Document:

exv4w5

Exhibit 4.5

ML Number: 241539

 

MERRILL LYNCH

PROTOTYPE DEFINED

CONTRIBUTION PLAN AND TRUST

 

NON-STANDARDIZED

 

401(k) PROFIT SHARING PLAN 

ADOPTION AGREEMENT

Letter Serial Number: M380275a

National Office Letter Date: 3/31/2008

This Adoption Agreement #004 and its related Base Plan Document #03 are important legal instruments
with legal and tax implications. Merrill Lynch, Pierce, Fenner & Smith Incorporated does not
provide legal or tax advice to the Employer. The Employer is urged to consult with its own attorney
with regard to the adoption of this Plan and its suitability to its circumstances.

NOTE: In order to be recognized as a Prototype Plan maintained by the Sponsor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the Employer must contribute and maintain at least 75% of Plan
Year contributions and Trust Fund value with the Sponsor.

 

 

Protected Benefits

Vesting:

Any participant in the plan who was a participant in the NMHC plan as of May 1, 2008, shall not
have his or her vested
benefit as of May 1, 2008 reduced, eliminated or altered by any amendment to the plan to the extent
protected by applicable
law.

Any participant in the plan who was a participant in the NMHC plan as of May 1, 2008 and completes
at least one of more years of service under the plan on or after such date, shall be subject to the
following vesting schedule for matching and profit sharing contributions, whether made before or
after the plan merger.

Less then 1 Year of Vesting Service is 0% Vested.

At least 1 Year of Vesting Service but less then 2 Years of Vesting
Service is 20% Vested.

At least 2 Years of Vesting Service but less then 3 Years of Vesting Service is 40% Vested.

At least 3 Years of Vesting Service or more is 100% Vested.

Other Protected Benefits:

The National Medical Health Card Systems, Inc 401(k) Employee Savings Plan (the “NMHC plan”) was
merged into this plan effective May 1, 2008.

i

 

Adoption of Plan

The Primary Employer named below hereby establishes or restates a profit sharing plan that includes
an þ Elective Deferral, þ Profit Sharing, and/or o Employee After-Tax plan feature (the “Plan”) by
adopting the Merrill Lynch Prototype Defined Contribution Plan and Trust Base Plan Document #03, as
implemented by this Adoption Agreement #004.

Employer and Plan Information

Primary Employer Name: SXC Health Solutions, Inc.

The Primary Employer is (i) þ a member of a Code Section 414(b) and/or Code Section 414(c)
controlled group; (ii) o a member of a Code Section 414(m) affiliated service group, or
(iii) o none of the above.i

	Business Address:	 	2441 Warrenville Road

Suite 610
Lisle, IL
60532

Telephone Number: 630-268-3600

Primary Employer Taxpayer ID Number: 75-2578509

Primary Employer Taxable Year ends on: 12/31

Plan Name: SXC Health Solutions, Inc. 401(k) Plan

Plan Number: 001

Restatement Effective Date (if applicable): 01/01/2009, except as otherwise legally
required or indicated herein (insert a date that is not earlier than the first day of the Plan Year
in which the document is adopted).

Original Effective Date: 01/01/1997 (insert a date that is not earlier than the first day
of the Plan Year in which the Plan is/was adopted).

 

			
	i	 	Only entities treated as a single employer under Section 414 of the Internal Revenue Code may
adopt this Plan. Generally, entities are treated as a single employer under Code Section 414 if
they share 80% common ownership or if their operations are otherwise closely affiliated. The
related employer rules are complex and legal advice should be sought before any entity other than
the Primary Employer is permitted to adopt this Plan. Only an entity that is a member of the
Primary Employer controlled group or affiliated service group may adopt this Plan.

2

 

Legal Names of Participating Employers:

SXC Health Solutions, Inc.

informedRx, Inc.

Health Business Systems, Inc.

	 	 	 
	Plan Administrator Name:

	 	Plan Committee Under The SXC Health Solutions, Inc. 401(k) Plan
	 
	 	 
	Plan Administrator Business Address:

	 	2441 Warrenville Road
	 

	 	Suite 610
	 

	 	Lisle, IL 60532
	 
	 	 
	Plan Administrator Telephone Number:

	 	630-268-3600

Note: If this Plan is a continuation or an amendment of a prior plan, optional forms of
benefits provided in the prior plan must be provided under this Plan, and should be listed on an
Addendum attached to this Adoption Agreement, unless permissibly eliminated or restricted under the
terms of this Plan and IRS regulations or guidance.

3

 

ARTICLE I. Definitions

	A.	 	“Compensation”

	 	(1)	 	Plan Compensation means (select (a), (b) or (c)):

	 	þ  (a)	 	amount reported in the “Wages Tips and Other Compensation” Box on Form
W-2 and paid during the Plan Year (as defined in Section 1.20 of the Base Plan
Document).
	 
	 	o  (b)	 	amount reported pursuant to Code Section 3401(a) and paid during the Plan Year (as
defined in Section
1.20 of the Base Plan Document).
	 
	 	o  (c)	 	compensation for Code Section 415 safe-harbor purposes paid during the Plan Year
(as defined in
Section 1.20 of the Base Plan Document).

	 	 	 	Plan Compensation shall exclude the following (select all that apply):

	 	 	 	 	 	 	 
	non-Profit	 	Employer	 	 	 	 
	Sharing	 	Nonelective	 	 	 	 
	Contributions*	 	Contributions**	 	 	 	 
	 
	o

	 	o
	 	(d)
	 	fringe benefits (cash and noncash), reimbursements or other
expense allowances, moving expenses, deferred compensation, and welfare benefits.
	 
	o

	 	o
	 	(e)
	 	overtime.
	 
	o

	 	o
	 	(f)
	 	bonuses.
	 
	o

	 	o
	 	(g)
	 	commissions.
	 
	o

	 	o
	 	(h)
	 	amounts in excess of $____ (insert any number).
	 
	þ

	 	þ
	 	(i)
	 	other (specify the type of compensation to be excluded):
	 

	 	 	 	 	 	severance pay, company car, employee business expense, moving expense, and other noncash fringe
benefits.

	 	 	 	Note: A Plan which selects any exclusion (e)-(i) above may require satisfaction of
nondiscriminatory compensation requirements under Internal Revenue Section Code 414(s)
(Demo 9), and may not be integrated with Social Security if any of those items are selected
in the Employer Nonelective Contributions column. If necessary to satisfy Demo 9, the
exclusions indicated above will be included as Plan Compensation, as necessary, solely in
an amount necessary to satisfy such compensation testing.
	 
	 	 	 	Plan Compensation shall include the following (select (j), if applicable and (k) or (l)):

	 	 	 	 	 	 	 
	non-Profit	 	Employer	 	 	 	 
	Sharing	 	Nonelective	 	 	 	 
	Contributions*	 	Contributions**	 	 	 	 
	 
	Included

	 	þ
	 	(j)
	 	Elective Contributions (as defined in Section 1.30 of the Base
Plan Document). (Note: Elective Contributions will be excluded with regard to Employer Nonelective
Contributions if this option is not checked.)
	 
	þ

	 	þ
	 	(k)
	 	Compensation earned during the Plan Year in which the
Participant enters the Plan
	 
	o

	 	o
	 	(l)
	 	Compensation earned after the Participant’s initial Entry Date

 

			
	*	 	For this section only, non-Profit Sharing Contributions are defined to include Elective
Deferral, Employee After-Tax, Matching, Qualified Matching and Safe Harbor Matching
Contributions. All other references to non-Profit Sharing Contributions are defined to include
all contributions other than Profit Sharing and Prevailing Wage Contributions.
	 
	**	 	Employer
Nonelective Contributions include Profit Sharing, Prevailing Wage and Safe Harbor Nonelective
Contributions.

4

 

	 	(2)	 	Testing Compensation (as defined in Section 1.104 of the Base Plan Document)
means option (a), (b), or (c) as
selected in (1) above, and excluding the following (select all that apply):

	 	o  (a)	 	fringe benefits (cash and noncash), reimbursements or other expense allowances,
moving expenses, deferred compensation, and welfare benefits.
	 
	 	o  (b)	 	Elective Contributions (as defined in Section 1.30 of the Base Plan Document).
	 
	 	o  (c)	 	Compensation earned before the Participant’s initial Entry Date.

	 	(3)	 	415 Limitation Compensation (as defined in Section 1.1 of the Base Plan
Document): means option (a), (b), or (c)
as selected in (1) above.

	B.	 	“Computation Period”
	 
	 	 	To determine Years of Service and Breaks in Service for purposes of eligibility, Computation
Periods occurring after the initial Computation Period as defined in Section 1.21 of the Base
Plan Document shall be the succeeding 12-month periods commencing with (select one):

	 	o  (1)	 	the first anniversary of the Employee’s employment commencement date.
	 
	 	o  (2)	 	the first Plan Year which commences prior to the first anniversary of the Employee’s
employment commencement date.
	 
	 	þ  (3)	 	not applicable, the Plan uses elapsed time method to determine all eligibility service.

	C.	 	“Disability”
	 
	 	 	Disability shall mean a condition which results in the Participant’s (select one):

	 	o  (1)	 	inability to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or to be of long-continued
and indefinite duration.

	 	 	Note: The exception from the early distribution tax of Code Section 72(t) may not apply to
a distribution made on account of a “Disability” unless the definition used is that as defined
in this option C(1).

	 	o  (2)	 	total and permanent inability to meet the requirements of the Participant’s
customary employment which can be expected to last for a continuous period of not less than 12 months.

	 
	 	þ  (3)	 	qualification for Social Security disability benefits.
	 
	 	o  (4)	 	qualification for benefits under the Employer’s long-term disability plan.

	D.	 	“Early Retirement Age”

	 	(1)	 	Early Retirement Age (select one):

	 	o  (a)	 	shall be permitted.
	 
	 	þ  (b)	 	shall not be permitted.

	 	(2)	 	If D(1)(a) above is elected, Early Retirement Age shall mean (select one):

	 	o  (a)	 	attained age ____ (insert any age less than Normal Retirement Age).
	 
	 	o  (b)	 	attained age ____ (insert any age less than Normal Retirement Age) and completed ____ Years of
Service (insert any number that is no greater than the number of Years of Service that is otherwise needed to be 100% vested under the Plan).
	 
	 	o  (c)	 	attained age ____ (insert any age less than Normal Retirement Age) and completed ____ Years of
Service as a Participant (insert any number that is no greater than the number of Years of Service that is otherwise needed to be 100% vested under the Plan).

5

 

	E.	 	“Eligible Employees”
	 
	 	 	General Rule:
	 
	 	 	It is expressly intended that, regardless of any elections below, an individual not treated as
a common law employee by the Primary Employer or an Affiliate on its payroll records is to be
excluded from Plan participation even if a court or administrative agency later determines that
such individual is a common law employee and not an independent contractor. (select one):

	 	o  (1)	 	All Employees of the Primary Employer and participating Employers are eligible to
participate in the Plan.
	 
	 	þ  (2)	 	All Employees are eligible to participate in the Plan except for the following
Employees (select all that apply):

	 	o  (a)	 	Employees who are included in a unit of Employees covered by an agreement
which the Secretary
of Labor finds to be a collective bargaining agreement between Employee
representatives and one or more Employers, if there is evidence that retirement
benefits were the subject of good faith bargaining between such Employee
representatives and such Employer or Employers, unless the bargaining agreement
provides for participation in the Plan.
	 
	 	þ  (b)	 	Non-resident aliens (within the meaning of Code Section
7701(b)(1)(B)) and who received no earned income (within the meaning of Code
Section 911(d)(2)) from the Employer which constitutes income from sources within
the United States (within the meaning of Code Section 861(a)(3)).
	 
	 	þ  (c)	 	Employees of an Affiliate that is not a participating Employer.
	 
	 	þ  (d)	 	Leased Employees, as defined in Section 1.58 of the Plan.
	 
	 	þ  (e)	 	Temporary Employees, as defined in Section 1.103 of the Plan.
	 
	 	o  (f)	 	Employees employed in or by the following specified division, plant,
location, job category or other
identifiable individual or group of Employees. (This exclusion may be applied to specific plan
features.)           .

	 	 	 	Note: The exclusion of specified job classifications may not impose conditions relating
to age or service that must be satisfied by a Plan Participant. For example, part-time
employees may not be excluded as a classification or job category of employees.

	 	 	Note: The Plan’s definition of “Eligible Employees” merely identifies the Employees who may
participate in the Plan and has no bearing on the identification of Employees who must be taken
into account for coverage testing under Code Section 410(b) and the regulations thereunder.

6

 

	F.	 	“Entry Date”

	 	(1)	 	Entry Date shall mean (select one for each column, as applicable):

	 	 	 	 	 	 	 
	Elective Deferral	 	 	 	 
	and/or Employee	 	 	 	 
	After-Tax	 	Matching	 	Profit Sharing
	Contributions	 	Contributions	 	Contributions
	 	 	 	 	 	 	 

	þ	 	þ	 	o	 	(a)   each business day of the Plan Year.

	 	 	 	 	 	 	 

	o	 	o	 	o	 	(b)   the first day of the Plan Year coincident with
or next following the date the
Employee meets the participation
requirements of Section 2.1 of the
Base Plan Document. If the Primary
Employer elects this option (b)
establishing only one Entry Date,
the participation “age and service”
requirements elected in Article II
must be no more than age 201/2 and
1/2 of a Year of Service.

	 	 	 	 	 	 	 

	o	 	o	 	þ	 	(c)   the first day of the month coincident with or
next following the date the
Employee meets the participation
requirements of Section 2.1 of the
Base Plan Document.

	 	 	 	 	 	 	 

	o	 	o	 	o	 	(d)   the first day of the Plan Year and the first day
of the seventh month of the Plan
Year coincident with or next
following the date the Employee
meets the participation requirements
of Section 2.1 of the Base Plan
Document.

