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Exhibit 10.04    
    

 
 

DEXCOM, INC.
  2005 EMPLOYEE STOCK PURCHASE PLAN    
    

 
 

ADOPTED BY THE BOARD OF DIRECTORS: FEBRUARY 9, 2005
  APPROVED BY THE STOCKHOLDERS: MARCH 21, 2005    
    

        1.     Establishment of Plan.  Dexcom, Inc., a Delaware corporation (the
"Company") proposes to grant options for purchase of the Company's Common Stock to eligible employees of the Company and its Participating Corporations
(as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this "Plan"). For purposes of this Plan,
"Parent" and "Subsidiary" shall have the same meanings as "parent corporation" and "subsidiary
corporation" in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the "Code").
"Participating Corporations" are the Company and any Parents or Subsidiaries that the Board of Directors of the Company (the
"Board") designates from time to time as corporations that shall participate in this Plan. The Company intends this Plan to qualify as an "employee
stock purchase plan" under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so construed. Any term not expressly defined in this
Plan but defined for purposes of Section 423 of the Code shall have the same definition herein. A total of one hundred and fifty thousand (150,000) shares of the Company's Common Stock is
reserved for issuance under this Plan. In addition, on each January 1 (commencing with January 1, 2006), the aggregate number of shares of the Company's Common Stock reserved for
issuance under the Plan shall be increased automatically by a number of shares equal to 1% of the total number of outstanding shares of the Company Common Stock on the immediately preceding
December 31; provided, that the Board or the Committee may in its sole discretion reduce the amount of the increase in any particular year; and,  provided
further, that the aggregate number of shares issued over the term of this Plan shall not exceed three million (3,000,000) shares of Common
Stock. The number of shares reserved for issuance under this Plan and the maximum number of shares that may be issued under this Plan reflect the 1-for-2 reverse split of the
Common Stock effected on or before the Company's initial public offering and shall be subject to adjustments effected in accordance with Section 14 of this Plan. 

        2.     Purpose.  The purpose of this Plan is to provide eligible employees of the Company and Participating
Corporations with a convenient means of acquiring an equity interest in the Company through payroll deductions, to enhance such employees' sense of participation in the affairs of the Company and
Participating Corporations, and to provide an incentive for continued employment. 

        3.     Administration.  This Plan shall be administered by the Compensation Committee of the Board (the
"Committee"). Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any successor provision in the Code, all
questions of interpretation or application of this Plan shall be determined by the Committee and its decisions shall be final and binding upon all participants. Members of the Committee shall receive
no compensation for their services in connection with the administration of this Plan, other than standard fees as established from time to time by the Board for services rendered by Board members
serving on Board committees. All expenses incurred in connection with the administration of this Plan shall be paid by the Company. 

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        4.     Eligibility.  Any employee of the Company or the Participating Corporations is eligible to participate in an
Offering Period (as hereinafter defined) under this Plan except the following: 

        (a)   employees
who are not employed by the Company or a Participating Subsidiary prior to the beginning of such Offering Period or prior to such other time period as
specified by the Committee, except that employees who are employed on the Effective Date of the Registration Statement filed by the Company with the Securities and Exchange Commission
("SEC") under the Securities Act of 1933, as amended (the "Securities Act") registering the initial
public offering of the Company's Common Stock shall be eligible to participate in the first Offering Period under the Plan; 

        (b)   employees
who are customarily employed for twenty (20) hours or less per week; 

        (c)   employees
who are customarily employed for five (5) months or less in a calendar year; 

        (d)   employees
who have been an employee of the Company for less than three (3) months prior to the first day of an offering period; 

        (e)   employees
who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, own stock or hold options
to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Participating Corporations or who, as a result
of being granted an option under this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting
power or value of all classes of stock of the Company or any of its Participating Corporations; and 

        (f)    individuals
who provide services to the Company or any of its Participating Corporations as independent contractors who are reclassified as common law employees for any
reason except for federal income and employment tax purposes. 

        5.     Offering Dates.  The offering periods of this Plan (each, an "Offering
Period") shall be of twelve (12) months duration commencing on February 1 and August 1 of each year and respectively ending on July 31 and
January 31 of each year; provided, however, that the first such Offering Period shall commence on the date on which the registration statement
filed by the Company with the SEC under the Securities Act registering the initial public offering of the Company's Common Stock is declared effective by the SEC (the "First
Offering Date") and shall end on July 31, 2006 (the "First Offering Period"). Each Offering Period shall consist of two
(2) six month purchase periods (individually, a "Purchase Period") during which payroll deductions of the participants are accumulated under this
Plan. The First Offering Period shall consist of no more than three (3) and no fewer than two (2) Purchase Periods, any of which may be greater or less than six months as determined by
the Committee. The first business day of each Offering Period is referred to as the "Offering Date." The last business day of each Purchase Period is
referred to as the "Purchase Date." The Committee shall have the power to change the Offering Dates, the Purchase Dates and the duration of Offering
Periods or Purchase Periods without stockholder approval if such change is announced prior to the relevant Offering Period or prior to such other time period as specified by the Committee. 

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        6.     Participation in this Plan.  Eligible employees may become participants in an Offering Period under this Plan
on the Offering Date after satisfying the eligibility requirements by delivering a subscription agreement to the Company prior to such Offering Date, or such other time period as specified by the
Committee; provided, however, that all eligible employees employed on or before the First Offering Date will be automatically enrolled in the First
Offering Period. Notwithstanding the foregoing, (i) an eligible employee may elect to decrease the number of shares of Common Stock that such employee would otherwise be permitted to purchase
pursuant to Section 7 below for the First Offering Period and/or purchase shares of Common Stock for the First Offering Period through payroll deductions by delivering a subscription agreement
to the Company within thirty (30) days following the First Offering Date after the filing of an effective registration statement pursuant to Form S-8 and (ii) the
Committee may set a later time for filing the subscription agreement authorizing payroll deductions for all eligible employees with respect to a given Offering Period. Except as provided above with
respect to the First Offering Period, an eligible employee who does not deliver a subscription agreement to the Company after becoming eligible to participate in an Offering Period shall not
participate in that Offering Period or any subsequent Offering Period unless such employee enrolls in this Plan by filing a subscription agreement with the Company prior to such Offering Period, or
such other time period as specified by the Committee. Once an employee becomes a participant in an Offering Period by filing a subscription agreement, such employee will automatically participate in
the Offering Period commencing immediately following the last day of the prior Offering Period unless the employee withdraws or is deemed to withdraw from this Plan or terminates further participation
in the Offering Period as set forth in Section 11 below. Such participant is not required to file any additional subscription agreement in order to continue participation in this Plan. 

        7.     Grant of Option on Enrollment.  Enrollment by an eligible employee in this Plan with respect to an Offering
Period will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock of the Company
determined by a fraction, the numerator of which is the amount accumulated in such employee's payroll deduction account during such Purchase Period and the denominator of which is the lower of
(i) eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Offering Date (but in no event less than the par value of a share of the
Company's Common Stock), or (ii) eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Purchase Date (but in no event less than the par
value of a share of the Company's Common Stock), provided, however, that for each Purchase Period within the First Offering Period the numerator shall
be ten percent (10%) of the eligible employee's compensation for such Purchase Period and provided,  further, that the number of shares
of the Company's Common Stock subject to any option granted pursuant to this Plan shall not exceed the lesser of
(x) the maximum number of shares set by the Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the maximum number of shares which may
be purchased pursuant to Section 10(b) below with respect to the applicable Purchase Date. The fair market value of a share of the Company's Common Stock shall be determined as provided in
Section 8 below. 

        8.     Purchase Price.  The purchase price per share at which a share of Common Stock will be sold in any Offering
Period shall be eighty-five percent (85%) of the lesser of: 

        (a)   The
fair market value on the Offering Date; or 

        (b)   The
fair market value on the Purchase Date.

        The
term "fair market value" means, as of any date, the value of a share of the Company's Common Stock determined as follows: 

        (a)   if
such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in  The Wall Street Journal; 

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        (b)   if
such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national
securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; or 

        (c)   if
such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average
of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal. 

Notwithstanding
the foregoing, for purposes of the First Offering Date, fair market value shall be the price per share at which shares of the Company's Common Stock are initially offered for sale to
the public by the Company's underwriters in the initial public offering of the Company's Common Stock pursuant to a registration statement filed with the SEC under the Securities Act. 

        9.     Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

        (a)   The
purchase price of the shares is accumulated by regular payroll deductions made during each Offering Period, provided,  however, that for the
First Offering Period the purchase price of the shares shall be paid by the eligible employee in cash on each Purchase Date within
the First Offering Period unless the eligible employee elects to purchase such shares through payroll deductions after the filing of an effective Form S-8 registration statement
pursuant to the second sentence of Section 6 above within thirty (30) days following the First Offering Period. The deductions are made as a percentage of the participant's compensation
in one percent (1%) increments not less than one percent (1%), nor greater than ten percent (10%) or such lower limit set by the Committee. Compensation shall mean all W-2 cash
compensation, including, but not limited to, base salary, wages, commissions, overtime, shift premiums, bonuses and incentive compensation, plus draws against commissions,  provided,
however, that for purposes of determining a participant's compensation, any election by such
participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election. Payroll deductions shall commence
on the first payday of the Offering Period and shall continue to the end of the Offering Period unless sooner altered or terminated as provided in this Plan. 

        (b)   A
participant may increase or decrease the rate of payroll deductions during an Offering Period by filing with the Company a new authorization for payroll deductions, in
which case the new rate shall become effective for the next payroll period commencing after the Company's receipt of the authorization and shall continue for the remainder of the Offering Period
unless changed as described below. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but not more than one (1) change may be made effective during
any Purchase Period. A participant may increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Company a new authorization for payroll deductions
prior to the beginning of such Offering Period, or such other time period as specified by the Committee. 

        (c)   A
participant may reduce his or her payroll deduction percentage to zero during an Offering Period by filing with the Company a request for cessation of payroll
deductions. Such reduction shall be effective beginning with the next payroll period after the Company's receipt of the request and no further payroll deductions will be made for the duration of the
Offering Period. Payroll deductions credited to the participant's account prior to the effective date of the request shall be used to purchase shares of Common Stock of the Company in accordance with
Section (e) below. A participant may not resume making payroll deductions during the Offering Period in which he or she reduced his or her payroll deductions to zero. 

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        (d)   All
payroll deductions made for a participant are credited to his or her account under this Plan and are deposited with the general funds of the Company. No interest
accrues on the payroll deductions. All payroll deductions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions. 

        (e)   On
each Purchase Date, so long as this Plan remains in effect and provided that the participant has not submitted a signed and completed withdrawal form before that date
which notifies the Company that the participant wishes to withdraw from that Offering Period under this Plan and have all payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply the funds then in the participant's account to the purchase of whole shares of Common Stock reserved under the option
granted to such participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The purchase price per share shall be as specified in
Section 8 of this Plan. Any cash remaining in a participant's account after such purchase of shares shall be refunded to such participant in cash, without interest; provided, however that any
amount remaining in such participant's account on a Purchase Date which is less than the amount necessary to purchase a full share of the Company shall be carried forward, without interest, into the
next Purchase Period or Offering Period, as the case may be. In the event that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date shall be returned to the
participant, without interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase Date. 

        (f)    As
promptly as practicable after the Purchase Date, the Company shall issue shares for the participant's benefit representing the shares purchased upon exercise of his
or her option. 

        (g)   During
a participant's lifetime, his or her option to purchase shares hereunder is exercisable only by him or her. The participant will have no interest or voting right
in shares covered by his or her option until such option has been exercised. 

        10.   Limitations on Shares to be Purchased.

        (a)   No
participant shall be entitled to purchase stock under this Plan at a rate which, when aggregated with participant's rights to purchase stock under all other employee
stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the Offering Date (or such other limit as may be imposed by the Code) for each calendar
year in which the employee participates in this Plan. The Company shall automatically suspend the payroll deductions of any participant as necessary to enforce such limit provided that when the
Company automatically resumes such payroll deductions, the Company must apply the rate in effect immediately prior to such suspension. 

        (b)   The
Committee may, in its sole discretion, set a new maximum number of shares which may be purchased by any employee at any single Purchase Date (hereinafter the
"Maximum Share Amount"), which shall then be the Maximum Share Amount for subsequent Offering Periods. If a new Maximum Share Amount is set, then all
participants must be notified of such Maximum Share Amount prior to the commencement of the next Offering Period for which it is to be effective. The Maximum Share Amount shall continue to apply with
respect to all succeeding Purchase Dates and Offering Periods unless revised by the Committee as set forth above. 

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        (c)   If
the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares then available for issuance under
this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In
such event, the Company shall give written notice of such reduction of the number of shares to be purchased under a participant's option to each participant affected. 

        (d)   Any
payroll deductions accumulated in a participant's account which are not used to purchase stock due to the limitations in this Section 10 shall be returned to
the participant as soon as practicable after the end of the applicable Purchase Period, without interest. 

        11.   Withdrawal.

        (a)   Each
participant may withdraw from an Offering Period under this Plan by signing and delivering to the Company a written notice to that effect on a form provided for
such purpose. Such withdrawal may be elected at any time prior to the end of an Offering Period, or such other time period as specified by the Committee. 

        (b)   Upon
withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn participant, without interest, and his or her interest in this Plan
shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she
may participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in
Section 6 above for initial participation in this Plan. 

        (c)   If
the Fair Market Value on the first day of the current Offering Period in which a participant is enrolled is higher than the Fair Market Value on the first day of any
subsequent Offering Period, the Company will automatically enroll such participant in the subsequent Offering Period. Any funds accumulated in a participant's account prior to the first day of such
subsequent Offering Period will be applied to the purchase of shares on the Purchase Date immediately prior to the first day of such subsequent Offering Period, if any. 

