former
Participant” means a person who has been a Participant, but who has ceased to be a Participant for any reason.

 

1.23       ”415
Compensation” with respect to any Participant means such Participant’s wages as defined in Code Section 3401(a) and
all other payments of compensation by the Employer (in the course of the Employer’s trade or business) for a Plan Year for
which the Employer is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052,
plus amounts that would have been received and includible in taxable compensation but for an election under Code Section 125(a),
132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b), plus Military Differential Pay. “415 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)).

 

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Notwithstanding the above, the determination of 415 Compensation shall
be made by:

 

(a)           including
amounts not includible in gross income under Code Section 125 shall be deemed to include any amounts not available to a Participant
in cash in lieu of group health coverage because the Participant is unable to certify that the Participant has other health coverage,
provided the Employer does not request or collect information regarding the Participant’s other health coverage as part
of the enrollment process for the health plan.

 

(b)           making
the following adjustments for amounts that are paid after the Participant’s severance from employment with the Employer.
Any other payment of compensation paid after severance of employment that is not described in the following types of compensation
is not considered compensation within the meaning of Code Section 415(c)(3), even if payment is made within the time period specified
above.

 

(1)           415
Compensation shall include regular pay after severance of employment if:

 

(i)            The
payment is regular compensation for services during the Participant’s regular working hours, or compensation for services
outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other
similar payments; and

 

(ii)           The
payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment
with the Employer, and

 

(iii)          The
payment is made by the later of 2 1/2 months after a Participant’s severance from employment with the Employer or the end
of the Limitation Year that includes the date of the Participant’s severance from employment with the Employer.

 

(2)           Leave
cash-outs shall be included in 415 Compensation if those amounts would have been included in the definition of 415 Compensation
if they were paid prior to the Participant’s severance from employment with the Employer and the amounts are for unused
accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment
had continued, and such amounts are paid by the later of 2 1/2 months after a Participant’s severance from employment with
the Employer or the end of the Limitation Year that includes the date of the Participant’s severance from employment with
the Employer, and represents.

 

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1.24         “Highly Compensated
Employee” means an Employee described in Code Section 414(q) and the Regulations thereunder, and generally means any Employee
who:

 

(a)           was
a “five percent owner” as defined in Section 1.28(b) at any time during the “determination year” or the
“look-back year”; or

 

(b)           for
the “look-back year” had “415 Compensation” from the Employer in excess of $80,000 and were in the Top
Paid Group of Employees for the Plan 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.

 

The “determination year” means the Plan
Year for which testing is being performed, and the “look back year” means the immediately preceding twelve (12) month
period.

 

A highly compensated former Employee is based on
the rules applicable to determining Highly Compensated Employee status as in effect for the “determination year,”
in accordance with Regulation 1.414(q)-1T, A-4 and IRS Notice 97-45 (or any superseding guidance).

 

In determining who is a Highly Compensated Employee,
Employees who are non-resident aliens and who received no earned income (within the meaning of Code Section 911(d)(2)) from the
Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees.
If a Nonresident Alien Employee has U.S. source income, that Employee is treated as satisfying this definition if all of such
Employee’s U.S. source income from the Employer is exempt from U.S. income tax under an applicable income tax treaty. Additionally,
all Affiliated Employers shall be taken into account as a single employer and Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased Employees are covered by a plan described in Code Section
414(n)(5) and are not covered in any qualified plan maintained by the Employer. The exclusion of Leased Employees for this purpose
shall be applied on a uniform and consistent basis for all of the Employer’s retirement plans. Highly Compensated Former
Employees shall be treated as Highly Compensated Employees without regard to whether they performed services during the “determination
year.”

 

1.25         “Highly
Compensated Participant” means any Highly Compensated Employee who is eligible to participate in the component of the Plan
being tested.

 

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1.26         “Hour
of Service” means, for purposes of eligibility for participation, vesting and benefit accrual, (1) each hour for which an
Employee is directly or indirectly compensated or entitled to compensation by the Employer for the performance of duties (these
hours will be credited to the Employee for the computation period in which the duties are performed); (2) each hour for which
an Employee is directly or indirectly compensated or entitled to compensation by the Employer (irrespective of whether the employment
relationship has terminated) for reasons other than performance of duties (such as vacation, holidays, sickness, jury duty, disability,
lay-off, military duty or leave of absence) during the applicable computation period (these hours will be calculated and credited
pursuant to Department of Labor regulation 2530.200b-2 which is incorporated herein by reference); (3) each hour for which back
pay is awarded or agreed to by the Employer without regard to mitigation of damages (these hours will be credited to the Employee
for the computation period or periods to which the award or agreement pertains rather than the computation period in which the
award, agreement or payment is made). The same Hours of Service shall not be credited both under (1) or (2), as the case may be,
and under (3).

 

Notwithstanding (2) above, (i) no more than 501 Hours
of Service are required to be credited to an Employee on account of any single continuous period during which the Employee performs
no duties (whether or not such period occurs in a single computation period); (ii) an hour for which an Employee is directly or
indirectly paid, or entitled to payment, on account of a period during which no duties are performed is not required to be credited
to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable worker’s
compensation, or unemployment compensation or disability insurance laws; and (iii) Hours of Service are not required to be credited
for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee.

 

For purposes of (2) above, a payment shall be
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.

 

For purposes of this Section, Hours of Service will
be credited for employment with other Affiliated Employers. The provisions of Department of Labor regulations 2530.200b-2(b) and
(c) are incorporated herein by reference.

 

1.27         “Investment
Manager” means any Fiduciary described in Act Section 3(38).

 

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1.28         “Key
Employee” means an Employee as defined in Code Section 416(i) and the Regulations thereunder. Generally, any Employee or
former Employee (as well as each of the Employee’s or former Employee’s Beneficiaries) is considered a Key Employee
if the Employee’s or former Employee’s, at any time during the Plan Year that contains the “determination date”
(within the meaning of Section 10.2) has been included in one of the following categories:

 

(a)           an
officer of the Employer (as that term is defined within the meaning of the Regulations under Code Section 416) having annual “415
Compensation” greater than $130,000 (as adjusted under Code Section 416(i)(1)).

 

(b)          a
“five percent owner” of the Employer. “Five percent owner” means any person who owns (or is considered
as owning within the meaning of Code Section 318) more than five percent (5%) of the outstanding stock of the Employer or stock
possessing more than five percent (5%) of the total combined voting power of all stock of the Employer or, in the case of an unincorporated
business, any person who owns more than five percent (5%) of the capital or profits interest in the Employer.

 

(c)           a
“one percent owner” of the Employer having an annual “415 Compensation” from the Employer of more than
$150,000. “One percent owner” means any person who owns (or is considered as owning within the meaning of Code Section
318) more than one percent (1%) of the outstanding stock of the Employer or stock possessing more than one percent (1%) of the
total combined voting power of all stock of the Employer or, in the case of an unincorporated business, any person who owns more
than one percent (1%) of the capital or profits interest in the Employer.

 

For purposes of this Section, the determination of
“415 Compensation” shall be made by including amounts which are contributed by the Employer pursuant to a salary reduction
agreement and which are not includible in the gross income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B),
403(b) or 457(b), and Employee contributions described in Code Section 414(h)(2) that are treated as Employer contributions.

 

In determining percentage ownership hereunder, employers
that would otherwise be aggregated under Code Sections 414(b), (c), (m) and (o) shall be treated as separate employers. In determining
whether an individual has 415 Compensation of more than $150,000 or $130,000 as adjusted, 415 Compensation from each employer
required to be aggregated under Code Sections 414(b), (c), (m) and (o) shall be taken into account.

 

1.29         “Late
Retirement Date” means the Anniversary Date coinciding with or next following a Participant’s actual Retirement Date
after having reached Normal Retirement Date.

 

    10 

    	 

    

 

1.30         “Leased
Employee” means any person (other than an Employee of the recipient Employer) who pursuant to an agreement between the recipient
Employer and any other person or entity (“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 Employer. Contributions
or benefits provided a Leased Employee by the leasing organization which are attributable to services performed for the recipient
Employer shall be treated as provided by the recipient Employer. Furthermore, Compensation for a Leased Employee shall only include
Compensation from the leasing organization that is attributable to services performed for the recipient Employer. A Leased Employee
shall not be considered an Employee of the recipient Employer:

 

(a)           if
such employee is covered by a money purchase pension plan providing:

 

(1)           a
nonintegrated employer contribution rate of at least 10% of compensation, as defined in Code Section 415(c)(3); 

 

(2)           immediate
participation;

 

(3)           full
and immediate vesting; and

 

(b)           if
Leased Employees do not constitute more than 20% of the recipient Employer’s nonhighly compensated work force.

 

1.31         “Military
Differential Pay” means any differential wage payments made to an individual that represents an amount which, when added
to the individual’s military pay, approximates the amount of compensation that was paid to the individual while working
for the Employer. An individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), is treated as an
Employee of the Employer making the payment, and the differential wage payment is treated as 415 Compensation.

 

The Plan is not treated as failing to meet the
requirements of any provision described in Code Section 414(u)(1)(C) (or corresponding Plan provisions) by reason of any contribution
or benefit which is based on the differential wage payment. The preceding sentence applies only if all Employees of the Employer
performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage
payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement
plan maintained by the Employer, to make contributions based on the payments on reasonably equivalent terms (taking into account
Code Sections 410(b)(3), (4), and (5)).

 

1.32         “Non-Highly
Compensated Participant” means any Participant who is not a Highly Compensated Employee.

 

A Participant is a Non-Highly
Compensated Participant for a particular Plan Year if such Participant does not meet the definition of a Highly Compensated Employee
in effect for that Plan Year.

 

    11 

    	 

    

 

1.33         “Non-Key Employee”
means any Employee or former Employee (and such Employee’s or former Employee’s Beneficiaries) who is not a Key Employee.

 

1.34         “Normal
Retirement Age” means the Participant’s 65th birthday. A Participant shall become fully Vested in the Participant’s
Account upon attaining Normal Retirement Age (if the Participant is an Employee on or after such date).

 

1.35         “Normal
Retirement Date” means the Anniversary Date coinciding with or next following the Participant’s Normal Retirement
Age.

 

1.36         “1-Year
Break in Service” means, for purposes of eligibility for participation and vesting, the applicable computation period during
which an Employee has not completed more than 500 Hours of Service with the Employer. Further, solely for the purpose of determining
whether a Participant has incurred a 1-Year Break in Service, Hours of Service shall be recognized for “authorized leaves
of absence” and “maternity and paternity leaves of absence.” Years of Service and 1-Year Breaks in Service shall
be measured on the same computation period.

 

“Authorized leave of absence” means an
unpaid, temporary cessation from active employment with the Employer pursuant to an established nondiscriminatory policy, whether
occasioned by illness, military service, or any other reason.

 

A “maternity or paternity leave of
absence” means an absence from work for any period by reason of the Employee’s pregnancy, birth of the
Employee’s child, placement of a child with the Employee in connection with the adoption of such child, or any absence
for the purpose of caring for such child for a period immediately following such birth or placement. For this purpose, Hours
of Service shall be credited for the computation period in which the absence from work begins, only if credit therefore is
necessary to prevent the Employee from incurring a 1-Year Break in Service, or, in any other case, in the immediately
following computation period. The Hours of Service credited for a “maternity or paternity leave of absence” shall
be those which would normally have been credited but for such absence, or, in any case in which the Administrator is unable
to determine such hours normally credited, eight (8) Hours of Service per day. The total Hours of Service required to be
credited for a “maternity or paternity leave of absence” shall not exceed the number of Hours of Service needed
to prevent the Employee from incurring a 1-Year Break in Service.

 

1.37         “Other
Investments Account” means the account of a Participant which is credited with such Participant’s share of the net
gain (or loss) of the Plan, Forfeitures and Employer contributions in other than Company Stock and which is debited with payments
made to pay for Company Stock.

 

1.38         “Participant”
means any Eligible Employee who participates in the Plan and has not for any reason become ineligible to participate further in
the Plan.

 

    12 

    	 

    

 

1.39         “Participant’s
Account” means the account established and maintained by the Administrator for each Participant with respect to such Participant’s
total interest in the Plan and Trust resulting from the Employer contributions.

 

1.40         “Plan” means
this instrument, including all amendments thereto.

 

1.41         “Plan
Year” means the Plan’s accounting year of twelve (12) months commencing on January 1st of each year and ending the
following December 31st.

 

1.42         “Regulation”
means the Income Tax Regulations as promulgated by the Secretary of the Treasury or a delegate of the Secretary of the Treasury,
and as amended from time to time.

 

1.43         “Retired
Participant” means a person who has been a Participant, but who has become entitled to retirement benefits under the Plan.

 

1.44        “Retirement Date”
means the date as of which a Participant retires for reasons other than Total and Permanent Disability, whether such retirement
occurs on a Participant’s Normal Retirement Date, Early or Late Retirement Date (see Section 7.1).

 

1.45         “Terminated
Participant” means a person who has been a Participant, but whose employment has been terminated other than by death, Total
and Permanent Disability or retirement.

 

1.46         “Top
Heavy Plan” means a plan described in Section 10.2(a).

 

1.47         “Top Heavy Plan
Year” means a Plan Year during which the Plan is a Top Heavy Plan.

 

1.48         “Top-Paid
Group” means the top-paid group as determined pursuant to Code Section 414(q) and the Regulations thereunder and generally
means the top twenty percent (20%) of Employees who performed services for the Employer during the applicable year, ranked according
to the amount of “415 Compensation” received from the Employer during such year. All Affiliated Employers shall be
taken into account as a single employer, and Leased Employees shall be treated as Employees if required pursuant to Code Section
414(n) or (o). Employees who are non-resident aliens who received no earned income (within the meaning of Code Section 911(d)(2))
from the Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as
Employees. Furthermore, for the purpose of determining the number of Employees in any year, the following additional Employees
shall also be excluded, however, such Employees may still be considered for the purpose of identifying the particular Employees
in the Top-Paid Group:

 

(a)           Employees
with less than six (6) months of service;

 

(b)           Employees
who normally work less than 17 1/2 hours per week;

 

    13 

    	 

    

 

(c)           Employees
who normally work less than six (6) months during a year; and

 

(d)           Employees
who have not yet attained age twenty-one (21).

 

In addition, if 90 percent or more of the Employees
of the Employer are covered under agreements the Secretary of Labor finds to be collective bargaining agreements between Employee
representatives and the Employer, and the Plan covers only Employees who are not covered under such agreements, then Employees
covered by such agreements shall be excluded from both the total number of active Employees as well as from the identification
of particular Employees in the Top-Paid Group.

 

The foregoing exclusions set forth in this Section
shall be applied on a uniform and consistent basis for all purposes for which the Code Section 414(q) definition is applicable.
Furthermore, in applying such exclusions, the Employer may substitute any lesser service, hours or age.

 

1.49         “Total
and Permanent Disability” means a physical or mental condition of a Participant resulting from bodily injury, disease, or
mental disorder which renders such Participant incapable of continuing any gainful occupation and which condition constitutes
total disability under the federal Social Security Acts.

 

1.50         “Trustee”
means the person or entity named as trustee herein or in any separate trust forming a part of this Plan, and any successors.

 

1.51         “Trust
Fund” means the assets of the Plan and Trust as the same shall exist from time to time.

 

1.52         “Unallocated
Company Stock Suspense Account” means an account containing Company Stock acquired with the proceeds of an Exempt Loan and
which has not been released from such account and allocated to the Participants’ Company Stock Accounts.

 

1.53         “Valuation
Date” means the Anniversary Date and may include any other date or dates deemed necessary or appropriate by the Administrator
for the valuation of the Participant’s accounts during the Plan Year, which may include any day that the Trustee, any transfer
agent appointed by the Trustee or the Employer or any stock exchange used by such agent, are open for business.

 

1.54         “Vested”
means the nonforfeitable portion of any account maintained on behalf of a Participant.

 

1.55         “Year
of Service” means the computation period of twelve (12) consecutive months, herein set forth, during which an Employee has
at least 1000 Hours of Service.

 

    14 

    	 

    

 

For purposes of eligibility for participation, the
initial computation period shall begin with the date on which the Employee first performs an Hour of Service. The participation
computation period beginning after a 1-Year Break in Service shall be measured from the date on which an Employee again performs
an Hour of Service. The participation computation period shall shift to the Plan Year which includes the anniversary of the date
on which the Employee first performed an Hour of Service. If there is a shift to the Plan Year, then an Employee who is credited
with the required Hours of Service in both the initial computation period (or the computation period beginning after a 1-Year
Break in Service) and the Plan Year which includes the anniversary of the date on which the Employee first performed an Hour of
Service, shall be credited with two (2) Years of Service for purposes of eligibility to participate.

 

For vesting purposes, the computation periods shall
be the Plan Year, including periods prior to the Effective Date of the Plan.

 

The computation period shall be the Plan Year if
not otherwise set forth herein.

 

Notwithstanding the foregoing, for any short Plan Year, the determination of whether an Employee
has completed a Year of Service shall be made in accordance with Department of Labor regulation 2530.203-2(c). However, in determining
whether an Employee has completed a Year of Service for benefit accrual purposes in the short Plan Year, the number of the Hours
of Service required shall be proportionately reduced based on the number of full months in the short Plan Year.

 

Years of Service with any Affiliated Employer shall be recognized.