	 	 	 	 	 	 	 

	o	 	o	 	o	 	(e)   the first day of the Plan Year, the first day of
the fourth month of the Plan Year,
the first day of the seventh month
of the Plan Year, and the first day
of the tenth month of the Plan Year
coincident with or next following
the date the Employee meets the
participation requirements of
Section 2.1 of the Base Plan
Document.

	 	 	 	 	 	 	 

	o	 	o	 	o	 	(f)   other:           .

	 	 	 	 	 	 	 

	 	 	 	 	 	 	Note: Any date(s) inserted must meet the
statutory entry dates as described in
Section 1.43 of the Base Plan Document

	 	(2)	 	Special Entry Date:
	 
	 	 	 	If this Plan is an amendment or restatement of an existing plan and the amendment effective
date or Restatement Effective Date would not otherwise be an Entry Date in item (1) above,
the amendment effective date or Restatement Effective Date (select one):

	 
	 	o  (a)	 	shall be an Entry Date.
	 
	 	þ  (b)	 	shall not be an Entry Date.
	 
	 	o  (c)	 	is not applicable, this is the initial Adoption Agreement.

7

 

	G.	 	“Highly Compensated Employees”

	 	(1)	 	Top-Paid Group Election
	 
	 	 	 	In determining who is a Highly Compensated Employee (select one):

	 	þ  (a)	 	A top-paid group election is made. The effect of this election is that
an Employee (who is not a 5% owner at any time during the determination year or the
look-back year) with 415 Limitation Compensation in excess of $80,000 (as adjusted)
for the look-back year (as defined in Section 1.50 of the Base Plan Document) is a
Highly Compensated Employee only if the Employee was in the top-paid group for the
look-back year. An Employee is in the “top-paid group” for any year, if such Employee
is in the group of Employees consisting of the top 20% of the includable Employees
when ranked on the basis of 415 Limitation Compensation paid during such year.ii
	 
	 	o  (b)	 	A top-paid group election is not made.

	 	(2)	 	Calendar Year Data Election
	 
	 	 	 	In determining who is a Highly Compensated Employee (other than a 5% owner) (select one):

	 	o  (a)	 	A calendar year data election is made. The effect of this election is that the
look-back year is the calendar
year beginning with or within the look-back year.
	 
	 	o  (b)	 	A calendar year data election is not made.
	 
	 	þ  (c)	 	Not applicable, Plan Year is the calendar year.

	 	Note: If both G(1)(a) and G(2)(a) are selected, the look-back year in determining the top-paid
group shall be the calendar year beginning with or within the look-back year. Generally, a
top-paid group election must apply consistently to the determination years of all plans of the
Employer that begin with or within the same calendar year. A calendar year data election also
must apply consistently to the determination years of all of the Employer’s plans that begin
within the same calendar year.

	H.	 	“Hours of Service”
	 
	 	 	Hours of Service shall be determined on the basis of the method specified below:

	 	(1)	 	Eligibility Service
	 
	 	 	 	For purposes of determining whether an Eligible Employee has satisfied the participation
requirements of Section 2.1 of the Base Plan Document, the following method shall be used
(select one for each column, as applicable):

	 	 	 	 	 	 	 
	Elective Deferral and/or 	 	 	 	 
	Employee After-Tax	 	Matching	 	Profit Sharing
	Contributions	 	Contributions	 	Contributions
	 	 	 	 	 	 	 

	þ	 	þ	 	þ	 	(a)     elapsed time method.

	o	 	o	 	o	 	(b)     hourly records method.

 

			
	ii	 	Generally, in making this determination, the following Employees are excluded: Employees who have
not completed 6 months of service, Employees who normally work less than 171/2 hours per week,
Employees who normally work not more than 6 months during any year, Employees who have not attained
age 21, non-resident aliens with no U.S.-source income and except to the extent provided in IRS
regulations, Employees who are included in a unit of Employees covered by an agreement which the
Secretary of Labor finds to be a collective bargaining agreement between Employee representatives
and the Employer.

8

 

	 	(2)	 	Vesting Service
	 
	 	 	 	All Elective Deferral Contributions, Employee After-Tax Contributions, Qualified Matching
Contributions, Qualified Nonelective Contributions, ACP Test Safe Harbor Matching
Contributions, and ADP Test Safe Harbor Contributions are always 100% vested. Unless Profit
Sharing and/or Matching Contributions are fully vested when made (in accordance with Article
IX of this Adoption Agreement), a Participant’s nonforfeitable interest in Profit Sharing
Contributions and/or Matching Contributions (as applicable) made on his or her behalf shall
be determined on the basis of the method specified below (select one as applicable):

	 	þ  (a)	 	elapsed time method.
	 
	 	o  (b)	 	hourly records method.

	 	(3)	 	Hourly Records
	 
	 	 	 	For the purpose of determining Hours of Service under the hourly records method (choose one
box for eligibility and one box for vesting, as applicable):

	 	 	 	 	 	 	 
	Eligibility	 	Vesting	 	 	 	 
	 
	 	 	 	 	 	 
	o

	 	o
	 	(a)
	 	only actual hours for which an Employee is paid or entitled to payment shall be
counted.
	 
	 	 	 	 	 	 
	o

	 	o
	 	(b)
	 	an Employee shall be credited with 45 Hours of Service if under Section 1.51 of the
Base Plan Document such Employee would be credited with at least 1
Hour of Service during the week.

	I.	 	“Limitation Year”
	 
	 	 	For purposes of Code Section 415, the Limitation Year shall be (select one):

	 	þ  (1)	 	the Plan Year.

	 	o  (2)	 	the calendar year.

	 	o  (3)	 	the 12 consecutive month period ending on the day            of the month of           .

	J.	 	“Normal Retirement Age”
	 
	 	 	Normal Retirement Age shall be (select one):

	 	þ  (1)	 	attainment of age 65
 (not more than 65) by the Participant.

	 	o  (2)	 	attainment of age
           (not more than 65) by the Participant or if later, the
           anniversary (not more than
the 5th) of the earlier of the first day on which the Eligible Employee performed an
Hour of Service or the first day of the Plan Year in which the Eligible Employee became
a Participant.

	 	o  (3)	 	attainment of age            (not more than 65) by the Participant or the
           anniversary (not more
than the 5th) of the first day of the Plan Year in which the Eligible Employee became a Participant,
whichever is later.

9

 

	K.	 	“Participant Directed Assets”
	 
	 	 	Participant Directed Assets are (select one):

	 	 	 	 	 	 	 	 	 
	non-Profit Sharing	 	Profit Sharing	 	 	 	 	 	 
	Contributions	 	Contributions	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	þ

	 	þ
	 	 	(1	)	 	   permitted.
	 
	 	 	 	 	 	 	 	 
	o

	 	o
	 	 	(2	)	 	   not permitted.

	L.	 	“Plan Year”
	 
	 	 	The Plan Year, as defined in Section 1.78 of the Base Plan Document, shall be the period ending
on the 31st day of December.

	M.	 	“Predecessor Employer Service”
	 
	 	 	Predecessor Employer Service (as defined in Section 1.80 of the Base Plan Document) will be
credited (select one):

	 	þ  (1)	 	only as required by law.

	 	o  (2)	 	to include, in addition to the legal requirements and subject to the
limitations set forth below, service with the
following Predecessor Employer(s) determined as if such predecessors were the Employer:           .

	 	 	 	Service with such Predecessor Employer listed in this item (2) applies (select (a), (b)
or (c), as applicable; (d) is only available in addition to (a), (b) and/or (c)):

	 	o  (a)	 	    for purposes of eligibility to participate;

	 	o  (b)	 	
for purposes of vesting;

	 	o  (c)	 	    for purposes of contribution allocation;

	 	o  (d)	 	    except for the following service:

               (insert a description of any disregarded service).

	N.	 	“Top-Heavy Ratio”
	 
	 	 	If the adopting Employer maintains or has ever maintained a qualified defined benefit plan, for
purposes of establishing present value to compute the top-heavy ratio, any benefit shall be
discounted only for mortality and interest based on the following:
	 
	 	 	Interest rate:         
          %  (insert a reasonable interest rate)
	 
	 	 	Mortality table:                 
   (insert a reasonable mortality table)

10

 

	O.	 	“Valuation Date”
	 
	 	 	Valuation Date shall mean (select one for each column, as applicable):

	 	 	 	 	 	 	 	 	 
	non-Profit Sharing	 	Profit Sharing	 	 	 	 	 	 
	Contributions	 	Contributions	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	þ

	 	þ
	 	 	(1	)	 	   each business day.
	o

	 	o
	 	 	(2	)	 	   the last business day of each month.
	o

	 	o
	 	 	(3	)	 	   the last business day of each quarter within the Plan Year.
	o

	 	o
	 	 	(4	)	 	   the last business day of each semi-annual period within the Plan Year.
	o

	 	o
	 	 	(5	)	 	   the last business day of the Plan Year.
	o

	 	o
	 	 	(6	)	 	   other:
          
(insert a frequency that occurs at least once during a Plan
Year).

	P.	 	“Years of Service”
	 
	 	 	For purposes of determining whether an Eligible Employee has satisfied the participation
requirements of Article II of this Adoption Agreement, the following method shall be used for
determining Years of Service if the Hourly Records Method is selected under Article I H or
Article VIII B(1)(a) of this Adoption Agreement. An Eligible Employee shall be credited with
one Year of Service (select one):

	 	o  (1)	 	immediately following completion of 1000 Hours of Service.

	 	o  (2)	 	on the last day of the Computation Period in which the Participant completes 1000
Hours of Service.

11

 

ARTICLE II. Participation

General Participation Requirements

An Eligible Employee must meet the following requirements to become a Participant (select one or
more for each column from A-E below and, if desired, F, as applicable):

	 	 	 	 	 	 	 	 	 
	Elective Deferral	 	 	 	 	 	 	 	 
	and/or Employee	 	 	 	Profit	 	 	 	 
	After-Tax	 	Matching	 	Sharing	 	 	 	 
	Contributions	 	Contributions	 	Contributions	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	o

	 	o
	 	o
	 	A.
	 	Performance of one Hour of Service.
	 
	 	 	 	 	 	 	 	 
	o

	 	o
	 	o
	 	B.
	 	Attainment of age            (maximum 20 1/2)
and completion of            (not more than 1/2) Year(s)
of Service. If this item is selected, no Hours
of Service shall be counted.
	 
	 	 	 	 	 	 	 	 
	þ

	 	 	 	 	 	C.
	 	Attainment of age 21 (maximum 21) and
completion of N/A Year(s) of Service (not to
exceed 1 year).
	 
	 	 	 	 	 	 	 	 
	 

	 	þ
	 	 	 	D.
	 	Attainment of age 21 (maximum 21) and
completion of N/A Year(s) of Service (not to
exceed 2 years). If more than 1 Year of Service
is selected, the immediate 100% vesting schedule
must be selected in Article IX of this Adoption
Agreement.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	þ
	 	E.
	 	Attainment of age 21 (maximum 21) and
completion of 1/2 Year(s) of Service (not to
exceed 2 years). If more than 1 Year of Service
is selected, the immediate 100% vesting schedule
must be selected in Article IX of this Adoption
Agreement.
	 
	 	 	 	 	 	 	 	 
	o

	 	o
	 	o
	 	F.
	 	Each Employee who is an Eligible Employee will be
deemed to have satisfied the participation
requirements as of            (insert any date) without
regard to such Eligible Employee’s actual age
and/or service.

12

 

ARTICLE III. Elective Deferral, Employee After-Tax and Rollover Contributions

Note: Department of Labor regulations require the contribution of Elective Deferral Contributions
and Employee After-Tax Contributions to the Trust as soon as possible and no later than the 15th
business day of the month following the month in which (i) the Participant’s contribution amounts
are received by the Employer (in the case of amounts that a Participant or Beneficiary pays to an
Employer) or (ii) such amounts would otherwise have been payable to the Participant in cash (in the
case of amounts withheld by an Employer from a Participant’s wages).

	A.	 	Elective Deferral Contributions (select all that apply):

	 	þ  (1)	 	Elective Deferral Contributions are permitted under the Plan and may be made
by a Participant in a dollar amount or a percentage of the Participant’s Plan
Compensation, as specified by the Participant in his or her Elective Deferral Election,
which may not exceed 30% of his or her Plan Compensation.

	 	The Elective Deferral Contributions will consist of (select one):
	 
	 	o  (a)	 	Pre-Tax Contributions only.
	 
	 	þ  (b)	 	Pre-Tax and Roth Contributions.

	 	o  (2)	 	Elective Deferral Election limit for Highly Compensated Employees. If elected and in
lieu of the limit set forth in A(1), a Highly Compensated Employee may make an Elective
Deferral Election that may not exceed           % of his or her Plan Compensation.
	 
	 	 	 	Note: If item A(2) is selected, the inserted election limit percentage must be less
than the percentage inserted in A(1) above.
	 
	 	o  (3)	 	Separate Bonus Election — With respect to bonuses, such dollar amount or percentage as
specified by the Participant in his or her Elective Deferral Election with respect to such
bonus.
	 
	 	þ  (4)	 	Catch-up Contributions (select one):

	 	þ  (a)	 	shall
apply.
	 
	 	o  (b)	 	shall not apply.

	 	o  (5)	 	Elective Deferral Contributions are not permitted under the Plan.

	B.	 	Automatic Programs for Elective Deferral Contributions (as defined in Section
3.4.1(B) of the Base Plan
Document):

	 	(1)	 	Automatic Enrollmentiii of Elective Deferral Contributions (select one):

	 	þ  (a)	 	An automatic enrollment feature shall apply. (if selected, complete (i) and
(ii) below):

	 	(i)	 	Applicability (select (A) and/or (B)):

	 	þ  (A)	 	In the absence of an election made by an
Eligible Employee to the contrary within such time period as established
by the Plan Administrator, a Participant shall be deemed to have elected a
Pre-Tax Contribution of 3% of his or her Plan Compensation.
	 
	 	o  (B)	 	In the absence of an election made by an Eligible Employee to the
contrary within such time period as established by the Plan Administrator, a
Participant shall be deemed to have elected a Roth Contribution of           % of his or
her Plan Compensation.