        12.   Termination of Employment.  Termination of a participant's employment for any reason, including retirement,
death or the failure of a participant to remain an eligible employee of the Company or of a Participating Subsidiary, immediately terminates his or her participation in this Plan. In such event, the
payroll deductions credited to the participant's account will be returned to him or her or, in the case of his or her death, to his or her legal representative, without interest. For purposes of this
Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or of a Participating Subsidiary in the case of sick leave,
military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than ninety (90) days
or reemployment upon the expiration of such leave is guaranteed by contract or statute. 

        13.   Return of Payroll Deductions.  In the event a participant's interest in this Plan is terminated by
withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver to the participant all payroll deductions credited to such
participant's account. No interest shall accrue on the payroll deductions of a participant in this Plan. 

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        14.   Capital Changes.

        (a)   Subject
to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the
"Reserves"), as well as the price per share of Common Stock covered by each option under this Plan which has not yet been exercised, and the Maximum
Share Amount, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of issued and outstanding shares of Common Stock effected without receipt of any consideration by the
Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of
consideration". Such adjustment shall be made by the Committee, whose determination shall be final, binding and conclusive. Except as expressly provided
herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option. 

        (b)   In
the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation of such proposed action,
unless otherwise provided by the Committee. The Committee may, in the exercise of its sole discretion in such instances, declare that this Plan shall terminate as of a date fixed by the Committee and
give each participant the right to purchase shares under this Plan prior to such termination. 

        (c)   In
the event of (i) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock
holdings and the options under this Plan are assumed, converted or replaced by the successor corporation, which assumption will be binding on all participants), (ii) a merger in which the
Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (iii) the sale of all or substantially all of the assets of the
Company or (iv) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction, the Plan will terminate upon the effective
date of such transaction and any funds in a Participant's account as of such date will be used to purchase shares of the Company on such date, unless otherwise provided by the Committee. 

        (d)   The
Committee may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common
Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its
outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other corporation. 

        15.   Nonassignability.  Neither payroll deductions credited to a participant's account nor any rights with regard
to the exercise of an option or to receive shares under this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or
as provided in Section 22 below) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be void and without effect. 

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        16.   Reports.  Individual accounts will be maintained for each participant in this Plan. Each participant shall
receive promptly after the end of each Purchase Period a report of his or her account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next Purchase Period or Offering Period, as the case may be. 

        17.   Notice of Disposition.  Each participant shall notify the Company in writing if the participant disposes of
any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date or within one (1) year from the Purchase
Date on which such shares were purchased (the "Notice Period"). The Company may, at any time during the Notice Period, place a legend or legends on any
certificate representing shares acquired pursuant to this Plan requesting the Company's transfer agent to notify the Company of any transfer of the shares. The obligation of the participant to provide
such notice shall continue notwithstanding the placement of any such legend on the certificates. 

        18.   No Rights to Continued Employment.  Neither this Plan nor the grant of any option hereunder shall confer any
right on any employee to remain in the employ of the Company or any Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such employee's
employment. 

        19.   Equal Rights And Privileges.  All eligible employees shall have equal rights and privileges with respect to
this Plan so that this Plan qualifies as an "employee stock purchase plan" within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be reformed to comply
with the requirements of Section 423. This Section 19 shall take precedence over all other provisions in this Plan. 

        20.   Notices.  All notices or other communications by a participant to the Company under or in connection with
this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

        21.   Term; Stockholder Approval.  After this Plan is adopted by the Board, this Plan will become effective on the
First Offering Date (as defined above). This Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or
after the date this Plan is adopted by the Board. No purchase of shares pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue until the earlier to occur of
(a) termination of this Plan by the Board (which termination may be effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for issuance under this
Plan, or (c) ten (10) years from the adoption of this Plan by the Board. 

        22.   Designation of Beneficiary. 

        (a)   A
participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant's account under this Plan in the
event of such participant's death subsequent to the end of an Purchase Period but prior to delivery to him of such shares and cash. In addition, a participant may file a written designation of
a beneficiary who is to receive any cash from the participant's account under this Plan in the event of such participant's death prior to a Purchase Date. 

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        (b)   Such
designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a
beneficiary validly designated under this Plan who is living at the time of such participant's death, the Company shall deliver such shares or cash to the executor or administrator of the estate of
the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares or cash to the spouse or to any
one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

        23.   Conditions Upon Issuance of Shares; Limitation on Sale of Shares.  Shares shall not be issued with respect to
an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation
system upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        24.   Applicable Law.  The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of
the State of California. 

        25.   Amendment or Termination of this Plan.  The Plan shall terminate on the tenth anniversary of the First
Offering Date. The Board may at any time amend, terminate or extend the term of this Plan, except that any such termination cannot affect options previously granted under this Plan other than to
advance the final Purchase Date under any Offering Period, nor may any amendment make any change in an option previously granted which would adversely affect the right of any participant, nor may any
amendment be made without approval of the stockholders of the Company obtained in accordance with Section 21 above within twelve (12) months of the adoption of such amendment (or earlier
if required by Section 21) if such amendment would: 

        (a)   increase
the number of shares that may be issued under this Plan; or 

        (b)   change
the designation of the employees (or class of employees) eligible for participation in this Plan; or 

        (c)   extend
the term of the Plan. 

Notwithstanding
the foregoing, the Board may make such amendments to the Plan (including, without limitation, termination of the Plan and any Offering Period) as the Board determines to be advisable,
if the continuation of the Plan or any Offering Period would result in financial accounting treatment for the Plan that is different from the financial accounting treatment in effect on the date this
Plan is adopted by the Board. 

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FORM OF DEXCOM, INC. 2005 EMPLOYEE
  STOCK PURCHASE PLAN/ENROLLMENT/CHANGE FORM    
    

	DEXCOM, INC.

2005 EMPLOYEE STOCK PURCHASE PLAN ("ESPP")	 	ENROLLMENT/CHANGE FORM

	

	SECTION 1:	 	CHECK DESIRED ACTION:	 	AND COMPLETE SECTIONS:
	

ACTIONS	
 	

o  Enroll in the ESPP	
 	

2 + 3 + 4 + 6
	 	 	o  Change Contribution Percentage	 	2 + 4 + 6
	 	 	o  Discontinue Contributions	 	2 + 5 + 6
	

	

SECTION 2:	
 	

Name: _______________________________________	
 	

Department:
	 	 	 	 	 
	PERSONAL DATA	 	Home Address: _______________________________	 	

	 	 	
	 	 
	 	 	Social Security No.:  o o o - o o - o o o o
	

	SECTION 3:

 ENROLL	 	I hereby elect to participate in the ESPP, effective at the beginning of the next Offering Period. I elect to purchase shares of the Common Stock of Dexcom, Inc. (the "Company") pursuant to the ESPP. I understand that the
stock certificate(s) for the shares purchased on my behalf will be issued in street name and deposited directly into my brokerage account. I hereby agree to establish an account with
[            ] for this purpose and to sign all required forms.
	

 	
 	

My participation will continue as long as I remain eligible, unless I withdraw from the ESPP by filing a new Enrollment/Change Form with the Company. I understand that I must notify the Company of any disposition of shares purchased under the
ESPP.
	

	SECTION 4:

 ELECT CONTRIBUTION PERCENTAGE	 	I hereby authorize the Company to withhold      % of my compensation (as defined in the ESPP) from each of my paychecks as long as I continue to participate in the ESPP. That amount will be
applied to the purchase of shares of the Company's Common Stock pursuant to the ESPP. The percentage must be a whole number (from 1%, up to a maximum of 10%).
	

 	
 	

Note:  You may change your contribution percentage up to two times within a Contribution Period. Each change will become effective as soon as reasonably practicable after the form is received by the
Company.
	

	SECTION 5:

 DISCONTINUE CONTRIBUTIONS	 	I hereby elect to stop my contributions under the ESPP, effective as soon as reasonably practicable after this form is received by the Company. The contributions that I have made to date during this Contribution Period
should be applied as follows:
	

 	
 	

o  Purchase shares of the Company's Common Stock at the end of the period.
	

 	
 	

o  Refund all contributions to me in cash, without interest. I understand that I cannot resume participation until the start of the next Offering Period.
	

	SECTION 6:

 ACKNOWLEDGMENT AND SIGNATURE	 	I acknowledge that I have received a copy of the Prospectus summarizing the major features of the ESPP. I have read the Prospectus and this form and hereby agree to be bound by the terms of the ESPP.
	

 	
 	

Signature: ______________________________________-	
 	

Date: ______________
	

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Exhibit 10.04

DEXCOM, INC. 2005 EMPLOYEE STOCK PURCHASE PLAN

ADOPTED BY THE BOARD OF DIRECTORS: FEBRUARY 9, 2005 APPROVED BY THE STOCKHOLDERS: MARCH 21, 2005

FORM OF DEXCOM, INC. 2005 EMPLOYEE STOCK PURCHASE PLAN/ENROLLMENT/CHANGE FORMQuickLinks
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Exhibit 4.1  

THE CORPORATEplan

FOR RETIREMENTSM  

 (PROFIT SHARING/401(k) PLAN)  

 A FIDELITY PROTOTYPE PLAN  

 Non-Standardized Adoption Agreement No. 001

For use With

Fidelity Basic Plan Document No. 02  

	Plan Number: 23770	 	 	 	 
	The CORPORATEplan for RetirementSM	 	 	 	Non-Std PS Plan

10/09/2003
	© 2003 FMR Corp.

All rights reserved.

  

 
 

ADOPTION AGREEMENT
  ARTICLE 1
  NON-STANDARDIZED PROFIT SHARING/401(K) PLAN    
    

	1.01	 	PLAN INFORMATION
	

 	
 	
(a)	
 	
Name of Plan:
	

 	
 	

 	
 	

This is the Overstock.com 401(k) Plan (the "Plan")
	

 	
 	
(b)	
 	
Type of Plan:
	

 	
 	

 	
 	
(1)	
 	

o	
 	

401(k) Only
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

401(k) and Profit Sharing
	

 	
 	

 	
 	
(3)	
 	
o	
 	

Profit Sharing Only
	

 	
 	
(c)	
 	
Administrator Name (if not the Employer):
	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

Address:	
 	

    

	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

Telephone

Number:	
 	

 

    

	

 	
 	

 	
 	

The Administrator is the agent for service of legal process for the Plan.
	

 	
 	
(d)	
 	
Plan Year End (month/day): 12/31
	

 	
 	
(e)	
 	
Three Digit Plan Number: 001
	

 	
 	
(f)	
 	
Limitation Year (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

Calendar Year
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

Plan Year
	

 	
 	

 	
 	
(3)	
 	
o	
 	

Other:
	

 	
 	
(g)	
 	
Plan Status (check appropriate box(es)):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

New Plan Effective Date:
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

Amendment Effective Date: 3/1/2005
	

 	
 	

 	
 	

 	
 	

This is (check one):
	
 	
 	

 	
 	

 	
 	

(A)	
 	
o	
 	

an amendment and restatement of a Basic Plan Document No. 02 Adoption Agreement previously executed by the Employer; or
	

 	
 	

 	
 	

 	
 	
(B)	
 	

ý	
 	

a conversion to a Basic Plan Document No. 02 Adoption Agreement.
	

 	
 	

 	
 	

 	
 	

 	
 	

The original effective date of the Plan: 1/1/1998
	 	 	 	 	 	 	 	 	 	 	 

1

 

	
 	
 	

 	
 	

(3)	
 	
o	
 	

This is an amendment and restatement of the Plan and the Plan was not amended prior to the effective date specified in Subsection 1.01(g)(2) above to comply with the requirements of the Acts specified in the Snap Off Addendum to the Adoption
Agreement. The provisions specified in the Snap Off Addendum are effective as of the dates specified in the Snap Off Addendum, which dates may be prior to the Amendment Effective Date. Please read and complete, if necessary, the Snap Off Addendum to
the Adoption Agreement.
	
 	
 	

 	
 	

(4)	
 	

o	
 	
Special Effective Dates—Certain provisions of the Plan shall be effective as of a date other than the date specified above. Please complete the Special Effective Dates Addendum to the
Adoption Agreement indicating the affected provisions and their effective dates.
	
 	
 	

 	
 	

(5)	
 	

o	
 	
Plan Merger Effective Dates. Certain plan(s) were merged into the Plan and certain provisions of the Plan are effective with respect to the merged plan(s) as of a date other than the date
specified above. Please complete the Special Effective Dates Addendum to the Adoption Agreement indicating the plan(s) that have merged into the Plan and the effective date(s) of such merger(s).
	
1.02	
 	

EMPLOYER
	

 	
 	

(a)	
 	
Employer Name:	
 	

Overstock.com, Inc.
	

 	
 	

 	
 	

Address:	
 	

6322 S 3000 E

Suite 100

Salt Lake City, UT 84121
	

 	
 	

 	
 	

Contact's Name:	
 	

Ms. Marci Osterberg
	

 	
 	

 	
 	

Telephone

Number:	
 	

  

(801) 947-3123
	

 	
 	

 	
 	
(1)	
 	

Employer's Tax Identification Number: 87-0634302
	

 	
 	

 	
 	
(2)	
 	

Employer's fiscal year end: 12/31
	

 	
 	

 	
 	
(3)	
 	

Date business commenced: 5/7/1997
	
 	
 	

(b)	
 	
The term "Employer" includes the following Related Employer(s) (as defined in Subsection 2.01(rr)) (list each participating Related Employer and its Employer Tax Identification
Number):
	
1.03	
 	
TRUSTEE
	
 	
 	

(a)	
 	
Trustee

Name:	
 	

 

Fidelity Management Trust Company
	

 	
 	

 	
 	

Address:	
 	

82 Devonshire Street

Boston, MA 02109
	
1.04	
 	
COVERAGE
	

 	
 	
All Employees who meet the conditions specified below shall be eligible to participate in the Plan:
	
 	
 	

(a)	
 	
Age Requirement (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

no age requirement.
	 	 	 	 	 	 	 	 	 	 	 