 

ARTICLE II

ADMINISTRATION

 

2.1           POWERS AND RESPONSIBILITIES
OF THE EMPLOYER

 

(a)           In
addition to the general powers and responsibilities otherwise provided for in this Plan, the Employer shall be empowered to
appoint and remove the Trustee and the Administrator from time to time as it deems necessary for the proper administration of
the Plan to ensure that the Plan is being operated for the exclusive benefit of the Participants and their Beneficiaries in
accordance with the terms of the Plan, the Code, and the Act. The Employer may appoint counsel, specialists, advisers, agents
(including any nonfiduciary agent) and other persons as the Employer deems necessary or desirable in connection with the
exercise of its fiduciary duties under this Plan. The Employer may compensate such agents or advisers from the assets of the
Plan as fiduciary expenses (but not including any business (settlor) expenses of the Employer), to the extent not paid by the
Employer.

 

(b)           The
Employer may, by written agreement or designation, appoint at its option an Investment Manager (qualified under the
Investment Company Act of 1940 as amended), investment adviser, or other agent to provide direction to the Trustee with
respect to any or all of the Plan assets. Such appointment shall be given by the Employer in writing in a form acceptable to
the Trustee and shall specifically identify the Plan assets with respect to which the Investment Manager or other agent shall
have authority to direct the investment.

 

    15 

    	 

    

 

(c)           The
Employer shall establish a “funding policy and method,” i.e., it shall determine whether the Plan has a short run
need for liquidity (e.g., to pay benefits) or whether liquidity is a long run goal and investment growth (and stability of same)
is a more current need, or shall appoint a qualified person to do so. The Employer or its delegate shall communicate such needs
and goals to the Trustee, who shall coordinate such Plan needs with its investment policy. The communication of such a “funding
policy and method” shall not, however, constitute a directive to the Trustee as to the investment of the Trust Funds. Such
“funding policy and method” shall be consistent with the objectives of this Plan and with the requirements of Title
I of the Act.

 

(d)           The
Employer shall periodically review the performance of any Fiduciary or other person to whom duties have been delegated or allocated
by it under the provisions of this Plan or pursuant to procedures established hereunder. This requirement may be satisfied by
formal periodic review by the Employer or by a qualified person specifically designated by the Employer, through day-to-day conduct
and evaluation, or through other appropriate ways.

 

(e)           The Employer will furnish Plan
Fiduciaries and Participants with notices and information statements when voting rights must be exercised pursuant to Section
8.4.

 

2.2           DESIGNATION OF ADMINISTRATIVE
AUTHORITY

 

The Employer shall be the Administrator. The Employer
may appoint any person, including, but not limited to, the Employees of the Employer, to perform the duties of the Administrator.
Any person so appointed shall signify acceptance by filing written acceptance with the Employer. Upon the resignation or removal
of any individual performing the duties of the Administrator, the Employer may designate a successor.

 

2.3           ALLOCATION AND DELEGATION
OF RESPONSIBILITIES

 

If more than one person is appointed as Administrator,
the responsibilities of each Administrator may be specified by the Employer and accepted in writing by each Administrator. In
the event that no such delegation is made by the Employer, the Administrators may allocate the responsibilities among themselves,
in which event the Administrators shall notify the Employer and the Trustee in writing of such action and specify the responsibilities
of each Administrator. The Trustee thereafter shall accept and rely upon any documents executed by the appropriate Administrator
until such time as the Employer or the Administrators file with the Trustee a written revocation of such designation.

 

    16 

    	 

    

 

2.4           POWERS AND DUTIES OF THE
ADMINISTRATOR

 

The primary responsibility of the Administrator is
to administer the Plan for the exclusive benefit of the Participants and their Beneficiaries, subject to the specific terms of
the Plan. The Administrator shall administer the Plan in accordance with its terms and shall have the power and discretion to
construe the terms of the Plan and to determine all questions arising in connection with the administration, interpretation, and
application of the Plan. Any such determination by the Administrator shall be conclusive and binding upon all persons. The Administrator
may establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such
extent as shall be deemed necessary or advisable to carry out the purpose of the Plan; provided, however, that any procedure,
discretionary act, interpretation or construction shall be done in a nondiscriminatory manner based upon uniform principles consistently
applied and shall be consistent with the intent that the Plan shall continue to be deemed a qualified plan under the terms of
Code Section 401(a), and shall comply with the terms of the Act and all regulations issued pursuant thereto. The Administrator
shall have all powers necessary or appropriate to accomplish the Administrator’s duties under the Plan.

 

The Administrator shall be charged with the duties
of the general administration of the Plan as set forth under the terms of the Plan, including, but not limited to, the following:

 

(a)           the
discretion to determine all questions relating to the eligibility of Employees to participate or remain a Participant hereunder
and to receive benefits under the Plan;

 

(b)           to
compute, certify, and direct the Trustee with respect to the amount and the kind of benefits to which any Participant shall be
entitled hereunder;

 

(c)           to
authorize and direct the Trustee with respect to all nondiscretionary or otherwise directed disbursements from the Trust;

 

(d)           to
maintain all necessary records for the administration of the Plan;

 

(e)           to interpret the provisions of the Plan and to make
and publish such rules for regulation of the Plan as are consistent with the terms hereof;

 

(f)            to
determine the size and type of any Contract to be purchased from any insurer, and to designate the insurer from which such Contract
shall be purchased;

 

(g)           to
compute and certify to the Employer and to the Trustee from time to time the sums of money necessary or desirable to be contributed
to the Plan;

 

    17 

    	 

    

 

(h)           to
consult with the Employer and the Trustee regarding the short and long-term liquidity needs of the Plan in order that the Trustee
can exercise any investment discretion in a manner designed to accomplish specific objectives;

 

(i)          
to establish and communicate to Participants a procedure for allowing each Participant to direct the Trustee as to the distribution
of such Participant’s Company Stock Account pursuant to Section 4.5;

 

(j)            to
establish and communicate to Participants a procedure and method to insure that each Participant will vote Company Stock allocated
to such Participant’s Company Stock Account pursuant to Section 8.4;

 

(k)           to
determine the validity of, and take appropriate action with respect to, any qualified domestic relations order received by it;
and

 

(l)            to
assist any Participant regarding the Participant’s rights, benefits, or elections available under the Plan.

 

2.5           RECORDS AND REPORTS

 

The Administrator shall keep a record of all actions
taken and shall keep all other books of account, records, policies, and other data that may be necessary for proper administration
of the Plan and shall be responsible for supplying all information and reports to the Internal Revenue Service, Department of
Labor, Participants, Beneficiaries and others as required by law.

 

2.6           APPOINTMENT OF ADVISERS

 

The Administrator, or the Trustee with the consent
of the Administrator, may appoint counsel, specialists, advisers, agents (including nonfiduciary agents) and other persons as
the Administrator or the Trustee deems necessary or desirable in connection with the administration of this Plan, including but
not limited to agents and advisers to assist with the administration and management of the Plan, and thereby to provide, among
such other duties as the Administrator may appoint, assistance with maintaining Plan records and the providing of investment information
to the Plan’s investment fiduciaries.

 

2.7           PAYMENT OF EXPENSES

 

All expenses of administration may be paid out of
the Trust Fund unless paid by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator,
or any person or persons retained or appointed by any Named Fiduciary incident to the exercise of their duties under the Plan,
including, but not limited to, fees of accountants, counsel, Investment Managers, and other specialists and their agents, the
costs of any bonds required pursuant to Act Section 412, and other costs of administering the Plan. Until paid, the expenses shall
constitute a liability of the Trust Fund.

 

    18 

    	 

    

 

2.8           CLAIMS PROCEDURE

 

Claims for benefits under the Plan may be filed
in writing with the Administrator. Written or electronic notice of the disposition of a claim shall be furnished to the
claimant within 90 days after the application is filed, or such period as is required by applicable law or Department of
Labor regulation. In the event the claim is denied, the reasons for the denial shall be specifically set forth in the notice
in language calculated to be understood by the claimant, pertinent provisions of the Plan shall be cited, and, where
appropriate, an explanation as to how the claimant can perfect the claim will be provided. In addition, the claimant shall be
furnished with an explanation of the Plan’s claims review procedure.

 

2.9           CLAIMS REVIEW PROCEDURE

 

Any Employee, former Employee, or Beneficiary of
either, who has been denied a benefit by a decision of the Administrator pursuant to Section 2.8 shall be entitled to request
the Administrator to give further consideration to a claim by filing with the Administrator a written request for a hearing. Such
request, together with a written statement of the reasons why the claimant believes the claim should be allowed, shall be filed
with the Administrator no later than 60 days after receipt of the written or electronic notification provided for in Section 2.8.
The Administrator shall then conduct a hearing within the next 60 days, at which the claimant may be represented by an attorney
or any other representative of such claimant’s choosing and expense and at which the claimant shall have an opportunity
to submit written and oral evidence and arguments in support of the claim. At the hearing the claimant or the claimant’s
representative shall have an opportunity to review all documents in the possession of the Administrator which are pertinent to
the claim at issue and its disallowance. Either the claimant or the Administrator may cause a court reporter to attend the hearing
and record the proceedings. In such event, a complete written transcript of the proceedings shall be furnished to both parties
by the court reporter. The full expense of any such court reporter and such transcripts shall be borne by the party causing the
court reporter to attend the hearing. A final decision as to the allowance of the claim shall be made by the Administrator within
60 days of receipt of the appeal (unless there has been an extension of 60 days due to special circumstances, provided the delay
and the special circumstances occasioning it are communicated to the claimant within the 60 day period). Such communication shall
be written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is based.

 

ARTICLE III

ELIGIBILITY

 

3.1           CONDITIONS OF ELIGIBILITY

 

Any Eligible Employee who has completed one (1) Year
of Service and has attained age 21 shall be eligible to participate hereunder as of the date such Employee has satisfied such
requirements. However, any Employee who was a Participant in the Plan prior to the effective date of this amendment and restatement
shall continue to participate in the Plan.

 

    19 

    	 

    

 

3.2           EFFECTIVE DATE OF PARTICIPATION

 

An Eligible Employee shall become a Participant effective
as of the first day of the Plan Year in which such Employee met the eligibility requirements of Section 3.1 if such eligibility
requirements were met during the first six months of that Plan Year, or, if such Employee met the eligibility requirements of
Section 3.1 during the last six months of a Plan Year, then the Employee shall become a Participant effective as of the first
day of the next succeeding Plan Year, provided said Employee was still employed as of such date (or if not employed on such date,
as of the date of rehire if a 1-Year Break in Service has not occurred or, if later, the date that the Employee would have otherwise
entered the Plan had the Employee not terminated employment).

 

If an Employee, who has satisfied the Plan’s
eligibility requirements and would otherwise have become a Participant, shall go from a classification of a noneligible Employee
to an Eligible Employee, such Employee shall become a Participant on the date such Employee becomes an Eligible Employee or, if
later, the date that the Employee would have otherwise entered the Plan had the Employee always been an Eligible Employee.

 

If an Employee, who has satisfied the
Plan’s eligibility requirements and would otherwise become a Participant, shall go from a classification of an Eligible
Employee to a noneligible class of Employees, such Employee shall become a Participant in the Plan on the date such Employee
again becomes an Eligible Employee, or, if later, the date that the Employee would have otherwise entered the Plan had the
Employee always been an Eligible Employee. However, if such Employee incurs a 1-Year Break in Service, eligibility will be
determined under the Break in Service rules set forth in Section 3.5.

 

3.3           DETERMINATION OF ELIGIBILITY

 

The Administrator shall determine the eligibility
of each Employee for participation in the Plan based upon information furnished by the Employer. Such determination shall be conclusive
and binding upon all persons, as long as the same is made pursuant to the Plan and the Act. Such determination shall be subject
to review pursuant to Section 2.9.

 

3.4           TERMINATION OF ELIGIBILITY

 

In the event a Participant shall go from a classification
of an Eligible Employee to an ineligible Employee, such Former Participant shall continue to vest in the Plan for each Year of
Service completed while a noneligible Employee, until such time as the Participant’s Account shall be forfeited or distributed
pursuant to the terms of the Plan. Additionally, the Former Participant’s interest in the Plan shall continue to share in
the earnings of the Trust Fund.

 

3.5           REHIRED EMPLOYEES AND
BREAKS IN SERVICE

 

(a)           If
any Participant becomes a Former Participant due to severance from employment with the Employer and is reemployed by the Employer
before a 1-Year Break in Service occurs, the Former Participant shall become a Participant as of the reemployment date.

 

    20 

    	 

    

 

(b)           If
any Employee becomes a former Employee due to severance from employment with the Employer and is reemployed after a 1-Year Break
in Service has occurred, Years of Service shall include Years of Service prior to the 1-Year Break in Service subject to the following
rules:

 

(1)           In
the case of a former Employee who under the Plan does not have a nonforfeitable right to any interest in the Plan resulting from
Employer contributions, Years of Service before a period of 1-Year Break in Service will not be taken into account if the number
of consecutive 1-Year Breaks in Service equal or exceed the greater of (A) five (5) or (B) the aggregate number of pre-break Years
of Service. Such aggregate number of Years of Service will not include any Years of Service disregarded under the preceding sentence
by reason of prior 1-Year Breaks in Service.

 

(2)           A
former Employee who has not had Years of Service before a 1-Year Break in Service disregarded pursuant to (1) above, shall participate
in the Plan as of the date of reemployment.

 

(c)           After
a Former Participant who has severed employment with the Employer incurs five (5) consecutive 1-Year Breaks in Service, the Vested
portion of said Former Participant’s Account attributable to pre-break service shall not be increased as a result of post-break
service. In such case, separate accounts will be maintained as follows:

 

(1)           one
account for nonforfeitable benefits attributable to pre-break service; and

 

(2)           one
account representing the Participant’s Employer derived account balance in the Plan attributable to post-break service.

 

(d)           If
any Participant becomes a Former Participant due to severance of employment with the Employer and is reemployed by the Employer
before five (5) consecutive 1-Year Breaks in Service, and such Former Participant had received a distribution of the entire Vested
interest prior to reemployment, then the forfeited account shall be reinstated only if the Former Participant repays the full
amount which had been distributed. Such repayment must be made before the earlier of five (5) years after the first date on which
the Participant is subsequently reemployed by the Employer or the close of the first period of five (5) consecutive 1-Year Breaks
in Service commencing after the distribution. If a distribution occurs for any reason other than a severance of employment, the
time for repayment may not end earlier than five (5) years after the date of distribution. In the event the Former Participant
does repay the full amount distributed, the undistributed forfeited portion of the Participant’s Account must be restored
in full, unadjusted by any gains or losses occurring subsequent to the Valuation Date preceding the distribution. The source for
such reinstatement may be Forfeitures occurring during the Plan Year. If such source is insufficient, then the Employer will contribute
an amount which is sufficient to restore any such forfeited Accounts provided, however, that if a discretionary contribution is
made for such year, such contribution shall first be applied to restore any such Accounts and the remainder shall be allocated
in accordance with Section 4.3.

 

    21 

    	 

    

  

If a non-Vested
Former Participant was deemed to have received a distribution and such Former Participant is reemployed by the Employer before
five (5) consecutive 1-Year Breaks in Service, then such Participant will be deemed to have repaid the deemed distribution as
of the date of reemployment.

 

3.6           ELECTION NOT TO PARTICIPATE

 

An Employee may, subject to the approval of the Employer,
elect voluntarily and irrevocably not to participate in the Plan. The election not to participate must be communicated to the
Employer, in writing, within a reasonable period of time before the beginning of the first Plan Year to which such waiver shall
apply.

 

ARTICLE IV

CONTRIBUTION AND ALLOCATION

 

4.1           FORMULA FOR DETERMINING
EMPLOYER CONTRIBUTION

 

(a)           For
each Plan Year, the Employer shall contribute to the Plan such amount as shall be determined by the Employer.

 

(b)           The
Employer contribution shall not be limited to years in which the Employer has current or accumulated net profit. Additionally,
to the extent necessary, the Employer shall contribute to the Plan the amount necessary to provide the top heavy minimum contribution.
All contributions by the Employer shall be made in cash or, if there is no prohibited transaction within the meaning of Labor
regulation 2509.94-3, in such property as is acceptable to the Trustee.

 

4.2           TIME OF PAYMENT OF EMPLOYER
CONTRIBUTION

 

The Employer may make its contribution to the Plan
for a particular Plan Year at such time as the Employer, in its sole discretion, determines. If the Employer makes a contribution
for a particular Plan Year after the close of that Plan Year, the Employer will designate to the Trustee the Plan Year for which
the Employer is making its contribution.

 

4.3           ALLOCATION OF CONTRIBUTION,
FORFEITURES AND EARNINGS

 

(a)           The
Administrator shall establish and maintain an account in the name of each Participant to which the Administrator shall credit
as of each Anniversary Date, or other Valuation Date, all amounts allocated to each such Participant as set forth herein.

 

    22 

    	 

    

 

(b)           The
Employer shall provide the Administrator with all information required by the Administrator to make a proper allocation of the
Employer contribution for each Plan Year. Within a reasonable period of time after the date of receipt by the Administrator of
such information, the Administrator shall allocate such contribution to each Participant’s Account in the same proportion
that each such Participant’s Compensation for the year bears to the total Compensation of all Participants for such year.

 

Only Participants
who have completed a Year of Service during the Plan Year and are actively employed on the last day of the Plan Year shall be
eligible to share in the discretionary contribution for the year.