	 	(ii)	 	Eligibility:
	 
	 	 	 	The automatic enrollment feature shall apply to (select one):

	 	o  (A)	 	Eligible Employees hired on or after           .
	 
	 	þ  (B)	 	all Eligible Employees either hired on or after
08/16/2007 or who have never enrolled to make Elective Deferral
Contributions.

 

			
	iii	 	Automatic enrollment is sometimes referred to as a negative election.

13

 

	 	o  (b)	 	Automatic enrollment shall not apply.

	 	(2)	 	Automatic Increase of Elective Deferral Contributions (select one):

	 	o  (a)	 	An automatic increase feature shall apply. (if selected, complete (i), (ii),
(iii), (iv) and (v) below):

	 	(i)	 	Applicability (select one):

	 	o  (A)	 	Pre-Tax Contributions
only.
	 
	 	o  (B)	 	Roth Contributions only.

	 	(ii)	 	Eligibility: The automatic increase feature shall apply to (select one):

	 	o  (A)	 	all Eligible Employees who select this feature.
	 
	 	o  (B)	 	all Eligible Employees who do not waive out of this feature.
	 
	 	o  (C)	 	all Eligible Employees whose rate of
Elective Deferral Contributions is less than the maximum rate listed
in (iv) below.
	 
	 	o  (D)	 	all Eligible Employees who are automatically
enrolled in the Plan and any other Participant who selects this feature.
	 
	 	o  (E)	 	all Eligible Employees who are automatically enrolled in the Plan, all
Eligible Employees whose rate of Elective Deferral Contributions is less than
the maximum rate listed in (iv) below, and any other Participant who selects
this feature.

	 	(iii)	 	Timing: If applicable, the rate of the Elective
Deferral Contributions shall be increased during the month of (select one):

	 	o  (A)	 	           (enter month).

	 	 	 	If (B), (C), (D), or (E) is selected in B.(2)(a)(ii) above, a Participant’s
Pre-Tax Contribution

	 	o  1	 	will not automatically increase in the first year the
Participant is automatically enrolled in the  Plan during the
           month(s)
prior to the month in (A) above.
	 
	 	o  2	 	will automatically increase in the first year.

	 	o  (B)	 	the anniversary of the Participant’s enrollment in the automatic
increase feature, unless the Participant selects otherwise.
	 
	 	o  (C)	 	a Participant’s salary increase as provided in the Plan’s
administrative procedure.

	 	(iv)	 	Value:

	 	o  (A)	 	Increase           % of Plan Compensation each time an increase is applicable, to
a maximum of           % (unless the Participant selects otherwise).
	 
	 	o  (B)	 	Increase by the percentage selected by the Participant.

	 	(v)	 	Frequency: An increase will be made:

	 	o  (A)	 	every year unless the Participant selects otherwise.
	 
	 	o  (B)	 	every two years unless the Participant selects otherwise.
	 
	 	o  (C)	 	every three years unless the Participant selects otherwise.

	 	þ  (b)	 	Automatic increase shall not apply.

	C.	 	Employee After-Tax Contributions (select all that apply).

	 	o  (1)	 	Employee After-Tax Contributions are permitted under the Plan and may be made by a
Participant in an amount equal to a dollar amount or a percentage of the Participant’s Plan
Compensation, as specified by the Participant in his or her Employee After-Tax Contribution
Election, which may not exceed           % of his or her Plan Compensation.

14

 

	 	o  (2)	 	After-Tax Election limit for Highly Compensated Employees. If elected and in lieu of
the limit set forth in C(1), a Highly Compensated Employee may make an After-Tax Election that
may not exceed           % of his or her Plan Compensation.
	 
	 	 	 	Note: If item C(2) is selected, the inserted election limit percentage must be less than
the percentage inserted in C(1) above.
	 
	 	o  (3)	 	Separate Bonus Election — With respect to bonuses, such dollar amount or
percentage as specified by the Participant in his or her Employee After-Tax Election with
respect to such bonus.
	 
	 	þ  (4)	 	Employee After-Tax Contributions are not permitted under the Plan.

	D.	 	Rollover Contributions
	 
	 	 	Rollovers from Other Plans and IRAs: In addition to pre-tax distributions from a
qualified plan described in Code Section 401(a) or 403(a) or a Conduit IRA containing these
assets, the Plan, if an Eligible Rollover Distribution, (select one for each row):

	 	 	 	 	 	 	 	 	 
	Will	 	Will Not	 	 	 	 	 	 
	Accept	 	Accept	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	o

	 	þ
	 	 	(1	)	 	distributions of employee after-tax contributions from a qualified plan described in Code
Section 401(a) or 403(a), provided that such amounts are
transferred in a direct trustee-to-trustee transfer described
in Code Section 402(c)(2)(A).
	 
	 	 	 	 	 	 	 	 
	þ

	 	o
	 	 	(2	)	 	pre-tax distributions from an annuity contract described in Code Section 403(b).
	 
	 	 	 	 	 	 	 	 
	þ

	 	o
	 	 	(3	)	 	pre-tax distributions from 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.
	 
	 	 	 	 	 	 	 	 
	þ

	 	o
	 	 	(4	)	 	pre-tax distributions from an individual retirement account or annuity described in Code
Section 408(a) or (b) (including distributions from individual
retirement accounts described in Code Section 408(k) (“SEP”)).
	 
	 	 	 	 	 	 	 	 
	o

	 	þ
	 	 	(5	)	 	distributions from a simple retirement account described in Code Section 408(p) that are
eligible to be rolled over and are made after the 2-year period
beginning on the date such individual first participated in such
simple retirement account that are otherwise includible in gross
income.
	 
	 	 	 	 	 	 	 	 
	þ

	 	o
	 	 	(6	)	 	Roth distributions from a qualified plan described in Code Section 401(a).

	 	 	Participant Rollover Contributions (including direct Rollover Contributions in accordance with
Code Section 401(a)(31)), shall be subject to the Plan Administrator’s determination that such
amounts meet the requirements for Rollover Contributions.
	 
	E.	 	Making and Modifying an Election
	 
	 	 	An Eligible Employee shall be entitled to increase, decrease or resume his or her Elective
Deferral Contributions and/or Employee After-Tax Contributions with the following frequency
during the Plan Year (select one):

	 	o  (1)	 	annually.
	 
	 	o  (2)	 	semi-annually.
	 
	 	o  (3)	 	quarterly.
	 
	 	o  (4)	 	monthly.
	 
	 	þ  (5)	 	other (specify): daily (insert any period that is more frequent than
annually).

	 	 	Any such increase, decrease or resumption shall be effective as of the first payroll period
coincident with or next following the first day of each period set forth above. A Participant
may completely discontinue making Elective Deferral Contributions and/or Employee After-Tax
Contributions at any time and such discontinuance shall be effective as of the first payroll
period that begins after notice is provided to the Plan Administrator.

15

 

ARTICLE IV. Matching Contributions

This Article IV is effective only if Elective Deferral and/or Employee After-Tax Contributions are
permitted under the Plan.

	A.	 	Contribution and Allocation Formula (select all that apply):

	 	o  (1)	 	Discretionary Contributions:
	 
	 	 	 	If selected below, the Primary Employer may, in its sole discretion, determine the
Discretionary Matching Contribution applicable to all Employers equal to such a dollar
amount or percentage of Elective Deferral and/or Employee After-Tax Contributions, as
determined by the Primary Employer, which shall be allocated (select all that apply):

	 	o  (a)	 	in an amount equal to a discretionary percentage or amount of each
Participant’s Elective Deferral and/or Employee After-Tax Contributions to be
determined by the Employer for each Plan Year.
	 
	 	o  (b)	 	based on the ratio of each Participant’s Elective Deferral and/or Employee
After-Tax Contributions for the Plan Year to the total Elective Deferral and/or
Employee After-Tax Contributions of all Participants for the Plan Year. If selected,
Matching Contributions shall be subject to a maximum amount of (select one if
applicable):

	 	o  (i)	 	$           for each Participant.
	 
	 	o  (ii)	 	          % of each Participant’s Plan Compensation.

	 	o  (c)	 	in an amount up to           % or $           of each Participant’s first           % or $           of Plan
Compensation contributed as Elective Deferral and/or Employee After-Tax Contributions.
If any Matching Contribution remains, such amount shall be allocated to each such
Participant in an amount up to           % or $           of the next           % or $           of each Participant’s Plan
Compensation contributed as Elective Deferral and/or Employee After-Tax Contributions.
If any Matching Contribution remains after the application of the preceding sentence,
such amount shall be allocated to each such Participant in an amount up to           % or $           of the
next           % or $           of each Participant’s Plan Compensation contributed as Elective Deferral
and/or Employee After-Tax Contributions.
	 
	 	 	 	Any remaining Matching Contribution shall be allocated to each such Participant
in the ratio that such Participant’s Elective Deferral and/or Employee
After-Tax Contributions bear to the total Elective Deferral and/or Employee
After-Tax Contributions of all such Participants.
	 
	 	 	 	If selected, Matching Contributions shall be subject to a maximum amount
of (select one if applicable):

	 	o  (i)	 	$           for each Participant.
	 
	 	o  (ii)	 	          % of each Participant’s Plan Compensation.

16

 

	 	þ  (2)	 	Nondiscretionary Contributions:
	 
	 	 	 	If selected below, the Employer shall make Nondiscretionary Matching Contributions in an
amount equal to (select all that apply):

	 	o  (a)	 	          % of each Participant’s Plan Compensation contributed as Elective Deferral and/or
Employee After-Tax Contributions. If selected, Matching Contributions shall be subject to a
maximum amount of (select one if applicable):

	 	o  (i)	 	$           for each Participant.
	 
	 	o  (ii)	 	          % of each Participant’s Plan Compensation.

	 	þ  (b)	 	in an amount equal to 50% or $           of the first 5% or $          
of the
Participant’s Plan Compensation contributed as Elective Deferral and/or Employee After-Tax
Contributions,           % or $           of the next           % or $           of the Participant’s Plan Compensation contributed as
Elective Deferral and/or Employee After-Tax Contributions, and           % or $           of the next           % or $           of
the Participant’s Plan Compensation contributed as Elective Deferral and/or Employee
After-Tax Contributions.
	 
	 	 	 	If selected, Matching Contributions shall be subject to a maximum amount of
(select one if applicable):

	 	o  (i)	 	$           for each Participant.
	 
	 	o  (ii)	 	          % of each Participant’s Compensation.

	 	      (3)	 	Matching Calculation Period: The time interval that will be used to determine
the amount of the Matching Contributions shall be (select one):

	 	o  (a)	 	each payroll period.
	 
	 	þ  (b)	 	the Plan Year.

	 	 	 	Note: If Plan Year is selected and the funding frequency is more frequent than annually,
additional contributions (i.e. true-up contributions) shall be required after the last day
of the Plan Year.
	 
	 	      (4)	 	Matched Contributions: Elective Deferral and/or Employee After-Tax
Contributions indicated in Article III shall be eligible for Matching Contributions as
indicated below (select all that apply):

	 	 	 	 	 
	Discretionary	 	Nondiscretionary	 	 
	Matching Contribution	 	Matching Contribution	 	 
	Formula	 	Formula	 	 
	 	 	 	 	 

	o
	 	þ
	 	(a)     Elective Deferral Contributions.

	 	 	 	 	 

	o
	 	o
	 	(b)     Employee After-Tax Contributions.

	 	(c)	 	If more than one item in (a) or (b) is selected above, the Elective
Deferral and Employee After-Tax Matching Contributions formula will be applied
(select one, if applicable):

	 	o  (i)	 	concurrently as a separate formula for each feature.
	 
	 	o  (ii)	 	cumulatively as a single formula for both features.

17

 

	B.	 	Participants Eligible for Matching Contribution Allocation
	 
	 	 	The following Participants shall be eligible for an allocation to their Matching Contributions
Account (select one):

	 	þ  (1)	 	Payroll Basis Matching Contributions — Any Participant who makes Elective
Deferral and/or Employee After-Tax Contributions during the payroll period of
reference.
	 
	 	o  (2)	 	Annual Plan Year-end Matching Contribution — Any Participant who makes
Elective Deferral and/or Employee After-Tax Contributions during the Plan Year and who
satisfies the following requirements (select all that apply):

	 	o  (a)	 	was employed during the Plan Year.
	 
	 	o  (b)	 	was credited with at least
          
(no more than 1000) Hours of Service during the
Plan Year,
regardless of employment status on the last day of the Plan Year
	 
	 	o  (c)	 	was employed on the last day of the Plan Year.
	 
	 	o  (d)	 	was on a leave of absence on the last day of the Plan Year.
	 
	 	o  (e)	 	during the Plan Year died or became disabled while an Employee or terminated
employment after
attaining Early or Normal Retirement Age.
	 
	 	o  (f)	 	was credited with at least 501 Hours of Service and was employed on the last
day of the Plan Year.
	 
	 	o  (g)	 	was credited with at least 1000 Hours of Service and was employed on the last
day of the Plan Year.

18

 

ARTICLE V. Profit Sharing Contributions and Account Allocation

	A.	 	Profit Sharing Contributions
	 
	 	 	The Profit Sharing Contributions shall be (select one):

	 	þ  (1)	 	an amount, if any, as determined by the Employer, for each Participant eligible to
share in the allocation for a Plan Year.
	 
	 	o  (2)	 	          % of the Plan Compensation of each Participant eligible to share in the allocation for a
Plan Year.

	B.	 	Allocation of Contributions to Profit Sharing Contribution Accounts (select one):

	 	þ  (1)	 	Non-Integrated Allocation (select one):

	 	þ  (a)	 	The Profit Sharing Contributions Account of each Participant
eligible to share in the allocation for a Plan Year shall be credited with a
portion of the contribution, plus any forfeitures, if forfeitures are reallocated
to Participants, equal to the ratio that the Participant’s Plan Compensation for
the Plan Year bears to the Plan Compensation for that Plan Year of all
Participants eligible to share in the contribution.
	 
	 	o  (b)	 	A Profit Sharing Contribution may be allocated in an amount of $           for each
Participant eligible to share in the allocation for a Plan Year, on a            (specify period, such as weekly,
monthly,
quarterly, etc.) basis.

	 	o  (2)	 	Integrated Allocation Formulas.