2

 

	

 	
 	

 	
 	
(2)	
 	

ý	
 	

must have attained age: 21.0 (not to exceed 21).
	

 	
 	
(b)	
 	
Eligibility Service Requirement
	
 	
 	

 	
 	

(1)	
 	
Eligibility to Participate in Plan (check one):
	

 	
 	

 	
 	

 	
 	
(A)	
 	
o	
 	

no Eligibility Service requirement.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

ý	
 	

6 (not to exceed 11) months of Eligibility Service requirement (no minimum number Hours of Service can be required).
	

 	
 	

 	
 	

 	
 	
(C)	
 	
o	
 	

one year of Eligibility Service requirement (at least 1,000 Hours of Service are required during the Eligibility Computation Period).
	

 	
 	

 	
 	

 	
 	
(D)	
 	

o	
 	

two years of Eligibility Service requirement (at least 1,000 Hours of Service are required during each Eligibility Computation Period). (Do not select if Option 1.01(b)(1), 401(k) Only, is checked,
unless a different Eligibility Service requirement applies to Deferral Contributions under Option 1.04(b)(2).)
	

 	
 	

 	
 	

 	
 	

 	
 	
Note: If the Employer selects the two year Eligibility Service requirement, then contributions subject to such Eligibility Service requirement must be 100% vested when made.
	
 	
 	

 	
 	

(2)	
 	

o	
 	
Special Eligibility Service requirement for Deferral Contributions and/or Matching Employer Contributions:
	

 	
 	

 	
 	

 	
 	
(A)	
 	

The special Eligibility Service requirement applies to (check the appropriate box(es)):
	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

o Deferral Contributions.
	

 	
 	

 	
 	

 	
 	

 	
 	
(ii)	
 	

o Matching Employer Contributions.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

The special Eligibility Service requirement is:            (Fill in (A), (B), or (C) from Subsection 1.04(b)(l) above).
	

 	
 	
(c)	
 	
Eligible Class of Employees (check one):
	

 	
 	

 	
 	
Note: The Plan may not cover employees who are residents of Puerto Rico. These employees are automatically excluded from the eligible class, regardless of the Employer's selection under this
Subsection 1.04(c).
	

 	
 	

 	
 	
(1)	
 	

o	
 	

includes all Employees of the Employer.
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

includes all Employees of the Employer except for (check the appropriate box(es)):
	

 	
 	

 	
 	

 	
 	
(A)	
 	

ý	
 	

employees covered by a collective bargaining agreement.
	

 	
 	

 	
 	

 	
 	
(B)	
 	
o	
 	

Highly Compensated Employees as defined in Code Section 414(q).
	

 	
 	

 	
 	

 	
 	
(C)	
 	

o	
 	

Leased Employees as defined in Subsection 2.01(cc).
	

 	
 	

 	
 	

 	
 	
(D)	
 	

ý	
 	

nonresident aliens who do not receive any earned income from the Employer which constitutes United States source income.
	

 	
 	

 	
 	

 	
 	
(E)	
 	
o	
 	

other:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
Note: The Employer should exercise caution when excluding employees from participation in the Plan. Exclusion of employees may adversely affect the Plan's satisfaction of the minimum
coverage requirements, as provided in Code Section 410(b).
	 	 	 	 	 	 	 	 	 	 	 

3

 

	

 	
 	
(d)	
 	
The Entry Dates shall be (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

immediate upon meeting the eligibility requirements specified in Subsections 1.04(a), (b), and (c).
	

 	
 	

 	
 	
(2)	
 	

o	
 	

the first day of each Plan Year and the first day of the seventh month of each Plan Year.
	

 	
 	

 	
 	
(3)	
 	

ý	
 	

the first day of each Plan Year and the first day of the fourth, seventh, and tenth months of each Plan Year.
	

 	
 	

 	
 	
(4)	
 	
o	
 	

the first day of each month.
	

 	
 	

 	
 	
(5)	
 	

o	
 	

the first day of each Plan Year. (Do not select if there is an Eligibility Service requirement of more than six months in Subsection 1.04(b) or if there is an age requirement of more than 201/2 in
Subsection 1.04(a).)
	

 	
 	
(e)	
 	

o	
 	
Special Entry Date(s)—In addition to the Entry Dates specified in Subsection 1.04(d) above, the following special Entry Date(s) apply for Deferral and/or Matching Employer
Contributions. (Special Entry Dates may only be selected if Option 1.04(b)(2), special Eligibility Service requirement, is checked. The same Entry Dates must be selected for contributions that are subject to the same
Eligibility Service requirements.)
	

 	
 	

 	
 	
(1)	
 	

The special Entry Date(s) shall apply to (check the appropriate box(es)):
	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

Deferral Contributions.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

Matching Employer Contributions.
	

 	
 	

 	
 	
(2)	
 	

The special Entry Date(s) shall be:            (Fill in (1), (2), (3), (4), or (5) from Subsection 1.04(d) above).
	

 	
 	
(f)	
 	
Date of Initial Participation—An Employee shall become a Participant unless excluded by Subsection 1.04(c) above on the Entry Date immediately following the date the Employee
completes the service and age requirement(s) in Subsections 1.04(a) and (b), if any, except (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

no exceptions.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Employees employed on the Effective Date in Subsection 1.01(g)(l) or (2) shall become Participants on that date.
	

 	
 	

 	
 	
(3)	
 	

ý	
 	

Employees who meet the age and service requirement(s) of Subsections 1.04(a) and (b) on the Effective Date in Subsection 1.01(g)(l) or (2) shall become Participants on that date.
	 	 	 	 	 	 	 	 	 	 	 

4

 

	
1.05	
 	
COMPENSATION
	

 	
 	
Compensation for purposes of determining contributions shall be as defined in Section 5.02, modified as provided below.
	

 	
 	
(a)	
 	
Compensation Exclusions: Compensation shall exclude the item(s) listed below for purposes of determining Deferral Contributions, Employee Contributions, if any, and Qualified
Nonelective Employer Contributions, or, if Subsection 1.01(b)(3), Profit Sharing Only, is selected, Nonelective Employer Contributions. Unless otherwise indicated in Subsection 1.05(b), these exclusions shall also apply in determining all other
Employer-provided contributions. (Check the appropriate box(es); Options (2), (3), (4), (5), and (6) may not be elected with respect to Deferral Contributions if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, is checked)
:
	

 	
 	

 	
 	
(1)	
 	
o	
 	

No exclusions.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Overtime Pay.
	

 	
 	

 	
 	
(3)	
 	

o	
 	

Bonuses.
	

 	
 	

 	
 	
(4)	
 	

o	
 	

Commissions.
	

 	
 	

 	
 	
(5)	
 	

o	
 	

The value of a qualified or a non-qualified stock option granted to an Employee by the Employer to the extent such value is includable in the Employee's taxable income.
	

 	
 	

 	
 	
(6)	
 	

ý	
 	

Severance Pay.
	

 	
 	
(b)	
 	
Special Compensation Exclusions for Determining Employer-Provided Contributions in Article 5 (either (1) or (2) may be selected, but not both):
	

 	
 	

 	
 	
(1)	
 	
o	
 	

Compensation for purposes of determining Matching, Qualified Matching, and Nonelective Employer Contributions shall
exclude:                        (Fill in number(s) for item(s) from Subsection 1.05(a) above that apply.)
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Compensation for purposes of determining Nonelective Employer Contributions only shall exclude:                        (Fill in
number(s) for item(s) from Subsection 1.05(a) above that apply.)
	

 	
 	

 	
 	

 	
 	
Note: If the Employer selects Option (2), (3), (4), (5), or (6) with respect to Nonelective Employer Contributions, Compensation must be tested to show that it meets the requirements of
Code Section 414(s) or 401(a)(4). These exclusions shall not apply for purposes of the "Top Heavy" requirements in Section 15.03, for allocating safe harbor Matching Employer Contributions if Subsection 1.10(a)(3) is selected, for
allocating safe harbor Nonelective Employer Contributions if Subsection 1.11(a)(3) is selected, or for allocating non-safe harbor Nonelective Employer Contributions if the Integrated Formula is elected in Subsection 1.11(b)(2).
	

 	
 	
(c)	
 	
Compensation for the First Year of Participation—Contributions for the Plan Year in which an Employee first becomes a Participant shall be determined based on the Employee's
Compensation (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

for the entire Plan Year.
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

for the portion of the Plan Year in which the Employee is eligible to participate in the Plan.
	 	 	 	 	 	 	 	 	 	 	 

5

 

	

 	
 	

 	
 	

 	
 	
Note: If the initial Plan Year of a new Plan consists of fewer than 12 months from the Effective Date in Subsection 1.01(g)(1) through the end of the initial Plan Year, Compensation for
purposes of determining the amount of contributions, other than non-safe harbor Nonelective Employer Contributions, under the Plan shall be the period from such Effective Date through the end of the initial year. However, for purposes of determining
the amount of non-safe harbor Nonelective Employer Contributions and for other Plan purposes, where appropriate, the full 12-consecutive-month period ending on the last day of the initial Plan Year shall be used.
	
1.06	
 	
TESTING RULES
	

 	
 	
(a)	
 	
ADP/ACP Present Testing Method—The testing method for purposes of applying the "ADP" and "ACP" tests described in Sections 6.03 and 6.06 of the Plan shall be the (check
one):
	

 	
 	

 	
 	
(1)	
 	

ý	
 	
Current Year Testing Method—The "ADP" or "ACP" of Highly Compensated Employees for the Plan Year shall be compared to the "ADP" or "ACP" of Non-Highly Compensated Employees for the same
Plan Year. (Must choose if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions is checked.)
	

 	
 	

 	
 	
(2)	
 	
o	
 	
Prior Year Testing Method—The "ADP" or "ACP" of Highly Compensated Employees for the Plan Year shall be compared to the "ADP" or "ACP" of Non-Highly Compensated Employees for the
immediately preceding Plan Year. (Do not choose if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or Option1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions is
checked.)
	

 	
 	

 	
 	
(3)	
 	

o	
 	

Not applicable. (Only if Option 1.01(b)(3), Profit Sharing Only, is checked or Option 1.04(c)(2)(B), excluding all Highly Compensated Employees from the eligible class of Employees, is checked.)
	

 	
 	

 	
 	
Note: Restrictions apply on elections to change testing methods that are made after the end of the GUST remedial amendment period.
	

 	
 	
(b)	
 	
First Year Testing Method—If the first Plan Year that the Plan, other than a successor plan, permits Deferral Contributions or provides for either Employee or Matching Employer
Contributions, occurs on or after the Effective Date specified in Subsection 1.01(g), the "ADP" and/or "ACP" test for such first Plan Year shall be applied using the actual "ADP" and/or "ACP" of Non-Highly Compensated Employees for such first Plan
Year, unless otherwise provided below.
	

 	
 	

 	
 	
(1)	
 	

o	
 	

The "ADP" and/or "ACP" test for the first Plan Year that the Plan permits Deferral Contributions or provides for either Employee or Matching Employer Contributions shall be applied assuming a 3% "ADP" and/or "ACP" for Non-Highly Compensated
Employees. (Do not choose unless Plan uses prior year testing method described in Subsection 1.06(a)(2).)
	

 	
 	
(c)	
 	
HCE Determinations: Look Back Year—The look back year for purposes of determining which Employees are Highly Compensated Employees shall be the 12-consecutive-month period
preceding the Plan Year, unless otherwise provided below.
	

 	
 	

 	
 	
(1)	
 	

o	
 	
Calendar Year Determination—The look back year shall be the calendar year beginning within the preceding Plan Year. (Do not choose if the Plan Year is the
calendar year.)
	 	 	 	 	 	 	 	 	 	 	 

6

 

	

 	
 	
(d)	
 	
HCE Determinations: Top Paid Group Election—All Employees with Compensation exceeding $80,000 (as indexed) shall be considered Highly Compensated Employees, unless Top Paid Group
Election below is checked.
	

 	
 	

 	
 	
(1)	
 	

ý	
 	
Top Paid Group Election—Employees with Compensation exceeding $80,000 (as indexed) shall be considered Highly Compensated Employees only if they are in the top paid group (the top 20% of
Employees ranked by Compensation).
	

 	
 	

 	
 	
Note: Effective for determination years beginning on or after January 1, 1998, if the Employer elects Option 1.06(c)(1) and/or 1.06(d)(1), such election(s) must apply consistently to all
retirement plans of the Employer for determination years that begin with or within the same calendar year (except that Option 1.06(c)(1), Calendar Year Determination, shall not apply to calendar year plans).
	
1.07	
 	
DEFERRAL CONTRIBUTIONS
	

 	
 	
(a)	
 	

ý	
 	
Deferral Contributions—Participants may elect to have a portion of their Compensation contributed to the Plan on a before-tax basis pursuant to Code Section 401
(k).
	

 	
 	

 	
 	
(1)	
 	
Regular Contributions—The Employer shall make a Deferral Contribution in accordance with Section 5.03 on behalf of each Participant who has an executed salary reduction agreement in
effect with the Employer for the payroll period in question, not to exceed 60% of Compensation for that period.
	

 	
 	

 	
 	

 	
 	
Note: For Limitation Years beginning prior to 2002, the percentage elected above must be less than 25% in order to satisfy the limitation on annual additions under Code Section 415 if
other types of contributions are provided under the Plan.
	

 	
 	

 	
 	
(A)	
 	
o	
 	

Instead of specifying a percentage of Compensation, a Participant's salary reduction agreement may specify a dollar amount to be contributed each payroll period, provided such dollar amount does not exceed the maximum percentage of Compensation
specified in Subsection 1.07(a)(1) above.
	