 

(c)           The
Company Stock Account of each Participant shall be credited as of each Anniversary Date with Forfeitures of Company Stock and
the Participant’s allocable share of Company Stock (including fractional shares) purchased and paid for by the Plan or contributed
in kind by the Employer. Stock dividends on Company Stock held in the Participant’s Company Stock Account shall be credited
to the Participant’s Company Stock Account when paid to the Plan. Cash dividends on Company Stock held in the Participant’s
Company Stock Account shall, in the sole discretion of the Administrator, either be credited to the Participant’s Other
Investments Account when paid to the Plan or be used to repay an Exempt Loan; provided, however, that when cash dividends are
used to repay an Exempt Loan, Company Stock shall be released from the Unallocated Company Stock Suspense Account and allocated
to the Participant’s Company Stock Account pursuant to Section 4.3(e) and, provided further, that Company Stock allocated
to the Participant’s Company Stock Account shall have a fair market value not less than the amount of cash dividends which
would have been allocated to such Participant’s Other Investments Account for the year.

 

Company Stock
acquired by the Plan with the proceeds of an Exempt Loan shall only be allocated to each Participant’s Company Stock Account
upon release from the Unallocated Company Stock Suspense Account as provided in Section 4.3(e) herein. Company Stock acquired
with the proceeds of an Exempt Loan shall be an asset of the Trust Fund and maintained in the Unallocated Company Stock Suspense
Account.

 

(d)           Except
as provided above with respect to stock dividends on Company Stock, as of each Valuation Date, before allocation of Employer
contributions for the entire Plan Year and after allocation of Forfeitures, any earnings or losses (net appreciation or net
depreciation) of the Trust Fund shall be allocated in the same proportion that each Participant’s and Former
Participant’s nonsegregated accounts (other than each Participant’s Company Stock Account) bear to the total of
all Participants’ and Former Participants’ nonsegregated accounts (other than each Participant’s Company
Stock Account) as of such date.

 

    23 

    	 

    

 

Earnings or losses
do not include the interest paid under any installment contract for the purchase of Company Stock by the Trust Fund or on any
loan used by the Trust Fund to purchase Company Stock, nor does it include income received by the Trust Fund with respect to Company
Stock acquired with the proceeds of an Exempt Loan; all income received by the Trust Fund from Company Stock acquired with the
proceeds of an Exempt Loan may, at the discretion of the Administrator, be used to repay such loan.

 

(e)           All
Company Stock acquired by the Plan with the proceeds of an Exempt Loan must be added to and maintained in the Unallocated Company
Stock Suspense Account. Such Company Stock shall be released and withdrawn from that account as if all Company Stock in that account
were encumbered. For each Plan Year during the duration of the loan, the number of shares of Company Stock released shall equal
the number of encumbered shares held immediately before release for the current Plan Year multiplied by a fraction, the numerator
of which is the amount of principal paid for the Plan Year and the denominator of which is the sum of the numerator plus the principal
to be paid for all future Plan Years. As of each Anniversary Date, the Plan must consistently allocate to each Participant’s
Account, in the same manner as Employer discretionary contributions pursuant to Section 4.1(a) are allocated, non-monetary units
(shares and fractional shares of Company Stock) representing each Participant’s interest in Company Stock withdrawn from
the Unallocated Company Stock Suspense Account. However, Company Stock released from the Unallocated Company Stock Suspense Account
with cash dividends pursuant to Section 4.3(c) shall be allocated to each Participant’s Company Stock Account in the same
proportion that each such Participant’s number of shares of Company Stock sharing in such cash dividends bears to the total
number of shares of all Participants’ Company Stock sharing in such cash dividends. Income earned with respect to Company
Stock in the Unallocated Company Stock Suspense Account shall be used, at the discretion of the Administrator, to repay the Exempt
Loan used to purchase such Company Stock. Company Stock released from the Unallocated Company Stock Suspense Account with such
income, and any income which is not so used, shall be allocated as of each Anniversary Date in the same proportion that each Participant’s
and Former Participant’s nonsegregated accounts after the allocation of any earnings or losses pursuant to Section 4.3(d)
bear to the total of all Participants’ and Former Participants’ nonsegregated accounts after the allocation of any
earnings or losses pursuant to Section 4.3(d).

 

(f)            On
or before each Anniversary Date any amounts which became Forfeitures since the last Anniversary Date may be made available to
reinstate previously forfeited account balances of Former Participants, if any, in accordance with Section 3.5(d), be used to
satisfy any contribution that may be required pursuant to Section 7.9, or used to pay any administrative expenses of the Plan.
The remaining Forfeitures, if any, shall be allocated each year among the Participants’ Accounts of Participants otherwise
eligible to share in the allocation of discretionary contributions in the same proportion that each such Participant’s Compensation
for the year bears to the total Compensation of all such Participants for the year.

 

    24 

    	 

    

 

Provided, however,
that in the event the allocation of Forfeitures provided herein shall cause the “annual addition” (as defined in Section
4.4) to any Participant’s Account to exceed the amount allowable by the Code, the excess shall be reallocated to other Participants.

 

(g)           For
any Top Heavy Plan Year, Employees not otherwise eligible to share in the allocation of contributions and Forfeitures as provided
above, shall receive the minimum allocation provided for in Section 4.3(i) if eligible pursuant to the provisions of Section 4.3(k).

 

(h)           Notwithstanding
the foregoing, Participants who are not actively employed on the last day of the Plan Year due to Retirement (Early, Normal or
Late), Total and Permanent Disability or death shall share in the allocation of contributions and Forfeitures for that Plan Year.

 

(i)            Minimum
Allocations Required for Top Heavy Plan Years: Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum of the Employer
contributions and Forfeitures allocated to the Participant’s Account of each Employee shall be equal to at least three percent
(3%) of such Employee’s “415 Compensation” (reduced by contributions and forfeitures, if any, allocated to each
Employee in any defined contribution plan included with this Plan in a Required Aggregation Group). However, if (1) the sum of
the Employer contributions and Forfeitures allocated to the Participant’s Account of each Key Employee for such Top Heavy
Plan Year is less than three percent (3%) of each Key Employee’s “415 Compensation” and (2) this Plan is not
required to be included in an Aggregation Group to enable a defined benefit plan to meet the requirements of Code Section 401(a)(4)
or 410, then the sum of the Employer contributions and Forfeitures allocated to the Participant’s Account of each Employee
shall be equal to the largest percentage allocated to the Participant’s Account of any Key Employee.

 

However, no such
minimum allocation shall be required in this Plan for any Employee who participates in another defined contribution plan subject
to Code Section 412 included with this Plan in a Required Aggregation Group where the other plan provides the minimum allocation.

 

(j)            For
purposes of the minimum allocations set forth above, the percentage allocated to the Participant’s Account of any Key Employee
shall be equal to the ratio of the sum of the Employer contributions and Forfeitures allocated on behalf of such Key Employee
divided by the “415 Compensation” for such Key Employee.

 

    25 

    	 

    

 

(k)           For
any Top Heavy Plan Year, the minimum allocations set forth above shall be allocated to the Participant’s Account of all
Employees who are Participants and who are employed by the Employer on the last day of the Plan Year, including Employees who
have (1) failed to complete a Year of Service; (2) failed to receive an allocation of Employer contributions merely because the
Participant’s Compensation was less than a stated amount, or (3) declined to make mandatory contributions (if required)
to the Plan.

 

(l)            For
the purposes of this Section, “415 Compensation” in excess of $150,000 (or such other amount provided in the Code)
shall be disregarded. Such amount shall be adjusted for increases in the cost of living in accordance with Code Section 401(a)(17)(B),
except that the dollar increase in effect on January 1 of any calendar year shall be effective for the Plan Year beginning with
or within such calendar year. If “415 Compensation” for any prior determination period is taken into account in determining
a Participant’s minimum benefit for the current Plan Year, the “415 Compensation” for such determination period
is subject to the applicable annual “415 Compensation” limit in effect for that prior period. For this purpose, in
determining the minimum benefit in Plan Years beginning on or after January 1, 1989, the annual “415 Compensation”
limit in effect for determination periods beginning before that date is $200,000 (or such other amount as adjusted for increases
in the cost of living in accordance with Code Section 415(d) for determination periods beginning on or after January 1, 1989,
and in accordance with Code Section 401(a)(17)(B) for determination periods beginning on or after January 1, 1994). For determination
periods beginning prior to January 1, 1989, the $200,000 limit shall apply only for Top Heavy Plan Years and shall not be adjusted.
For any short Plan Year the “415 Compensation” limit shall be an amount equal to the “415 Compensation”
limit for the calendar year in which the Plan Year begins multiplied by the ratio obtained by dividing the number of full months
in the short Plan Year by twelve (12).

 

(m)          Notwithstanding
anything in this Section to the contrary, all information necessary to properly reflect a given transaction may not be available
until after the date specified herein for processing such transaction, in which case the transaction will be reflected when such
information is received and processed. Subject to express limits that may be imposed under the Code, the processing of any contribution,
distribution or other transaction may be delayed for any legitimate business reason (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 the correction for errors or omissions or the errors or omissions of any service provider).
The processing date of a transaction will be binding for all purposes of the Plan.

 

    26 

    	 

    

 

4.4          MAXIMUM ANNUAL ADDITIONS

 

(a)          Notwithstanding
the foregoing, the maximum “annual additions” credited to a Participant’s accounts for any
“limitation year” shall equal the lesser of: (1) $40,000 adjusted annually as provided in Code Section 415(d)
pursuant to the Regulations, or (2) one-hundred percent (100%) of the Participant’s “415 Compensation” for
such “limitation year.” If the Employer contribution that would otherwise be contributed or allocated to the
Participant’s accounts would cause the “annual additions” for the “limitation year” to exceed
the maximum “annual additions,” the amount contributed or allocated will be reduced so that the “annual
additions” for the “limitation year” will equal the maximum “annual additions,” and any amount
in excess of the maximum “annual additions,” which would have been allocated to such Participant may be allocated
to other Participants. For any short “limitation year,” the dollar limitation in (1) above shall be reduced by a
fraction, the numerator of which is the number of full months in the short “limitation year” and the denominator
of which is twelve (12).

 

(b)          For
purposes of applying the limitations of Code Section 415, “annual additions” means the sum credited to a
Participant’s accounts for any “limitation year” of (1) Employer contributions, (2) Employee contributions,
(3) forfeitures, (4) amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code Section
415(l)(2) which is part of a pension or annuity plan maintained by the Employer, (5) amounts derived from contributions paid
or accrued after December 31, 1985, in taxable years ending after such date, 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 plan (as defined in Code Section 419(e)) maintained by the Employer and (6) allocations under a simplified employee
pension plan. Except, however, the “415 Compensation” percentage limitation referred to in paragraph (a)(2) above
shall not apply to: (1) any contribution for medical benefits after separation from service (within the meaning of Code
Sections 401(h) or 419A(f)(2)) which is otherwise treated as an “annual addition,” or (2) any amount otherwise
treated as an “annual addition” under Code Section 415(l)(1).

 

If an Exempt Loan has been made to the Plan,
then the amount of an Employer contribution that is considered to be an “annual addition” is calculated, except as
provided herein, with respect to Employer contributions of both principal and interest used to repay the Exempt Loan for the “limitation
year.” In lieu of the preceding, the fair market value of the shares released from the Unallocated Company Stock Suspense
Account on account of the Exempt Loan repayment and allocated to Participants’ Company Stock Accounts shall be used to calculate
“annual additions” if such fair market value is less than the amount of Employer contribution of both principal and
interest used to repay the Exempt Loan for the “limitation year.”

 

    27

     

    

 

(c)           For
purposes of applying the limitations of Code Section 415, the following are not “annual additions”: (1) the
transfer of funds from one qualified plan to another and (2) provided no more than one-third of the Employer contributions
for the year are allocated to Highly Compensated Participants, Forfeitures of Company Stock purchased with the proceeds of an
Exempt Loan and Employer contributions applied to the payment of interest on an Exempt Loan. In addition, the following are
not Employee contributions for the purposes of Section 4.4(b): (1) rollover contributions (as defined in Code Sections
402(c), 403(a)(4), 403(b)(8), 408(d)(3) and 457(e)(16)); (2) repayments of loans made to a Participant from the Plan; (3)
repayments of distributions received by an Employee pursuant to Code Section 411(a)(7)(B) (cash-outs); (4) repayments of
distributions received by an Employee pursuant to Code Section 411(a)(3)(D) (mandatory contributions); and (5) Employee
contributions to a simplified employee pension excludable from gross income under Code Section 408(k)(6).

 

(d)           For
purposes of applying the limitations of Code Section 415, the “limitation year” shall be the Plan Year.

 

(e)           For
the purpose of this Section, all qualified defined contribution plans (whether terminated or not) ever maintained by the Employer
shall be treated as one defined contribution plan.

 

(f)            For the purpose of this Section,
if the Employer is a member of a controlled group of corporations, trades or businesses under common control (as defined by Code
Section 1563(a) or Code Section 414(b) and (c) as modified by Code Section 415(h)), is a member of an affiliated service group
(as defined by Code Section 414(m)), or is a member of a group of entities required to be aggregated pursuant to Regulations under
Code Section 414(o), all Employees of such Employers shall be considered to be employed by a single Employer.

 

(g)           If
this is a plan described in Code Section 413(c) (other than a plan described in Code Section 414(f)), then all of the
benefits or contributions attributable to a Participant from all of the Employers maintaining this Plan shall be taken into
account in applying the limits of this Section with respect to such Participant. Furthermore, in applying the limitations of
this Section with respect to such a Participant, the total “415 Compensation” received by the Participant from
all of the Employers maintaining the Plan shall be taken into account.

 

(h)(1)      If a Participant participates in more than
one defined contribution plan maintained by the Employer which have different Anniversary Dates, the maximum “annual additions”
under this Plan shall equal the maximum “annual additions” for the “limitation year” minus any “annual
additions” previously credited to such Participant’s accounts during the “limitation year.”

 

    28

     

    

 

(2)           If
a Participant participates in both a defined contribution plan subject to Code Section 412 and a defined contribution plan
not subject to Code Section 412 maintained by the Employer which have the same Anniversary Date, “annual
additions” will be credited to the Participant’s accounts under the defined contribution plan subject to Code
Section 412 prior to crediting “annual additions” to the Participant’s accounts under the defined
contribution plan not subject to Code Section 412.

 

(3)           If
a Participant participates in more than one defined contribution plan not subject to Code Section 412 maintained by the Employer
which have the same Anniversary Date, the maximum “annual additions” under this Plan shall equal the product of (A)
the maximum “annual additions” for the “limitation year” minus any “annual additions” previously
credited under subparagraphs (1) or (2) above, multiplied by (B) a fraction (i) the numerator of which is the “annual additions”
which would be credited to such Participant’s accounts under this Plan without regard to the limitations of Code Section
415 and (ii) the denominator of which is such “annual additions” for all plans described in this subparagraph.

 

(i)            Notwithstanding
anything contained in this Section to the contrary, the limitations, adjustments and other requirements 
 prescribed in
this Section shall at all times comply with the provisions of Code Section 415 and the Regulations thereunder.

 

4.5          DIRECTED INVESTMENT ACCOUNT

 

(a)           Each
“Qualified Participant” may elect within ninety (90) days after the close of each Plan Year during the
“Qualified Election Period” to direct the Trustee in writing as to the distribution in cash and/or Company Stock
of 25 percent of the total number of shares of Company Stock acquired by or contributed to the Plan that have ever been
allocated to such “Qualified Participant’s” Company Stock Account (reduced by the number of shares of
Company Stock previously distributed in cash and/or Company Stock pursuant to a prior election). In the case of the election
year in which the last election can be made by the Participant, the preceding sentence shall be applied by substituting
“50 percent” for “25 percent.” If the “Qualified Participant” elects to direct the
Trustee as to the distribution of the Participant’s Company Stock Account, such direction shall be effective no later
than ninety (90) days after the close of the Plan Year to which such direction applies.

 

Notwithstanding the above,
if the fair market value (determined pursuant to Section 6.1 at the Plan Valuation Date immediately preceding the first day
on which a “Qualified Participant” is eligible to make an election) of Company Stock acquired by or contributed
to the Plan and allocated to a “Qualified Participant’s” Company Stock Account is $500 or less, then such
Company Stock shall not be subject to this paragraph. For purposes of determining whether the fair market value exceeds $500,
Company Stock held in accounts of all employee stock ownership plans (as defined in Code Section 4975(e)(7)) and tax credit
employee stock ownership plans (as defined in Code Section 409(a)) maintained by the Employer or any Affiliated Employer
shall be considered as held by the Plan.

 

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(b)           For
the purposes of this Section the following definitions shall apply:

 

(1)           “Qualified
Participant” means any Employee who has completed ten (10) Years of Service as a Participant and has attained age 55.

 

(2)           “Qualified
Election Period” means the six (6) Plan Year period beginning with the later of (i) the first Plan Year in which the Participant
first became a “Qualified Participant,” or (ii) the first Plan Year beginning after December 31, 1986.

 

4.6          QUALIFIED MILITARY SERVICE

 

Notwithstanding any provision of this Plan to the
contrary, contributions, benefits and service will be provided in accordance with Code Section 414(u).

 

ARTICLE V

FUNDING AND INVESTMENT POLICY

 

5.1          INVESTMENT POLICY

 

(a)           The
Plan is designed to invest primarily in Company Stock.

 

(b)           With
due regard to subparagraph (a) above, the Administrator may also direct the Trustee to invest funds under the Plan in other
property described in the Trust or in life insurance policies to the extent permitted by subparagraph (c) below, or the
Trustee may hold such funds in cash or cash equivalents.

 

(c)           With
due regard to subparagraph (a) above, the Administrator may also direct the Trustee to invest funds under the Plan not
attributable to proceeds from an Exempt Loan in insurance policies on the life of any “keyman” Employee. The
proceeds of a “keyman” insurance policy may not be used for the repayment of any indebtedness owed by the Plan
which is secured by Company Stock. In the event any “keyman” insurance is purchased by the Trustee, the premiums
paid thereon during any Plan Year, net of any policy dividends and increases in cash surrender values, shall be treated as
the cost of Plan investment and any death benefit or cash surrender value received shall be treated as proceeds from an
investment of the Plan.

