Document:

Exhibit 10.1 to Pentair, Inc. Form S-8 dated July 18, 2005

Exhibit 10.1 

PENTAIR, INC.

RETIREMENT SAVINGS AND STOCK INCENTIVE PLAN

As Amended and Restated Effective January 1, 2001

(and compiled to include subsequent amendments) 

ARTICLE I

HISTORY AND BACKGROUND 

        Effective January 1, 1984,
Pentair, Inc. (“Pentair”) adopted a tax-qualified discretionary contribution plan with a cash or deferred arrangement
(i.e., a 401(k) feature) for the benefit of its eligible employees. Such plan was amended in July, 1984 to accept rollover
contributions. Pentair received a determination letter from the Internal Revenue Service, dated January 17, 1985, to the effect
that such plan and its related trust, as adopted, qualified under sections 401(a) and 501(a), respectively, of the Internal
Revenue Code of 1954, as amended through the Tax Equity and Fiscal Responsibility Act of 1982. 

        Pentair amended such plan on
December 31, 1984 to reflect applicable requirements of the Internal Revenue Code of 1954, as amended through the Retirement
Equity Act of 1984. Said amendments were generally made effective as of January 1, 1985. Pentair again amended such plan effective
April 5, 1985, January 1, 1987 and August 1, 1988 to modify its eligibility requirements and to clarify the entitlement to
participate and eligibility for contributions with respect to subsidiary employees affected by various corporate transactions.

        Such plan was amended and
restated, effective as of March 1, 1990, to add an employee stock ownership plan, of the stock bonus type, which was intended to
qualify under ERISA section 407(d)(6) and Code section 4975(e)(7) and which held the Pentair, Inc. 8% Callable Cumulative Voting
Convertible Preferred Stock, Series 1990 (the “1990 Preferred Stock”). Pentair received a determination letter from the
Internal Revenue Service, dated March 3, 1992, to the effect that such plan, as amended and restated effective March 1, 1990,
remained tax-qualified. Because the Internal Revenue Service was not at that time issuing determination letters with respect to
applicable provisions of the Tax Reform Act of 1986, however, said determination letter was limited to the law as in effect prior
to enactment of the Tax Reform Act of 1986. 

        Pentair amended and restated
such plan, effective January 1, 1994, to in general reflect such requirements of federal tax and pension law as had become
applicable to it subsequent to the date of its last restatement and to consolidate in one document all amendments of ongoing
effect adopted after such restatement. Pentair received a determination letter from the Internal Revenue Service dated May 28,
1996, to the effect that such plan and the three (3) trusts under which its assets were held, as so amended and restated,
qualified under sections 401(a) and 501(a), respectively, of the Internal Revenue Code of 1986, as amended. This letter was
conditioned on the adoption of amendments proposed to the Internal Revenue Service during its review of the application for said
letter, which amendments were timely adopted. 

        Effective January 1, 1998,
Pentair established a new Retirement Savings and Incentive Trust Agreement, into which was combined the then existing Retirement
Savings and Incentive Trust and the Pooled Stable Investment Trust, and appointed Fidelity Management Trust Company
(“Fidelity”) as Trustee. Effective March 9, 1998, the Employee Stock Ownership Plan Trust was combined into the above
described trust, which was renamed the Retirement Savings and Stock Incentive Trust, and Fidelity continued to serve as Trustee.

        Thereafter, the Exempt Loan
by means of which the Trust acquired the 1990 Preferred Stock was repaid, and effective January 13, 1999, Pentair called the 1990
Preferred Stock pursuant to the terms applicable to such stock. The relevant fiduciary responded to such call by directing the
Trustee to convert the 1990 Preferred Stock into shares of Pentair common stock. All such stock received pursuant to this
conversion was allocated to the accounts of participants or their beneficiaries, as applicable. 

        Pentair is amending and
restating such plan, effective January 1, 2001, to (i) reflect such requirements of federal tax and pension law as have become
applicable to it since its last restatement, (ii) adopt, effective as of January 1, 2002, model or other amendments to reflect
such provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 as are applicable to it and
(iii) consolidate in one document all amendments of ongoing affect adopted since the last plan restatement, including special
rules or provisions applicable to specific groups of participants. 

ARTICLE II

DEFINITIONS AND CONSTRUCTION 

        Section
2.1    Definitions.   Unless the context clearly or necessarily indicates the
contrary, when capitalized the following words and phrases shall have the following meanings when used in this Article or other
parts of the Plan. 

        (1)    “Accounts”
are the accounts under the Plan to be maintained for each Participant as provided in Section 6.2. 

        (2)    “After-tax Deposits”
are voluntary employee after-tax contributions made by or at the direction of a Participant pursuant to Section 3.3(a).

        (3)    “Before-tax Deposits”
are Deposits made at the direction of a Participant pursuant to Section 3.2(a) and which are made pursuant to a cash or deferred
arrangement described in Code section 401(k). 

        (4)    “Before-tax Matched Deposits”
are Before-tax Deposits made at the direction of a Participant and which are described in Section 3.2(b). 

        (5)    “Before-tax Unmatched Deposits”
are all Before-tax Deposits made at the direction of a Participant pursuant to Section 3.2(a) and which are not described in
Section 3.2(b). 

        (6)    “Beneficiary”
is the person designated on Timely Notice by a Participant to receive benefits accumulated hereunder in the event of the
Participant’s death. Except as otherwise provided by a QDRO, if a Participant is married at the time of death, the
Beneficiary shall be the Participant’s Spouse at such time, unless (i) such Spouse has consented in writing to the
designation of a different Beneficiary, (ii) such consent is witnessed by an authorized Plan representative or a notary public,
and (iii) the Participant is survived by a Beneficiary designated as such in the manner described above. If the Participant is not
survived by either a Spouse or a designated Beneficiary, the Participant’s estate shall be the Beneficiary. 

        (7)    “Board”is the Board of Directors of Pentair, Inc.  

        (8)    “Code”
is the Internal Revenue Code of 1986, as amended.  

        (9)    “Common Stock”
is the Common Stock, par value $0.16-2/3 per share, of the Company. 

        (10)    “Company”
is Pentair, Inc., a Minnesota corporation.  

        (11)    “Company Stock”
is the Common Stock of the Company, or such other stock of the Company or its affiliates as meets the requirements of Code section
409(l). 

        (12)    “Compensation”
is all remuneration items paid to or on behalf of a Participant, for services rendered to a Participating Employer as an Employee,
listed or described in the left-hand column of Schedule 1, and not including any such items listed or described in the right-hand
column of Schedule 1. If a remuneration item is not listed or described in Schedule 1, the Plan Administrator shall determine
whether such item is included or excluded from Compensation by taking into account the nature of the item and its similarity to an
item which is so listed; provided, however, the Plan Administrator shall exercise such discretion with respect to similarly
situated Participants in a uniform and non-discriminatory manner, and in no event shall such discretion be exercised in a manner
which discriminates in favor of Participants as a group who are HCEs as compared to other Participants as a group. 

        (13)    “Current Market Value”
is, as to any asset of the Trust, the value on any day determined by the Plan Administrator which such value shall be 

	(i) 	  	if the asset is Common Stock or any other class of
capital stock of the Company or any other Trust assets which are publicly traded or quoted, either (a) the price then prevailing
on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934, or (b) if such asset
is not traded or quoted on such a national securities exchange, a price not less favorable to the Plan than the offering price for
such asset as established by the current bid and asked prices quoted by persons independent of the Company and of any party in
interest; 

	(ii) 	  	except as provided in (i) above, and as provided
under Code section 401(a)(28)(C) with respect to Company Stock which is not publicly traded, established by an independent
appraiser in accordance with generally accepted valuation principles on a consistent basis acceptable to the Plan Administrator.

        (14)    “Defined Benefit Plan”
is a tax-qualified (or which is intended to be so qualified) retirement plan described in Code section 414(j). 

        (15)    “Defined Contribution Plan”
is a tax-qualified (or which is intended to be so qualified) retirement plan described in Code section 414(i). 

        (16)    “Deposits”
are amounts contributed under the Plan by or at the direction of Participants pursuant to Sections 3.2(a) or 3.3(a), or both, but
not including Employer Contributions made pursuant to Article IV. 

2 

        (17)    “Employee”
is any individual who is in the employ of an Employer during such periods as the following conditions are met: 

	(i) 	  	the individual is employed by a Participating
Employer and such Employer pays Social Security taxes with respect to such individual; 

	(ii) 	  	if the individual is in a unit of employees covered
by a collective bargaining agreement, such collective bargaining agreement provides for the application of the Plan to the
employees in such unit; and 

	(iii) 	  	the individual’s employment is not in a group
which has been excluded from participation in the Plan, which individuals or groups of individuals as of the Plan’s effective
date are listed or otherwise described on Schedule 2; provided, however, the failure to list or otherwise describe an individual
or group of individuals on such Schedule shall not mean an individual described in this paragraph (iii) is an Employee for this
purpose. 

This term shall not include individuals who are not treated as Employees by a
Participating Employer for purposes of the Plan, even though they may be so treated or considered under applicable law, including
Code section 414(n), the Federal Insurance Contribution Act or the Fair Labor Standards Act (e.g., individuals whom the
Participating Employer treats as employees of a third party or as self-employed). In addition, individuals employed by an Employer
which becomes an Employer subsequent to the Plan’s effective date (e.g., by the acquisition of a previously unrelated
company) shall not be Employees until such time as they are so designated. 

        (18)    “Employee Common Stock Fund”
is an unsegregated fund, other than the ESOP Fund, to be invested in Common Stock, which pending such investment, may be invested
in short-term securities. Until further action of the Board after satisfaction of all applicable legal requirements, including
registration requirements, an Employee Common Stock Fund shall not be available for investment. 

        (19)    “Employer”
is the Company and each other corporation or unincorporated business which is a member of a controlled group of corporations, a
group of trades or businesses under common control or an affiliated service group (within the meaning of Code section 414(b), (c)
or (m)) which includes the Company. 

        (20)    “Employer Contributions”
are amounts contributed by Participating Employers as provided in Sections 3.2(e)(2) and 3.3(d)(2) and Article IV. 

        (21)    “Employer Discretionary Contributions”
are amounts contributed by Participating Employers pursuant to Section 4.2. 

        (22)    “Employer Matching Contributions”
are amounts contributed by Participating Employers pursuant to Section 4.1. 

        (23)    “ERISA”
is the Employee Retirement Income Security Act of 1974, as amended. 

        (24)    “ESOP Fund”
is a fund to be invested in Company Stock, acquired with the proceeds of an Exempt Loan or otherwise, and earnings thereon which
is intended to qualify as an employee stock ownership plan under Code section 4975(e)(7) and ERISA section 407(d)(6) of the stock
bonus type. The ESOP Fund shall be primarily invested in Company Stock. 

        (25)    “Exempt Loan”
is a loan or other extension of credit described in Code section 4975(d)(3) which meets the requirements of Treasury Regulation
§54.4975-7(b)(1)(iii). 

        (26)    “Fiscal Year”
is the Company’s annual accounting period (currently the period January 1 - December 31). 

        (27)    “Highly Compensated Employee” or “HCE”
is  

	(i) 	  	any Employee or former Employee who was at any time
during the Plan Year being tested or the immediately preceding Plan Year a five percent (5%) owner (as defined in
Addendum II), or 

	(ii) 	  	any Employee who, during the Plan Year immediately
preceding the Plan Year for which the 401(k) and 401(m) discrimination tests (described in Article III) are being applied,
received compensation from an Employer in excess of $85,000 (using the definition of Limitation Compensation contained in Addendum
I). 

The compensation level stated in the above subparagraph (ii) shall be
adjusted from time to time as provided for in Code section 414(q)(1). 

3 

        (28)    “Investment
Fund” is an unsegregated fund under the Trust established at the direction of the Named Fiduciary pursuant to Section 5.4
hereof and invested in securities, insurance contracts or other property of such type and general characteristics as the Named
Fiduciary shall determine. The term shall include the Employee Common Stock Fund if and once established, but not the ESOP Fund.

        (29)    “Investment
Manager” is any person, insurance company or corporation appointed by the Named Fiduciary to direct the investment and
reinvestment of all or any portion of the assets held by the Trustee under the Trust. 

        (30)    “Leased
Employee” is an individual who, pursuant to an agreement between a Participating Employer and a leasing organization, has
performed services under the primary direction or control of a Participating Employer on a substantially full time basis for a
period of at least one (1) year. An individual shall not be considered as described in the immediately preceding sentence if (i)
while rendering such service he or she is covered by a money purchase pension plan which provides (x) a nonintegrated employer
contribution rate of a least ten percent (10%) of compensation, as that term is defined in Code section 415(c)(3), but including
amounts contributed pursuant to a salary reduction agreement which are excludable from the individual’s gross income under
Code sections 125, 132(f)(4), 402(e)(3), 402(h)(i)(B) or 403(b), (y) immediate participation, and (z) full and immediate vesting;
and (ii) such individual and all other individuals described in the first sentence of this paragraph do not constitute more than
twenty percent (20%) of the combined nonhighly compensated work force of all Employers combined. 

        (31)    “Maximum
Deferred Amount” is the maximum amount or rate which may be designated by a Participant as Before-tax or After-tax
Deposits pursuant to Sections 3.2(c) and (d) and 3.3(b), respectively. 

        (32)    “Named
Fiduciary” is the Company with respect to its authority as Plan Administrator and with respect to its authority to
establish and maintain a funding policy for the Plan and appoint persons to hold, manage or control the funds held under the
Trust; and any committee provided for in the Plan to which the Company has delegated such authority (but only to the extent of
such delegation). 

        (33)    “Participant”
is an Employee who has validly elected to participate and who has made Deposits or Rollovers under the Plan, or has received or is
entitled to receive an allocation with respect to an Employer Discretionary Contribution or has received an allocation of a
Qualified Discretionary Contribution. An individual who has become a Participant shall continue as a Participant until all of his
or her Accounts have been distributed from the Plan. 

        (34)    “Participating
Employer” is any Employer designated as such by the Board which adopts the Plan by appropriate corporate action.

        (35)    “Performance
to Goal” is the level of attainment by a Participating Employer for a Fiscal Year of such operational goals or targets as
are established for such Participating Employer for purposes of determining the Employer Matching Contribution applicable with
respect to such Participating Employer. 

        (36)    “Plan”
is the Defined Contribution Plan continued hereby, but (except as necessary or appropriate depending on the context, e.g.,
definition of plan for purposes of Code section 414(l)) as described in this plan document effective January 1, 2001 and as
it may be thereafter amended. 

        (37)    “Plan
Administrator” is the Company, through its designated officers and agents, or through any committee as may be appointed
by the Company, to the extent one or more of the duties and powers related to Plan administration have been delegated to such a
committee. The Plan Administrator shall be empowered to direct other persons as to Plan administration and such directions shall
be followed to the extent they are consistent with powers and duties delegated to the Plan Administrator and not otherwise
contrary to the provisions of the Plan or ERISA. 

        (38)    “Plan
Year” is the calendar year. 

        (39)    “Prior
Plan” is the Defined Contribution Plan, and component parts thereof, continued hereby, but as described in the plan
documents in effect prior to January 1, 2001. When this term is modified by a date or by context refers or applies to a period
before January 1, 2001, it shall refer to the plan document as then in effect. 

        (40)    “Qualified
Domestic Relations Order” or “QDRO” is a “domestic relations order, within the meaning of ERISA
section 206(d)(3)(B)(ii), which the Plan Administrator has determined to be a “qualified domestic relations order,”
within the meaning of ERISA section 206(d)(3)(B)(i). 

        (41)    “Qualified
Discretionary Contributions” are amounts contributed by Participating Employers pursuant to Sections 3.2(e)(2) or
3.3(d)(2). 

        (42)    “Retirement”
is an individual’s termination of employment from an Employer (other than by reason of death or Total and Permanent
Disability) at a time which then entitles such individual to immediate commencement of early, normal or 

4 

late retirement benefits under a Defined Benefit Plan maintained by the
Company or another Employer (or, for an individual who does not participate under such a Defined Benefit Plan, such a termination
of employment for which, if he were a participant under the Pentair, Inc. Pension Plan, he would be eligible for such benefits
thereunder). 

        (43)    “Rollovers” are
amounts contributed under the Plan by or at the direction of an Employee pursuant to Section 3.8. 

        (44)    “Spouse” is
an individual, of a sex opposite to that of a Participant, whose marriage to a Participant is recognized under the laws of the
United States (or one of the United States) or any other generally recognized jurisdiction. This term shall also include a former
Spouse to the extent required under a QDRO. 

        (45)    “Suspense
Account” is a separate account under the ESOP Fund maintained by the Trustee to hold Company Stock acquired with the
proceeds of an Exempt Loan prior to its release pursuant to Section 4.6. 

        (46)    “Timely
Notice” is a notice in such form as prescribed by the Plan Administrator and filed or made at such places or through such
medium and at such reasonable times as the Plan Administrator shall prescribe. For purposes of Section 3.1, Timely Notice shall
not exceed thirty (30) days. 

        (47)    “Total
and Permanent Disability” is a bodily injury or disease which wholly disables a Participant and will permanently,
continuously and wholly prevent such Participant for life from engaging in his or her occupation or employment for wage or profit
with an Employer. 

        (48)    “Trust”
is the Retirement Savings and Stock Incentive Plan Trust as adopted effective January 1, 1998, and as thereafter amended.

        (49)    “Trustee”
is the person or entity appointed as such under the Trust. 

        (50)    “Valuation
Date” is any date on which the Current Market Value of the Trust, or any fund thereof, is determined. 

        Section 2.2    Provisions
Relating to Service.   (a)  General.  Sections 2.2 through 2.4 prescribe the rules
used to determine an Employee’s service taken into account under the Plan. In general, service is used in determining when an
Employee begins to participate in the Plan for purposes of being eligible to share in Employer Contributions, and whether the
Employee remains so eligible in future Plan Years. 

        (b)    Definitions.   Unless
the context clearly or necessarily indicates the contrary, when capitalized the following words and phrases shall have the
following meanings when used in this Article or other parts of the Plan. 

        (1)    “Date of Employment”
is the date an individual first completes an Hour of Service. 

        (2)    “Employment Year”
is the twelve (12) consecutive month period beginning on the Date of Employment. 

        (3)    “Hour of Service”
is each hour for which an individual is either paid or entitled to payment from the Employer: 

	(i) 	  	for the performance of duties as an employee;

	(ii) 	  	for reasons related to such employment but other
than for the performance of duties, such as vacation, illness, jury duty, military duty or leave of absence other than (a)
payments made or due under a plan maintained solely for the purpose of complying with worker’s compensation, unemployment
compensation, or disability insurance laws, or (b) payments made solely for reimbursement of medical or medically related
expenses; provided, however, no more than 501 Hours of Service shall be credited under this subparagraph for any single continuous
period during which an employee or former employee performs no duties; or 

	(iii)  	  	for which back pay, irrespective of mitigation of
damages, has been awarded to the employee or former employee, or has been agreed to by the Employer. 

        (4)    “Year of Credited Service”
is a Plan Year during which an individual completes at least 1,000 Hours of Service as an Employee. 

        (5)    “Year of Eligibility Service”
is an Employment Year during which an individual completes 1,000 Hours of Service. If an individual does not complete 1,000 Hours
of Service in his or her Employment Year, the measuring period in 

5 

which 1,000 Hours of Service must be performed shall shift to the Plan Year,
beginning with the first Plan Year that begins before or with the first anniversary of the individual’s Employment Year.

        Section 2.3    Determining
Hours of Service.   (a)  Employment Records and Hour Equivalency.  An individual
shall be credited with the Hours of Service as can be determined from the records of hours worked and for which payment is due.
For this purpose, the provisions at 29 C.F.R. section 2530.200b-2(b) and (c) are hereby incorporated by reference. To the extent
such records are not kept or available, however, an individual shall be credited with ten (10) Hours of Service for each day the
individual must be credited with at least one (1) Hour of Service pursuant to 29 C.F.R. section 2530.200b-2. 

        (b)    No
Duplication of Credit.   An individual shall not be entitled to more than one (1) Hour of Service credit for
any hour described in more than one subparagraph of Section 2.2(b)(3). 

        Section
2.4    Miscellaneous.   (a)  Limitation.  An Employee
shall not be credited with more than one (1) Year of Eligibility or Credited Service for any one computation period, regardless of
the number of Hours of Service completed (or other service credits given) during such period. 

        (b)    Employment
Status.   An Employee’s entitlement to credit for a Year of Eligibility or Credited Service shall be
determined without regard to whether he or she is employed by an Employer on any particular day of a computation period (e.g.,
last day of the Plan Year). An Employee shall not actually receive credit for a Year of Eligibility Service, however, until the
anniversary of the first day of the computation period which constitutes a Year of Eligibility Service. 

        (c)    Military
Service Act and Other Federal Laws.   Notwithstanding the other provisions of this Article, an Employee shall
receive service credit for periods relating to service in the Armed Forces of the United States to the extent and in the manner
prescribed under the Military Selective Service Act and the Uniformed Services Employment and Reemployment Rights Act of 1993, and
shall receive credit for other periods of absences as required by federal law (e.g., the Family Leave Act). Any service credits
provided to an Employee under such laws shall be in lieu of any service credits that would otherwise be provided under the other
parts of this Article. 

        (d)    Status
of Transferred and Leased Employees.   A Leased Employee shall not be eligible to participate in the Plan. In
the event such a person becomes eligible to participate herein, whether by a change in status or by express written action of a
Participating Employer, credit shall be given for the person’s service as a Leased Employee with any Employer toward
completion of the Plan’s eligibility requirements as required under the Code for the period such Leased Employee was not
eligible to participate. When determining such service credit for a Leased Employee, the provisions of Section 2.1(30) shall be
applied without regard to the phrase “on a substantially full time basis for a period of at least one (1) year.”
Likewise, employees of an Employer who do not meet the definition of Employee in Section 2.1(17), but who subsequently become
Employees, shall be given credit for their service as such an employee toward completion of the Plan’s eligibility
requirements. 

        Section
2.5    Construction.   (a)  General.  Wherever any words
are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would
so apply; and wherever any words are used herein in the singular or the plural, they shall be construed as though they were used
in the plural or the singular, as the case may be, in all cases where they would so apply. The words
“hereof,”“herein,” “hereunder,” and other similar compounds of the word “here” shall mean
and refer to this entire document and not to any particular Article or Section. Titles of Articles and Sections are for general
information only, and the Plan is not to be construed by reference thereto. 

        (b)    Applicable
Law.   The Plan is intended to qualify under Code section 401(a) and to include a cash or deferred arrangement
qualifying under Code section 401(k). The ESOP Fund is intended to constitute an employee stock ownership plan qualifying under
Code section 4975(e)(7) and ERISA section 407(d)(6) of the stock bonus type. The Plan shall be interpreted so as to comply with
the applicable requirements thereof, where such requirements are not clearly contrary to the express terms hereof. In all other
respects, the Plan shall be construed and its validity determined according to the substantive laws of the State of Minnesota, to
the extent such laws are not preempted by ERISA or other federal law. 

ARTICLE III

PARTICIPANT’S DEPOSITS AND ROLLOVERS 

        Section 3.1    Election
to Participate.   An Employee who has attained age eighteen (18) may elect upon Timely Notice to participate in
the Plan for purposes of directing that Deposits be made on such Employee’s behalf. Such election shall be effective as of
the beginning of the payroll period next following the date the Employee’s election is received by the Plan Administrator.

        Section 3.2    Amount
of Participant’s Before-tax Deposits.   (a)  Before-tax Deposits.  Subject to
the provisions of Section 3.2(c) and (d), each Participant may designate a rate of Before-tax Deposits at the time of election to
participate in the 

6 

Plan, which rate may be from one percent (1%) to fifteen percent (15%) of his
or her Compensation, expressed in whole percentages, or in such combination of whole and fractional percentages and subject to
such rounding conventions as the Plan Administrator prescribes. Such rate may be changed upon Timely Notice in accordance with
uniform and non-discriminatory rules prescribed by the Plan Administrator. Before-tax Deposits shall be made for the Participant
through payroll deductions from his or her Compensation. 

        (b)    Before-tax
Matched Deposits.   Once a Participant for whom Before-tax Deposits are being made is credited with a Year of
Eligibility Service, the lesser of (i) the Before-tax Deposits thereafter made on his or her behalf for that Plan Year and (ii)
Before-tax Deposits totaling four percent (4%) of his or her Compensation paid thereafter during that Plan Year shall be matched
to the extent provided under Article IV. For each Plan Year thereafter, the lesser of (i) the Before-tax Deposits made on the
Participant’s behalf for that Plan Year and (ii) Before-tax Deposits totaling four percent (4%) of the Participant’s
Compensation during that Plan Year shall be matched to the extent provided under Article IV. 

        (c)    Limits
on Before-tax Deposits.   Before-tax Deposits for any Participant for any Plan Year shall not exceed the lesser
of: 

	(i) 	  	ten thousand five hundred dollars ($10,500), as
adjusted for cost of living increases pursuant to Code section 402(g)(5); and 

	(ii) 	  	the Maximum Deferred Amount. 

        (d)    Maximum
Deferred Amount.   (1)  Establishing Amount.  The Plan Administrator shall, from
time to time, establish a Maximum Deferred Amount (which may be described as a percentage or rate of Compensation) respecting
Before-tax Deposits. Such Maximum Deferred Amount may vary during each payroll period and for each Participant. If a Participant
shall designate any amount or rate of Before-tax Deposits in excess of the applicable Maximum Deferred Amount, such designation
shall not be invalid, but shall be effective to designate a rate of Before-tax Deposits equal to the applicable Maximum Deferred
Amount. Without limiting the generality of the foregoing, the Plan Administrator may establish a maximum rate or rates of
Before-tax Deposits for Participants who are HCEs to ensure that, or to minimize the extent to which, the average rate (expressed
as a percentage of “compensation” as defined in Code section 414(s)) of such Deposits by HCEs for a Plan Year does not
exceed the rate which will permit the Plan to meet one of the 401(k) discrimination tests. 

        (2)   401(k)
Discrimination Tests.   As soon as practicable after the end of a Plan Year, the Plan Administrator shall
determine whether the average rate of Before-tax Deposits authorized by HCEs for such Plan Year satisfies one of the following
tests: 

	(i) 	  	a rate equal to 1.25 times the average rate of
Before-tax Deposits by all other eligible Employees for such Plan Year; or 

	(ii) 	  	a rate equal to the lesser of (A) the average rate
of Before-tax Deposits for all other eligible Employees for such Plan Year multiplied by 2.0, (B) the average rate of Before-tax
Deposits for all other eligible Employees plus two (2) percentage points, or (C) such other limit as may be prescribed by the
Secretary of the Treasury to prevent the multiple use of this alternative limitation. 

In applying such tests, Before-tax Deposits of all other eligible Employees
for a Plan Year shall be determined after the reduction, if any, described in Section 3.2(f). 