 	
 	

 	
 	
(B)	
 	

A Participant may increase or decrease, on a prospective basis, his salary reduction agreement percentage (check one):
	

 	
 	

 	
 	

 	
 	
(i)	
 	

ý	
 	

as of the beginning of each payroll period.
	

 	
 	

 	
 	

 	
 	
(ii)	
 	
o	
 	

as of the first day of each month.
	

 	
 	

 	
 	

 	
 	
(iii)	
 	

o	
 	

as of the next Entry Date. (Do not select if immediate entry is elected with respect to Deferral Contributions in Subsection 1.04(d) or 1.04(e).)
	

 	
 	

 	
 	

 	
 	
(iv)	
 	

o	
 	

other. (Specify, but must be at least once per Plan Year)
	

 	
 	

 	
 	

 	
 	
Note: Notwithstanding the Employer's election hereunder, if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective
Employer Contributions is checked, the Plan provides that an Active Participant may change his salary reduction agreement percentage for the Plan Year within a reasonable period (not fewer than 30 days) of receiving the notice described in
Section 6.10.
	

 	
 	

 	
 	
(C)	
 	

A Participant may revoke, on a prospective basis, a salary reduction agreement at any time upon proper notice to the Administrator but in such case may not file a new salary reduction agreement until (check one):
	

 	
 	

 	
 	

 	
 	
(i)	
 	

o	
 	

the first day of the next Plan Year.
	 	 	 	 	 	 	 	 	 	 	 

7

 

	

 	
 	

 	
 	

 	
 	
(ii)	
 	

o	
 	

any subsequent Entry Date. (Do not select if immediate entry is elected with respect to Deferral Contributions in Subsection 1.04(d) or 1.04(e).)
	

 	
 	

 	
 	

 	
 	
(iii)	
 	

ý	
 	

other. (Specify, but must be at least once per Plan Year)
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
the beginning of each payroll period
	

 	
 	

 	
 	
(2)	
 	

ý	
 	
Additional Deferral Contributions—The Employer may allow Participants upon proper notice and approval to enter into a special salary reduction agreement to make additional Deferral
Contributions in an amount up to 100% of their Compensation for the payroll period(s) designated by the Employer.
	

 	
 	

 	
 	
(3)	
 	

ý	
 	
Bonus Contributions—The Employer may allow Participants upon proper notice and approval to enter into a special salary reduction agreement to make Deferral Contributions in an amount up
to 100% of any Employer paid cash bonuses designated by the Employer on a uniform and non-discriminatory basis that are made for such Participants during the Plan Year. The Compensation definition elected by the Employer in Subsection 1.05(a) must
include bonuses if bonus contributions are permitted.
	

 	
 	

 	
 	

 	
 	
Note: A Participant's contributions under Subsection 1.07(a)(2) and/or (3) may not cause the Participant to exceed the percentage limit specified by the Employer in Subsection 1.07(a)(l)
for the full Plan Year. If the Administrator anticipates that the Plan will not satisfy the "ADP" and/or "ACP" test for the year, the Administrator may reduce the rate of Deferral Contributions of Participants who are Highly Compensated Employees to
an amount objectively determined by the Administrator to be necessary to satisfy the "ADP" and/or "ACP" test.
	
1.08	
 	
EMPLOYEE CONTRIBUTIONS (AFTER-TAX CONTRIBUTIONS)
	

 	
 	
(a)	
 	
o	
 	
Employee Contributions—Either (1) Participants will be permitted to contribute amounts to the Plan on an after-tax basis or (2) the Employer maintains frozen Employee
Contributions Accounts (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	
Future Employee Contributions—Participants may make voluntary, non-deductible, after-tax Employee Contributions pursuant to Section 5.04 of the Plan. (Only
if Option 1.07(a), Deferral Contributions, is checked.)
	

 	
 	

 	
 	
(2)	
 	

o	
 	
Frozen Employee Contributions—Participants may not currently make after-tax Employee Contributions to the Plan, but the Employer does maintain frozen Employee Contributions
Accounts.
	
1.09	
 	
QUALIFIED NONELECTIVE CONTRIBUTIONS
	

 	
 	
(a)	
 	
Qualified Nonelective Employer Contributions—If Option 1.07(a), Deferral Contributions, is checked, the Employer may contribute an amount which it designates as a Qualified
Nonelective Employer Contribution to be included in the "ADP" or "ACP" test. Unless otherwise provided below, Qualified Nonelective Employer Contributions shall be allocated to Participants who were eligible to participate in the Plan at any time
during the Plan Year and are Non-Highly Compensated Employees either (A) in the ratio which each Participant's "testing compensation", as defined in Subsection 6.01(t), for the Plan Year bears to the total of all Participants' "testing
compensation" for the Plan Year or (B) as a flat dollar amount.
	 	 	 	 	 	 	 	 	 	 	 

8

 

	

 	
 	

 	
 	
(1)	
 	

o	
 	

Qualified Nonelective Employer Contributions shall be allocated to Participants as a percentage of the lowest paid Participant's "testing compensation", as defined in Subsection 6.01(t), for the Plan Year up to the lower of (A) the maximum
amount contributable under the Plan or (B) the amount necessary to satisfy the "ADP" or "ACP" test. If any Qualified Nonelective Employer Contribution remains, allocation shall continue in the same manner to the next lowest paid Participants
until the Qualified Nonelective Employer Contribution is exhausted.
	
1.10	
 	
MATCHING EMPLOYER CONTRIBUTIONS (Only if Option 1.07(a), Deferral Contributions, is checked)
	

 	
 	
(a)	
 	

ý	
 	

Basic Matching Employer Contributions (check one):
	

 	
 	

 	
 	
(1)	
 	
o	
 	
Non-Discretionary Matching Employer Contributions—The Employer shall make a basic Matching Employer Contribution on behalf of each Participant in an amount equal to the following
percentage of a Participant's Deferral Contributions during the Contribution Period (check (A) or (B) and, if applicable, (C)):
	

 	
 	

 	
 	

 	
 	
Note: Effective for Plan Years beginning on or after January 1, 1999, if the Employer elected Option l.ll(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions
and meets the requirements for deemed satisfaction of the "ADP" test in Section 6.10 for a Plan Year, the Plan will also be deemed to satisfy the "ACP" test for such Plan Year with respect to Matching Employer Contributions if Matching Employer
Contributions hereunder meet the requirements in Section 6.11.
	

 	
 	

 	
 	
(A)	
 	

o	
 	

Single Percentage Match:      %
	

 	
 	

 	
 	
(B)	
 	

o	
 	

Tiered Match:
	

 	
 	

 	
 	

 	
 	

            % of the first            % of the Active Participant's Compensation contributed to the Plan,
	

 	
 	

 	
 	

 	
 	

            % of the next            % of the Active Participant's Compensation contributed to the Plan,
	

 	
 	

 	
 	

 	
 	

            % of the next            % of the Active Participant's Compensation contributed to the Plan.
	

 	
 	

 	
 	

 	
 	
Note: The percentages specified above for basic Matching Employer Contributions may not increase as the percentage of Compensation contributed increases.
	

 	
 	

 	
 	
(C)	
 	

o	
 	

Limit on Non-Discretionary Matching Employer Contributions (check the appropriate box(es)):
	

 	
 	

 	
 	

 	
 	
(i)	
 	

o	
 	

Deferral Contributions in excess of            % of the Participant's Compensation for the period in question shall not be considered for non-discretionary Matching Employer
Contributions.
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
Note: If the Employer elected a percentage limit in (i) above and requested the Trustee to account separately for matched and unmatched Deferral Contributions made to the Plan, the
non-discretionary Matching Employer Contributions allocated to each Participant must be computed, and the percentage limit applied, based upon each payroll period.
	

 	
 	

 	
 	

 	
 	
(ii)	
 	

o	
 	

Matching Employer Contributions for each Participant for each Plan Year shall be limited to
$                              .
	 	 	 	 	 	 	 	 	 	 	 

9

 

	

 	
 	
(2)	
 	

ý	
 	
Discretionary Matching Employer Contributions—The Employer may make a basic Matching Employer Contribution on behalf of each Participant in an amount equal to the percentage declared for
the Contribution Period, if any, by a Board of Directors' Resolution (or by a Letter of Intent for a sole proprietor or partnership) of the Deferral Contributions made by each Participant during the Contribution Period. The Board of Directors'
Resolution (or Letter of Intent, if applicable) may limit the Deferral Contributions matched to a specified percentage of Compensation or limit the amount of the match to a specified dollar amount.
	

 	
 	

 	
 	
(A)	
 	
o	
 	

4% Limitation on Discretionary Matching Employer Contributions for Deemed Satisfaction of "ACP" Test—In no event may the dollar amount of the discretionary Matching Employer Contribution made on a Participant's behalf for the Plan Year exceed 4%
of the Participant's Compensation for the Plan Year. (Only if Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions is checked.)
	

 	
 	

 	
 	
(3)	
 	

o	
 	
Safe Harbor Matching Employer Contributions—Effective only for Plan Years beginning on or after January 1, 1999, if the Employer elects one of the safe harbor formula Options
provided in the Safe Harbor Matching Employer Contribution Addendum to the Adoption Agreement and provides written notice each Plan Year to all Active Participants of their rights and obligations under the Plan, the Plan shall be deemed to satisfy
the "ADP" test and, under certain circumstances, the "ACP" test.
	

 	
 	
(b)	
 	

o	
 	
Additional Matching Employer Contributions—The Employer may at Plan Year end make an additional Matching Employer Contribution equal to a percentage declared by the Employer,
through a Board of Directors' Resolution (or by a Letter of Intent for a sole proprietor or partnership), of the Deferral Contributions made by each Participant during the Plan Year. (Only if Option 1.10(a)(1) or (3) is
checked.) The Board of Directors' Resolution (or Letter of Intent, if applicable) may limit the Deferral Contributions matched to a specified percentage of Compensation or limit the amount of the match to a specified
dollar amount.
	

 	
 	

 	
 	
(1)	
 	

o	
 	
4% Limitation on Additional Matching Employer Contributions for Deemed Satisfaction of "ACP" Test—In no event may the dollar amount of the additional Matching Employer Contribution made
on a Participant's behalf for the Plan Year exceed 4% of the Participant's Compensation for the Plan Year. (Only if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, or Option 1.11(a)(3), Safe Harbor Formula,
with respect to Nonelective Employer Contributions is checked.)
	

 	
 	

 	
 	
Note: If the Employer elected Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, above and wants to be deemed to have satisfied the "ADP" test for Plan Years beginning on or after
January 1, 1999, the additional Matching Employer Contribution must meet the requirements of Section 6.10. In addition to the foregoing requirements, if the Employer elected either Option 1.10(a)(3), Safe Harbor Matching Employer
Contributions, or Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions, and wants to be deemed to have satisfied the "ACP" test with respect to Matching Employer Contributions for the Plan Year, the Deferral
Contributions matched may not exceed the limitations in Section 6.11.
	 	 	 	 	 	 	 	 	 	 	 

10

 

	

 	
 	
(c)	
 	
Contribution Period for Matching Employer Contributions—The Contribution Period for purposes of calculating the amount of basic Matching Employer Contributions described in
Subsection 1.10(a) is:
	

 	
 	

 	
 	
(1)	
 	

o	
 	

each calendar month.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

each Plan Year quarter.
	

 	
 	

 	
 	
(3)	
 	

o	
 	

each Plan Year.
	

 	
 	

 	
 	
(4)	
 	

ý	
 	

each payroll period.
	

 	
 	

 	
 	

The Contribution Period for additional Matching Employer Contributions described in Subsection 1.10(b) is the Plan Year.
	

 	
 	
(d)	
 	
Continuing Eligibility Requirement(s)—A Participant who makes Deferral Contributions during a Contribution Period shall only be entitled to receive Matching Employer Contributions
under Section 1.10 for that Contribution Period if the Participant satisfies the following requirement(s) (Check the appropriate box(es). Options (3) and (4) may not be elected together; Option (5) may not be elected with Option
(2), (3), or (4); Options (2), (3), (4), (5), and (7) may not be elected with respect to basic Matching Employer Contributions if Option 1.10(a)(3), Safe Harbor Matching Employer Contributions, is checked):
	

 	
 	

 	
 	
(1)	
 	

ý	
 	

No requirements.
	

 	
 	

 	
 	
(2)	
 	
o	
 	

Is employed by the Employer or a Related Employer on the last day of the Contribution Period.
	

 	
 	

 	
 	
(3)	
 	

o	
 	

Earns at least 501 Hours of Service during the Plan Year. (Only if the Contribution Period is the Plan Year.)
	

 	
 	

 	
 	
(4)	
 	

o	
 	

Earns at least 1,000 Hours of Service during the Plan Year. (Only if the Contribution Period is the Plan Year.)
	

 	
 	

 	
 	
(5)	
 	

o	
 	

Either earns at least 501 Hours of Service during the Plan Year or is employed by the Employer or a Related Employer on the last day of the Plan Year. (Only if the Contribution Period is the Plan Year.)
	

 	
 	

 	
 	
(6)	
 	

o	
 	

Is not a Highly Compensated Employee for the Plan Year.
	

 	
 	

 	
 	
(7)	
 	

o	
 	

Is not a partner or a member of the Employer, if the Employer is a partnership or an entity taxed as a partnership.
	

 	
 	

 	
 	
(8)	
 	

o	
 	

Special continuing eligibility requirement(s) for additional Matching Employer Contributions. (Only if Option 1.10(b), Additional Matching Employer Contributions, is checked.)
	

 	
 	

 	
 	

 	
 	
(A)	
 	

The continuing eligibility requirement(s) for additional Matching Employer Contributions is/are:

(Fill in number of applicable eligibility requirement(s) from above.)
	