 

    30

     

    

 

(d)           The
Plan may not obligate itself to acquire Company Stock from a particular holder thereof at an indefinite time determined upon the
happening of an event such as the death of the holder.

 

(e)           The
Plan may not obligate itself to acquire Company Stock under a put option binding upon the Plan. However, at the time a put option
is exercised, the Plan may be given an option to assume the rights and obligations of the Employer under a put option binding
upon the Employer.

 

(f)            All
purchases of Company Stock shall be made at a price which, in the judgment of the Administrator, does not exceed the fair market
value thereof. All sales of Company Stock shall be made at a price which, in the judgment of the Administrator, is not less than
the fair market value thereof. The valuation rules set forth in Article VI shall be applicable.

 

5.2          APPLICATION OF CASH

 

Employer contributions in cash, and any earnings
on such contributions, shall first be applied to pay any Current Obligations of the Trust Fund.

 

5.3          TRANSACTIONS INVOLVING
COMPANY STOCK

 

(a)           No
portion of the Trust Fund attributable to (or allocable in lieu of) Company Stock acquired by the Plan in a sale to which
Code Section 1042 applies may accrue or be allocated directly or indirectly under any plan maintained by the Employer meeting
the requirements of Code Section 401(a):

 

(1)           during
the “Nonallocation Period,” for the benefit of

 

(i)          any
taxpayer who makes an election under Code Section 1042(a) with respect to Company Stock,

 

(ii)         any
individual who is related to the taxpayer (within the meaning of Code Section 267(b)), or

 

(2)           for
the benefit of any other person who owns (after application of Code Section 318(a) applied without regard to the employee trust
exception in Code Section 318(a)(2)(B)(i)) more than 25 percent of

 

(i)          any
class of outstanding stock of the Employer or Affiliated Employer which issued such Company Stock, or

 

(ii)         the
total value of any class of outstanding stock of the Employer or Affiliated Employer.

 

    31

     

    

 

(b)           Except,
however, subparagraph (a)(1)(ii) above shall not apply to lineal descendants of the taxpayer, provided that the aggregate amount
allocated to the benefit of all such lineal descendants during the “Nonallocation Period” does not exceed more than
five (5) percent of the Company Stock (or amounts allocated in lieu thereof) held by the Plan which are attributable to a sale
to the Plan by any person related to such descendants (within the meaning of Code Section 267(c)(4)) in a transaction to which
Code Section 1042 is applied.

 

(c)           A
person shall be treated as failing to meet the stock ownership limitation under paragraph (a)(2) above if such person fails such
limitation:

 

(1)           at
any time during the one (1) year period ending on the date of sale of Company Stock to the Plan, or

 

(2)           on
the date as of which Company Stock is allocated to Participants in the Plan.

 

(d)           For
purposes of this Section, “Nonallocation Period” means the period beginning on the date of the sale of the Company
Stock and ending on the later of:

 

(1)           the
date which is ten (10) years after the date of sale, or

 

(2)           the
date of the Plan allocation attributable to the final payment of the Exempt Loan incurred in connection with such sale.

 

5.4          LOANS TO THE TRUST

 

(a)           The
Plan may borrow money for any lawful purpose, provided the proceeds of an Exempt Loan are used within a reasonable time after
receipt only for any or all of the following purposes:

 

(1)           To acquire Company Stock.

 

(2)           To
repay such loan.

 

(3)           To
repay a prior Exempt Loan.

 

(b)           All
loans to the Trust which are made or guaranteed by a disqualified person must satisfy all requirements applicable to Exempt Loans
including but not limited to the following:

 

(1)           The
loan must be at a reasonable rate of interest;

 

(2)           The
interest rate and price of the stock to be acquired with loan proceeds should not be such that the Plan assets may be drained
off;

 

    32

     

    

 

(3)           The
amount of interest paid shall not exceed the amount of each payment which would be treated as interest under standard loan amortization
tables;

 

(4)           Any
collateral pledged to the creditor by the Plan shall consist only of the Company Stock purchased with the borrowed funds;

 

(5)           Under
the terms of the loan, any pledge of Company Stock shall provide for the release of shares so pledged on a pro-rata basis pursuant
to Section 4.3(e);

 

(6)           Under
the terms of the loan, the creditor shall have no recourse against the Plan except with respect to such collateral, earnings attributable
to such collateral, Employer contributions (other than contributions of Company Stock) that are made to meet Current Obligations
and earnings attributable to such contributions;

 

(7)           The
loan must be for a specific term and may not be payable at the demand of any person, except in the case of default;

 

(8)           The
term of the loan (including the sum of the expired duration of the loan, any renewal period, any extension period, and the duration
of any new loan) shall not exceed ten (10) years;

 

(9)           The
loan must provide for annual payments of principal and interest at a cumulative rate that is not less rapid at any time than level
annual payments of such amounts for ten (10) years;

 

(10)         In
the event of default upon an Exempt Loan, the value of the Trust Fund transferred in satisfaction of the Exempt Loan shall not
exceed the amount of default. If the lender is a disqualified person, an Exempt Loan shall provide for a transfer of Trust Funds
upon default only upon and to the extent of the failure of the Plan to meet the payment schedule of the Exempt Loan;

 

(11)         Exempt
Loan payments during a Plan Year must not exceed an amount equal to: (A) the sum, over all Plan Years, of all contributions and
cash dividends paid by the Employer to the Plan with respect to such Exempt Loan and earnings on such Employer contributions and
cash dividends, less (B) the sum of the Exempt Loan payments in all preceding Plan Years. A separate accounting shall be maintained
for such Employer contributions, cash dividends and earnings until the Exempt Loan is repaid.

 

    33

     

    

 

(c)           For
purposes of this Section, the term “disqualified person” means a person who is a Fiduciary, a person providing
services to the Plan, an Employer any of whose Employees are covered by the Plan, an employee organization any of whose
members are covered by the Plan, an owner, direct or indirect, of 50% or more of the total combined voting power of all
classes of voting stock or of the total value of all classes of the stock, or an officer, director, 10% or more shareholder,
or a highly compensated Employee.

 

ARTICLE VI 

VALUATIONS

 

6.1          VALUATION OF THE TRUST
FUND

 

The Administrator shall direct the Trustee, as
of each Valuation Date, to determine the net worth of the assets comprising the Trust Fund as it exists on the Valuation
Date. In determining such net worth, the Trustee shall value the assets comprising the Trust Fund at their fair market value
(or their contractual value in the case of a Contract or Policy) as of the Valuation Date and shall deduct all expenses for
which the Trustee has not yet obtained reimbursement from the Employer or the Trust Fund.

 

6.2          METHOD OF VALUATION

 

Valuations must be made in good faith and based on
all relevant factors for determining the fair market value of securities. In the case of a transaction between a Plan and a disqualified
person, value must be determined as of the date of the transaction. For all other Plan purposes, value must be determined as of
the most recent Valuation Date under the Plan. An independent appraisal will not in itself be a good faith determination of value
in the case of a transaction between the Plan and a disqualified person. However, in other cases, a determination of fair market
value based on at least an annual appraisal independently arrived at by a person who customarily makes such appraisals and who
is independent of any party to the transaction will be deemed to be a good faith determination of value. Company Stock not readily
tradeable on an established securities market shall be valued by an independent appraiser meeting requirements similar to the
requirements of the Regulations prescribed under Code Section 170(a)(1).

 

ARTICLE VII 

DETERMINATION AND DISTRIBUTION OF BENEFITS

 

7.1          DETERMINATION OF BENEFITS
UPON RETIREMENT

 

Every Participant may terminate employment with
the Employer and retire for the purposes hereof on the Participant’s Normal Retirement Date or Early Retirement Date.
However, a Participant may postpone the termination of employment with the Employer to a later date, in which event the
participation of such Participant in the Plan, including the right to receive allocations pursuant to Section 4.3, shall
continue until such Participant’s Late Retirement Date. Upon a Participant’s Retirement Date, or as soon
thereafter as is practicable, the Trustee shall distribute, at the election of the Participant, all amounts credited to such
Participant’s Account in accordance with Sections 7.5 and 7.6.

 

    34

     

    

 

7.2          DETERMINATION OF BENEFITS
UPON DEATH

 

(a)           Upon
the death of a Participant before the Participant’s Retirement Date or other termination of employment, all amounts credited
to such Participant’s Account shall become fully Vested. If elected, distribution of the Participant’s Account shall
commence not later than one (1) year after the close of the Plan Year in which such Participant’s death occurs. The Administrator
shall direct the Trustee, in accordance with the provisions of Sections 7.5 and 7.6, to distribute the value of the deceased Participant’s
accounts to the Participant’s Beneficiary.

 

(b)           Upon
the death of a Former Participant, the Administrator shall direct the Trustee, in accordance with the provisions of Sections 7.5
and 7.6, to distribute any remaining Vested amounts credited to the accounts of a deceased Former Participant to such Former Participant’s
Beneficiary.

 

(c)           The
Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value
of the account of a deceased Participant or Former Participant as the Administrator may deem desirable. The Administrator’s
determination of death and of the right of any person to receive payment shall be conclusive.

 

(d)           The
Beneficiary of the death benefit payable pursuant to this Section shall be the Participant’s spouse. Except, however, the
Participant may designate a Beneficiary other than the spouse if:

 

(1)           the
spouse has waived the right to be the Participant’s Beneficiary, or

 

(2)           the
Participant is legally separated or has been abandoned (within the meaning of local law) and the Participant has a court order
to such effect (and there is no “qualified domestic relations order” as defined in Code Section 414(p) which provides
otherwise), or

 

(3)           the
Participant has no spouse, or

 

(4)           the
spouse cannot be located.

 

In such event, the designation of a
Beneficiary shall be made on a form satisfactory to the Administrator. A Participant may at any time revoke a designation of
a Beneficiary or change a Beneficiary by filing written (or in such other form as permitted by the Internal Revenue Service)
notice of such revocation or change with the Administrator. However, the Participant’s spouse must again consent in
writing (or in such other form as permitted by the Internal Revenue Service) to any change in Beneficiary unless the original
consent acknowledged that the spouse had the right to limit consent only to a specific Beneficiary and that the spouse
voluntarily elected to relinquish such right.

 

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(e)           In
the event no valid designation of Beneficiary exists, or if the Beneficiary is not alive at the time of the Participant’s
death, the death benefit will be paid in the following order of priority to:

 

(1)           the
Participant’s surviving spouse;

 

(2)           the Participant’s children,
including adopted children, per stirpes;

 

(3)           the Participant’s surviving parents in equal shares; or

 

(4)           the
Participant’s estate.

 

If the Beneficiary does not predecease the Participant,
but dies prior to distribution of the death benefit, the death benefit will be paid to the Beneficiary’s designated Beneficiary
(or if there is no designated Beneficiary, to the Beneficiary’s estate).

 

(f)            Notwithstanding anything in this
Section to the contrary, if a Participant has designated the spouse as a Beneficiary, then a divorce decree or a legal separation
that relates to such spouse shall revoke the Participant’s designation of the spouse as a Beneficiary unless the decree
or a qualified domestic relations order (within the meaning of Code Section 414(p)) provides otherwise.

 

(g)           Any
consent by the Participant’s spouse to waive any rights to the death benefit must be in writing (or in such other form as
permitted by the Internal Revenue Service), must acknowledge the effect of such waiver, and be witnessed by a Plan representative
or a notary public. Further, the spouse’s consent must be irrevocable and must acknowledge the specific nonspouse Beneficiary.

 

(h)           If
a Participant dies while performing qualified military service (as defined in Code Section 414(u)), the Participant’s
Beneficiary is entitled to any additional benefits (other than benefit accruals relating to the period of qualified military
service) provided under the Plan as if the Participant had resumed employment and then terminated employment on account of
death. Moreover, the Plan will credit the Participant’s qualified military service as service for vesting purposes, as
though the Participant had resumed employment under the Uniformed Services Employment and Reemployment Rights Act (USERRA)
immediately prior to the Participant’s death.

 

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7.3          DETERMINATION OF BENEFITS
IN EVENT OF DISABILITY

 

In the event of a Participant’s Total and
Permanent Disability prior to the Participant’s Retirement Date or other termination of employment, all amounts
credited to such Participant’s Account shall become fully Vested. In the event of a Participant’s Total and
Permanent Disability, the Administrator, in accordance with the provisions of Sections 7.5 and 7.6, shall direct the
distribution to such Participant of all Vested amounts credited to such Participant’s Account. If such Participant
elects, distribution shall commence not later than one (1) year after the close of the Plan Year in which Total and Permanent
Disability occurs.

 

7.4          DETERMINATION OF BENEFITS
UPON TERMINATION

 

(a)           If
a Participant’s employment with the Employer is terminated for any reason other than death, Total and Permanent Disability
or retirement, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section 7.4.

 

If a portion of a Participant’s Account
is forfeited, Company Stock allocated to the Participant’s Company Stock Account must be forfeited only after the Participant’s
Other Investments Account has been depleted. If interest in more than one class of Company Stock has been allocated to a Participant’s
Account, the Participant must be treated as forfeiting the same proportion of each such class.

 

Distribution of the funds due to a Terminated
Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant
remained in the employ of the Employer (upon the Participant’s death, Total and Permanent Disability, Early or Normal Retirement).
However, at the election of the Participant, the Administrator shall direct the Trustee that the entire Vested portion of the
Terminated Participant’s Account to be payable to such Terminated Participant on or after the Anniversary Date coinciding
with or next following termination of employment. Any distribution under this paragraph shall be made in a manner which is consistent
with and satisfies the provisions of Sections 7.5 and 7.6, including, but not limited to, all notice and consent requirements
of Code Section 411(a)(11) and the Regulations thereunder.

 

For purposes of this Section 7.4, if the value
of a Terminated Participant’s Vested benefit is zero, the Terminated Participant shall be deemed to have received a distribution
of such Vested benefit.

 

(b)           The
Vested portion of the Participant’s Account attributable to certain Employer contributions shall be a percentage of the
total amount credited to the Participant’s Account determined on the basis of the Participant’s number of Years of
Service.

 

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The Vested portion of the Participant’s
Account attributable to Employer discretionary contributions made pursuant to Section 4.1(a) is determined according to the following
schedule:

 

Vesting Schedule

Employer Discretionary Contributions

	Years
    of Service	Percentage
	 	 
	1	0
    %
	2	25
    %
	3	50
    %
	4	75
    %
	5	100
    %

 

(c)           Notwithstanding
the above, Company Stock allocated to each Participant’s Company Stock Account pursuant to Section 4.3(e) must be forfeited
only after other assets.

 

(d)           Notwithstanding
the vesting schedule above, the Vested percentage of a Participant’s Account shall not be less than the Vested percentage
attained as of the later of the effective date or adoption date of this amendment and restatement.

 

(e)           Notwithstanding
the vesting schedule above, upon the complete discontinuance of the Employer contributions to the Plan or upon any full or partial
termination of the Plan, all amounts then credited to the account of any affected Participant shall become 100% Vested and shall
not thereafter be subject to Forfeiture.

 

(f)            The computation of a Participant’s
nonforfeitable percentage of such Participant’s interest in the Plan shall not be reduced as the result of any direct or
indirect amendment to this Plan. In the event that the Plan is amended to change or modify any vesting schedule, or if the Plan
is amended in any way that directly or indirectly affects the computation of the Participant’s nonforfeitable percentage,
or if the Plan is deemed amended by an automatic change to a top heavy vesting schedule, then each Participant with at least three
(3) Years of Service as of the expiration date of the election period may elect to have such Participant’s nonforfeitable
percentage computed under the Plan without regard to such amendment or change. If a Participant fails to make such election, then
such Participant shall be subject to the new vesting schedule. The Participant’s election period shall commence on the adoption
date of the amendment and shall end sixty (60) days after the latest of:

 

(1)           the
adoption date of the amendment,

 

(2)           the
effective date of the amendment, or

 

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(3)           the
date the Participant receives written notice of the amendment from the Employer or Administrator.

 

7.5          DISTRIBUTION OF BENEFITS

 

(a)           The
Administrator, pursuant to the election of the Participant, shall direct the Trustee to distribute to a Participant or such Participant’s
Beneficiary any amount to which the Participant is entitled under the Plan in one lump-sum payment.

 

(b)           Any
distribution to a Participant who has a benefit which exceeds $1,000, shall require such Participant’s written (or in
such other form as permitted by the Internal Revenue Service) consent if such distribution is to occur prior to the time the
benefit is “immediately distributable.” 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 later of the Participant’s Normal Retirement Age or age 62. With regard to this required
consent:

 

(1)           The
Participant must be informed of the right to defer receipt of the distribution, and for notices provided in Plan Years beginning
after December 31, 2006, such notification must also include a description of how much larger benefits will be if the commencement
of distributions is deferred. If a Participant fails to consent, it shall be deemed an election to defer the distribution of any
benefit. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required
under Section 7.7.

 

(2)           Notice
of the rights specified under this paragraph shall be provided no less than thirty (30) days and no more than one hundred eighty
(180) days before the date the distribution is made.

 

(3)           Written
(or such other form as permitted by the Internal Revenue Service) consent of the Participant to the distribution must not be made
before the Participant receives the notice and must not be made more than one hundred eighty (180) days before the date the distribution
is made.

 

(4)           No
consent shall be valid if a significant detriment is imposed under the Plan on any Participant who does not consent to the distribution.