	 	(a)	 	Allocation Formula (select one):

	 	o  (i)	 	Two-Step Integrated Allocation
	 
	 	o  (ii)	 	Four-Step Integrated Allocation

	 	(b)	 	The “Integration Level” shall be (select one):

	 	o  (i)	 	the Taxable Wage Base.
	 
	 	o  (ii)	 	$           (a dollar amount less than the Taxable Wage Base).
	 
	 	o  (iii)	 	          % of the Taxable Wage Base (not to exceed 99%).
	 
	 	o  (iv)	 	20% of the Taxable Wage Base.

19

 

	 	o  (3)	 	Special Allocation Methods (select one):

	 	o  (a)	 	Super-Integrated Allocation
	 
	 	 	 	For each Participant eligible to share in the allocation for a Plan Year,
contributions to Profit Sharing Contributions Accounts with respect to a Plan Year,
plus any forfeitures, if forfeitures are reallocated to Participants, shall be
allocated to the Profit Sharing Contributions Account of each eligible Participant
as follows:

	 	(i)	 	an amount equal to a percentage of each Participant’s Plan Compensation for
the Plan Year;
	 
	 	(ii)	 	plus an amount equal to a percentage of each Participant’s
Plan Compensation for the Plan Year in excess of the Super-Integration level
(defined below).
	 
	 	 	 	Note: If this Plan is Top-Heavy, each eligible Participant employed on
the last day of the Plan Year will be allocated a Top-Heavy minimum
contribution up to 3% of 415 Limitation Compensation in accordance with
Section 4.4.3 of the Base Plan Document.
	 
	 	 	 	For purposes of (ii) above, the Super-Integration level shall be (select one):

	 	o  (A)	 	$           (a dollar amount less than the Compensation Limit under Code Section
401(a)(17).
	 
	 	o  (B)	 	          % of the Compensation Limit under Code Section 401(a)(17) (not to exceed
100%).
	 
	 	o  (C)	 	          % of the Taxable Wage Base (not to exceed 100%).

	 	o  (b)	 	Allocation by Classification of Participants :
	 
	 	 	 	The Profit Sharing Account of an Eligible Participant who is a member of a
classification of Participants shall be credited with a portion of the contribution
made for that classification, plus any forfeitures, if forfeitures are reallocated
to Participants, equal to the ratio of that Eligible Participant’s Plan
Compensation for the Plan Year as it bears to the Plan Compensation of all Eligible
Participants in that classification for that Plan Year. “Eligible Participant”
means a Participant who is eligible to share in the allocation of contributions
with respect to the Plan Year of reference. The allocation formula applies to the
following classifications of Participants (select one):

	 	o  (i)	 	Non-Highly Compensated Employees and Highly Compensated Employees.
	 
	 	o  (ii)	 	Other: Specify groups by category of participant, including both HCEs and
NHCEs on or
before the due date of the Employer’s tax return for the year of allocation
through written instructions from the Primary Employer to the Plan
Administrator or Trustee.

	 	 	 	Note: The specific categories of participants should be such that resulting
allocations are provided in a definite predetermined formula that complies with
Treas. Reg. 1.401-1(b) (1) (ii). The number of allocation rates must not exceed the
maximum allowable number of allocation rates. Highly Compensated Employees may each
be in separate allocation groups. Eligible Non-highly Compensated must be grouped
using allocation rates specified in plan language. The grouping of eligible
Non-highly Compensated Employees must be done in a reasonable manner and should
reflect a reasonable classification in accordance with Treas. Reg. 1.410(b)-4(b).
Also, standard interest rate and standard mortality table assumptions in accordance
with Treas. Reg. 1.401(a) (4)-12 must be used when testing the Plan for
satisfaction of nondiscrimination requirements. In the case of self-employed
individuals (i.e., sole proprietorships or partnerships), the requirements of
Treas. Reg. 1.401(k)-1(a) (6) continue to apply, and the allocation method should
not be such that a cash or deferred election is created for a self-employed
individual as a result of application of the allocation method.

20

 

	 	o  (c)	 	Age-based Allocation:
	 
	 	 	 	The Employer will allocate the Employer contributions, plus any forfeitures, if
forfeitures are reallocated to Participants, in the same ratio that each
Participant’s Benefit Factor for the Plan Year bears to the sum of the Benefit
Factors of all Participants for the Plan Year. A Participant’s Benefit Factor
is his or her Plan Compensation for the Plan Year multiplied by the actuarial
factor required by the Internal Revenue Service.

	 	(i)	 	Interest rate:                    % (must be between 7.5% and 8.5%)
	 
	 	(ii)	 	Mortality table:               

	C.	 	Participants Eligible for Profit Sharing Contribution Allocation
	 
	 	 	A Participant who satisfies any of the following requirements shall be eligible for an
allocation of a Profit Sharing Contribution (select all that apply):

	 	o  (1)	 	was employed during the Plan Year.

	 	 	Note: Item C(1) must be selected if Profit Sharing Contributions are allocated on a
periodic basis during the Plan Year.

	 	o  (2)	 	was credited with at least           
(no more than 1000) Hours of Service during the Plan
Year, regardless of
employment status on the last day of the Plan Year.
	 
	 	þ  (3)	 	was employed on the last day of the Plan Year.
	 
	 	o  (4)	 	was on a leave of absence on the last day of the Plan Year.
	 
	 	o  (5)	 	during the Plan Year died or became disabled while an Employee or terminated
employment after attaining
Early or Normal Retirement Age.
	 
	 	o  (6)	 	was credited with at least 501 Hours of Service and was employed on the last day of
the Plan Year.
	 
	 	o  (7)	 	was credited with at least 1000 Hours of Service and was employed on the last day of
the Plan Year.

21

 

ARTICLE VI. Prevailing Wage Contributions

	A.	 	Prevailing Wage Contributions (as defined in Section 3.13 of the Base Plan Document)
(select one):

	 	o  (1)	 	shall be made pursuant to the contract(s) listed in Appendix A and shall:

	 	o  (a)	 	be considered a QNEC.
	 
	 	o  (b)	 	not be considered a QNEC.

	 	þ  (2)	 	shall not be made.

	B.	 	Prevailing Wage Offset
	 
	 	 	The Prevailing Wage Contribution made on behalf of a Participant for the Plan Year will (select
one if A(1) is selected above):

	 	o  (1)	 	Offset the amount allocated or contributed on behalf of such Participant under Article V
for the Plan Year.
	 
	 	o  (2)	 	Not offset the amount allocated or contributed on behalf of such Participant under
Article V for the Plan Year.

ARTICLE VII. ADP Test and ACP Test

	A.	 	Actual Deferral Percentage Test and Actual Contribution Percentage Test Election
	 
	 	 	The ADP Test of Section 3.4.2 (B) of the Base Plan Document and the ACP Test under Section 3.5
(A) of the Base Plan Document shall be applied using the ADP and ACP of Non-Highly Compensated
Employees for the (select one):

	 	o  (1)	 	current Plan Year effective for Plan Years beginning on and after           .
	 
	 	þ  (2)	 	immediately preceding Plan Year.

	 	 	Note: An election to use the current Plan Year data may not be changed unless (1) the Plan has
been using the current year testing method for the preceding 5 Plan Years, or if less, the
number of Plan Years the Plan has been in existence; or (2) the Plan otherwise meets one of the
requirements of IRS Notice 98-1 (or superseding guidance) for changing from the current year
testing method. Legal advice should be obtained prior to changing a current year data election
under this Article.
	 
	 	 	Note: If the Safe Harbor CODA option Article VIII is selected, the ADP Test and ACP Test will
not be applicable unless otherwise required.

	B.	 	First Plan Year Elections (ADP)
	 
	 	 	For purposes of Section 3.4.2(B), the ADP for Non-Highly Compensated Employees for the first
Plan Year the Plan permits any Participant to make Elective Deferral Contributions (if this
Plan is not a successor plan) (select one):

	 	o  (1)	 	shall be the Plan Year ADP.
	 
	 	o  (2)	 	shall be 3%.
	 
	 	þ  (3)	 	is not applicable.

	C.	 	First Plan Year Elections (ACP)
	 
	 	 	For purposes of Section 3.5(A), the ACP for Non-Highly Compensated Employees for the first Plan
Year the Plan permits any Participant to make Employee After-Tax and/or Matching Contributions
(if this Plan is not a successor plan) (select one):

	 	o  (1)	 	shall be the Plan Year ACP.
	 
	 	o  (2)	 	shall be 3%.
	 
	 	þ  (3)	 	is not applicable.

22

 

ARTICLE VIII. Safe Harbor

	A.	 	Safe Harbor Contributions
	 
	 	 	The Safe Harbor Method CODA provisions of Section 3.14 of the Base Plan Document:

	 	o  (1)	 	apply.
	 
	 	þ  (2)	 	do not apply.

	B.	 	Safe Harbor Contribution Participation Requirements
	 
	 	 	The Safe Harbor Contribution participation requirements are (select one):

	 	o  (1)	 	Attainment of age            (maximum 21) and completion of            Year of Service (not to exceed 1 year).
	 
	 	 	 	If 1 Year of Service is selected, Hours of Service for eligibility purposes shall be
based on (select one):

	 	o  (a)	 	hourly records method.
	 
	 	 	 	For the purpose of determining Hours of Service, (select one):

	 	o  (i)	 	only actual hours for which an Employee is paid or entitled to
payment shall be counted.
	 
	 	o  (ii)	 	an Employee shall be credited with 45 Hours of
Service if under Section 1.51 of the Base Plan Document such Employee
would be credited with at least 1 Hour of Service during the week.

	 	o  (b)	 	elapsed time method.

	 	o  (2)	 	Same as Elective Deferral Contributions (see Article II).

	 	 	Note: The Hours of Service method selected to determine eligibility for Elective Deferral
Contributions under Article I H.(1) shall apply to determine eligibility for Safe Harbor
Contributions unless there is a 1 Year of Service requirement.
	 
	C.	 	Safe Harbor Contribution Eligibility
	 
	 	 	The Safe Harbor Contribution eligibility will be (select one):

	 	o  (1)	 	Only Non-Highly Compensated Participants.
	 
	 	o  (2)	 	All Participants.

	D.	 	ADP/ACP Test Safe Harbor Contributions
	 
	 	 	The Employer contribution used to satisfy the Safe Harbor provision (select one):

	 	o  (1)	 	Basic Matching Contributions
	 
	 	 	 	The Employer shall make Basic Matching Contributions equal to 100% of the first 3% of
the Eligible Participant’s Plan Compensation contributed as Elective Deferral
Contributions and 50% of the next 2% of the Eligible Participant’s Plan Compensation
contributed as Elective Deferral Contributions and shall be based upon (select one):

	 	o  (a)	 	each payroll period.
	 
	 	o  (b)	 	the Plan Year.

	 	o  (2)	 	Enhanced Matching Contributions
	 
	 	 	 	The Employer shall make Enhanced Matching Contributions equal to           % of the first           % of the
Eligible Participant’s Plan Compensation contributed as Elective Deferral Contributions,
          % of the next           % of the Eligible Participant’s Plan Compensation contributed as Elective
Deferral Contributions, and           % of the next           % of the Eligible Participant’s Plan
Compensation contributed as Elective Deferral Contributions and shall be based upon
(select one):

23

 

	 	o  (a)	 	each payroll period.
	 
	 	o  (b)	 	the Plan Year.

	 	 	 	Note: The blanks in (2) above must be completed so that, at any rate of Elective
Deferral Contributions, the Matching Contribution is at least equal to the contribution
that would otherwise be made under (1) above (the Basic Safe Harbor Matching
Contribution). Additionally, the rate of match cannot increase as Elective Deferral
Contributions increase. Finally, if Matching Contributions are made with respect to
Elective Deferral Contributions that exceed 6% of Eligible Participants’ Plan
Compensation, the Plan will not meet the requirements for the ACP Test Safe Harbor
provisions and an ACP Test would have to be performed.

	 	o  (3)	 	Safe Harbor Nonelective Contributions

	 	o  (a)	 	The Employer will make a Safe Harbor Nonelective Contribution to the Account of
each Eligible Participant in an amount equal to           % (at least 3%) of the Eligible
Participant’s Plan Compensation for the Plan Year.
	 
	 	o  (b)	 	The Employer may make a Safe Harbor Nonelective Contribution to the
Account of each Eligible Participant in an amount equal to           % (at least 3%) of the
Eligible Participant’s Plan Compensation for the Plan Year.

	 	 	 	Note: The Safe Harbor Nonelective Contribution cannot be allocated on an integrated
basis.

	 	 	Note: If Plan Year is selected in (1) or (2) above and the funding frequency is more frequently
than annually, a “true-up” contribution shall be required after the last day of the Plan Year.
Additionally, if this Plan does not satisfy the notification, contribution and vesting
requirements of a Safe Harbor plan, then no subsequent Safe Harbor Contributions will be made
for that Plan Year and ADP and/or ACP testing may be required for that Plan Year.

	E. 	o	 	 If checked, the ADP/ACP Test Safe Harbor Contributions will be made to the following
Defined Contribution Plan of the Employer:           

ARTICLE IX. Vesting 

	A.	 	Employer Contribution Accounts

	 	(1)	 	A Participant shall have a vested percentage in his or her Matching Contribution
and Profit Sharing Contribution Account(s), if applicable, in accordance with the
following schedule (select one for each column as applicable):

	 	 	 	 	 	 	 	 	 
	Matching	 	Profit Sharing	 	 	 	 
	Contributions	 	Contributions	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	o
	 	o
	 	(a)
	 	100% vesting immediately upon participation.
	 
	 	 	 	 	 	 
	þ
	 	 	 	 	 	(b)
	 	100% after 3 (not more than 3) years of Vesting Service.
	 