        It is the intent and purpose
of this Section 3.2(d) that the Plan Administrator shall have and exercise complete discretion in establishing the Maximum
Deferred Amount for any Participant for any Plan Year, to assure compliance with Code sections 401(a)(30), 401(k) and 415, and any
other applicable provisions of the Code. To the extent required under Treasury Regulations, the 401(k) discrimination tests shall
be separately applied to groups of Participants for which such tests are applied as if such Participants were covered under a
separate plan. 

        For purposes of calculating
the 401(k) discrimination tests, the maximum rate of Before-tax Deposits for a Participant who is an HCE shall be determined by
considering all cash or deferred arrangements maintained by an Employer in which such HCE is eligible to participate as a single
arrangement, to the extent such arrangements must be so aggregated pursuant to applicable Treasury Regulations. 

7 

        (e)    Treatment
of Excess Before-Tax Deposits to Satisfy Code section 401(k)
Tests.   (1)  General.  In the event that, despite the limitations imposed by
Section 3.2(c) and (d), the Before-tax Deposits for a Participant in any Plan Year exceed the limit on Before-tax Deposits for
such Participant necessary to satisfy the 401(k) discrimination tests for such year, then, except as described in Section
3.2(e)(2), the Plan Administrator, in its sole discretion, shall direct the Trustee to correct any such excess by applying one or
more of the methods listed below, and shall have the discretion to apply different procedures to different individuals and to
apply different procedures to the same individual. 

        (2)    Redetermination
of 401(k) Tests.   If neither of the 401(k) tests is satisfied, then, at the election of the Plan
Administrator, the average rate of Before-tax Deposits for eligible Employees, other than HCEs, shall be determined by taking into
account (as though they were Before-tax Deposits) all or some of the Qualified Discretionary Contributions or Qualified Matching
Contributions allocated to such Employees for the Plan Year for which the 401(k) tests are being applied. 

	(i)  	  	Qualified
Matching Contributions.   “Qualified Matching Contributions” are
Employer Matching Contributions treated as Before-tax Deposits for purposes of applying
the 401(k) tests described in Section 3.2(d)(2) and not taken into account for purposes
of applying the 401(m) tests described in Section 3.3(b)(2). To so count Qualified
Matching Contributions as Before-tax Deposits, the Employer Matching Contributions must
be allocated to Accounts for the Plan Year being tested and must be paid over to the
Trust within twelve (12) months after the end of such Plan Year. No Qualified Matching
Contributions may be counted as Before-tax Deposits unless one of the 401(m) tests,
described in Section 3.3(b)(2), for that Plan Year is satisfied by first taking Employer
Matching Contributions into account for purposes of the applicable 401(m) test. If one of
the 401(m) tests is so satisfied, then the amount of Employer Matching Contributions
taken into account as Qualified Matching Contributions shall be no more than the maximum
amount by which Employer Matching Contributions for Eligible Employees, other than HCEs,
can be reduced while still satisfying one of the 401(m) tests, and by not taking
Qualified Matching Contributions into account in determining Aggregate Contributions.  

	(ii) 		Qualified
Discretionary Contribution.   Within twelve (12) months after the end
of the Plan Year for which neither of the 401(k) discrimination tests has been met, the
Board may authorize a Qualified Discretionary Contribution on behalf of eligible
Participants and each Participating Employer (with respect to its Employees who are
eligible Participants) shall pay such contribution to the Trustee. If such a contribution
is made, the 401(k) discrimination tests shall be recomputed by taking such contributions
into account (as though Before-tax Deposits) in determining the average rates described
in Section 3.2(d). The Participants eligible for a Qualified Discretionary Contribution
shall be those Employees (i) who were eligible to elect Before-tax Deposits by the end of
the Plan Year for which neither of the 401(k) discrimination tests were met and (ii) who
were not HCEs for such Plan Year. Any such contribution shall be allocated on behalf of
eligible Participants in the same proportion that each such Participant’s
Compensation for the Plan Year for which the Qualified Discretionary Contribution is
being made bears to the total Compensation of all such eligible Participants. Such
contribution shall be credited to an eligible Participant’s Qualified Discretionary
Account.  

        (3)    Recharacterization.   Within
two and one-half (2-1/2) months after the end of the Plan Year for which neither of the 401(k) discrimination tests are met, the
excess Before-tax Deposits of the HCEs for the Plan Year being tested may be recharacterized as After-tax Deposits. The Before-tax
Deposits, to the extent recharacterized, shall be treated as After-tax Deposits for purposes of meeting the discrimination tests
applied to After-tax Deposits described in Section 3.3(b). 

        Excess Before-tax Deposits
may be recharacterized for an HCE only to the extent such recharacterized amounts, together with the After-tax Deposits authorized
by such HCE, do not exceed the limits on After-tax Deposits contained in Section 3.3. Any such recharacterization shall be deemed
to have occurred no earlier than the date all affected HCEs have been informed in writing of the amount to be recharacterized and
the fact that any amounts recharacterized shall be taxable to the affected Participant for the year in which such amounts would
otherwise have been received as income, but for the fact such amounts were treated as Before-tax Deposits when contributed to the
Plan. Any excess Before-tax Deposits recharacterized as After-tax Deposits shall remain subject to such distribution provisions as
are generally applicable to Before-tax Deposits. 

        (4)    Distribution.   After
the end of the Plan Year for which neither of the 401(k) discrimination tests is satisfied and before the end of the following
Plan Year, the excess Before-tax Deposits of the HCEs for the Plan Year being tested (and income or loss allocable thereto) may be
distributed. Such excess shall be the amount by which an HCE’s Before-tax Deposits for the Plan Year exceed the amount of
Before-tax Deposits which could have been made for such Participant and still satisfy one of the 401(k) discrimination tests. Such
excess shall be determined on a per Participant basis, starting with the Participant or Participants with the highest dollar
amount of Before-tax Deposits. Such distributions shall be made, to the extent possible, 

8 

within two and one-half (2-1/2) months after the end of the Plan Year, but in
any event, not later than the last day of the subsequent Plan Year. Such distributions may be made notwithstanding any Plan
provision to the contrary. 

        (5)    Determining
Excess Before-tax Deposits.   The amount of excess Before-tax Deposits to be distributed or recharacterized
pursuant to the provisions of this Section 3.2(e) for a Plan Year shall be first reduced by any excess Before-tax Deposits
previously distributed to the affected Participant for his or her taxable year ending with or within the Plan Year for which such
correction is being made. 

        (f)    Treatment
of 402(g)(1) Excess.   If and to the extent for a calendar year a Participant’s Before-tax Deposits plus
elective contributions (as defined in Code section 401(k)) made under other Defined Contribution Plans maintained by an Employer
exceeds the Code section 402(g)(1) limit for such year, then such excess shall be distributed to the individual concerned from the
Plan (to the extent of Before-tax Deposits for such year) within the periods allowed under Treasury Regulation
§1.402(g)-1(e)(2) or (3) and such Participant shall be deemed to have notified the Plan Administrator of such excess and
directed the Plan Administrator to take such action. Except as permitted under such regulation, such distribution shall include
any income or loss (for the Plan Year for which such excess was contributed) allocable to such excess. Such distributions may be
made notwithstanding any Plan provision to the contrary. 

        Section 3.3    Amount
of Participant’s After-tax Deposits.   (a)  After-tax Deposits.  Subject to the
provisions of Section 3.3(b), each Participant may designate a rate of After-tax Deposits at the time of election to participate
in the Plan, which rate may be from one percent (1%) to ten percent (10%) of his or her Compensation, expressed in whole
percentages or in such combination of whole and fractional percentages and subject to such rounding conventions as the Plan
Administrator prescribes. Such rate may be changed upon Timely Notice in accordance with uniform and non-discriminatory rules
prescribed by the Plan Administrator. Such After-tax Deposits shall be made for the Participant through payroll deductions from
his or her Compensation. 

        (b)    Maximum
Deferred Amount.   (1)  Establishing Amount.  The Plan Administrator shall, from
time to time, establish a Maximum Deferred Amount (which may be described as a percentage or rate of Compensation) respecting
After-tax Deposits. Such Maximum Deferred Amount may vary during each payroll period and for each Participant. If a Participant
shall designate any amount or rate of After-tax Deposits in excess of the applicable Maximum Deferred Amount, such designation
shall not be invalid, but shall be effective to designate a rate of After-tax Deposits equal to the applicable Maximum Deferred
Amount. Without limiting the generality of the foregoing, the Plan Administrator may establish a maximum rate or rates of
After-tax Deposits for a Participant who is an HCE to ensure that, or to minimize the extent to which, the average rate (expressed
as a percentage of “compensation” as defined in Code section 414(s)) of such After-tax Deposits by HCEs for a Plan Year
does not exceed the rate which will permit the Plan to meet one of the 401(m) discrimination tests. 

        (2)    401(m)
Discrimination Tests.   As soon as practicable after the end of a Plan Year, the Plan Administrator shall
determine whether the average rate of After-tax Deposits authorized by HCEs for such Plan Year, when combined with Employer
Matching Contributions made on behalf of HCEs for such Plan Year (the “Aggregate Contributions”) satisfies one of the
following tests: 

	(i) 	  	a
rate equal to 1.25 times the average rate of Aggregate Contributions by all other
eligible Employees for such Plan Year: or  

	(ii) 	  	a
rate equal to the lesser of (A) the average rate of Aggregate Contributions for all other
eligible Employees for such Plan Year multiplied by 2.0, (B) the average rate of
Aggregate Contributions for all other eligible Employees plus two (2) percentage points,
or (C) such other limit as may be prescribed by the Secretary of the Treasury to prevent
the multiple use of this alternative limitation.  

        It is the intent and purpose
of this Section 3.3(b) that the Plan Administrator shall have and exercise complete discretion in establishing the Maximum
Deferred Amount for any Participant for any Plan Year, to assure compliance with Code sections 401(m) and 415, and any other
applicable provisions of the Code. To the extent required under Treasury Regulations, the 401(m) tests shall be separately applied
to groups of Participants for which such tests are applied as if such Participants were covered under a separate plan. 

        For purposes of calculating
the 401(m) discrimination tests, the maximum rate of Aggregate Contributions for a Participant who is an HCE shall be determined
by considering all plans subject to Code section 401(m) maintained by an 

9 

Employer in which such HCE is eligible to participate as a single plan, to
the extent such arrangements must be so aggregated pursuant to applicable Treasury Regulations. 

        (c)    Redetermination
of Aggregate Contributions.   (1)  General.  If neither of the 401(m) discrimination
tests are satisfied, the Plan Administrator shall determine whether either of such tests could be met if some or all of the
Before-tax Deposits allocated to HCEs or non-HCEs, or both (for the Plan Year for which such tests are being applied) are taken
into account as though such Before-tax Deposits were After-tax Deposits, and then determining the extent to which excess Aggregate
Contributions may have been made for the Plan Year being tested. 

        (2)    Counting
Before-tax Deposits.   To so count Before-tax Deposits for purposes of Section 3.3(c)(1), such Before-tax
Deposits must be allocated to Accounts for the Plan Year being tested and must be paid over to the Trust within twelve (12) months
after the end of such Plan Year. Further, no Before-tax Deposits may be so taken into account unless one of the 401(k)
discrimination tests has been met with respect to such Deposits. If one of the 401(k) discrimination tests is satisfied, then to
the extent required under Treasury Regulation §1.401(m)-1(b)(5) the amount of Before-tax Deposits taken into account
hereunder shall be no more than the maximum amount of reduction that could be made to the deferral rates for non-HCEs while still
satisfying one of such tests after the adjustment is made. 

        (d)    Treatment
of Excess.   (1)  General.  In the event that, despite the limitations imposed by
Section 3.3(b) and the recharacterization described in Section 3.3(c), the Aggregate Contributions for a Participant in a Plan
Year exceed the limit on Aggregate Contributions for such Participant necessary to satisfy the 401(m) discrimination tests for
such year, then, except as described in Section 3.3(d)(2), the Plan Administrator shall direct the Trustee to correct any such
excess by applying one or more of the methods listed below, and shall have the discretion to apply different procedures to correct
excess Aggregate Contributions and shall have the discretion to apply different procedures to different individuals and to apply
different procedures to the same individual. 

        (2)    Qualified
Discretionary Contribution.   Within twelve (12) months after the end of the Plan Year for which neither of the
401(m) discrimination tests has been met, the Board may authorize a Qualified Discretionary Contribution on behalf of eligible
Participants and each Participating Employer (with respect to its Employees who are eligible Participants) shall pay such
contribution to the Trustee. If such a contribution is made, less any portion of such contribution applied as described in Section
3.2(e)(2), the 401(m) discrimination tests shall be recomputed by taking such contributions into account (as though Aggregate
Contributions) in determining the average rates described in Section 3.3(b). The Participants eligible for this Qualified
Discretionary Contribution shall be those Employees (i) who were eligible to elect After-tax Deposits or to receive an allocation
of Employer Matching Contributions by the end of the Plan Year for which neither of the 401(m) discrimination tests were met and
(ii) who were not HCEs for such Plan Year. Any such contribution shall be allocated on behalf of eligible Participants in the same
proportion that each such Participant’s Compensation for the Plan Year for which the Qualified Discretionary Contribution is
being made bears to the total Compensation of all eligible Participants. Such contribution shall be credited to an eligible
Participant’s Qualified Discretionary Account. 

        (3)    Distribution.   After
the end of the Plan Year for which neither of the 401(m) discrimination tests are satisfied and before the end of the following
Plan Year, the excess Aggregate Contributions of the HCEs for the Plan Year being tested (and income or loss allocable thereto)
may be distributed. Such excess shall be equal to the amount by which an HCE’s Aggregate Contributions for the Plan Year
exceed the amount of Aggregate Contributions which could have been made for such Participant and still satisfy one of the 401(m)
discrimination tests. Such excess shall be determined on a per Participant basis, starting with the Participant or Participants
with the highest dollar amount of Aggregate Contributions. Such distributions shall be made, to the extent possible, within two
and one-half (2-1/2) months after the end of the Plan Year, but in any event, not later than the last day of the subsequent Plan
Year. Such distribution may be made notwithstanding any Plan provision to the contrary. 

        Section 3.4    General
Testing Provisions.   (a)  Rules Applicable to HCEs.  The Plan Administrator, in its
sole discretion, may determine who is an HCE and how the 401(k) and 401(m) discrimination tests shall be satisfied by using any
special rules or procedures that may be allowed under applicable Treasury Regulations or other guidance as may be issued by the
Internal Revenue Service. 

        (b)    Multiple
Use Test.   If there is a multiple use of the alternative limitation, then the average rate of Aggregate
Contributions of the HCEs included for testing purposes shall be reduced and the excess Aggregate Contributions, together with any
income allocable thereto, shall be distributed as provided in Section 3.3(d)(3), and any reductions shall be limited to the amount
necessary to satisfy the alternative limitation test. If both of the 401(k) and 401(m) discrimination tests are satisfied for a 

10 

Plan Year, then none of the Before-tax and Aggregate Contributions (and
income allocable thereto) for such year shall be distributed to an HCE, but only if (i) both such tests were satisfied using the
tests shown in Section 3.2(d)(2)(i) and 3.3(b)(2)(i), (ii) no HCE is included in the groups being tested for both the 401(k) and
401(m) discrimination tests, or (iii) the alternative limitation test of Treasury Regulation §1.401(m)-2 is satisfied.

        Section 3.5    Allocation
and Reallocation of Participants Deposits.   (a)  Allocation.  On Timely Notice a
Participant shall elect to allocate all of the Deposits to be made during a Plan Year to one or more of the Investment Funds, in
accordance with rules of uniform application prescribed by the Plan Administrator, provided, however, that no Deposits shall be
allocated to the ESOP Fund. An election under this Section 3.5(a) shall remain in effect for a Plan Year and successive Plan Years
unless changed on Timely Notice. On Timely Notice a Participant may elect to change the mix of his or her Deposits. 

        In the event a Participant
fails to direct the investment of Deposits or fails to replace any directions which may have been suspended or revoked, the
Participant shall be deemed to have elected to have one hundred percent (100%) of such Deposits allocated to an Investment Fund
designated by the Plan Administrator for such purpose. 

        (b)    Reallocation.   In
accordance with rules of uniform application prescribed by the Plan Administrator, a Participant may on Timely Notice elect to
reallocate, as of any business day, that portion of his or her Accounts attributable to Deposits, including the net increase or
decrease in value attributable thereto; provided, however, that no Deposits may be reallocated to the ESOP Fund. 

        (c)    Plan
Administrator Discretion.   Notwithstanding the foregoing, if it determines that any reallocation of funds held
in the Employee Common Stock Fund might violate applicable securities laws or is for any other reason impracticable or contrary to
the provisions of ERISA section 404(c), the Plan Administrator may, in its sole discretion, decline to implement a
Participant’s investment directions. 

        Section 3.6    Suspension
of a Participant’s Deposits.   (a)  Automatic Suspension.  A Participant’s
Deposits shall be suspended commencing with and continuing throughout any period during which such Participant fails to qualify as
an Employee, and as provided in Section 8.2(d) in the case of certain restricted withdrawals. Participants will not be permitted
to make up suspended Deposits. Employer Contributions shall be made with respect to any Before-tax Deposits made by a Participant
prior to a suspension of Deposits, so long as the Participant is otherwise entitled to share in such contributions for the Plan
Year. A Participant on an authorized leave of absence without pay fails to qualify as an Employee for purposes of this Section.

        (b)    Resumption.   A
Participant may resume making Deposits on Timely Notice as of the beginning of any pay period coincident with or next following
resumption of Employee status, or in the case of a suspension provided for in Section 8.2(d), any pay period beginning twelve (12)
months after the suspension. 

        Section 3.7    Payment
of Deposits to Trustee.   Each Participating Employer shall remit to the Trustee as soon as practicable the
amounts withheld from the Compensation of its Employees as Deposits under the Plan and in no event shall such withholding be so
remitted later than the fifteenth (15th) business day of the calendar month immediately following the calendar month in which it
was withheld. 

        Section 3.8    Rollovers.   (a)  General.  An
Employee shall be entitled to rollover or transfer directly to the Trust a qualifying distribution from another tax-qualified
Defined Contribution Plan or Defined Benefit Plan. No such Rollover shall be accepted unless it is paid over in cash or check to
the Trustee and, for Rollovers other than direct transfers, within sixty (60) days after it is received by the individual. No
amount shall be accepted for Rollover unless the individual certifies in writing to the Plan Administrator that, to the best
knowledge of that individual, (i) the plan from which the monies were received was a tax-qualified retirement plan at the time of
the distribution, and (ii) the amount constitutes an eligible rollover distribution from such other plan within the meaning of
Code section 402(f)(2)(A). Such amounts shall be subject to allocation and reallocation using the same or a similar process as
Deposits are so allocated or reallocated as described in Section 3.5. 

        (b)    Transfers
Due to Diversification.   The RSIP Trust shall accept as a transfer from the trustee of the Federal-Hoffman,
Inc. Employee Stock Ownership Plan (the “F-H ESOP”) cash resulting from the election by a qualified participant to
diversify the investment of his or her stock account under applicable provisions of the F-H ESOP. Such amounts shall be credited
to a Participant’s rollover Account and shall be allocated or reallocated among the available Investment Funds consistent
with the provisions of Section 3.4. The investment results related thereto shall be allocated to each Participant’s rollover
Account 

11 

pursuant to the provisions of Sections 6.1 and 6.2. All amounts transferred
to a Participant’s Account under this Section 3.7(b) shall be distributed to the Participant at the time and in the manner
described in Section 7.2. Such amounts shall be available for purposes of granting restricted withdrawals under Section 8.2 and
Participant loans under Section 8.4. 

        Section 3.9    ESOP
Diversification Election.   Each Participant who has attained age fifty-five (55) and who is considered to have
completed at least ten (10) years of participation under the ESOP Fund shall be permitted to direct the Trustee as to the
investment of twenty-five percent (25%) of the value of the Participant’s ESOP Account (to the extent not previously
diversified in accordance with this Section). This diversification election shall continue for six (6) Plan Years, beginning with
the Plan Year in which the Participant has attained age fifty-five (55) or completed ten (10) years of participation under the
Plan, whichever shall last occur (the “qualified election period”). A Participant’s election shall (i) be
memorialized, (ii) be made within ninety (90) days after the last day of each Plan Year during the Participant’s qualified
election period and (iii) be effective no later than one hundred eighty (180) days after the close of the Plan Year to which the
direction applies. Within ninety (90) days after the close of the last Plan Year in the Participant’s qualified election
period, a qualified Participant shall be permitted to direct the investment of an amount not to exceed fifty percent (50%) of the
value of such ESOP Account balance (to the extent not previously diversified in accordance with this Section). The Plan shall
distribute that portion of the Participant’s ESOP Account subject to the election within ninety (90) days after the last day
of the period during which the election can be made or, in lieu of such a distribution, the Plan Administrator may adopt a
procedure that is uniformly applicable to all qualified Participants and under which each qualified Participant may direct the
Plan to transfer that portion of the Participant’s ESOP Account subject to the election to Investment Funds available under
the Plan or another tax-qualified retirement plan maintained by the Company which accepts such transfers and permits Participants
to direct investments among at least three (3) investment funds (exclusive of any Company Stock funds). Any such intra-plan or
plan-to-plan transfer shall be made no later than ninety (90) days after the last day of the period during which the
Participant’s election can be made. The portion of a Participant’s ESOP Account that is subject to such elections shall
be determined in accordance with Treasury Regulations and other guidance under Code section 401(a)(28). 

        Section 3.10    Compensation
Cap.   For purposes of Article III and Article IV, as well as any other Plan provision for which Compensation
is required to be limited by reason of Code section 401(a)(17), the annual Compensation of each Employee taken into account under
the Plan shall not exceed $170,000, as adjusted for increases in the cost of living in accordance with Code section 401(a)(17)(B).
The cost of living adjustment in effect for a calendar year applies to any period, not exceeding twelve (12) months, over which
Compensation is determined (“determination period”) beginning in such calendar year. Except as otherwise provided in
Treasury Regulations §1.401(a)(17)-1(b)(3)(iii)(B) with respect to Deposits or Employer Matching Contributions, if a
determination period consists of fewer than twelve (12) months, the annual compensation limit shall be multiplied by a fraction,
the numerator of which is the number of months in the determination period, and the denominator of which is twelve (12).

        If Compensation for any prior
determination period is taken into account in determining an Employee’s Deposits for the current Plan Year, the Compensation
for that prior determination period is subject to the annual compensation limit in effect for that prior determination period.

ARTICLE IV

EMPLOYER CONTRIBUTIONS 

        Section
4.1    Employer Matching Contributions.   (a)  Amount of Employer
Matching Contributions.   (1)  General.  Subject to the provisions of
Section 4.1(a)(2) and (3), a Participating Employer, with respect to its Employees described in Section 4.1(b), shall
make a contribution for a Plan Year in cash equal to the percentage match shown in the following schedule. Such amount shall be
paid to the Trustee as soon as practicable after the end of the Plan Year. 

12 

SCHEDULE OF MATCHING PERCENTAGES  

	Performance to Goal Criteria: If the operating income of a Participating Employer for the Fiscal Year which ends with or within the Plan Year is the following percentage of the operating income for the preceding Fiscal Year: 		The Participating Employer will contribute cash equal to the following percentage of an eligible Participant's Before-tax Matched Deposits made in such year: 
	

	130% or above	 	90.0%	 
	 
	126% through 129.9%	 	84.0%	 
	 
	122% through 125.9%	 	78.0%	 
	 
	118% through 121.9%	 	72.0%	 
	 
	114% through 117.9%	 	66.0%	 
	 
	110% through 113.9%	 	60.0%	 
	 
	106% through 109.9%	 	54.0%	 
	 
	102% through 105.9%	 	48.0%	 
	 
	98% through 101.9%	 	42.0%	 
	 
	94% through 97.9%	 	36.0%	 
	 
	less than 94%	 	30.0%	 

In applying such schedule, the Performance to Goal criteria shall be
separately applied to each Participating Employer. 

        (2)    Special
Cases.   Each Participating Employer may, with the consent of the Plan Administrator, establish a percentage or
other match rate and the criterion therefor to be contributed on behalf of its Employees for a Plan Year, other than the
percentage match determined by application of the immediately preceding Schedule of Matching Percentages, to take into account an
extraordinary or unusual event specific to such Employer (e.g., becoming an Employer during a Plan Year due to an acquisition;
ceasing to be an Employer during a Plan Year due to a divestiture). 

        (3)    Transfers.   An
eligible Participant’s matching percentage or rate shall be determined by reference to the Performance to Goal attainment, or
other match criterion established pursuant to paragraph (2) immediately preceding, of the Participating Employer with which such
individual is employed on the last day of the Plan Year or, if earlier, the date such individual terminated employment with such
Employer or the Employer ceased to be a Participating Employer. With respect to a Participant who is employed with more than one
(1) Participating Employer during a Plan Year, however, such individual’s matching percentage shall be determined by
aggregating the total Compensation paid to such Participant and the total Before-tax Deposits authorized during the relevant Plan
Year and prorating both between and among the Participating Employers by which the Participant was employed based on the number of
days during the relevant Plan Year such individual was employed by each Participating Employer. 

        (b)    Eligibility
for Employer Matching Contributions.   The Participants eligible to share in Employer Matching Contributions
for a Plan Year shall be all Participants who made Before-tax Matched Deposits during the year, except those who did not complete
a Year of Credited Service during such year. Notwithstanding the foregoing, a Participant whose separation from service occurs
during the Plan Year on account of Retirement, Total and Permanent Disability, or death, or on account of the elimination of the
Participant’s job (in connection with the sale or the permanent closing of the plant or facility or similar event) as
determined by the Plan Administrator (pursuant to uniform and nondiscriminatory standards), shall be eligible to share in Employer
Matching Contributions for such year without regard to the requirement that such Participant complete a Year of Credited Service
in that year. 

        (c)    Contribution
Limitations.   Notwithstanding Section 4.1(a), the average rate (expressed as a percentage of
“compensation” as defined in Code section 414(s)) of Employer Matching Contributions, plus the average rate of After-tax
Deposits for a Plan Year, of Employees who are HCEs for such Plan Year shall not exceed the rate necessary to satisfy the 401(m)
discrimination tests described in Section 3.3(b), subject to such other methods as described in Section 3.3 which can be used
to satisfy such tests. 

        The Plan Administrator shall
have and exercise complete discretion in establishing the maximum rate of Employer Matching Contributions for any Participant for
any Plan Year, to assure compliance with the limitations imposed by Code 

13 

sections 401(m) and 415 and other applicable provisions of the Code.
Accordingly, no Employer Matching Contribution shall be made or allocated to the Account of any Participant if such contribution
would cause such limitations to be exceeded. 

        Section 4.2    Employer
Discretionary Contributions.   (a)  General.  Employer Discretionary Contributions
equal to the amount specified in Section 4.2(b) shall be made by the Participating Employers, on behalf of their eligible
Participants, in cash or in Company Stock with an equivalent Current Market Value as of the date contributed. 

        (b)    Amount
of Contributions.   Each Participating Employer shall contribute such amount as the Board may establish. Until
further action of the Board, the amount shall be equal to one and one-half percent (1.5%) of each eligible Participant’s
Compensation paid by the Participating Employer for a Plan Year. Such amount shall be paid to the Trustee as soon as practicable
after the end of the Plan Year. 