 

Any such distribution may occur less
than thirty (30) days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the
Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after
receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular
distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution.

 

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(c)           Notwithstanding
anything herein to the contrary, the Administrator may direct that cash dividends on shares of Company Stock allocable to Participants’
Company Stock Accounts be:

 

(1)           Paid
by the Employer directly in cash to the Participants in the Plan or their Beneficiaries.

 

(2)           Paid
to the Plan and distributed in cash to Participants in the Plan or their Beneficiaries no later than ninety (90) days after the
close of the Plan Year in which paid.

 

(3)           At
the election of Participants or their Beneficiaries, paid in accordance with paragraph (1) or (2) above, or paid to the Plan and
reinvested in Company Stock; provided, however, that if cash dividends are reinvested in Company Stock, then Company Stock allocated
to the Participant’s Company Stock Account shall have a fair market value not less than the amount of cash dividends which
would have been allocated to such Participant’s Other Investment Account for the year.

 

(4)           Used
to make payments on an Exempt Loan the proceeds of which were used to acquire Company Stock (whether or not allocated to Participants’
Company Stock Accounts) with respect to which the cash dividend is paid.

 

(5)           Allocated
to Participants’ Other Investment Accounts.

 

(d)           Any
part of a Participant’s benefit which is retained in the Plan after the Anniversary Date on which the Participant’s
participation ends will continue to be treated as a Company Stock Account or as an Other Investments Account (subject to Section
7.4(a)) as provided in Article IV. However, neither account will be credited with any further Employer contributions or Forfeitures.

 

(e)           Required
minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution
of a Participant’s benefits shall be made in accordance with the requirements of Section 7.7.

 

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(f)            Except
as limited by Sections 7.5 and 7.6, whenever the Trustee is to make a distribution, the distribution may be made on such date
or as soon thereafter as is practicable. However, unless a Former Participant elects in writing to defer the receipt of benefits
(such election may not result in a death benefit that is more than incidental), the payment of benefits shall occur not later
than the sixtieth (60th) day after the close of the Plan Year in which the latest of the following events occurs:

 

(1)           the
date on which the Participant attains the earlier of age 65 or the Normal Retirement Age specified herein;

 

(2)           the
tenth (10th) anniversary of the year in which the Participant commenced participation in the Plan; or

 

(3)           the date the Participant terminates
his service with the Employer.

 

(g)           If
a distribution is made to a Participant who has not severed employment and who is not fully Vested in the Participant’s
Account and the Participant may increase the Vested percentage in such account, then, at any relevant time the
Participant’s Vested portion of the account will be equal to an amount (“X”) determined by the formula:

 

X equals P(AB plus D) - D

 

For purposes of applying the formula: P is the
Vested percentage at the relevant time, AB is the account balance at the relevant time, and D is the amount of distribution.

 

7.6          HOW PLAN BENEFIT WILL BE DISTRIBUTED

 

(a)           Distribution
of a Participant’s benefit may be made in cash or Company Stock or both, provided, however, that if a Participant or Beneficiary
so demands, such benefit shall be distributed only in the form of Company Stock. Prior to making a distribution of benefits, the
Administrator shall advise the Participant or the Participant’s Beneficiary, in writing (or such other form as permitted
by the Internal Revenue Service), of the right to demand that benefits be distributed solely in Company Stock.

 

(b)           If
a Participant or Beneficiary demands that benefits be distributed solely in Company Stock, distribution of a
Participant’s benefit will be made entirely in whole shares or other units of Company Stock. Any balance in a
Participant’s Other Investments Account will be applied to acquire for distribution the maximum number of whole shares
or other units of Company Stock at the then fair market value. Any fractional unit value unexpended will be distributed in
cash. If Company Stock is not available for purchase by the Trustee, then the Trustee shall hold such balance until Company
Stock is acquired and then make such distribution, subject to Sections 7.5(f) and 7.7.

 

(c)           The
Trustee will make distribution from the Trust only on instructions from the Administrator.

 

    41

     

    

 

 

(d)          Notwithstanding
anything contained herein to the contrary, if the Employer charter or by-laws restrict ownership of substantially all shares of
Company Stock to Employees and the Trust Fund, as described in Code Section 409(h)(2)(B)(ii)(I), then the Administrator shall
distribute a Participant’s Account entirely in cash without granting the Participant the right to demand distribution in
shares of Company Stock.

 

(e)          Except
as otherwise provided herein, Company Stock distributed by the Trustee may be restricted as to sale or transfer by the by-laws
or articles of incorporation of the Employer, provided restrictions are applicable to all Company Stock of the same class. If
a Participant is required to offer the sale of Company Stock to the Employer before offering to sell Company Stock to a third
party, in no event may the Employer pay a price less than that offered to the distributee by another potential buyer making a
bona fide offer and in no event shall the Trustee pay a price less than the fair market value of the Company Stock.

 

(f)          If Company Stock acquired with
the proceeds of an Exempt Loan (described in Section 5.4 hereof) is available for distribution and consists of more than one class,
a Participant or the Participant’s Beneficiary must receive substantially the same proportion of each such class.

 

		7.7	REQUIRED MINIMUM DISTRIBUTIONS

  

(a)          General Rules

 

(1)          Precedence.
The requirements of this Section will take precedence over any inconsistent provisions of the Plan.

 

(2)          Requirements
of Treasury Regulations Incorporated. All distributions required under this Section will be determined and made in accordance
with the Regulations under Code Section 401(a)(9).

 

(3)          TEFRA
Section 242(b)(2) Elections. Notwithstanding the other provisions of this Section and the Plan, distributions may be made
under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility
Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

 

(b)          Time
and Manner of Distribution

 

(1)           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.

 

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(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
there is no designated beneficiary as of September 30th of the year following the year of the Participant’s death, the Participant’s
entire interest will be distributed by December 31st of the calendar year containing the fifth anniversary of the Participant’s
death.

 

For purposes
of this Section 7.7(b)(2) and Section 7.7(b)(3), distributions are considered to begin on the Participant’s required beginning
date.

 

(3)          Forms
of Distribution. Unless the Participant’s interest is distributed in a single sum on or before the required beginning
date, as of the first distribution calendar year distributions will be made in accordance with Sections 7.7(c) and 7.7(d).

 

(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 Regulation Section 1.401(a)(9)-9, Q&A-2, using the Participant’s age as of the Participant’s birthday
in the distribution calendar year; or

 

(ii)         if
the Participant’s sole designated beneficiary for the distribution calendar year is the Participant’s spouse, the
quotient obtained by dividing the Participant’s account balance by the number in the Joint and Last Survivor Table set forth
in Regulation Section 1.401(a)(9)-9, Q&A-3, using the Participant’s and spouse’s 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 Section 7.7(c) beginning with the first distribution calendar year and up to and including the distribution
calendar year that includes the Participant’s date of death.

 

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(d)          Required
minimum distributions 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 sole designated beneficiary, the remaining life expectancy
of the surviving spouse is calculated for each distribution calendar year after the year of the Participant’s death using
the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year
of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the
surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent
calendar year.

 

(C)          If
the Participant’s surviving spouse is not the Participant’s sole designated beneficiary, the designated beneficiary’s
remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participant’s
death, reduced by one for each subsequent year.

 

(ii)          No
designated beneficiary. If the Participant dies on or after the date distributions begin and there is no designated beneficiary
as of September 30th of the year after the year of the Participant’s death, the minimum amount that will be distributed
for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s
account balance by the Participant’s remaining life expectancy calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.

 

     44

     

    

 

(2)          Death
Before Date Distributions Begin.

 

(i)           Participant
Survived by designated beneficiary. Except as provided in Section 7.7(b)(3), 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 Section 7.7(d)(1).

 

(ii)          No
designated beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary
as of September 30th of the year following the year of the Participant’s death, distribution of the Participant’s
entire interest will be completed by December 31st of the calendar year containing the fifth anniversary of the Participant’s
death.

 

(e)          Definitions.
For purposes of this Section, the following definitions apply:

 

(1)          “Designated
beneficiary” means the individual who is designated as the Beneficiary under the Plan and is the designated beneficiary
under Code Section 401(a)(9) and Regulation Section 1.401(a)(9)-1, Q&A-4.

 

(2)          “Distribution
calendar year” means a calendar year for which a minimum distribution is required. For distributions beginning before the
Participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which
contains the Participant’s “Required beginning date.” For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which distributions are required to begin under Section 7.7(b).
The required minimum distribution for the Participant’s first distribution calendar year will be made on or before the Participant’s
“Required beginning date.” The required minimum distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in which the Participant’s “Required beginning date”
occurs, will be made on or before December 31st of that distribution calendar year.

 

(3)          “Life
expectancy” means the life expectancy as computed by use of the Single Life Table in Regulation Section 1.401(a)(9)-9.

 

(4)          “Participant’s
account balance” means the Participant’s 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 balance as of the 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 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.

 

     45

     

    

 

(5)          “Required
beginning date” means, with respect to any Participant, April 1st of the calendar year following the later of the calendar
year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires, except that benefit distributions
to a “5-percent owner” must commence by April 1st of the calendar year following the calendar year in which the Participant
attains age 70 1/2.

 

(6)          “5-percent
owner” means a Participant who 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 70 1/2. Once distributions have begun to a 5-percent owner under
this Section they must continue to be distributed, even if the Participant ceases to be a 5-percent owner in a subsequent year.

 

(f)          2009 Transition Rules.

 

(1)          Notwithstanding
the provisions of the Plan relating to required minimum distributions under Code Section 401(a)(9), a Participant or Beneficiary
who would have been required to receive required minimum distributions for 2009 but for the enactment of Code Section 401(a)(9)(H)
(“2009 RMDs”), and who would have satisfied that requirement by receiving distributions that are equal to the 2009
RMDs will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions.
Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions
described in the preceding sentence.

 

		7.8	DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL

 

In the event a distribution
is to be made to a minor or incompetent individual, then the Administrator may direct that such distribution be paid to the court
appointed legal guardian or any other person authorized under state law to receive such distribution, or if none, then in the
case of a minor individual, to a parent of such individual, or to the custodian for such individual under the Uniform Gift to
Minors Act or Gift to Minors Act, if such is permitted by the laws of the state in which said individual resides. Such a payment
to the guardian, custodian or parent of a minor or incompetent individual shall fully discharge the Trustee (or Insurer), Employer,
and Plan from further liability on account thereof.

 

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		7.9	LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

 

In the event that all, or any portion, of the distribution
payable to a Participant or Beneficiary hereunder shall, at the later of the Participant’s attainment of age 62 or Normal
Retirement Age, remain unpaid solely by reason of the inability of the Administrator, after sending a registered letter, return
receipt requested, to the last known address, and after further diligent effort, to ascertain the whereabouts of such Participant
or Beneficiary, the amount so distributable may either, at the discretion of the Administrator, be treated as a Forfeiture or
paid directly to an individual retirement account described in Code Section 408(a) or individual retirement annuity described
in Code Section 408(b) pursuant to the Plan. However, the foregoing shall also apply prior to the later of a Participant’s
attainment of age 62 or Normal Retirement Age if, pursuant to the terms of the Plan, a mandatory distribution may be made to the
Participant without the Participant’s consent and the amount of such distribution is not more than $1,000. In the event
a Participant or Beneficiary is located subsequent to a Forfeiture, such benefit shall be restored, first from Forfeitures, if
any, and then from an additional Employer contribution if necessary. However, regardless of the preceding, a benefit which is
lost by reason of escheat under applicable state law is not treated as a Forfeiture for purposes of this Section nor as an impermissible
forfeiture under the Code.

 

		7.10	RIGHT OF FIRST REFUSALS

 

(a)          If
any Participant, the Participant’s Beneficiary or any other person to whom shares of Company Stock are distributed from
the Plan (the “Selling Participant”) shall, at any time, desire to sell some or all of such shares (the “Offered
Shares”) to a third party (the “Third Party”), the Selling Participant shall give written notice of such desire
to the Employer and the Administrator, which notice shall contain the number of shares offered for sale, the proposed terms of
the sale and the names and addresses of both the Selling Participant and Third Party. Both the Trust Fund and the Employer shall
each have the right of first refusal for a period of fourteen (14) days from the date the Selling Participant gives such written
notice to the Employer and the Administrator (such fourteen (14) day period to run concurrently against the Trust Fund and the
Employer) to acquire the Offered Shares. As between the Trust Fund and the Employer, the Trust Fund shall have priority to acquire
the shares pursuant to the right of first refusal. The selling price and terms shall be the same as offered by the Third Party.

 

(b)          If
the Trust Fund and the Employer do not exercise their right of first refusal within the required fourteen (14) day period provided
above, the Selling Participant shall have the right, at any time following the expiration of such fourteen (14) day period, to
dispose of the Offered Shares to the Third Party; provided, however, that (i) no disposition shall be made to the Third Party
on terms more favorable to the Third Party than those set forth in the written notice delivered by the Selling Participant above,
and (ii) if such disposition shall not be made to a third party on the terms offered to the Employer and the Trust Fund, the offered
Shares shall again be subject to the right of first refusal set forth above.

 

     47

     

    

 

(c)          The
closing pursuant to the exercise of the right of first refusal under Section 7.10(a) above shall take place at such place agreed
upon between the Administrator and the Selling Participant, but not later than ten (10) days after the Employer or the Trust Fund
shall have notified the Selling Participant of the exercise of the right of first refusal. At such closing, the Selling Participant
shall deliver certificates representing the Offered Shares duly endorsed in blank for transfer, or with stock powers attached
duly executed in blank with all required transfer tax stamps attached or provided for, and the Employer or the Trust Fund shall
deliver the purchase price, or an appropriate portion thereof, to the Selling Participant.

 

(d)          Except
as provided in this paragraph (d), no Company Stock acquired with the proceeds of an Exempt Loan complying with the requirements
of Section 5.4 hereof shall be subject to a right of first refusal. Company Stock acquired with the proceeds of an Exempt Loan,
which is distributed to a Participant or Beneficiary, shall be subject to the right of first refusal provided for in paragraph
(a) of this Section only so long as the Company Stock is not publicly traded. The term “publicly traded” refers to
a securities exchange registered under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) or that is quoted on a
system sponsored by a national securities association registered under Section 15A(b) of the Securities Exchange Act (15 U.S.C.
780). In addition, in the case of Company Stock which was acquired with the proceeds of a loan described in Section 5.4, the selling
price and other terms under the right must not be less favorable to the seller than the greater of the value of the security determined
under Section 6.2, or the purchase price and other terms offered by a buyer (other than the Employer or the Trust Fund), making
a good faith offer to purchase the security. The right of first refusal must lapse no later than fourteen (14) days after the
security holder gives notice to the holder of the right that an offer by a third party to purchase the security has been made.
The right of first refusal shall comply with the provisions of paragraphs (a), (b) and (c) of this Section, except to the extent
those provisions may conflict with the provisions of this paragraph.

 

		7.11	STOCK CERTIFICATE LEGEND

 

Certificates for shares distributed pursuant to the Plan shall
contain the following legend:

 

“The shares represented by this certificate
are transferable only upon compliance with the terms of The Bank of South Carolina Employee Stock Ownership Plan effective as
of January 1, 1989, which grants to The Bank of South Carolina a right of first refusal, a copy of said Plan being on file in
the office of the Company.”

 

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		7.12	NONTERMINABLE PROTECTIONS AND RIGHTS

 

No Company Stock, except as provided in Section 7.11,
acquired with the proceeds of a loan described in Section 5.4 hereof may be subject to a put, call, or other option, or buy-sell
or similar arrangement when held by and when distributed from the Trust Fund, whether or not the Plan is then an ESOP. The protections
and rights granted in this Section are nonterminable, and such protections and rights shall continue to exist under the terms
of this Plan so long as any Company Stock acquired with the proceeds of a loan described in Section 5.4 hereof is held by the
Trust Fund or by any Participant or other person for whose benefit such protections and rights have been created, and neither
the repayment of such loan nor the failure of the Plan to be an ESOP, nor an amendment of the Plan shall cause a termination of
said protections and rights.

 

		7.13	QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

 

All rights and benefits, including elections, provided
to a Participant in this Plan shall be subject to the rights afforded to any “alternate payee” under a “qualified
domestic relations order.” Furthermore, a distribution to an “alternate payee” shall be permitted if such distribution
is authorized by a “qualified domestic relations order,” even if the affected Participant has not separated from service
and has not reached the “earliest retirement age” under the Plan. For the purposes of this Section, “alternate
payee,” “qualified domestic relations order” and “earliest retirement age” shall have the meaning
set forth under Code Section 414(p).

 

A domestic relations order that otherwise satisfies
the requirements for a qualified domestic relations order (“QDRO”) will not fail to be a QDRO: (i) solely because
the order is issued after, or revises, another domestic relations order or QDRO; or (ii) solely because of the time at which the
order is issued, including issuance after the Participant’s death. A domestic relations order described in this paragraph
is subject to the same requirements and protections that apply to QDROs.

 

		7.14	DIRECT ROLLOVER

 

(a)          This
Section applies to distributions made on or after January 1, 2002. 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 Administrator, to have any portion of an “eligible rollover distribution”
that is equal to at least $500 paid directly to an “eligible retirement plan” specified by the “distributee”
in a “direct rollover.”

 

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(b)          For
purposes of this Section the following definitions shall apply:

 

(1)          An
“eligible rollover distribution” means any distribution described in Code Section 402(c)(4) and generally includes
any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the “distributee” or the joint lives (or joint life expectancies)
of the “distributee” and the “distributee’s” designated beneficiary, or for a specified period of
ten (10) years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); 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 any other distribution reasonably expected to total less than $200 during
a year. Any amount that is distributed on account of hardship shall not be an eligible rollover distribution and the “distributee”
may not elect to have any portion of such a distribution paid directly to an “eligible retirement plan.”