 	
 	

 	
 	
Note: If Option (2), (3), (4), or (5) above is selected, then Matching Employer Contributions can only be funded by the Employer
after the Contribution Period or Plan Year ends. Matching Employer Contributions funded during the Contribution Period or Plan Year shall not be subject to the eligibility requirements of Option (2), (3),
 (4), or (5). If Option (2), (3), (4), or (5) is adopted during a Contribution Period or Plan Year, as applicable, such Option shall not become effective until the first day of the next Contribution Period or Plan Year.
	 	 	 	 	 	 	 	 	 	 	 

11

 

	

 	
 	
(e)	
 	

ý	
 	
Qualified Matching Employer Contributions—Prior to making any Matching Employer Contribution hereunder (other than a safe harbor Matching Employer Contribution), the Employer may
designate all or a portion of such Matching Employer Contribution as a Qualified Matching Employer Contribution that may be used to satisfy the "ADP" test on Deferral Contributions and excluded in applying the "ACP" test on Employee and Matching
Employer Contributions. Unless the additional eligibility requirement is selected below, Qualified Matching Employer Contributions shall be allocated to all Participants who meet the continuing eligibility requirement(s) described in Subsection
1.10(d) above for the type of Matching Employer Contribution being characterized as a Qualified Matching Employer Contribution.
	

 	
 	

 	
 	
(1)	
 	

ý	
 	

To receive an allocation of Qualified Matching Employer Contributions a Participant must also be a Non-Highly Compensated Employee for the Plan Year.
	

 	
 	

 	
 	
Note: Qualified Matching Employer Contributions may not be excluded in applying the "ACP" test for a Plan Year if the Employer elected Option 1.10(a)(3), Safe Harbor Matching Employer
Contributions, or Option 1.11(a)(3), Safe Harbor Formula, with respect to Nonelective Employer Contributions, and the "ADP" test is deemed satisfied under Section 6.10 for such Plan Year.
	
1.11	
 	
NONELECTIVE EMPLOYER CONTRIBUTIONS
	

 	
 	
Note: An Employer may elect both a fixed formula and a discretionary formula. If both are selected, the discretionary formula shall be treated as an additional Nonelective Employer
Contribution and allocated separately in accordance with the allocation formula selected by the Employer.
	

 	
 	
(a)	
 	
o	
 	
Fixed Formula (An Employer may elect both the Safe Harbor Formula and one of the other fixed formulas. Otherwise, the Employer may only select one of the following.)
	

 	
 	

 	
 	
(1)	
 	

o	
 	
Fixed Percentage Employer Contribution—For each Plan Year, the Employer shall contribute for each eligible Active Participant an amount equal
to            % (not to exceed 15% for Plan Years beginning prior to 2002 and 25% for Plan Years beginning on or after January 1, 2002) of
such Active Participant's Compensation.
	

 	
 	

 	
 	
(2)	
 	

o	
 	
Fixed Flat Dollar Employer Contribution—The Employer shall contribute for each eligible Active Participant an amount equal to
$            .
	

 	
 	

 	
 	

 	
 	

The contribution amount is based on an Active Participant's service for the following period:
	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

Each paid hour.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

Each payroll period.
	

 	
 	

 	
 	

 	
 	
(C)	
 	

o	
 	

Each Plan Year.
	

 	
 	

 	
 	

 	
 	
(D)	
 	

o	
 	

Other:
	

 	
 	

 	
 	
(3)	
 	

o	
 	
Safe Harbor Formula—Effective only with respect to Plan Years that begin on or after January 1, 1999, the Nonelective Employer Contribution specified in the Safe Harbor Nonelective
Employer Contribution Addendum is intended to satisfy the safe harbor contribution requirements under the Code such that the "ADP" test (and, under certain circumstances, the "ACP" test) is deemed satisfied. Please complete the Safe Harbor
Nonelective Employer Contribution Addendum to the Adoption Agreement. (Choose only if Option 1.07(a), Deferral Contributions, is checked.)
	 	 	 	 	 	 	 	 	 	 	 

12

 

	

 	
 	
(b)	
 	

ý	
 	
Discretionary Formula—The Employer may decide each Plan Year whether to make a discretionary Nonelective Employer Contribution on behalf of eligible Active Participants in
accordance with Section 5.10. Such contributions shall be allocated to eligible Active Participants based upon the following (check (1) or (2)):
	

 	
 	

 	
 	
(1)	
 	

ý	
 	
Non-Integrated Allocation Formula—In the ratio that each eligible Active Participant's Compensation bears to the total Compensation paid to all eligible Active Participants for the Plan
Year.
	

 	
 	

 	
 	
(2)	
 	
o	
 	
Integrated Allocation Formula—As (A) a percentage of each eligible Active Participant's Compensation plus (B) a percentage of each eligible Active Participant's Compensation in
excess of the "integration level" as defined below. The percentage of Compensation in excess of the "integration level" shall be equal to the lesser of the percentage of the Active Participant's Compensation allocated under (A) above or the
"permitted disparity limit" as defined below.
	

 	
 	

 	
 	

 	
 	
Note: An Employer that has elected the Safe Harbor formula in Subsection l.11(a)(3) above may not take Nonelective Employer Contributions made to satisfy the safe harbor into account in
applying the integrated allocation formula described above.
	

 	
 	

 	
 	

 	
 	

"Integration level" means the Social Security taxable wage base for the Plan Year, unless the Employer elects a lesser amount in (A) or (B) below.
	

 	
 	

 	
 	

 	
 	
(A)	
 	

            % (not to exceed 100%) of the Social Security taxable wage base for the Plan Year, or
	

 	
 	

 	
 	

 	
 	
(B)	
 	
$            (not to exceed the Social Security taxable wage base).
	

 	
 	

 	
 	

 	
 	

"Permitted disparity limit" means the percentage provided by the following table:

	
The "Integration Level" is            % of the Taxable Wage Base
 
	
 	

The "Permitted

Disparity

Limit" is
	
 
	20% or less	 	5.7	%
	More than 20%, but not more than 80%	 	4.3	%
	More than 80%, but less than 100%	 	5.4	%
	100%	 	5.7	%

	

 	
 	

 	
 	

 	
 	
Note: An Employer who maintains any other plan that provides for Social Security Integration (permitted disparity) may not elect Option l.11(b)(2).
	

 	
 	
(c)	
 	
Continuing Eligibility Requirement(s)—A Participant shall only be entitled to receive Nonelective Employer Contributions for a Plan Year under this Section 1.11 if the
Participant satisfies the following requirement(s) (Check the appropriate box(es)—Options (3) and (4) may not be elected together; Option (5) may not be elected with Option (2), (3), or (4); Options (2), (3), (4), (5), and
(7) may not be elected with respect to Nonelective Employer Contributions under the fixed formula if Option 1.11(a)(3), Safe Harbor Formula, is checked):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

No requirements.
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

Is employed by the Employer or a Related Employer on the last day of the Plan Year.
	

 	
 	

 	
 	
(3)	
 	
o	
 	

Earns at least 501 Hours of Service during the Plan Year.
	

 	
 	

 	
 	
(4)	
 	

o	
 	

Earns at least 1,000 Hours of Service during the Plan Year.
	 	 	 	 	 	 	 	 	 	 	 

13

 

	

 	
 	

 	
 	
(5)	
 	

o	
 	

Either earns at least 501 Hours of Service during the Plan Year or is employed by the Employer or a Related Employer on the last day of the Plan Year.
	

 	
 	

 	
 	
(6)	
 	

o	
 	

Is not a Highly Compensated Employee for the Plan Year.
	

 	
 	

 	
 	
(7)	
 	

o	
 	

Is not a partner or a member of the Employer, if the Employer is a partnership or an entity taxed as a partnership.
	

 	
 	

 	
 	
(8)	
 	

o	
 	

Special continuing eligibility requirement(s) for discretionary Nonelective Employer Contributions. (Only if both Options 1.11(a) and (b) are checked.)
	

 	
 	

 	
 	

 	
 	
(A)	
 	

The continuing eligibility requirement(s) for discretionary Nonelective Employer Contributions is/are:            (Fill in number of applicable eligibility requirement(s) from
above.)
	

 	
 	

 	
 	
Note: If Option (2), (3), (4), or (5) above is selected then Nonelective Employer Contributions can only be funded by the Employer
after the Plan Year ends. Nonelective Employer Contributions funded during the Plan Year shall not be subject to the eligibility requirements of Option (2), (3), (4), or (5). If Option (2), (3), (4), or
(5) is adopted during a Plan Year, such Option shall not become effective until the first day of the next Plan Year.
	
1.12	
 	
EXCEPTIONS TO CONTINUING ELIGIBILITY REQUIREMENTS
	

 	
 	

ý	
 	
Death, Disability, and Retirement Exception to Eligibility Requirements—Active Participants who do not meet any last day or Hours of Service requirement under Subsection 1.10(d) or
l.11(c) because they become disabled, as defined in Section 1.14, retire, as provided in Subsection 1.13(a), (b), or (c), or die shall nevertheless receive an allocation of Nonelective Employer and/or Matching Employer Contributions. No
Compensation shall be imputed to Active Participants who become disabled for the period following their disability.
	
1.13	
 	
RETIREMENT
	

 	
 	
(a)	
 	
The Normal Retirement Age under the Plan is (check one):
	

 	
 	

 	
 	
(1)	
 	

ý	
 	

age 65.
	

 	
 	

 	
 	
(2)	
 	
o	
 	

age            (specify between 55 and 64).
	

 	
 	

 	
 	
(3)	
 	

o	
 	

later of age            (not to exceed 65) or the fifth anniversary of the Participant's Employment Commencement Date.
	

 	
 	
(b)	
 	

o	
 	
The Early Retirement Age is the first day of the month after the Participant attains age            (specify 55 or greater) and
completes            years of Vesting Service.
	

 	
 	

 	
 	
Note: If this Option is elected, Participants who are employed by the Employer or a Related Employer on the date they reach Early Retirement Age shall be 100% vested in their Accounts under
the Plan.
	

 	
 	
(c)	
 	

ý	
 	
A Participant who becomes disabled, as defined in Section 1.14, is eligible for disability retirement.
	

 	
 	

 	
 	
Note: If this Option is elected, Participants who are employed by the Employer or a Related Employer on the date they become disabled shall be 100% vested in their Accounts under the
Plan.
	
1.14	
 	
DEFINITION OF DISABLED
	

 	
 	
A Participant is disabled if he/she (check the appropriate box(es)):
	

 	
 	
(a)	
 	
o	
 	

satisfies the requirements for benefits under the Employer's long-term disability plan.
	 	 	 	 	 	 	 	 	 	 	 

14

 

	

 	
 	
(b)	
 	

ý	
 	

satisfies the requirements for Social Security disability benefits.
	

 	
 	
(c)	
 	

ý	
 	

is determined to be disabled by a physician approved by the Employer.
	
1.15	
 	
VESTING
	

 	
 	
A Participant's vested interest in Matching Employer Contributions and/or Nonelective Employer Contributions, other than Safe Harbor Matching Employer and/or Nonelective Employer Contributions elected in
Subsection 1.10(a)(3) or l.11(a)(3), shall be based upon his years of Vesting Service and the schedule(s) selected below, except as provided in Subsection 1.21(d) or in the Vesting Schedule Addendum to the Adoption Agreement.
	

 	
 	
(a)	
 	
o	
 	

Years of Vesting Service shall exclude:
	

 	
 	

 	
 	
(1)	
 	

o	
 	

for new plans, service prior to the Effective Date as defined in Subsection 1.01(g)(l).
	

 	
 	

 	
 	
(2)	
 	

o	
 	

for existing plans converting from another plan document, service prior to the original Effective Date as defined in Subsection 1.01(g)(2).
	

 	
 	
(b)	
 	
Vesting Schedule(s)
	

 	
 	

 	
 	
Note: The vesting schedule selected below applies only to Nonelective Employer Contributions and Matching Employer Contributions other than safe harbor contributions under Option l.11(a)(3) or
Option 1.10(a)(3). Safe harbor contributions under Options l.11(a)(3) and 1.10(a)(3) are always 100% vested immediately.

	(1) Nonelective Employer Contributions

(check one):	 	(2) Matching Employer Contributions

(check one):
	
(A) o	
 	

N/A—No Nonelective

Employer Contributions	
 	
(A) o	
 	

N/A—No Matching

Employer Contributions
	
(B) o	
 	

100% Vesting immediately	
 	
(B) o	
 	

100% Vesting immediately
	
(C) o	
 	

3 year cliff (see C below)	
 	
(C) o	
 	

3 year cliff (see C below)
	
(D) o	
 	

5 year cliff (see D below)	
 	
(D) o	
 	

5 year cliff (see D below)
	
(E) o	
 	

6 year graduated (see E below)	
 	
(E) o	
 	

6 year graduated (see E below)
	
(F) o	
 	

7 year graduated (see F below)	
 	
(F) o	
 	

7 year graduated (see F below)
	
(G) ý	
 	
Other vesting

(complete G1 below)	
 	
(G) ý	
 	

Other vesting

(complete G2 below)

	 
	 	Applicable Vesting Schedule(s)
	 
	Years of Vesting Service
 
	 
	 	C
	 	D
	 	E
	 	F
	 	Gl
	 	G2
	 
	0	 	0	%	0	%	0	%	0	%	0.00	%	0.00	%
	1	 	0	%	0	%	0	%	0	%	20.00	%	20.00	%
	2	 	0	%	0	%	20	%	0	%	40.00	%	40.00	%
	3	 	100	%	0	%	40	%	20	%	60.00	%	60.00	%
	4	 	100	%	0	%	60	%	40	%	80.00	%	80.00	%
	5	 	100	%	100	%	80	%	60	%	100.00	%	100.00	%
	6	 	100	%	100	%	100	%	80	%	100.00	%	100.00	%
	7 or more	 	100	%	100	%	100	%	100	%	100	%	100	%

	

 	
 	

 	
 	
Note: A schedule elected under Gl or G2 above must be at least as favorable as one of the schedules in C, D, E or F above.
	 	 	 	 	 	 	 	 	 	 	 