        (c)    Participants
Eligible for Contributions.   Participants eligible for Employer Discretionary Contributions shall be those who
(x) have completed a Year of Eligibility Service by the last day of the Plan Year and (y) (i) have completed a Year of Credited
Service during such Plan Year or (ii) whose separation from service occurred during such Plan Year due to Retirement, death, Total
and Permanent Disability or on account of elimination of the Participant’s job in connection with the sale or permanent
closing of a plant or facility or similar event, as determined by the Plan Administrator pursuant to uniform and
non-discriminatory standards. 

        Section 4.3    Allocation
and Reallocation of Employer Contributions.   Subject to Section 5, any Employer Contributions for the Plan
Year shall be allocated as follows: 

        (a)    Employer
Matching Contributions.   Employer Matching Contributions shall be allocated to a Participant’s Employer
Matching Account subject to allocation and reallocation using the same or similar process as Deposits are so allocated or
reallocated and as described in Section 3.5. 

        (b)    Employer
Discretionary Contributions.   As of the last day of the Plan Year and except as otherwise provided in the
immediately succeeding paragraph, Employer Discretionary Contributions shall be allocated to and among the ESOP Fund Accounts of
eligible Participants in the ratio of the value of Employer Discretionary Contributions made for each such Participant to the
value of the total Employer Discretionary Contributions made to all Participants eligible to share in the allocation for the Plan
Year. 

        As of the last day of the
Plan Year, and except as otherwise described in the immediately preceding paragraph, the Company’s Vice President of Human
Resources may, but is not required to, direct in writing that some or all of the Employer Discretionary Contribution for such year
be allocated to a Participant’s Employer Discretionary Accounts in lieu of the ESOP Fund Accounts, if such action (in the
discretion of such Vice President) is deemed appropriate due to compliance with the annual discrimination testing of RSIP required
by the Code or otherwise appropriate. To the extent all or any portion of an Employer Discretionary Contribution is allocated to
Employer Discretionary Accounts outside of the ESOP Fund Accounts, such amounts shall be subject to allocation and reallocation
using the same or similar process as Deposits are so allocated or reallocated and as described in Section 3.5. All amounts
allocated to such Employer Discretionary Accounts shall be subject to the same withdrawal and distribution rules as apply to
amounts allocated to Employer Matching Accounts. 

        (c)    Qualified
Discretionary Contributions.   Qualified Discretionary Contributions shall be allocated as provided in Sections
3.2(e)(2) or 3.3(d)(2), as applicable, and shall be subject to allocation and reallocation using the same or similar process as
Deposits are so allocated or reallocated and as described in Section 3.5. 

        (d)    Qualified
Matching Contributions.   Qualified Matching Contributions shall be subject to allocation and reallocation
using the same or similar process as Deposits are so allocated or reallocated and as described in Section 3.5. 

        Section 4.4    Funding
Policy.   To the extent the funding policy of the Plan is not expressly set forth herein, the Named Fiduciary
shall establish such funding policy, which may include the establishment of goals and objectives for the Trustee and Investment
Managers in their management of assets of the Trust, and shall communicate such policy to the parties responsible for its
implementation. 

        Section 4.5    Maximum
Annual Additions.   Notwithstanding anything in the Plan to the contrary, a Participant’s Deposits and
Employer Contributions for a Plan Year shall be limited to the extent required under Code section 415 and as more fully described
in Addendum I to the Plan. 

        Section 4.6    Exempt
Loan and Suspense Account.   (a)  General.  To the extent the Plan has acquired
shares of Company Stock with the proceeds of an Exempt Loan and the Exempt Loan remains outstanding, such shares shall be held in
a Suspense Account pending their release and allocation to the ESOP Fund for the Accounts of Participants, as principal and
interest payments are made under the Exempt Loan. 

14 

        (b)    Repayment
of Principal and Interest.   Repayment of principal and payment of interest under any such Exempt Loan may be
made from one or more of the following sources, or such other sources as the Board may determine: 

	(i) 	  	cash
dividends on Company Stock acquired with the proceeds of an Exempt Loan and allocated to
Participants’ Accounts, plus earnings on such dividends;  

	(ii) 	  	cash
dividends on Company Stock in the Suspense Account and earnings thereon; and  

	(iii) 	  	Employer
Discretionary Contributions and earnings thereon.  

        (c)    Number
of Shares Released.   The number of shares of Company Stock to be released from the Suspense Account for each
Plan Year for the duration of an Exempt Loan shall be determined in accordance with Treasury Regulations §54.4975-7(b)(8).

        (d)    Allocation
of Shares Released.   Shares of Company Stock that are released from the Suspense Account for each year shall
be allocated, as of the last day of the Plan Year, to the ESOP Fund for the Participants’ Accounts as follows: 

	(i) 	  	shares
released by cash dividends paid in that Plan Year and earnings thereon shall be allocated
to the Accounts of Participants who would have received an allocation of such dividend,
pro rata to the amount of the Company Stock in each such Participant’s Account on
which such dividend was paid, and each such allocation to a Participant’s Account
shall consist of shares having a Current Market Value (as of the date of payment of the
cash dividend) equal to the amount of the dividend the Participant would have received;
provided that if shares of Company Stock released from the Suspense Account for a Plan
Year do not have a Current Market Value sufficient to satisfy the foregoing requirements,
amounts identified in Section 4.6(b)(ii) and (iii) shall be applied to satisfy such
requirements;  

	(ii) 	  	shares
released by cash dividends as described in Section 4.6(b)(ii) and earnings thereon shall
be allocated in accordance with the provisions of Section 4.6(d)(i) and then in
accordance with the provisions of Section 4.3(b);  

	(iii) 	  	shares
released by Employer Discretionary Contributions described in Section 4.6(b)(iii) and
earnings thereon shall be allocated in accordance with the provisions of Section
4.6(d)(i) above and then as Employer Discretionary Contributions under Section 4.3(b).  

        (e)    Special
Circumstances.   In the event of a sale or other disposition of Company Stock allocated to the Suspense
Account, the Trustee shall apply the proceeds of such sale or disposition to the repayment of the Exempt Loan and the excess
proceeds shall be allocated to Participants’ Accounts under the ESOP Fund pro rata in relation to the balance in each
Participant’s Account under the ESOP Fund. The foregoing shall not apply to a sale or disposition of Company Stock exchanged
for other stock in a transaction described in Code section 402(j), provided there is a successor employer which, with the consent
of the Company, agrees to adopt and continue this Plan. 

ARTICLE V

TRUSTEE AND TRUST AGREEMENT 

        Section
5.1    Appointment.   (a)  General.  The Company shall
establish and continue a Trust agreement with the persons or corporations selected by the Board to act as Trustee. The Trustee
shall hold, manage, administer and invest the assets of the Trust, reinvest any income, and make distributions in accordance with
the provisions of the Trust agreement. The Trust agreement shall be in such form and contain such provisions as may be necessary
and appropriate to effectuate the purposes of the Plan and to qualify the Plan and Trust under the Code. 

        (b)    Removal
and Resignation.   Pursuant to the notice requirements and other procedures contained in the Trust agreement,
and in accordance with the Trust agreement, the Board may, at any time and from time to time, remove a Trustee or any successor
Trustee and any such Trustee or any successor Trustee may resign. The Board shall, upon removal or resignation of a Trustee,
appoint a successor Trustee. In any such case, the Board shall give due consideration to the reports and recommendations of the
Named Fiduciary. 

        Section
5.2    Fees and Expenses.   The Trustee’s fee, and other fees and expenses,
shall be paid by the Trustee out of the Trust, unless the Company elects to pay them. Brokerage fees and other direct investment
costs, if paid out of the Trust, shall be charged to the fund of the Trust to which such fees and costs are attributable.

        Section
5.3    Exclusive Benefit.   All Deposits, Rollovers and Employer Contributions made
with respect to Participants under the Plan and all property and funds of the Trust allocable to the Plan, including income from
investments and from all other sources, shall be managed solely in the interest of Participants and their Beneficiaries and for
the exclusive purpose of providing benefits to Participants and Beneficiaries, and defraying the reasonable expenses of
administering the Plan. 

15 

        Notwithstanding the
foregoing, a Participating Employer shall not be required to make or authorize any Employer Contributions for a year that are not
deductible under Code section 404 by a Participating Employer for such year, and all Employer Contributions under the Plan are
conditioned on such deductibility. If a Participating Employer makes contributions for which such deduction is disallowed, then to
the extent of such disallowance, such contributions may be returned to such Participating Employer within one (1) year after the
date such contributions were finally determined not to be so deductible; and further provided that any Employer Contributions made
by a Participating Employer may be returned to such Participating Employer such contribution was made by mistake of fact and such
contribution is returned within one (1) year after it was made. 

        Section
5.4    Responsibility and Authority for Fund Management.   The Named Fiduciary shall
establish and maintain a funding policy, and may delegate to the other fiduciaries the following duties and authority: 

        (i)    authority
to direct the establishment of Investment Funds and determine the investment characteristics and general investment guidelines for
such Investment Funds, and to add to or change the number and nature of the Investment Funds from time to time; 

        (ii)    in
its discretion to appoint one or more Investment Managers to direct the investment and reinvestment of all or any portion of the
assets held by the Trustee under the Trust, and/or to direct that the assets of any Investment Fund be invested in one or more
insurance contracts, mutual funds or similar collective investment medium; and 

        (iii)    to
periodically review the performance of the Trustee and any Investment Manager in the investment and reinvestment of the assets
accumulated under the Plan, and report to the Board with respect to such performance at least annually. 

ARTICLE VI

INVESTMENT; PARTICIPANT’S ACCOUNTSVOTING OF STOCK 

        Section
6.1    Investment of Deposits and Employer Contributions.   A Participant’s
Deposits and Rollovers and allocations of Employer Matching Contributions, Qualified Matching Contributions and Qualified
Discretionary Contributions for a Plan Year shall be invested in the Investment Funds in accordance with the Participant’s
allocations and reallocations. Except as otherwise provided in Section 4.3(b), Employer Discretionary Contributions, other than
Qualified Discretionary Contributions, shall be invested in the ESOP Fund. All such investments and income related thereto shall
be allocated to each Participant’s Accounts pursuant to the provisions of Section 6.2. At least quarterly, the Plan
Administrator shall prepare or cause to be prepared a report indicating the increase or decrease in the valuation of each of the
funds established under the Plan, which report shall be made available for review by Participants. 

        Except as otherwise provided
herein, income earned on assets of any Investment Fund shall be invested by the Trustee in like assets. Notwithstanding the
foregoing, if an Exempt Loan is not outstanding, the Named Fiduciary may direct the Trustee to retain Employer Discretionary
Contributions made in cash and to invest such amounts in one or more available funds other than Company Stock, subject to the
requirement that the ESOP Fund shall be always primarily invested in Company Stock. 

        Section 6.2    Participant’s
Accounts.   (a)  Establishment of Accounts.  Separate Accounts shall be established
and maintained for each Participant which, depending upon the investment funds selected, shall consist of the following Accounts:

        (i)    A
separate Account for the portion the Participant’s Deposits, Rollovers, Employer Matching Contributions, Employer
Discretionary Contributions and Qualified Discretionary Contributions allocated to each of the Investment Funds other than the
Employee Common Stock Fund or the ESOP Fund, and all adjustments thereto; 

        (ii)    An
Employee Common Stock Account, which shall consist of the Participant’s Deposits, Rollovers, Employer Matching Contributions,
Qualified Matching Contributions and Qualified Discretionary Contributions allocated to the Employee Common Stock Fund and all
adjustments thereto. 

        (iii)    An
ESOP Account, which shall consist of a Participant’s interest in the ESOP Fund attributable to either cash or shares of
Company Stock derived from Employer Discretionary Contributions under Section 4.2, and all adjustments thereto. 

        To the extent necessary or
appropriate to provide for the proper administration of the Plan, the Accounts of Participants shall include separate balances or
subaccounts for interests derived from Before-tax Matched, Before-tax Unmatched, and After-tax Deposits, Rollovers, Employer
Matching Contributions, Qualified Discretionary Contributions, Employer Discretionary Contributions and such other separate
balances as the Plan Administrator shall determine. 

        During any Plan Year in which
an Exempt Loan is outstanding, the Plan Administrator may establish such other Accounts or subaccounts in the ESOP Fund as may be
required to reflect the release of Company Stock from the Suspense 

16 

Account, and to reflect the nature or source of the Employer Contribution
used for purposes of releasing such Company Stock from the Suspense Account. In addition, the Plan Administrator shall continue to
maintain such Accounts and subaccounts as were established (or are otherwise reasonably necessary) to reflect the provisions of
the Prior Plans, including, but not limited to, ESOP Fund Accounts and subaccounts to reflect the Exempt Loan (and repayment
thereof) used to acquire the 1990 Preferred Stock and to reflect the conversion of such preferred stock into Common Stock.

        As soon as practicable
following the end of each Plan Year, the Company shall prepare for each Participant an annual statement which shall reflect the
status of the Participant’s Accounts in such form as may be prescribed by the Plan Administrator. 

        (b)    Crediting
of Accounts.   The appropriate Accounts of each Participant shall be credited with the amounts of his or her
Deposits, Rollovers, Employer Matching Contributions, Employer Discretionary Contributions, Qualified Matching Contributions and
Qualified Discretionary Contributions as such amounts are received by the Trustee. The reallocation of a Participant’s
Accounts shall be appropriately credited as of a Valuation Date coincident with or next following the effective date of the
reallocation. A Participant’s ESOP Accounts shall be credited as soon as possible after the end of each Plan Year with the
amount of cash or Company Stock allocated to his or her ESOP Account for such Plan Year. 

        (c)    Valuation
of Accounts.   Each Participant’s Accounts shall be valued and adjusted on the Valuation Date to preserve
his or her proportionate interest in the related funds. As of each Valuation Date each of the Accounts of each Participant shall
be adjusted to reflect the effect of income, collected and accrued, realized and unrealized gains and losses, expenses and all
other transactions since the last Valuation Date with respect to the related fund in such manner as the Trustee shall deem
appropriate. 

        Section 6.3    Acquisition
of Stock by Trustee.   Shares of Company Stock shall be acquired by the Trustee either (i) on the open market,
(ii) from private sources, which may include employees or former employees of an Employer, (iii) as part of the Employer’s
Discretionary Contribution pursuant to Article IV, (iv) by the exercise of rights as hereinafter provided, or (v) in such other
manner as the Trustee may from time to time determine, including an acquisition from an Employer with the proceeds of an Exempt
Loan. The proceeds of an Exempt Loan must be used within a reasonable time after receipt by the Trustee only for any or all of the
following purposes: (i) to acquire qualifying employer securities (within the meaning of Code section 409(1) and ERISA section
407(d)(5)); (ii) to repay such loan; or (iii) at the direction of the Named Fiduciary to repay a prior Exempt Loan. A new Exempt
Loan, the proceeds of which are so used, must satisfy the foregoing provisions. Except as permitted by applicable law, no security
acquired with the proceeds of an Exempt Loan may be subject to a put, call or other option, or buy-sell or similar arrangement
while held by and when distributed from the Plan, whether or not a portion of the Plan is then an employee stock ownership plan.
The Trustee shall also hold for allocation to Participant’s ESOP Fund Accounts, as provided in the Plan or Trust, shares of
Company Stock acquired because of cash withdrawals or distributions from the ESOP Fund. 

        Section 6.4    Stock
Rights, Stock Splits and Stock Dividends.   A Participant shall have no right of request, direction or demand
upon the Named Fiduciary or the Trustee to exercise rights to purchase shares of Company Stock or other securities of the Company.
The Trustee may exercise or sell any rights to purchase shares of Company Stock appertaining to shares of such stock held by the
Trustee, and the Accounts of Participants shall be appropriately credited. Shares of Company Stock received by the Trustee by
reason of a stock split or a stock dividend shall be allocated to the appropriate Accounts of the Participants. 

        Section 6.5    Voting
Rights and Tender Offers with Respect to Company Stock.   Voting rights with respect to Company Stock held by
the Trustee and tender offers with respect to Company Stock shall be handled in accordance with the provisions of the Trust.

ARTICLE VII

VESTING AND DISTRIBUTION OF ACCOUNTS UPON

TERMINATION OF EMPLOYMENT 

        Section 7.1    Vesting.   The
entire balance in all of a Participant’s Accounts shall be fully vested and nonforfeitable at all times and shall be paid to
such Participant or his or her Beneficiary at the time and in the manner described in Section 7.2. 

        Section 7.2    Settlement
Date and Time of Distribution.   (a)  Settlement Date.  Subject to the other
provisions of this Article VII, each Participant’s “Settlement Date” shall be the Valuation Date immediately
following the date employment with the Employer terminates for any reason, including Total and Permanent Disability.
Notwithstanding the foregoing, a Participant’s Settlement Date with respect to any amounts credited to his or her Accounts
after the regular Settlement Date determined under the preceding sentence shall be the Valuation Date next following the date on
which such amounts are credited to his or her Accounts. 

17 

        (b)    Code
Section 401(a)(9).   (1)  Required Distributions.  If a Participant continues in
Employment past the end of the calendar year in which he or she attains age seventy and one-half (70-1/2), the Participant is a
five percent (5%) owner, as defined in Code section 401(a)(9)(C), of an Employer, and payment of such Participant’s Plan
retirement benefits has not otherwise commenced, then payment of such benefits shall commence as of April 1 of the calendar year
which begins immediately after the calendar year in which he or she attains such age or, if later, January 1 of the calendar year
which begins immediately after the Plan Year in which he or she first has an Account balance under the Plan. The benefit so
payable shall be determined as of the last day of the immediately preceding Plan Year, and for such first year (to the extent
required under Code section 401(a)(9) or Treasury Regulations thereunder) shall include a distribution for both the calendar year
in which such Participant attained age seventy and one-half (70-1/2) and the succeeding calendar year. If such Participant
continues in Employment after the date benefits commence hereunder and earns additional benefits under the Plan, then payment of
any additional benefits earned in a Plan Year shall commence as soon as reasonably possible in the next Plan Year. 

        (2)    Compliance
with Code.   Subject to such security arrangements as the Plan Administrator deems appropriate, the Plan
Administrator shall be entitled to direct the payment of retirement benefits payable hereunder regardless of whether the
Participant has consented to such commencement or has perfected his or her entitlement to such benefit, if and to the extent such
action is deemed necessary or appropriate to comply with Code section 401(a)(9). 

        (c)    Form
of Distribution.   Any distribution due shall, except as provided in paragraph (d) or Addendum III, be paid in
a lump sum distribution consisting of: 

	(i) 	  	the
cash equivalent of the Current Market Value as of the Settlement Date of the Participant’s
Accounts other than a Common Stock Account or any Account in the ESOP Fund;  

	(ii) 	  	full
shares of Common Stock attributable as of the Settlement Date to the Participant’s
Employee Common Stock Account, or the cash equivalent thereof, together with the cash
equivalent of the Current Market Value as of the Settlement Date of fractional shares of
Common Stock attributable to such Account;  

	(iii) 	  	full
shares of Common Stock with respect to the Participant’s Account in the ESOP Fund as
of the Settlement Date, or the cash equivalent thereof, together with the cash equivalent
of the Current Market Value of any fractional shares attributable to such Account.  

        (d)    Installments.   Notwithstanding
the foregoing, any Participant who had an Account balance as of December 31, 1988 under a Prior Plan or who had an account balance
under the Federal-Hoffman Savings and Investment Plan immediately before such Plan was merged into the 1984 Prior Plan, may
request distribution from his or her Accounts, other than the Accounts referred to in Section 7.2(c)(ii) and (iii), by payment in
a series of substantially equal installments, paid not less frequently than annually, over a term certain equal to the
Participant’s life expectancy determined in accordance with the unisex annuity table found in Treasury Regulation
§1.72-9. Payments for each year are calculated as follows: 

	(i) 	  	For
the first year in which installments are paid, the installment payment amount shall be
determined as follows:  

Total Account Balance as of Settlement Date

Life Expectancy from table 

	(ii) 	  	For
each subsequent year, the applicable installment payment amount shall be determined as
follows:  

Total Remaining Account Balance

        (adjusted for earnings or losses)........        

Life Expectancy from table reduced by one

year for each year of installments paid 

A Participant who has elected an installment distribution may elect to
accelerate payment by requesting a lump sum payment of any remaining Account balance in accordance with procedures established by
the Plan Administrator. If a Participant dies before all installments are paid, remaining payments shall be made to such
Participant’s Beneficiary by using the same payment method, provided that on Timely Notice such Beneficiary may elect a lump
sum payment of the deceased Participant’s remaining Account balance. 

        (e)    Right
to Defer.   Notwithstanding subsection (a) of this Section 7.2, but subject to the provisions of subsection (b)
of this Section 7.2, if the value of the Participant’s vested interests as of the Settlement Date exceeds $5,000,
distribution shall be made at the time and in the manner prescribed above only if the Participant consents thereto. If the
Participant fails to consent, distribution shall be made, as of any subsequent Valuation Date elected by the Participant upon
Timely Notice (but not later than sixty (60) days after the end of the Plan Year in which the Participant attains age seventy and
one-half (701⁄2) or actually 

18 

retires, whichever is later; upon the occurrence of the later of such dates,
a distribution shall be made as of a Valuation Date, selected by the Plan Administrator, and occurring on or reasonably soon after
such date), in a lump sum payment; provided that distribution shall in all events be completed not later than five (5) years after
the date of the Participant’s death. In the event distribution is deferred as provided in the preceding sentence, until
distribution the Participant’s or Beneficiary’s interests, as the case may be, under the Trust shall be held and
invested in accordance with the Plan and Trust and a Beneficiary shall be entitled to direct investments in the same manner and
degree as a Participant. A Participant, whose total Accounts balance is $5,000 or less, may elect to defer payment until after
allocation of Employer Contributions for the Plan Year in which his employment terminates. 

        (f)    Waiver
of Notice.   If a distribution is one to which Code sections 401(a)(11) and 417 do not apply, a distribution
may commence less that thirty (30) days after the notice required under Treasury Regulations §1.411(a)-11(c) is given,
provided that: 

        (1)    the
Plan Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after
receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular
distribution option), and 

        (2)    the
Participant, after receiving the notice, affirmatively elects a distribution. 

        Section 7.3    Distribution
of Dividends.   All cash dividends declared with respect to Common Stock owned by the ESOP Fund shall be paid
out to Participants with an Account under the ESOP Fund, and in proportion to the Common Stock, or its equivalent, allocated to
such Account. Such dividend shall be paid directly to such Participants or, if first paid to the ESOP Fund, shall be paid, as soon
reasonably possible after receipt thereof, by the Trustee to such Participants. 

        Section 7.4    Put Option.   In
the event any shares of Company Stock in the ESOP Fund are subject to a trading limitation or are not publicly traded when
distributed (or become subject to a trading limitation or are not readily tradable on an established market after distribution),
such shares of Company Stock will be subject to the put option described below. For purposes of this Section 7.4, a trading
limitation is any restriction under federal or state law or regulation or a private agreement that would make the security not as
freely tradable as one not subject to such restriction. The put option shall be as follows: 

        (a)    The
holder (eligible persons under subparagraph (c) below) may put the share to the Company and the Company will purchase the share,
except as provided in (f) below. 

        (b)    The
holder may exercise the put option by notifying the Company in writing the option is being exercised. 

        (c)    Only
a Participant, the Participant’s donees or Beneficiaries, or a person (including an estate or its distributee) to whom the
security passes by reason of a Participant’s death may exercise the put option. 

        (d)    The
price at which the put option may be exercised shall be the value of the security determined in accordance with Treasury
Regulation §54.4975-11(d)(5). 

        (e)    The
Company shall be permitted to defer payment if adequate security is provided, and the Company Stock is distributed in a lump sum.
The deferred payment terms shall be as follows: 

	(i) 	  	interest
will be paid at a rate charged by banks in the geographic area of the Company on
commercial loans of similar amount and duration;  

	(ii) 	  	substantially
equal annual installments will commence within thirty (30) days after the put option is
exercised;  

	(iii) 	  	the
payment period will end five (5) years after the date the put option is exercised; and  

	(iv) 	  	the
cumulative payments at no time will be less than the aggregate of reasonable periodic
payments as of such time.  

        (f)    Under
no circumstances shall the put option require the Plan and Trust to purchase the shares, although the Plan and Trust will have the
option to assume the rights and obligations of the Company. 

        (g)    The
put option may be exercised for fifteen (15) months after the date on which the security is distributed by the Plan. 

        (h)    If
the Company Stock distributed from the ESOP Fund is readily tradable on an established market without restriction when distributed
but ceases to be so tradable within fifteen (15) months after distribution, the Company Stock will be 

19 

subject to a put option for the remainder of the fifteen (15) month period
beginning with the date the restriction commences. The Company shall notify each security holder in writing on or before the tenth
day after the date the security ceases to be so tradable of the terms of the put option. 

        (i)    The
period during which the put option may be exercised will not include any time when a distributee is unable to exercise it because
the party bound by the put option is prohibited from honoring it by applicable federal or state law. 

        (j)    The
rights under this Section are nonterminable. 

        (k)    Notwithstanding
the foregoing, in no event shall the holder’s rights under this Section 7.4 be less than may be required under
applicable law and regulations. 

        (l)    In
the event Company Stock is subject to the put options described above, the Company shall have a right of first refusal with
respect to such Company Stock. The holder of such Company Stock shall notify the Company at least fifteen (15) days prior to the
date of any sale of any such Company Stock to a third party. The notice shall specify the terms and conditions of such proposed
sale. The Company shall have the right, within such fifteen (15) day period, to purchase the Company Stock, on terms no less
favorable to the holder than the terms of the bona fide offer by a third party. If the Company does not exercise its right to
purchase during the fifteen (15) day period, the holder may proceed with the proposed sale to the third party. 

        Section 7.5    Direct
Rollover Distributions.   (a)  General.  Notwithstanding any provision of the Plan
to the contrary that would otherwise limit a Distributee’s election under this Article VII or Article VIII, a Distributee may
elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. 

        (b)    Definitions.  For
purposes of this Section 7.5, the following definitions will apply: 

        (1)    Eligible
Rollover Distribution.   An Eligible Rollover Distribution is any distribution of all or any portion of the
balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include: (i) any distribution
that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s
designated Beneficiary, or for a specified period of ten (10) years or more; (ii) any distribution to the extent such distribution
is required under Code section 401(a)(9); (iii) any hardship distribution described in Code section 401(k)(2)(B)(i)(iv) received
after December 31, 1998; and (iv) the portion of any distribution that is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to employer securities). 

        (2)    Eligible
Retirement Plan.   An Eligible Retirement Plan is an individual retirement account described in Code section
408(a), an individual retirement annuity described in Code section 408(b), an annuity plan described in Code section 403(a), or a
qualified trust described in Code section 401(a), that accepts the Distributee’s Eligible Rollover Distribution. However, in
the case of an Eligible Rollover Distribution to the surviving Spouse, an Eligible Retirement Plan is an individual retirement
account or individual retirement annuity. 