 

(2)          An
“eligible retirement plan” is an individual retirement account described in Code Section 408(a), an individual retirement
annuity described in Code Section 408(b) (other than an endowment contract), a qualified trust (an employees’ trust) described
in Code Section 401(a) which is exempt from tax under Code Section 501(a) and which agrees to separately account for amounts transferred
into such plan from this Plan, an annuity plan described in Code Section 403(a), an eligible deferred compensation plan described
in Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality thereof
which agrees to separately account for amounts transferred into such plan from this Plan, and an annuity contract described in
Code Section 403(b) that accepts the distributee’s eligible rollover distribution. However, in the case of an “eligible
rollover” distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual
retirement annuity. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse,
or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined in Code Section
414(p).

 

In addition, a Participant may elect to directly
roll over an “eligible rollover distribution” to a Roth IRA described in Code Section 408A(b).

 

(3)          A
“distributee” includes an Employee or former Employee. In addition, the Employee’s or former Employee’s
surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under
a qualified domestic relations order, as defined in Code Section 414(p), are “distributees” with regard to the interest
of the spouse or former spouse.

 

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A nonspouse beneficiary who is a “designated
beneficiary” under Code Section 401(a)(9)(E) and the Regulations thereunder, by a direct trustee-to-trustee transfer (“direct
rollover”), may roll over all or any portion of his or her distribution to an individual retirement account the beneficiary
establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise
must be an “eligible rollover distribution.” If the Participant’s named beneficiary is a trust, the Plan may
make a direct rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements
to be a designated beneficiary within the meaning of Code Section 401(a)(9)(E). A nonspouse beneficiary may not roll over an amount
which is a required minimum distribution, as determined under applicable Regulations and other Revenue Service guidance. If the
Participant dies before his or her required beginning date and the nonspouse Beneficiary rolls over to an IRA the maximum amount
eligible for rollover, the beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Regulations
Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse beneficiary’s
distribution.

 

(4)          A
“direct rollover” is a payment by the Plan to the “eligible retirement plan” specified by the “distributee.”

 

(c)          Participant
Notice. A Participant entitled to an eligible rollover distribution must receive a written explanation of his/her right to
a direct rollover, the tax consequences of not making a direct rollover, and, if applicable, any available special income tax
elections. The notice must be provided within the same 30-to-180 day timeframe applicable to the Participant consent notice. The
direct rollover notice must be provided to all Participants, unless the total amount the Participant will receive as a distribution
during the calendar year is expected to be less than $200.

 

		7.15	CORRECTIVE DISTRIBUTIONS

 

Nothing in this Article shall preclude the Administrator
from making a distribution to a Participant to the extent such distribution is made to correct a qualification defect in accordance
with the correction procedures under the IRS’s Employee Plans Compliance Resolution System or any other voluntary compliance
programs.

 

ARTICLE VIII

TRUSTEE

 

		8.1	BASIC RESPONSIBILITIES OF THE TRUSTEE

 

(a)          The
Trustee shall have the following categories of responsibilities:

 

(1)          Consistent
with the “funding policy and method” determined by the Employer, to invest, manage, and control the Plan assets subject,
however, to the direction of the Employer or an Investment Manager appointed by the Employer or any agent of the Employer;

 

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(2)       At
the direction of the Administrator, to pay benefits required under the Plan to be paid to Participants, or, in the event of their
death, to their Beneficiaries; and

 

(3)       To
maintain records of receipts and disbursements and furnish to the Employer and/or Administrator for each Plan Year a written annual
report pursuant to Section 8.7.

 

(b)       In
the event that the Trustee shall be directed by the Employer, an Investment Manager or other agent appointed by the Employer with
respect to the investment of any or all Plan assets, the Trustee shall have no liability with respect to the investment of such
assets, but shall be responsible only to execute such investment instructions as so directed.

 

(1)       The
Trustee shall be entitled to rely fully on the written (or other form acceptable to the Administrator and the Trustee, including,
but not limited to, voice recorded) instructions of the Employer, or any Fiduciary or nonfiduciary agent of the Employer, in the
discharge of such duties, and shall not be liable for any loss or other liability, resulting from such direction (or lack of direction)
of the investment of any part of the Plan assets.

 

(2)       The
Trustee may delegate the duty of executing such instructions to any nonfiduciary agent, which may be an affiliate of the Trustee
or any Plan representative.

 

(c)       If
there shall be more than one Trustee, they shall act by a majority of their number, but may authorize one or more of them to sign
papers on their behalf.

 

		8.2	INVESTMENT POWERS AND DUTIES OF THE TRUSTEE

 

(a)       The
Trustee shall invest and reinvest the Trust Fund to keep the Trust Fund invested without distinction between principal and income
and in such securities or property, real or personal, wherever situated, as the Trustee shall deem advisable, including, but not
limited to, stocks, common or preferred, open-end or close-end mutual funds, bonds and other evidences of indebtedness or ownership,
and real estate or any interest therein. The Trustee shall at all times in making investments of the Trust Fund consider, among
other factors, the short and long-term financial needs of the Plan on the basis of information furnished by the Employer. In making
such investments, the Trustee shall not be restricted to securities or other property of the character expressly authorized by
the applicable law for trust investments; however, the Trustee shall give due regard to any limitations imposed by the Code or
the Act so that at all times the Plan may qualify as an Employee Stock Ownership Plan and Trust.

 

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(b)       The
Trustee may employ a bank or trust company pursuant to the terms of its usual and customary bank agency agreement, under which
the duties of such bank or trust company shall be of a custodial, clerical and record-keeping nature.

 

(c)       In
the event the Trustee invests any part of the Trust Fund, pursuant to the directions of the Administrator, in any shares of stock
issued by the Employer, and the Administrator thereafter directs the Trustee to dispose of such investment, or any part thereof,
under circumstances which, in the opinion of counsel for the Trustee, require registration of the securities under the Securities
Act of 1933 and/or qualification of the securities under the Blue Sky laws of any state or states, then the Employer at its own
expense, will take or cause to be taken any and all such action as may be necessary or appropriate to effect such registration
and/or qualification.

 

		8.3	OTHER POWERS OF THE TRUSTEE

 

The Trustee, in addition to all powers and authorities
under common law, statutory authority, including the Act, and other provisions of the Plan, shall have the following powers and
authorities, to be exercised in the Trustee’s sole discretion:

 

(a)       To
purchase, or subscribe for, any securities or other property and to retain the same. In conjunction with the purchase of securities,
margin accounts may be opened and maintained;

 

(b)       Except
with respect to Company Stock, to sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any securities
or other property held by the Trustee, by private contract or at public auction. No person dealing with the Trustee shall be bound
to see to the application of the purchase money or to inquire into the validity, expediency, or propriety of any such sale or
other disposition, with or without advertisement;

 

(c)       To
vote upon any stocks, bonds, or other securities; to give general or special proxies or powers of attorney with or without power
of substitution; to exercise any conversion privileges, subscription rights or other options, and to make any payments incidental
thereto; to oppose, or to consent to, or otherwise participate in, corporate reorganizations or other changes affecting corporate
securities, and to delegate discretionary powers, and to pay any assessments or charges in connection therewith; and generally
to exercise any of the powers of an owner with respect to stocks, bonds, securities, or other property. However, the Trustee shall
not vote proxies relating to securities for which it has not been assigned full investment management responsibilities. In those
cases where another party has such investment authority or discretion, the Trustee will deliver all proxies to said party who
will then have full responsibility for voting those proxies;

 

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(d)       To
cause any securities or other property to be registered in the Trustee’s own name or in the name of a nominee or in a street
name provided such securities or other property are held on behalf of the Plan by (i) a bank or trust company, (ii) a broker or
dealer registered under the Securities Exchange Act of 1934, or a nominee of such broker or dealer, or (iii) a clearing agency
as defined in Section 3(a)(23) of the Securities Exchange Act of 1934;

 

(e)       To
borrow or raise money for the purposes of the Plan in such amount, and upon such terms and conditions, as the Trustee shall
deem advisable; and for any sum so borrowed, to issue a promissory note as Trustee, and to secure the repayment thereof by
pledging all, or any part, of the Trust Fund; and no person lending money to the Trustee shall be bound to see to the
application of the money lent or to inquire into the validity, expediency, or propriety of any borrowing;

 

(f)      To
keep such portion of the Trust Fund in cash or cash balances as the Trustee may, from time to time, deem to be in the best interests
of the Plan, without liability for interest thereon;

 

(g)      To
accept and retain for such time as the Trustee may deem advisable any securities or other property received or acquired as Trustee
hereunder, whether or not such securities or other property would normally be purchased as investments hereunder;

 

(h)      To
make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that
may be necessary or appropriate to carry out the powers herein granted;

 

(i)       To
settle, compromise, or submit to arbitration any claims, debts, or damages due or owing to or from the Plan, to commence or defend
suits or legal or administrative proceedings, and to represent the Plan in all suits and legal and administrative proceedings;

 

(j)       To
employ suitable agents and counsel and to pay their reasonable expenses and compensation, and such agent or counsel may or may
not be agent or counsel for the Employer;

 

(k)       To
apply for and procure from responsible insurance companies, to be selected by the Administrator, as an investment of the Trust
Fund such annuity, or other Contracts (on the life of any Participant) as the Administrator shall deem proper; to exercise, at
any time or from time to time, whatever rights and privileges may be granted under such annuity, or other Contracts; to collect,
receive, and settle for the proceeds of all such annuity or other Contracts as and when entitled to do so under the provisions
thereof;

 

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(l)       
To invest funds of the Trust in time deposits or savings accounts bearing a reasonable rate of interest or in cash or cash balances
without liability for interest thereon;

 

(m)      To
invest in Treasury Bills and other forms of United States government obligations;

 

(n)       To
invest in shares of investment companies registered under the Investment Company Act of 1940;

 

(o)       To
deposit monies in federally insured savings accounts or certificates of deposit in banks or savings and loan associations;

 

(p)       To
vote Company Stock as provided in Section 8.4;

 

(q)       To
consent to or otherwise participate in reorganizations, recapitalizations, consolidations, mergers and similar transactions with
respect to Company Stock or any other securities and to pay any assessments or charges in connection therewith;

 

(r)       To
deposit such Company Stock (but only if such deposit does not violate the provisions of Section 8.4 hereof) or other securities
in any voting trust, or with any protective or like committee, or with a trustee or with depositories designated thereby;

 

(s)       Except
with respect to Company Stock, to sell or exercise any options, subscription rights and conversion privileges and to make any
payments incidental thereto;

 

(t)       To
exercise any of the powers of an owner, with respect to such Company Stock and other securities or other property comprising the
Trust Fund. The Administrator, with the Trustee’s approval, may authorize the Trustee to act on any administrative matter
or class of matters with respect to which direction or instruction to the Trustee by the Administrator is called for hereunder
without specific direction or other instruction from the Administrator;

 

(u)       Except
with respect to Company Stock, to sell, purchase and acquire put or call options if the options are traded on and purchased through
a national securities exchange registered under the Securities Exchange Act of 1934, as amended, or, if the options are not traded
on a national securities exchange, are guaranteed by a member firm of the New York Stock Exchange regardless of whether such options
are covered; and

 

(v)       To
do all such acts and exercise all such rights and privileges, although not specifically mentioned herein, as the Trustee may deem
necessary to carry out the purposes of the Plan.

 

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		8.4	VOTING COMPANY STOCK

 

The Trustee shall vote all Company Stock held by
it as part of the Plan assets. Provided, however, that if any agreement entered into by the Trust provides for voting of any shares
of Company Stock pledged as security for any obligation of the Plan, then such shares of Company Stock shall be voted in accordance
with such agreement. If the Trustee does not timely receive voting directions from a Participant or Beneficiary with respect to
any Company Stock allocated to that Participant’s or Beneficiary’s Company Stock Account, the Trustee shall vote such
Company Stock.

 

Notwithstanding the foregoing, if the Employer has
a registration-type class of securities, each Participant or Beneficiary shall be entitled to direct the Trustee as to the manner
in which the Company Stock which is entitled to vote and which is allocated to the Company Stock Account of such Participant or
Beneficiary is to be voted. If the Employer does not have a registration-type class of securities, each Participant or Beneficiary
in the Plan shall be entitled to direct the Trustee as to the manner in which voting rights on shares of Company Stock which are
allocated to the Company Stock Account of such Participant or Beneficiary are to be exercised with respect to any corporate matter
which involves the voting of such shares with respect to the approval or disapproval of any corporate merger or consolidation,
recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of a trade or business, or such
similar transaction as prescribed in Regulations. For purposes of this Section the term “registration-type class of securities”
means: (A) a class of securities required to be registered under Section 12 of the Securities Exchange Act of 1934; and (B) a
class of securities which would be required to be so registered except for the exemption from registration provided in subsection
(g)(2)(H) of such Section 12.

 

If the Employer
does not have a registration-type class of securities and the by-laws of the Employer require the Plan to vote an issue in a manner
that reflects a one-man, one-vote philosophy, each Participant or Beneficiary shall be entitled to cast one vote on an issue and
the Trustee shall vote the shares held by the Plan in proportion to the results of the votes cast on the issue by the Participants
and Beneficiaries.

 

		8.5	DUTIES OF THE TRUSTEE REGARDING PAYMENTS

 

At the direction of the Administrator, the Trustee
shall, from time to time, in accordance with the terms of the Plan, make payments out of the Trust Fund. The Trustee shall not
be responsible in any way for the application of such payments.

 

		8.6	TRUSTEE’S COMPENSATION AND EXPENSES AND TAXES

 

The Trustee shall be paid such reasonable compensation
as set forth in the Trustee’s fee schedule (if the Trustee has such a schedule) or as agreed upon in writing by the Employer
and the Trustee. However, an individual serving as Trustee who already receives full-time pay from the Employer shall not receive
compensation from the Plan. In addition, the Trustee shall be reimbursed for any reasonable expenses, including reasonable counsel
fees incurred by it as Trustee. Such compensation and expenses shall be paid from the Trust Fund unless paid or advanced by the
Employer. All taxes of any kind whatsoever that may be levied or assessed under existing or future laws upon, or in respect of,
the Trust Fund or the income thereof, shall be paid from the Trust Fund.

 

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		8.7	ANNUAL REPORT OF THE TRUSTEE

 

(a)       Within
a reasonable period of time after the later of the Anniversary Date or receipt of the Employer contribution for each Plan Year,
the Trustee, or its agent, shall furnish to the Employer and Administrator a written statement of account with respect to the
Plan Year for which such contribution was made setting forth:

 

(1)       the
net income, or loss, of the Trust Fund;

 

(2)       the
gains, or losses, realized by the Trust Fund upon sales or other disposition of the assets;

 

(3)       the
increase, or decrease, in the value of the Trust Fund;

 

(4)       all
payments and distributions made from the Trust Fund; and

 

(5)       such
further information as the Trustee and/or Administrator deems appropriate.

 

(b)       The
Employer, promptly upon its receipt of each such statement of account, shall acknowledge receipt thereof in writing and advise
the Trustee and/or Administrator of its approval or disapproval thereof. Failure by the Employer to disapprove any such statement
of account within thirty (30) days after its receipt thereof shall be deemed an approval thereof. The approval by the Employer
of any statement of account shall be binding on the Employer and the Trustee as to all matters contained in the statement to the
same extent as if the account of the Trustee had been settled by judgment or decree in an action for a judicial settlement of
its account in a court of competent jurisdiction in which the Trustee, the Employer and all persons having or claiming an interest
in the Plan were parties. However, nothing contained in this Section shall deprive the Trustee of its right to have its accounts
judicially settled if the Trustee so desires.

 

		8.8	AUDIT

 

(a)       If
an audit of the Plan’s records shall be required by the Act and the regulations thereunder for any Plan Year, the Administrator
shall direct the Trustee to engage on behalf of all Participants an independent qualified public accountant for that purpose.
Such accountant shall, after an audit of the books and records of the Plan in accordance with generally accepted auditing standards,
within a reasonable period after the close of the Plan Year, furnish to the Administrator and the Trustee a report of the audit
setting forth the accountant’s opinion as to whether any statements, schedules or lists that are required by Act Section
103 or the Secretary of Labor to be filed with the Plan’s annual report, are presented fairly in conformity with generally
accepted accounting principles applied consistently.

 

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(b)       All
auditing and accounting fees shall be an expense of and may, at the election of the Employer, be paid from the Trust Fund.

 

(c)       If
some or all of the information necessary to enable the Administrator to comply with Act Section 103 is maintained by a bank, insurance
company, or similar institution, regulated, supervised, and subject to periodic examination by a state or federal agency, then
it shall transmit and certify the accuracy of that information to the Administrator as provided in Act Section 103(b) within one
hundred twenty (120) days after the end of the Plan Year or by such other date as may be prescribed under regulations of the Secretary
of Labor.

 

		8.9	RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE

 

(a)       Unless
otherwise agreed to by both the Trustee and the Employer, a Trustee may resign at any time by delivering to the Employer, at least
thirty (30) days before its effective date, a written notice of resignation.

 

(b)       Unless
otherwise agreed to by both the Trustee and the Employer, the Employer may remove a Trustee at any time by delivering to the Trustee,
at least thirty (30) days before its effective date, a written notice of such Trustee’s removal.