	 	 	 	 	 	 
	
	 	þ
	 	(c)
	 	100% after 3 (not more than 5) years of Vesting Service.
	 
	 	 	 	 	 	 
	o
	 	o
	 	(d)
	 	Graded vesting schedule:
	          %
	 	          %
	 	 	 	immediately upon participation;
	          %
	 	          %
	 	 	 	after 1 year of Vesting Service;
	          %
	 	          %
	 	 	 	after 2 years of Vesting Service;
	          %
	 	          %
	 	 	 	after 3 years of Vesting Service;
	          %
	 	          %
	 	 	 	after 4 years of Vesting Service;
	          %
	 	          %
	 	 	 	after 5 years of Vesting Service;
	100%
	 	          %
	 	 	 	after 6 years of Vesting Service;
	100%
	 	100%	 	 	 	after 7 years of Vesting Service.

	 	 	 	Note: the vesting schedule that applies to (1) Matching Contributions must satisfy
either a 3-year cliff vesting schedule in A. (1)(b) or a “2-to-6- year graded vesting
schedule” in A. (1)(d) and (2) Profit Sharing Contributions must satisfy either a
5-year cliff vesting schedule in A. (1)(c) or a “3-to-7- year graded vesting schedule”
in A. (1)(d). See Section 4.1.3 of the Base Plan Document for the definitions of a
“2-to-6- year graded vesting schedule” and a “3-to-7- year graded vesting schedule”.

24

 

	 	(2)	 	EGTRRA Vesting for Matching Contributions
	 
	 	 	 	The elections below represent the vesting schedule for Matching Contributions as elected
in the good faith EGTRRA amendment.

	 	(a)	 	Applicability: An amendment to change the vesting schedule for Matching
Contributions under EGTRRA (select one):

	 	þ  (i)	 	was not required.
	 
	 	o  (ii)	 	was required (select this option if, as of the end of the 2001 Plan
Year, the Plan had Matching Contributions).

	 	(b)	 	Effective Date for Vesting of Matching Contributions: If a vesting schedule
was selected in (2)(a)(ii) above, the EGTRRA vesting schedule:

	 	(i)	 	for Active Participants as of the first day of the 2002 Plan Year (select one):

	 	o  (A)	 	applied to Matching Contributions allocated for Plan Years beginning after
December 31, 2001.
	 
	 	o  (B)	 	applied to all Matching Contributions, including Matching Contributions accrued
prior to the Plan Year beginning after December 31, 2001.

	 	(ii)	 	for a Participant who does not have an Hour of Service in a Plan Year
beginning after 2001, (select one):

	 	o  (A)	 	shall not apply to Matching Contributions allocated or accrued in Plan Years
beginning before the first day of the Plan Year beginning in 2002.
	 
	 	o  (B)	 	shall apply to all Matching Contributions, including Matching
Contributions allocated or accrued in Plan Years beginning before the first day
of the Plan Year beginning in 2002.

	 	(3)	 	Early Retirement Vesting
	 
	 	 	 	Upon attainment of Early Retirement Age (if selected in Article I.D(2)), a Participant (select
one):

	 	o  (a)	 	shall
	 
	 	o  (b)	 	shall not

	 	 	 	become 100% vested solely due to attainment of Early Retirement Age.

25

 

	B.	 	Allocation of Forfeitures
	 
	 	 	Forfeitures, if any, shall be (select one from each applicable column):

	 	 	 	 	 	 	 
	Matching	 	Profit Sharing	 	 
	Contributions	 	Contributions	 	 
	 	 	 	 	 	 	 

	o	 	o	 	(1)	 	first, used to reduce Employer contributions; second, any remaining
forfeitures shall be used to offset the Plan’s administrative
costs; and third, any remaining forfeitures shall be
allocated to Participants.

	 	 	 	 	 	 	 

	þ	 	þ	 	(2)	 	first, used to offset the Plan administrative costs; second, any remaining
forfeitures shall be used to reduce Employer contributions;
and third, any remaining forfeitures shall be allocated to
Participants.

	 	 	 	 	 	 	 

	o	 	o	 	(3)	 	allocated to Participants in accordance with the applicable formula elected by
the Employer.

	C.	 	Vesting Service
	 
	 	 	For purposes of determining Years of Service for Vesting Service (select (1) or (2) and/or
(3)):

	 	þ  (1)	 	All Years of Service shall be included.
	 
	 	o  (2)	 	Years of Service before the Participant attained age 18 shall be excluded.
	 
	 	o  (3)	 	Service with the Employer prior to the effective date of the Plan shall be excluded.

ARTICLE X. Withdrawals, Distributions and Loans

	A.	 	In-Service Withdrawals
	 
	 	 	In-Service Withdrawals are (select one):

	 	þ  (1)	 	permitted and may be made from any of the Participant’s vested Accounts,
at any time upon or after the occurrence of the following events (select one):

	 	þ  (a)	 	a Participant’s attainment of age 59 1/2 (no lower than 591/2).
	 
	 	o  (b)	 	January 1 of the calendar year in which the Participant attains age 701/2.

	 	o  (2)	 	not permitted (subject to Section 5.7.3 of the Base Plan Document).

	B.	 	Hardship Distributions
	 
	 	 	Hardship Distributions are (select one):

	 	þ  (1)	 	permitted and shall be made from the vested portion of a Participant’s Accounts (other
than his or her
Qualified Nonelective Contributions Account, Qualified Matching Contributions Account,
QVEC Account, earnings accrued after December 31, 1988 on the Participant’s Elective
Deferral Contributions, or Safe Harbor Contributions under Section 3.14 as provided in
Section 5.9.1 of the Base Plan Document.
	 
	 	o  (2)	 	not permitted.

	C.	 	Cash-Out of Small Amounts

	 	  (1)	 	 	Value of Account Balance to be Cashed-Out (select one):

	 	þ  (a)	 	If the value of the Participant’s nonforfeitable Account Balance as so
determined is $5,000.00 (not to exceed $5,000) or less, the Plan shall
distribute the Participant’s entire nonforfeitable Account Balance.
	 
	 	o  (b)	 	The Plan shall not distribute the Participant’s nonforfeitable
Account Balance until such time as the Participant requests a distribution.

26

 

	 	(2)	 	Rollovers Disregarded in Involuntary Cash-outs: For purposes of Section
5.6.1 of the Base Plan Document, the value of a Participant’s nonforfeitable Account
Balance shall (select one):

	 	o  (a)	 	include
	 
	 	þ  (b)	 	exclude

	 	 	 	the portion of the Account Balance that is attributable to Rollover Contributions (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).

	D.	 	Forms of Distributions

	 	(1)	 	In addition to the distribution form in Section 6.1.1 and 6.1.2 of the Base Plan Document
(select one):

	 	þ  (a)	 	installments are offered as an optional form of benefit.
	 
	 	o  (b)	 	installments are not offered as an optional form of benefit.

	 	(2)	 	Distributions shall be made (select one):

	 	o  (a)	 	in cash.
	 
	 	þ  (b)	 	in cash or in-kind.

	E.	 	Loans
	 
	 	 	Loans from the following designated sources are (select one, as applicable):

	 	 	 	 	 	 	 
	non-Profit 
Sharing 	 	Profit Sharing	 	 
	Contributions	 	Contributions	 	 
	 	 	 	 	 	 	 

	þ	 	þ	 	(1)	 	permitted

	o	 	o	 	(2)	 	not permitted

ARTICLE XI. Trust

	o	 	 If this item is checked, the Employer elects to establish a Group Trust consisting of such
Plan assets as shall from time to time be transferred to the Trustee pursuant to Article X of
the Base Plan Document. The Trust Fund shall be a Group Trust consisting of assets of this
Plan plus assets of the following plans of the Primary Employer or of an Affiliate:
	 
	 	 	______________
	 
	 	 	______________
	 
	 	 	______________
	 
	 	 	______________

ARTICLE XII. Miscellaneous

	A.	 	Identification of Sponsor
	 
	 	 	The address and telephone number of the Sponsor’s authorized representative is PO Box 1510,
Pennington, New Jersey 08534-1510; 800-434-6945. This authorized representative can answer
inquiries regarding the adoption of the Plan, the intended meaning of any Plan provisions, and
the effect of the opinion letter.
	 
	 	 	The Sponsor will inform the Primary Employer of any amendments made to the Plan or the
discontinuance or abandonment of the Plan. In order to receive notification, the Primary
Employer hereby agrees to promptly notify the Sponsor at the address indicated above of any
change in company contact, business address, or intent to terminate use of the Merrill Lynch
Prototype Plan.

27

 

	B.	 	Plan Registration

	 	(1)	 	Initial Registration
	 
	 	 	 	This Plan must be registered with the Sponsor, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, in order to be considered a Prototype Plan by the Sponsor. Registration is
required so that the Sponsor is able to provide the Administrator with documents, forms and
announcements relating to the administration of the Plan and with Plan amendments and other
documents, all of which relate to administering the Plan in accordance with applicable law
and maintaining compliance of the Plan with the law.
	 
	 	 	 	The Primary Employer and all participating Employers must sign and date the Adoption
Agreement. Upon receipt and acceptance by Merrill Lynch, Pierce, Fenner & Smith
Incorporated of the Adoption Agreement, the Plan will be registered as a Prototype Plan of
Merrill Lynch, Pierce, Fenner & Smith Incorporated. An authorized representative will
countersign the Adoption Agreement and a copy of the countersigned Adoption Agreement will
be returned to the Primary Employer. Countersignature of the Adoption Agreement
acknowledges receipt of the Adoption Agreement by Merrill Lynch, Pierce, Fenner & Smith
Incorporated, but does not represent that the Sponsor has reviewed or assumes
responsibility for the provisions selected within the Adoption Agreement. Merrill Lynch,
Pierce, Fenner & Smith Incorporated reserves the right to reject any Adoption Agreement.
	 
	 	(2)	 	Registration Renewal
	 
	 	 	 	Annual registration renewal is required in order for the Primary Employer to continue to
receive any and all necessary updating documents. The Sponsor reserves the right to charge
a registration renewal fee and change such fee from time to time. The Sponsor will notify
the Primary Employer of any registration renewal fee and of any change to such registration
renewal fee.

	C.	 	Prototype Replacement Plan
	 
	 	 	This Adoption Agreement is a replacement prototype plan for (1) Merrill Lynch Prototype Defined
Contribution Plan — Non-Standardized 401(k) Profit Sharing Plan Adoption Agreement # 03-004.
	 
	D.	 	Reliance
	 
	 	 	Each Employer may rely on an opinion letter issued by the Internal Revenue Service as
evidence that the Plan is qualified under Code § 401 only to the extent provided in Rev.
Proc. 2005-16, 2005-10 I.R.B.
	 
	 	 	Each Employer may not rely on the opinion letter in certain other circumstances or with respect
to certain qualification requirements, which are specified in the opinion letter issued with
respect to the Plan and in Rev. Proc. 2005-16, 2005-10 I.R.B.
	 
	 	 	In order to have reliance in such circumstances or with respect to such qualification
requirements, application for a determination letter must be made to Employee Plans
Determinations of the Internal Revenue Service.
	 
	E.	 	Plan Document
	 
	 	 	This Adoption Agreement may only be used in conjunction with the Merrill Lynch Prototype
Defined Contribution Plan and Trust Base Plan Document #03.
	 
	F.	 	Proper Completion of Adoption Agreement
	 
	 	 	Failure to properly fill out this Adoption Agreement may result in the failure of the Plan to
qualify under Internal Revenue Code Section 401(a). Each participating Employer and its
independent legal and tax advisors are responsible for the adoption and qualification of this
Plan and any related tax consequences.

28

 

PRIMARY EMPLOYER’S SIGNATURE

The undersigned hereby adopts the Plan and Trust

	 	 	 	 	 
	Name of the Primary Employer:
	 	SXC Health Solutions, Inc.
	 	 
	 	 	 	 	 
	 
	 	/s/ Jeff Park	 	 
	 
	 	 	 	 
	 
	 	Authorized Signature	 	 
	 	 	 	 	 
	 
	 	Jeff Park	 	 
	 
	 	 	 	 
	 
	 	Print Name	 	 
	 	 	 	 	 
	 
	 	EVP, Finance & CFO	 	 
	 
	 	 	 	 
	 
	 	Title	 	 

Dated: October 30, 2009

PARTICIPATING EMPLOYER(S) SIGNATURE(S)

The undersigned hereby adopts the Plan and Trust.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name of Affiliate	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1.

	 	informedRx, Inc.
	 	Authorized Signature:	 	/s/ Jeff Park 	 
	 

	 	 	 	 	 	Print Name:
	 	Jeff
Park
	 
	 

	 	 	 	 	 	Title:
	 	EVP, Finance & CFO
	 
	 

	 	 	 	 	 	Date:
	 	10-30-09	 
	 
	 	 	 	 	 	 	 	 	 	 
	2.

	 	Health Business Systems, Inc.
	 	Authorized Signature:	 	/s/ Jeff Park 	 
	 

	 	 	 	 	 	Print Name:
	 	Jeff
Park
	 
	 

	 	 	 	 	 	Title:
	 	EVP, Finance & CFO
	 
	 

	 	 	 	 	 	Date:
	 	10-30-09	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	3.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	4.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

29

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name of Affiliate	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	5.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	6.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	7.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	8.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	9.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	10.

	 	 
	 	Authorized Signature:	 	  	 
	 

	 	 	 	 	 	Print Name:
	 	
 
	 
	 

	 	 	 	 	 	Title:
	 	 
	 
	 

	 	 	 	 	 	Date:
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

Only an Affiliate may adopt this Plan. The Plan may only be adopted or restated
by a duly authorized person on behalf of the Primary Employer and as
permitted by the Primary Employer. By adopting this Plan, each
participating Employer delegates to the Primary Employer the authority to
amend the Plan.