        (3)    Distributee.   A
Distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving Spouse
and the Employee’s or former Employee’s Spouse or former Spouse who is the alternate payee under a QDRO are Distributees
with regard to the interest of the Spouse or former Spouse. 

        (4)    Direct
Rollover.   A Direct Rollover is a payment by the Plan to the Eligible Retirement Plan specified by the
Distributee. 

        (c)    Notice.   The
Plan Administrator shall timely provide a Participant or other qualifying individual the notice described in Code section 402(f).

        Section 7.6    Protected
Forms of Benefit.   Optional forms of benefit described in Addendum III shall be available to the Participants
therein described, and shall apply to the balances in such Participant’s Accounts as therein described, other than ESOP Fund
Accounts. 

        Section 7.7    Amended Minimum Distribution Requirements.  

        (a)    General.   The
provisions of this Section 7.7 shall apply for purposes of determining required minimum distributions made under the Plan on or
after January 1, 2003, and will take precedence over any inconsistent provisions of the Plan. All distributions required under
this Section 7.7 will be determined and made in accordance with Treasury Regulations issued under Code section 401(a)(9).

20 

        (b)    Time
and Manner of Distribution.   (1)  General.   The entire balance in all of a
Participant’s Accounts will be distributed, or begin to be distributed, to the Participant no later than the
Participant’s Required Beginning Date.  

        (2)    Death
of Participant Before Required Beginning Date.   In the event a Participant who is not in pay status dies
before the Required Beginning Date, the entire balance in all of such Participant’s Accounts shall be distributed not later
than December 31 of the calendar year containing the fifth anniversary of the Participant’s death. This Section 7.7(b)(2)
shall apply regardless of whether such Participant has a Designated Beneficiary and regardless of whether such Beneficiary is the
Participant’s Surviving Spouse. 

        (3)    Death
Before Required Beginning Date of Participant in Pay Status.   Solely with regard to those Participants who (i)
at the time of death are in pay status and receiving an installment form of distribution under the Plan and (ii) die before the
Required Beginning Date, the Beneficiary, if any, of such Participant shall receive the remaining balance in all of such
Participant’s Accounts as described in either Section 7.2 or as described in this paragraph (3), whichever shall result in a
more rapid rate of distribution. 

	(i) 	  	Distribution
to Designated Beneficiary.   Distributions to a Designated Beneficiary
shall begin not later than December 31 of the calendar year immediately following the
calendar year in which the Participant dies. The minimum amount distributed to such
Designated Beneficiary for each Distribution Calendar Year after the year in which the
Participant dies is the quotient obtained by dividing the then balance in the Participant’s
Accounts by the longer of the remaining Life Expectancy of the Participant or the
remaining Life Expectancy of the Participant’s Designated Beneficiary. For this
purpose, the Participant’s Life Expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year. The Life
Expectancy of the Designated Beneficiary is calculated using the age of such Designated
Beneficiary in the year following the year of the Participant’s death, reduced by
one for each subsequent year.  

	(ii) 	  	Distributions
Where Participant Had No Designated Beneficiary.   If a Participant in
pay status dies and there is no Designated Beneficiary as of September 30 of the year
after the year of the Participant’s death, then the entire balance remaining in such
Participant’s Accounts shall be paid no later than December 31 of the calendar year
that includes the fifth anniversary of such Participant’s death.  

        (4)    Death
On or After Required Beginning Date.   The entire balance in the Accounts of a Participant who dies on or after
the Required Beginning Date shall be distributed not later than December 31 of the calendar year that includes the fifth
anniversary of the Participant’s death; provided, however, if such a Participant is receiving an installment form of
distribution under the Plan at the time of death, then the remaining balance in such Participant’s Accounts shall be
distributed as provided in Section 7.2 or Section 7.2(b)(3)(i), whichever shall result in a more rapid distribution of the entire
balance in such Accounts. 

        (5)    Required
Minimum Distributions During Participant’s Lifetime.   (i)  General.  Solely
with respect to those Participants who are eligible to elect an installment form of distribution under the Plan, the installments
paid to such a Participant beginning on the Required Beginning Date shall be determined under either Section 7.2 or as described
below, whichever shall produce the most rapid rate of distribution.  

	(ii) 	  	Determining
Minimum Distribution Amount.   During the Participant’s lifetime,
the minimum amount that will be distributed for each Distribution Calendar Year is the
quotient obtained by dividing the entire balance in all of the Participant’s
Accounts by the distribution period in the Uniform Lifetime Table set forth in Treasury
Regulations, section 1.401(a)(9)-9, using the Participant’s age as of such individual’s
birthday in the Distribution Calendar Year. Said minimum distribution amount will begin
with the Participant’s first Distribution Calendar Year, and continue up to and
including the Distribution Calendar Year that includes the Participant’s date of
death.  

        (c)    Definitions.   For
purposes of this Section 7.7 the following definitions will apply: 

        (1)    Designated
Beneficiary.   The individual who is designated as the Beneficiary under Section 2.1(6) and is the Designated
Beneficiary under Code section 401(a)(9) and Treasury Regulations, section 1.401(a)(9)-1, Q&A-4. 

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

        (3)    Life
Expectancy.   Life Expectancy as computed by use of the Single Life Table in Treasury Regulations, section
1.401(a)(9)-9. 

21 

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

        (5)    Required
Beginning Date.   The date specified in Section 7.2. 

ARTICLE VIII

WITHDRAWALS DURING EMPLOYMENT AND LOANS  

        Section 8.1    Unrestricted
Withdrawals.   (a)  Withdrawals from After-tax Deposits.  Upon Timely Notice filed
with the Plan Administrator or its delegate, a Participant may, once in each calendar quarter, elect to withdraw all or any
portion of the amounts in his or her Accounts which are attributable to After-tax Deposits, excluding any amounts previously
withdrawn hereunder. Such distributions shall be made as soon as administratively feasible after proper application is made.

        (b)    Withdrawals
from Rollover Accounts.   Upon Timely Notice filed with the Plan Administrator or its delegate, a Participant
may, at any time, elect to withdraw all or any portion of the amounts in his or her Accounts which are attributable to Rollovers,
excluding any amounts previously withdrawn hereunder. Such distributions shall be made as soon as administratively feasible after
proper application is made. 

        Section 8.2    Restricted
Withdrawals.   (a)  General.  Notwithstanding the fact a Participant is employed by
an Employer, on a showing by the Participant of a hardship, which is defined as an immediate and heavy financial need that cannot
be met from other resources reasonably available to the Participant, a Participant may be permitted, on Timely Notice, to make a
withdrawal from the amounts allocated to his or her Accounts which are attributable to Before-tax Deposits. The amount of the
withdrawal that shall be permitted on account of any one hardship shall be the lesser of (1) the Participant’s Before-tax
Deposits made to that point in time, increased by amounts described in Treasury Regulations §1.401(k)-1(d)(2)(iii) that were
credited to his or her appropriate Account as of December 31, 1988, reduced by the amount of prior hardship distributions, (2) the
amount necessary to relieve the Participant’s hardship, and (3) the amount requested by the Participant. 

        (b)    Hardship.   For
purposes of this Section, a hardship shall be deemed to exist if the distribution is on account of: 

	(i) 	  	Medical
expenses incurred by the Participant, the Participant’s Spouse, or any dependent of
the Participant;  

	(ii) 	  	Purchase
of a principal residence for use by the Participant;  

	(iii) 	  	Payment
of tuition for the next semester or quarter of post-secondary education for the
Participant or the Participant’s Spouse, children or other dependents;  

	(iv) 	  	The
need to prevent eviction or foreclosure with respect to the Participant’s principal
residence; or  

	(v) 	  	Other
events provided for in rulings, notices or other documents published by the Commissioner
of Internal Revenue, or as determined by the Plan Administrator, on a uniform and
nondiscriminatory basis, to be an immediate and heavy financial need, based on the
particular facts and circumstances relevant to a Participant’s situation.  

The Plan Administrator may require such proof, as it deems appropriate, from
the Participant to evidence the existence of such hardship. 

        (c)    Financial
Need.   To demonstrate that a need cannot be met from other resources, the Participant may be required to
provide such documents or information as the Plan Administrator may require and to certify the need cannot be relieved (i) through
reimbursement from insurance, (ii) by reasonable liquidation of assets, (iii) by cessation of Deposits under the Plan, or (iv) by
other withdrawals under or loans from this or any other plan or a loan from a commercial lender, on reasonable terms. 

        (d)    Effect
of Withdrawal.   Except as otherwise described herein, hardship withdrawals shall be drawn only from the
Participant’s Before-tax Deposits Account, exclusive of earnings thereon. In the event of a hardship withdrawal, the
Participant’s Deposits shall be suspended for a period of twelve (12) months following such withdrawal, and the amount which
the Participant may contribute as Before-tax Deposits for the Plan Year following such withdrawal shall not exceed the amount 

22 

described in Section 3.2(c)(i), reduced by the amount of the
Participant’s actual Before-tax Deposits for the Plan Year in which the withdrawal occurred. 

        (e)    Time
for Payment.   Hardship distributions shall be made as soon as administratively feasible after the withdrawal
is duly approved. 

        Section 8.3    Miscellaneous.   In
the event of the death of a Participant after an election to make a withdrawal under Section 8.1 or 8.2, but prior to distribution
thereof, the withdrawal election shall be deemed revoked. 

        Section 8.4    Loans
to Participants.   (a)  General.  Upon written application made on Timely Notice to
the Plan Administrator, a Participant who is currently Employed may borrow from the balances in his or her Accounts attributable
to After-tax Deposits, Before-tax Matched Deposits, Before-tax Unmatched Deposits, Rollovers, Qualified Discretionary
Contributions, Qualified Matching Contributions and Employer Matching Contributions, other than any such contributions allocated
to the Participant’s Account under the ESOP Fund, whether so allocated under the Plan or Prior Plans. A Participant may
request a loan for purposes of purchasing a principal residence for his or her use, or for the payment of tuition expenses for the
post-secondary education of the Participant, the Participant’s Spouse or children. The amount of any loan to a Participant
hereunder shall not be less than $1,000 nor more than $50,000; provided that the maximum principal amount of any outstanding loan
shall not exceed fifty percent (50%) of the aggregate value of all of the Participant’s loanable account balances. No person
who has two (2) outstanding loans, regardless of the amounts of such loans, shall be eligible for an additional loan until at
least one (1) such loan is fully repaid. 

        (b)    Sequence
of Accounts.   From the Account balances available for loans, funds for any loan shall be drawn first from the
balances in the Participant’s Accounts attributable to any After-tax Deposits. If such balances are not sufficient to provide
for the full amount of the loan, the remainder shall be drawn from, and in the order of, the Participant’s Before-tax
Deposits, Rollovers, Qualified Discretionary Contributions and Employer Matching Contributions. 

        (c)    Loan
Terms.   Each loan shall (i) in accordance with Department of Labor Regulation §2550.408b-1, bear interest
at a rate commensurate with interest rates charged on similar commercial loans, (ii) be made for the period, as requested by the
Participant, not to exceed sixty (60) months, (iii) require payments of principal and interest on at least a quarterly basis by
means of payroll deduction, with substantially level amortization, and (iv) be subject to such other terms and conditions as the
Plan Administrator may determine. The terms and conditions of each loan shall be incorporated in a promissory note executed by the
borrowing Participant. 

        (d)    Segregated
Account.   Amounts loaned pursuant to this Section shall not share in the allocations of Investment Fund
earnings under Section 6.2, but shall be investments solely for the Accounts of the borrower and shall be treated as a segregated
Account of the Trust, which Account shall serve as security for the loan repayment. Except to the extent required by USERRA or as
determined in the sole discretion of the Plan Administrator with respect to a Participant who is on an approved leave of absence
of not longer than a year, either without pay or at a rate of pay less than the amount of the loan installment payments, if the
borrower does not repay the loan in accordance with its terms and conditions, or fails to cure any default within three (3) months
after receiving notice thereof, the Plan Administrator may direct that the borrower’s Accounts used as security for the loan
shall be charged, in the order listed in subsection (b) above, for the total amount of the loan or any part thereof (including
accrued interest), with such amount being treated as a distribution of that portion of such Accounts, to the extent such treatment
does not violate applicable provisions of the Code or ERISA (e.g., premature distribution of a Before-tax Deposit). 

        (e)    Limit
on Withdrawals.   Notwithstanding the provisions of Sections 8.1 and 8.2, a Participant shall not be entitled
to make any withdrawal hereunder to the extent such withdrawal requires distribution of loanable account balances then outstanding
in the form of loans. However, following a Participant’s termination of employment, the notes evidencing outstanding loans
may be distributed to a Participant or Beneficiary in full satisfaction of any remaining indebtedness, unless the Participant
continues to make payments on such loan at the same times and in the same amounts as payments were made by payroll withholding
during the Participant’s employment. 

        (f)    Administration.   The
Plan Administrator shall administer this loan program in accordance with ERISA section 408(b)(1) and shall adopt written
procedures for the administration of Participant loans. Such procedures shall: 

	(i) 	  	describe the persons responsible for administering
the loan program; 

	(ii) 	  	describe procedures for applying for loans;

	(iii) 	  	describe the basis on which loans are approved or
denied; 

	(iv) 	  	describe the limits, types, and amounts of loans
offered; 

	(v) 	  	state the procedures for determining a reasonable
rate of interest; 

23 

	(vi) 	  	describe the types of collateral which will be used
to secure loans; and 

	(vii) 	  	describe the events constituting default and what
will happen upon default. 

ARTICLE IX

PLAN ADMINISTRATION 

        Section 9.1    Plan
Administrator.   The Company, through a committee or through other designated officers or agents, shall be the
Plan Administrator for all purposes under ERISA, and shall have the exclusive responsibility for the administration and operation
of the Plan and shall have the power to take any action necessary or appropriate to carry out such responsibilities. The duties of
the Plan Administrator shall include, but not be limited to, the following: 

	(i) 	  	to prescribe, require and use appropriate forms or
other methods of communication; 

	(ii) 	  	to formulate, issue and apply rules and regulations;

	(iii) 	  	to prepare and file reports, notices and any other
documents relating to the Plan which may be required by law; 

	(iv) 	  	to interpret and apply the provisions of the Plan;

	(v) 	  	to make appropriate determination calculations;

	(vi) 	  	to authorize and direct benefit payments.

In exercising these powers and duties, and other powers and duties granted
under the Plan or Trust to the Plan Administrator, the committee and each delegate of the Company is granted such discretion as is
appropriate or necessary to carry out the duties and powers so delegated. This discretion necessarily follows from the fact that
the Plan and related documents do not, and are not intended to, prescribe all rules necessary to administer the Plan or anticipate
all circumstances or events which may arise in the course of such administration. 

        Section 9.2    Delegation
of Authority and Responsibility.   If the Plan Administrator delegates powers and duties to a committee, the
committee may delegate certain of its powers to any one committee member or to a person employed by an Employer under such terms
and conditions as may be specified by the committee. It is expressly provided, however, that the Plan Administrator shall retain
full and exclusive authority and responsibility for and respecting any plan administration activities, and nothing contained in
this Section 9.2 shall be construed to confer upon any such individual any discretionary authority or control respecting the
administration or operation of the Plan. 

        Section 9.3    Use
of Professional Services.   In administering the Plan, the Plan Administrator may obtain the services of such
attorneys, actuaries, accountants or other persons it deems appropriate, any of whom may be the same persons who are providing
other services to an Employer. 

        Section 9.4    Fees
and Expenses.   Committee members or other delegates who are employees of an Employer shall serve without
compensation but shall be reimbursed for all reasonable expenses incurred in performing delegated duties. All such expenses shall
be paid from the Trust unless the Company, in its sole discretion, elects to pay them. 

        Section 9.5    Communications.   All
requests, claims, appeals, elections and other communications to the Plan Administrator shall be in writing and shall be made by
transmitting the same electronically, if allowed by the Plan Administrator, or via the U.S. Mail, certified, return receipt
requested, addressed as follows: 

	  	Pentair, Inc.

5500 Wayzata Boulevard, Suite 800

Golden Valley, Minnesota 55416

Attn:      Vice President of Human Resources 

24 

ARTICLE X

CLAIMS FOR BENEFITS 

        Section
10.1    Introduction.   This Section describes the procedures by which a person may
bring a good faith claim for benefits under the Plan and how such a claim will be handled. This Section constitutes the
Plan’s claim procedures within the meaning of ERISA section 503. 

        Section
10.2    Review by Plan Administrator.   (a)  Filing
Claims.  A Participant or Beneficiary (or a person who in good faith believes he or she is a Participant or
Beneficiary, i.e., a “claimant”) who believes he or she has been wrongly denied benefits under the Plan may file a
written claim for benefits with the Plan Administrator. Although no particular form of written claim is required, no such claim
shall be considered unless it provides a reasonably coherent explanation of the claimant’s position. If the Plan
Administrator receives an incomplete claim, it shall so advise the claimant and request the claimant to more fully explain the
nature of the claim. 

        (b)    Decision
on Claim.   The Plan Administrator shall in writing approve or deny the claim within sixty (60) days of
receipt, provided that such sixty (60) day period may be extended by not more than an additional ninety (90) days for reasonable
cause by notifying the claimant and indicating the circumstances which require such extension and the date by which a decision
with respect to the claim is expected to be made. If the claim is denied, in whole or in part, the Plan Administrator shall
provide adequate notice in writing to the claimant, setting forth the following: 

        (1)    the
specific reason or reasons for the denial; 

        (2)    a
specific reference to the pertinent Plan provisions on which the denial is based; 

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

        (4)    the
steps to be taken if the claimant wishes to appeal the decision to the Appeals Committee. 

        Section 10.3    Appeal
of Denied Claim.   (a)  Filing Appeals.  A claimant whose claim has been denied in
whole or in part may appeal such denial to the Appeals Committee by filing a written appeal with the Plan Administrator within
sixty (60) days of the date of the denial. A decision of the Plan Administrator which is not appealed within the time herein
provided shall be final and conclusive as to any matter which was presented to the Plan Administrator. 

        (b)    Rights
on Appeal.   A claimant (or a claimant’s duly authorized representative) who appeals the Plan
Administrator’s decision shall, for the purpose of preparing such appeal, have the right to review any pertinent Plan
documents, and submit issues and comments in writing to the Appeals Committee. 

        (c)    Decision
by Appeals Committee.   The Appeals Committee shall make a final and full review of any properly appealed
decision of the Plan Administrator within sixty (60) days after receipt of the appeal, provided that such period may be extended
by not more than an additional sixty (60) days for reasonable cause by notifying the claimant and indicating the circumstances
which require such extension and the date by which a decision with respect to the claim is expected to be made. The Appeals
Committee’s decision shall be in writing and shall include specific reasons for its decisions and specific references to the
pertinent Plan provisions on which its decision is based. 

        Section
10.4    Appointment of Appeals Committee.   Subject to their acceptance thereof, the
Plan Administrator shall appoint at least two (2) individuals to serve on the Appeals Committee. The Appeals Committee may be a
standing committee or an ad hoc committee appointed for hearing a particular claim. To the extent reasonably possible, no
individual who was materially involved in the Plan Administrator’s review of, or decision on, the initial claim shall be so
appointed. 

ARTICLE XI

AMENDMENTS AND TERMINATION 

        Section
11.1    Amendments and
Termination.   (a)  General.  While it is intended that the Plan shall continue in
effect indefinitely, the Board may from time to time modify, alter or amend the Plan or the Trust, provided that no amendment
affecting the rights, duties or responsibilities of the Trustee may be made without the Trustee’s consent. The Board may at
any time order the temporary suspension or complete discontinuance of Employer Contributions or other contributions or may
terminate the Plan, provided, however, that 

25 

        (i)    no
such action shall make it possible for any part of the Trust assets (except such part as is used for the payment of expenses) to
be used for or diverted to any purpose other than for the exclusive benefit of Participants or their Beneficiaries and the
defraying of the reasonable expenses of administering and winding up the Plan and Trust, 

        (ii)    no
such action shall adversely affect the rights or interests of Participants theretofore vested under the Plan, 

        (iii)    in
the event of termination of the Plan or complete discontinuance of Employer Contributions hereunder, all rights and interests of
Participants not theretofore vested shall become vested as of the date of such termination or complete discontinuance. 

If the Plan is completely terminated and there are unallocated shares of
Company Stock in a Suspense Account, the Trustee shall redeem or sell all such shares and use the proceeds to meet Exempt Loan
obligations. In the redemption or purchase of such shares by the Company, the Company shall be entitled to an offset against the
redemption or purchase price paid to the Trustee to the extent the Company has been required to make payments under any guaranty
of Exempt Loan obligations following a default by the Trustee in meeting Exempt Loan payments. 

        (b)    Amendments
to Comply with Applicable Law.   Nothing herein shall be construed to prevent any modification, alteration or
amendment of the Plan or Trust which is required to comply with the provision of any applicable law or regulation relating to the
establishment or maintenance of this Plan and Trust including, but not limited to, the establishment and maintenance of the Plan
or Trust as a tax-qualified employee plan or trust under the Code, even though such modification, alteration or amendment is made
retroactively, or adversely affects the rights or interests of a Participant under the Plan. 

ARTICLE XII

MISCELLANEOUS 

        Section
12.1    Non-Guarantee of Employment.   Nothing contained in this Plan shall be
construed as a contract of employment between an Employer and a Participant, or as a right of any Participant to be continued in
the employment of an Employer, or as a limitation of the right of an Employer to discharge any Participant with or without cause.

        Section
12.2    USERRA.   Notwithstanding any provisions of this Plan to the contrary,
contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with Code
section 414(u). 

        Section
12.3    Internal Revenue Service Approval.   The adoption of this Plan document is
contingent upon and subject to obtaining such approval of the Commissioner of the Internal Revenue Service as may be necessary to
establish the deductibility for federal income tax purposes of any and all employer contributions made under the Plan, and the
Plan’s and Trust’s qualification for income tax exemption under Code sections 401 and 501(a), respectively. 

        Section
12.4    Rights to Trust Asset.   (a)  Rights of
Participants.  No Participant or any other person shall have any right to, or interest in, any part of the Trust
assets upon termination of employment or otherwise, except as provided from time to time under this Plan, and then only to the
extent of the amounts due and payable to such person out of Trust assets. All payments provided for in this Plan shall be made
solely out of Trust assets and neither the Employers, the Trustee, nor the Plan Administrator shall be liable therefor in any
manner. 

        (b)    Rights
of Employers.   Except as otherwise expressly provided under the Plan and Trust and to the extent permitted
under applicable law, Employers shall have no beneficial interests of any nature whatsoever in any Employer Contributions after
the same have been received by the Trustee, or in the assets, income or profits of the Trust or any part thereof. 

        Section
12.5    Requirement of Proof.   In discharging their duties and responsibilities
under the Plan, the Plan Administrator or other fiduciary may require proof of any matter concerning this Plan, and no person
shall acquire any rights or be entitled to receive any benefits under this Plan until such proof is furnished. 

        Section
12.6    Non-Recommendation of Investment.   The availability of any security
hereunder shall not be construed as a recommendation to invest in such security. The decision as to the choice of investment of
available Account balances among the Investment Funds is made solely by each Participant or Beneficiary, as the case may be, and
no officer or employee of any Employer or the Trustee is authorized to make any recommendation with respect to such investment
decisions. 

        Section
12.7    Indemnification.   The Company shall indemnify each Employer or member of an
administrative committee or the Board to whom Plan administration duties have been delegated and hold each of them harmless from
the consequences of his or her acts or conduct in an official capacity, if such individual acted in good faith and in a manner
reasonably believed to be solely in the best interests of the Participants and their Beneficiaries, and with respect to any
criminal action or proceeding had no reasonable cause to believe such conduct was unlawful. Such indemnification shall cover any
and all attorneys’ fees and expenses, judgments, fines and amounts paid in settlement, but only to the extent such amounts
are not 

26 

paid to such person(s) under the Company’s fiduciary insurance policy
and are actually and reasonably incurred by such person(s). 

        In no event shall this
Section 12.7 be construed to require the Company to indemnify third parties with whom it may contract to perform administrative or
investment management duties or to indemnify the Trustee to any extent beyond what may be required under such contract or the
Trust agreement, respectively. 

        Section
12.8    Selection of Investments.   Except to the extent it may be subject to the
direction of the Named Fiduciary or the instruction of an Investment Manager appointed by the Named Fiduciary, the Trustee shall
have the sole discretion to select investments for the various funds provided for herein. 

        Section
12.9    Non-Alienation.   (a)  General.  Except as
otherwise provided in subsection (b) or as allowed under Code section 401(a)(13), no right or interest of any Participant or
Beneficiary in the Plan and the Trust shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, attachment, garnishment, execution, levy, bankruptcy, or any other disposition of any kind, either
voluntary or involuntary, prior to actual receipt of payment by the person entitled to such right or interest under the provisions
hereof, and any such disposition or attempted disposition shall be void. 

        (b)    QDROs.   Notwithstanding
anything herein to the contrary, the Plan Administrator shall recognize and give effect to a QDRO with respect to child support,
alimony payments, or marital property rights if it determines such order meets the applicable requirements of Code section 414(p).
If a QDRO so directs, distribution may be made to an alternate payee designated in such order at a time not otherwise permitted
for distribution to the Participant. The Plan Administrator shall establish procedures concerning the notification of interested
parties, the determination of the validity of such orders, the determination of the source of funds to be used to provide for
distribution pursuant to such orders, and such other issues as may be necessary or appropriate to deal with QDROs in a uniform and
non-discriminatory manner. 

        Section
12.10    Facility of Payment.   If the Plan Administrator shall determine a
Participant or Beneficiary entitled to a distribution hereunder is incapable of caring for his or her own affairs because of
illness or otherwise, it may direct that any distribution from such individual’s Accounts may be made, in such shares as it
shall determine, to the Spouse, child, parent or other blood relative of such Participant, or Beneficiary, or any of them, or to
such other person or persons as the Plan Administrator may determine, until such date as it may determine such incapacity no
longer exists. The Plan Administrator shall be under no obligation to see to the proper application of the distributions so made
to such person or persons and any such distribution shall be a complete discharge of any liability under the Plan to such
Participant, or Beneficiary, to the extent of such distribution. 

        Section
12.11    Requirement of Releases.   If in the opinion of the Plan Administrator, any
present or former Spouse, dependent of a Participant or other person shall by reason of the law of any jurisdiction or otherwise
appear to have any interest in Plan benefits that may become payable to such Participant or with respect to a deceased
Participant, the Plan Administrator may direct that such benefits be withheld pending receipt of such written releases as it deems
necessary to prevent or avoid any conflict or multiplicity of claims with respect to the payment of such benefits. 

        Section
12.12    Board Action.   Any action which is required or permitted to be taken by
the Board under the Plan may be taken by the Compensation and Human Resources Committee of the Board or any other authorized
committee of the Board. 