 

(c)       Upon
the death, resignation, incapacity, or removal of any Trustee, a successor may be appointed by the Employer; and such successor,
upon accepting such appointment in writing and delivering same to the Employer, shall, without further act, become vested with
all the powers and responsibilities of the predecessor as if such successor had been originally named as a Trustee herein. Until
such a successor is appointed, the remaining Trustee or Trustees shall have full authority to act under the terms of the Plan.

 

(d)       The
Employer may designate one or more successors prior to the death, resignation, incapacity, or removal of a Trustee. In the event
a successor is so designated by the Employer and accepts such designation, the successor shall, without further act, become vested
with all the powers and responsibilities of the predecessor as if such successor had been named as Trustee herein immediately
upon the death, resignation, incapacity, or removal of the predecessor.

 

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(e)       Whenever
any Trustee hereunder ceases to serve as such, the Trustee shall furnish to the Employer and Administrator a written statement
of account with respect to the portion of the Plan Year during which the individual or entity served as Trustee. This statement
shall be either (i) included as part of the annual statement of account for the Plan Year required under Section 8.7 or (ii) set
forth in a special statement. Any such special statement of account should be rendered to the Employer no later than the due date
of the annual statement of account for the Plan Year. The procedures set forth in Section 8.7 for the approval by the Employer
of annual statements of account shall apply to any special statement of account rendered hereunder and approval by the Employer
of any such special statement in the manner provided in Section 8.7 shall have the same effect upon the statement as the Employer’s
approval of an annual statement of account. No successor to the Trustee shall have any duty or responsibility to investigate the
acts or transactions of any predecessor who has rendered all statements of account required by Section 8.7 and this subparagraph.

 

		8.10	TRANSFER OF INTEREST

 

Notwithstanding any other provision contained in
this Plan, the Trustee at the direction of the Administrator shall transfer the Vested interest, if any, of a Participant to another
trust forming part of a pension, profit sharing or stock bonus plan maintained by such Participant’s new employer and represented
by said employer in writing as meeting the requirements of Code Section 401(a), provided that the trust to which such transfers
are made permits the transfer to be made.

 

ARTICLE IX

AMENDMENT, TERMINATION AND MERGERS

 

		9.1	AMENDMENT

 

(a)       The
Employer shall have the right at any time to amend this Plan subject to the limitations of this Section. However, any amendment
which affects the rights, duties or responsibilities of the Trustee or Administrator, may only be made with the Trustee’s
or Administrator’s written consent. Any such amendment shall become effective as provided therein upon its execution. The
Trustee shall not be required to execute any such amendment unless the amendment affects the duties of the Trustee hereunder.

 

(b)       No
amendment to the Plan shall be effective if it authorizes or permits any part of the Trust Fund (other than such part as is required
to pay taxes and administration expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the
Participants or their Beneficiaries or estates; or causes any reduction in the amount credited to the account of any Participant;
or causes or permits any portion of the Trust Fund to revert to or become property of the Employer.

 

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(c)       Except
as permitted by Regulations (including Regulation 1.411(d)-4) or other IRS guidance, no Plan amendment or transaction having the
effect of a Plan amendment (such as a merger, plan transfer or similar transaction) shall be effective if it eliminates or reduces
any “Section 411(d)(6) protected benefit” or adds or modifies conditions relating to “Section 411(d)(6) protected
benefits” which results in a further restriction on such benefit unless such “Section 411(d)(6) protected benefits”
are preserved with respect to benefits accrued as of the later of the adoption date or effective date of the amendment. “Section
411(d)(6) protected benefits” are benefits described in Code Section 411(d)(6)(A), early retirement benefits and retirement-type
subsidies, and optional forms of benefit.

 

		9.2	TERMINATION

 

(a)       The
Employer shall have the right at any time to terminate the Plan by delivering to the Trustee and Administrator written notice
of such termination. Upon any full or partial termination, all amounts credited to the affected Participants’ Accounts shall
become 100% Vested as provided in Section 7.4 and shall not thereafter be subject to forfeiture, and all unallocated amounts (other
than the Unallocated Suspense Account), including Forfeitures, shall be allocated to the accounts of all Participants in accordance
with the provisions hereof.

 

(b)       Upon
the full termination of the Plan, the Employer shall direct the distribution of the assets of the Trust Fund to Participants in
a manner which is consistent with and satisfies the provisions of Sections 7.5 and 7.6. Except as permitted by Regulations, the
termination of the Plan shall not result in the reduction of “Section 411(d)(6) protected benefits” in accordance
with Section 9.1(c).

 

		9.3	MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

 

This Plan and Trust may be merged or consolidated
with, or its assets and/or liabilities may be transferred to any other plan and trust only if the benefits which would be received
by a Participant of this Plan, in the event of a termination of the Plan immediately after such transfer, merger or consolidation,
are at least equal to the benefits the Participant would have received if the Plan had terminated immediately before the transfer,
merger or consolidation, and such transfer, merger or consolidation does not otherwise result in the elimination or reduction
of any “Section 411(d)(6) protected benefits” in accordance with Section 9.1(c).

 

ARTICLE X 

TOP HEAVY

 

		10.1	TOP HEAVY PLAN REQUIREMENTS

 

For any Top Heavy Plan Year, the Plan shall provide
the special vesting requirements of Code Section 416(b) pursuant to Section 7.4 of the Plan and the special minimum allocation
requirements of Code Section 416(c) pursuant to Section 4.3 of the Plan.

 

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		10.2	DETERMINATION OF TOP HEAVY STATUS

 

(a)          This
Plan shall be a Top Heavy Plan for any Plan Year in which, as of the “determination date,” (1) the Present Value of
Accrued Benefits of Key Employees and (2) the sum of the Aggregate Accounts of Key Employees under this Plan and all plans of
an Aggregation Group, exceeds sixty percent (60%) of the Present Value of Accrued Benefits and the Aggregate Accounts of all Key
and Non-Key Employees under this Plan and all plans of an Aggregation Group.

 

If any Participant
is a Non-Key Employee for any Plan Year, but such Participant was a Key Employee for any prior Plan Year, such Participant’s
Present Value of Accrued Benefit and/or Aggregate Account balance shall not be taken into account for purposes of determining
whether this Plan is a Top Heavy Plan (or whether any Aggregation Group which includes this Plan is a Top Heavy Group). In addition,
if a Participant or Former Participant has not performed any services for any Employer maintaining the Plan at any time during
the one-year period ending on the “determination date,” any accrued benefit for such Participant or Former Participant
shall not be taken into account for the purposes of determining whether this Plan is a Top Heavy Plan.

 

(b)          Aggregate
Account: A Participant’s Aggregate Account as of the “determination date” is the sum of:

 

(1)          the
Participant’s Account balance as of the most recent valuation occurring within a twelve (12) month period ending on the
“determination date.” However, with respect to Employees not performing services for the Employer during the year
ending on the “determination date,” the Participant’s Account balance as of the most recent valuation occurring
within a twelve (12) month period ending on the “determination date” shall not be taken into account for purposes
of this Section.

 

(2)          an
adjustment for any contributions due as of the “determination date.” Such adjustment shall be the amount of any contributions
actually made after the Valuation Date but due on or before the “determination date,” except for the first Plan Year
when such adjustment shall also reflect the amount of any contributions made after the “determination date” that are
allocated as of a date in that first Plan Year.

 

(3)          any
Plan distributions made within the Plan Year that includes the “determination date” or, with respect to distributions
made for a reason other than severance from employment, disability or death, within the five (5) preceding Plan Years. The preceding
sentence shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated
with the Plan under Code Section 416(g)(2)(A)(i). In the case of distributions made after the Valuation Date and prior to the
“determination date,” such distributions are not included as distributions for top heavy purposes to the extent that
such distributions are already included in the Participant’s Aggregate Account balance as of the Valuation Date.

 

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(4)          any
Employee contributions, whether voluntary or mandatory. However, amounts attributable to tax deductible qualified voluntary employee
contributions shall not be considered to be a part of the Participant’s Aggregate Account balance.

 

(5)          with
respect to unrelated rollovers and plan-to-plan transfers (ones which are both initiated by the Employee and made from a plan
maintained by one employer to a plan maintained by another employer), if this Plan provides the rollovers or plan-to-plan transfers,
it shall always consider such rollovers or plan-to-plan transfers as a distribution for the purposes of this Section. If this
Plan is the plan accepting such rollovers or plan-to-plan transfers, it shall not consider such rollovers or plan-to-plan transfers
as part of the Participant’s Aggregate Account balance.

 

(6)          with
respect to related rollovers and plan-to-plan transfers (ones either not initiated by the Employee or made to a plan maintained
by the same employer), if this Plan provides the rollover or plan-to-plan transfer, it shall not be counted as a distribution
for purposes of this Section. If this Plan is the plan accepting such rollover or plan-to-plan transfer, it shall consider such
rollover or plan-to-plan transfer as part of the Participant’s Aggregate Account balance, irrespective of the date on which
such rollover or plan-to-plan transfer is accepted.

 

(7)          For
the purposes of determining whether two employers are to be treated as the same employer in (5) and (6) above, all employers aggregated
under Code Sections 414(b), (c), (m) and (o) are treated as the same employer.

 

(c)          “Aggregation
Group” means either a Required Aggregation Group or a Permissive Aggregation Group as hereinafter determined.

 

(1)          Required
Aggregation Group: In determining a Required Aggregation Group hereunder, each plan of the Employer in which a Key Employee is
a participant in the Plan Year containing the Determination Date or any of the four preceding Plan Years, and each other plan
of the Employer which enables any plan in which a Key Employee participates to meet the requirements of Code Sections 401(a)(4)
or 410, will be required to be aggregated. Such group shall be known as a Required Aggregation Group.

 

    62 

     

    

  

In the case
of a Required Aggregation Group, each plan in the group will be considered a Top Heavy Plan if the Required Aggregation Group
is a Top Heavy Group. No plan in the Required Aggregation Group will be considered a Top Heavy Plan if the Required Aggregation
Group is not a Top Heavy Group.

 

(2)          Permissive
Aggregation Group: The Employer may also include any other plan not required to be included in the Required Aggregation Group,
provided the resulting group, taken as a whole, would continue to satisfy the provisions of Code Sections 401(a)(4) and 410. Such
group shall be known as a Permissive Aggregation Group.

 

In the case
of a Permissive Aggregation Group, only a plan that is part of the Required Aggregation Group will be considered a Top Heavy Plan
if the Permissive Aggregation Group is a Top Heavy Group. No plan in the Permissive Aggregation Group will be considered a Top
Heavy Plan if the Permissive Aggregation Group is not a Top Heavy Group.

 

(3)          Only
those plans of the Employer in which the Determination Dates fall within the same calendar year shall be aggregated in order to
determine whether such plans are Top Heavy Plans.

 

(4)          An
Aggregation Group shall include any terminated plan of the Employer if it was maintained within the last five (5) years ending
on the Determination Date.

 

(d)         “Determination
date” means (a) the last day of the preceding Plan Year, or (b) in the case of the first Plan Year, the last day of such
Plan Year.

 

(e)          Present
Value of Accrued Benefit: In the case of a defined benefit plan, the Present Value of Accrued Benefit for a Participant other
than a Key Employee, shall be as determined using the single accrual method used for all plans of the Employer and Affiliated
Employers, or if no such single method exists, using a method which results in benefits accruing not more rapidly than the slowest
accrual rate permitted under Code Section 411(b)(1)(C). The determination of the Present Value of Accrued Benefit shall be determined
as of the most recent valuation date 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 thereunder for the first and second plan years of a defined benefit plan.

 

(f)           “Top
Heavy Group” means an Aggregation Group in which, as of the Determination Date, the sum of:

 

(1)          the
Present Value of Accrued Benefits of Key Employees under all defined benefit plans included in the group, and

 

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(2)           the
Aggregate Accounts of Key Employees under all defined contribution plans included in the group, exceeds sixty percent (60%)
of a similar sum determined for all Participants. 

 

ARTICLE XI 

MISCELLANEOUS

 

		11.1	PARTICIPANT’S RIGHTS

 

This Plan shall not be deemed to constitute a contract
between the Employer and any Participant or to be a consideration or an inducement for the employment of any Participant or Employee.
Nothing contained in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of
the Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time regardless of
the effect which such discharge shall have upon the Employee as a Participant of this Plan.

 

		11.2	ALIENATION

 

(a)           Subject
to the exceptions provided below, and as otherwise permitted by the Code and Act, no benefit which shall be payable out of the
Trust Fund to any person (including a Participant or the Participant’s Beneficiary) shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject
to, the debts, contracts, liabilities, engagements, or torts of any such person, nor shall it be subject to attachment or legal
process for or against such person, and the same shall not be recognized by the Trustee, except to such extent as may be required
by law.

 

(b)           Subsection
(a) shall not apply to a “qualified domestic relations order” defined in Code Section 414(p), and those other domestic
relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984. The
Administrator shall establish a written procedure to determine the qualified status of domestic relations orders and to administer
distributions under such qualified orders. Further, to the extent provided under a “qualified domestic relations order,”
a former spouse of a Participant shall be treated as the spouse or surviving spouse for all purposes under the Plan.

 

(c)           Subsection
(a) shall not apply to an offset to a Participant’s accrued benefit against an amount that the Participant is ordered or
required to pay the Plan with respect to a judgment, order, or decree issued, or a settlement entered into in accordance with
Code Sections 401(a)(13)(C) and (D).

 

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		11.3	CONSTRUCTION OF PLAN

 

This Plan and Trust shall be construed and enforced
according to the Code, the Act and the laws of the State of South Carolina, other than its laws respecting choice of law, to the
extent not pre-empted by the Act.

 

		11.4	GENDER AND NUMBER

 

Wherever any words are used herein in the masculine,
feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would
so apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also
used in the other form in all cases where they would so apply.

 

		11.5	LEGAL ACTION

 

In the event any claim, suit, or proceeding is brought
regarding the Trust and/or Plan established hereunder to which the Trustee, the Employer or the Administrator may be a party,
and such claim, suit, or proceeding is resolved in favor of the Trustee, the Employer or the Administrator, they shall be entitled
to be reimbursed from the Trust Fund for any and all costs, attorney’s fees, and other expenses pertaining thereto incurred
by them for which they shall have become liable provided there has been no breach of fiduciary duty by the party seeking reimbursement.

 

		11.6	PROHIBITION AGAINST DIVERSION OF FUNDS

 

(a)           Except
as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or of the Trust,
by termination of either, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement
or by any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds contributed
thereto to be used for, or diverted to, purposes other than the exclusive benefit of Participants, Former Participants, or their
Beneficiaries.

 

(b)          In
the event the Employer shall make an excessive contribution under a mistake of fact pursuant to Act Section 403(c)(2)(A), the
Employer may demand repayment of such excessive contribution at any time within one (1) year following the time of payment and
the Trustees shall return such amount to the Employer within the one (1) year period. Earnings of the Plan attributable to the
contributions may not be returned to the Employer but any losses attributable thereto must reduce the amount so returned.

  

    65 

     

    

 

(c)          Except
for Section 4.1(b), any contribution by the Employer to the Trust Fund is conditioned upon the deductibility of the contribution
by the Employer under the Code and, to the extent any such deduction is disallowed, the Employer may, within one (1) year following
the final determination of the disallowance, whether by agreement with the Internal Revenue Service or by final decision of a
competent jurisdiction, demand repayment of such disallowed contribution and the Trustee shall return such contribution within
one (1) year following the disallowance. Earnings of the Plan attributable to the contribution may not be returned to the Employer,
but any losses attributable thereto must reduce the amount so returned.

 

		11.7	EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE

 

The Employer, Administrator and Trustee, and their
successors, shall not be responsible for the validity of any Contract issued hereunder or for the failure on the part of the insurer
to make payments provided by any such Contract, or for the action of any person which may delay payment or render a Contract null
and void or unenforceable in whole or in part.

 

		11.8	INSURER’S PROTECTIVE CLAUSE

 

Except as otherwise
agreed upon in writing between the Employer and the insurer, an insurer which issues any Contracts hereunder shall not have any
responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The insurer shall be protected and
held harmless in acting in accordance with any written direction of the Trustee, and shall have no duty to see to the application
of any funds paid to the Trustee, nor be required to question any actions directed by the Trustee. Regardless of any provision
of this Plan, the insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to the
terms of any Contract which it issues hereunder, or the rules of the insurer.

 

		11.9	RECEIPT AND RELEASE FOR PAYMENTS

 

Any payment to any Participant, the Participant’s
legal representative, Beneficiary, or to any guardian or committee appointed for such Participant or Beneficiary in accordance
with the provisions of the Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustee
and the Employer, either of whom may require such Participant, legal representative, Beneficiary, guardian or committee, as a
condition precedent to such payment, to execute a receipt and release thereof in such form as shall be determined by the Trustee
or Employer.

 

		11.10	ACTION BY THE EMPLOYER

 

Whenever the Employer under
the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by
a person duly authorized by its legally constituted authority.