15

 

	

 	
 	

 	
 	
Note: If the Plan is being amended to provide a more restrictive vesting schedule, the more favorable vesting schedule shall continue to apply to Participants who are Active Participants
immediately prior to the later of (1) the effective date of the amendment or (2) the date the amendment is adopted.
	

 	
 	
(c)	
 	

o	
 	
A vesting schedule more favorable than the vesting schedule(s) selected above applies to certain Participants. Please complete the Vesting Schedule Addendum to the Adoption
Agreement.
	

 	
 	
(d)	
 	
Application of Forfeitures—If a Participant forfeits any portion of his non-vested Account balance as provided in Section 6.02, 6.04, 6.07, or 11.08, such forfeitures shall be
(check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

N/A—Either (A) no Matching Employer Contributions are made with respect to Deferral Contributions under the Plan and all other Employer Contributions are 100% vested when made or (B) there are no Employer Contributions under the
Plan.
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

applied to reduce Employer contributions.
	

 	
 	

 	
 	
(3)	
 	
o	
 	

allocated among the Accounts of eligible Participants in the manner provided in Section 1.11. (Only if Option l.11(a) or (b) is checked.)
	
1.16	
 	
PREDECESSOR EMPLOYER SERVICE
	

 	
 	

ý	
 	
Service for purposes of eligibility in Subsection 1.04(b) and vesting in Subsection 1.15(b) of this Plan shall include service with the following predecessor employer(s):
	

 	
 	

 	
 	

D2 Discounts Direct
	
1.17	
 	
PARTICIPANT LOANS
	

 	
 	
Participant loans (check one):
	

 	
 	
(a)	
 	
o	
 	
are allowed in accordance with Article 9 and loan procedures outlined in the Service Agreement.
	

 	
 	
(b)	
 	

ý	
 	
are not allowed.
	
1.18	
 	
IN-SERVICE WITHDRAWALS
	

 	
 	
Participants may make withdrawals prior to termination of employment under the following circumstances (check the appropriate box(es)):
	

 	
 	
(a)	
 	

ý	
 	
Hardship Withdrawals—Hardship withdrawals from a Participant's Deferral Contributions Account shall be allowed in accordance with Section 10.05, subject to a $500 minimum
amount.
	

 	
 	
(b)	
 	

ý	
 	
Age 591/2—Participants shall be entitled to receive a distribution of all or any portion of the following Accounts upon
attainment of age 591/2 (check one):
	

 	
 	

 	
 	
(1)	
 	
o	
 	

Deferral Contributions Account.
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

All vested account balances.
	

 	
 	
(c)	
 	
Withdrawal of Employee Contributions and Rollover Contributions—
	

 	
 	

 	
 	
(1)	
 	

Unless otherwise provided below, Employee Contributions may be withdrawn in accordance with Section 10.02 at any time.
	 	 	 	 	 	 	 	 	 	 	 

16

 

	

 	
 	

 	
 	

 	
 	
(A)	
 	
o	
 	

Employees may not make withdrawals of Employee Contributions more frequently than:

  

                        .
	

 	
 	

 	
 	
(2)	
 	

Rollover Contributions may be withdrawn in accordance with Section 10.03 at any time.
	

 	
 	
(d)	
 	

o	
 	
Protected In-Service Withdrawal Provisions—Check if the Plan was converted by plan amendment or received transfer contributions from another defined contribution plan, and benefits
under the other defined contribution plan were payable as (check the appropriate box(es)):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

an in-service withdrawal of vested employer contributions maintained in a Participant's Account (check (A) and/or (B)):
	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

for at least            (24 or more) months.
	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

o Special restrictions applied to such in-service withdrawals under the prior plan that the Employer wishes to continue under the Plan as restated hereunder. Please complete the Protected
In-Service Withdrawals Addendum to the Adoption Agreement identifying the restrictions.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

after the Participant has at least 60 months of participation.
	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

o Special restrictions applied to such in-service withdrawals under the prior plan that the Employer wishes to continue under the Plan as restated hereunder. Please complete the Protected
In-Service Withdrawals Addendum to the Adoption Agreement identifying the restrictions.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

another in-service withdrawal option that is a "protected benefit" under Code Section 41l(d)(6) or an in-service hardship withdrawal option not otherwise described in Section 1.18(a). Please complete the Protected In-Service Withdrawals
Addendum to the Adoption Agreement identifying the in-service withdrawal option(s).
	
1.19	
 	
FORM OF DISTRIBUTIONS
	

 	
 	
Subject to Section 13.01, 13.02 and Article 14, distributions under the Plan shall be paid as provided below. (Check the appropriate box(es) and, if any forms of payment
selected in (b), (c) and/or (d) apply only to a specific class of Participants, complete Subsection (b) of the Forms of Payment Addendum.)
	

 	
 	
(a)	
 	
Lump Sum Payments—Lump sum payments are always available under the Plan.
	

 	
 	
(b)	
 	

ý	
 	
Installment Payments—Participants may elect distribution under a systematic withdrawal plan (installments).
	

 	
 	
(c)	
 	
o	
 	
Annuities (Check if the Plan is retaining any annuity form(s) of payment.)
	

 	
 	

 	
 	
(1)	
 	

An annuity form of payment is available under the Plan for the following reason(s) (check (A) and/or (B), as applicable):
	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

As a result of the Plan's receipt of a transfer of assets from another defined contribution plan or pursuant to the Plan terms prior to the Amendment Effective Date specified in Section 1.01(g)(2), benefits were previously payable in the form of
an annuity that the Employer elects to continue to be offered as a form of payment under the Plan.
	 	 	 	 	 	 	 	 	 	 	 

17

 

	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

The Plan received a transfer of assets from a defined benefit plan or another defined contribution plan that was subject to the minimum funding requirements of Code Section 412 and therefore an annuity form of payment is a protected benefit
under the Plan in accordance with Code Section 411(d)(6).
	

 	
 	

 	
 	
(2)	
 	

The normal form of payment under the Plan is (check (A) or (B)):
	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

A lump sum payment.
	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

Optional annuity forms of payment (check (I) and/or (II), as applicable). (Must check and complete (I) if a life annuity is one of the optional annuity forms of payment under the Plan.)
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
(I) o A married Participant who elects an annuity form of payment shall receive a qualified joint
and            % (at least 50%) survivor annuity. An unmarried Participant shall receive a single life annuity, unless a different form of
payment is specified below:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
(II) o Other annuity form(s) of payment. Please complete Subsection (a) of the Forms of Payment Addendum describing the other
annuity form(s) of payment available under the Plan.
	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

A life annuity (complete (i) and (ii) and check (iii) if applicable).
	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

The normal form for married Participants is a qualified joint and            % (at least 50%) survivor annuity. The normal form for unmarried
Participants is a single life annuity, unless a different annuity form is specified below:
	

 	
 	

 	
 	

 	
 	

 	
 	
(ii)	
 	

The qualified preretirement survivor annuity provided to a Participant's spouse is purchased with    % (at least 50%) of the Participant's Account.
	

 	
 	

 	
 	

 	
 	

 	
 	
(iii)	
 	

o Other annuity form(s) of payment. Please complete Subsection (a) of the Forms of Payment Addendum describing the other annuity form(s) of payment available under the Plan.
	

 	
 	
(d)	
 	

o	
 	
Other Non-Annuity Form(s) of Payment—As a result of the Plan's receipt of a transfer of assets from another plan or pursuant to the Plan terms prior to the Amendment Effective Date
specified in 1.01(g)(2), benefits were previously payable in the following form(s) of payment not described in (a), (b) or (c) above and the Plan will continue to offer these form(s) of payment:
	

 	
 	
(e)	
 	

o	
 	
Eliminated Forms of Payment Not Protected Under Code Section 411(d)(6). Check if either (1) under the Plan terms prior to the Amendment Effective Date or (2) under the
terms of another plan from which assets were transferred, benefits were payable in a form of payment that will cease to be offered after a specified date. Please complete Subsection (c) of the Forms of Payment Addendum describing the forms of
payment previously available and the effective date of the elimination of the form(s) of payment.
	
1.20	
 	
TIMING OF DISTRIBUTIONS
	

 	
 	
Except as provided in Subsection 1.20(a) or (b) and the Postponed Distribution Addendum to the Adoption Agreement, distribution shall be made to an eligible Participant from his vested interest in his Account
as soon as reasonably practicable following the date the Participant's application for distribution is received by the Administrator.
	 	 	 	 	 	 	 	 	 	 	 

18

 

	

 	
 	
(a)	
 	
Required Commencement of Distribution—If a Participant does not elect to receive benefits as of an earlier date, as permitted under the Plan, distribution of a Participant's
Account shall begin as of the Participant's Required Beginning Date.
	

 	
 	
(b)	
 	

o	
 	
Postponed Distributions—Check if the Plan was converted by plan amendment from another defined contribution plan that provided for the postponement of certain distributions from
the Plan to eligible Participants and the Employer wants to continue to administer the Plan using the postponed distribution provisions. Please complete the Postponed Distribution Addendum to the Adoption Agreement indicating the types of
distributions that are subject to postponement and the period of postponement.
	

 	
 	

 	
 	
Note: An Employer may not provide for postponement of distribution to a Participant beyond the 60th day following the close of the Plan Year in which (1) the Participant attains Normal
Retirement Age under the Plan, (2) the Participant's 10th anniversary of participation in the Plan occurs, or (3) the Participant's employment terminates, whichever is latest.
	
1.21	
 	

TOP HEAVY STATUS
	

 	
 	
(a)	
 	
The Plan shall be subject to the Top-Heavy Plan requirements of Article 15 (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

for each Plan Year, whether or not the Plan is a "top-heavy plan" as defined in Subsection 15.01(f).
	

 	
 	

 	
 	
(2)	
 	

ý	
 	

for each Plan Year, if any, for which the Plan is a "top-heavy plan" as defined in Subsection 15.01(f).
	

 	
 	

 	
 	
(3)	
 	
o	
 	

Not applicable. (Choose only if Plan covers only employees subject to a collective bargaining agreement.)
	

 	
 	
(b)	
 	
In determining whether the Plan is a "top-heavy plan" for an Employer with at least one defined benefit plan, the following assumptions shall apply:
	

 	
 	

 	
 	
(1)	
 	

o	
 	

Interest rate:            % per annum.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Mortality table:            .
	

 	
 	

 	
 	
(3)	
 	

ý	
 	

Not applicable. (Choose only if either (A) Plan covers only employees subject to a collective bargaining agreement or (B) Employer does not maintain and has not maintained any defined benefit plan during the
five-year period ending on the applicable "determination date", as defined in Subsection 15.01(a).)
	

 	
 	
(c)	
 	
If the Plan is or is treated as a "top-heavy plan" for a Plan Year, each non-key Employee shall receive an Employer Contribution of at least 3.0 (3, 4, 5, or 71/2)% of Compensation for
the Plan Year in accordance with Section 15.03. The minimum Employer Contribution provided in this Subsection 1.21(c) shall be made under this Plan only if the Participant is not entitled to such contribution under another qualified plan of the
Employer, unless the Employer elects otherwise below:
	

 	
 	

 	
 	
(1)	
 	
o	
 	

The minimum Employer Contribution shall be paid under this Plan in any event.
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Another method of satisfying the requirements of Code Section 416. Please complete the 416 Contribution Addendum to the Adoption Agreement describing the way in which the minimum contribution requirements will be satisfied in the event the Plan
is or is treated as a "top-heavy plan".
	

 	
 	

 	
 	
(3)	
 	

o	
 	

Not applicable. (Choose only if Plan covers only employees subject to a collective bargaining agreement.)
	 	 	 	 	 	 	 	 	 	 	 

19

 

	

 	
 	

 	
 	
Note: The minimum Employer contribution may be less than the percentage indicated in Subsection 1.21(c) above to the extent provided in Section 15.03.
	

 	
 	
(d)	
 	
If the Plan is or is treated as a "top-heavy plan" for a Plan Year, the following vesting schedule shall apply instead of the schedule(s) elected in Subsection 1.15(b) for such Plan Year and each Plan Year
thereafter (check one):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

Not applicable. (Choose only if either (A) Plan provides for Nonelective Employer Contributions and the schedule elected in Subsection 1.15(b)(1) is at least as favorable in all cases as the schedules available below or
(B) Plan covers only employees subject to a collective bargaining agreement.)
	

 	
 	

 	
 	
(2)	
 	

o	
 	

100% vested after            (not in excess of 3) years of Vesting Service.
	

 	
 	

 	
 	
(3)	
 	

ý	
 	

Graded vesting:

	
Years of Vesting Service
 
	
 	

Vesting

Percentage
	
 	

Must be

at Least
	
 
	0	 	0.00	%	0	%
	1	 	20.00	%	0	%
	2	 	40.00	%	20	%
	3	 	60.00	%	40	%
	4	 	80.00	%	60	%
	5	 	100.00	%	80	%
	6 or more	 	100.00	%	100	%

	

 	
 	

 	
 	
Note: If the Plan provides for Nonelective Employer Contributions and the schedule elected in Subsection 1.15(b)(1) is more favorable in all cases than the schedule elected in Subsection
1.21(d) above, then the schedule in Subsection 1.15(b)(1) shall continue to apply even in Plan Years in which the Plan is a "top-heavy plan".
	
1.22	
 	
CORRECTION TO MEET 415 REQUIREMENTS UNDER MULTIPLE DEFINED CONTRIBUTION PLANS
	

 	
 	

If the Employer maintains other defined contribution plans, annual additions to a Participant's Account shall be limited as provided in Section 6.12 of the Plan to meet the requirements of Code Section 415, unless the Employer elects
otherwise below and completes the 415 Correction Addendum describing the order in which annual additions shall be limited among the plans.
	