        Section
12.13    Transfers from Other Qualified Plans.   There may be transferred to and
deposited with the Trustee to be held, invested and distributed in accordance with the provisions of the Plan and as an integral
part of the assets held by the Trustee thereunder, assets subject to any other plan qualified under Code section 401(a), as
amended, which is maintained by an Employer and is merged into the Plan. Such transfer and merger shall be affected on such other
terms and conditions as may be determined by the Board. 

        Section
12.14    Mergers, Consolidations and Transfer of Plan
Assets.   (a)  General.  In the case of any merger or consolidation with, or
transfer of assets or liabilities to or from any other plan, each Participant in the Plan must be entitled (if the Plan then
terminated) to receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the
benefit such Participant would have been entitled to receive immediately before the merger, consolidation, or transfer (if the
Plan had then terminated). 

        (b)    Reduction
of Accrued Benefit.   No provision of the Plan shall be construed or applied so as to result in a decrease of
the accrued benefit (within the meaning of Code section 411(d)(6)) which any Participant had under the 1994 Prior Plan or under
any other plan merged, in whole or in part, with the Plan. 

27 

        Section
12.15    Fiduciaries.   Any person may serve in more than one fiduciary capacity
with respect to the Plan. Any fiduciary hereunder, as an individual, may employ such legal, actuarial, accounting or other
assistance as may be deemed necessary to fulfill such individual’s obligations hereunder. 

        Section
12.16    Unclaimed Benefits.   In the event any person who is entitled to benefits
hereunder cannot be located despite reasonable and diligent efforts to do so, then such person’s benefits shall be
automatically forfeited as of the last day of the Plan Year next following the year in which such benefits became payable and used
to defray Plan expenses; provided, however, in the event such person subsequently makes a claim for such forfeited benefits prior
to the termination of the Plan, such benefits shall be reinstated. 

        Section
12.17    Computational Errors.   In the event mathematical, accounting, or similar
errors are made in processing or paying a benefit under the Plan, the Plan Administrator may make such equitable adjustments as it
deems appropriate (which may be retroactive) to correct such errors. 

        Section
12.18    Communications.   The relevant Named Fiduciary, as to the function or
authority concerned, shall prescribe such forms of communication, including forms for benefit application and the like, with
respect to the Plan and Fund as it deems appropriate. Except as otherwise prescribed by such fiduciary or otherwise provided by
governing statute or regulation, any such communication and assent or consent thereto may be handled by electronic means.

        Section
12.19    Bonding.   Each fiduciary and each other person who handles assets of the
Plan shall be bonded to the extent and in the manner required by ERISA. 

        Section
12.20    Top-Heavy Rules.   Notwithstanding any provision to the contrary herein,
the Plan shall comply with the provisions of Code section 416. The Plan provisions reflecting such Code section are set forth in
Addendum II. 

ARTICLE XIII

TRANSITIONAL RULES AND AMENDMENTS TO

COMPLY WITH TAX AND PENSION LAW CHANGES 

        Section
13.1    Background.   The Plan is effective January 1, 2001 (i.e., the
“effective date”) and reflects the relevant requirements of the Internal Revenue Code of 1986, as amended through the
Community Renewal Tax Relief Act of 2000. Certain tax and pension law changes became effective for the 1994 Prior Plan before
January 1, 2001. Such changes were timely implemented in practice as part of the administration of such Prior Plan. In accordance
with the provisions of Code section 401(b), and Treasury Regulations and IRS rulings issued thereunder, such changes may be
formally adopted by the end of the applicable remedial amendment period, effective back to the date such changes became effective.
This Article amends the 1994 Prior Plan as necessary to reflect such changes, as well as other Plan changes not covered in Article
XIV with an effective date after January 1, 2001. 

        In accordance with applicable
Treasury Regulations, the retroactive adoption of these changes shall not void or adversely affect any act or omission in
administering a Prior Plan, which occurred prior to the time such regulations become fully effective, to the extent any such act
or omission constituted a reasonable interpretation of an applicable Code section. 

        Section
13.2    Rules of General
Application.   (a)  Employees.  Except as otherwise provided, this Plan shall apply
to each Employee who completes at least one (1) Hour of Service on or after the effective date, and any other Employee who
terminates employment on or after the effective date. 

        (b)    Other
Participants and Beneficiaries.   This Plan shall apply to individuals (and the Beneficiary of any such
individual) not described in Section 13.2(a) who were participants as of December 31, 2000 under the 1994 Prior Plan and who were
not then receiving benefits under or pursuant to such plan. Except as otherwise expressly provided in this Article, the rights and
entitlements of such individuals under the Plan shall be determined under the 1994 Prior Plan as in effect when such rights and
entitlements were finally established. 

        (c)    Account
Balances.   In no event shall a Participant’s Account balances as of the effective date be less, solely as
a result of the adoption of the Plan, than his or her Account balances as of December 31, 2000 under any Prior Plan. 

        Section
13.3    Transitional Rule to Reflect Change to Code Section
401(a)(9)   (a)  General.  The 1994 Prior Plan reflected the provisions of Code
section 401(a)(9) as in effect before the Small Business Jobs Protection Act of 1996 and in particular the definition of the
“required beginning date” as then in effect. As a result, under said Prior Plan, a Participant was entitled to commence
receiving retirement benefits by April 1 of the calendar year after he or she attained age seventy and one-half (70-1/2) even
though the Participant had not retired or otherwise terminated employment and, but for the provisions required to reflect Code
section 401(a)(9), payment of retirement benefits would not have commenced before the Participant retired or otherwise terminated
employment. This Plan reflects Code section 401(a)(9) as amended by such  

28 

Act. The 1994 Prior Plan is hereby amended effective January 1, 1997 to
incorporate by reference the provisions of the Plan reflecting Code section 401(a)(9), as amended by the Act. 

        (b)    Retention
of Old Rule.   In accordance with pronouncements issued by the Internal Revenue Service, the Code section
401(a)(9) provisions of the 1994 Prior Plan as in effect on December 31, 1996 shall continue to apply to a Participant who
attained age seventy and one-half (70-1/2) before January 1, 1997 except such a Participant who attained such age in 1996 and had
not retired or otherwise terminated employment as of December 31, 1996. 

        Section
13.4    USERRA Effective Date.   The provisions of Sections 2.4(c) and 12.2 are
effective with respect to any Participant under the 1994 Prior Plan who, following a period of military service, returned to
employment with an Employer on or after December 12, 1994. 

        Section
13.5    Compensation.   The definition of Compensation as provided in
Section 2.1(12) is effective for all purposes under the 1994 Prior Plan beginning January 1, 1998. 

        Section
13.6    Family Aggregation Rules.   The 1994 Prior Plan is hereby amended effective
as of January 1, 1997 to eliminate those sections which applied the family aggregation rules of Code section 401(d). 

        Section
13.7    Hardship Distribution Treated as Eligible Rollover Distribution.   Effective
January 1, 1999, no hardship distribution made under the 1994 Prior Plan shall be treated as an Eligible Rollover Distribution as
that term is defined in Section 7.5, and both the Plan and the 1994 Prior Plan have been operated in compliance with this change
since that date. 

        Section
13.8    Leased Employee.   The provisions of Section 2.4(d), which contains coverage
provisions applicable to Leased Employees under the Plan, are effective as of January 1, 1997, and the 1994 Prior Plan is hereby
so amended. 

        Section
13.9    Highly Compensated Employees.   The definition of Highly Compensated
Employee found in Section 2.1(27) is effective as of January 1, 1997, and the 1994 Prior Plan is hereby amended effective as of
such date to incorporate this definition. For purposes of applying this definition, the Company has made neither the top-paid
group election nor the calendar year data election as permitted under applicable Treasury Regulations and other guidance issued by
the Internal Revenue Service. 

        Section
13.10     Discrimination Testing.   The provisions of Article III relating to data
used to complete discrimination tests and the method for refunding excess contributions are effective as of January 1, 1997 and
Articles III and IV of the 1994 Prior Plan are hereby so amended. For purposes of completing such testing, the Company has elected
to use the current year testing method, and has operated the Plan in compliance with such testing method since the effective date
herein stated. 

        Section
13.11    Amendments Effective January 1, 2002.   (a)  Before-tax
Deposits.  Effective January 1, 2002, Section 3.2(a) is hereby amended to provide that each Participant may
designate a rate of Before-tax Deposits in percentages from one percent (1%) to twenty-five percent (25%) of Compensation, subject
to the other relevant provisions of Article III. 

        (b)    After-tax
Deposits.   Effective January 1, 2002, Section 3.3(a) is hereby amended to provide that each
Participant may designate a rate of After-tax Deposits in percentages from one percent (1%) to fifteen percent (15%) of
Compensation, subject to the other relevant provisions of Article III. 

        (c)    Suspension
of Deposits.   Effective January 1, 2002, the provisions of Sections 3.6 and 8.2(d) which require suspension of
a Participant’s Deposits when a hardship withdrawal pursuant to Section 8.2 is made shall not apply with respect to any
hardship withdrawal made on or after such date. 

        (d)    Dividends.   Effective
with respect to cash dividends declared on or after January 1, 2002, Section 7.3 is hereby amended to provide that dividends
payable on Company Stock allocated to the ESOP Fund shall be retained in such fund and used to purchase additional shares of
Company Stock; provided, however, each affected Participant may, upon Timely Notice, elect to directly receive payment of such
dividends in cash and, with Timely Notice, may elect to revoke a prior election to directly receive such dividends. Any such
election, regardless of when made, shall apply to all shares of Company Stock allocated to a Participant’s Account under the
ESOP Fund as of the relevant dividend record date established by the Company. 

        (e)    Definition
of Retirement.   Effective January 1, 2002, Section 2.1(42) is hereby deleted and the following substituted
therefor: 

	  	        (42)    “Retirement”
is an individual’s termination of employment from an Employer (other than by reason of death or Total and Permanent
Disability) on or after the attainment of age fifty-five (55). 

29 

        (f)    Hour of Service Equivalency.   Effective
January 1, 2002, Section 2.3 is hereby amended to provide that, in those cases where records are not kept or available, an
individual shall be credited with forty-five (45) Hours of Service for each week the individual must be credited with at least one
(1) Hour of Service. In the event a computation period for determining the completion of a Year of Eligibility Service includes
January 1, 2002, and an hour of service equivalency is used to determine whether an Employee has completed such a year of service,
the equivalency used shall be the one described in this paragraph (f) or the one in effect during 2001 (but not a combination of
such equivalencies), whichever is more beneficial to the Employee concerned under the circumstances. 

        (g)    Hardship
Withdrawals.   Effective with respect to hardship withdrawals made under Section 8.2 on or after June 1, 2001,
a hardship shall be deemed to exist if the distribution is on account of: 

	(i) 	  	Medical expenses incurred by the Participant, the
Participant’s Spouse, or any dependent of the Participant; 

	(ii) 	  	Purchase of a principal residence for use by the
Participant; 

	(iii) 	  	Payment of tuition for the next semester or quarter
of post-secondary education for the Participant or the Participant’s Spouse, children or other dependents; 

	(iv) 	  	The need to prevent eviction or foreclosure with
respect to the Participant’s principal residence; 

	(v) 	  	Payment of funeral expenses for a member of the
Participant’s immediate family; 

	(vi) 	  	Payment of legal expenses incurred by a Participant to obtain a divorce; 

	(vii) 	  	Payment to a Participant for replacement of an item
lost as a result of an uninsured property loss; 

	(viii) 	  	Payment of adoption expenses incurred by a Participant; or 

	(ix) 	  	Other events provided for in rulings, notices or
other documents published by the Commissioner of Internal Revenue. 

        (h)    Participant
Loans.   The Plan Administrator shall apply Treasury Regulations §1.72(p)-1 to all deemed distributions of
Participant loans on or after January 1, 2002. 

ARTICLE XIV

AMENDMENT OF PLAN FOR EGTRRA 

        Section
14.1    Introduction.   This Article XIV is adopted to reflect certain provisions of
the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), is intended as good faith compliance with the
requirements of EGTRRA and is to be construed in accordance with EGTRRA and guidance issued thereunder. To the extent inconsistent
with other Plan provisions, the provisions of this Article XIV shall supersede such provisions. 

        Section
14.2    Code Section 415 Limits.   (a)  General.  Except
to the extent allowed under Addendum I to the Plan and Code section 414(v), if applicable, effective January 1, 2002, the Annual
Additions that may be contributed or allocated to a Participant’s Account under the Plan for any Limitation Year shall not
exceed the lesser of: 

	(i) 	  	$40,000, adjusted as provided in Code section 415(d)
for increases in the cost-of-living, or 

	(ii) 	  	one hundred percent (100%) of the Participant’s
Limitation Compensation, within the meaning of Code section 415(c)(3), for such Limitation Year. 

Said compensation limit shall not apply to any contribution for medical
benefits after separation from service (within the meaning of Code sections 401(h) or 419A(f)(2)) which is otherwise treated as an
Annual Addition. 

        Section
14.3    Limit on Compensation.   Effective January 1, 2002, the Compensation of each
Participant taken into account in determining allocations for any Plan Year shall not exceed $200,000, adjusted as provided in
Code section 401(a)(17)(B) for cost-of-living increases. The cost-of-living adjustment in effect for a calendar year applies to
Compensation for the determination period that begins with or within such calendar year. 

        Section
14.4    Top-Heavy Rules.   (a)  General.  Effective
January 1, 2002, this Section shall apply for purposes of determining whether the Plan is a Top-Heavy Plan under Code section
416(g) and whether the Plan satisfies the minimum benefits requirements of Code section 416(c). This Section amends Addendum II of
the Plan.

30 

        (b)    Determination
of Top-Heavy Status.   (1)  Definition of Key Employee.  Key Employee means any
Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the Determination
Date was (i) an officer of the Employer having annual compensation greater than $130,000 (as adjusted under Code section 416(i)(1)
for Plan Years beginning after December 31, 2002), (ii) a five percent (5%) owner of the Employer, or (iii) a one percent (1%)
owner of the Employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation
within the meaning of Code section 415(c)(3). The determination of who is a Key Employee will be made in accordance with Code
section 416(i)(1) and the applicable regulations and other guidance issued thereunder. 

        (2)    Valuation
of Accrued Benefit under Defined Contribution Plan.   For purposes of determining either the present value of
an Employee’s accrued benefit in a Defined Benefit Plan or an Employee’s interest in a Defined Contribution Plan, the
present value of such accrued benefit, or the amount of such Employee’s account balances, as the case may be, shall be
increased by the distributions made with respect to the Employee under the Plan and any plan aggregated with the Plan under Code
section 416(g)(2) during the one (1) year period ending on the Determination Date. The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under Code
section 416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation from service, death, or disability,
this provision shall be applied by substituting “five (5) year period” for “one (1) year period.” For this
purpose, the accrued benefits and accounts of any individual who has not performed services for the Employer during the one (1)
year period ending on the Determination Date shall not be taken into account. 

        (3)    Minimum
Benefits.   Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum
contribution requirements of Code section 416(c)(2) and the Plan. Employer Matching Contributions used to satisfy the minimum
contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and
other requirements of Code section 401(m). 

        Section
14.5    Direct Rollover of Plan Distributions.   (a)  Eligible
Retirement Plan.  For purposes of Section 7.5, effective January 1, 2002, an Eligible Retirement Plan shall also
mean an annuity contract described in Code section 403(b) and an eligible plan under Code section 457(b) which is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such plan from the Plan. The definition of Eligible Retirement Plan
shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is the alternate payee
under a QDRO. 

        (b)    Treatment
of Hardship Distributions.   For purposes of said Section 7.5, any amount that is distributed on account of
hardship shall not be an Eligible Rollover Distribution and the Distributee may not elect to have any portion of such a
distribution paid directly to an Eligible Retirement Plan. 

        (c)    Rollover
of Voluntary After-Tax Distributions.   For purposes of said Section 7.5, a portion of a distribution shall not
fail to be an Eligible Rollover Distribution merely because the portion consists of voluntary after-tax contributions which are
not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity
described in Code section 408(a) or (b), or to a qualified defined contribution plan described in Code section 401(a) or 403(a)
that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution
which is includible in gross income and the portion of such distribution which is not so includible. 

        Section
14.6    Rollovers from Other Plans.   Beginning January 1, 2002, and subject to the
other provisions of Section 3.8, the Plan will accept rollover contributions and direct rollovers from (i) a qualified plan
described in Code sections 401(a) or 403(a), including after-tax employee contributions, (ii) an annuity contract described in
Code section 403(b), (iii) an eligible plan under Code section 457(b) which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of a state. The Plan will also accept a participant
rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Code section
408(a) or (b) that is eligible to be rolled over and would otherwise be includible in gross income. 

        Section
14.7    Rollovers Disregarded in Involuntary Cash-Outs.   For purposes of
Section 7.2(e), effective with respect to involuntary cash-outs made on or after January 1, 2002, the value of a
Participant’s Accounts shall be determined without regard to that portion of the Account balance attributable to a Rollover
received after December 31, 2001 (and earnings allocable thereto) within the meaning of Code sections 402(c), 403(a)(4),
403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). If the value of the Participant’s Accounts as so determined is $5,000 or less,
Plan provisions concerning distribution of total Account balances of $5,000 or less shall be applied. 

        Section
14.8    Repeal of Multiple Use Test.   Effective January 1, 2002, the multiple
use test described in Treasury Regulation §1.401(m)-2 and Article III shall cease to apply. 

        Section
14.9    Limits on Elective Deferrals.   (a)  General
Limit.  No participant shall be permitted to authorize elective deferrals under this Plan, or any other qualified
plan maintained by an Employer during any taxable year, in excess of the 

31 

dollar limitation contained in Code section 402(g) as in effect for such
taxable year, except to the extent permitted under paragraph (b) below and Code section 414(v), if applicable. 

        (b)    Catch-Up
Contributions.   Effective January 1, 2002, all employees who are eligible to authorize Before-tax Deposits
under the Plan and who have attained age fifty (50) before the close of the Plan Year shall be eligible to make catch-up
contributions of from one percent (1%) to ten percent (10%) of Compensation in accordance with, and subject to the limitations of,
Code section 414(v). Such catch-up contributions shall not be taken into account for purposes of the provisions of the Plan
implementing the required limitations of Code sections 402(g) and 415. The Plan shall not be treated as failing to satisfy such
provisions as implement the requirements of Code sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by
reason of the making of such catch-up contributions. 

        Section
14.10    Suspension from Participation Following Hardship Distribution.   A
Participant who, pursuant to Section 8.2, receives a distribution on account of hardship on or after January 1, 2002 shall be
prohibited from making Deposits under this and all other plans maintained by an Employer for six (6) months after receipt of the
distribution. 

        Section
14.11    Distribution Upon Severance From Employment.   Effective January 1, 2002, a
Participant’s Accounts attributable to Before-tax Deposits and Qualified Discretionary Contributions (or any other
contributions used to satisfy the 401(k) discrimination tests) and the earnings attributable to such Accounts shall, subject to
the other provisions of the Plan regarding distributions, be distributable on account of the Participant’s severance from
employment, regardless of whether such severance from employment occurred before or on or after such date. 

_________________  

        The undersigned, by authority
of the board of directors of Pentair, Inc., does hereby execute the foregoing document for and on behalf of Pentair, Inc.

PENTAIR, INC. 

	Dated: _________________________	 	By: _______________________________________	 
	 	Its Assistant Secretary	 

32 

SCHEDULE 1 

COMPENSATION 

	Items Included 	 	Items Excluded 	 
	 
	Base salary or wages before deferrals for:

•   401(k) plan before-tax employee contributions;

•   Section 125 plan (flexible benefit, cafeteria plan)

     pre-tax employee contributions; and

•   Section 132(f)(4) plan (transportation benefit plan)

     pre-tax employee contributions  		Cash payments made and property or rights in property other than cash granted under or pursuant to the Pentair, Inc. Omnibus Stock Incentive Plan 

Special awards under the Pentair, Inc. Management Incentive Plan 
	 
	Pentair, Inc. Employee Stock Purchase and Bonus Plan 
employer bonus contributions 

Pentair, Inc. Management Incentive Plan bonus 		Amounts contributed to (e.g., deferred salary) or received under or pursuant to non-qualified deferred compensation arrangements including, but not limited to the Pentair, Inc. Non-Qualified Deferred Compensation Plan (i.e., the Pentair, Inc. RSIP Annual bonuses Sidekick Plan)  
	Annual bonuses 		
	 		Hiring Bonus  
	Gain-sharing payments		
	 		Severance Pay  
	Profit-sharing payments		
	 		Moving expense reimbursements and related allowances  
	Sales commissions		
	 		Employee business and car expense reimbursements 
	Shift differential pay		
	 		Tuition reimbursement  
	Overtime pay		
	 		Adoption assistance payments  
	Vacation pay		
	 		Computer hardware and software purchase reimbursements  
	Holiday pay		
	 		Foreign duty pay enhancements  
	Sick leave pay		
	 		Non-taxable portion of Pentair, Inc. Perquisites Program  
	Bereavement pay		
	Jury duty pay		Except as expressly included in the column headed “Items Included,” all contributions (other than after-tax employee contributions) to and all benefits received under a tax-qualified plan  
	        Military pay 		
	 
	Short-term disability benefits		
	 
	Taxable cash portion of Pentair, Inc. Perquisites Program   

SCHEDULE 2 

EMPLOYEES NOT COVERED

BY THE PLAN AS OF JANUARY 1, 2001 

	Employer 	 	Excluded Employees 	 
	 
	Lincoln Industrial Corporation	 	Employees who are members of or represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, Unit Local No. 691 (“UAW”)	 
	 
	Electronic Enclosures, Inc.	 	Employees who are members of or represented by the Amalgamated Local 1612 International Union, United Automobile, Aircraft and Agricultural Implement Workers of American (“UAW”)	 

33 

ADDENDUM I

CODE SECTION 415 LIMITS  

        Section
1.1    General.   This Addendum describes the limits required under the Code on the
amount of Annual Additions that may be allocated to a Participant for a year. Notwithstanding any other Plan provision, in no
event shall a Participant receive or be entitled to receive an Annual Addition under the Plan in excess of such limits.

        The limits described herein
are solely intended to reflect the requirements of Code section 415. Therefore, except as expressly provided herein, this
Addendum shall not be construed or applied in such a manner as to limit Plan benefits to any extent not required under Code
section 415. 

        Except as otherwise
indicated, Section and other cites herein are to Sections of this Addendum. 

        Section
1.2    Definitions.   Unless the context clearly or necessarily indicates the
contrary, when capitalized the following words and phrases shall have the following meanings when used in this Addendum.

	(1) 	  	“Annual Additions” are all Deposits
and Employer Contributions that would be made on behalf of a Participant for a Limitation Year, but for the provisions of this
Addendum; provided, however, that for any Limitation Year in which no more than one-third of the Employer Contributions used to
repay an Exempt Loan is allocated to Highly Compensated Employees, the amount of such contributions applied to payment of interest
on the Exempt Loan shall not constitute an Annual Addition. 

	(2) 	  	“Combined Defined Benefit Plans”
are all Defined Benefit Plans maintained (or formerly maintained) by the Employer. 

	(3) 	  	“Combined Defined Contribution
Plans” are all Defined Contribution Plans maintained (or formerly maintained) by the Employer. 

	(4) 	  	“Employer” has the same meaning as
under Article II, except that such definition shall be applied by taking into account the provisions of Code section 415(h).

	(5) 	  	“Limitation Compensation” is all
remuneration described in Reg. § 1.415-2(d)(2) paid in a Limitation Year, and which is not described in
Reg. § 1.415-2(d)(3), except that Reg. § 1.415-2(d)(3) shall be applied by taking into account Code section
415(c)(3)(D) (i.e., under the Small Business Jobs Protection Act of 1996, and for limitation years beginning after 1997, section
415 compensation includes an employee’s pre-tax contributions under certain arrangements, including 401(k), transportation
fringe benefit and cafeteria plans). 

	(6) 	  	“Limitation Year” is the same
period as the Plan Year. 

        Section
1.3    Code Section 415(c) Limit.   (a)  General.  For
any Limitation Year, a Participant shall not receive or be entitled to receive an Annual Addition greater than (i) $30,000 or (ii)
twenty-five percent (25%) of his or her Limitation Compensation for such year, whichever is less. If the Annual Additions are
greater than such limits, then the Participant’s Annual Additions shall be automatically limited to an amount which is not in
excess of such limits. This shall be accomplished by first reducing the After-tax Deposits that would be otherwise made on behalf
of the Participant, and then to the extent necessary and in the order of, reducing the amounts that would be otherwise made on
behalf of the Participant for Before-tax Unmatched Deposits, Before-tax Matched Deposits, Qualified Discretionary Contributions,
Employer Matching Contributions (as reduced to take into account any reduction in Before-tax Matched Deposits), and Employer
Discretionary Contributions. 

        (b)    Adjustment
in Dollar Limit.   The dollar limit described in Section 1.3(a) (i.e., $30,000) shall be automatically
increased (as described in Code section 415(d)) to one-quarter of the dollar limit then in effect under Code section 415(b). Any
such adjustment to the dollar limit described in Section 1.3(a) shall be effective for the Limitation Year that ends in or with
the calendar year for which such adjustment is made. 

        (c)    Excess
Annual Additions.   If as a result of an error in estimating a Participant’s Limitation Compensation, or
such other facts and circumstances as may be prescribed by the Commissioner of the Internal Revenue Service, the Deposits or
Employer Contributions, or both, actually allocated on behalf of a Participant exceed the limits described in Section 1.3(a), such
excess, determined as described in Section 1.3(a), shall be eliminated if possible by a distribution of the Annual Additions
attributable to After-tax Deposits and earnings thereon and then, if necessary, used to reduce other Deposits and Employer
Contributions under the Plan (in accordance with the ordering rules described in Section 1.3(a)) for the next Limitation Year and
succeeding Limitation Years, as necessary, for such Participant, but only if the Participant is covered by the Plan in the 

34 

Limitation Year for which such excess arose. To the extent such excess
amounts are not so reduced, the Participant shall not be entitled to receive such excess. 

        If a Participant has such an
excess Annual Addition but is not covered by the Plan as of the end of the Limitation Year for which the excess arose or as of any
succeeding limitation year prior to the Limitation Year in which such excess is fully eliminated, then such excess shall be held
in a suspense account for that Limitation Year and allocated or reallocated in the next and succeeding Limitation Years to all
Participants then entitled to share in an Employer Discretionary Contribution, subject, however, to the limitations of this
Addendum. Amounts allocated to this suspense account shall not be credited with the income or loss of the Fund, and shall be used
to reduce the Employer’s Discretionary Contribution for the next Limitation Year and succeeding Limitation Year, as
necessary. If an amount remains in this suspense account by the time the Plan terminates and all Plan assets have been distributed
to Participant, then such amount shall be returned to the Employer. 

        (d)    Combined
Defined Contribution Plans.   This Section 1.3 shall be applied to a Participant’s aggregate annual
additions for a Limitation Year under all Combined Defined Contribution Plans. If such aggregate annual additions (as determined
before application of this Addendum) exceed the limits of Section 1.3(a), then the Participant’s annual additions shall be
first limited under such other plans as described therein, determined in order of the plan with the largest annual addition to the
plan with the smallest annual addition; and then, to the extent necessary, as described herein. 