TO BE COMPLETED BY MERRILL LYNCH:

Sponsor Acknowledgement:

Subject to the terms and conditions of the Prototype Plan and this
Adoption Agreement, Merrill Lynch, Pierce, Fenner & Smith Incorporated as
the Prototype Sponsor acknowledges receipt of this Adoption Agreement.

Authorized Signature: /s/ Robert S. Kaplan

30

 

MERRILL LYNCH BANK & TRUST CO., FSB AS TRUSTEE

To be completed by Merrill Lynch Bank & Trust Co., FSB:

Acceptance By Trustee:

The undersigned hereby accept all of the terms, conditions, and obligations of appointment as
Trustee under the Plan, Trust
and this Adoption Agreement. If the Primary Employer has selected a Group Trust in this Adoption
Agreement, the
undersigned Trustee(s) shall be the Trustee(s) of the Group Trust.

	 	 	 	 	 
	SEAL 	Bank of America N. A Successor by Merger to
 MERRILL LYNCH BANK & TRUST CO., FSB, as Trustee

 	 
	 	By:  	/s/ A. Scott Roberto	 
	 	 	A. Scott Roberto/Trust Officer	 
	 	 	 	 
	 

Dated: November 6, 2009

31

 

THIS APPENDIX DOES NOT APPLY

APPENDIX A: PREVAILING WAGE CONTRACTS

Appendix to the            pursuant to Section 3.13 of the Base Plan Document #03;

	I.	 	Eligible Employees
	 
	 	 	The Employer will make Prevailing Wage Contributions on behalf of:

(Enter all applicable provisions for Participation in this Prevailing Wage feature.)
	 
	II.	 	Prevailing Wage Contributions and Allocation
	 
	 	 	The amount of the Prevailing Wage Contribution according to the applicable law and contract
described herein shall be:
	 
	III.	 	Vesting

	 	o  A.	 	100% vesting immediately upon Participation in the Prevailing Wage.
	 
	 	o  B.	 	Vesting schedule

	 	o  (1)	 	100% after            years of Vesting Service.
	 
	 	o  (2)	 	graded vesting schedule:

	 	          %	 	immediately upon participation;
	 
	 	          %	 	after 1 year of Vesting Service;
	 
	 	          %	 	after 2 years of Vesting Service;
	 
	 	          %	 	after 3 years of Vesting Service;
	 
	 	          %	 	after 4 years of Vesting Service;
	 
	 	          %	 	after 5 years of Vesting Service;
	 
	 	          %	 	after 6 years of Vesting Service;
	 
	 	100%	 	after 7 years of Vesting Service.

	 	 	 	Note: III.B. (1) and (2) may only be completed using years or percentages, as
applicable, that are compliant with Code Section 411 at all relevant times.

32

 

THIS APPENDIX DOES NOT APPLY

APPENDIX B: COLLECTIVELY BARGAINED EMPLOYEES

Appendix to the            pursuant to Section 3.1.11 of the Base Plan Document #03;

Notwithstanding any provision of the Plan to the contrary, for contributions made under the Plan on
behalf of Employees covered by a collective bargaining agreement where Plan benefits were the
subject of good faith bargaining, the provisions of the Plan as otherwise reflected in the Base
Plan Document and the Adoption Agreement shall apply to all such Employees, unless otherwise
specified below.

33

 

THIS APPENDIX DOES NOT APPLY

 APPENDIX C: PARTICIPATING EMPLOYERS

Participating Employers of the

SXC Health Solutions, Inc. 401(k) Plan

List participating employers.

34

 

THIS APPENDIX DOES NOT APPLY

APPENDIX D: MONEY PURCHASE PENSION PLAN MERGER OR AMENDMENT APPENDIX TO THE SXC

Health Solutions, Inc. 401 (k) Plan

The provisions of this Appendix D shall apply to the portion of a Participant’s Account that is
attributable to the amount transferred from a money purchase pension plan (the “Transferor Plan”)
as a result of an amendment of the Transferor Plan and merger of the Transferor Plan with this
Plan. Furthermore, as a result of such merger, no further money purchase pension plan contributions
shall be made. (Nonelective employer contributions shall be made only if and to the extent
otherwise provided in the Adoption Agreement.) All amounts attributable to the Transferor Plan
(including earnings and losses thereon) shall be separately accounted for under this Plan and
subject to the further provisions of this Appendix D.

	I.	 	Vesting/Retirement

	 	A.	 	Vesting
	 
	 	 	 	A Participant shall have a vested percentage in his or her Account attributable to amounts
transferred from the Transferor Plan, if applicable, in accordance with the following
(select one):

	 	o  (1)	 	100% vesting immediately upon the effective date of the merger of the Transferor
Plan with this Plan.
	 
	 	o  (2)	 	the Transferor Plan’s vesting schedule, which, immediately prior to the effective
date of the merger, was as follows:

	 	o  (a)	 	100% after years of Vesting Service.
	 
	 	o  (b)	 	graded vesting schedule:

	 	          % 	 	immediately upon participation;
	 
	 	          % 	 	after 1 year of Vesting Service;
	 
	 	          % 	 	after 2 years of Vesting Service;
	 
	 	          % 	 	after 3 years of Vesting Service;
	 
	 	          % 	 	after 4 years of Vesting Service;
	 
	 	          % 	 	after 5 years of Vesting Service;
	 
	 	          % 	 	after 6 years of Vesting Service;
	 
	 	100% 	 	after 7 years of Vesting Service;

	 	 	Note: I.A. (2)(a) and (b) may only be completed using years or percentages, as
applicable, that are compliant with Code Section 411 at all relevant times.

	 	o  (3)	 	the Plan’s Profit Sharing Contribution vesting schedule, as specified in
Article IX of the Adoption Agreement.
	 
	 	o  (4)	 	the Plan’s Matching Contribution vesting schedule, as specified in Article IX of
the Adoption Agreement.
	 
	 	Note: If the vesting schedule applicable to the amounts attributable to the Transferor
Plan is amended due to completion of this Section I., the provisions of Section 11.1.4 of
the Base Plan Document shall apply.

	 	B.	 	Early Retirement Age

	 	(1)	 	Early Retirement Age for assets transferred from the Money Purchase Plan (select one):

	 	o  (a)	 	shall be subject to the provisions under Article I D of this
Plan (may be no less generous than Early Retirement Age under the Money Purchase
Plan).
	 
	 	o  (b)	 	shall be subject to the Early Retirement Age provisions of the Money Purchase
Plan.
	 
	 	o  (c)	 	shall not be permitted.

35

 

	 	(2)	 	If Early Retirement was permitted under the Money Purchase Plan, Early Retirement Age
meant (select one, if applicable):

	 	o  (a)	 	attained age            .
	 
	 	o  (b)	 	attained age            and completed            Years of Service.
	 
	 	o  (c)	 	attained age            and completed            Years of Service as a Participant.
	 
	 	o  (d)	 	other:            (insert provision from prior plan).

	 	(3)	 	Upon attainment of Early Retirement Age, a Participant (select one, if applicable):

	 	o  (a)	 	shall
	 
	 	o  (b)	 	shall not

	 	 	 	become 100% vested solely due to attainment of Early Retirement Age.

	 	C.	 	Normal Retirement Age

	 	(1)	 	Normal Retirement Age for assets transferred from the Money Purchase Plan (select one):

	 	o  (a)	 	shall be subject to the provisions under Article I J of this Plan (may be no less
generous than the Normal Retirement Age under the Money Purchase Plan).
	 
	 	o  (b)	 	shall be subject to the Normal Retirement Age provisions of the Money Purchase Plan.

	 	(2)	 	Normal Retirement Age under the Money Purchase Plan was (select one, if applicable):

	 	o  (a)	 	attainment of age            (not more than 65).
	 
	 	o  (b)	 	attainment of age            (not more than 65) by the Participant or if later, the            anniversary (not
more than the 5th) of the earlier of the first day on which the Eligible Employee
performed an Hour of Service or the first day of the Plan Year in which the
Eligible Employee became a Participant.
	 
	 	o  (c)	 	attainment of age            (not more than 65) by the Participant or the            anniversary (not more than
the 5th) of the first day of the Plan Year in which the Eligible Employee
became a Participant, whichever is later.

36

 

	II.	 	Forfeitures
	 
	 	 	Any forfeitures attributable to the Transferor Plan after the effective date of the merger
(“Transferor Plan forfeitures”) shall be (select one):

	 	o  A.	 	first, used to reduce Employer contributions; second, any remaining forfeitures
shall be used to offset the Employer’s Plan administrative costs; and third, any remaining
forfeitures shall be allocated to Participants.
	 
	 	o  B.	 	first, used to offset the Employer’s Plan administrative costs; second, any remaining
forfeitures shall be used to reduce Employer contributions; and third, any remaining forfeitures shall be allocated to Participants.
	 
	 	o  C.	 	allocated to Participants in accordance with the applicable formula elected by the
Employer.

	III.	 	Election of Optional Forms/Application of Joint and Survivor Annuity Options
	 
	 	 	The amount of a Participant’s Account attributable to the Transferor Plan shall be subject to
the provisions of Section 6.1.1 of the Base Plan Document and this Plan shall be treated as a
transferee plan (and not as a Non-QJSA Profit Sharing Plan) solely with respect to that portion
of the Participant’s Account for purposes of Code Sections 401(a)(11) and 417 and the
regulations thereunder.

	IV.	 	Distribution Options

	 	A.	 	In-Service Withdrawals
	 
	 	 	 	In-Service Withdrawals are (select one):

	 	o  (1)	 	permitted and may be made from the Participant’s vested Account, at any time upon or after the January 1 of the calendar year in which the Participant attains age 701/2, or upon Normal Retirement Age, whichever is earlier.
	 
	 	o  (2)	 	are not permitted (subject to Section 5.7.3 of the Base Plan Document).

	 	B.	 	To the extent any optional form of benefit was available under the Transferor Plan
and is protected by Code Section 411(d)(6), and the regulations issued thereunder, such optional form of benefit
shall be available with respect to the portion of the Participant’s Account attributable to the amount from the
Transferor Plan as provided in the Addendum to this Adoption Agreement.

	V.	 	Loans

	 	A.	 	The portion of a Participant’s Account attributable to the amount from the Transferor
Plan (select one):

	 	o  (1)	 	shall be available for Plan loans in accordance with Section 5.8 of the
Base Plan Document.
	 
	 	o  (2)	 	shall not be available for Plan loans.

Note: To the extent the portion of a Participant’s Account from the Transferor Plan is available for
a loan under Base Plan Document Section 5.8, such amount shall be subject to the Spousal consent
requirements of Base Plan Document Section 5.8.2(C).

37

 

APPENDIX E: PPA ADDENDUM

Appendix to the SXC Health Solutions, Inc. 401(k) Plan

This amendment of the Plan is adopted to reflect certain provisions of the Pension Protection Act
of 2006 (“PPA”). This amendment is intended as good faith compliance with the requirements of PPA
and is to be construed in accordance with PPA and guidance issued thereunder. This amendment shall
supersede the provisions of the Plan to the extent those provisions are inconsistent with the
provisions of this amendment. The signature of the Primary Employer in this Adoption Agreement
shall apply to this Appendix E if the Primary Employer is restating its plan to comply with Revenue
Procedure 2005-16, 2005-10 I.R.B.

	I.	 	General Effective Date
	 
	 	 	The general effective date of this Appendix E shall be (select one):

	 	þ  A.	 	as of the first day of the first Plan Year beginning after December 31, 2006,
except as otherwise provided in the following sections of this Appendix E.
	 
	 	o  B.	 	as of the later of the first day of the first Plan Year beginning after December
31, 2006, except as otherwise provided in the following sections of this Appendix E or the
date the Primary Employer has adopted this Prototype Plan.

	II.	 	PPA Vesting

	 	A.	 	Applicability

	 	 	An amendment to change the vesting schedule for Profit Sharing Contributions under PPA (select
one):

	 	o  (1)	 	is required, effective for plan years beginning on or after January 1, 2007, with
respect to Profit Sharing Contributions as indicated in Section II B below.
	 
	 	þ  (2)	 	is not required.

	 	B.	 	Vesting Schedule for Profit Sharing Contributions

	 	 	For benefits accrued after the first day of the Plan Year that begins on or after January 1,
2007, the vesting schedule for Profit Sharing Contributions is amended by completing this
section II B. The provisions of Section 11.1.4 of the Plan shall apply.

	 	 	 	Note: The vesting percentage selected must be not less (with respect to any number of
years of Vesting Service) than the vesting percentage applicable under Article IX of
the Adoption Agreement (with respect to such number of years of Vesting Service).

	 	o  (1)	 	100% vesting immediately upon participation.
	 
	 	o  (2)	 	100% after            (not more than 3) years of Vesting Service.
	 
	 	o  (3)	 	Graded vesting schedule:

	 	 	 	          % immediately upon participation;
	 
	 	 	 	          % after 1 year of Vesting Service;
	 
	 	 	 	          % after 2 years of Vesting Service (not less than 20% unless 100% after 3 years);
	 
	 	 	 	          % after 3 years of Vesting Service (not less than 40%);
	 
	 	 	 	          % after 4 years of Vesting Service (not less than 60%);
	 
	 	 	 	          % after 5 years of Vesting Service (not less than 80%);
	 
	 	 	 	100% after 6 years of Vesting Service.

38

 

	 	C.	 	Old Money

	 	 	Participants who do not complete an Hour of Service in a Plan Year beginning after December 31,
2006 shall be subject to the vesting schedule in effect on the day they terminated. Active
Employees as of the first day of the first Plan Year beginning after December 31, 2006 may have
all benefits that accrued prior to the first day of the first Plan Year beginning after
December 31, 2006 (“old money”) to be subject to either the vesting schedule in effect prior to
the amendment, or the new vesting schedule selected above. For active employees (select one):

	 	o  (1)	 	old money shall be subject to the old vesting schedule.
	 
	 	o  (2)	 	old money shall be subject to the new vesting schedule.