 	
 	
(a)	
 	

o	
 	
Other Order for Limiting Annual Additions
	
1.23	
 	
INVESTMENT DIRECTION
	

 	
 	
Investment Directions—Participant Accounts shall be invested (check one):
	

 	
 	
(a)	
 	

o	
 	

in accordance with the investment directions provided to the Trustee by the Employer for allocating all Participant Accounts among the Options listed in the Service Agreement.
	

 	
 	
(b)	
 	

ý	
 	

in accordance with the investment directions provided to the Trustee by each Participant for allocating his entire Account among the Options listed in the Service Agreement.
	 	 	 	 	 	 	 	 	 	 	 

20

 

	

 	
 	
(c)	
 	
o	
 	

in accordance with the investment directions provided to the Trustee by each Participant for all contribution sources in his Account, except that the following sources shall be invested in accordance with the investment directions provided by the
Employer (check (1) and/or (2)):
	

 	
 	

 	
 	
(1)	
 	

o	
 	

Nonelective Employer Contributions
	

 	
 	

 	
 	
(2)	
 	

o	
 	

Matching Employer Contributions
	

 	
 	

 	
 	

 	
 	

The Employer must direct the applicable sources among the same investment options made available for Participant directed sources listed in the Service Agreement.
	
1.24	
 	
RELIANCE ON OPINION LETTER
	

 	
 	

An adopting Employer may rely on the opinion letter issued by the Internal Revenue Service as evidence that this Plan is qualified under Code Section 401 only to the extent provided in Announcement 2001-77, 2001-30 I.R.B. The Employer may not
rely on the opinion letter in certain other circumstances or with respect to certain qualification requirements, which are specified in the opinion letter issued with respect to this Plan and in Announcement 2001-77. In order to have reliance in such
circumstances or with respect to such qualification requirements, application for a determination letter must be made to Employee Plans Determinations of the Internal Revenue Service. Failure to fill out the Adoption Agreement properly may result in
disqualification of the Plan.
	

 	
 	

This Adoption Agreement may be used only in conjunction with Fidelity Basic Plan Document No. 02. The Prototype Sponsor shall inform the adopting Employer of any amendments made to the Plan or of the discontinuance or abandonment of the
prototype plan document.
	
1.25	
 	
PROTOTYPE INFORMATION:

	

Name of Prototype Sponsor:	
 	

Fidelity Management & Research Company
	Address of Prototype Sponsor:	 	82 Devonshire Street

Boston, MA 02109

Questions
regarding this prototype document may be directed to the following telephone number: 1-800-343-9184. 

21

  

 
 

EXECUTION PAGE
  (Fidelity's Copy)    
    

        IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this     day
of                  ,        .
 

	Employer:	 	    
	 	 
	By:	 	    
	 	 
	Title:	 	    
	 	 
	    	 	 	 	 
	

Employer:	
 	

    
	
 	

 
	By:	 	    
	 	 
	Title:	 	    
	 	 
	    	 	 	 	 

Accepted
by: 

Fidelity
Management Trust Company, as Trustee 

	By:	 	    
	 	Date:	 	    

	Title:	 	    
	 	 	 	 

22

 
EXECUTION PAGE

(Employer's Copy)  

        IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this     day
of                  ,        . 

	Employer:	 	    
	 	 
	By:	 	    
	 	 
	Title:	 	    
	 	 
	    	 	 	 	 
	

Employer:	
 	

    
	
 	

 
	By:	 	    
	 	 
	Title:	 	    
	 	 
	    	 	 	 	 

Accepted
by: 

Fidelity
Management Trust Company, as Trustee 

	By:	 	    
	 	Date:	 	    

	Title:	 	    
	 	 	 	 

23

   AMENDMENT EXECUTION PAGE  

        This page is to be completed in the event the Employer modifies any prior election(s) or makes a new election(s) in this Adoption Agreement. Attach the amended
page(s) of the Adoption Agreement to this execution page. 

        The
following section(s) of the Plan are hereby amended effective as of the date(s) set forth below: 

	Section Amended
 
	 	Page
	 	Effective Date

	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 

        IN
WITNESS WHEREOF, the Employer has caused this Amendment to be executed this     day of                  ,
        . 

	Employer:	 	    
	 	Employer:	 	    

	By:	 	    
	 	By:	 	    

	Title:	 	    
	 	Title:	 	    

	    	 	 	 	 	 	 

Accepted
by: 

Fidelity
Management Trust Company, as Trustee 

	By:	 	    
	 	Date:	 	    

	Title:	 	    
	 	 	 	 

24

  

 
 

ADDENDUM    
    
    Re: SPECIAL EFFECTIVE DATES
  for    
    

	 Plan Name:	 	Overstock.com 401(k) Plan
	

(a)	
 	

o	
 	
Special Effective Dates for Other Provisions—The following provisions (e.g., new eligibility requirements, new contribution formula, etc.) shall be effective as of the dates
specified herein:
	 	 	 	 	    

	 	 	 	 	    

	 	 	 	 	    

	 	 	 	 	    

	 	 	 	 	    

	 	 	 	 	    

	

(b)	
 	

o	
 	
Plan Merger Effective Dates—The following plan(s) were merged into the Plan after the Effective Date indicated in Subsection 1.01(g)(1) or (2), as applicable. The provisions of the
Plan are effective with respect to the merged plan(s) as of the date(s) indicated below:
	

 	
 	

(1)	
 	

Name of merged plan:	

    

	 	 	 	 	    

	 	 	 	 	    

	

 	
 	

 	
 	

Effective date:	

    

	

 	
 	

(2)	
 	

Name of merged plan:	

    

	 	 	 	 	    

	 	 	 	 	    

	

 	
 	

 	
 	

Effective date:	

    

	

 	
 	

(3)	
 	

Name of merged plan:	

    

	 	 	 	 	    

	 	 	 	 	    

	

 	
 	

 	
 	

Effective date:	

    

	

 	
 	

(4)	
 	

Name of merged plan:	

    

	 	 	 	 	    

	 	 	 	 	    

	

 	
 	

 	
 	

Effective date:	

    

	

 	
 	

(5)	
 	

Name of merged plan:	

    

	 	 	 	 	    

	 	 	 	 	    

	

 	
 	

 	
 	

Effective date:	

    

25

  

 
 

ADDENDUM    
    
    Re: SAFE HARBOR MATCHING EMPLOYER CONTRIBUTION
  for    
    

Plan Name: Overstock.com 401(k) Plan

	(a)
	Safe Harbor Matching Employer Contribution Formula

Note: Matching Employer Contributions made under this Option must be 100% vested when made and may only be distributed because of death, disability,
separation from service, age 591/2, or termination of the Plan without the establishment of a successor plan. In addition, each Plan Year, the Employer must provide written notice to
all Active Participants of their rights and obligations under the Plan. 

	(1)
	o 100% of the first 3% of the Active Participant's Compensation contributed to the Plan
and 50% of the next 2% of the Active Participant's Compensation contributed to the Plan.

	(A)
	o Safe harbor Matching Employer Contributions shall  not be made on behalf of Highly Compensated Employees.

Note: If the Employer selects this formula and does not elect Option 1.10(b), Additional Matching
Employer Contributions, Matching Employer Contributions will automatically meet the safe harbor contribution requirements for deemed satisfaction of the "ACP" test. (Employee Contributions must still
be tested.) 

	(2)
	o Other Enhanced Match: 

            %
of the first            % of the Active Participant's Compensation contributed to the plan, 

            %
of the next            % of the Active Participant's Compensation contributed to the plan, 

            %
of the next            % of the Active Participant's Compensation contributed to the plan. 

Note: To satisfy the safe harbor contribution requirement for the "ADP" test, the percentages specified above for Matching Employer Contributions may
not increase as the percentage of Compensation contributed increases, and the aggregate amount of Matching Employer Contributions at such rates must at least equal the aggregate amount of Matching
Employer Contributions which would be made under the percentages described in (a)(l) of this Addendum. 

	(A)
	o Safe harbor Matching Employer Contributions shall  not be made on behalf of Highly Compensated Employees.

	(B)
	o The formula specified above is also intended to satisfy the safe harbor contribution
requirement for deemed satisfaction of the "ACP" test with respect to Matching Employer Contributions. (Employee Contributions must still be tested.) 

Note: To satisfy the safe harbor contribution requirement for the "ACP" test, the Deferral Contributions and/or Employee Contributions matched cannot
exceed 6% of a Participant's Compensation. 

26

 

 
 

ADDENDUM    
    
    Re: SAFE HARBOR NONELECTIVE EMPLOYER CONTRIBUTION
  for    
    

Plan Name: Overstock.com 401(k) Plan  

(a)   Safe Harbor Nonelective Employer Contribution Election  

	(1)
	o For each Plan Year, the Employer shall contribute for each eligible Active Participant
an amount equal to                        % (not less than 3% nor more than 15%) of
such Active Participant's Compensation.

	(2)
	o The Employer may decide each Plan Year whether to amend the Plan by electing and
completing (A) below to provide for a contribution on behalf of each eligible Active Participant in an amount equal to at least 3% of such Active Participant's Compensation. 

Note: An Employer that has selected Subsection (a)(2) above must amend the Plan by electing (A) below and completing the Amendment Execution Page
no later than 30 days prior to the end of each Plan Year for which safe harbor Nonelective Employer Contributions are being made. 

	(A)
	o For the Plan Year
beginning                        , the Employer shall contribute for each
eligible Active Participant an amount equal to    % (not less than 3% nor more than 15%) of such Active Participant's Compensation. 

Note: Safe harbor Nonelective Employer Contributions must be 100% vested when made and may only be distributed because of death, disability, separation
from service, age 591/2, or termination of the Plan without the establishment of a successor plan. In addition, each Plan Year, the Employer must provide written notice to all Active
Participants of their rights and obligations under the Plan. 

	(b)
	o Safe harbor Nonelective Employer Contributions shall not be made on behalf of Highly
Compensated Employees.

	(c)
	o In conjunction with its election of the safe harbor described above, the Employer has
elected to make Matching Employer Contributions under Subsection 1.10 that are intended to meet the requirements for deemed satisfaction of the "ACP" test with respect to Matching Employer
Contributions. 

27

  

 
 

ADDENDUM    
    
    Re: PROTECTED IN-SERVICE WITHDRAWALS
  for    
    

Plan Name: Overstock.com 401(k) Plan

	(a)	 	Restrictions on In-Service Withdrawals of Amounts Held for Specified Period—The following restrictions apply to in-service withdrawals made in accordance with Subsection 1.18(d)(l)
(A) (cannot include any mandatory suspension of contributions restriction):
	 	 	 

	 	 	 

	 	 	 

	 	 	 

	 	 	 

	
(b)	
 	
Restrictions on In-Service Withdrawals Because of Participation in Plan for 60 or More Months—The following restrictions apply to in-service withdrawals made in accordance with
Subsection 1.18(d)(l)(B) (cannot include any mandatory suspension of contributions restriction):
	 	 	 

	 	 	 

	 	 	 

	 	 	 

	 	 	 

	
(c)	
 	

o	
 	
Other In-Service Hardship Withdrawal Provisions—In-service hardship withdrawals are permitted from a Participant's Deferral Contributions Account and the other sub-accounts
specified below, subject to the conditions otherwise applicable to hardship withdrawals from a Participant's Deferral Contributions Account:
	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

28

 

	
(d)	
 	

o	
 	
Other In-Service Withdrawal Provisions—In-service withdrawals from a Participant's Accounts specified below shall be available to Participants who satisfy the requirements also
specified below:
	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	

 	
 	
(1)	
 	

o	
 	

The following restrictions apply to a Participant's Account following an in-service withdrawal made pursuant to (d) above (cannot include any mandatory suspension of contributions restriction):
	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

29

 
 
 

ADDENDUM    
    
    Re: FORMS OF PAYMENT
  for    
    

Plan Name: Overstock.com 401(k) Plan

	(a)	 	The following optional forms of annuity will continue to be offered under the Plan:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
(b)	
 	

The forms of payment described in Section 1.19(b), (c) and/or (d) apply to the following class(es) of Participants:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	

 	
 	
Note: Please indicate if different classes of Participants are subject to different forms of payment.
	
(c)	
 	

The following forms of payment were previously available under the Plan but will be eliminated as of the date specified in subsection (4) below (check the applicable (box(es) and complete (4)):
	

 	
 	
(1)	
 	

o	
 	
Installment Payments.
	

 	
 	
(2)	
 	

o	
 	
Annuities.
	

 	
 	

 	
 	
(A)	
 	

o	
 	

The normal form of payment under the Plan was a lump sum and all optional annuity forms of payment not listed under Section 1.19(c)(2)(A)(i) are eliminated. The eliminated forms of payment include the following:
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	

 	
 	

 	
 	
(B)	
 	

o	
 	

The normal form of payment under the Plan was a life annuity and all annuity forms of payment not listed under Section 1.19(c)(2)(B) are eliminated. (Complete (i) and (ii) and, if applicable, (iii).)

	

 	
 	

 	
 	

 	
 	

 	
 	
(i)	
 	

The normal form for married Participants was a qualified joint and    % (at least 50%) survivor annuity. The normal form for unmarried Participants was a single life annuity, unless a
different form is specified below:
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

30

 

	

 	
 	

 	
 	

 	
 	

 	
 	
(ii)	
 	

The qualified preretirement survivor annuity provided to a Participant's spouse was purchased with    % (at least 50%) of the Participant's Account.
	