        Section
1.4    Repeal of Combined Limitation.   Section 1.4 of Addendum I to the 1994 Prior
Plan contained such provisions as were necessary to reflect the combined limitation of Code section 415(e), which applied to limit
benefit accruals on behalf of an individual covered under both a Defined Benefit Plan and a Defined Contribution Plan maintained
by the same Employer. Due to the repeal of Code section 415(e) by the Small Business Jobs Protection Act of 1996, the 1994 Prior
Plan is hereby amended as of January 1, 2000, to eliminate Section 1.4 of Addendum I to said Prior Plan. This repeal shall apply
to only those individuals who earn additional benefits under the 1994 Prior Plan or the Plan by reason of having performed covered
service on or after January 1, 2000. 

        Section
1.5    Administrative Authority.   The Plan Administrator shall have broad authority
to coordinate with the administrator of other plans maintained by the Employer in relation to the limits imposed by this Addendum,
and to implement reductions of allocations and reallocations necessary to maintain all such plans in accordance with the
requirements of applicable law. 

35 

ADDENDUM II

TOP-HEAVY REQUIREMENTS  

        Section
1.1    General.   Notwithstanding any other Plan provision, this Addendum shall
apply for any Plan Year for which the Plan is top-heavy. The rules described herein are solely intended to reflect the
requirements of Code section 416. Therefore, the provisions of this Addendum shall not be construed or applied in such a manner as
to increase Plan benefits and rights thereto to any extent not required under Code section 416. 

        Except as otherwise
indicated, Section and other cites herein are to Sections of this Addendum. 

        Section
1.2    Definitions.   Unless the context clearly requires otherwise, when
capitalized the following words and phrases shall have the following meanings when used in this Addendum. 

	(1) 	  	“Determination Date” is the last day of the preceding Plan Year. 

	(2) 	  	“Key Employee” is any Employee or
former Employee, who at any time during the Plan Year or any of the four (4) preceding Plan Years is or was: 

	(i) 	  	an officer of the Employer having annual
compensation greater than fifty percent (50%) of the amount in effect under Code section 415(b)(1)(A) for any such Plan Year;

	(ii) 	  	one of the ten (10) Employees whose annual
compensation is more than the limitation in effect under Code section 415(c)(1)(A) and who owns both more than one-half percent
(1⁄2%) and the largest interest in the Employer by value: 

	(iii) 	  	a five percent (5%) owner, by value or voting power,
of any corporation or other trade or business which makes up the Employer; or 

	(iv) 	  	a one percent (1%) owner, by value or voting power,
of any corporation or other trade or business which makes up the Employer and whose annual compensation is more than $150,000.

	  	For purposes of this paragraph (2), annual compensation shall be
determined as described in Code section 414(q)(7) 

	  	For purposes of subparagraph (i) above, no more than fifty (50)
Employees or, if lesser, the greater of three (3) or ten percent (10) of Employees, shall be treated as officers. 

	  	For purposes of subparagraph (ii) above, if two (2) Employees have
the same interest in the Employer, the Employee having the greater annual compensation shall be treated as having a larger
interest in the Employer. 

	  	For purposes of subparagraphs (ii), (iii) and (iv) above,
ownership in the Employer shall be as determined under Code section 318, as modified by substituting “5 percent” for
“50 percent” wherever the latter appears in Code section 318(a)(2). 

	(3) 	  	“Minimum Top-Heavy Contribution” is
(i) the lesser of (a) three percent (3%) and (b) the highest Top-Heavy Contribution Percentage, multiplied by a Non-Key
Employee’s Top-Heavy Compensation, minus (ii) the Employer Contributions made on behalf of the Non-Key Employee for a Plan
year. 

	(4) 	  	“Non-Key Employee” is an Employee
who is not a Key Employee. 

	(5) 	  	“Permissive Aggregation Group” is
all Defined Contribution Plans or Defined Benefit Plans maintained by the Employer which are included in a Required Aggregation
Group, and any such plan or plans not included in a Required Aggregation Group if, after including such other plan or plans in the
Required Aggregation Group, the group as a whole satisfies the requirements of Code sections 401(a)(4) and 410. 

	(6) 	  	“Required Aggregation Group” is the
Plan and any other Defined Contribution Plan or Defined Benefit Plan maintained by the Employer in which a Key Employee is a
participant. It shall also include any such plan maintained by the Employer which enables a plan described in the first sentence
of this paragraph to meet the requirements of Code sections 401(a)(4) and 410. 

36 

	(7) 	  	“Top-Heavy Compensation” is an
Employee’s Limitation Compensation (as defined in Addendum I) for a Plan Year. 

	(8) 	  	“Top-Heavy Contribution Percentage”
is the percentage arrived at by dividing the aggregate amount of Before-tax Deposits and Employer Contributions for a Plan Year
made on behalf of a Key Employee by the Key Employee’s Top-Heavy Compensation for such year. 

	(9) 	  	“Top-Heavy Participant” is a
Non-Key Employee who is eligible to make Before-tax Deposits. 

	(10) 	  	“Top-Heavy Plan” is (i) a Defined
Contribution Plan or Defined Benefit Plan which is not included in a Required or Permissive Aggregation Group if such plan as of
the Determination Date exceeds the individual Top-Heavy Ratio or (ii) any such plan which is included in a Required or Permissive
Aggregation Group, if such group as of the Determination Date exceeds the group Top-Heavy Ratio. A plan included in a Permissive
Aggregation Group but not in a Required Aggregation Group shall not be a Top-Heavy Plan merely because the Top-Heavy Ratio for the
Permissive Aggregation Group is exceeded. 

	(11) 	  	“Top-Heavy Ratio” is the applicable
ratio described in Code section 416(g)(1)(A) or (g)(2)(B) depending, in each instance, on whether the plan is a Defined
Contribution or Defined Benefit Plan and on whether the plan is included in a Required or Permissive Aggregation Group.

	(12) 	  	“Valuing Date” is the last day of
the immediately preceding plan year in the case of a Defined Contribution Plan, and the last day of a plan year in the case of a
Defined Benefit Plan. 

        Section
1.3    Determination of Top-Heavy Status.   (a)  When Made and
Effect.  As of the Determination Date, the Plan Administrator shall determine whether the Plan is a Top-Heavy Plan
for the Plan Year beginning immediately after the Determination Date. In the event the Plan is a Top-Heavy Plan, Sections 1.4 and
1.5 shall apply for such Plan Year. 

        (b)    Valuation
of Accrued Benefit Under Defined Benefit Plan.   For purposes of determining the present value of the accrued
benefit of an Employee in a Defined Benefit Plan maintained by the Employer, the benefit shall be determined as of the Valuing
Date by using the actuarial factors used in determining a lump-sum actuarial equivalent and by assuming the Employee terminated
employment on such date. Such present value shall be increased by the aggregate distributions made with respect to all Employees
during the five (5) year period ending on the Determination Date, but only to the extent not otherwise reflected in their accrued
benefit as of the Valuing Date. For this purpose, the accrued benefit of a Non-Key Employee shall be determined in the manner
described at Code section 416(g)(4)(F). 

        (c)    Valuation
of Accrued Benefit Under Defined Contribution Plan.   For purposes of determining an Employee’s interest
in a Defined Contribution Plan, the Employee’s account balances in such plan shall be determined as of the Valuing Date
increased by any contributions made after the Valuing Date and on or before the Determination Date or, if the Defined Contribution
Plan is subject to the requirements of Code section 412, by any contributions required to be made after the Determination Date
with respect to the period ending on the Determination Date. The account balances so determined shall be increased by the
aggregate distributions made with respect to all Employees during the five (5) year period ending on the Determination Date, but
only to the extent not otherwise already reflected in their account balances. 

        (d)    Former
Key Employees.   If any individual is a Non-Key Employee with respect to any Plan Year but such individual was
a Key Employee in a prior Plan Year, any accrued benefit or account balance of such Employee, as the case may be, shall not be
taken into account in determining whether the Plan is a Top-Heavy Plan. 

        (e)    Certain
Former Employees.   If an individual has not performed services for the Employer at any time during the five
(5) year period ending on the Determination Date, then the accrued benefit or account balance of such individual, as the case may
be, shall not be taken into account in determining whether the Plan is a Top-Heavy Plan. 

        Section
1.4    Minimum Contribution.   (a)  General.  A Top-Heavy
Participant who is employed by the Employer on the last day of the Plan Year shall be entitled to the Minimum Top-Heavy
Contribution, and the applicable Participating Employer shall make a contribution in such amount on behalf of such Participant to
a separate Account (other than any Account under the ESOP Fund) under Article VI established by the Plan Administrator for this
purpose. 

        (b)    Exception.   A
Top-Heavy Participant shall not be eligible for a Minimum Top-Heavy Contribution if he or she receives the minimum top-heavy
benefit (described in Code section 415(c)(1)) for such Plan Year under a Defined Benefit Plan maintained by the Employer.

        Section
1.5    Vesting.   The vested portion of a Participant’s Accounts shall be (i)
the vested percentage set forth or otherwise described in Article VII or (ii) the vested percentage determined under the
following schedule, whichever is greater; 

37

provided, however, the following schedule shall apply only with respect to a
Participant who has an Hour of Service after a Determination Date for which the Plan is a Top-Heavy Plan. 

	Years of Service
		Vested Percentage

	Less than 2	 	  0%	 
	2	 	20%	 
	3	 	40%	 
	4	 	60%	 
	5	 	80%	 
	6 or more	 	100%  	 

        In the event the Plan becomes
a Top-Heavy Plan but is no longer a Top-Heavy Plan as of a subsequent Determination Date, any Participant who was covered by the
foregoing vesting schedule and who has three (3) or more years of service shall have his or her vested percentage (to the extent
dependent on years of service) determined under the forgoing schedule or the percentage or amount described in Article VII,
depending on which is more beneficial to him or her. 

        Section 1.6    Repeal
of Code Section 415(e) Dollar Limits.   Due to the repeal of Code section 415(e) by the Small Business Jobs
Protection Act of 1996, the 1994 Prior Plan is hereby amended as of January 1, 2000, to eliminate Section 1.6 of Addendum II to
said Prior Plan. This repeal shall apply to only those individuals who earn additional benefits under the Plan by reason of having
performed covered service on or after January 1, 2000. 

38 

ADDENDUM III

SPECIAL RULES 

        Section
1.1    Introduction.   Over time, the Company and the Employers have acquired and
disposed of various trades or businesses, and other plans have been merged into or assets of other plans have been transferred to
a Prior Plan or the Plan. As a result of these acquisitions, dispositions and plan mergers, special rules are needed to handle the
integration of new employee groups under, and the departure of such groups previously covered by, the Plan or a Prior Plan. In
general, this Addendum describes those special rules. 

        This Addendum shall also be
used to describe any Plan amendments of limited duration and application. 

        Section
1.2    Merger of Schroff, Inc. Profit-Sharing Savings Plan into the
Plan.   (a)  Background. Effective July 1, 1996, the Schroff, Inc. Profit-Sharing Savings Plan
(the “Schroff Plan”) was merged into the 1994 Prior Plan. Special rules applicable to this plan merger and the transfer
of assets from the Schroff Plan, to the extent not reflected in this Section 1.2, can be found in Section 1.2 of Addendum III to
the 1994 Prior Plan. 

        (b)    Vesting.   A
Schroff, Inc. Employee who completes an Hour of Service on or after July 1, 1996 shall be fully vested in the balance in his
or her Accounts, regardless of whether such Account balance was accrued under the Plan, the 1994 Prior Plan or the Schroff Plan.

        (c)    Distributions.   In
general, all distribution options and procedures contained in Section 7.2 shall be applicable to assets transferred to the
Trust from the Schroff Plan trust. With respect to the account balance allocated as of June 30, 1996 under the Schroff Plan and
with respect to a participant thereunder, however, such participant, if otherwise a Participant, shall also be able to elect to
receive a distribution of that balance, or such other non-ESOP Fund Account balances as the Plan Administrator may determine, in
periodic installments paid at least annually over a period equal to the shorter of ten (10) years or the period determined in
accordance with the minimum distribution rules of Code section 401(a)(9). 

        (d)    Code
Section 411(d)(6).   To the extent there are any benefits, rights or features applicable to amounts transferred
from the Schroff Plan which must be preserved pursuant to the provisions of Code section 411(d)(6), then all such benefits, rights
and features shall continue to apply and shall be available with respect to account balances as of June 30, 1996 under the Schroff
Plan. 

        Section
1.3    WEB Tool & Manufacturing, Inc. Employee 401(k)
Plan.   (a)  Background.  Effective April 2, 1999, WTM, Inc., a wholly owned
subsidiary of the Company, acquired all of the stock of WEB Tool & Manufacturing, Inc. (“WEB”), whose eligible
employees (the “WEB Employees”) were covered under the WEB Tool & Manufacturing, Inc. Employee 401(k) Plan
(“the WEB Plan”). Effective March 3, 2000, WEB became a Participating Employer under the Plan and all WEB Employees were
fully vested in their benefits accrued under the WEB Plan. Effective October 31, 2000, the WEB Plan was merged into the 1994 Prior
Plan. 

        (b)    WEB
Plan Merger.   Special rules applicable to this plan merger and the transfer of assets from the WEB Plan, to
the extent not reflected in this Section 1.3, can be found in Section 1.3 of Addendum III to the 1994 Prior Plan. 

        (c)    Participant
Loans.   Participant loans outstanding under the WEB Plan on March 3, 2000 remained outstanding, were
transferred into the 1994 Prior Plan and continue to be paid in accordance with the terms, payment schedule and interest rate
applicable to each such loan as in effect under the WEB Plan. Participant loans were not reamortized by reason of either the
decision of WEB to become a Participating Employer or the merger of the WEB Plan into the 1994 Plan. 

        (d)    Beneficiary
Designation.   Any beneficiary designation which may have been made by a WEB Employee as a participant in the
WEB Plan shall not apply for purposes of the Plan. Each WEB Employee who wishes to designate a Beneficiary must do so by
completing such Beneficiary designation form as the Plan Administrator may prescribe. The disposition of a WEB Employee’s
Account balances shall be governed by Plan Section 2.1(6). 

        (e)    In-Service
Withdrawals.   Participants who had a benefit under the WEB Plan shall retain the right to make withdrawals
upon the attainment of age fifty-nine and one-half (591⁄2) on the same basis as such withdrawals were available under the WEB
Plan with respect to account balances under the WEB Plan which were transferred to the Trust and with respect to the balances in
such individual’s non-ESOP Fund Accounts. Employees whose Date of Employment is on or after March 3, 2000 shall not be
eligible for such withdrawals. 

        (f)    Protected
Forms of Benefit.   To the extent there are any benefits, rights or features applicable to amounts transferred
by merger from the WEB Plan which are not otherwise discussed herein, and such benefit, right or feature must be preserved
pursuant to the provisions of Code sections 411(d)(6) and 417, then all such benefits, rights and features shall continue 

39 

to apply to the applicable Account balances of a WEB Plan participant. Any
such benefits, rights and features shall be available on the same terms and conditions as were applicable under the WEB Plan.

        Section
1.4    Electronic Enclosures, Inc. Capital Accumulation
Plan.   (a)  Background.  During 1998, the Company acquired all of the stock of
Walker Dickson, Inc., and thereby its wholly owned subsidiary, Electronic Enclosures, Inc. (“EE”). At the time of such
acquisition, eligible employees of EE (“EE Employees”) were covered under the Electronic Enclosures, Inc. Capital
Accumulation Plan (“the EE Plan”). Effective April 20, 2000, EE became a Participating Employer, and all EE Employees
were fully vested in the benefits accrued under the EE Plan. Effective October 31, 2000, the assets allocated to accounts of
non-union EE Employees were transferred to the 1994 Prior Plan. 

        (b)    EE
Plan Asset Transfer.   Special rules applicable to the transfer of assets from the EE Plan on behalf of the EE
Employees, to the extent not reflected in this Section 1.4, can be found in Section 1.4 of Addendum III to the 1994 Prior
Plan. 

        (c)    Participant
Loans.   Participant loans outstanding under the EE Plan on April 20, 2000 remained outstanding, were
transferred into the 1994 Prior Plan on November 1, 2000, and continue to be paid in accordance with the terms, payment schedule
and interest rate applicable to each such loan as in effect under the EE Plan. Loans were not reamortized by reason of either the
decision of EE to become a Participating Employer or the transfer of assets from the EE Plan into the 1994 Prior Plan. 

        (d)    Beneficiary
Designation.   Any beneficiary designation which may have been made by an EE Employee as a participant in the
EE Plan shall not apply for purposes of the Plan. Each EE Employee who wishes to have an effective Beneficiary designation on file
must complete such Beneficiary designation form as the Plan Administrator may prescribe. The disposition of an EE Employee’s
Account balances shall be governed by Plan Section 2.1(6). 

        (e)    In-Service
Withdrawals.   EE Employees who had an account balance under the EE Plan shall retain the right to make
withdrawals upon the attainment of age fifty-nine and one-half (591⁄2) on the same basis as such withdrawals were available
under the EE Plan with respect to such account balances and with respect to the balances in such individual’s non-ESOP Fund
Accounts. Employees whose Date of Employment is on or after April 20, 2000 shall not be eligible for such withdrawals. 

        (f)    Protected
Forms of Benefit.   To the extent there are any benefits, rights or features applicable to amounts transferred
from the EE Plan which are not otherwise discussed herein, and such benefit, right or feature must be preserved pursuant to the
provisions of Code sections 411(d)(6) and 417, then all such benefits, rights and features shall continue to apply to the
applicable Account balances of an EE Employee. Any such benefits, rights and features shall be available on the same terms and
conditions as were applicable under the EE Plan. 

        Section
1.5    Essef Corporation Employees’ Retirement
Plan.    (a)  Background.  Effective August 10, 1999 the Company acquired the
stock of Essef Corporation (“Essef”), whose eligible employees (“Essef Employee”) were covered under the Essef
Corporation Employees’ Retirement Plan (the “Essef Plan”). Effective December 31, 1999, the Essef Plan was merged
into the 1994 Prior Plan. On January 1, 2000, Essef became a Participating Employer. 

        (b)    Essef
Plan Merger.   Special rules applicable to the merger of the Essef Plan into the 1994 Prior Plan and the
transfer of assets from the Essef Plan, to the extent not reflected in this Section 1.5, can be found in Section 1.5 of
Addendum III to the 1994 Prior Plan. 

        (c)    Participant
Loans.   All participant loans outstanding under the Essef Plan on December 31, 1999 remained outstanding
and were transferred into the 1994 Prior Plan. The terms, payment schedule and interest rate applicable to each such loan, as in
effect under the Essef Plan, continue to apply under the Plan. Participant loans were not reamortized by reason of either the
decision of Essef to become a Participating Employer or the merger of the Essef Plan into the 1994 Prior Plan. 

        (d)    In-Service
Withdrawals.   Essef Employees who had an account balance under the Essef Plan shall continue to be eligible to
request up to two (2) in-service withdrawals each Plan Year upon the attainment of age fifty-nine and one-half (591⁄2) by
application of the terms and conditions applicable to such requests under the Essef Plan. Said withdrawals may be made from the
elective salary deferral contributions authorized under the Essef Plan and from the Before-tax Deposits authorized under the 1994
Prior Plan or the Plan, together with earnings accrued thereon. Employees whose Date of Employment is on or after January 1,
2000 shall not be eligible for such withdrawals. 

        (e)    Installment
Distributions.   Essef Employees who had an account balance under the Essef Plan remain eligible to elect
either a single sum or an installment distribution, over a period not to exceed the individual’s normal life expectancy, of
their Account balances, whether accrued under the 1994 Prior Plan or the Plan or the Essef Plan in accordance with the relevant
provisions of the Essef Plan. Employees whose Date of Employment is on or after January 1, 2000 shall not be eligible for
such distribution. 

40 

        (f)    Beneficiary
Designation.   Any beneficiary designation which may have been made by an Essef Employee as a participant in
the Essef Plan shall not apply for purposes of the Plan. Each Essef Employee who wishes to designate a Beneficiary must do so by
completing such Beneficiary designation form as the Plan Administrator may prescribe. The disposition of such Participant’s
Account balances shall be governed by Plan Section 2.1(6). 

        (g)    Protected
Forms of Benefit.   To the extent not otherwise discussed herein, any benefits, rights or features applicable
to amounts transferred into the Plan from the Essef Plan which must be preserved pursuant to the provisions of Code sections
411(d)(6) and 417 shall continue to apply to the applicable Account balances of an Essef Employee, and shall be available pursuant
to applicable provisions of the Essef Plan. 

        Section
1.6    Falcon Building Products, Inc. Employee Savings
Plan.   (a)  Background.  Effective September 3, 1999, the Company acquired all of
the stock of Falcon Manufacturing, Inc. (“Falcon”) and thereby its wholly owned subsidiary, DeVilbiss Air Power Company
(“DeVilbiss”). At the time of this acquisition, eligible DeVilbiss employees (the “DeVilbiss Employees”)
participated in the Falcon Building Products, Inc. Employee Savings Plan (the “Falcon Plan”). In accordance with the
terms of such acquisition, DeVilbiss Employees were fully vested in their account balances under the Falcon Plan, and service
completed by such DeVilbiss Employees became recognized as covered service for all purposes under the 1994 Prior Plan and the
Plan. Effective December 1, 1999, assets allocated to accounts of DeVilbiss Employees under the Falcon Plan were transferred to
the 1994 Prior Plan. 

        (b)    Asset
Transfer.   Special rules applicable to the transfer of assets from the Falcon Plan on behalf of the DeVilbiss
Employees, to the extent not reflected in this Section 1.6, can be found in Section 1.6 of Addendum III to the 1994 Prior Plan.

        (c)    Participant
Loans.   All participant loans outstanding under the Falcon Plan on September 2, 1999 remained outstanding and
were transferred into the 1994 Prior Plan on December 1, 1999. From and after September 3, 1999, however, all such loans
continued to be paid according to the original terms, payment schedule and interest rate applicable to each such loan as in effect
under the Falcon Plan. Participant loans were not reamortized by reason of either the decision of DeVilbiss to become a
Participating Employer or the transfer of assets into the 1994 Prior Plan. 

        (d)    Beneficiary
Designation.   Any beneficiary designation which may have been made by a DeVilbiss Employee as a participant in
the Falcon Plan shall not apply for purposes of the Plan. Each DeVilbiss Employee who wishes to have an effective Beneficiary
designation on file must complete such Beneficiary designation form as the Plan Administrator may prescribe. From and after
September 3, 1999, the disposition of such Participant’s Accounts under the Plan shall be governed by Plan Section 2.1(6).

        (e)    In-Service
Withdrawals.   DeVilbiss Employees who had an account balance under the Falcon Plan shall retain the right to
make withdrawals upon the attainment of age fifty-nine and one-half (591⁄2), subject to applicable Falcon Plan rules, with
respect to the balances in such individual’s non-ESOP Accounts accrued under the 1994 Prior Plan and the Plan, together with
any earnings allocated thereto. Employees whose Date of Employment is on or after September 3, 1999 shall not be eligible for such
distributions. 

        (f)    Protected
Forms of Benefit.   To the extent there are any benefits, rights or features applicable to amounts transferred
from the Falcon Plan which are not otherwise discussed herein, and such benefit, right or feature must be preserved pursuant to
the provisions of Code sections 411(d)(6) and 417, then all such benefits, rights and features shall continue to apply to the
applicable Account balances of a DeVilbiss Employee, and shall be governed by the applicable provisions or rules contained in the
Falcon Plan. 

        Section
1.7    U.S. Filter Corporation Retirement Savings
Plan.   (a)  Background.  Effective September 30, 2002, the Company acquired all of
the stock of Plymouth Products, Inc. (“PPI”). Prior to such acquisition, certain employees of PPI were participants, or
eligible to participate, in the U.S. Filter Corporation Retirement Savings Plan (the “USF Plan”). As a result of the
acquisition, eligible PPI employees ceased to actively participate in the USF Plan as of September 30, 2002. On January 1, 2003,
PPI became a Participating Employer under the Plan, and the assets allocated to the accounts of those PPI employees who continued
in employment with PPI after the acquisition were transferred from the USF Plan to the Plan. 

        (b)    Definitions.   For
purposes of this Section 1.7, the term “PPI Employee” shall mean an employee of PPI who, as of September 30, 2002, was
eligible to participate in the USF Plan. 

        (c)    Before-tax
Deposits.   Effective January 1, 2003 and during such time as any necessary blackout period remains in effect
to permit a reconciliation of account balances transferred from the USF Plan to the Plan, the salary deferral percentage rate as
authorized by a PPI Employee on September 30, 2002 shall remain in effect as the rate of Before-tax Deposits authorized by such
individual for purposes of Section 3.2(a), which rate may not be changed until the end of such blackout period. PPI Employees who
were not making salary deferral contributions under the USF Plan on September 30, 2002 shall not be allowed to begin making
Before-tax Deposits under the Plan until such time as any blackout period shall end. 

41 

        Employees whose Date of
Employment with PPI is on or after January 1, 2003 are unaffected by any blackout period and may authorize a rate of Before-tax
Deposits in accordance with Sections 3.1 and 3.2(a). 

        (d)    Before-tax
Matched Deposits.   Beginning January 1, 2003, PPI Employees whose most recent hire date with PPI is on or
before January 1, 2002 shall be credited with a Year of Eligibility Service and shall be eligible to have their Before-tax
Deposits matched by their Employer as otherwise provided in the Plan. 

        PPI Employees whose most
recent date of hire with PPI is after January 1, 2002 and before January 1, 2003 shall be eligible to have their Before-tax
Deposits matched as provided in Sections 3.2(b) and 4.1(b) if by December 31, 2003 they are credited with a Year of Eligibility
Service. For purposes of determining whether such a PPI Employee can be credited with a Year of Eligibility Service, Hours of
Service shall be determined by application of Section 2.3, and shall include all hours which could have been credited under said
Section 2.3 if the individual had been a Participant since his or her most recent date of hire with PPI. 

        Employees whose Date of
Employment with PPI is on or after January 1, 2003 shall become eligible to have their Before-tax Deposits matched as provided in
the Plan. 

        (e)    After-tax
Deposits.   Beginning January 1, 2003, or as soon thereafter as any blackout period necessary for purposes
of asset reconciliation shall end, PPI Employees shall be allowed to designate a rate of After-tax Deposits pursuant to the
provisions of Section 3.3. Employees whose Date of Employment with PPI is on or after January 1, 2003 are unaffected by
any such blackout period and may begin making After-tax Deposits as provided under the Plan. 

        (f)    Employer
Matching Contributions.   For purposes of determining the rate of Employer Matching Contributions to be applied
to the Before-tax Matched Deposits of PPI Employees, the Performance to Goal percentage applicable to PPI for the Plan Year
beginning January 1, 2003 shall be determined as provided in Section 4.1. 

        (g)    Employer
Discretionary Contributions.   For purposes of determining the eligibility of PPI Employees to receive an
allocation of Employer Discretionary Contributions under Section 4.2 for the 2003 Plan Year, the rules with respect to determining
credit for a Year of Eligibility Service contained in paragraph (d) of this Section 1.7 shall apply. 