 

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		11.11	NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

 

The “named Fiduciaries” of this Plan
are (1) the Employer, (2) the Administrator and (3) the Trustee, and (4) any Investment Manager appointed hereunder. The named
Fiduciaries shall have only those specific powers, duties, responsibilities, and obligations as are specifically given them under
the Plan including, but not limited to, any agreement allocating or delegating their responsibilities, the terms of which are
incorporated herein by reference. In general, the Employer shall have the sole responsibility for making the contributions provided
for under Section 4.1; and shall have the authority to appoint and remove the Trustee and the Administrator; to formulate the
Plan’s “funding policy and method;” and to amend or terminate, in whole or in part, the Plan. The Administrator
shall have the sole responsibility for the administration of the Plan, including, but not limited to, the items specified in Article
II of the Plan, as the same may be allocated or delegated thereunder. The Trustee shall have the sole responsibility of management
of the assets held under the Trust, except to the extent directed pursuant to Article II or with respect to those assets, the
management of which has been assigned to an Investment Manager, who shall be solely responsible for the management of the assets
assigned to it, all as specifically provided in the Plan. Each named Fiduciary warrants that any directions given, information
furnished, or action taken by it shall be in accordance with the provisions of the Plan, authorizing or providing for such direction,
information or action. Furthermore, each named Fiduciary may rely upon any such direction, information or action of another named
Fiduciary as being proper under the Plan, and is not required under the Plan to inquire into the propriety of any such direction,
information or action. It is intended under the Plan that each named Fiduciary shall be responsible for the proper exercise of
its own powers, duties, responsibilities and obligations under the Plan as specified or allocated herein. No named Fiduciary shall
guarantee the Trust Fund in any manner against investment loss or depreciation in asset value. Any person or group may serve in
more than one Fiduciary capacity.

 

		11.12	HEADINGS

 

The headings and subheadings of this Plan have been
inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.

 

		11.13	ELECTRONIC MEDIA

 

The Administrator may use telephonic or electronic
media to satisfy any notice requirements required by this Plan, to the extent permissible under regulations (or other generally
applicable guidance). In addition, a Participant’s consent to an immediate distribution may be provided through telephonic
or electronic means, to the extent permissible under regulations (or other generally applicable guidance). The Administrator also
may use telephonic or electronic media to conduct plan transactions such as enrolling participants, making (and changing) deferral
elections, electing (and changing) investment allocations, applying for Plan loans, and other transactions, to the extent permissible
under regulations (or other generally applicable guidance).

 

		11.14	PLAN CORRECTION

 

The Administrator in conjunction with the Employer
may undertake such correction of Plan errors as the Administrator deems necessary, including correction to preserve tax qualification
of the Plan under Code Section 401(a) or to correct a fiduciary breach under the Act. Without limiting the Administrator’s
authority under the prior sentence, the Administrator, as it determines to be reasonable and appropriate, may undertake correction
of Plan document, operational, demographic and employer eligibility failures under a method described in the Plan or under the
IRS Employee Plans Compliance Resolution System (“EPCRS”) or any successor program to EPCRS. The Administrator, as
it determines to be reasonable and appropriate, also may undertake or assist the appropriate fiduciary or plan official in undertaking
correction of a fiduciary breach, including correction under the DOL Voluntary Fiduciary Correction Program (“VFC”)
or any successor program to VFC.

 

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		11.15	APPROVAL BY INTERNAL REVENUE SERVICE

 

Notwithstanding anything herein to the contrary,
if, pursuant to an application for qualification filed by or on behalf of the Plan by the time prescribed by law for filing the
Employer’s return for the taxable year in which the Plan is adopted, or such later date that the Secretary of the Treasury
may prescribe, the Commissioner of Internal Revenue Service or the Commissioner’s delegate should determine that the Plan
does not initially qualify as a tax-exempt plan under Code Sections 401 and 501, and such determination is not contested, or if
contested, is finally upheld, then if the Plan is a new plan, it shall be void ab initio and all amounts contributed to the Plan
by the Employer, less expenses paid, shall be returned within one (1) year and the Plan shall terminate, and the Trustee shall
be discharged from all further obligations. If the disqualification relates to an amended plan, then the Plan shall operate as
if it had not been amended.

 

		11.16	UNIFORMITY

 

All provisions of this Plan shall be interpreted
and applied in a uniform, nondiscriminatory manner. In the event of any conflict between the terms of this Plan and any Contract
purchased hereunder, the Plan provisions shall control.

 

		11.17	SECURITIES AND EXCHANGE COMMISSION APPROVAL

 

The Employer may request an interpretative letter
from the Securities and Exchange Commission stating that the transfers of Company Stock contemplated hereunder do not involve
transactions requiring a registration of such Company Stock under the Securities Act of 1933. In the event that a favorable interpretative
letter is not obtained, the Employer reserves the right to amend the Plan and Trust retroactively to their Effective Dates in
order to obtain a favorable interpretative letter or to terminate the Plan.

 

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IN WITNESS
WHEREOF, this Plan has been executed the day and year first above written.

  

	 	The Bank of South Carolina
	 	 
	 	By	
	 	 	EMPLOYER REPRESENTATIVE
	 	 	 
	 	By:	 
	 	 	 
	 	TRUSTEE - Fleetwood S. Hassell
	 	 
	 	TRUSTEE - Douglas H. Sass
	 	 
	 	TRUSTEE - Sheryl G. Sharry
	 	 
	 	TRUSTEE - Eugene H. Walpole, IV

    69 

     

    

 

CERTIFICATE
OF CORPORATE RESOLUTION

 

The undersigned
Secretary of The Bank of South Carolina (the Corporation) hereby certifies that the following resolutions were duly adopted by
the board of directors of the Corporation on _____________________,
and that such resolutions have not been modified or rescinded as of the date hereof:

 

RESOLVED, that the form of amended Employee Stock
Ownership Plan and Trust effective January 1, 2017, presented to this meeting is hereby approved and adopted and that the proper
officers of the Corporation are hereby authorized and directed to execute and deliver to the Trustee of the Plan one or more counterparts
of the Plan.

 

RESOLVED, that for purposes
of the limitations on contributions and benefits under the Plan, prescribed by Section 415 of the Internal Revenue Code, the “limitation
year” shall be the Plan Year.

 

RESOLVED, that not later than the due date (including
extensions hereof) of the Corporation’s federal income tax return for each of its fiscal years hereafter, the Corporation
shall contribute to the Plan for each such fiscal year such amount as shall be determined by the board of directors of the Corporation
and that the Treasurer of the Corporation is authorized and directed to pay such contribution to the Trustee of the Plan in cash
or property and to designate to the Trustee the year for which such contribution is made.

 

RESOLVED, that the proper officers of the Corporation
shall act as soon as possible to notify the employees of the Corporation of the adoption of the Employee Stock Ownership Plan
by delivering to each employee a copy of the summary description of the Plan in the form of the Summary Plan Description presented
to this meeting, which form is hereby approved.

 

The undersigned further certifies that attached hereto
as Exhibits A, B and C, respectively, are true copies of The Bank of South Carolina Employee Stock Ownership Plan as amended and
restated, Summary Plan Description and Funding Policy and Method approved and adopted in the foregoing resolutions.

	 	 	 
	 	Secretary	 
	 	 	 
	 	Date	 

 

     

     

    

  

THE BANK OF SOUTH CAROLINA

EMPLOYEE STOCK OWNERSHIP
PLAN

 

FUNDING POLICY AND METHOD

 

A pension benefit plan (as defined in the Employee
Retirement Income Security Act of 1974) has been adopted by the company for the purpose of rewarding long and loyal service to
the company by providing to employees additional financial security at retirement. Incidental benefits are provided in the case
of disability, death or other termination of employment.

 

Since the principal purpose of the plan is to provide
benefits at normal retirement age, the principal goal of the investment of the funds in the plan should be both security and long-term
stability with moderate growth commensurate with the anticipated retirement dates of participants. Investments, other than “fixed
dollar” investments, should be included among the plan’s investments to prevent erosion by inflation. However, investments
should be sufficiently liquid to enable the plan, on short notice, to make some distributions in the event of the death or disability
of a participant.Exhibit

Exhibit 10.46

Neither this document, nor any stock option agreement connected with it, is an approved prospectus for the purposes of section 85(1) of the Financial Services and Markets Act 2000 (“FSMA”) and no offer of transferable securities to the public (for the purposes of section 102B of FSMA) is being made in connection with the UK Sub-Plan of the 2010 Equity Incentive Plan of Alimera Sciences, Inc. (the "Sub-Plan").  The Sub-Plan is exclusively available to bona fide employees and former employees of Alimera Sciences, Inc.,  Alimera Sciences Limited and any other UK Subsidiary.

UK SUB-PLAN TO THE  
ALIMERA SCIENCES, INC. 
2010
EQUITY INCENTIVE PLAN

Additional Terms and Conditions for Options received by Employees Resident in the UK

		
	1.
	The purpose of this Sub-Plan is to provide incentives for present and future UK tax resident employees of Alimera Sciences Limited through the grant of options over shares of Common Stock of Alimera Sciences, Inc. (the "Company").

		
	2.
	Capitalized terms are defined in the Company’s 2010 Equity Incentive Plan (the “Plan”), subject to the provisions of this Sub-Plan. 

		
	3.
	References to ISOs and NSOs shall not apply to Options granted under the Sub-Plan.  

		
	4.
	Options granted under this Sub-Plan shall be taxed in the UK as Unapproved Options.

		
	5.
	This Sub-Plan is governed by THE Plan and all its provisions shall be identical to those of the Plan SAVE THAT (i) "Sub-Plan" shall be substituted for "Plan" where applicable and (ii) the following provisions shall be as stated in this Sub-Plan in order to accommodate the specific requirements of the laws of England and Wales and the appropriate UK tax legislation.

		
	6.
	ARTICLE 1. INTRODUCTION.

The first paragraph of this Article shall be replaced with the following:
“The Board adopted the Plan effective as of the date of the relevant board resolution.  The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees with exceptional qualifications and (c) linking Employees directly to stockholder interests through increased stock ownership.  The Plan seeks to achieve this purpose by providing for Awards in the form of Options or Stock Units.”
		
	7.
	ARTICLE 2. ADMINISTRATION.

The words “Outside Directors and Consultants”; “Consultants and”; and “and Consultants who are not Outside Directors”; shall be deleted where they appear.
		
	8.
	ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

Article 3.3 shall be replaced with the following:
“Shares Returned to Reserve.  To the extent that Options or Stock Units are forfeited or expire for any other reason before being exercised or settled in full, then the Common 

Shares subject to such Options or Stock Units shall again become available for issuance under the Plan. If Stock Units are settled, then only the number of Common Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Common Shares issued upon the exercise of Options are reacquired by the Company pursuant to a forfeiture provision or for any other reason, then such Common Shares shall again become available for issuance under the Plan. Shares applied to pay the Exercise Price of Options or to satisfy tax withholding obligations related to any Award shall again become available for issuance under the Plan."
		
	9.
	ARTICLE 4. ELIGIBILITY.

Article 4.1 and 4.2 should be deleted in their entirety and replaced with the following:
“Unapproved Options. Only Employees shall be eligible for the grant of Options under the Plan.
Other Grants. Only Employees shall be eligible for the grant of Stock Units under the Plan.”
		
	10.
	ARTICLE 5. OPTIONS.

Article 5.1 shall be amended so that the third sentence is replaced with the following:
“The Stock Option Agreement shall specify that the Option is an Unapproved Option.” 
Article 5.4 shall be replaced with the following: 
“Exercisability and Term.  Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable.  The Stock Option Agreement shall also specify the term of the Option. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service “
Article 5.5 shall be amended so that the second sentence is deleted.
Article 5.6 shall be replaced with the following:
 “Death of Optionee. After an Optionee’s death, any exercisable Options held by such Optionee may be exercised by his or her Personal Representative within 12 months of the Optionee’s death.”
Article 5.8(b) shall be deleted in its entirety.
11.     ARTICLE 6. PAYMENT FOR OPTION SHARES.
Article 6.1 shall be amended to that the words “cash equivalents” is replaced with the word “cheque”.
Article 6.2 and 6.4 shall be deleted in their entirety. 
12.    The following Articles shall be deleted in their entirety:
ARTICLE 7. STOCK APPRECIATION RIGHTS.
ARTICLE 8. RESTRICTED SHARES.

13.     ARTICLE 10. OTHER AWARDS.
Article10.1 shall be deleted in its entirety and the second sentence of 10.2 should be deleted in its entirety.
14.     ARTICLE 11. PROTECTION AGAINST DILUTION.
In this Article, the words: “SARs, Restricted Shares”; “or SARs”; “(whether or not the Options are ISOs”) shall be deleted whether they appear.
15.    ARTICLE 12. PAYMENT OF DIRECTORS’ FEES IN SECURITIES.
This Article shall be deleted in its entirety.
16.     ARTICLE 13. LIMITATION ON RIGHTS.
References to “Outside Directors or Consultants” shall be deleted together with the words “with or without cause”.
17.     ARTICLE 14. WITHHOLDING TAXES.
This Article shall be deleted in its entirety and replaced with the following:
“In the event that the Company or any Subsidiary determines that it is required to account to HM Revenue & Customs for any Option Tax Liability or Secondary NIC Liability (under the Stock Option Agreement) arising from the grant, exercise, assignment, release, cancellation or any other disposal of an Option or arising out of the acquisition, retention and disposal of the shares acquired pursuant to the Option, the Optionee, as a condition to the issue of shares in connection with the exercise of an Option, or on the grant, assignment, release or cancellation of an Option, shall make such arrangements satisfactory to the Company to enable it or any Subsidiary to satisfy any requirement to account for any Option Tax Liability (and, if applicable, any Secondary NIC Liability) that may arise in connection with the Option or the award of Common Shares pursuant to it including, but no limited to, arrangements satisfactory to the Company for withholding Common Shares that would otherwise be issued pursuant to the Stock Option Agreement.”

18.    ARTICLE 15. FUTURE OF THE PLAN.

Article 15.1 reference to “IPO date” shall be deleted and replaced with the words “date of the relevant board resolution” and the second sentence shall be deleted.
Article 15.3 shall be amended to include the following sentence at the end of the Article: “The Plan will terminate automatically on the termination of the Alimera Sciences, Inc. 2010 Equity Incentive Plan.”
Article 15.3 shall be deleted in its entirety.
19.     ARTICLE 16. DEFINITIONS.
The following definitions shall be amended to read as follows:
“Award” means an award of Options or Stock Units.

 “Cause” means
		
	(a)
	An unauthorized use or disclosure by the Participant of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company;

		
	(b)
	A material breach by the Participant of any agreement between the Optionee and the Company;

		
	(c)
	A material failure by the Participant to comply with the Company’s written policies or rules;

		
	(d)
	The Participant’s conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State thereof, or crime under any other applicable law;

(e)    The Participant’s gross negligence or willful misconduct;
		
	(f)
	A continuing failure by the Participant to perform assigned duties after receiving written notification of such failure from the Board; or

		
	(g)
	A failure by the Participant to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested the Participant’s cooperation.

“Employee” means an employee or full-time director of the Company, a Parent, a Subsidiary or an Affiliate.
“Exercise Price,” in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement.
“Option” means an Unapproved Option granted under the Plan and entitling the holder to purchase Common Shares.
“Optionee” means an individual or estate holding an Option.
“Service” means service as an Employee or full-time director.
The following definitions shall be deleted in their entirety:
“Consultant”; “IPO Date”; “NSO”; “Performance Cash Award”; “Performance Period”; “Restricted Stock Agreement”; “SAR”; “SAR Agreement”.
The following definitions shall be inserted:
"Award Tax Liability" means any liability or obligation of the Company and/or any Subsidiary to account (or pay) for income tax (under the UK withholding system of PAYE (pay as you earn)) or any other taxation provisions and primary class 1 National Insurance Contributions in the United Kingdom to the extent arising from the grant, exercise, assignment, release, cancellation or any other disposal of a Stock Unit or arising out of the acquisition, retention and disposal of the Common Shares acquired under this Plan.
“Data” means certain personal information about the Optionee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number, salary, nationality, job title, any stock, units or directorships held in the Company or any 

Subsidiary, details of all options or other entitlements to shares awarded, cancelled, exercised, vested, unvested, or outstanding in the Optionee’s favour.
“Data Recipients” means third parties assisting the Company in the implementation, administration and management of the Plan.
"ITEPA" means the Income Tax (Earnings and Pensions) Act 2003.

“Joint Election” means an election (in such terms and such form as provided in paragraphs 3A and 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992), which has been approved by HM Revenue & Customs for the transfer of the whole of or any liability of the Secondary Contributor for any Secondary NIC Liability. 

“Option Tax Liability” means any liability or obligation of the Company and/or Subsidiary to account (or pay) for income tax (under the UK withholding system of PAYE (pay as you earn)) or any other taxation provisions and primary class 1 National Insurance Contributions in the United Kingdom to the extent arising from the grant, exercise, assignment, release, cancellation or any other disposal of an Option or arising out of the acquisition, retention and disposal of the Common Shares acquired under this Plan.

“Personal Representative” means the personal representative(s) of an Optionee (being either the executors of his will or if he dies intestate the duly appointed administrator(s) or his estate) who have provided to the Board evidence of their appointment as such.

“Secondary Contributor” means a person or company who has a liability to account (or pay) the Secondary NIC Liability to Revenue and Customs.

“Secondary NIC Liability” means any liability to employer’s Class 1 National Insurance Contributions to the extent arising from the grant, exercise, release or cancellation of an Option or arising out of the acquisition, retention and disposal of the Common Shares acquired pursuant to an Option.

“Section 431 Election” means an election made under section 431 of ITEPA.

“Taxable Event” means any occasion on which an Option Tax Liability or Secondary NIC Liability arises in connection with an Option or any award of Common Shares under it.

“UK Subsidiary” means a Subsidiary of the Company which is incorporated in the UK. 

“Unapproved Option” means an option over shares in the Company that is neither an HM Revenue & Customs approved company share option (under Schedule 4 ITEPA) nor an enterprise management incentive (EMI) option which meets the requirements of Schedule 5 ITEPA. 

20.     APPENDIX A
    
This appendix shall be deleted in its entirety.

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