 	
 	

 	
 	

 	
 	

 	
 	
(iii)	
 	

The other annuity form(s) of payment previously available under the Plan included the following:
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	

 	
 	
(3)	
 	

o	
 	
Other Non-Annuity Forms of Payment.    All other non-annuity forms of payment that are not listed in Section 1.19(d) but that were previously available under
the Plan are eliminated. The eliminated non-annuity forms of payment include the following:
	

 	
 	
(4)	
 	

The form(s) of payment described in this Subsection (c) will not be offered to Participants who have an Annuity Starting Date which occurs on or
after                        (cannot be earlier than September 6, 2000).
Notwithstanding the date entered above, the forms of payment described in this Subsection (c) will continue to be offered to Participants who have an Annuity Starting Date that occurs (1) within 90 days following the date the Employer
provides affected Participants with a summary that satisfies the requirements of 29 CFR 2520.104b-3 and that notifies them of the elimination of the applicable form(s) of payment, but (2) no later than the first day of the second Plan Year
following the Plan Year in which the amendment eliminating the applicable form(s) of payment is adopted.

31

 
 
 

ADDENDUM    
    
    Re: VESTING SCHEDULE
  for    
    

Plan Name: Overstock.com 401(k) Plan

	(a)	 	More Favorable Vesting Schedule
	

 	
 	
(1)	
 	

The following vesting schedule applies to the class of Participants described in (a)(2) below:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

 	
 	
(2)	
 	

The vesting schedule specified in (a)(1) above applies to the following class of Participants:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
(b)	
 	

o	
 	
Additional Vesting Schedule
	

 	
 	
(1)	
 	

The following vesting schedule applies to the class of Participants described in (b)(2) below:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

 	
 	
(2)	
 	

The vesting schedule specified in (b)(1) above applies to the following class of Participants:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

32

  

 
 

ADDENDUM    
    
    Re: POSTPONED DISTRIBUTIONS
  for    
    

        Plan Name:    Overstock.com 401(k) Plan  

        Postponement of Certain Distributions to Eligible Participants—The types of distributions specified
below to eligible Participants of their vested interests in their Accounts shall be postponed for the period also specified below: 

        Notwithstanding
the foregoing, if the Employer selected an Early Retirement Age in Subsection 1.14(b) that is the later of an attained age or completion of a specified number of years of
Vesting Service, any Participant who terminates employment on or after completing the required number of years of Vesting Service, but before attaining the required age shall be eligible to commence
distribution of his vested interest in his Account upon attaining the required age. 

33

 
 
 

ADDENDUM    
    
    Re: 415 CORRECTION
  for    
    

        Plan Name:    Overstock.com 401(k) Plan

	(a)
	Other Formula for Limiting Annual Additions to Meet 415—If the Employer, or any employer required
to be aggregated with the Employer under Code Section 415, maintains any other qualified defined contribution plans or any "welfare benefit fund", "individual medical account", or "simplified
medical account", annual additions to such plans shall be limited as follows to meet the requirements of Code Section 415: 

34

 
 
 

ADDENDUM    
    
    Re: 416 CONTRIBUTION
  for    
    

        Plan Name:    Overstock.com 401(k) Plan

	(a)
	Other Method of Satisfying the Requirements of 416—If the Employer, or any employer required to be
aggregated with the Employer under Code Section 416, maintains any other qualified defined contribution or defined benefit plans, the minimum benefit requirements of Code Section 416
shall be satisfied as follows: 

35

  

 
 

THE CORPORATEPLAN FOR RETIREMENTSM (PROFIT SHARING/401(K) PLAN)    
    
    ADDENDUM TO ADOPTION AGREEMENT    
    
    FIDELITY BASIC PLAN DOCUMENT No. 02    
    
    RE: ECONOMIC GROWTH
AND TAX RELIEF RECONCILIATION ACT OF 2001 ("EGTRRA")
  AMENDMENTS for    

Plan Name: Overstock.com 401(k) Plan  

PREAMBLE  

        Adoption and Effective Date of Amendment.    This amendment of the Plan is adopted to reflect certain
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). This amendment is intended as good faith compliance with the requirements of EGTRRA and is to be construed in
accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided below, this amendment shall be effective as of the first day of the first plan year beginning after
December 31, 2001. 

        Supersession of Inconsistent Provisions.    This amendment shall supersede the provisions of the Plan to
the extent those provisions are inconsistent with the provisions of this amendment. 

	(a)
	Catch-up Contributions.    The Employer must select either (1) or (2) below
to indicate whether eligible Participants age 50 or older by the end of a calendar year will be permitted to make catch-up contributions to the Plan, as described in
Section 5.03(b)(1):

	(1)
	ý
Catch-up contributions shall apply effective January 1, 2002, unless a later effective date is specified herein,
            .

	(2)
	o
Catch-up contributions shall not apply. 

Note:    The Employer must not select (a)(1) above unless all plans of all employers treated,
with the Employer, as a single employer under subsections (b), (c), (m), or (o) of Code Section 414 also permit catch up contributions (except a plan maintained by the Employer that is
qualified under Puerto Rico law), as provided in Code Section 414(v)(4) and IRS guidance issued thereunder. The effective date applicable to catch-up contributions must likewise be
consistent among all plans described immediately above, to the extent required in Code Section 414(v)(4) and IRS guidance issued thereunder. 

	(b)
	Plan Limit on Elective Deferral for Plans Permitting Catch-up Contributions.    This
Section (b) is inapplicable if the Plan converted to this Fidelity document from any other document effective after April 1, 2002. 

For
Plans that permit catch-up contributions beginning on or before April 1, 2002, pursuant to (a)(1) above, the 60% Plan Limit described in Section 5.03(b)(2) shall apply
beginning April 1, 2002, unless (b)(1) or (b)(2) is selected below. For Plans that permit catch up contributions beginning after April 1, 2002, pursuant to (a)(1) above, the Plan Limit
set out in Section 1.07(a)(1) shall continue to apply unless and until the Employer's election in (b)(2) below, if any, provides for a change in the Plan Limit. 

	(1)
	o
The Plan Limit set out in Section 1.07(a)(1) shall continue to apply on and after April 1, 2002.

	(2)
	o
The Plan Limit set out in Section 1.07(a)(1) shall continue to apply until                        (cannot be before
April 1,
2002), and the Plan Limit after that date shall be            % of Compensation each payroll period. 

36

 

	(c)
	Matching Employer Contributions on Catch-up Contributions. The Employer must select the box below
only if the Employer selected (a)(1) above, and the Employer wants to provide Matching Employer Contributions on catch-up contributions. In that event, the same rules that apply to
Matching Employer Contributions on Deferral Contributions other than catch-up contributions will apply to Matching Employer Contributions on catch-up contributions.

	o
	Notwithstanding
anything in 2.01(1) to the contrary, Matching Employer Contributions under Section 1.10 shall apply to
catch-up contributions described in Section 5.03(b)(1).

 

	(d)
	Vesting of Matching Employer Contributions. Complete this section (d) only if the vesting schedule for
Matching Employer Contributions under the Plan must be amended to comply with EGTRRA. This is the case if, in the absence of an amendment, the vesting schedule for Matching Employer Contributions
would not be at least as rapid as Three-Year Cliff or Six-Year Graded Vesting, effective for Participants with at least one Hour of Service on or after the first Plan Year
beginning after December 31, 2001, subject to the rule described in (2) below. Complete (d)(1) to specify the new vesting schedule; any vesting schedule changes must conform to the
requirements of Section 16.04 of the Plan. Only complete (d)(2) if your Plan is maintained pursuant to a collective bargaining agreement ratified by June 7, 2001. Complete (d)(3) if the
Employer wants to apply the vesting schedule selected in (d)(1) to only the portion of a Participant's accrued benefits derived from Matching Employer Contributions for Plan Years beginning after
December 31, 2001.

	(1)
	Vesting Schedule for Matching Employer Contributions. Unless the Employer checks the box in (d)(3) of this EGTRRA Amendments Addendum,
the Vesting Schedule set forth below shall apply to all accrued benefits derived from Matching Employer Contributions for Participants who complete an Hour of Service under the Plan in a Plan Year
beginning after December 31, 2001, regardless of the Plan Year for which such contributions are made, subject to the Employer's election of a later effective date as indicated in (d)(2) below:

	o
	100%
Vesting immediately

	o
	3-Year
Cliff (see C below)

	o
	6-Year
Graded (see E below)

	o
	Other
Vesting Schedule (complete G3 below, but must be at least as favorable as either C or E) 

Applicable Vesting Schedule  

	Years of Vesting Service
 
	 	C
	 	E
	 	G3
	 
	0	 	0	%	0	%	            	%
	1	 	0	%	0	%	            	%
	2	 	0	%	20	%	            	%
	3	 	100	%	40	%	            	%
	4	 	100	%	60	%	            	%
	5	 	100	%	80	%	            	%
	6 or more	 	100	%	100	%	100	%

	(2)
	Delayed Effective Date for Plans Subject to Collective Bargaining. If the plan is maintained pursuant to one or more collective
bargaining agreements ratified by June 7, 2001, the effective date for faster vesting of Matching Employer Contributions for Participants covered by such a collective bargaining agreement can
be delayed by checking the box below and inserting the effective date, which is the first day of the first Plan Year beginning on or after the earlier of (i) January 1, 2006, or
(ii) the later of the date on which the last of the 

37

 

collective
bargaining agreements described above terminates (without regard to any extension on or after June 7, 2001), or January 1, 2002. 

	o
	The
vesting schedule elected by the Employer in (d)(1) above shall apply to those Participants covered by a collective bargaining
agreement(s) ratified by June 7, 2001, who have at least one Hour of Service on or after. Unless the Employer selects the box in (d)(3) below, the vesting schedule selected in (d)(1) above
shall apply to the entire accrued benefit derived from Matching Employer Contributions of such Participants with an Hour of Service in a Plan Year beginning on or after the date specified herein. For
all other Participants, the vesting schedule shall apply as of the date and in the manner described in (d)(1) and, where applicable, (d)(3).

	(3)
	Grandfathered Application of Prior Vesting Schedule. The Employer must check the box below only if the Employer wants to grandfather an
existing vesting schedule and apply the vesting schedule that the Employer selected in (d)(1) above to only that portion of a Participant's accrued benefit derived from Matching Employer Contributions
for Plan Years beginning after December 31, 2001, (and/or for Plan Years beginning on or after the date specified in (d)(2), for any Participants subject to (d)(2), if selected by the
Employer).

	o
	The
Vesting Schedule in (d)(1) above shall apply only to the portion of a Participant's accrued benefits derived from Matching Employer
Contributions under the Plan in a Plan Year beginning after December 31, 2001, or such later date applicable to the Participant if specified in (d)(2) above.

 

	(e)
	Rollovers of After-Tax Employee Contributions to the Plan. The Employer must mark the box below
only if the Employer does not want the Plan to accept Participant Rollover Contributions of qualified plan after-tax employee contributions,
as described in Section 5.06, which would otherwise be effective for distributions after December 31, 2001:

	o
	Participant
Rollover Contributions or direct rollovers of qualified plan after-tax employee
contributions shall not be accepted by the Plan at any time.

 

	(f)
	Application of the Same Desk Rule. The Employer must mark the box below only if the Employer wants to
discontinue the application of the same desk rule set forth in Section 12.01(a).

	o
	Effective
for distributions from the Plan after December 31, 2001, or such later date as specified herein                        , a
Participant's elective deferrals, qualified nonelective contributions and qualified matching contributions, if applicable, and earnings attributable to such amounts shall be distributable, upon a
severance from employment as described in Section 12.01(b), effective only for severances occurring
after                        (or, if no date is entered, regardless of when the severance occurred). 

38

  

 
 

Amendment Execution
  (Fidelity's Copy)    
    

        IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed this            day
of                        ,
                        .
 

	Employer:	 	 	 	Employer:	 	 
	 	 	
	 	 	 	

	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	

Title:	
 	

 	
 	

Title:	
 	

 
	 	 	
	 	 	 	

	
Accepted by:    Fidelity Management Trust Company, as Trustee
	

By:	
 	

 	
 	

Date:	
 	

 
	 	 	
	 	 	 	

	Title:	 	 	 	 	 	 
	 	 	
	 	 	 	 

39

 
 
 

Amendment Execution
  (Employer's Copy)    
    

        IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed this            day
of                        ,
                        .
 

	Employer:	 	 	 	Employer:	 	 
	 	 	
	 	 	 	

	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	

Title:	
 	

 	
 	

Title:	
 	

 
	 	 	
	 	 	 	

	
Accepted by:    Fidelity Management Trust Company, as Trustee
	

By:	
 	

 	
 	

Date:	
 	

 
	 	 	
	 	 	 	

	Title:	 	 	 	 	 	 
	 	 	
	 	 	 	 

40

QuickLinks

ADOPTION AGREEMENT ARTICLE 1 NON-STANDARDIZED PROFIT SHARING/401(K) PLAN

EXECUTION PAGE (Fidelity's Copy)

ADDENDUM Re: SPECIAL EFFECTIVE DATES for

ADDENDUM Re: SAFE HARBOR MATCHING EMPLOYER CONTRIBUTION for

ADDENDUM Re: SAFE HARBOR NONELECTIVE EMPLOYER CONTRIBUTION for

ADDENDUM Re: PROTECTED IN-SERVICE WITHDRAWALS for

ADDENDUM Re: FORMS OF PAYMENT for

ADDENDUM Re: VESTING SCHEDULE for

ADDENDUM Re: POSTPONED DISTRIBUTIONS for

ADDENDUM Re: 415 CORRECTION for

ADDENDUM Re: 416 CONTRIBUTION for

THE CORPORATEPLAN FOR RETIREMENTSM (PROFIT SHARING/401(K) PLAN) ADDENDUM TO ADOPTION AGREEMENT FIDELITY BASIC PLAN DOCUMENT No. 02 RE: ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001
("EGTRRA") AMENDMENTS for

Amendment Execution (Fidelity's Copy)

Amendment Execution (Employer's Copy)

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