        Employees whose Date of
Employment with PPI is on or after January 1, 2003 shall become eligible to receive an allocation of Employer Discretionary
Contributions as provided in Section 4.2. 

        (h)    Collective
Bargaining Employees.   Except as otherwise provided in Section 1.7(i), individuals whose employment at PPI is
subject to the terms of a collective bargaining agreement shall not be eligible to receive an allocation of Employer Discretionary
Contributions under the employee stock ownership component of the Plan. 

        (i)    Special
Contribution.   In recognition of the fact that PPI Employees were not covered under either the USF Plan or the
Plan for the period beginning October 1, 2002 and ending December 31, 2002, effective December 31, 2002, PPI shall make a special
Employer Discretionary Contribution under the employee stock ownership component of the Plan of one and one-half percent (1.5%) of
compensation paid to PPI Employees during the above defined period. Said special contribution shall be allocated to the Plan
accounts of all PPI Employees who were employed throughout the above described period, without regard to whether such employee
could then be credited with either a Year of Eligibility Service or a Year of Credited Service. 

        (j)    Vesting.   Effective
January 1, 2003, all PPI Employees are fully vested in the entire balance in all of his or her Plan Accounts, regardless of
whether such Account balance was accrued under the USF Plan or the Plan. 

        (k)    Participant
Loans.   All participant loans outstanding under the USF Plan on September 30, 2002 shall remain
outstanding and be transferred into the Plan. The payment schedule and interest rate applicable to each such loan, as in effect
under the USF Plan, shall continue to apply under the Plan. 

        (l)    Compensation.   Except
as otherwise provided in Section 1.7(i) with respect to services rendered after September 30, 2002, for all purposes under the
Plan, only such Compensation as is paid to PPI Employees on or after January 1, 2003 shall be taken into account. 

        (m)    In-Service
Withdrawals.   Subject to applicable provisions of the USF Plan, PPI Employees were allowed to request a
distribution of all or part of their vested accrued benefit upon attainment of age fifty-nine and one-half (59-1/2); however, the
Plan does not provide for such withdrawals. After the end of any necessary blackout period, PPI Employees who had an accrued
benefit under the USF Plan on September 30, 2002 shall retain the right to make these withdrawals, to the extent required under
Code section 411(d)(6), with respect to Employer Matching Contributions, rollover contributions, Before-tax Deposits, Before-tax
Matched Deposits, and After-tax Deposits accrued under the Plan, together with any earnings allocated 

42 

thereto. PPI Employees whose Date of Employment with PPI is on or after
January 1, 2003 shall not be eligible to request these in-service distributions. 

        (n)    Blackout
Period.   Beginning December 24, 2002, and until such time as there is a final reconciliation of assets
transferred from the USF Plan to the Plan, said assets shall be held in the Investment Fund under the Plan into which they were
deposited according to the fund mapping agreed to by the Trustee and Plan Administrator. Such blackout period shall apply to the
entire account balances of PPI Employees for such time as is necessary to complete the reconciliation of account balances and the
allocation of earnings accrued during the transition. During this blackout period, the account balances of PPI Employees shall be
unavailable for hardship withdrawals, in-service distributions, loans, distributions or exchanges into other available investment
options. 

        (o)    Beneficiary
Designation.   Any beneficiary designation which may have been made by a PPI Employee as a participant in the
USF Plan shall not apply to such individual’s Vested Accrued Benefit under the Plan. Each such individual who wishes to
designate a Beneficiary may do so by completing such Beneficiary designation form as the Plan Administrator may prescribe. Until
such time as a Beneficiary designation is on file with the Plan Administrator, from and after January 1, 2003, the disposition of
such Participant’s Vested Accrued Benefit under the Plan shall be governed by Section 2.1(8). 

        (p)    Protected
Forms of Benefit.   To the extent not otherwise discussed in this Section 1.7, any benefits, rights or
features applicable to amounts transferred into the Plan from the USF Plan which must be preserved pursuant to the provisions of
Code sections 411(d)(6) and 417 shall continue to apply to the Vested Accrued Benefit of a PPI Employee, and shall be available
pursuant to applicable provisions of the USF Plan. 

        (q)    Benefit
Reduction.   No benefit of a PPI Employee accrued as of September 30, 2002 shall be reduced solely due to the
transfer of assets from the USF Plan into the Plan. 

        (r)    Application
of Plan.   Following the completion of the asset transfer and the expiration of any necessary blackout period,
except as otherwise provided herein, the eligibility of a PPI Employee to elect Before-tax or After-tax Deposits or to receive an
allocation of Employer Matching Contributions or Employer Discretionary Contributions shall be governed by applicable Plan
provisions apart from this Section   1.7. 

        (s)    Employment
Transfers.   The provisions of this Section 1.7 shall not apply to a Participant who becomes an Employee
of PPI by transferring from employment with an Employer other than PPI. 

        Section
1.8    Oldham Saw, Inc. 401(k)
Plan.   (a)  Background.  Effective October 1, 2002, the Company acquired all of the
stock of Oldham Saw, Inc. (“Oldham”), whose eligible employees, together with the eligible employees of Woodworkers
Choice, Inc. (“Woodworkers”), were covered under the Oldham Saw, Inc. 401(k) Plan (the “Oldham Plan”).
Effective December 23, 2003, the Oldham Plan was frozen and all Oldham Participants were fully vested in their accrued benefit
under the Oldham Plan. Effective January 30, 2004, the Oldham Plan was merged into the Plan. Effective January 5, 2004, Oldham
became a Participating Employer under the Plan. 

        (b)    Definition.   For
purposes of this Section 1.8, the term “Oldham Participant” shall mean an employee of Oldham or of Woodworkers who, as
of January 4, 2004, was eligible to participate in the Oldham Plan and had not separated from employment with Oldham or
Woodworkers. 

        (c)    Before-tax
Deposits.   Each Oldham Participant who, as of January 5, 2004, meets the requirements under the Plan to
participate and designate a rate of Before-tax Deposits, as stated in Plan Sections 3.1 and 3.2(a), shall become a Participant and
be allowed to authorize Before-tax Deposits under the Plan by completing such forms or other documents as the Plan Administrator
may prescribe. Any salary deferral percentage contributions authorized by such individuals under the Oldham Plan shall not remain
in effect for purposes of the Plan. 

        Each Employee whose Date of
Employment with Oldham or Woodworkers is on or after January 5, 2004 shall become eligible to authorize Before-tax Deposits in
accordance with Plan Sections 3.1 and 3.2(a). 

        (d)    Before-tax
Matched Deposits.   Beginning January 5, 2004, Oldham Participants whose most recent date of hire with Oldham
or Woodworkers is on or before January 5, 2003 shall be credited with both a Year of Eligibility Service and a Year of Credited
Service and shall be eligible to have Before-tax Deposits matched by their Employer as provided in Plan Sections 3.2(b) and
4.1(b). 

        Oldham Participants whose
most recent date of hire with Oldham or Woodworkers is after January 5, 2003 and before January 5, 2004 shall be eligible to have
Before-tax Deposits matched by their Employer as provided in Plan Sections 3.2(b) and 4.1(b) if, as of December 31, 2004, such
individual is credited with a Year of Eligibility Service and a Year of Credited Service. For purposes of determining whether such
an Oldham Participant is credited with a Year of Eligibility Service and a Year of 

43 

Credited Service, Hours of Service shall be determined by application of Plan
Section 2.3, and by assuming such individual had been a Participant during the entire 2004 Plan Year. 

        Employees whose Date of
Employment with Oldham or Woodworkers is on or after January 5, 2004 shall become eligible to have Before-tax Deposits matched by
their Employer as provided in Plan Section 3.2(b) and 4.1(b). 

        (e)    After-tax
Deposits.   Beginning January 5, 2004, Oldham Participants shall be allowed to designate a rate of After-tax
Deposits pursuant to the provisions of Plan Section 3.3. Employees whose Date of Employment with Oldham or Woodworkers is on or
after January 5, 2004 shall be allowed to begin making After-tax Deposits under the Plan as provided in Section 3.3. 

        (f)    Employer
Matching Contributions.   The rate of Employer Matching Contributions to be applied to the Before-tax Matched
Deposits of Oldham Participants for the period beginning January 5, 2004 and ending December 31, 2004 shall be
determined as provided in Plan Section 4.1. 

        (g)    Employer
Discretionary Contributions.   Beginning January 5, 2004, Oldham Participants shall become eligible to receive
allocations of Employer Discretionary Contributions under the Plan. For purposes of determining eligibility to receive an
allocation of Employer Discretionary Contributions for the 2004 Plan Year, the same rules as are used for purposes of the above
Section 1.3(d) shall be applied. 

        Employees whose Date of
Employment with Oldham or Woodworkers is on or after January 5, 2004 shall become eligible to receive an allocation of Employer
Discretionary Contributions as provided in Plan Section 4.2 

        (h)    Participant
Loans.   Participant loans outstanding under the Oldham Plan on January 5, 2004 shall remain outstanding and be
transferred into the Plan on January 30, 2004. From and after January 5, 2004, however, all such loans shall continue to be paid
according to their original terms and conditions, and the payment schedule and interest rate applicable to each such loan as in
effect under the Oldham Plan shall continue to apply under the Plan. Loans shall not be reamortized by reason of either the
decision of Oldham to become a Participating Employer under the Plan or the merger of the Oldham Plan into the Plan. 

        (i)    Compensation.   Only
such Compensation as is paid to Oldham Participants on or after January 5, 2004 shall be taken into account for purposes of the
Plan. 

        (j)    Beneficiary
Designation.   Any beneficiary designation which may have been made by an Oldham Participant as a participant
in the Oldham Plan shall not apply to such individual’s vested benefit under the Plan. Each such individual who wishes to
designate a Beneficiary may do so by completing such Beneficiary designation form as the Plan Administrator may prescribe. Until
such time as a Beneficiary designation form is on file with the Plan Administrator, from and after January 5, 2004, the
disposition of an Oldham Participant’s vested benefit under the Plan shall be governed by Plan Section 2.1(8). 

        Effective January 30, 2004,
the benefits of an Oldham Participant accrued under the Oldham Plan shall be considered part of such individual’s vested
Account balance under the Plan and shall be subject to the Beneficiary designation, if any, then on file with the Plan
Administrator, or to Plan Section 2.1(8) if no such designation is on file with the Plan Administrator. 

        (k)    Blackout
Period.   Beginning January 24, 2004, and until such time as there is a final reconciliation of assets
transferred from the Oldham Plan, said assets shall be held in the Investment Fund under the Plan into which they were deposited
according to the fund mapping agreed to by the Trustee and Plan Administrator. Such blackout period shall apply to the entire
account balance of each Oldham Participant accrued under the Oldham Plan for such time as is necessary to complete the
reconciliation and allocation of earnings during the transition. In addition, a short blackout period shall apply to the entire
Account balance of an Oldham Participant to permit a final verification of each such individual’s combined vested Account
balance. During such time as any blackout period is in effect, an Oldham Participant’s Account balance shall be unavailable
for hardship withdrawals, in-service distributions, loans, distributions or exchanges into other available investment options.

        (l)    In-Service
Withdrawals.   Subject to applicable provisions of the Oldham Plan, Oldham Participants were allowed to request
a distribution from their accounts upon attainment of age fifty-nine and one-half (59-1/2); however, the Plan does not provide for
such withdrawals. After the end of any applicable blackout period, Oldham Participants who, as of January 5, 2004, had accrued a
benefit under the Oldham Plan shall retain the right to make these withdrawals on the same basis as such withdrawals were
available under the Oldham Plan with respect to all assets accrued under the Oldham Plan prior to January 5, 2004 and with respect
to rollover contributions, Before-tax Deposits, Before-tax Matched Deposits and Employer Matching Contributions accrued under the
Plan on or after January 5, 2004, together with any earnings allocated thereto. Employees whose Date of Employment with Oldham or
Woodworkers is on or after January 5, 2004 shall not be eligible to request these in-service withdrawals. 

        (m)    Protected
Forms of Benefit.   To the extent there are any benefits, rights or features applicable to amounts transferred
by merger to the Plan from the Oldham Plan which are not otherwise discussed in this Section 1.8, and such benefit, 

44 

right or feature must be preserved pursuant to the provisions of Code
sections 411(d)(6) and 417, then all such benefits, rights and features shall continue to apply to the vested Account balance of
an Oldham Participant. Any such benefits, rights and features shall be available on the same terms and conditions as were
applicable under the Oldham Plan. 

        (n)    Benefit
Reduction.   No benefit of an Oldham Participant accrued as of January 29, 2004 under the Oldham Plan shall be
reduced solely due to the merger of the Oldham Plan into the Plan, and the benefit an Oldham Participant is entitled to receive
immediately after the merger shall be equal to the benefit such participant was entitled to receive immediately prior to the
merger, if the Oldham Plan had then terminated. 

        (o)    Application
of Plan.   Following the completion of the plan merger and the expiration of any necessary blackout period,
except as otherwise provided herein, the eligibility of an Oldham Participant to elect Before-tax or After-tax Deposits or to
receive an allocation of Employer Matching Contributions or Employer Discretionary Contributions shall be governed by applicable
Plan provisions, apart from this Section 1.8. 

        (p)    Employment
Transfers.   The provisions of this Section 1.8 shall not apply to a Participant who becomes an Employee of
Oldham or Woodworkers after having been an Employee of an Employer other than Oldham or Woodworkers. 

        Section
1.9    U.S. Filter Corporation Retirement Savings
Plan.   (a)  Background.  Effective December 31, 2003, the Company acquired all of
the stock of Everpure, Inc. (“Everpure”). Prior to such acquisition, certain employees of Everpure were participants, or
eligible to participate, in the U.S. Filter Corporation Retirement Savings Plan (the “USF Plan”). As a result of the
acquisition, eligible Everpure employees ceased to actively participate in the USF Plan as of December 31, 2003. On March 1, 2004,
Everpure became a Participating Employer under the Plan, and the assets allocated to the accounts of those Everpure employees who
continued in employment with Everpure after the acquisition were transferred from the USF Plan to the Plan. 

        (b)    Definitions.   For
purposes of this Section 1.9, the term “Everpure Employee” shall mean an employee of Everpure who, as of December 31,
2003, was eligible to participate in the USF Plan. 

        (c)    Before-tax
Deposits.   Effective March 1, 2004 and during such time as any necessary blackout period remains in effect to
permit a reconciliation of account balances transferred from the USF Plan to the Plan, the salary deferral percentage rate as
authorized by an Everpure Employee on December 31, 2003 shall remain in effect as the rate of Before-tax Deposits authorized by
such individual for purposes of Section 3.2(a), which rate may not be changed until the end of such blackout period. Everpure
Employees who were not making salary deferral contributions under the USF Plan on December 31, 2003 shall not be allowed to begin
making Before-tax Deposits under the Plan until such time as any blackout period shall end. 

        Employees whose Date of
Employment with Everpure is on or after January 1, 2004 are unaffected by any blackout period and, beginning March 1, 2004, may
authorize a rate of Before-tax Deposits in accordance with Sections 3.1 and 3.2(a). 

        (d)    Before-tax
Matched Deposits.   Beginning March 1, 2004, Everpure Employees whose most recent hire date with Everpure is on
or before March 1, 2003 shall be credited with a Year of Eligibility Service and shall be eligible to have their Before-tax
Deposits matched by their Employer as otherwise provided in the Plan. 

        Everpure Employees whose most
recent date of hire with Everpure is after March 1, 2003 and before March 1, 2004 shall be eligible to have their Before-tax
Deposits matched as provided in Sections 3.2(b) and 4.1(b) if by December 31, 2004 they are credited with a Year of Eligibility
Service. For purposes of determining whether such an Everpure Employee can be credited with a Year of Eligibility Service, Hours
of Service shall be determined by application of Section 2.3, and shall include all hours which could have been credited under
said Section 2.3 if the individual had been a Participant since his or her most recent date of hire with Everpure. 

        Employees whose Date of
Employment with Everpure is on or after March 1, 2004 shall become eligible to have their Before-tax Deposits matched as provided
in the Plan. 

        (e)    After-tax
Deposits.   Beginning March 1, 2004, or as soon thereafter as any blackout period necessary for purposes of
asset reconciliation shall end, Everpure Employees shall be allowed to designate a rate of After-tax Deposits pursuant to the
provisions of Section 3.3. Employees whose Date of Employment with Everpure is on or after March 1, 2004 are unaffected by any
such blackout period and may begin making After-tax Deposits as provided under the Plan. 

        (f)    Employer
Matching Contributions.   For purposes of determining the rate of Employer Matching Contributions to be applied
to the Before-tax Matched Deposits of Everpure Employees, the Performance to Goal percentage applicable to Everpure for the Plan
Year beginning January 1, 2004 shall be determined as provided in Section 4.1. 

45 

        (g)    Employer
Discretionary Contributions.   For purposes of deter-mining the eligibility of Everpure Employees to receive an
allocation of Employer Discretionary Contributions under Section 4.2 for the 2004 Plan Year, the rules with respect to determining
credit for a Year of Eligibility Service contained in paragraph (d) of this Section 1.9 shall apply. 

        Employees whose Date of
Employment with Everpure is on or after March 1, 2004 shall become eligible to receive an allocation of Employer Discretionary
Contributions as provided in Section 4.2. 

        (h)    Vesting.   Effective
March 1, 2004, all Everpure Employees are fully vested in the entire balance in all of their Plan Accounts, regardless of whether
such Account balances were accrued under the USF Plan or the Plan. 

        (i)    Participant
Loans.   All participant loans outstanding under the USF Plan on December 31, 2003 shall remain outstanding and
be transferred into the Plan. The payment schedule and interest rate applicable to each such loan, as in effect under the USF
Plan, shall continue to apply under the Plan. 

        (j)    Compensation.   For
all purposes under the Plan, only such Compensation as is paid to Everpure Employees on or after March 1, 2004 shall be taken into
account. 

        (k)    In-Service
Withdrawals.   Subject to applicable provisions of the USF Plan, Everpure Employees were allowed to request a
distribution of all or part of their vested accrued benefit upon attainment of age fifty-nine and one-half (59-1/2); however, the
Plan does not provide for such withdrawals. After the end of any necessary blackout period, Everpure Employees who had an accrued
benefit under the USF Plan on December 31, 2004 shall retain the right to make these withdrawals, to the extent required under
Code section 411(d)(6), with respect to Employer Matching Contributions, rollover contributions, Before-tax Deposits, Before-tax
Matched Deposits, and After-tax Deposits accrued under the Plan, together with any earnings allocated thereto. Everpure Employees
whose Date of Employment with Everpure is on or after January 1, 2004 shall not be eligible to request these in-service
distributions. 

        (l)    Blackout
Period.   Beginning March 26, 2004, and until such time as there is a final reconciliation of assets
transferred from the USF Plan to the Plan, said assets shall be held in the Investment Fund under the Plan into which they were
deposited according to the fund mapping agreed to by the Trustee and Plan Administrator. Such blackout period shall apply to the
entire Account balances of Everpure Employees for such time as is necessary to complete the reconciliation of Account balances and
the allocation of earnings accrued during the transition. During this blackout period, the Account balances of Everpure Employees
shall be unavailable for hardship withdrawals, in-service distributions, loans, distributions or exchanges into other available
investment options. 

        (m)    Beneficiary
Designation.   Any beneficiary designation which may have been made by an Everpure Employee as a participant in
the USF Plan shall not apply to such individual’s vested Account balance under the Plan. Each such individual who wishes to
designate a Beneficiary may do so by completing such Beneficiary designation form as the Plan Administrator may prescribe. Until
such time as a Beneficiary designation is on file with the Plan Administrator, from and after March 1, 2004, the disposition of
such Participant’s vested Account balance under the Plan shall be governed by Section 2.1(8). 

        (n)    Protected
Forms of Benefit.   To the extent not otherwise discussed in this Section 1.9, any benefits, rights or
features applicable to amounts transferred into the Plan from the USF Plan which must be preserved pursuant to the provisions of
Code sections 411(d)(6) and 417 shall continue to apply to the vested Account balance of an Everpure Employee, and shall be
available pursuant to applicable provisions of the USF Plan. 

        (o)    Benefit
Reduction.   No benefit of an Everpure Employee accrued as of December 31, 2003 shall be reduced solely due to
the transfer of assets from the USF Plan into the Plan. 

        (p)    Application
of Plan.   Following the completion of the asset transfer and the expiration of any necessary blackout period,
except as otherwise provided herein, the eligibility of an Everpure Employee to elect Before-tax or After-tax Deposits or to
receive an allocation of Employer Matching Contributions or Employer Discretionary Contributions shall be governed by applicable
Plan provisions apart from this Section 1.9. 

        (q)    Employment
Transfers.   The provisions of this Section 1.9 shall not apply to a Participant who becomes an Employee
of Everpure by transferring from employment with an Employer other than Everpure. 

46 

Attachment 1 

SUPPLEMENTAL AMENDMENTS 

2004 Amendment: 

RESOLUTIONS OF THE COMPENSATION COMMITTEE

OF THE BOARD OF DIRECTORS OF

PENTAIR, INC. 

WHEREAS, Pentair maintains the Pentair, Inc. Retirement Savings and Stock
Incentive Plan (the “RSIP”) for the benefit of its eligible employees; and 

WHEREAS, RSIP includes both a 401(k) component and an Employee Stock
Ownership Plan component (the “ESOP”), which is designed to invest primarily in the common stock of Pentair; and

WHEREAS, Pentair wishes to change the provisions of the ESOP so that all
individuals with an account balance under the ESOP may elect to fully diversify their ESOP account balances into the investment
options then available under the 401(k) component of RSIP, subject to such rules and procedures as may be established for this
purpose; 

NOW, THEREFORE, BE IT 

RESOLVED, that effective on or before June 30, 2005, all ESOP participants in
RSIP, regardless of whether such participant is an active participant in RSIP, together with the beneficiaries and alternate
payees of such participants, may elect, subject to such policies and procedures as may be duly established, to invest up to 100%
of the cash proceeds from the sale of the Pentair stock allocated to their ESOP accounts in any of the investment options then
offered under the 401(k) component of RSIP; and be it further 

RESOLVED, that, except as may otherwise be required by applicable law, once
an ESOP participant makes an election to so diversify ESOP accounts, such a participant cannot thereafter elect to return said
funds into his or her ESOP accounts; and be it further 

RESOLVED, that, subject to applicable provisions and reporting requirements
of federal tax and securities laws, the Senior Vice-President of Human Resources and/or the Vice-President, Treasury and Tax, or
the delegate of either of them, be and hereby are authorized to take all such actions and to sign all such documents as may be
necessary to implement the amendments to the ESOP component of RSIP as herein described. 

2005 Amendment: 

RESOLUTIONS OF THE COMPENSATION COMMITTEE

OF THE BOARD OF DIRECTORS OF

PENTAIR, INC. 

WHEREAS, Pentair, Inc. (“Pentair”) maintains the Pentair, Inc.
Retirement Savings and Stock Incentive Plan (“RSIP”) for the benefit of its eligible employees; and 

WHEREAS, as summarized in an attachment hereto, Pentair wishes to amend RSIP
effective for the 2005 plan year to change the eligibility rules for receipt of an allocation of matching and ESOP contributions,
to implement a fixed rate matching contribution formula, to institute an automatic enrollment feature for new hires and to permit
active participants to elect certain in-service distributions upon attainment of age 591⁄2; 

NOW, THEREFORE, BE IT RESOLVED, that effective for the 2005 plan year, the
performance to goal matching contribution formula shall be eliminated and replaced with a fixed, non-performance based rate
matching contribution formula of 50% of the first 5% of an eligible participant’s before-tax contributions; and be it further

RESOLVED, that effective for the 2005 plan year, participants who authorize
before-tax deposits shall be eligible to receive a matching contribution without regard to their length of service or hours worked
during a plan year; and be it further 

RESOLVED, that effective for the 2005 plan year, plan provisions shall be
eliminated which require a participant to complete a specific number of hours of service in a year (but not the year of service
required to establish initial eligibility) to receive an allocation of the employer discretionary contribution under the ESOP; and
be it further 

47 

RESOLVED, that effective as soon as administratively feasible after December
31, 2004, participants upon attainment of age 591⁄2 shall be allowed, subject to administrative rules, to request a
distribution of before-tax deposits and matching contributions made on their behalf under the 401(k) component of RSIP, together
with earnings or losses credited thereto, even though such participants may not then have separated from service with any or all
participating employers under RSIP; and be it further 

RESOLVED, that effective as soon as administratively feasible after December
31, 2004, an automatic enrollment feature shall be added whereby 3% of a participant’s covered compensation, or such other
percentage of covered compensation as management deems appropriate, shall be deducted and contributed as a before-tax deposit
unless the participant elects otherwise, which feature shall be applied to eligible employees hired after the automatic enrollment
feature is implemented; and be it further 

RESOLVED, that the Senior Vice President of Human Resources, or his delegate,
be and hereby is authorized to take all such actions and to sign all documents or plan amendments as may be necessary or required
to implement the foregoing resolutions. 

48Exhibit 10-1

                        FORM OF INDEMNIFICATION AGREEMENT

     INDEMNIFICATION AGREEMENT (this "Agreement"), made as of this day of _____,
2005, by and between The Goldfield Corporation, a Delaware corporation (the
"Company"), and ___________ (the "Indemnitee"), an Agent (as defined below) of
the Company.

                                    RECITALS

     A. The Company seeks to attract and retain competent and experienced
persons to serve as directors and officers and wishes to protect such
individuals by providing comprehensive liability insurance and indemnification,
due to exposure to litigation costs and risks resulting from their service to
the Company;

     B. The statutes and judicial decisions regarding the duties of directors
and officers are often difficult to apply, ambiguous, or conflicting, and
therefore fail to provide such directors and officers with adequate, reliable
knowledge of legal risks to which they are exposed or information regarding the
proper course of action to take;

     C. Plaintiffs may seek damages in amounts which, coupled with the costs of
litigation (whether or not the case is meritorious), cause the defense and/or
settlement of such litigation to exceed the personal resources of officers and
directors;

     D. The Company believes that it is unfair for its directors and officers to
assume the risk of large judgments and other expenses which may occur in cases
in which the directors or officers received no personal profit and in cases
where the directors or officers were not culpable;

     E. The Company recognizes that the issues in controversy in litigation
against a director or officer of a corporation such as the Company are often
related to the knowledge, motives and intent of such directors or officers, that
he is usually the only witness with knowledge of the essential facts and
exculpating circumstances regarding such matters and that the long period of
time which usually elapses before the trial or other disposition of such
litigation often extends beyond the normal time that the director or officer can
reasonably recall such matters; and may extend beyond the normal time for
retirement for such director or officer with the result that he, after
retirement or in the event of his death, his spouse, heirs, executors or
administrators, may be faced with limited ability and undue hardship in
maintaining an adequate defense, which may discourage such a director or officer
from serving in that position;

     F. Based upon their experience as business managers, the Board of Directors
of the Company (the "Board") has concluded that, to retain and attract talented
and experienced individuals to serve as directors and officers of the Company
and to encourage such individuals to take the business risks necessary for the
success of the Company, it is necessary for the Company to contractually
indemnify its directors and officers, and to assume for itself maximum liability
for expenses and damages in connection with claims against such directors and
officers in connection with their service to the Company, and has further
concluded that the failure to provide such contractual indemnification could be
detrimental to the Company and the

<PAGE>

Company's stockholders;

     G. Section 145 of the General Corporation Law of Delaware, under which the
Company is organized ("Section 145") empowers the Compay to indemnify its
directors, officers, employees by agreement and to indemnify persons who serve,
at the request of the Company, as the directors, officers, employees or
directors of other corporations or enterprises, and expressly provides that the
indemnification provided by Section 145 is not exclusive;

     H. The Company, after reasonable investigation prior to the date hereof,
has determined that it is advisable to supplement the existing directors and
officers' liability insurance coverage as of the date hereof by adopting this
Agreement;

     I. The Company desires and has requested the Indemnitee to serve or
continue to serve as an Agent of the Company free from undue concern for claims
for damages arising out of or related to such services to the Company; and

     J. The Indemnitee is willing to serve, or to continue to serve, the
Company, provided that he is furnished the indemnity provided for herein.