	 	D.	 	Money Purchase Plan Merger or Amendment

	 	 	The vesting schedule for the portion of a Participant’s Account that is attributable to the
amount transferred from a money purchase pension plan (the “Transferor Plan”) to this Plan
shall (select one):

	 	o  (1)	 	apply and (select one):

	 	o  (a)	 	follow the Plan’s Profit Sharing vesting schedule, as specified in Article II B above.
	 
	 	o  (b)	 	remain under the vesting schedule in effect prior to the merger, as specified in Appendix D. I. A.

	 	þ  (2)	 	not apply.

	III.	 	QACA

	 	A.	 	Applicability

	 	o  (1)	 	effective           
(“Effective Date”) (insert a date that is: (1) no earlier than the date
that this amendment is dated below and (2) no earlier than the first day of the first Plan Year beginning after December 31, 2007).
	 
	 	þ  (2)	 	does not apply

	 	B.	 	QACA Automatic Deferrals

	 	(1)	 	Amount and Eligibility

	 	(a)	 	Qualified Percentage of Plan Compensation

	 	 	 	The form and amount of the default deferral percentage shall be: (select one and
insert an amount that is [or in the case of option (iii), select two amounts the
sum of which are] at least 3% and not more than 10%):
	 
	 	 	 	Note: The QACA raises the minimum during subsequent years as selected in Section III.C.(2) below.

	 	o  (i)	 	a Pre-Tax Contribution equal to           % of Plan Compensation.
	 
	 	o  (ii)	 	a Roth Contribution equal to           % of Plan Compensation.
	 
	 	o  (iii)	 	a Pre-Tax Contribution equal to           % of Plan Compensation and a Roth Contribution equal to           % of Plan Compensation.

	 	(b)	 	Eligibility

	 	 	 	All Eligibile Employees on the Effective Date who have never made an affirmative
election in the Pre-Tax features; Plus all future Eligible Employees (ineligible
Employees on the Effective Date who never participated in the past and who become
eligible in the future).

39

 

	 	(2)	 	The QACA Employer Contribution eligibility will be (select one):

	 	o  (a)	 	only Non-Highly Compensated Participants.
	 
	 	o  (b)	 	all Participants.

	 	(3)	 	Default Investment :

	 	C.	 	QACA Increase

	 	 	Note: Increases will occur on the first day of each Plan Year or each anniversary of the
Participant’s enrollment date (based upon the selection made in (a) or (b) under (C)(2) below).

	 	(1)	 	Type of Contribution to be increased shall be (select one):

	 	o  (a)	 	Pre-Tax Contributions only.
	 
	 	o  (b)	 	Roth Contributions only.

	 	(2)	 	Contribution Percentage shall be

	 	 	 	For purposes of this section, year is defined as (select one):

	 	o  (a)	 	the Plan Year (if selected, must enter a percentage for each year):

          % for the first year following automatic enrollment (must be at least 3%
but not more than 10%);

          % for the second year following automatic enrollment (must be at least 4%
but not more than 10%);

          % for the third year following automatic enrollment (must be at least 5%
but not more than 10%);

          % for the fourth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the fifth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the sixth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the seventh year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the eighth year and all subsequent years following automatic
enrollment (must be at least 6% but not                more than 10%).

	 
	 	o  (b)	 	the 12 month period ending on the anniversary of each Participant’s enrollment
date (if selected, enter a percentage for each year):

          % for the first year following automatic enrollment (must be at least 4%
but not more than 10%);

          % for the second year following automatic enrollment (must be at least 5%
but not more than 10%);

          % for the third year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the fourth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the fifth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the sixth year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the seventh year following automatic enrollment (must be at least 6%
but not more than 10%);

          % for the eighth year and all subsequent years following automatic
enrollment (must be at least 6% but not                more than 10%).

40

 

	 	D.	 	QACA Contributions

	 	o  (1)	 	QACA Matching Contributions

	 	o  (a)	 	Basic QACA Contribution

	 	 	 	The Employer will make QACA Matching Contributions to the Account of each Eligible
Participant in an amount equal to 100% of the first 1% and 50% of the next 2% through
6% of Plan Compensation deferred, and shall be accrued based upon (select one):

	 	o  (i)	 	each payroll period.
	 
	 	o  (ii)	 	the Plan Year.

	 	o  (b)	 	Enhanced QACA Contribution

	 	 	 	The Employer will make a QACA Matching Contribution to the Account of each Eligible
Participant in an amount equal to (must be at least as generous as the Basic QACA
Matching Contribution):
	 
	 	 	 	          % of the first           % of the Eligible Participant’s Plan Compensation contributed as Pre-Tax
Contributions or Roth Contributions, as applicable,           % of the next           % of the Eligible
Participant’s Plan Compensation contributed as Pre-Tax Contributions or Roth
Contributions, as
applicable, and           % of the next           % of the Eligible Participant’s Plan Compensation
contributed as Pre-Tax Contributions or Roth Contributions, as applicable, and shall be accrued
based upon (select one):

	 	o  (i)	 	each payroll period.
	 
	 	o  (ii)	 	the Plan Year.

	 	o  (2)	 	QACA Nonelective Contribution

	 	o  (a)	 	The Employer may make a QACA Nonelective Contribution to the Account
of each Eligible
Participant in an amount equal to           % (must be at least 3%) of Eligible
Participant’s Plan Compensation for the Plan Year.
	 
	 	o  (b)	 	The Employer will make a QACA Nonelective Contribution to the Account of each
Eligible Participant in an amount equal to           % (must be at least 3%) of Eligible
Participant’s Plan Compensation for the Plan Year.

	 	E.	 	Participation Requirements for QACA Contributions

	 	o  (1)	 	Same as Pre-Tax Contributions and/or Roth Contributions.
	 
	 	o  (2)	 	Attainment of age            (maximum 21) and completion of            Year of Service (not to exceed 1
year).

	 	 	 	If 1 Year of Service is selected, Hours of Service for eligibility purposes shall be based on
(select one):

	 	o  (a)	 	hourly records method.

	 	 	 	For the purpose of determining Hours of Service (select one):

	 	o  (i)	 	only actual hours for which an Employee is paid or entitled to payment shall be counted.
	 
	 	o  (ii)	 	an Employee shall be credited with 45 Hours of Service if under Section
1.51 of the Base
Plan Document such Employee would be credited with at least 1 Hour of
Service during the week.

	 	o  (b)	 	elapsed time method.

	 	 	 	Note: Entry Dates for QACA Contributions will be the same as Elective Deferrals.

41

 

	 	F.	 	QACA Contribution Vesting Schedule

	 	o  (1)	 	100% vesting immediately upon participation.
	 
	 	o  (2)	 	100% after 1 year of Vesting Service.
	 
	 	o  (3)	 	100% after 2 years of Vesting Service.
	 
	 	o  (4)	 	Graded vesting schedule:

             %          Immediately;
             %          after

1 year of Vesting Service;
       100%          after
2 years of Vesting Service.

	IV.	 	Unwind Withdrawals

	 	o A.	 	Apply

	 	 	Effective            (“Effective Date”)(insert a date that is not earlier than the first day of the Plan
Year beginning after December 31, 2007).

	 	þ B.	 	Do Not Apply

42exv10w1

Exhibit 10.1

UNITED STATES OF AMERICA

BEFORE THE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

WASHINGTON, D.C.

ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

DIVISION OF BANKING

SPRINGFIELD, ILLINOIS

	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 
	Written Agreement by and among
	 	 	 	 	 
	 
	 	 	 	 	 
	MIDWEST BANC HOLDINGS, INC.

	 	 	Docket Nos.
	 	09-190-WA/RB-HC
	Melrose Park, Illinois

	 	 	 	 	09-190-WA/RB-SM
	 
	 	 	 	 	 
	MIDWEST BANK AND TRUST COMPANY

	 	 	 	 	2009-DB-102
	Elmwood Park, Illinois
	 	 	 	 	 
	 
	 	 	 	 	 
	FEDERAL RESERVE BANK OF
	 	 	 	 	 
	  CHICAGO
	 	 	 	 	 
	Chicago, Illinois
	 	 	 	 	 
	 
	 	 	 	 	 
	and
	 	 	 	 	 
	 
	 	 	 	 	 
	ILLINOIS DEPARTMENT OF
	 	 	 	 	 
	  FINANCIAL AND PROFESSIONAL
	 	 	 	 	 
	  REGULATION
	 	 	 	 	 
	  DIVISION OF BANKING
	 	 	 	 	 
	Springfield, Illinois
	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 

     WHEREAS, in recognition of their common goal to maintain the financial soundness of
Midwest Banc Holdings, Inc. (“ MBHI”), Melrose Park,
Illinois, a registered bank holding
company, and its subsidiary bank, Midwest Bank and Trust Company, Elmwood Park, Illinois
(the “Bank”), a state chartered bank that is a member of the Federal Reserve System, MBHI,
the Bank, the Federal Reserve Bank of Chicago (the “Reserve Bank”), and the Illinois
Department of Financial and Professional Regulation, Division of Banking (the
“Department”) have mutually agreed to enter into this Written Agreement (the “Agreement”);
and

 

 

     WHEREAS, on
December 15, 2009, MBHI’s and the Bank’s boards of
directors, at duly constituted meetings, adopted resolutions authorizing and
directing Roberto R. Herencia to consent to this Agreement on behalf of MBHI and the Bank,
and consenting to compliance with each and every applicable provision
of this Agreement by
MBHI, the Bank, and their institution-affiliated parties, as defined in sections 3(u) and
8(b)(3) of the Federal Deposit Insurance Act, as amended (the “FDI Act”)(12 U.S.C. §§
1813(u) and 1818(b)(3)).

     NOW,
THEREFORE, MBHI, the Bank, the Reserve Bank, and the Department agree as
follows:

Board Oversight

     1. Within
60 days of this Agreement, the board of directors of the Bank shall submit
to the Reserve Bank and the Department a written plan to strengthen board oversight of the
management and operations of the Bank. The plan shall, at a minimum, address, consider,
and include:

          (a) The
actions that the board of directors will take to improve the Bank’s
condition and maintain effective control over, and supervision of, the Bank’s major
operations and activities, including but not limited to, credit risk
management, allowance
for loan and lease losses (“ALLL”), capital, earnings, and funds management; and

          (b) a description of the information and reports that will be regularly reviewed by the board of
directors in its oversight of the operations and management of the Bank, including
information on the Bank’s adversely classified assets, concentrations of credits,
ALLL, capital, earnings, and funds management.

2

 

Credit Risk Management

     2. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the
Department an acceptable written plan to strengthen credit risk management practices. The plan
shall, at a minimum, address, consider, and include:

          (a) Procedures to identify, limit, and
manage concentrations of credit that are consistent with the Interagency Guidance on Concentrations
in Commercial Real Estate Lending, Sound Risk Management Practices, dated December 12, 2006 (SR
07-1);

          (b) the establishment by the board of directors of the Bank of appropriate written risk
tolerance guidelines and risk limits, and controls to ensure adherence thereto;

          (c) procedures to
periodically review and revise risk exposure limits to address changes in market conditions

          (d)
strategies to reduce concentrations of credit; and

          (e) sufficient experienced staff to resolve
problem credits.

Asset Improvement

     3. (a) The Bank shall not, directly or indirectly, extend or renew any credit to or for the
benefit of any borrower, including any related interest of the borrower, who is obligated to the
Bank in any manner on any extension of credit or portion thereof that has been charged off by the
Bank or classified, in whole or in part, “loss” in the report of examination conducted jointly by
the Reserve Bank and the Department that commenced on May 18, 2009 (“Report of Examination”) or in
any subsequent report of examination, as long as such credit remains uncollected.

          (b) The Bank shall not, directly or indirectly, extend or renew any credit to or
for the benefit of any borrower, including any related interest of the borrower, whose extension

3

 

of credit
has been classified “doubtful” or “substandard” in the Report of Examination or in any
subsequent report of examination, without the prior approval of the Bank’s board of directors. The
board of directors shall document in writing the reasons for the extension of credit or renewal,
specifically certifying that: (i) the extension of credit is necessary to protect the Bank’s
interest in the ultimate collection of the credit already granted or (ii) the extension of credit is
in full compliance with the Bank’s written loan
policy, is adequately secured, and a thorough credit analysis has been performed indicating that
the extension or renewal is reasonable and justified, all necessary loan documentation has been
properly and accurately prepared and filed, the extension of credit will not impair the Bank’s
interest in obtaining repayment of the already outstanding credit, and the board of directors
reasonably believes that the extension of credit or renewal will be repaid according to its terms.
The written certification shall be made a part of the minutes of the board of directors meetings,
and a copy of the signed certification, together with the credit analysis and related information
that was used in the determination, shall be retained by the Bank in the borrower’s credit file for
subsequent supervisory review. For purposes of this Agreement, the term “related interest” is
defined as set forth in section 215.2(n) of Regulation O of the
Board of Governors of the Federal
Reserve System (the “Board of Governors”) (12 C.F.R. §215.2(n)) .

     4. (a) Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the
Department an acceptable written plan designed to improve the Bank’s position through repayment,
amortization, liquidation, additional collateral, or other means on each loan or other asset in
excess of $500,000, including other real estate owned (“OREO”), that (i) is past due as to
principal or interest more than 90 days as of the date of this Agreement; (ii) is on the Bank’s
problem loan list; or (iii) was adversely classified in the Report of Examination. In

4

 

developing the plan for each loan, the Bank shall, at a minimum, review, analyze, and document the
financial position of the borrower, including source of repayment, repayment ability, and
alternative repayment sources, as well as the value and accessibility of any pledged or assigned
collateral, and any possible actions to improve the Bank’s collateral position.

          (b) Within
30 days of the date that any additional loan or other asset in excess of
$500,000, including OREO, that (i) becomes past due as to principal or interest for more
than 90 days; (ii) is on the Bank’s problem loan list; or (iii) is
adversely classified in any subsequent report of examination of the Bank, the Bank
shall submit to the Reserve Bank and the Department an acceptable written plan to improve
the Bank’s position on such loan or asset.