1.   Definitions. As used in this Agreement:

     (a)  The terms "Affiliate" and "Associate" shall have the respective
          meanings ascribed to such terms in Rule 12b-2 of the General Rules and
          Regulations under the Securities Exchange Act of 1934, as amended (the
          "Act"), as in effect on the date of this Agreement.

     (b)  The term "Agent" for the purposes of this Agreement, "agent" of the
          Company means any person who is or was a director, officer, employee
          or other agent of the Company; or is or was serving at the request of,
          for the convenience of, or to represent the interests of the Company
          or a subsidiary of the Company as a director, officer, employee or
          agent of another foreign or domestic corporation, partnership, joint
          venture, trust or other enterprise; or was a director, officer,
          employee or agent of a foreign or domestic corporation which was a
          predecessor corporation of the Company or a subsidiary of the Company,
          or was a director, officer, employee or agent of another enterprise at
          the request of, for the convenience of, or to represent the interests
          of such predecessor corporation.

     (c)  A Person shall be deemed the "Beneficial Owner" of and shall be deemed
          to beneficially own, any securities:

               i.   which such Person or any of such Person's Affiliates or
                    Associates, directly or indirectly, has the right or
                    obligation to acquire (whether such right is exercisable
                    immediately or only after the passage of time) pursuant to
                    any agreement, arrangement or understanding (whether or not
                    in writing) or upon the exercise of conversion rights,
                    exchange rights, rights warrants or options, or otherwise;
                    provided, however, that a person shall not be deemed the
                    "Beneficial Owner" of or to "beneficially own" securities

                                        2

<PAGE>

                    tendered pursuant to a tender or exchange offer made by such
                    Person or any of such Person's Affiliates or Associates
                    until such tendered securities are accepted for purchase or
                    exchange;

               ii.  which such Person or any of such Person's Affiliates or
                    Associates, directly or indirectly, has the right to vote or
                    dispose of or has "beneficial ownership" of (as determined
                    pursuant to Rule 13d-3 of the General Rules and Regulations
                    under the Act and any successor provision thereof),
                    including pursuant to any agreement, arrangement or
                    understanding, whether or not in writing; provided, however,
                    that a Person shall not be deemed the "Beneficial Owner" of
                    or to "beneficially own", any security under this
                    subparagraph (ii) as a result of an agreement, arrangement
                    or understanding to vote such security if such agreement,
                    arrangement or understanding: (A) arises solely from a
                    revocable proxy given in response to a public proxy or
                    consent solicitation made pursuant to, and in accordance
                    with, the applicable provisions of the General Rules and
                    Regulations under the Exchange Act, and (B) is not also then
                    reportable by such Person on Schedule 13D under the Exchange
                    Act (or any comparable or successor report); or

               iii. which are beneficially owned, directly or indirectly, by any
                    other Person (or any Affiliate or Associate thereof) with
                    which such Person (or any of such Person's Affiliates or
                    Associates) has any agreement, arrangement or understanding
                    (whether or not in writing), but excluding customary
                    agreements with and between underwriters and selling group
                    members with respect to a bona fide public offering of
                    securities until the expiration of forty (40) days after the
                    date of such acquisition, for the purpose of acquiring,
                    holding, voting (except pursuant to a revocable proxy as
                    described in the proviso to subparagraph (ii) of this
                    paragraph (c)) or disposing of any voting securities of the
                    Company.

     (d)  The term "Change in Control" means (i) any transaction pursuant to
          which any Person (other than (A) the Company, (B) any Subsidiary of
          the Company, (C) any employee benefit plan or employee stock plan of
          the Company or of any Subsidiary of the Company, (D) any dividend
          reinvestment plan of the Company or (E) any Person or entity
          organized, appointed or established by the Company for or pursuant to
          the terms of any such plan), together with all Affiliates and
          Associates of such Person, becomes the Beneficial Owner of 20% or more
          of the shares of Common Stock then outstanding without the prior
          approval of a majority of the directors who are not officers of the
          Company or representatives, nominees, Affiliates or Associates of such
          Person (ii) any merger, consolidation, sale of assets or other
          reorganization, or a proxy contest, as a consequence of which
          Continuing Directors (as defined below) in office immediately prior to
          such transaction or event constitute less than a majority of the Board
          (or any successor entity) thereafter; or (iii) during any period of
          two consecutive years,

                                        3

<PAGE>

          individuals who at the beginning of such period constituted the Board
          (including for this purpose any new director whose election or
          nomination for election by the Company's stockholders was approved by
          a vote of at least two-thirds of the directors then still in office
          who were directors at the beginning of such period) (such directors
          being referred to herein as "Continuing Directors") cease for any
          reason to constitute at least a majority of the Board. Notwithstanding
          the foregoing, no Change in Control shall have occured as the result
          of an acquisition of Common Stock by the Company which, by reducing
          the number of shares outstanding, increases the proportionate number
          of shares beneficially owned by the Person acquiring such shares to
          20% or more of the Common Stock of the Company then outstanding;
          provided, however, that if a Person shall become the Beneficial Owner
          of 20% or more of the Common Stock of the Company then outstanding by
          reason of such an acquisition and shall, after such acquisition,
          become the Beneficial Owner of any additional shares of Common Stock,
          then a Change in Control shall be deemed to have occured.

     (e)  The term "Common Stock" means the common stock, $0.10 par value, of
          the Company, except that "Common Stock" when used with reference to
          any Person other than the Company shall mean the capital shares of
          such Person with the greatest voting power, or the equity securities
          or other equity interest having power to control or direct the
          management, of such Person.

     (f)  The term "Disinterested Director" with respect to any request by the
          Indemnitee for indemnification or advancement of expenses hereunder
          means a director of the Company who neither is nor was a party to the
          Proceeding (as defined below) in respect of which indemnification or
          advancement is being sought by the Indemnitee.

     (g)  The term "Expenses" means, without limitation, expenses of
          Proceedings, including attorneys' fees, disbursements and retainers,
          accounting and witness fees, expenses related to the preparation or
          service as a witness, travel and deposition costs, expenses of
          investigations, judicial or administrative proceedings and appeals,
          amounts paid in settlement of a Proceeding by or on behalf of the
          Indemnitee, costs of attachment or similar bonds, any expenses of
          attempting to establish or establishing a right to indemnification or
          advancement of expenses under this Agreement, the Company's
          Certificate of Incorporation or By-laws, applicable law or otherwise,
          and reasonable compensation for time spent by the Indemnitee in
          connection with the investigation, defense or appeal of a Proceeding
          or action for indemnification for which the Indemnitee is not
          otherwise compensated by the Company or any third party. The term
          "Expenses" shall not include the amount of judgments, fines, interest
          or penalties, or excise taxes assessed with respect to any employee
          benefit or welfare plan, which are actually levied against or
          sustained by the Indemnitee to the extent sustained after final
          adjudication.

     (h)  The term "Independent Legal Counsel" means any firm of attorneys
          selected by the Board (and is reasonably acceptable to Indeminittee)
          from a list consisting of

                                        4

<PAGE>

          firms which meet reasonable criteria established by the Board, so long
          as such firm has not represented the Company, the Indemnitee, any
          entity controlled by the Indemnitee, or any party adverse to the
          Company, within the preceding five years. Notwithstanding the
          foregoing, the term "Independent Legal Counsel" shall not include any
          person who, under applicable standards of professional conduct then
          prevailing, would have a conflict of interest in representing either
          the Company or the Indemnitee in an action to determine the
          Indemnitee's right to indemnification or advancement of expenses under
          this Agreement, the Company's Certificate of Incorporation or Bylaws,
          applicable law or otherwise.

     (i)  The term "Person" means any individual, firm, corporation, partnership
          or other entity.

     (j)  The term "Proceeding" means any threatened, pending or completed
          action, suit, arbitration, alternate dispute resolution mechanism, or
          any other proceeding (including, without limitation, an appeal
          therefrom), formal or informal, whether brought in the name of the
          Company or otherwise, whether of a civil, criminal, administrative or
          investigative nature, and whether by, in or involving a court or an
          administrative, other governmental or private entity or body
          (including, without limitation, an investigation by the Company or its
          Board), by reason of (i) the fact that the Indemnitee is or was a
          director of the Company, or is or was serving at the request of the
          Company as an Agent of another enterprise, whether or not the
          Indemnitee is serving in such capacity at the time any liability or
          expense is incurred for which indemnification or reimbursement is to
          be provided under this Agreement, (ii) any actual or alleged act or
          omission or neglect or breach of duty, including, without limitation,
          any actual or alleged error or misstatement or misleading statement,
          which the Indemnitee commits or suffers while acting in any such
          capacity, or (iii) the Indemnitee attempting to establish or
          establishing a right to indemnification or advancement of expenses
          pursuant to this Agreement, the Company's Certificate of Incorporation
          or By-laws, applicable law or otherwise.

     (k)  The term "Subsidiary" means, with reference to any other Person, any
          corporation or other entity of which securities or other ownership
          interests having ordinary voting power, in the absence of
          contingencies, to elect at least a majority of the directors or other
          persons performing similar functions is beneficially owned, directly
          or indirectly, by such Person, or which is otherwise controlled by
          such Person.

2.   Agreement to Serve. The Indemnitee agrees to serve and/or continue to serve
     as an Agent of the Company, at its will (or under separate agreement, if
     such agreement exists), in the capacity Indemnitee currently serves as an
     Agent of the Company, so long as he is duly appointed or elected and
     qualified in accordance with the applicable provisions of the By-laws of
     the Company or until such time as he tenders his resignation in writing,
     provided, however, that nothing contained in this Agreement is intended to
     create any right to continued employment by Indemnitee.

                                        5

<PAGE>

3.   Proceeding Other Than a Proceeding By or In the Right of the Company. The
     Company shall indemnify the Indemnitee if the Indemnitee is a party to or
     threatened to be made a party to or is otherwise involved in any Proceeding
     (other than a Proceeding by or in the right of the Company to procure a
     judgment in its favor), by reason of the fact that the Indemnitee is or was
     an Agent of the Company, against all Expenses, judgments, fines, interest
     or penalties, and excise taxes assessed with respect to any employee
     benefit or welfare plan, which are actually and reasonably incurred by the
     Indemnitee in connection with such a Proceeding, to the fullest extent
     permitted by applicable law as it presently exists or may hereafter be
     amended; provided, however, that any settlement of a Proceeding must be
     approved in advance in writing by the Company.

4.   Proceedings By or In the Right of the Company. The Company shall indemnify
     the Indemnitee if the Indemnitee is a party to or threatened to be made a
     party to or is otherwise involved in any Proceeding by or in the right of
     the Company to procure a judgment in its favor by reason of the fact that
     the Indemnitee is or was an Agent of the Company, against all Expenses,
     judgments, fines, interest or penalties, and excise taxes assessed with
     respect to any employee benefit or welfare plan, which are actually and
     reasonably incurred by the Indemnitee in connection with the defense or
     settlement of such a Proceeding, to the fullest extent permitted by
     applicable law as it presently exists or may hereafter be amended.

5.   Indemnification for Costs, Charges and Expenses of Witness or Successful
     Party. Notwithstanding any other provision of this Agreement (except as set
     forth in paragraph 9 hereof), and without a requirement for determination
     as required by Paragraph 8 hereof, to the extent that the Indemnitee (a)
     has prepared to serve or has served as a witness in any Proceeding in any
     way relating to the Company or (b) has been successful in defense of any
     Proceeding or in defense of any claim, issue or matter therein, on the
     merits or otherwise, including the dismissal of a Proceeding without
     prejudice or the settlement of a Proceeding without an admission of
     liability, the Indemnitee shall be indemnified against all Expenses
     actually and reasonably incurred by the Indemnitee in connection therewith
     to the fullest extent permitted by applicable law.

6.   Partial Indemnification. If the Indemnitee is entitled under any provision
     of this Agreement to indemnification by the Company for a portion of the
     Expenses, judgments, fines, interest or penalties, or excise taxes assessed
     with respect to any employee benefit or welfare plan, which are actually
     and reasonably incurred by the Indemnitee in the investigation, defense,
     appeal or settlement of any Proceeding, but not, however, for the total
     amount of the Indemnitee's Expenses, judgments, fines, interest or
     penalties, or excise taxes assessed with respect to any employee benefit or
     welfare plan, then the Company shall nevertheless indemnify the Indemnitee
     for the portion of such Expenses, judgments, fines, interest penalties or
     excise taxes to which the Indemnitee is entitled.

7.   Advancement of Expenses. The Expenses incurred by the Indemnitee in any
     Proceeding shall be paid promptly by the Company in advance of the final
     disposition of the Proceeding at the written request of the Indemnitee to
     the fullest extent permitted by applicable law as it presently exists or as
     it may hereinafter be amended; provided,

                                        6

<PAGE>

     however, that the Indemnitee shall set forth in such request reasonable
     evidence that such Expenses have been incurred by the Indemnitee in
     connection with such Proceeding, a statement that such Expenses do not
     relate to any matter described in paragraph 9 of this Agreement, and an
     undertaking in writing to repay any advances if it is ultimately determined
     as provided in subparagraph 8(b) of this Agreement that the Indemnitee is
     not entitled to indemnification under this Agreement. Advances of Expenses
     shall be made without regard to Indemnitee's ability to repay the advances.
     Indemnitee's obligation to repay the Company for advances shall be
     unsecured and no interst shall be charged thereon.

8.   Indemnification Procedure; Determination of Right to Indemnification.

     (a)  Promptly after receipt by the Indemnitee of notice of the commencement
          of any Proceeding, the Indemnitee shall, if a claim for
          indemnification or advancement of Expenses in respect thereof is to be
          made against the Company under this Agreement, notify the Company of
          the commencement thereof in writing as provided in paragraph 19. The
          omission to so notify the Company will not relieve the Company from
          any liability which the Company may have to the Indemnitee under this
          Agreement unless the Company shall have lost significant substantive
          or procedural rights with respect to the defense of any Proceeding as
          a result of such omission to so notify.

     (b)  The Indemnitee shall be presumed to have met the relevant standards of
          conduct, if any, as defined by applicable law, for indemnification
          pursuant to this Agreement provided that Indemnitee and has provided
          notice in accordance with paragaraph 8(a) and shall be entitled to
          such indemnification, unless a determination is made that the
          Indemnitee has not met such standards by either (i) the Board by a
          majority vote of a quorum of Disinterested Directors (even if it is
          less than a quorom of the Board), (ii) Independent Legal Counsel as
          set forth in a written opinion (it being understood that such
          Independent Legal Counsel shall make such determination only if the
          quorum of Disinterested Directors referred to in clause (i) of this
          subparagraph 8(b) is not obtainable or if the Board by a majority vote
          of a quorum of Disinterested Directors so directs), or (iii) a court
          of competent jurisdiction; provided, however, that if a Change in
          Control shall have occurred and the Indemnitee so requests in writing,
          such determination shall be made only by a court of competent
          jurisdiction. The Company shall be responsible to pay the fees and
          expenses of Independent Legal Counsel.

     (c)  If a claim for indemnification or advancement of Expenses under this
          Agreement is not paid by the Company within 30 days after receipt by
          the Company of written notice thereof, the rights provided by this
          Agreement shall be enforceable by the Indemnitee in any court of
          competent jurisdiction. Such judicial proceeding shall be made de
          novo. The burden of proving that indemnification or advances are not
          appropriate shall be on the Company. Neither the failure of the Board
          or Independent Legal Counsel to have made a determination prior to the
          commencement of such action that indemnification or advancement of
          Expenses is proper in the circumstances because the Indemnitee has met
          the applicable

                                        7

<PAGE>

          standard of conduct, if any, nor an actual determination by the Board
          or Independent Legal Counsel that the Indemnitee has not met the
          applicable standard of conduct shall be a defense to an action by the
          Indemnitee or create a presumption for the purpose of such an action
          that the Indemnitee has not met the applicable standard of conduct.
          The termination of any Proceeding by judgment, order, settlement or
          conviction, or upon a plea of nolo contendere or its equivalent, shall
          not, of itself (i) create a presumption that the Indemnitee did not
          act in good faith and in a manner which he reasonably believed to be
          in the best interests of the Company and/or its stockholders, and,
          with respect to any criminal Proceeding, that the Indemnitee had
          reasonable cause to believe that his conduct was unlawful or (ii)
          otherwise adversely affect the rights of the Indemnitee to
          indemnification or advancement of Expenses under this Agreement,
          except as may be provided herein.

     (d)  If a court of competent jurisdiction shall determine that the
          Indemnitee is entitled to any indemnification or advancement of
          Expenses hereunder, the Company shall pay all Expenses actually and
          reasonably incurred by the Indemnitee in connection with such
          adjudication (including, but not limited to, any appellate
          proceedings).

     (e)  With respect to any Proceeding for which indemnification or
          advancement of Expenses is requested, the Company will be entitled to
          participate therein at its own expense and, except as otherwise
          provided below, to the extent that it may wish, the Company may assume
          the defense thereof, with counsel reasonably satisfactory to the
          Indemnitee. After notice from the Company to the Indemnitee of its
          election to assume the defense of a Proceeding, the Company will not
          be liable to the Indemnitee under this Agreement for any Expenses
          subsequently incurred by the Indemnitee in connection with the defense
          thereof, other than as provided below. The Company shall not settle
          any Proceeding in any manner which would impose any penalty or
          limitation on the Indemnitee without the Indemnitee's written consent.
          The Indemnitee shall have the right to employ his own counsel in any
          Proceeding, but the fees and expenses of such counsel incurred after
          notice from the Company of its assumption of the defense of the
          Proceeding shall be at the expense of the Indemnitee, unless (i) the
          employment of counsel by the Indemnitee has been authorized by the
          Company, (ii) the Indemnitee shall have reasonably concluded that
          there may be a conflict of interest between the Company and the
          Indemnitee in the conduct of the defense of a Proceeding, or (iii) the
          Company shall not in fact have employed counsel to assume the defense
          of a proceeding, in each of which cases the fees and expenses of the
          Indemnitee's counsel shall be advanced by the Company. The Company
          shall not be entitled to assume the defense of any Proceeding brought
          by or on behalf of the Company or as to which the Indemnitee has
          concluded that there may be a conflict of interest between the Company
          and the Indemnitee.

9.   Limitations On Indemnity. No indemnity pursuant to this Agreement shall be
     paid by the Company:

                                        8

<PAGE>

     (a)  on account of any claim against the Indemnitee for an accounting of
          profits made from the purchase or sale by Indemnitee of securities of
          the Corporation pursuant to the provisions of Section 16(b) of the Act
          and amendments thereto or similar provisions of any federal, state or
          local statutory law;

     (b)  on account of Indemnitee's conduct that was knowingly fraudulent or
          deliberately dishonest or that constituted willful misconduct;

     (c)  on account of Indemnitee's conduct that constituted a breach of
          Indemnitee's duty of loyalty to the Company or resulted in any
          personal profit or advantage to which Indemnitee was not legally
          entitled;

     (d)  for which payment is actually made to Indemnitee under a valid and
          collectible insurance policy or under a valid and enforceable
          indemnity clause, By-law or agreement, except in respect of any excess
          beyond payment under such insurance, clause, By-law or agreement;

     (e)  if indemnification is not lawful (and, in this respect, both the
          Company and Indemnitee have been advised that the Securities and
          Exchange Commission believes that indemnification for liabilities
          arising under the federal securities laws is against public policy and
          is, therefore, unenforceable and that claims for indemnification
          should be submitted to appropriate courts for adjudication);

     (f)  in connection with any Proceeding (or part thereof) initiated by
          Indemnitee, or any Proceeding by Indemnitee against the Company or its
          directors, officers, employees or other agents, unless (i) such
          indemnification is expressly required to be made by law, (ii) the
          proceeding was authorized by the Board, or (iii) such indemnification
          is provided by the Company, in its sole discretion, pursuant to the
          powers vested in the Company under Section 145.

10.  Indemnification Hereunder Not Exclusive. The indemnification provided by
     this Agreement shall not be deemed to be exclusive of any other rights to
     which the Indemnitee may be entitled under the Company's Certificate of
     Incorporation, as amended, the Company's By-laws, as amended, any
     agreement, vote of stockholders or vote of Disinterested Directors,
     provisions of applicable law, or otherwise, both as to action or omission
     in the Indemnitee's official capacity and as to action or omission in
     another capacity on behalf of the Company while holding such office.

11.  Liability Insurance. The Company shall, from time to time, make the good
     faith determination whether or not it is practicable for the Company to
     obtain and maintain a policy or policies of insurance with reputable,
     companies providing its Agents with coverage for losses from wrongful acts,
     or to ensure the Company's performance of its indemnification obligations
     under this Agreement. Among other considerations, the Company will weigh
     the costs of obtaining such insurance coverage against the protection
     afforded by such coverage. In all such policies of liability insurance,
     Indemnitee shall be named as an insured in such a manner as to provide
     Indemnitee the same rights and benefits as are accorded to the most
     favorably insured of the Company's

                                        9

<PAGE>

     Agents. Notwithstanding the foregoing, the Company shall have no obligation
     to obtain or maintain such insurance if the Company determines in good
     faith that such insurance is not reasonably available, if the premium costs
     for such insurance are disproportionate to the amount of coverage provided
     or if the coverage provided by such insurance is limited by exclusions so
     as to provide an insufficient benefit.

12.  Successors and Assigns.

     (a)  This Agreement shall be binding upon, and shall inure to the benefit
          of, the Indemnitee and the Indemnitee's heirs, executors,
          administrators and assigns, whether or not the Indemnitee has ceased
          to be an Agent, and the Company and its successors and assigns. Upon
          the sale of all or substantially all of the business, assets or
          capital stock of the Company to, or upon the merger of the Company
          into or with, any corporation, partnership, joint venture, trust or
          other person, this Agreement shall inure to the benefit of and be
          binding upon both the Indemnitee and such purchaser or successor
          person. Subject to the foregoing, this Agreement may not be assigned
          by either party without the prior written consent of the other party
          hereto.

     (b)  If the Indemnitee is deceased and is entitled to indemnification under
          any provision of this Agreement, the Company shall indemnify the
          Indemnitee's estate and the Indemnitee's spouse, heirs, executors,
          administrators and assigns against, and the Company shall, and does
          hereby agree to assume, any and all Expenses actually and reasonably
          incurred by or for the Indemnitee or the Indemnitee's estate, in
          connection with the investigation, defense, appeal or settlement of
          any Proceeding. Further, when requested in writing by the spouse of
          the Indemnitee, and/or the Indemnitee's heirs, executors,
          administrators and assigns, the Company shall provide appropriate
          evidence of the Company's agreement set out herein to indemnify the
          Indemnitee against and to itself assume such Expenses.

13.  Subrogation. In the event of payment under this Agreement, the Company
     shall be subrogated to the extent of such payment to all of the rights of
     recovery of the Indemnitee, who shall execute all documents required and
     shall do all acts that may be necessary to secure such rights and to enable
     the Company effectively to bring suit to enforce such rights.

14.  Severability. Each and every paragraph, sentence, term and provision of
     this Agreement is separate and distinct so that if any paragraph, sentence,
     term or provision thereof shall be held to be invalid, unlawful or
     unenforceable for any reason, such invalidity, unlawfulness or
     unenforceability shall not affect the validity, unlawfulness or
     enforceability of any other paragraph, sentence, term or provision hereof.
     To the extent required, any paragraph, sentence, term or provision of this
     Agreement may be modified by a court of competent jurisdiction to preserve
     its validity and to provide the Indemnitee with the broadest possible
     indemnification permitted under applicable law.

                                       10

<PAGE>

15.  Savings Clause. If this Agreement or any paragraph, sentence, term or
     provision hereof is invalidated on any ground by any court of competent
     jurisdiction, the Company shall nevertheless indemnify the Indemnitee as to
     any Expenses, judgments, fines, interest or penalties, or excise taxes
     assessed with respect to any employee benefit or welfare plan, which are
     actually and reasonably incurred with respect to any Proceeding to the
     fullest extent permitted by any (a) applicable paragraph, sentence, term or
     provision of this Agreement that has not been invalidated or (b) applicable
     provision of Delaware law.

16.  Interpretation; Governing Law. This Agreement shall be construed as a whole
     and in accordance with its fair meaning. Headings are for convenience only
     and shall not be used in construing meaning. This Agreement shall be
     governed and interpreted in accordance with the laws of the State of
     Delaware without regard to the conflict of laws principles thereof.

17.  Amendments. No amendment, waiver, modification, termination or cancellation
     of this Agreement shall be effective unless in writing signed by the party
     against whom enforcement is sought. The indemnification rights afforded to
     the Indemnitee hereby are contract rights and may not be diminished,
     eliminated or otherwise affected by amendments to the Certificate of
     Incorporation, By-laws or by other agreements, including directors' and
     officers' liability insurance policies, of the Company.

18.  Counterparts. This Agreement may be executed in one or more counterparts,
     all of which shall be considered one and the same agreement and shall
     become effective when one or more counterparts have been signed by each
     party and delivered to the other.

19.  Notices. All notices, requests, demands and other communications under this
     Agreement shall be in writing and shall be deemed to have been duly given
     if (i) delivered by hand and receipted for by the party to whom said notice
     or other communication shall have been directed, or (ii) mailed by
     certified or registered mail with postage prepaid, on the third (3rd)
     business day after the date on which it is so mailed. Any notice required
     to be given under this Agreement shall be directed to the Company at the
     following address:

                  The Goldfield Corporation
                  1684 W. Hibiscus Blvd.
                  Melbourne, FL  32901
                  Attn:
                        --------------------------

and to the Indemnitee at the following address:

                  -------------------------------

                  -------------------------------

                  -------------------------------

or at such other address as either shall designate to the other in writing.

                                       11

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Indemnification
Agreement as of the date first written above.

THE GOLDFIELD CORPORATION

By:
    __________________________________  ________________
    Name:                               Date:
    Title:

INDEMNITEE:

By:
    __________________________________  ________________
    Name:                               Date:
    Title:

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]