          (c) Within 30 days after the end of each
calendar quarter thereafter, the Bank shall submit a written progress report to the Reserve
Bank and the Department to update each asset improvement plan, which shall include, at a
minimum, the carrying value of the loan or other asset and changes in the nature and value
of supporting collateral, along with a copy of the Bank’s current problem loan list, a list
of all loan renewals and extensions without full collection of interest in the last quarter,
and past due/non-accrual report. The board of directors shall review the progress reports
before submission to the Reserve Bank and the Department and shall document the review in
the minutes of the board of directors’ meetings.

Allowance for Loan and Lease Losses

     5. (a) Within
10 days of this Agreement, the Bank shall eliminate from its books, by charge-off
or collection, all assets or portions of assets classified “loss” in the Report of Examination that
have not been previously collected in full or charged off. Thereafter the Bank shall, within 30
days from the receipt of any federal or state report of examination, charge

5

 

off all
assets classified “loss” unless otherwise approved in writing by the Reserve Bank and the
Department.

          (b) Within 60 days of this Agreement, the Bank shall review and revise its
allowance for loan and lease losses (“ALLL”) methodology consistent with relevant
supervisory guidance, including the Interagency Policy Statements on the Allowance
for Loan and Lease Losses, dated July 2, 2001 (SR 01-17 (Sup)) and December 13,
2006 (SR
06-17), and the findings and recommendations regarding the ALLL set forth in
the Report of Examination, and submit a description of the revised methodology to
the Reserve Bank and the Department. The revised ALLL methodology shall be
designed to maintain an adequate ALLL and shall address, consider, and include, at
a minimum, the reliability of the Bank’s loan grading system, the volume of
criticized loans, concentrations of credit, the current level of past due and
nonperforming loans, past loan loss experience, evaluation of probable losses in
the Bank’s loan portfolio, including adversely classified loans, and the impact of
market conditions on loan and collateral valuations and collectability.

          (c) Within 90 days of this Agreement, the Bank shall submit to the Reserve
Bank and the Department an acceptable written program for the maintenance of an
adequate ALLL. The program shall include policies and procedures to ensure
adherence to the revised ALLL methodology and provide for periodic reviews and
updates to the ALLL methodology, as appropriate. The program shall also provide
for a review of the ALLL by the board of directors on at least a quarterly calendar
basis. Any deficiency found in the ALLL shall be remedied in the quarter it is
discovered, prior to the filing of the Consolidated Reports of Condition and
Income, by additional provisions. The board of directors shall maintain written
documentation of its review, including the factors considered and conclusions
reached by the Bank in determining the

6

 

adequacy of the ALLL. During the term of this Agreement, the Bank shall submit to the Reserve
Bank and the Department, within 30 days after the end of each calendar quarter, a written report
regarding the board of directors’ quarterly review of the ALLL and a description of any changes to
the methodology used in determining the amount of ALLL for that quarter.

Earnings Plan and Budget

     6. (a) Within 90 days of this Agreement, the Bank shall submit to the Reserve Bank and
the Department a written business plan for 2010 to improve the Bank’s earnings and overall
condition. The plan, at a minimum, shall provide for or describe:

(i) a realistic and
comprehensive budget for calendar year 2010, including income statement and balance sheet
projections; and

(ii) a description of the operating assumptions that form the basis for,
and adequately support, major projected income, expense, and balance sheet components.

          (b) A business plan and budget for each calendar year subsequent to 2010 shall be submitted to
the Reserve Bank and the Department at least 30 days prior to the beginning of that calendar year.

Capital Plan

     7. Within 60 days of this Agreement, MBHI and the Bank shall submit to the Reserve Bank and
the Department an acceptable joint written plan to maintain
sufficient capital at MBHI on a
consolidated basis, and the Bank as a separate legal entity on a stand-alone basis. The plan
shall, at a minimum, address, consider, and include:

          (a) MBHI’s current and future capital
requirements, including compliance with the Capital Adequacy Guidelines for Bank Holding Companies:
Risk-Based Measure and

7

 

Tier 1 Leverage Measure, Appendices A and D of Regulation Y of the Board of Governors (12
C.F.R. Part 225, App. A and D);

          (b) the Bank’s current and future capital requirements, including
compliance with the Capital Adequacy Guidelines for State Member Banks: Risk-Based Measure and
Tier 1 Leverage Measure, Appendices A and B of Regulation H of the Board of Governors (12 C.F.R.
Part 208, App. A and B);

          (c) the adequacy of the Bank’s capital, taking into account the volume of
classified assets, concentrations of credit, the adequacy of the
ALLL, current and projected asset
growth, projected retained earnings, and anticipated and contingency funding needs;

          (d) the
source and timing of additional funds to fulfill MBHI ‘s and the Bank’s future
capital requirements; and

          (e) the
requirements of section 225.4(a) of Regulation Y of the Board of
Governors (12 C.F.R. § 225.4(a)) that MBHI serve as a source of strength to the Bank.

     8. MBHI
and the Bank shall notify the Reserve Bank and the Department, in writing, no more
than 30 days after the end of any calendar quarter in which any of MBHI’s consolidated capital
ratios or the Bank’s capital ratios (total risk-based, Tier 1, or leverage) fall below the approved
capital plan’s minimum ratios. Together with the notification, the MBHI and the Bank shall submit
an acceptable written plan that details the steps MBHI or the Bank, as appropriate, will take to
increase MBHI’s or the Bank’s capital ratios to or above the approved capital plan’s minimums.

8

 

Liquidity and Funds Management

     9. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the
Department an acceptable written plan designed to enhance management of the Bank’s liquidity
position. The plan shall, at a minimum, address, consider, and include:

          (a) Measures to enhance
the monitoring and reporting of the Bank’s liquidity position; and

          (b) periodic review of risk
limits to ensure that they remain commensurate with the Bank’s liquidity risk profile.

     10. Within 30 days of this Agreement, the Bank shall submit to the Reserve Bank and the
Department a revised written contingency funding plan that, at a minimum, identifies available
sources of liquidity and includes enhanced adverse scenario planning.

Interest Rate Risk Management

     11. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and
the Department an acceptable written plan to improve interest rate risk management
practices that are appropriate for the size and complexity of the Bank. The plan shall, at a
minimum, address the following:

          (a) Enhanced measurement and reporting of interest rate risk that,
at a minimum, considers and includes:

               (i) Wholesale products containing embedded options; and

               (ii) loans with contractual floors;

          (b) Procedures and controls, including, but not limited to,
periodic stress testing of critical modeling assumptions, to ensure that the inputs and assumptions
used to model

9

 

and control the vulnerability of the Bank’s net interest income due to changes in interest rates
are accurate and reflect the Bank’s current balance sheet structure and market conditions; and

          (c) provide for a periodic independent review and assessment of the Bank’s interest rate risk model and
processes, including but not limited to, the accuracy and completeness of the data inputs into the
Bank’s risk measurement system, and compliance with the Bank’s policies.

Dividends
and Distributions

     12. (a) The Bank shall not declare or pay any dividends without the prior written approval of
the Reserve Bank, the Director of the Division of Banking Supervision and Regulation of the Board
of Governors (the “Director”), and the Department.

          (b) MBHI
shall not declare or pay any dividends without the prior written
approval of the Reserve Bank and the Director.

          (c) MBHI
shall not take any other form of payment representing a reduction
in capital from the Bank without the prior written approval of the Reserve Bank.

          (d) MBHI and its nonbank subsidiary shall not make any distributions of interest, principal, or
other sums on subordinated debentures or trust preferred securities without the prior written
approval of the Reserve Bank and the Director.

          (e) All requests for prior approval shall be received at least 30 days prior to the proposed
dividend declaration date, proposed distribution on subordinated debentures, and required
notice of deferral on trust preferred securities. All requests shall contain, at a minimum,
current and projected information, as appropriate, on the parent’s capital, earnings, and cash
flow; the Bank’s capital, asset quality, earnings and ALLL needs; and identification of the sources
of funds for the proposed payment or distribution. For requests to declare or pay

10

 

dividends,
MBHI and the Bank, as appropriate, must also demonstrate that the requested declaration
or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment
of Cash Dividends by State Member Banks and Bank Holding Companies, dated November 14, 1985
(Federal Reserve Regulatory Service, 4-877 at page 4-323).

Debt and Stock Redemption

     13. (a) MBHI and its nonbank subsidiary, shall not, directly or indirectly, incur, increase,
or guarantee any debt without the prior written approval of the Reserve Bank. All requests for
prior written approval shall contain, but not be limited to, a statement regarding the purpose of
the debt, the terms of the debt, and the planned source(s) for debt repayment, and an analysis of
the cash flow resources available to meet such debt repayment.

          (b) MBHI
shall not, directly or indirectly, purchase or redeem any shares of
its stock without the prior written approval of the Reserve Bank.

Compliance with Laws and Regulations

     14. (a) In appointing any new director or senior executive officer, or changing the
responsibilities of any senior executive officer so that the officer would assume a different
senior executive officer position, MBHI and the Bank shall comply with the notice provisions of
section 32 of the FDI Act (12 U.S.C. § 1831i) and Subpart H of Regulation Y of the Board of
Governors (12 C.F.R. §§ 225.71 et seq.) and also provide notice to the Department. MBHI and the
Bank shall not appoint any individual to MBHI’s or the Bank’s board of directors or employ or
change the responsibilities of any
individual as a senior executive officer if the Reserve Bank or the Department notifies MBHI or the
Bank of disapproval within the time limits prescribed by Subpart H of Regulation Y.

11

 

          (b) MBHI and the Bank shall comply with the restrictions on indemnification
and severance payments of section 18(k) of the FDI Act (12 U.S.C. § 1828(k)) and
Part 359 of the Federal Deposit Insurance Corporation’s regulations (12 C.F.R. Part
359).

Compliance with Agreement

     15. (a) Within
10 days of this Agreement, MBHI and the Bank’s boards of directors shall
appoint a joint compliance committee (the “Compliance Committee”) to monitor and coordinate MBHI’s
and the Bank’s compliance with the provisions of this Agreement. The Compliance Committee shall
include a majority of outside directors who are not executive officers or principal shareholders of
MBHI and the Bank, as defined in sections 215.2(e)(1) and 215.2(m)(1) of Regulation O of the Board
of Governors (12 C.F.R. §§ 215.2(e)(1) and 215.2(m)(1)). At a minimum, the Compliance Committee
shall meet at least monthly, keep detailed minutes of each meeting, and report its findings to the
boards of directors of MBHI and the Bank.

Progress Reports

     16. Within 30 days after the end of each calendar quarter following the date of this
Agreement, the Bank shall submit to the Reserve Bank and the Department written progress reports
detailing the form and manner of all actions taken to secure compliance with the provisions of
this Agreement and the results thereof.

Approval
and Implementation of Plans and Program

     17. (a) MBHI
and the Bank shall submit written plans and a program that are acceptable to the
Reserve Bank and the Department within the applicable time periods set forth in
paragraphs 2, 4(a), 4(b), 5(c), 7, 8, 9, 10, and 11 of this Agreement.

12

 

          (b) Within 10 days of approval by the Reserve Bank and the Department, MBHI
and the Bank shall adopt the approved plans and program. Upon
adoption, MBHI and
the Bank shall promptly implement the approved plans and program, and
thereafter fully
comply with them.

          (c) During
the term of this Agreement, the approved plans and program shall not
be amended or rescinded without the prior written approval of the Reserve Bank and
the Department.

Communications

     18. All
communications regarding this Agreement shall be sent to:

	 	(a)	 	Mr. Charles F. Luse 
 Assistant Vice President 
 Federal Reserve Bank of Chicago

230 South LaSalle Street
 Chicago, Illinois 60604
	 
	 	(b)	 	Mr. Scott D. Clarke

Assistant Director

Department of Financial and Professional Regulation

Department of Banking 
 122 South Michigan Ave 
 Chicago, Illinois
60603
	 
	 	(c)	 	Mr. Roberto R. Herencia 
 President & CEO

Midwest Banc Holdings, Inc. 
 Midwest Bank and
Trust Company 
501 W. North Avenue 
 Melrose Park,
Illinois 60160

13

 

Miscellaneous

     19. Notwithstanding any provision of this Agreement, the Reserve Bank and the Department may,
in their sole discretion, grant written extensions of time to MBHI and the Bank to comply with any
provision of this Agreement.

     20. The
provisions of this Agreement shall be binding upon MBHI, the Bank, and their institution-affiliated
parties, in their capacities as such, and their successors and assigns.

     21. Each
provision of this Agreement shall remain effective and enforceable until stayed,
modified, terminated, or suspended in writing by the Reserve Bank and the Department.

     22. The
provisions of this Agreement shall not bar, estop, or otherwise prevent the Board of
Governors, the Reserve Bank, the Department, or any other federal or state agency from taking
anyother action affecting MBHI, the Bank, or any of their current or former
institution-affiliated parties and their successors and assigns.

14

 

     23. Pursuant
to Section 50 of the FDI Act (12 U.S.C. § 1831aa), this Agreement is enforceable
by the Board of Governors under Section 8 of the FDI Act (12 U.S.C. § 1818). In addition, this
Agreement is enforceable by the Department under Section 48 of the Illinois Banking Act.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the 18th day of December, 2009.

	 	 	 	 	 	 	 	 	 	 	 
	MIDWEST BANC HOLDINGS, INC.	 	 	 	FEDERAL RESERVE BANK OF CHICAGO	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Roberto R. Herencia	 	 	 	By:	 	/s/ Mark H. Kawa	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Roberto R. Herencia	 	 	 	 	 	Mark H. Kawa	 	 
	 

	 	President & CEO	 	 	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MIDWEST BANK AND TRUST COMPANY	 	 	 	ILLINOIS DEPARTMENT OF
FINANCIAL AND PROFESSIONAL REGULATION	 	 
	 	 	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Roberto R. Herencia	 	 	 	By:	 	/s/ Jorge A. Solis	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Roberto R. Herencia	 	 	 	 	 	Jorge A. Solis	 	 
	 

	 	President & CEO	 	 	 	 	 	Director	 	 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]